Connecting to LinkedIn...

Blank

Cross Country Healthcare Q2 gross profit margin down at 25.1%

• Revenue was $192.6 million, up 57% year-over-year and 4% on a pro forma basis 

• Adjusted EBITDA was $8.2 million or 4.2% of revenue versus $3.3 million or 2.7% of revenue in the prior year 

• Reported diluted earnings per share (EPS) was $0.08 Adjusted EPS was $0.10 

• Third Quarter Guidance: Revenue of $192 million - $197 million and Adjusted EBITDA margin of 4.2% - 4.7% 

"We continue to make significant progress improving our financial performance. In addition, we were able to reduce the interest rate on our subordinated term debt and entered into an agreement to sell Cross Country Education, a non-core business," said William J. Grubbs, president and chief executive officer. "The U.S. Supreme Court's recent decision regarding the Affordable Care Act was also a favorable development for our industry that should contribute to our continued growth. I remain very optimistic about our performance and the trends in the business." 

Second quarter consolidated revenue was $192.6 million, an increase of 57% year-over-year and 4% sequentially. On a pro forma basis, revenue was up 4% year-over-year. The Company's consolidated gross profit margin was 25.1%, down 130 basis points year-over-year and down 20 basis points sequentially.

Adjusted EBITDA was $8.2 million or 4.2% of revenue, as compared with $3.3 million or 2.7% of revenue in the prior year. Net income attributable to common shareholders was $2.6 million, or $0.08 per diluted share, compared to a net loss of $3.2 million or $0.10 per diluted share in the prior year. Adjusted EPS was $0.10 compared to $0.01 in the prior year. 

For the six months ended June 30, 2015, consolidated revenue was $378.6 million, an increase of 57% year-over-year. On a pro forma basis, revenue was up 4% year-over-year. Consolidated gross profit margin was 25.2%, down 90 basis points year-over-year. Adjusted EBITDA was $14.3 million or 3.8% of revenue, as compared with $4.3 million or 1.8% of revenue in the prior year. Net income attributable to common shareholders was $5.5 million, or $0.13 per diluted share, compared to a net loss of $4.0 million or $0.13 per diluted share in the prior year. Adjusted EPS was $0.12 compared to a loss of $0.01 in the prior year. 

Nurse and Allied Staffing 
Revenue from Nurse and Allied Staffing increased 83% year-over-year and 2% sequentially. On a pro forma basis, revenue was up 6% year-over-year. Contribution income in this segment was $12.5 million, up from $6.7 million in the prior year. The year-over-year increase in segment revenue and contribution income was due to both the impact of the MSN acquisition and organic growth. Average field FTEs increased to 6,607 from 3,190 in the prior year. Revenue per FTE per day was $254 compared to $287 in the prior year reflecting the expected impact of the lower average bill rates of MSN. 

Physician Staffing 
Revenue from Physician Staffing decreased 1% year-over-year and increased 9% sequentially. Contribution income was $2.2 million, up from $1.8 million in the prior year due primarily to lower SG&A expenses. Compared to the prior year, total days filled decreased to 18,339 from 20,377 while revenue per day filled increased to $1,623 from $1,468. 

Other Human Capital Management Services 
Revenue from Other Human Capital Management Services was $10.1 million, an increase of 10% year-over-year and 7% sequentially. The year-over-year increase was entirely due to growth in the search business which was up 35% year-over-year. Contribution income was $0.7 million, compared to a loss of $0.2 million in the prior year.

Tags:

Articles similar to

Articles similar to