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Cross Country Healthcare Announces Third Quarter 2024 Financial Results

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Cross Country Healthcare (CCRN) reported Q3 2024 financial results with revenue of $315.1 million, down 29% year-over-year and 7% sequentially. The company posted net income of $2.6 million with diluted EPS of $0.08. Gross profit margin was 20.4%, declining 160 basis points year-over-year.

Notable highlights include revenue growth in Physician Staffing and Homecare Staffing segments, a three-year contract renewal with their largest managed service program, and a strong balance sheet with $64 million cash and no debt. The company repurchased over 800,000 shares for $11.9 million during the quarter.

Cross Country Healthcare (CCRN) ha riportato i risultati finanziari del terzo trimestre del 2024 con un fatturato di 315,1 milioni di dollari, in calo del 29% rispetto all'anno precedente e del 7% rispetto al trimestre precedente. L'azienda ha registrato un utile netto di 2,6 milioni di dollari con un utile per azione diluito di 0,08 dollari. Il margine di profitto lordo è stato del 20,4%, in diminuzione di 160 punti base rispetto all'anno scorso.

Tra i punti salienti ci sono la crescita dei ricavi nei segmenti di Staffing per Medici e Staffing per Assistenza Domiciliare, il rinnovo di un contratto triennale con il loro più grande programma di servizi gestiti e un solido bilancio con 64 milioni di dollari in cassa e senza debiti. L'azienda ha riacquistato oltre 800.000 azioni per 11,9 milioni di dollari durante il trimestre.

Cross Country Healthcare (CCRN) informó los resultados financieros del tercer trimestre de 2024, con ingresos de 315.1 millones de dólares, una caída del 29% en comparación interanual y del 7% secuencialmente. La compañía reportó un ingreso neto de 2.6 millones de dólares con un EPS diluido de 0.08 dólares. El margen de utilidad bruta fue del 20.4%, disminuyendo 160 puntos básicos en comparación con el año anterior.

Los aspectos destacados incluyen el crecimiento de ingresos en los segmentos de Staffing de Médicos y Staffing de Cuidado a Domicilio, la renovación de un contrato de tres años con su programa de servicio gestionado más grande y un balance sólido con 64 millones de dólares en efectivo y sin deudas. La compañía recompró más de 800,000 acciones por 11.9 millones de dólares durante el trimestre.

크로스 카운트리 헬스케어 (CCRN)는 2024년 3분기 재무 결과를 보고하며 수익이 3억 1,510만 달러로 작년 대비 29% 감소하고 지난 분기 대비 7% 감소했다고 발표했습니다. 회사는 260만 달러의 순이익과 희석 주당 순이익(EPS) 0.08 달러를 기록했습니다. 총 이익률은 20.4%로 작년보다 160 베이시스 포인트 감소했습니다.

주요 하이라이트로는 의사 인력 배치 및 가정 간호 인력 배치 부문에서의 수익 성장, 가장 큰 관리 서비스 프로그램과의 3년 계약 갱신, 6400만 달러의 현금 보유 및 무부채의 건전한 대차대조표가 있습니다. 이 회사는 분기 동안 1190만 달러로 800,000주 이상의 자사주 매입을 진행했습니다.

Cross Country Healthcare (CCRN) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus de 315,1 millions de dollars, en baisse de 29 % par rapport à l'année précédente et de 7 % par rapport au trimestre précédent. La société a affiché un bénéfice net de 2,6 millions de dollars avec un BPA dilué de 0,08 dollar. La marge brute s'élevait à 20,4 %, en baisse de 160 points de base par rapport à l'année précédente.

Parmi les faits marquants, on note une croissance des revenus dans les segments de recrutement de médecins et de soins à domicile, le renouvellement d'un contrat de trois ans avec leur plus grand programme de services gérés et un bilan solide avec 64 millions de dollars en liquidités et sans dettes. L'entreprise a racheté plus de 800 000 actions pour 11,9 millions de dollars au cours du trimestre.

Cross Country Healthcare (CCRN) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 315,1 Millionen Dollar, was einem Rückgang von 29% im Vergleich zum Vorjahr und 7% im Vergleich zum vorherigen Quartal entspricht. Das Unternehmen erzielte einen Nettogewinn von 2,6 Millionen Dollar bei einem verwässerten Gewinn pro Aktie von 0,08 Dollar. Die Bruttomarge betrug 20,4%, was einem Rückgang um 160 Basispunkte im Vergleich zum Vorjahr entspricht.

Zu den bemerkenswerten Highlights gehören das Umsatzwachstum in den Bereichen Arztsourcing und häusliche Pflege, die Verlängerung eines Drei-Jahres-Vertrags mit ihrem größten Managed Service-Programm sowie eine solide Bilanz mit 64 Millionen Dollar in bar und ohne Schulden. Das Unternehmen hat im Laufe des Quartals über 800.000 Aktien für 11,9 Millionen Dollar zurückgekauft.

