[November 05, 2014] |
|
Cross Country Healthcare Announces Third Quarter 2014 Financial Results
BOCA RATON, Fla. --(Business Wire)--
Cross Country Healthcare, Inc. (NASDAQ: CCRN) today announced financial
results for the third quarter ended September 30, 2014. The third
quarter includes the results of the Medical Staffing Network ("MSN")
acquisition that closed on June 30, 2014.
-
Revenue was $188.9 million up 75% year-over-year and 54%
sequentially
-
Adjusted EBITDA was $6.6 million or 3.5% of revenue
-
Cash Flow from Operations was $2.5 million
-
Fourth Quarter Guidance: Revenue of $187 million - $192 million and
Adjusted EBITDA margin of 3.5% - 4.0%
"Our strong results this quarter reflect the excellent progress we have
made driving revenue growth and integrating our recent acquisition of
MSN. I am particularly pleased with the pro forma year-over-year growth
in all three service lines of Nurse and Allied, led by travel nursing,
which was up 22%," said William J. Grubbs, president and Chief Executive
Officer. "We expect pro forma year-over-year consolidated revenue growth
of 8-11% and improved profitability in the fourth quarter led by
increasing demand for our Nurse and Allied services, which accelerated
throughout the third quarter."
Third quarter consolidated revenue was $188.9 million, an increase of
75% from the same quarter last year, and 54% sequentially. On a pro
forma basis, revenue was up 7% from the prior year and 2% sequentially.
The Company's consolidated gross profit margin was 25.0%, down 110 basis
points from the same quarter last year and 140 basis points
sequentially. Adjusted EBITDA (see table titled "Reconciliation of
Non-GAAP Financial Measures") was $6.6 million or 3.5% of revenue, as
compared with $2.9 million or 2.7% of revenue in the prior year. Loss
from continuing operations was $7.5 million or $0.24 per diluted share
primarily due to a combination of a $7.3 million non-cash change in the
fair value of convertible note derivative liability and $2.4 million of
acquisition and integration costs, representing a loss of $0.31 per
diluted share. This compared with income from continuing operations of
$1.5 million or $0.05 per diluted share in the prior year quarter. Cash
flow from operations was $2.5 million during the third quarter of 2014,
compared with $7.2 million in the third quarter of 2013. The
year-over-year decline in cash flow from operations was primarily
attributable to an increase in receivables due to timing of receipts and
the impact of sequential growth throughout the quarter.
For the nine months ended September 30, 2014, consolidated revenue was
$429.7 million, an increase of 31% from the same period last year.
Consolidated gross profit margin was 25.6%, down 20 basis points from
the same period last year. Adjusted EBITDA was $10.9 million or 2.5% of
revenue, as compared with $6.6 million or 2.0% of revenue in the prior
year. Loss from continuing operations was $11.4 million or $0.37 per
diluted share, as compared with a loss of $1.3 million or $0.04 per
diluted share in the same period last year. Year-to-date loss from
continuing operations reflects the $7.3 million non-cash change in the
fair value of the convertible note derivative liability, $5.4 million of
acquisition and integration costs and $0.8 million of restructuring
charges, representing a loss of $0.43 per diluted share, for the
year-to-date period ended September 30, 2014.
Quarterly Business Segment Highlights
Nurse & Allied Revenue from the nurse and allied
staffing business segment increased 125% from the same quarter last
year, and 79% sequentially. On a pro forma basis revenue was up 12%
year-over-year and 3% sequentially. Contribution income in this segment
was $12.6 million, up from $5.0 million in the same quarter last year.
The year-over-year increase in segment revenue and contribution income
came from a combination of robust organic revenue growth and the impact
of acquisitions. Average field FTEs increased to 6,396 from 2,241 in the
same quarter last year. Revenue per FTE per day was $251 compared to
$318 in the same quarter last year reflecting the impact of lower
average bill rates of the acquired businesses.
Physician Staffing Revenue from the physician staffing
business decreased 3% year-over-year and increased 5% sequentially. The
year-over-year decrease is primarily due to lower volume, partly offset
by the impact of the MSN acquisition. On a sequential basis, the
increase is due entirely to the impact of the acquisition of MSN.
