[August 05, 2015] |
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Cross Country Healthcare Announces Second Quarter 2015 Financial Results
Cross Country Healthcare, Inc. (Nasdaq: CCRN) today announced financial
results for the second quarter ended June 30, 2015.
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Revenue was $192.6 million, up 57% year-over-year and 4% on a pro
forma basis
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Adjusted EBITDA was $8.2 million or 4.2% of revenue versus $3.3
million or 2.7% of revenue in the prior year
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Reported diluted earnings per share (EPS) was $0.08; Adjusted EPS
was $0.10
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Third Quarter Guidance: Revenue of $192 million - $197 million and
Adjusted EBITDA margin of 4.2% - 4.7%
Note: Refer to discussion of Non-GAAP financial measures below.
"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 (see
table titled "Reconciliation of Non-GAAP Financial Measures"). 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.
Quarterly Business Segment Highlights
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.
Cash Flow and Balance Sheet Highlights
Cash flow provided by operating activities was $5.7 million for the
quarter. At June 30, 2015, the Company had $8.7 million in cash and cash
equivalents and $58.0 million of outstanding debt, comprised of $3.0
million outstanding under our senior secured asset-based revolving
credit facility (senior credit facility) and $55.0 million of
subordinated debt at par. The Company had $46.0 million of availability
under the senior credit facility at June 30, 2015.
Outlook for Third Quarter 2015
The Company also provided guidance for the third quarter of 2015:
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Range
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Year-over-Year Change
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Revenue
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$192 million - $197 million
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2% - 4%
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Gross profit margin
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25.2% - 25.7%
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18 - 68 bps
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Adjusted EBITDA margin
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4.2% - 4.7%
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72 - 122 bps
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Adjusted EPS
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$0.10 - $0.12
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$0.03 - $0.05
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The estimates above are based on current management expectations and, as
such, are forward-looking and actual results may differ materially.
These ranges do not include the potential impact of any future
divestitures, mergers, acquisitions or other business combinations, any
impairment charges or valuation allowances, or any material legal or
restructuring charges. Adjusted net income attributable to common
shareholders per diluted share assumes an adjusted weighted average
share count consistent with June 30, 2015.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on Thursday,
August 6, 2015, at 9:00 A.M. Eastern Time to discuss its second quarter
2015 financial results. This call will be webcast live and can be
accessed at the Company's website at www.crosscountryhealthcare.com
or by dialing 800-857-6331 from anywhere in the U.S. or by dialing
517-623-4781 from non-U.S. locations - Passcode: Cross Country. A replay
of the webcast will be available from August 6th through August 20th at
the Company's website and a replay of the conference call will be
available by telephone by calling 800-395-7443 from anywhere in the U.S.
or 203-369-3271 from non-U.S. locations - Passcode: 2015.
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, Inc., headquartered in Boca Raton, Florida, is
a national leader in providing leading-edge healthcare workforce
solutions. Our solutions are geared towards assisting our clients solve
labor cost issues while maintaining high quality outcomes. With more
than 30 years of experience, we are dedicated to placing highly
qualified nurses and physicians as well as allied health, advanced
practice, clinical research, and case management professionals. We
provide both retained and contingent placement services for physicians,
as well as retained search services for healthcare executives. We have
more than 6,000 active contracts with a broad range of clients,
including acute care hospitals, physician practice groups, nursing
facilities, rehabilitation and sports medicine clinics, government
facilities, as well as nonclinical settings such as homecare and
schools. Through our national staffing teams and network of more than 70
branch office locations, we are able to place clinicians for travel and
per diem assignments, local short-term contracts and permanent
positions. We are a market leader in providing flexible workforce
management solutions, which include managed services programs (MSP),
workforce assessments, internal resource pool consulting and
development, electronic medical record (EMR) transition staffing and
recruitment process outsourcing.
Copies of this and other news releases as well as additional information
about Cross Country Healthcare can be obtained online at www.crosscountryhealthcare.com.
Shareholders and prospective investors can also register to
automatically receive the Company's press releases, SEC filings and
other notices by e-mail.
