Connecting to LinkedIn...

Blank

Cross Country Healthcare Announces First Quarter 2014 financial results

Highlights 

Revenue increased 7% year over year and 8% sequentially to $118.1 million

Adjusted EBITDA was $1.0 million or 0.9% of revenue

Second Quarter Guidance: Revenue of $121.0 million - $124.0 million and Adjusted EBITDA of 2% - 3%

Cross Country Healthcare President and CEO William J. Grubbs commented, "I am pleased with our performance in the quarter, particularly in our largest business, Nurse and Allied Staffing, where we are experiencing good year-over-year growth, higher bill rates, increased pay/bill spreads and increased demand. I am confident that in the coming quarters, we will see improved results in our overall business, reflecting the successful execution of our new strategy and the benefits of the investments we made in late 2013."

First quarter consolidated revenue was $118.1 million, an increase of 7% from the same quarter last year, and 8% sequentially. The Company's consolidated gross profit margin was 25.8%, down 40 basis points from both the same quarter last year and sequentially. Adjusted EBITDA (see table titled "Reconciliation of Non-GAAP Financial Measures") was $1.0 million or 0.9% of revenue, as compared with $2.0 million or 1.8% of revenue in the prior year. Loss from continuing operations was $0.8 million, or $0.03 per diluted share, as compared with a loss of $1.3 million or $0.04 per diluted share in the prior year quarter. The Company used $9.2 million in cash flow from operations during the first quarter of 2014, compared with $1.5 million in the first quarter of 2013.

Business Segment Highlights

Nursing & Allied

Revenue from the nurse and allied staffing business segment increased 13% from the same quarter last year, and 16% sequentially. Contribution income in this segment was $6.0 million, up from $5.2 million in the same quarter last year. The year-over-year increase in segment revenue and contribution income was primarily from the December 2013 allied staffing acquisition. Including the acquisition, average field FTEs increased 25.1% to 3,107 from 2,483 in the same quarter last year. Revenue per FTE decreased 9.7% to $287 from $318 in the same quarter last year reflecting the impact of lower average bill rates of the acquired allied staffing business.

Physician Staffing

Revenue from the physician staffing business decreased 2% year over year and 6% sequentially primarily due to lower volume. Contribution income was $0.8 million, down from $2.2 million in the same quarter last year, largely due to charges related to professional liability claims and to a lesser extent the decline in revenue. Total days filled decreased 2.7% to 20,801 from 21,388 in the same quarter last year. Revenue per day filled increased 2.8% to $1,423 from $1,384 in the same quarter last year, primarily related to pricing.

Other Human Capital Management Services

Revenue from the other human capital management services business segment was $8.8 million, down 8% from the same quarter last year and 3% sequentially. Contribution income was $0.2 million, compared to $0.3 million in the same quarter last year.

Cash Flow and Balance Sheet Highlights

The Company used $9.2 million of cash in operations for the quarter which included funding the net working capital requirements for the allied healthcare acquisition. Capital expenditures were $2.6 million for the quarter which included $0.9 million of leasehold improvements funded by our landlord. At March 31, 2014, the Company had $7.2 million in cash and cash equivalents, $19.5 million of debt related primarily to its revolving credit facility and $14.7 million of availability under its credit facility.

Outlook for Second Quarter 2014

The Company also provided its guidance for the second quarter of 2014:

Range

 

 

 

 

Year over Year

Change

 

 

 

 

 

 

 

Revenue

 

 

$121 million to $124 million

 

9% - 12%

 

 

 

 

 

 

 

Gross Profit Margin

 

 

26.5% to 27.0%

 

140 to 190 basis points

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

2% - 3%

 

50 to 150 basis points

 

 

 

 

 

 

The estimates above are based on current management expectations and as such are forward-looking and actual results may differ materially. These ranges do not include the potential impact of any future mergers, acquisitions or other business combinations, any impairment charges or valuation allowances, or any material legal or restructuring charges. 

Cross Country Healthcare, Inc.

 

Consolidated Statements of Operations

 

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

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

March 31,

 

December 31,

 

 

2014

 

2013

 

2013

 

 

 

 

 

 

 

Revenue from services

$

118,091

 

 

$

110,316

 

 

$

109,179

 

Operating expenses:

 

 

 

 

 

 

Direct operating expenses

 

87,641

 

 

81,440

 

 

80,617

 

Selling, general and administrative expenses

 

29,455

 

 

27,065

 

 

26,945

 

Bad debt expense

 

432

 

 

422

 

 

309

 

Depreciation

 

974

 

 

1,022

 

 

934

 

Amortization

 

785

 

 

566

 

 

610

 

Acquisition and integration costs (a)

 

295

 

 

 

 

473

 

Impairment charges (b)

 

 

6,400

 

Total operating expenses

119,582

 

110,515

 

116,288

 

Loss from operations

 

(1,491

)

 

 

(199

)

 

 

(7,109

)

 

Other expenses (income):

 

 

 

 

 

 

Foreign exchange loss

 

47

 

 

9

 

 

22

 

Interest expense

 

255

 

 

280

 

 

215

 

Loss on early extinguishment and modification of debt (c)

 

 

 

1,419

 

 

 

Other expense (income), net

60

 

(61

)

 

(36

)

 

Loss from continuing operations before income taxes

 

(1,853

)

 

 

(1,846

)

 

 

(7,310

)

 

Income tax (benefit) expense

(1,071

)

 

(500

)

 

45,612

 

Loss from continuing operations

 

(782

)

 

 

(1,346

)

 

 

(52,922

)

 

Income from discontinued operations, net of income taxes (d)

 

2,504

 

338

 

Net (loss) income

$

(782

)

 

$

1,158

 

$

(52,584

)

 

 

 

 

 

 

 

Net (loss) income per common share, basic:

 

 

 

 

 

 

Continuing operations

$

(0.03

)

 

$

(0.04

)

 

$

(1.70

)

 

Discontinued operations

 

0.08

 

0.01

 

Net (loss) income

$

(0.03

)

 

$

0.04

 

$

(1.69

)

 

 

 

 

 

 

 

Net (loss) income per common share, diluted:

 

 

 

 

 

 

Continuing operations

$

(0.03

)

 

$

(0.04

)

 

$

(1.70

)

 

Discontinued operations

 

0.08

 

0.01

 

Net (loss) income

$

(0.03

)

 

$

0.04

 

$

(1.69

)

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

31,098

 

 

30,902

 

 

31,085

 

Diluted

 

31,098

 

 

30,902

 

 

31,085

 

Tags:

Articles similar to

Articles similar to