Contribution income was $1.5 million, down from $2.2 million in the same
quarter last year. Total days filled decreased to 22,742 from 24,011 in
the same quarter last year. Revenue per day filled decreased to $1,428
from $1,461 in the same quarter last year, reflecting the impact of
lower revenue per day filled of the acquired business.
Other Human Capital Management Services Revenue from the
other human capital management services business segment was $9.1
million, essentially flat from the same quarter last year and down 1%
sequentially. Contribution income was negative $0.1 million, compared to
a positive $0.1 million in the same quarter last year.
Cash Flow and Balance Sheet Highlights
Cash flow provided by operating activities was $2.5 million for the
quarter. At September 30, 2014, the Company had $7.7 million in cash and
cash equivalents and $58.1 million of debt, excluding the non-cash
change in the fair value of convertible note derivative liability of
$7.3 million. The Company had $39.7 million of availability under its
credit facility at September 30, 2014.
Outlook for Fourth Quarter 2014
The Company also provided its guidance for the fourth quarter of 2014:
|
|
|
|
Range
|
|
Year-over-Year
|
|
|
|
Change
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
$187 million - $192 million
|
|
71 - 76%
|
|
|
|
|
|
|
|
Gross Profit Margin
|
|
|
|
25.7% - 26.2%
|
|
(50) - 0bps
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
|
|
|
3.5% - 4.0%
|
|
190-240 bps
|
|
|
|
|
|
|
|
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 mergers,
acquisitions or other business combinations, any impairment charges or
valuation allowances, or any material legal or restructuring charges.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on Thursday,
November 6, 2014, at 9:00 A.M. EST to discuss its third quarter 2014
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. From
November 6th through November 20th, a replay of the webcast will be
available 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: 2014.
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. 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.
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, Inc., headquartered in Boca Raton, Florida, is
a national leader in providing healthcare recruiting, staffing and
workforce management solutions. With more than 30 years of experience,
we are dedicated to placing highly qualified nurses and physicians as
well as allied health, advanced practice 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 4,300 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,
workforce assessments, internal resource pool consulting and
development, electronic medical record transition staffing and
recruitment process outsourcing. In addition, we provide education and
training programs for healthcare professionals through seminars and
e-learning tools.
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.
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, without limitation, 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 nurses and physicians, 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 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, 2013, 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.
|
|
|
|
|
Cross Country Healthcare, Inc.
|
Consolidated Statements of Operations
|
(Unaudited, amounts in thousands, except per share data)
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Revenue from services
|
|
|
$
|
188,944
|
|
|
$
|
108,048
|
|
|
$
|
122,656
|
|
|
$
|
429,691
|
|
|
$
|
329,132
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating expenses
|
|
|
141,667
|
|
|
79,864
|
|
|
90,220
|
|
|
319,528
|
|
|
244,234
|
|
Selling, general and administrative expenses
|
|
|
40,858
|
|
|
25,504
|
|
|
29,167
|
|
|
99,480
|
|
|
79,172
|
|