NON-GAAP FINANCIAL MEASURES
This press release and accompanying financial statement tables reference
non-GAAP financial measures. Such non-GAAP financial measures are
provided as additional information and should not be considered
substitutes for, or superior to, financial measures calculated in
accordance with U.S. GAAP. Such non-GAAP financial measures are provided
for consistency and comparability to prior year results; furthermore,
management believes they are useful to investors when evaluating the
Company's performance as they exclude certain items that management
believes are not indicative of the Company's operating performance. Pro
forma measures are adjusted to include the results of our acquisitions
as if they were acquired in the beginning of the periods mentioned. Such
non-GAAP financial measures may differ materially from the non-GAAP
financial measures used by other companies. The financial statement
tables that accompany this press release include a reconciliation of
each non-GAAP financial measure to the most directly comparable U.S.
GAAP financial measure and a more detailed discussion of each financial
measure; as such, the financial statement tables should be read in
conjunction with the presentation of these non-GAAP financial measures.
FORWARD LOOKING STATEMENT
In addition to historical information, this press release contains
statements relating to our future results (including certain projections
and business trends) that are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and are subject to the "safe harbor" created by those
sections. Forward-looking statements consist of statements that are
predictive in nature, depend upon or refer to future events. Words such
as "expects", "anticipates", "intends", "plans", "believes",
"estimates", "suggests", "appears", "seeks", "will", and variations of
such words and similar expressions are intended to identify
forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause our actual
results and performance to be materially different from any future
results or performance expressed or implied by these forward-looking
statements. These factors include, but are not limited to, the
following: our ability to attract and retain qualified nurses,
physicians and other healthcare personnel, costs and availability of
short-term housing for our travel healthcare professionals, demand for
the healthcare services we provide, both nationally and in the regions
in which we operate, the functioning of our information systems, the
effect of cyber security risks and cyber incidents on our business, the
effect of existing or future government regulation and federal and state
legislative and enforcement initiatives on our business, our clients'
ability to pay us for our services, our ability to successfully
implement our acquisition and development strategies, including our
ability to successfully integrate acquired businesses and realize
synergies from such acquisitions, the effect of liabilities and other
claims asserted against us, the effect of competition in the markets we
serve, our ability to successfully defend the Company, its subsidiaries,
and its officers and directors on the merits of any lawsuit or determine
its potential liability, if any, and other factors set forth in Item 1A.
"Risk Factors" in the Company's Annual Report on Form 10-K for the year
ended December 31, 2014, and our other Securities and Exchange
Commission filings made prior to the date hereof.
Although we believe that these statements are based upon reasonable
assumptions, we cannot guarantee future results and readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect management's opinions only as of the date of
this press release. There can be no assurance that (i) we have correctly
measured or identified all of the factors affecting our business or the
extent of these factors' likely impact, (ii) the available information
with respect to these factors on which such analysis is based is
complete or accurate, (iii) such analysis is correct or (iv) our
strategy, which is based in part on this analysis, will be successful.
The Company undertakes no obligation to update or revise forward-looking
statements. All references to "we", "us", "our", or "Cross Country" in
this press release mean Cross Country Healthcare, Inc. and its
subsidiaries.
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Cross Country Healthcare, Inc.