Positive
  • Physician Staffing revenue increased 10% year-over-year to $50.3 million
  • Strong balance sheet with $64 million cash and zero debt
  • Secured three-year contract renewal with largest managed service program
  • 4-day improvement in days' sales outstanding year-over-year
  • Operating cash flow of $95.9 million for the first nine months
Negative
  • Revenue declined 29% year-over-year to $315.1 million
  • Gross profit margin decreased 160 basis points to 20.4%
  • Net income dropped 80% year-over-year
  • Adjusted EBITDA margin declined 290 basis points to 3.3%
  • Q4 2024 guidance projects continued revenue decline of 25-28% year-over-year

Insights

Cross Country Healthcare's Q3 2024 results reveal significant challenges, with revenue declining 29% year-over-year to $315.1 million. The company's profitability metrics show considerable pressure, with net income dropping 80% to $2.6 million and adjusted EBITDA margin contracting to 3.3%.

Key concerns include:

  • Core nurse staffing segment revenue down 33% YoY
  • Gross profit margin compression of 160 basis points to 20.4%
  • Significant decline in average revenue per FTE to $373 from $434
The bright spots are physician staffing growth (10% YoY) and a strong balance sheet with $64 million cash and zero debt. Q4 guidance suggests continued pressure with projected revenue decline of 25-28% YoY.

The healthcare staffing market's normalization is evident in CCRN's results. The decline in revenue per FTE and margins reflects the industry's transition from pandemic-era peaks. However, several positive indicators emerge:

  • Bill rate stabilization signals market equilibrium
  • Rising demand across service lines
  • Strategic contract renewal with largest MSP client
  • Growth in diversified segments (Physician, Homecare, Education)
The company's active share repurchase program ($11.9 million in Q3) and strong cash position suggest management's confidence in long-term prospects despite near-term headwinds.

BOCA RATON, Fla.--(BUSINESS WIRE)-- Cross Country Healthcare, Inc. (the Company) (Nasdaq: CCRN) today announced financial results for its third quarter ended September 30, 2024.

SELECTED FINANCIAL INFORMATION:

 

 

 

Variance

Variance

 

 

 

Q3 2024 vs

Q3 2024 vs

Dollars are in thousands, except per share amounts

Q3 2024

Q3 2023

Q2 2024

Revenue

$

315,119

 

 

(29

)%

 

(7

)%

Gross profit margin*

 

20.4

%

 

(160

)bps

 

(40

)bps

Net income attributable to common stockholders

$

2,555

 

 

(80

)%

 

116

%

Diluted EPS

$

0.08

 

$

(0.28

)

$

0.55

 

Adjusted EBITDA*

$

10,339

 

 

(62

)%

 

(27

)%

Adjusted EBITDA margin*

 

3.3

%

 

(290

)bps

 

(90

)bps

Adjusted EPS*

$

0.12

 

$

(0.27

)

$

0.02

 

Cash flows provided by operations

$

7,470

 

 

(89

)%

 

(91

)%

* Represents amounts that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are referred to as non-GAAP measures. Please refer to the accompanying discussion below of how these non-GAAP financial measures are calculated and used under “Non-GAAP Financial Measures” and the tables reconciling these measures to the closest GAAP measure.

Third Quarter Business Highlights

  • Revenue, Adjusted EBITDA, and Adjusted EPS all within guidance ranges
  • Physician Staffing and Homecare Staffing experienced sequential and year-over-year revenue growth
  • Secured a three-year contract renewal with our largest managed service program
  • Continued strong balance sheet with $64 million of cash on hand and no debt as of September 30, 2024
  • Repurchased over 800,000 shares of common stock for $11.9 million

“Our third quarter results reflect the continued stabilization across our core business as well as the ongoing momentum in our Homecare, Physician, and Education Staffing businesses. Though margins remain under pressure, I am encouraged to see demand for our services continue to rise amidst bill rate stability,” said John A. Martins, President and Chief Executive Officer of Cross Country Healthcare. He continued, “We find ourselves well positioned to capitalize on the market as it normalizes, by leveraging our strong balance sheet to make strategic investments, that we believe will deliver long-term profitability."

Third quarter consolidated revenue was $315.1 million, a decrease of 29% year-over-year and 7% sequentially. Consolidated gross profit margin was 20.4%, down 160 basis points year-over-year and 40 basis points sequentially. Net income attributable to common stockholders was $2.6 million, as compared to $12.8 million in the prior year and a net loss of $16.1 million in the prior quarter. Diluted income per share (EPS) was $0.08, as compared to $0.36 in the prior year and a net loss of $0.47 in the prior quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $10.3 million, or 3.3% of revenue, as compared with $27.2 million, or 6.2% of revenue, in the prior year, and $14.2 million, or 4.2% of revenue, in the prior quarter. Adjusted EPS was $0.12, as compared to $0.39 in the prior year and $0.10 in the prior quarter.