Bad debt expense
|
|
|
257
|
|
|
215
|
|
|
32
|
|
|
721
|
|
|
769
|
|
Depreciation
|
|
|
1,005
|
|
|
890
|
|
|
817
|
|
|
2,796
|
|
|
2,952
|
|
Amortization
|
|
|
1,011
|
|
|
552
|
|
|
784
|
|
|
2,580
|
|
|
1,684
|
|
Acquisition and integration costs (a)
|
|
|
2,383
|
|
|
-
|
|
|
2,747
|
|
|
5,425
|
|
|
-
|
|
Restructuring costs
|
|
|
-
|
|
|
109
|
|
|
755
|
|
|
755
|
|
|
484
|
|
Legal settlement charge
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
750
|
|
Total operating expenses
|
|
|
187,181
|
|
|
107,134
|
|
|
124,522
|
|
|
431,285
|
|
|
330,045
|
|
Income (loss) from operations
|
|
|
1,763
|
|
|
914
|
|
|
(1,866
|
)
|
|
(1,594
|
)
|
|
(913
|
)
|
Other expenses (income):
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange (gain) loss
|
|
|
(11
|
)
|
|
(53
|
)
|
|
27
|
|
|
63
|
|
|
(154
|
)
|
Interest expense
|
|
|
1,832
|
|
|
190
|
|
|
289
|
|
|
2,376
|
|
|
634
|
|
Change in fair value of convertible note derivative liability
|
|
|
7,308
|
|
|
-
|
|
|
-
|
|
|
7,308
|
|
|
-
|
|
Loss on early extinguishment and modification of debt (b)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1,419
|
|
Other (income) expense, net
|
|
|
(51
|
)
|
|
(32
|
)
|
|
(7
|
)
|
|
3
|
|
|
(83
|
)
|
(Loss) income from continuing operations before income taxes
|
|
|
(7,315
|
)
|
|
809
|
|
|
(2,175
|
)
|
|
(11,344
|
)
|
|
(2,729
|
)
|
Income tax expense (benefit)
|
|
|
169
|
|
|
(644
|
)
|
|
1,006
|
|
|
104
|
|
|
(1,401
|
)
|
(Loss) income from continuing operations
|
|
|
(7,484
|
)
|
|
1,453
|
|
|
(3,181
|
)
|
|
(11,448
|
)
|
|
(1,328
|
)
|
(Loss) income from discontinued operations, net of income taxes (c)
|
|
|
-
|
|
|
(539
|
)
|
|
-
|
|
|
-
|
|
|
1,943
|
|
Net (loss) income
|
|
|
(7,484
|
)
|
|
914
|
|
|
(3,181
|
)
|
|
(11,448
|
)
|
|
615
|
|
Less: Net income attributable to non-controlling interest in
subsidiary
|
|
|
118
|
|
|
-
|
|
|
-
|
|
|
118
|
|
|
-
|
|
Net (loss) income attributable to Cross Country Healthcare, Inc.
|
|
|
$
|
(7,602
|
)
|
|
$
|
914
|
|
|
$
|
(3,181
|
)
|
|
$
|
(11,566
|
)
|
|
$
|
615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share, basic:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
(0.04
|
)
|
Discontinued operations
|
|
|
-
|
|
|
(0.02
|
)
|
|
-
|
|
|
-
|
|
|
0.06
|
|
Net (loss) income attributable to Cross Country Healthcare, Inc.
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share, diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.05
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
(0.04
|
)
|
Discontinued operations
|
|
|
-
|
|
|
(0.02
|
)
|
|
-
|
|
|
-
|
|
|
0.06
|
|
Net (loss) income attributable to Cross Country Healthcare, Inc.
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
31,245
|
|
|
31,085
|
|
|
31,151
|
|
|
31,165
|
|
|
30,984
|
|
Diluted
|
|
|
31,245
|
|
|
31,161
|
|
|
31,151
|
|
|
31,165
|
|
|
30,984
|
|
|
|
|
|
|
|
|
Cross Country Healthcare, Inc.
|
Reconciliation of Non-GAAP Financial Measures
|
Adjusted EBITDA (d)
|
(Unaudited, amounts in thousands)
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
June 30,
|
|
September 30,
|
|
September 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
$
|
1,763
|
|
|
$
|
914
|
|
|
$
|
(1,866
|
)
|
|
$
|
(1,594
|
)
|
|
$
|
(913
|
)
|
Depreciation
|
|
|
1,005
|
|
|
890
|
|
|
817
|
|
|
2,796
|
|
|
2,952
|
|
Amortization
|
|
|
1,011
|
|
|
552
|
|
|
784
|
|
|
2,580
|
|
|
1,684
|
|
Acquisition and integration costs (a)
|
|
|
2,383
|
|
|
-
|
|
|
2,747
|
|
|
5,425
|
|
|
-
|
|
Restructuring costs
|
|
|
-
|
|
|
109
|
|
|
755
|
|
|
755
|
|
|
484
|
|
Legal settlement charge
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
750
|
|
Equity compensation
|
|
|
416
|
|
|
451
|
|
|
90
|
|
|
958
|
|
|
1,635
|
|
Adjusted EBITDA (d)
|
|
|
$
|
6,578
|
|
|
$
|
2,916
|
|
|
$
|
3,327
|
|
|
$
|
10,920
|
|
|
$
|
6,592
|
|
|
|
|
|
|
|
|
|
|
Cross Country Healthcare, Inc.