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Consolidated Statements of Operations
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(Unaudited, amounts in thousands, except per share data)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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March 31,
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June 30,
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June 30,
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2015
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2014
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2015
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2015
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2014
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Revenue from services
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$
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192,617
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$
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122,656
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$
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185,964
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$
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378,581
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$
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240,747
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Operating expenses:
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Direct operating expenses
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144,254
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90,220
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138,927
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283,181
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177,861
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Selling, general and administrative expenses
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40,891
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29,167
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41,166
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82,057
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58,622
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Bad debt expense
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131
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32
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91
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222
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464
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Depreciation
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989
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817
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960
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1,949
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1,791
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Amortization
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983
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784
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982
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1,965
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1,569
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Acquisition and integration costs (a)
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40
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2,747
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118
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158
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3,042
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Restructuring costs
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1,007
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755
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-
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1,007
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755
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Total operating expenses
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188,295
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124,522
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182,244
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370,539
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244,104
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Income (loss) from operations
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4,322
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(1,866
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)
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3,720
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8,042
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(3,357
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)
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Other expenses (income):
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Interest expense
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1,772
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289
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1,737
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3,509
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544
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Gain on derivative liability
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(362
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-
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(2,147
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(2,509
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-
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Other expense (income), net
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27
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20
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43
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70
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128
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Income (loss) before income taxes
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2,885
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(2,175
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)
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4,087
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6,972
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(4,029
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)
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Income tax expense (benefit)
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205
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1,006
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1,037
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1,242
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(65
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)
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Consolidated net income (loss)
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2,680
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(3,181
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3,050
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5,730
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(3,964
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Less: Net income attributable to noncontrolling interest in
subsidiary
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107
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-
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116
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223
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-
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Net income (loss) attributable to common shareholders
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$
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2,573
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$
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(3,181
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)
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$
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2,934
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$
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5,507
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$
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(3,964
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)
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Net income (loss) per share attributable to common shareholders -
Basic
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$
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0.08
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$
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(0.10
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$
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0.09
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$
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0.18
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$
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(0.13
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)
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Net income (loss) per share attributable to common shareholders -
Diluted
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$
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0.08
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$
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(0.10
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)
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$
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0.05
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|
|
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$
|
0.13
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$
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(0.13
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Weighted average common shares outstanding:
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Basic
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31,398
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31,151
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31,294
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31,346
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31,125
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Diluted (b)
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32,040
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31,151
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35,454
