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TEAMSTAFF REPORTS FIRST QUARTER FISCAL 2012 RESULTS

TEAMSTAFF REPORTS FIRST QUARTER FISCAL 2012 RESULTS

Revenue and gross profit reach two year highs of $11.5 and $1.6 million, respectively

Adjusted EBITDA shows significant improvement despite new contract startup costs

Management to conduct webcast conference call February 15, 2012 at 11am ET

TeamStaff, Inc. (Nasdaq: TSTF), a leading healthcare and logistics services provider to the Federal Government, including the Departments of Defense and Veterans Affairs, announced today its financial results for the fiscal quarter ended December 31, 2011.

 

Table 1 - Financial Highlights

Three Months Ended

($ in thousands, except per share amounts)

December 31, 2011

December 31, 2010

Operating revenues

$ 11,495

$ 10,575

Gross Profit

$ 1,567

$ 1,318

Gross Profit Percentage

13.6%

12.5%

Loss from operations

$ (210)

$ (275)

Loss from continuing operations

$ (389)

$ (337)

Net loss per share

$ (0.06)

$ (0.07)

EBITDA adjusted for other non-cash charges(1)

$ (16)

$ (179)

First quarter gross profit increased 19 percent to nearly $1.6 million from approximately $1.3 million for the same period in the prior year and increased as a percentage of revenue from 12.5 percent for the fiscal 2011 period to 13.6 percent for the fiscal 2012 quarter. The improvement over the three month period in the prior year reflects enhancements to project management and an improved mix of higher margin work consistent with the Company's reported growth strategy.

Revenues for the three months ended December 31, 2011 and 2010 were $11.5 million and $10.6 million, respectively, which represents an increase of $0.9 million or 8.7% despite federal government delays in awarding and initiating work under major contracts. The increase in revenues is due primarily to new business awards.

General and Administrative ("G&A") expenses for the three months ended December 31, 2011 and 2010 were $1.8 million and $1.6 million, respectively, which represent an increase of $0.2 million, or 12.2%. The increase is attributed largely to costs and investments associated with startup of work under new contracts in three different states during the quarter, issuance of non-cash stock grants, and expanded new business development activity.

Loss from continuing operations and net loss for the three months ended December 31, 2011 was $0.4 million, or ($0.06) per basic and diluted share, as compared to loss from continuing operations and net loss of $0.3 million, or ($0.07) per basic and diluted share for the three months ended December 31, 2010.

Earnings (Loss) Before Interest, Tax, Depreciation and Amortization ("EBITDA") adjusted for other non-cash charges ("Adjusted EBITDA"(1)) for the three months ended December 31, 2011 was $(16,000) as compared to $(179,000) for the three months ended December 31, 2010, which shows an improvement of $163,000.

"We've had a solid operational and financial start to fiscal year 2012," said Zach Parker, President and CEO. "We phased-in nearly 250 new employees and implemented some technology upgrades as we remain committed to providing best value to our customers."

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