Connecting to LinkedIn...

Blank

Cross Country Healthcare revenue up 72% YoY

FOURTH QUARTER FINANCIAL HIGHLIGHTS:

Revenue was $188.1 million, up 72% year-over-year and 8% on a pro forma basis*

Adjusted EBITDA was $6.2 million or 3.3% of revenue

Adjusted net income attributable to common shareholders per diluted share was $0.03

FULL YEAR FINANCIAL HIGHLIGHTS:

Revenue was $617.8 million, up 41% year-over-year

Adjusted EBITDA was $17.2 million or 2.8% of revenue

Adjusted net income attributable to common shareholders per diluted share was $0.09

*See discussion of Non-GAAP financial measures

William J. Grubbs, Chief Executive Officer, said, "2014 was a transformational year for Cross Country Healthcare with both organic and acquisition growth, improved profitability, expansion of our branch footprint, additions to our workforce solutions portfolio, and an increase in market share. We expect to reach our goal of an Adjusted EBITDA margin in excess of 5% in the fourth quarter of 2015 and 8%, on a run-rate basis, during 2017."

Grubbs continued, "Throughout the fourth quarter, demand for our services remained strong and resulted in pro forma year-over-year revenue growth of 8.4%, accelerating from 6.8% in the third quarter. Excluding a non-cash adjustment for unamortized insurance premiums, our underlying Adjusted EBITDA would have been 3.8% of revenue, up from 3.5% in the third quarter."

Fourth quarter consolidated revenue was $188.1 million, an increase of 72% from the same quarter last year and essentially flat sequentially. On a pro forma basis, revenue was up 8% from the prior year. The Company's consolidated gross profit margin was 25.3%, down 90 basis points from the same quarter last year and up 30 basis points sequentially. Adjusted EBITDA was $6.2 million or 3.3% of revenue, as compared with $1.8 million or 1.6% of revenue in the prior year quarter (see table titled "Reconciliation of Non-GAAP Financial Measures"). Net loss attributable to common shareholders was $20.2 million or $0.65 per diluted share primarily due to a combination of a $10.0 million ($9.1 million after taxes) trade name impairment charge, $9.4 million non-cash change in the fair value of convertible note derivative liability, and $2.5 million of acquisition and integration costs. This compared with a net loss of $52.6 million or $1.69 per diluted share in the prior year quarter. Adjusted net income attributable to common shareholders for the fourth quarter of 2014 was $0.03 per diluted share.

For the year ended December 31, 2014, consolidated revenue was $617.8 million, an increase of 41% from the same period last year. On a pro forma basis, revenue was up 5% year-over-year. Consolidated gross profit margin was 25.5%, down 40 basis points from the prior year. Adjusted EBITDA was $17.2 million or 2.8% of revenue, as compared with $8.4 million or 1.9% of revenue in the prior year. Net loss attributable to common shareholders was $31.8 million or $1.02 per diluted share, as compared with a loss of $52.0 million or $1.68 per diluted share in the prior year. Year-to-date results reflect the impact from the $10.0 million ($9.1 million after taxes) non-cash trade name impairment charge, the $16.7 million non-cash change in the fair value of the convertible note derivative liability, $8.0 million of acquisition and integration costs, and $0.8 million of restructuring charges. Adjusted net income attributable to common shareholders was $0.09 per diluted share for 2014.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing increased 112% from the same quarter last year and decreased 1% sequentially. On a pro forma basis, revenue was up 11% year-over-year. Contribution income in this segment was $11.1 million, up from $4.8 million in the same quarter last year. The year-over-year increase in segment revenue and contribution income was attributed to robust organic growth and the impact of acquisitions. Average field FTEs increased to 6,325 from 2,487 in the same quarter last year. Revenue per FTE per day was $252 compared to $303 in the same quarter last year reflecting the impact of lower average bill rates of our recent acquisitions.

Physician Staffing

Revenue from Physician Staffing increased 1% from the same quarter last year and decreased 4% sequentially. The year-over-year increase is due to the impact of the MSN acquisition. Contribution income was $2.6 million, up from $1.9 million in the same quarter last year. Total days filled decreased to 20,767 from 21,020 in the same quarter last year. Revenue per day filled increased to $1,454 from $1,412 in the same quarter last year reflecting higher average prices.

Other Human Capital Management Services

Revenue from the Other Human Capital Management Services increased 14% from the same quarter last year and sequentially. Contribution income was $0.6 million, compared to a negative $0.1 million in the same quarter last year.

Cash Flow and Balance Sheet Highlights

Cash flow used in operating activities was $1.0 million for the quarter and $4.1 million for the full year. The use of cash in the full year was primarily due to: $6.1 million of acquisition and integration costs and $2.5 million used to fund working capital of our allied healthcare staffing acquisition (working capital was not acquired with this acquisition). At December 31, 2014, the Company had $5.0 million in cash and cash equivalents and $57.4 million of debt, excluding the full year non-cash change in the fair value of convertible note derivative liability of $16.7 million. The Company had $39.7 million of availability under its credit facility at December 31, 2014.

Outlook for First Quarter 2015

The Company also provided its guidance for the first quarter of 2015:

Range

Year-over-Year

Change

 

 

Revenue

$185 million - $190 million

57%-61%

 

 

Gross Profit Margin

25.0% - 25.5%

(80) - (30) basis points

 

 

Adjusted EBITDA Margin

3.2% - 3.7%

230 - 280 basis points

Tags:

Articles similar to

Articles similar to