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|
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35,508
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|
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31,125
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Cross Country Healthcare, Inc.
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Reconciliation of Non-GAAP Financial Measure
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(Unaudited, amounts in thousands)
|
|
|
|
Three Months Ended
|
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Six Months Ended
|
|
|
June 30,
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June 30,
|
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March 31,
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June 30,
|
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June 30,
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2015
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|
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2014
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2015
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2015
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2014
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Adjusted EBITDA (c):
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Consolidated net income (loss) attributable to common shareholders
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$
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2,573
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$
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(3,181
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)
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$
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2,934
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$
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5,507
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$
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(3,964
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)
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Depreciation
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989
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817
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|
960
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1,949
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|
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1,791
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Amortization
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983
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|
784
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|
982
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|
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1,965
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|
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1,569
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Interest expense
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1,772
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289
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1,737
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3,509
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|
544
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Income tax expense (benefit)
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205
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1,006
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|
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1,037
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1,242
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(65
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)
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Acquisition and integration costs (a)
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40
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2,747
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|
|
118
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|
|
158
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|
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3,042
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Restructuring costs
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1,007
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|
|
|
755
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-
|
|
|
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1,007
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|
|
755
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Gain on derivative liability
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(362
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)
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-
|
|
|
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(2,147
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)
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|
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(2,509
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)
|
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-
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Other expense (income), net
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27
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|
|
20
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|
|
|
43
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|
|
70
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|
|
128
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|
Equity compensation
|
|
840
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|
|
|
90
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|
|
|
376
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|
|
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1,216
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|
|
542
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|
Net income attributable to noncontrolling interest in subsidiary
|
|
107
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|
|
|
-
|
|
|
|
116
|
|
|
|
223
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|
|
-
|
|
Adjusted EBITDA
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$
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8,181
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|
|
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$
|
3,327
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|
|
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$
|
6,156
|
|
|
|
$
|
14,337
|
|
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$
|
4,342
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|
|
|
|
|
|
|
|
|
|
|
|
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Adjusted EPS: (d)
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|
|
|
|
|
|
|
|
|
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Reported diluted EPS
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$
|
0.08
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|
|
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$
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(0.10
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)
|
|
|
$
|
0.05
|
|
|
|
$
|
0.13
|
|
|
$
|
(0.13
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)
|
Acquisition and integration costs (a)
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|
-
|
|
|
|
0.05
|
|
|
|
-
|
|
|
|
-
|
|
|
0.06
|
|
Restructuring costs
|
|
0.02
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.02
|
|
|
0.01
|
|
Gain on derivative liability
|
|
(0.01
|
)
|
|
|
-
|
|
|
|
(0.04
|
)
|
|
|
(0.05
|
)
|
|
-
|
|
Valuation allowance on adjusted items
|
|
0.01
|
|
|
|
0.04
|
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
0.05
|
|
Adjustment for change in dilutive shares (d)
|
|
-
|
|
|
|
0.01
|
|
|
|
0.04
|
|
|
|
0.04
|
|
|
-
|
|
Adjusted EPS (d)
|
|
$
|
0.10
|
|
|
|
$
|
0.01
|
|
|
|
$
|
0.03
|
|
|
|
$
|
0.12
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
32,040
|
|
|
|
31,151
|
|
|
|
35,454
|
|
|
|
35,508
|
|
|
31,125
|
|
Adjustment to diluted shares (d)
|
|
-
|
|
|
|
3,734
|
|
|
|
(3,521
|
)
|
|
|
(3,521
|
)
|
|
-
|
|
Adjusted weighted average common shares - diluted
|
|
32,040
|
|
|
|
34,885
|
|
|
|
31,933
|
|
|
|
31,987
|
|
|
31,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross Country Healthcare, Inc.
|
Consolidated Balance Sheets
|
(Unaudited, amounts in thousands)
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
|
|
8,679
|
|
|
|
$
|
4,995
|
|
Accounts receivable, net
|
|
120,621
|
|
|
|
113,129
|
|
Income taxes receivable
|
|
207
|
|
|
|
307
|
|
Prepaid expenses
|
|
6,697
|
|
|
|
6,073
|
|
Insurance recovery receivable
|
|
4,196
|
|
|
|
5,624
|
|
Other current assets
|
|
1,020
|
|
|
|
1,055
|
|
Total current assets
|
|
141,420
|
|
|
|
131,183
|
|
Property and equipment, net
|
|
11,197
|
|
|
|
12,133
|
|
Trade names, net
|
|
38,201
|
|
|
|
38,201
|
|
Goodwill, net
|
|
90,647
|
|
|
|
90,647
|
|
Other identifiable intangible assets, net
|
|
31,858
|
|
|
|
33,823
|
|
Debt issuance costs, net
|
|
1,068
|
|
|
|
1,257
|
|
Other non-current assets
|
|
17,263
|
|
|
|
17,889
|
|
Total assets
|
|
$
|
|
|
331,654
|
|
|
|
$
|
325,133
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
|
|
26,301
|
|
|
|
$
|
27,314
|
|
Accrued employee compensation and benefits
|
|
34,251
|
|
|
|
28,731
|
|
Current portion of long-term debt and capital lease obligations
|
|
3,104
|
|
|
|
3,607
|
|
Sales tax payable
|
|
2,797
|
|
|
|
2,573
|
|
Deferred purchase price
|
|
2,207
|
|
|
|
-
|
|
Deferred tax liabilities
|
|
1,740
|
|
|
|
1,981
|
|
Other current liabilities
|
|
2,760
|
|
|
|
2,790
|
|
Total current liabilities
|
|
73,160
|
|
|
|
66,996
|
|
Long-term debt and capital lease obligations
|
|
68,655
|
|
|
|
70,467
|
|
Non-current deferred tax liabilities
|
|
19,692
|
|
|
|
18,038
|
|
Long-term accrued claims
|
|
28,749
|
|
|
|
32,068
|
|
Long-term deferred purchase price
|
|
-
|
|
|
|
2,333
|
|
Other long-term liabilities
|
|
4,850
|
|
|
|
4,899
|
|
Total liabilities
|
|
195,106
|
|
|
|
194,801
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
3
|
|
|
|
3
|
|
Additional paid-in capital
|
|
248,218
|
|
|
|
247,467
|
|
Accumulated other comprehensive loss
|
|
(1,136
|
)
|
|
|
(1,118
|
)
|
Accumulated deficit
|
|
(110,967
|
)
|
|
|
(116,474
|
)
|
Total Cross Country Healthcare, Inc. stockholders' equity
|
|
136,118
|
|
|
|
129,878
|
|
Noncontrolling interest
|
|
430
|
|
|
|
454
|
|
Total stockholders' equity
|
|
136,548
|
|
|
|
130,332
|
|
Total liabilities and stockholders' equity
|
|
$
|
|
|
331,654
|
|
|
|
$
|
325,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross Country Healthcare, Inc.