For the nine months ended September 30, 2024, consolidated revenue was $1,034.1 million, a decrease of 36% year-over-year. Consolidated gross profit margin was 20.5%, down 190 basis points year-over-year. Net loss attributable to common stockholders was $10.8 million, or $0.32 per diluted share, as compared to net income of $63.6 million, or $1.78 per diluted share, in the prior year. Adjusted EBITDA was $39.8 million, or 3.8% of revenue, as compared to $123.8 million, or 7.7% of revenue, in the prior year. Adjusted EPS was $0.41, as compared to $1.92 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue was $264.9 million, a decrease of 33% year-over-year and 9% sequentially. Contribution income was $19.3 million, a decrease from $39.2 million year-over-year and an increase from $5.8 million sequentially. The sequential increase was primarily the result of $19.4 million of credit loss expense driven by a bankruptcy filing by a single large customer recognized during the second quarter of 2024. Average field contract personnel on a full-time equivalent (FTE) basis was 7,660, as compared with 9,849 in the prior year and 8,415 in the prior quarter. Revenue per FTE per day was $373, as compared to $434 in the prior year and $377 in the prior quarter.

Physician Staffing

Revenue was $50.3 million, an increase of 10% year-over-year and 4% sequentially. Contribution income was $4.6 million, an increase from $2.6 million year-over-year and $4.0 million sequentially. Total days filled were 24,424, as compared with 23,004 in the prior year and 24,252 in the prior quarter. Revenue per day filled was $2,058, as compared with $1,986 in the prior year and $1,992 in the prior quarter.

Cash Flow and Balance Sheet Highlights

Net cash provided by operating activities for the three months ended September 30, 2024 was $7.5 million, as compared to $70.3 million for the three months ended September 30, 2023 and $82.4 million for the three months ended June 30, 2024. We experienced a 4 day year-over-year improvement in days' sales outstanding. For the nine months ended September 30, 2024, net cash provided by operating activities was $95.9 million, as compared to $236.4 million in the prior year.

During the third quarter, the Company repurchased over 800,000 shares of the Company’s common stock for an aggregate price of $11.9 million, at an average market price of $14.57 per share. As of September 30, 2024, the Company had 32.6 million unrestricted shares outstanding and $44.1 million remaining for share repurchase.

As of September 30, 2024, the Company had $64.0 million in cash and cash equivalents with no debt outstanding. There were no borrowings drawn under its revolving senior secured asset-based credit facility (ABL). As of September 30, 2024, borrowing base availability under the ABL was $150.2 million, with $135.2 million of availability net of $15.0 million of letters of credit.

Outlook for Fourth Quarter 2024

The guidance below applies to management’s expectations for the fourth quarter of 2024.

 

Q4 2024 Range

 

Year-over-Year

 

Sequential

Change

 

Change

 

 

 

 

 

 

Revenue

$300 million - $310 million

 

(28%)% - (25%)%

 

(5%)% - (2%)%

 

 

 

 

 

 

Adjusted EBITDA*

$11.0 million - $13.0 million

 

(47%)% - (37%)%

 

6%% - 26%

 

 

 

 

 

 

Adjusted EPS*

$0.10 - $0.14

 

$(0.19) - $(0.15)

 

$(0.02) - $0.02

* Refer to discussion of non-GAAP financial measures and the reconciliation tables below.

The above estimates are based on current management expectations and, as such, are forward-looking and actual results may differ materially. The above ranges do not include the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases.

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Wednesday, November 6, 2024, at 5:00 P.M. Eastern Time to discuss its third quarter 2024 financial results. This call will be webcast live and can be accessed at the Company’s website at ir.crosscountry.com or by dialing 888-566-1290 from anywhere in the U.S. or by dialing 773-799-3776 from non-U.S. locations - Passcode: Cross Country. A replay of the webcast will be available from November 6th through November 20th on the Company’s website and a replay of the conference call will be available by telephone by calling 800-835-4610 from anywhere in the U.S. or 203-369-3352 from non-U.S. locations - Passcode: 4915.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Country Healthcare, Inc. is a market-leading, tech-enabled workforce solutions and advisory firm with 38 years of industry experience and insight. We help clients tackle complex labor-related challenges and achieve high-quality outcomes, while reducing complexity and improving visibility through data-driven insights. Diversity, equality, and inclusion is at the heart of the organization’s overall corporate social responsibility program, and closely aligned with our core values to create a better future for its people, communities, and its stockholders.

Copies of this and other press releases, as well as additional information about the Company, can be accessed online at ir.crosscountry.com. Stockholders and prospective investors can also register to automatically receive the Company’s press releases, filings with the Securities and Exchange Commission (SEC), and other notices by e-mail.

NON-GAAP FINANCIAL MEASURES

This press release and the accompanying financial statement tables reference non-GAAP financial measures, such as gross profit margin, adjusted EBITDA, and adjusted EPS. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP. Such non-GAAP financial measures are provided for consistency and comparability to prior year results; furthermore, management believes such non-GAAP financial measures are useful to investors when evaluating the Company’s performance, as such non-GAAP financial measures exclude certain items that management believes are not indicative of the Company’s future operating performance. Pro forma measures, if applicable, are adjusted to include the results of our acquisitions, and exclude the results of divestments, as if the transactions occurred in the beginning of the periods mentioned. Such non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. The financial statement tables that accompany this press release include a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure and a more detailed discussion of each financial measure; as such, the financial statement tables should be read in conjunction with the presentation of these non-GAAP financial measures.