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
7,732
|
|
|
$
|
8,055
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
108,506
|
|
|
60,750
|
|
|
|
|
|
|
|
Income taxes receivable
|
|
|
792
|
|
|
538
|
|
|
|
|
|
|
|
Prepaid expenses
|
|
|
8,385
|
|
|
6,163
|
|
|
|
|
|
|
|
Insurance recovery receivable
|
|
|
4,611
|
|
|
3,886
|
|
|
|
|
|
|
|
Indemnity escrow receivable
|
|
|
-
|
|
|
3,750
|
|
|
|
|
|
|
|
Other current assets
|
|
|
1,072
|
|
|
793
|
|
|
|
|
|
|
|
Total current assets
|
|
|
131,098
|
|
|
83,935
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
12,350
|
|
|
6,170
|
|
|
|
|
|
|
|
Trade names, net
|
|
|
48,201
|
|
|
42,301
|
|
|
|
|
|
|
|
Goodwill, net
|
|
|
91,109
|
|
|
77,266
|
|
|
|
|
|
|
|
Other identifiable intangible assets, net
|
|
|
34,818
|
|
|
26,198
|
|
|
|
|
|
|
|
Debt issuance costs, net
|
|
|
1,310
|
|
|
464
|
|
|
|
|
|
|
|
Non-current insurance recovery receivable
|
|
|
16,867
|
|
|
10,914
|
|
|
|
|
|
|
|
Non-current security deposits
|
|
|
715
|
|
|
997
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
336,468
|
|
|
$
|
248,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
$
|
19,129
|
|
|
$
|
10,272
|
|
|
|
|
|
|
|
Accrued employee compensation and benefits
|
|
|
34,012
|
|
|
19,148
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
4,607
|
|
|
8,483
|
|
|
|
|
|
|
|
Sales tax payable
|
|
|
2,718
|
|
|
2,404
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
638
|
|
|
535
|
|
|
|
|
|
|
|
Other current liabilities
|
|
|
4,441
|
|
|
4,063
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
65,545
|
|
|
44,905
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
60,751
|
|
|
93
|
|
|
|
|
|
|
|
Non-current deferred tax liabilities
|
|
|
19,535
|
|
|
16,849
|
|
|
|
|
|
|
|
Long-term accrued claims
|
|
|
32,546
|
|
|
18,303
|
|
|
|
|
|
|
|
Long-term deferred purchase price
|
|
|
2,424
|
|
|
-
|
|
|
|
|
|
|
|
Long-term unrecognized tax benefits
|
|
|
1,487
|
|
|
4,013
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
4,147
|
|
|
3,415
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
186,435
|
|
|
87,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
3
|
|
|
3
|
|
|
|
|
|
|
|
Additional paid-in capital
|
|
|
247,038
|
|
|
246,325
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(1,075
|
)
|
|
(970
|
)
|
|
|
|
|
|
|
Accumulated deficit
|
|
|
(96,257
|
)
|
|
(84,691
|
)
|
|
|
|
|
|
|
Total Cross Country Healthcare stockholders' equity
|
|
|
149,709
|
|
|
160,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
|
324
|
|
|
-
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
150,033
|
|
|
160,667
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
336,468
|
|
|
$
|
248,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross Country Healthcare, Inc.