|
Segment Data (e)
|
(Unaudited, amounts in thousands)
|
|
|
|
Three Months Ended
|
|
Year-over- Year
|
|
Sequential
|
|
|
June 30,
|
|
% of
|
|
June 30,
|
|
% of
|
|
March 31,
|
|
% of
|
|
% change
|
|
% change
|
|
|
2015
|
|
Total
|
|
2014
|
|
Total
|
|
2015
|
|
Total
|
|
Fav (Unfav)
|
|
Fav (Unfav)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f)
|
|
$
|
152,677
|
|
|
79%
|
|
$
|
83,233
|
|
|
68%
|
|
$
|
149,112
|
|
|
80%
|
|
83%
|
|
2%
|
Physician Staffing (f)
|
|
29,794
|
|
|
16%
|
|
30,232
|
|
|
25%
|
|
27,347
|
|
|
15%
|
|
(1)%
|
|
9%
|
Other Human Capital Management Services
|
|
10,146
|
|
|
5%
|
|
9,191
|
|
|
7%
|
|
9,505
|
|
|
5%
|
|
10%
|
|
7%
|
|
|
$
|
192,617
|
|
|
100%
|
|
$
|
122,656
|
|
|
100%
|
|
$
|
185,964
|
|
|
100%
|
|
57%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution income: (g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f)
|
|
$
|
12,515
|
|
|
|
|
$
|
6,708
|
|
|
|
|
$
|
10,602
|
|
|
|
|
87%
|
|
18%
|
Physician Staffing (f)
|
|
2,228
|
|
|
|
|
1,818
|
|
|
|
|
2,116
|
|
|
|
|
23%
|
|
5%
|
Other Human Capital Management Services
|
|
747
|
|
|
|
|
(232
|
)
|
|
|
|
602
|
|
|
|
|
422%
|
|
24%
|
|
|
15,490
|
|
|
|
|
8,294
|
|
|
|
|
13,320
|
|
|
|
|
87%
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate overhead
|
|
8,149
|
|
|
|
|
5,057
|
|
|
|
|
7,540
|
|
|
|
|
(61)%
|
|
(8)%
|
Depreciation
|
|
989
|
|
|
|
|
817
|
|
|
|
|
960
|
|
|
|
|
(21)%
|
|
(3)%
|
Amortization
|
|
983
|
|
|
|
|
784
|
|
|
|
|
982
|
|
|
|
|
(25)%
|
|
-%
|
Acquisition and integration costs (a)
|
|
40
|
|
|
|
|
2,747
|
|
|
|
|
118
|
|
|
|
|
99%
|
|
66%
|
Restructuring costs
|
|
1,007
|
|
|
|
|
755
|
|
|
|
|
-
|
|
|
|
|
(33)%
|
|
(100)%
|
Income (loss) from operations
|
|
$
|
4,322
|
|
|
|
|
$
|
(1,866
|
)
|
|
|
|
$
|
3,720
|
|
|
|
|
332%
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
Year-over- Year
|
|
|
|
|
June 30,
|
|
% of
|
|
June 30,
|
|
% of
|
|
|
|
|
|
% change
|
|
|
|
|
2015
|
|
Total
|
|
2014
|
|
Total
|
|
|
|
|
|
Fav (Unfav)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f)
|
|
$
|
301,789
|
|
|
80%
|
|
$
|
163,963
|
|
|
68%
|
|
|
|
|
|
84%
|
|
|
Physician Staffing (f)
|
|
57,141
|
|
|
15%
|
|
58,831
|
|
|
24%
|
|
|
|
|
|
(3)%
|
|
|
Other Human Capital Management Services
|
|
19,651
|
|
|
5%
|
|
17,953
|
|
|
8%
|
|
|
|
|
|
9%
|
|
|
|
|
$
|
378,581
|
|
|
100%
|
|
$
|
240,747
|
|
|
100%
|
|
|
|
|
|
57%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution income: (g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f)
|
|
$
|
23,117
|
|
|
|
|
$
|
12,697
|
|
|
|
|
|
|
|
|
82%
|
|
|
Physician Staffing (f)
|
|
4,344
|
|
|
|
|
2,549
|
|
|
|
|
|
|
|
|
70%
|
|
|
Other Human Capital Management Services
|
|
1,349
|
|
|
|
