Cross Country Healthcare EBITDA $12.3m in Q3 2015
Revenue was $195.7 million, up 4% year-over-year or 5% on a pro forma basis. Adjusted EBITDA was $12.3 million or 6.3% of revenue versus $6.6 million or 3.5% of revenue in the prior year. Reported diluted earnings per share (EPS) was $0.16 Adjusted EPS was $0.23. Cash flow from operations was $12.9 million. Fourth Quarter Guidance: Revenue of $193 million - $198 million and Adjusted EBITDA margin of 5.5% - 6.0%
William J. Grubbs, president and chief executive officer, added, "This was another strong quarter for Cross Country Healthcare. We not only exceeded our guidance but we achieved our targeted fourth quarter goal for a 5.0% Adjusted EBITDA margin one quarter ahead of schedule. Our revenue growth, pricing improvement and cost optimization initiatives are all on track and contributed to these results," stated William J. Grubbs, President and Chief Executive Officer. Mr. Grubbs added, "The favorable market conditions along with the addition of our recently announced acquisition of Mediscan should further enhance our results."
Third quarter consolidated revenue was $195.7m, an increase of 4% year-over-year and 2% sequentially. The Company's consolidated gross profit margin was 26.3%, up 130 basis points year-over-year and up 120 basis points sequentially. Adjusted EBITDA was $12.3m or 6.3% of revenue, as compared with $6.6m or 3.5% of revenue in the prior year. Excluding the results of the education seminars business that was divested August 31, 2015, revenue would have been $192.6m, an increase of 5% year-over-year, and Adjusted EBITDA would have been $12.9m, or 6.7% of revenue. Net income attributable to common shareholders was $5.0 million, or $0.16 per diluted share, compared to a net loss of $7.6m or $0.24 per diluted share in the prior year. Adjusted EPS was $0.23 compared to $0.07 in the prior year and $0.10 in the prior quarter.
For the nine months ended September 30, 2015, consolidated revenue was $574.3m, an increase of 34% year-over-year. On a pro forma basis, year-to-date revenue was up 5% year-over-year. Consolidated gross profit margin was 25.6% for both the current and prior year-to-date periods. Adjusted EBITDA was $26.6m or 4.6% of revenue, as compared with $10.9m or 2.5% of revenue in the prior year. Net income attributable to common shareholders was $10.5m, or $0.33 per diluted share, compared to a net loss of $11.6m or $0.37 per diluted share in the prior year. Adjusted EPS was $0.36 compared to $0.06 in the prior year.
Quarterly Business Segment Highlights
Nurse and Allied Staffing
Revenue from Nurse and Allied Staffing increased 6% year-over-year and 3% sequentially. Contribution income in this segment was $16.3 million, up from $12.7 million in the prior year. The year-over-year increase in segment revenue and contribution income was due to both organic growth and improved gross margins. Average field FTEs increased to 6,646 from 6,407 in the prior year. Revenue per FTE per day was $257 compared to $251 in the prior year, reflecting higher average bill rates.
Revenue from Physician Staffing decreased 3% year-over-year and increased 4% sequentially. Contribution income was $3.2 million, up from $1.5 million in the prior year due to improved gross margins and lower SG&A expenses. Compared to the prior year, total days filled decreased to 20,543 from 22,100 while revenue per day filled increased to $1,505 from $1,432.
Other Human Capital Management Services
Revenue from Other Human Capital Management Services was $7.4 million, a decrease of 19% year-over-year and 27% sequentially. The year-over-year decrease was due to one less month of revenue from the education seminars business, partially offset by growth in the search business which was up 30% year-over-year. Contribution income was $0.4 million, compared to a loss of $0.1 million in the prior year.
Cash Flow and Balance Sheet Highlights
Cash flow provided by operating activities was $12.9 million for the quarter and $18.9 million year-to-date. At September 30, 2015, the Company had $24.6 million in cash and cash equivalents, including the net cash proceeds of $7.2 million from the sale of Cross Country Education, and $55.0 million of subordinated debt at par. The Company had $47.2 million of availability under the senior credit facility at September 30, 2015.