Cross Country Healthcare GP up 27.5% YoY in Q2 2016
Cross Country Healthcare has announced financial results for its second quarter ended 30th June 2016.
The US healthcare recruitment company's revenue was $199.4m compared to $192.6m, up 4% year-over-year. Adjusted EBITDA was $11.1 million, or 5.5% of revenue versus $8.2 million, or 4.2% of revenue in the prior year, up 35% year-over-year
Adjusted EPS was $0.16 compared to $0.10 in the prior year. GAAP net loss was $17.2 million, or $0.54 per diluted share, including non-cash impairment charges and a loss on derivative liability. Cash flow from operations was $10.3 million compared to $5.7 million in the prior year
"For the second quarter this year, we again exceeded guidance for Gross Profit and Adjusted EBITDA Margins driven by strong pricing and leverage from revenue growth," said William J. Grubbs (pictured), president and chief executive. "The market remains robust and supports our initiatives aimed at accelerating revenue growth as we progress throughout the year."
Second quarter consolidated revenue was $199.4m, an increase of 4% year-over-year and 1% sequentially. The Company's consolidated gross profit margin was 27.5%, up 240 basis points year-over-year and up 150 basis points sequentially. Adjusted EBITDA was $11.1 million or 5.5% of revenue, as compared with $8.2 million or 4.2% of revenue in the prior year. Net loss attributable to common shareholders was $17.2 million compared to net income of $2.6 million in the prior year, primarily due to impairment charges related to Physician Staffing, loss on derivative liability and loss on extinguishment of debt. Diluted EPS was a net loss of $0.54 per share compared to net income of $0.08 per share in the prior year. Adjusted EPS was $0.16 compared to $0.10 in the prior year and $0.09 in the prior quarter.
For the six months ended June 30, 2016, consolidated revenue was $396.0 million, an increase of 5% year-over-year. Consolidated gross profit margin was 26.7%, up 150 basis points year-over-year. Adjusted EBITDA was $19.6 million or 4.9% of revenue, as compared with $14.3 million or 3.8% of revenue in the prior year. Net income attributable to common shareholders was $1.8 million, or a net loss of $0.26 per diluted share, compared to net income of $5.5 million, or $0.13 per diluted share, in the prior year. Adjusted EPS was $0.25 compared to $0.12 in the prior year.
Nurse and Allied Staffing
Revenue from Nurse and Allied Staffing was $172.0 million and increased 13% year-over-year and 2% sequentially. Contribution income in this segment was $17.6 million, up from $12.8 million in the prior year. The year-over-year increase in segment revenue and contribution income was due to improved pricing and the impact of the Mediscan acquisition. Average field FTEs increased to 6,884 from 6,607 in the prior year. Revenue per FTE per day was $275 compared to $254 in the prior year, reflecting higher average bill rates.
Revenue from Physician Staffing was $23.9 million and decreased 20% year-over-year and 2% sequentially, entirely due to a decrease in volume. Contribution income was $2.1 million, down from $2.2 million in the prior year. Compared to the prior year, total days filled decreased to 14,480 from 20,282 while revenue per day filled increased to $1,525 from $1,468 due to improved pricing.
Other Human Capital Management Services
Revenue from Other Human Capital Management Services was $3.5 million, a decrease of 66% year-over-year and an increase of 3% sequentially. The year-over-year decrease was primarily the result of the divestiture of the education seminars business in August 2015. Revenue from our physician and executive search business decreased 20%, compared to the prior year. Contribution income was $0.1 million, compared to $0.7 million in the prior year.