In addition, forward-looking adjusted EBITDA and adjusted EPS for fiscal 2024 exclude potential charges or gains that may be recorded during the fiscal year, including among other things, the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases. We have not attempted to provide reconciliations of such forward-looking non-GAAP earnings guidance to the comparable GAAP measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of our financial performance.

FORWARD-LOOKING STATEMENTS

In addition to historical information, this press release contains statements relating to our future results (including certain projections and business trends) that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbor created by those sections. Forward-looking statements consist of statements that are predictive in nature and/or depend upon or refer to future events. Words such as expects, anticipates, intends, plans, believes, estimates, suggests, appears, seeks, will, could, and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. These factors include, but are not limited to, the following: the overall macroeconomic environment, including increased inflation and interest rates, demand for the healthcare services that we provide, both nationally and in the regions in which we operate, our ability to attract and retain qualified nurses, physicians, and other healthcare personnel, costs and availability of short-term housing for our travel healthcare professionals, the functioning of our information systems, the effect of cyber security risks and cyber incidents on our business, the effect of existing or future government regulation and federal and state legislative and enforcement initiatives on our business, including data privacy and protection laws, social, ethical, and security issues relating to the use of artificial intelligence, our customers ability to pay us for our services, our ability to successfully implement our acquisition and development strategies, including our ability to successfully integrate acquired businesses and realize synergies from such acquisitions, the effect of liabilities and other claims asserted against us, the effect of competition in the markets we serve, our ability to successfully defend the Company, its subsidiaries, and its officers and directors on the merits of any lawsuit or determine its potential liability, if any, and other factors, including, without limitation, the risk factors set forth in Item 1A. Risk Factors in the Companys Annual Report on Form 10-K for the year ended December 31, 2023, as filed and updated in our Quarterly Reports on Form 10-Q and other filings with the SEC. You should consult any further disclosures that the Company makes on related subjects in its filings with the SEC.

Although we believe that these statements are based upon reasonable assumptions, we cannot guarantee future results and readers are cautioned not to place undue reliance on these forward-looking statements, which reflect managements opinions only as of the date of this press release. There can be no assurance that (i) we have correctly measured or identified all of the factors affecting our business or the extent of these factors likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct, or (iv) our strategy, which is based in part on this analysis, will be successful. Except as may be required by law, the Company undertakes no obligation to update or revise forward-looking statements. All references to the Company, we, us, our, or Cross Country in this press release mean Cross Country Healthcare, Inc. and its consolidated subsidiaries.

Cross Country Healthcare, Inc.

Consolidated Statements of Operations

(Unaudited, amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2024

 

2023

 

 

 

 

 

 

Revenue from services

$

315,119

 

 

$

442,291

 

 

$

339,771

 

 

$

1,034,064

 

 

$

1,605,693

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Direct operating expenses

 

250,961

 

 

 

344,932

 

 

 

268,966

 

 

 

821,804

 

 

 

1,245,772

 

Selling, general and administrative expenses

 

54,297

 

 

 

69,627

 

 

 

60,258

 

 

 

177,807

 

 

 

232,825

 

Credit loss expense

 

1,512

 

 

 

2,355

 

 

 

18,858

 

 

 

21,660

 

 

 

10,397

 

Depreciation and amortization

 

4,498

 

 

 

4,540

 

 

 

4,719

 

 

 

13,859

 

 

 

13,876

 

Restructuring costs

 

998

 

 

 

348

 

 

 

2,116

 

 

 

4,052

 

 

 

1,690

 

Legal and other losses

 

 

 

 

 

 

 

3,946

 

 

 

7,596

 

 

 

1,125

 

Impairment charges

 

 

 

 

186

 

 

 

114

 

 

 

718

 

 

 

719

 

Total operating expenses

 

312,266

 

 

 

421,988

 

 

 

358,977

 

 

 

1,047,496

 

 

 

1,506,404

 

Income (loss) from operations

 

2,853

 

 

 

20,303

 

 

 

(19,206

)

 

 

(13,432

)

 

 

99,289

 

Other expenses (income):

 

 

 

 

 

 

 

 

 

Interest expense

 

550

 

 

 

669

 

 

 

568

 

 

 

1,580

 

 

 

7,508

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

1,723

 

Interest income

 

(1,107

)

 

 

(5

)

 

 

(235

)

 

 

(1,515

)

 

 

(12

)

Other expense (income) , net

 

21

 

 

 

139

 

 

 

23

 

 

 

(1,013

)

 

 

145

 

Income (loss) before income taxes

 

3,389

 

 

 

19,500

 

 

 

(19,562

)

 

 

(12,484

)

 

 

89,925

 

Income tax expense (benefit)

 

834

 

 

 

6,688

 

 

 

(3,512

)

 

 

(1,681

)

 

 

26,332

 

Net income (loss) attributable to common stockholders

$

2,555

 

 

$

12,812

 

 

$

(16,050

)

