Slide 1: Investment Community Presentation
Investment Community Presentation June 2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" as defined by the Federal Securities Laws. TeamStaff's actual results could differ materially from those described in such forward-looking statements as a result of certain risk factors, including but not limited to:
Slide 3: Overview of TeamStaff
Overview Of TeamStaff Top 3 in Segment $42 Million LTM Revenue HealthCare Staffing Industry Allied Health Travel Segment $5 Million Revenue 34% EBITDA in Fiscal ‘03 Payroll Industry Construction Segment TeamStaff is a 35-year-old leader in two attractive market segments: Healthcare staffing and payr
Slide 4: Our Turnaround Strategy/Agenda
Our Turnaround Strategy/Agenda New top management team Divested lower-margin PEO operations Focusing on higher-margin healthcare staffing Expanding sales force and relationship selling Cultivating large hospital relationships – VIP Program as differentiator Expanding allied and travel nursing busine
Slide 5: The Management Team
The Management Team T. Kent Smith, President & CEO Former SVP, Norrell Corporation ($1.4 billion public staffing company; 350 branches and 450 client sites) Served as VP Finance and Strategic Planning; VP, CIO, and SVP, Service Operations Took Norrell public in 1994, along with CEO and EVP; resulted
Slide 6: The Management Team
The Management Team Rick Filippelli, CFO 26 years of financial accounting experience Former CFO of Rediff, A publicly-traded small cap information technology company Former CFO of $2 billion insurance subsidiary of GE Capital “Big 4” public accounting experience Certified Public Accountant Tim Niema
Slide 7: Sale of PEO Benefits to TeamStaff
Sale Of PEO Benefits To TeamStaff Provided $9.25MM of cash Potential return of $5 MM workers’ compensation premiums as program runs-off, $1MM received to date Freed up receivables and cash used as collateral to support workers’ compensation program Reduces earnings volatility associated with PEO Ena
Slide 8: Healthcare Staffing Industry Overview
Healthcare Staffing Industry Overview $11.4 billion revenues in 2003 Grew 15% annually prior to 2003 High-growth industry due to aging population, shortages of skilled staff largest firms account for less than one third of sector’s revenue base
Slide 9: Industry Dynamics Are Very Attractive
Industry Dynamics Are Very Attractive U.S. population over 65 is expected to grow over 14% by 2010, increasing need for healthcare services Legislative mandates on overtime and staffing ratios increase shortage Nursing Supply/Demand Imbalance
Slide 10: TeamStaff Rx Participates in Two High-Margin Segments
TeamStaff Rx Participates In Two High-Margin Healthcare Staffing Industry Segments of an $11.4 Billion Industry Med-Financial 5.6% Locum Tenens (Physicians) 8.3% Travel Nurses 13.9% Source: Staffing Industry Report Per Diem Nurses 59.7% Allied (Travel & Per Diem) 12.5% TSTF-20% TSTF-80%
Slide 11: TeamStaff Rx Is the Third Largest Allied Healthcare Provider
TeamStaff Rx Is the Third Largest Allied Healthcare Provider Nurse Allied Medical Staffing Network (MRN) InteliStaff/StarMed Healthcare (Merging) Favorite Nurses Nursefinders Cross Country (CCRN) AMN HealthCare (AHS) Intelistaff/StarMed (Merging) US Nursing CompHealth Club Staffing TeamStaff Rx (TST
Slide 12: Three Major Healthcare Staffing Industry Trends
There Are Three Major Healthcare Staffing Industry Trends, Repeating The 1990s Clerical/Light Industrial Staffing Experience Roll-up potential early Acquisition possibilities Alliances struck Larger providers benefit and survive Purchase additional service offerings to reach critical mass for sellin
Slide 13: TeamStaff Rx Growth Initiatives
TeamStaff Rx Growth Initiatives Strike alliances (e.g., PPR Travel and Nursefinders) and pursue complementary acquisitions Expand sales force and relationship selling Emphasize VIP to capitalize on vendor consolidation trend
Slide 14: In Hospitals, The 'Rules of the Game' are Changing
In Hospitals, The ‘Rules of the Game’ are Changing For Healthcare Staffing Providers . . . Government Hospitals HCSP Cancer Centers Hospital Derivatives Imaging Centers Hospitals HCSP ……… HCSP HCSP Rx HCSP
Slide 15: TeamStaff Rx Must Participate As Intermediary/Vendor Manager
And TeamStaff Rx Must Participate As An Intermediary/Vendor Manager . . . Cancer Centers Hospital Derivatives Imaging Centers Hospitals HCSP HCSP HCSP GPO’s Vendor Neutrals State Association TeamStaff Rx Government Hospitals Hospital- owned HCSP’s . . . as well as a subcontractor for Allied
Slide 16: Beyond Compare: TeamStaff Rx Trade Advertising Campaign
“Beyond Compare” : TeamStaff Rx Trade Advertising Campaign Cost-Containment Model Saves 5% to 20% Optimized Vendor Management Technologies Automated ‘One-Click’ Reporting Onsite & ‘Virtual’ Account Managers Streamlined Procedures & More
Slide 17: Construction industry niche market
Construction industry niche market with client retention in excess of 90% FY’03 revenues $5.0 million with 34% EBITDA margin Expanding into new geographic territories Services are now available through a user- friendly, online customer interface
Slide 18: Quarterly Revenues/EBITDA, Continuing Operations
*Excludes former CEO and CFO severance and supplemental retirement plan obligations New Management Team, Investment in Sales and Marketing, Introduction of “VIP” Coupled With an Improving Economy Will Drive TeamStaff’s Return to Profitability Note: a presentation of the most directly comparable fina
Slide 19: Revenues and EBITDA, Fiscal Years 2001-2003
Revenues ($MM) $69.0 $79.8 $62.8 Payroll Rx ‘01 ‘02 ‘03 EBITDA ($MM) $5.6 $4.8 $0.6 Rx Payroll Corporate* ‘01 ‘02 ‘03 Continuing Operations: Fiscal Years ’01-’03 *Excludes former CEO and CFO severance and supplemental retirement plan obligations Note: a presentation of the most directly comparable f
Slide 20: Balance Sheets
Balance Sheets 1.2 1.9 Restricted Cash 9/30/03 Total Current Assets $60.6 $42.6 Total Liabilities and Stockholders’ Equity 35.1 32.3 Stockholders’ Equity 25.5 10.3 Total Liabilities 16.4 2.5 Liabilities Held for Sale 1.8 1.4 Other Liabilities $7.3 $6.4 Current Liabilities 4.9 3.2 Accounts Receivable
Slide 21: Summary of Strategic Objectives and Why To Invest In TeamStaff
Long-term growth of Healthcare Staffing Economy and job creation to return Alliance potential with Nursing firms Sales force expansion and relationship selling Vendor consolidation benefits: Subcontractor & VIP Sales Liquidity available for acquisitions to strengthen #3 position and expand service o