Cross Country Healthcare, Inc. has released its financial results for its fourth quarter and full year ended 31st December 2018.
Fourth quarter consolidated revenue was $200.9m, a decrease of 9% year-over-year and up slightly sequentially. Consolidated gross profit margin was 25.2%, down 130 basis points year-over-year and 50 basis points sequentially. Net loss attributable to common shareholders was $19.7m compared to net income of $28.0m in the prior year and a net loss of $0.4m in the prior quarter. Diluted EPS was a loss of $0.55 per share compared to income of $0.77 per share in the prior year and a loss of $0.01 per share in the prior quarter. Adjusted EBITDA was $6.2m or 3.1% of revenue, as compared with $12.3m or 5.6% of revenue in the prior year, and $8.1m or 4.0% of revenue in the prior quarter. Adjusted EPS was $0.00 in the current quarter as compared to income of $0.17 in the prior year and $0.02 in the prior quarter.
For the year ended 31st December 2018, consolidated revenue was $816.5m, a decrease of 6% year-over-year, 9% on a pro forma basis. Consolidated gross profit margin was 25.7%, down 70 basis points year-over-year. Net loss attributable to common shareholders was $17.0m, or a loss of $0.48 per diluted share, compared to net income of $37.5m, or income of $1.01 per diluted share, in the prior year. Adjusted EBITDA was $31.4m or 3.8% of revenue, as compared with $43.4m or 5.0% of revenue in the prior year. Adjusted EPS was $0.12 compared to $0.61 in the prior year.
Fourth quarter and full year results for 2018 and 2017 were impacted by physician staffing pretax noncash impairment charges of $22.4m and $14.4m, as well as noncash income tax benefits of $6.0m and $36.8m, respectively. 2018 and 2017 included income tax benefits related to the impairment charges. 2017 also included the reversal of substantially all of the Company's valuation allowances on its deferred tax assets, as well as income tax expense attributable to the re-measurement of deferred tax assets under the 2017 Tax Cuts and Jobs Act.
Kevin C. Clark, president and chief executive officer, said, "I am thrilled to be back with the company I co-founded to see it through the next phase in its evolution.
“2018 was a challenging year on several fronts, with softer demand in the first half and unexpected higher costs, but I am looking to the future.
“Our primary focus is to drive operational improvements to return the company to growth and improved profitability. Achieving this goal will require a laser focus on productivity and technology across our entire business.”
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