 

$

(10,803

)

 

$

63,593

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders - Basic

$

0.08

 

 

$

0.37

 

 

$

(0.47

)

 

$

(0.32

)

 

$

1.80

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders - Diluted

$

0.08

 

 

$

0.36

 

 

$

(0.47

)

 

$

(0.32

)

 

$

1.78

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

33,016

 

 

 

34,954

 

 

 

33,960

 

 

 

33,728

 

 

 

35,386

 

Diluted

 

33,058

 

 

 

35,152

 

 

 

33,960

 

 

 

33,728

 

 

 

35,742

 

Cross Country Healthcare, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited, amounts in thousands, except per share data)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2024

 

2023

Adjusted EBITDA:a

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders

$

2,555

 

 

$

12,812

 

 

$

(16,050

)

 

$

(10,803

)

 

$

63,593

 

Interest expense

 

550

 

 

 

669

 

 

 

568

 

 

 

1,580

 

 

 

7,508

 

Income tax expense (benefit)b

 

834

 

 

 

6,688

 

 

 

(3,512

)

 

 

(1,681

)

 

 

26,332

 

Depreciation and amortization

 

4,498

 

 

 

4,540

 

 

 

4,719

 

 

 

13,859

 

 

 

13,876

 

Acquisition and integration-related costs

 

 

 

 

13

 

 

 

 

 

 

 

 

 

59

 

Restructuring costsc

 

998

 

 

 

348

 

 

 

2,116

 

 

 

4,052

 

 

 

1,690

 

Legal, bankruptcy, and other lossesd

 

 

 

 

 

 

 

23,319

 

 

 

26,969

 

 

 

1,125

 

Impairment chargese

 

 

 

 

186

 

 

 

114

 

 

 

718

 

 

 

719

 

Loss on disposal of fixed assets

 

 

 

 

43

 

 

 

 

 

 

 

 

 

43

 

Loss on early extinguishment of debtf

 

 

 

 

 

 

 

 

 

 

 

 

 

1,723

 

Loss on lease termination

 

 

 

 

96

 

 

 

 

 

 

 

 

 

104

 

Interest income

 

(1,107

)

 

 

(5

)

 

 

(235

)

 

 

(1,515

)

 

 

(12

)

Other expense (income), net

 

21

 

 

 

 

 

 

23

 

 

 

(1,013

)

 

 

(2

)

Equity compensation

 

870

 

 

 

1,433

 

 

 

2,259

 

 

 

4,327

 

 

 

5,413

 

System conversion costsg

 

1,120

 

 

 

425

 

 

 

857

 

 

 

3,306

 

 

 

1,658

 

Adjusted EBITDAa

$

10,339

 

 

$

27,248

 

 

$

14,178

 

 

$

39,799

 

 

$

123,829

 

Adjusted EBITDA margina

 

3.3

%

 

 

6.2

%

 

 

4.2

%

 

 

3.8

%

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

Adjusted EPS:h

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders

$

2,555

 

 

$

12,812

 

 

$

(16,050

)

 

$

(10,803

)

 

$

63,593

 

Non-GAAP adjustments - pretax:

 

 

 

 

 

 

 

 

 

Acquisition and integration-related costs

 

 

 

 

13

 

 

 

 

 

 

 

 

 

59

 

Restructuring costsc

 

998

 

 

 

348

 

 

 

2,116

 

 

 

4,052

 

 

 

1,690

 

Legal, bankruptcy, and other lossesd

 

 

 

 

 

 

 

23,319

 

 

 

26,969

 

 

 

1,125

 

Impairment chargese

 

 

 

 

186

 

 

 

114

 

 

 

718

 

 

 

719

 

Other income, net

 

 

 

 

 

 

 

 

 

 

(1,115

)

 

 

 

Loss on early extinguishment of debtf

 

 

 

 

 

 

 

 

 

 

 

 

 

1,723

 

System conversion costsg

 

1,120

 

 

 

425

 

 

 

857

 

 

 

3,306

 

 

 

1,658

 

Tax impact of non-GAAP adjustments

 

(552

)

 

 

(208

)

 

 

(7,066

)

 

 

(9,023

)

 

 

(1,767

)

Adjusted net income attributable to common stockholders - non-GAAP

$

4,121

 

 

$

13,576

 

 

$

3,290

 

 

$

14,104

 

 

$

68,800

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares - basic, GAAP

 

33,016

 

 

 

34,954

 

 

 

33,960

 

 

 

33,728

 

 

 

35,386

 

Dilutive impact of share-based payments

 

42

 

 

 

198

 

 

 

42

 

 

 

155

 

 

 

356

 

Adjusted weighted average common shares - diluted, non-GAAP

 

33,058

 

 

 

35,152

 

 

 

34,002

 

 

 

33,883

 

 

 

35,742

 

 

 

 

 

 

 

 

 

 

 

Reconciliation:

 

 

 

 

 

 

 

 

 

Diluted EPS, GAAP

$

0.08

 

 

$

0.36

 

 

$

(0.47

)

 

$

(0.32

)

