Cross Country Healthcare revenue up 57% YOY in Q1 2015
• Revenue was $186.0 million, up 57% year-over-year and 5% on a pro forma basis*
• Adjusted EBITDA was $6.2 million or 3.3% of revenue versus $1.0 million or 0.9% of revenue in the prior year
• Net income attributable to common shareholders was $0.05 per diluted share Adjusted net income attributable to common shareholders was $0.03 per diluted share
• Second Quarter Guidance: Revenue of $188 million - $192 million and Adjusted EBITDA margin of 3.7% - 4.2%
"We had a good start to 2015 with strong year-over-year revenue growth and a $5 million improvement in our Adjusted EBITDA," said William J Grubbs, President and Chief Executive Officer. Mr. Grubbs continued, "We are well positioned for continued improvement throughout the year and, as previously announced, expect to achieve our targeted 5% Adjusted EBITDA by the fourth quarter."
First quarter consolidated revenue was $186.0 million, an increase of 57% year-over-year, and a decrease of 1% sequentially. On a pro forma basis, revenue was up 5% year-over-year. The Company's consolidated gross profit margin was 25.3%, down 50 basis points year-over-year and flat sequentially. Adjusted EBITDA was $6.2 million or 3.3% of revenue, as compared with $1.0 million or 0.9% of revenue in the prior year (see table titled "Reconciliation of Non-GAAP Financial Measures"). Net income attributable to common shareholders was $2.9 million, or $0.05 per diluted share, compared to a net loss of $0.8 million or $0.03 per diluted share in the prior year.
Quarterly Business Segment Highlights
Nurse and Allied Staffing
Revenue from Nurse and Allied Staffing increased 85% year-over-year and 1% sequentially. On a pro forma basis, revenue was up 8% year-over-year. Contribution income in this segment was $10.6 million, up from $6.0 million in the prior year. The year-over-year increase in segment revenue and contribution income was due to the impact of the Medical Staffing Network, LLC (MSN) acquisition combined with organic growth. Average field FTEs increased to 6,454 from 3,119 in the prior year. Revenue per FTE per day was $257 compared to $288 year-over-year reflecting the impact of the lower average bill rates of MSN.
Revenue from Physician Staffing decreased 4% year-over-year and 10% sequentially, primarily due to lower volume. Contribution income was $2.1 million, up from $0.7 million in the prior year due primarily to lower charges related to professional liability. Compared to the prior year, total days filled decreased to 17,413 from 20,123 while revenue per day filled increased to $1,587 from $1,444.
Other Human Capital Management Services
Revenue from Other Human Capital Management Services was $9.5 million, an increase of 8% year-over-year and down 9% sequentially. The year-over-year increase was due to growth in the physician and executive search business, partially offset by a decline in the education and training business. Contribution income was $0.6 million, compared to $0.2 million.
Cash Flow and Balance Sheet Highlights
Cash flow provided by operating activities was $0.3 million for the quarter. At March 31, 2015, the Company had $7.5 million in cash and cash equivalents and $61.5 million of outstanding debt, comprised of $6.5 million under our revolver and $55.0 million of subordinated debt at par. The Company had $39.0 million of availability under its credit facility at March 31, 2015.