|
(66
|
)
|
|
|
|
|
|
|
|
NM
|
|
|
|
|
28,810
|
|
|
|
|
15,180
|
|
|
|
|
|
|
|
|
90%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate overhead
|
|
15,689
|
|
|
|
|
11,380
|
|
|
|
|
|
|
|
|
(38)%
|
|
|
Depreciation
|
|
1,949
|
|
|
|
|
1,791
|
|
|
|
|
|
|
|
|
(9)%
|
|
|
Amortization
|
|
1,965
|
|
|
|
|
1,569
|
|
|
|
|
|
|
|
|
(25)%
|
|
|
Acquisition and integration costs (a)
|
|
158
|
|
|
|
|
3,042
|
|
|
|
|
|
|
|
|
95%
|
|
|
Restructuring costs
|
|
1,007
|
|
|
|
|
755
|
|
|
|
|
|
|
|
|
(33)%
|
|
|
Income (loss) from operations
|
|
$
|
8,042
|
|
|
|
|
$
|
(3,357
|
)
|
|
|
|
|
|
|
|
340%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross Country Healthcare, Inc.
|
Other Financial Data
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities (in thousands)
|
|
$
|
5,727
|
|
|
|
$
|
3,703
|
|
|
|
$
|
270
|
|
|
|
$
|
5,997
|
|
|
|
$
|
(5,531
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTEs (f) (h)
|
|
6,607
|
|
|
|
3,190
|
|
|
|
6,454
|
|
|
|
6,531
|
|
|
|
3,155
|
|
Average Nurse and Allied Staffing revenue per FTE per day (f) (i)
|
|
$
|
254
|
|
|
|
$
|
287
|
|
|
|
$
|
257
|
|
|
|
$
|
255
|
|
|
|
$
|
287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physician Staffing statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days filled (f) (j)
|
|
18,339
|
|
|
|
20,377
|
|
|
|
17,413
|
|
|
|
35,752
|
|
|
|
40,500
|
|
Revenue per day filled (f) (k)
|
|
$
|
1,623
|
|
|
|
$
|
1,468
|
|
|
|
$
|
1,587
|
|
|
|
$
|
1,606
|
|
|
|
$
|
1,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
On June 30, 2014, the Company acquired substantially all of the
operating assets and certain liabilities of MSN. For the three and
six months ended June 30, 2015, $0.1 million and $0.2 million,
respectively, of acquisition and integration costs were related to
this acquisition. For the three and six months ended June 30, 2014,
$2.4 million of acquisition and integration costs were related to
this acquisition. On December 2, 2013, the Company acquired the
operating assets of On Assignment, Inc.'s Allied Healthcare staffing
division. For the three and six months ended June 30, 2014, $0.3
million and $0.6 million, respectively, of acquisition and
integration costs were related to this acquisition. The results of
MSN have been included in the Company's consolidated statements of
operations since its date of acquisition.
|
(b)
|
|
When applying the if-converted method to our Convertible Notes for
the three months ended March 31, 2015 and six months ended June 30,
2015, 3,521,126 shares related to the Convertible Notes, issued in
June 2014 in conjunction with the MSN acquisition, are included in
diluted weighted average shares because their effect was dilutive.