 

$

1.78

 

Non-GAAP adjustments - pretax:

 

 

 

 

 

 

 

 

 

Restructuring costsc

 

0.03

 

 

 

0.01

 

 

 

0.06

 

 

 

0.12

 

 

 

0.05

 

Legal, bankruptcy, and other lossesd

 

 

 

 

 

 

 

0.69

 

 

 

0.79

 

 

 

0.03

 

Impairment chargese

 

 

 

 

0.01

 

 

 

 

 

 

0.02

 

 

 

0.02

 

Other income, net

 

 

 

 

 

 

 

 

 

 

(0.03

)

 

 

 

Loss on early extinguishment of debtf

 

 

 

 

 

 

 

 

 

 

 

 

 

0.05

 

System conversion costsg

 

0.03

 

 

 

0.01

 

 

 

0.03

 

 

 

0.10

 

 

 

0.04

 

Tax impact of non-GAAP adjustments

 

(0.02

)

 

 

 

 

 

(0.21

)

 

 

(0.27

)

 

 

(0.05

)

Adjusted EPS, non-GAAPh

$

0.12

$

0.39

 

 

$

0.10

 

 

$

0.41

 

 

$

1.92

Cross Country Healthcare, Inc.

Consolidated Balance Sheets

(Unaudited, amounts in thousands)

 

 

September 30,

 

December 31,

 

2024

 

2023

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

64,021

 

 

$

17,094

 

Accounts receivable, net

 

244,987

 

 

 

372,352

 

Income taxes receivablei

 

10,128

 

 

 

8,620

 

Prepaid expenses

 

4,554

 

 

 

7,681

 

Insurance recovery receivable

 

12,102

 

 

 

9,097

 

Other current assets

 

794

 

 

 

2,031

 

Total current assets

 

336,586

 

 

 

416,875

 

Property and equipment, net

 

28,975

 

 

 

27,339

 

Operating lease right-of-use assets

 

2,700

 

 

 

2,599

 

Goodwill

 

135,430

 

 

 

135,430

 

Other intangible assets, net

 

46,453

 

 

 

54,468

 

Deferred tax assetsi

 

9,038

 

 

 

5,979

 

Insurance recovery receivable

 

21,812

 

 

 

25,714

 

Cloud computing

 

9,735

 

 

 

5,987

 

Other assets

 

6,694

 

 

 

6,673

 

Total assets

$

597,423

 

 

$

681,064

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expensesi

$

58,436

 

 

$

92,822

 

Accrued compensation and benefits

 

54,285

 

 

 

52,297

 

Operating lease liabilities

 

2,060

 

 

 

2,604

 

Earnout liability

 

4,100

 

 

 

6,794

 

Other current liabilities

 

1,796

 

 

 

1,559

 

Total current liabilities

 

120,677

 

 

 

156,076

 

Operating lease liabilities

 

2,348

 

 

 

2,663

 

Accrued claims

 

34,893

 

 

 

34,853

 

Earnout liability

 

 

 

 

5,000

 

Uncertain tax positions

 

11,169

 

 

 

10,603

 

Other liabilities

 

3,645

 

 

 

4,218

 

Total liabilities

 

172,732

 

 

 

213,413

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock

 

3

 

 

 

4

 

Additional paid-in capital

 

204,273

 

 

 

236,417

 

Accumulated other comprehensive loss

 

(1,397

)

 

 

(1,385

)

Retained earningsi

 

221,812

 

 

 

232,615

 

Total stockholders’ equity

 

424,691

 

 

 

467,651

 

Total liabilities and stockholders’ equity

$

597,423

 

$

681,064

Cross Country Healthcare, Inc.

Segment Dataj

(Unaudited, amounts in thousands)

 

 

Three Months Ended

 

Year-over-
Year

 

Sequential

 

September 30,

% of

 

September 30,

% of

 

June 30,

% of

 

% change

 

% change

 

2024

Total

 

2023

Total

 

2024

Total

 

Fav (Unfav)

 

Fav (Unfav)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from services:

 

 

 

 

 

 

 

 

 

 

 

 

Nurse and Allied Staffing

$

264,853

 

84

%

 

$

396,595

90

%

 

$

291,451

 

86

%

 

(33

)%

 

(9

)%

Physician Staffing

 

50,266

 

16

%

 

 

45,696

10

%

 

 

48,320

 

14

%

 

10

%

 

4

%

 

$

315,119

 

100

%

 

$

442,291

100

%

 

$

339,771

 

100

%

 

(29

)%

 

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution income:k

 

 

 

 

 

 

 

 

 

 

 

 

Nurse and Allied Staffing

$

19,251

 

 

 

$

39,226

 

 

$

5,820

 

 

 

(51

)%

 

231

%

Physician Staffing

 

4,629

 

 

 

 

2,576

 

 

 

4,033

 

 

 

80

%

 

15

%

 

 

23,880

 

 

 

 

41,802

 

 

 

9,853

 

 

 

(43

)%

 

142

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate overheadl

 

15,531

 

 

 

 

16,412

 

 

 

18,161

 

 

 

5

%

 

14

%

Depreciation and amortization

 

4,498

 

 

 

 

4,540

 

 

 

4,719

 

 

 

1

%

 

5

%

Restructuring costsc

 

998

 

 

 

 

348

 

 

 

2,116

 

 

 

(187

)%

 

53

%

Legal and other lossesm

 

 

 

 

 

 

 

 

3,946

 

 

 

%

 

100

%

Impairment chargese

 

 

 

 

 

186

 

 

 

114

 

 

 

100

%

 

100

%

Other costs

 

 

 

 

 

13

 

 

 

3

 

 

 

100

%

 

100

%

Income (loss) from operations

$

2,853

 

 

 

$

20,303

 

 

$

(19,206

)

 

 

(86

)%

 

115

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

Year-over-
Year

 

 

 

September 30,

% of

 

September 30,

% of

 

 

 

% change

 

 

 

 

2024

 

Total

 

 

2023

Total

 

 

Fav (Unfav)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue from services:

 

 

 

 

 

 

 

 

 

 

 

 

Nurse and Allied Staffing

$

888,490

 

86

%

 

$

1,474,273

92

%

 

 

 

 

(40

)%

 

 

Physician Staffing

 

145,574

 

14

%

 

 

131,420

8

%

 

 

 

 

11

%

 

 

 

$

1,034,064

 

100

%

 

$

1,605,693

100

%

 

 

 

 

(36

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contribution income:k

 

 

 

 

 

 

 

 

 

 

 

 

Nurse and Allied Staffing

$

52,254

 

 

 

$

162,876

 

 

 

 

 

(68

)%

 

 

Physician Staffing

 

11,800

 

 

 

 

7,841

 

 

 

 

 

50

%

 

 

 

 

64,054

 

 

 

 

170,717

 

 

 

 

 

(62

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate overheadl

 

51,258

 

 

 

 

53,959

 

 

 

 

 

5

%

 

 

Depreciation and amortization

 

13,859

 

 

 

 

13,876

 

 

 

 

 

%

 

 

Restructuring costsc

 

4,052

 

 

 

 

1,690

 

 

 

 

 

(140

)%

 

 

Legal and other lossesm

 

7,596

 

 

 

 

1,125

 

 

 

 

 

(575

)%

 

 

Impairment chargese

 

718

 

 

 

 

719

 

 

 

 

 

%

 

 

Other costs

 

3

 

 

 

 

59

 

 

 

 

 

95

%

 

 

(Loss) income from operations

$

(13,432

)

 

 

$

99,289

 

 

 

 

 

(114

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other costs include acquisition and integration-related costs.

Cross Country Healthcare, Inc.

Summary Condensed Consolidated Statements of Cash Flows

(Unaudited, amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

7,470

 

 

$

70,311

 

 

$

82,401

 

 

$

95,882

 

 

$

236,424

 

Net cash used in investing activities

 

(1,124

)

 

 

(3,408

)

 

 

(2,849

)

 

 

(6,183

)

 

 

(10,900

)

Net cash used in financing activities

 

(11,926

)

 

 

(53,273

)

 

 

(15,193

)

 

 

(42,772

)

 

 

(214,825

)

Effect of exchange rate changes on cash

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

(2

)

Change in cash and cash equivalents

 

(5,580

)

 

 

13,628

 

 

 

64,359

 

 

 

46,927

 

 

 

10,697

 

Cash and cash equivalents at beginning of period

 

69,601

 

 

 

673

 

 

 

5,242

 

 

 

17,094

 

 

 

3,604

 

Cash and cash equivalents at end of period

$

64,021

 

 

 

14,301

 

 

$

69,601

 

 

$

64,021

 

 

$

14,301

 

 

 

 

 

 

 

 

 

 

 

Cross Country Healthcare, Inc.

Other Financial Data

(Unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

2024

 

2023

 

2024

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Revenue from services

$

315,119

 

 

$

442,291

 

 

$

339,771

 

 

$

1,034,064

 

 

$

1,605,693

 

Less: Direct operating expenses

 

250,961

 

 

 

344,932

 

 

 

268,966

 

 

 

821,804

 

 

 

1,245,772

 

Gross profit

$

64,158

 

 

$

97,359

 

 

$

70,805

 

 

$

212,260

 

 

$

359,921

 

Consolidated gross profit marginn

 

20.4

%

 

 

22.0

%

 

 

20.8

%

 

 

20.5

%

 

 

22.4

%

 

 

 

 

 

 

 

 

 

 

Nurse and Allied Staffing statistical data:

 

 

 

 

 

 

 

 

 

FTEso

 

7,660

 

 

 

9,849

 

 

 

8,415

 

 

 

8,400

 

 

 

11,251

 

Average Nurse and Allied Staffing revenue per FTE per dayp

$

373

 

 

$

434

 

 

$

377

 

 

$

383

 

 

$

476

 

 

 

 

 

 

 

 

 

 

 

Physician Staffing statistical data:

 

 

 

 

 

 

 

 

 

Days filledq

 

24,424

 