For the three months ended June 30, 2015 and 2014, and the six
months ended June 30, 2014, the effect of the Convertible Notes was
anti-dilutive.
|
(c)
|
|
Adjusted EBITDA, a non-GAAP (Generally Accepted Accounting
Principles) financial measure, is defined as net income (loss)
attributable to common shareholders before depreciation and
amortization, interest expense, income tax expense (benefit),
acquisition and integration costs, restructuring costs, legal
settlement charge, (gain) loss on derivative liability, impairment
charges, other expense (income), net, equity compensation, and net
income attributable to noncontrolling interest in subsidiary.
Adjusted EBITDA should not be considered a measure of financial
performance under GAAP. Management presents Adjusted EBITDA because
it believes that Adjusted EBITDA is a useful supplement to net
income (loss) attributable to common shareholders as an indicator of
operating performance. Management uses Adjusted EBITDA as one
performance measure in its annual cash incentive program for certain
members of its management team. In addition, management monitors
Adjusted EBITDA for planning purposes. Adjusted EBITDA, as defined,
closely matches the operating measure typically used in the
Company's credit facilities in calculating various ratios.
Management believes Adjusted EBITDA, as defined, is useful to
investors when evaluating the Company's performance as it excludes
certain items that management believes are not indicative of the
Company's operating performance. Adjusted EBITDA Margin is
calculated by dividing Adjusted EBITDA by the Company's consolidated
revenue.
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(d)
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Adjusted EPS, a non-GAAP financial measure, is defined as net
income (loss) attributable to common shareholders per diluted
share (reported EPS) before the diluted EPS impact of acquisition
and integration costs, restructuring costs, and gain on derivative
liability. Adjusted EPS should not be considered a measure of
financial performance under GAAP. Management presents Adjusted EPS
because it believes that Adjusted EPS is a useful supplement to
its reported EPS as an indicator of operating performance.
Management believes it provides a more useful comparison of the
Company's underlying business performance from period to period
and is more representative of the earnings capacity of the
Company. Adjustments to reported diluted EPS in the three months
ended March 31, 2015 and six months ended June 30, 2015 had the
effect of changing the impact of applying the if-converted method
on our Convertible Notes from being dilutive to being
anti-dilutive. For the three months ended June 30, 2014, the
adjustments to reported diluted EPS had the effect of converting
the net loss to net income. As a result, potentially dilutive
shares of 212,880 that were excluded in the unadjusted per share
calculation have been included in the adjusted weighted average
common shares outstanding - diluted. In addition, the adjustment
had the effect of changing the impact of applying the if-converted
method on our Convertible Notes from being anti-dilutive to
dilutive.
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(e)
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Segment data provided is in accordance with the Segment Reporting
Topic of the FASB ASC.
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(f)
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Effective January 1, 2015, the portion of MDA's allied health
staffing business with attributes similar to the Nurse and Allied
Staffing business is being reported in the Nurse and Allied Staffing
segment. Prior period amounts have been reclassified to conform to
the current period presentation.
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(g)
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Contribution income is defined as income (loss) from operations
before depreciation and amortization, acquisition and integration
costs, restructuring costs, impairment charges, and corporate
expenses not specifically identified to a reporting segment.
Contribution income is a financial measure used by management when
assessing segment performance.
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(h)
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FTEs represent the average number of Nurse and Allied Staffing
contract personnel on a full-time equivalent basis.
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(i)
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Average revenue per FTE per day is calculated by dividing the Nurse
and Allied Staffing revenue by the number of days worked in the
respective periods. Nurse and Allied Staffing revenue also includes
revenue from permanent placement of nurses.
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(j)
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Days filled is calculated by dividing the total hours filled during
the period by 8 hours and excludes accrued days filled.
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(k)
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Revenue per day filled is calculated by dividing the actual revenue
invoiced by Physician Staffing by days filled for the period
presented and it excludes permanent placement and accrued revenue.
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