 

 

23,004

 

 

 

24,252

 

 

 

72,461

 

 

 

68,927

 

Revenue per day filledr

$

2,058

 

 

$

1,986

 

 

$

1,992

 

 

$

2,009

 

 

$

1,907

 

(a)

Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders before interest expense, income tax expense (benefit), depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on disposal of fixed assets, gain or loss on lease termination, gain or loss on sale of business, other expense (income), net, equity compensation, and system conversion costs. Adjusted EBITDA is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net income (loss) attributable to common stockholders as an indicator of operating performance. Management uses Adjusted EBITDA for planning purposes and as one performance measure in its incentive programs for certain members of its management team. Adjusted EBITDA, as defined, closely matches the operating measure as defined by the Company's credit facilities. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company's consolidated revenue.

(b)

The decrease in income tax expense for the three and nine months ended September 30, 2024 related to a decrease in book income primarily driven by credit loss expense.

(c)

Restructuring costs were primarily comprised of employee termination costs, lease-related exit costs, and reorganization costs as part of planned cost savings initiatives.

(d)

Includes legal costs and other settlement charges as presented on the consolidated statements of operations, losses pertaining to matters outside the normal course of operations, and $19.4 million of credit loss expense driven by a bankruptcy filing by a single large customer for the nine months ending September 30, 2024. There was no significant impact on operations from this client as the majority of the business had been wound down in the prior year. For the nine months ended September 30, 2023, the Company incurred $1.1 million, including legal fees, to settle a wage and hour class action lawsuit.

(e)

Impairment charges for the nine months ended September 30, 2024 were related to right-of-use assets and related property in connection with vacated leases during 2024. Impairment charges for the nine months ended September 30, 2023 primarily related to the write-off of an abandoned IT project.

(f)

Loss on early extinguishment of debt for the nine months ended September 30, 2023 consisted of the write-off of debt issuance costs related to the payoff and termination of the term loan on June 30, 3023.

(g)

System conversion costs include enterprise resource planning system costs related to the upgrading and integrating of our middle and back-office platforms, with certain development costs capitalized and amortized in accordance with the Company’s policies, and applicant tracking system costs related to the Company’s project to replace its legacy system supporting its travel nurse staffing business.

(h)

Adjusted EPS, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders per diluted share before the diluted EPS impact of acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on sale of business, system conversion costs, and nonrecurring income tax adjustments. Adjusted EPS is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EPS because it believes that Adjusted EPS is a useful supplement to its reported EPS as an indicator of operating performance. Management believes Adjusted EPS provides a more useful comparison of the Company’s underlying business performance from period to period and is more representative of the future earnings capacity of the Company than EPS. Quarterly non-GAAP adjustment may vary due to rounding.

(i)

Financial information included in the December 31, 2023 balance sheet includes immaterial revisions to the Company's previously-reported financial information. Please see the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, as filed with the SEC, for more information.

(j)

Segment data is provided in accordance with the Segment Reporting Topic of the Financial Accounting Standards Board Accounting Standards Codification.

(k)

Contribution income is defined as income (loss) from operations before depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, impairment charges, and corporate overhead. Contribution income is a financial measure used by management when assessing segment performance.

(l)

Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, human resources, and marketing, as well as public company expenses and Company-wide projects (initiatives).

(m)

Legal and other losses includes legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations.

(n)

Gross profit is defined as revenue from services less direct operating expenses. The Company’s gross profit excludes allocated depreciation and amortization expense. Gross profit margin is calculated by dividing gross profit by revenue from services.

(o)

FTEs represent the average number of Nurse and Allied Staffing contract personnel on a full-time equivalent basis.

(p)

Average revenue per FTE per day is calculated by dividing Nurse and Allied Staffing revenue, excluding permanent placement, per FTE by the number of days worked in the respective periods.

(q)

Days filled is calculated by dividing the total hours invoiced during the period, including an estimate for the impact of accrued revenue, by 8 hours.

(r)

Revenue per day filled is calculated by dividing revenue as reported by days filled for the period presented.

 

Cross Country Healthcare, Inc.

William J. Burns, Executive Vice President & Chief Financial Officer

561-237-2555

wburns@crosscountry.com

Source: Cross Country Healthcare, Inc.

FAQ

What was Cross Country Healthcare's (CCRN) revenue in Q3 2024?

Cross Country Healthcare reported revenue of $315.1 million in Q3 2024, representing a 29% decrease year-over-year and 7% decrease sequentially.

How much cash does CCRN have on its balance sheet as of September 30, 2024?

As of September 30, 2024, Cross Country Healthcare had $64.0 million in cash and cash equivalents with no debt outstanding.

What is CCRN's Q4 2024 revenue guidance?

Cross Country Healthcare projects Q4 2024 revenue to be between $300 million and $310 million, representing a 25-28% year-over-year decline.

How many shares did CCRN repurchase in Q3 2024?

Cross Country Healthcare repurchased over 800,000 shares for $11.9 million during Q3 2024, at an average price of $14.57 per share.

Cross Country Healthcare Inc

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