|
Segment Data (e)
|
(Unaudited, amounts in thousands)
|
|
|
|
|
|
Three Months Ended
|
|
YOY
|
|
|
Sequential
|
|
|
|
|
September 30,
|
|
% of
|
|
September 30,
|
|
% of
|
|
June 30,
|
|
% of
|
|
% change
|
|
|
% change
|
|
|
|
|
2014
|
|
Total
|
|
2013
|
|
Total
|
|
2014
|
|
Total
|
|
Fav (Unfav)
|
|
|
Fav (Unfav)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f)
|
|
|
|
$
|
147,518
|
|
|
78%
|
|
$
|
65,580
|
|
|
61%
|
|
$
|
82,616
|
|
|
67%
|
|
125%
|
|
|
79%
|
Physician Staffing (f)
|
|
|
|
32,286
|
|
|
17%
|
|
33,353
|
|
|
31%
|
|
30,849
|
|
|
25%
|
|
(3)%
|
|
|
5%
|
Other Human Capital Management Services
|
|
|
|
9,140
|
|
|
5%
|
|
9,115
|
|
|
8%
|
|
9,191
|
|
|
8%
|
|
-%
|
|
|
(1)%
|
|
|
|
|
$
|
188,944
|
|
|
100%
|
|
$
|
108,048
|
|
|
100%
|
|
$
|
122,656
|
|
|
100%
|
|
75%
|
|
|
54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution income (g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f) (h)
|
|
|
|
$
|
12,575
|
|
|
|
|
$
|
4,998
|
|
|
|
|
$
|
6,652
|
|
|
|
|
152%
|
|
|
89%
|
Physician Staffing (f)
|
|
|
|
1,478
|
|
|
|
|
2,243
|
|
|
|
|
1,874
|
|
|
|
|
(34)%
|
|
|
(21)%
|
Other Human Capital Management Services
|
|
|
|
(55
|
)
|
|
|
|
55
|
|
|
|
|
(232
|
)
|
|
|
|
(200)%
|
|
|
76%
|
|
|
|
|
13,998
|
|
|
|
|
7,296
|
|
|
|
|
8,294
|
|
|
|
|
92%
|
|
|
69%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate overhead (h)
|
|
|
|
7,836
|
|
|
|
|
4,831
|
|
|
|
|
5,057
|
|
|
|
|
(62)%
|
|
|
(55)%
|
Depreciation
|
|
|
|
1,005
|
|
|
|
|
890
|
|
|
|
|
817
|
|
|
|
|
(13)%
|
|
|
(23)%
|
Amortization
|
|
|
|
1,011
|
|
|
|
|
552
|
|
|
|
|
784
|
|
|
|
|
(83)%
|
|
|
(29)%
|
Acquisition and integration costs (a)
|
|
|
|
2,383
|
|
|
|
|
-
|
|
|
|
|
2,747
|
|
|
|
|
(100)%
|
|
|
13%
|
Restructuring costs
|
|
|
|
-
|
|
|
|
|
109
|
|
|
|
|
755
|
|
|
|
|
100%
|
|
|
100%
|
Income (loss) from operations
|
|
|
|
$
|
1,763
|
|
|
|
|
$
|
914
|
|
|
|
|
$
|
(1,866
|
)
|
|
|
|
93%
|
|
|
194%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
YOY
|
|
|
|
|
|
|
|
September 30,
|
|
% of
|
|
September 30,
|
|
% of
|
|
|
|
|
|
% change
|
|
|
|
|
|
|
|
2014
|
|
Total
|
|
2013
|
|
Total
|
|
|
|
|
|
Fav (Unfav)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f)
|
|
|
|
$
|
310,327
|
|
|
72%
|
|
$
|
202,309
|
|
|
61%
|
|
|
|
|
|
53%
|
|
|
|
Physician Staffing (f)
|
|
|
|
92,271
|
|
|
22%
|
|
97,933
|
|
|
30%
|
|
|
|
|
|
(6)%
|
|
|
|
Other Human Capital Management Services
|
|
|
|
27,093
|
|
|
6%
|
|
28,890
|
|
|
9%
|
|
|
|
|
|
(6)%
|
|
|
|
|
|
|
|
$
|
429,691
|
|
|
100%
|
|
$
|
329,132
|
|
|
100%
|
|
|
|
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution income (g)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing (f) (h)
|
|
|
|
$
|
25,196
|
|
|
|
|
$
|
13,665
|
|
|
|
|
|
|
|
|
84%
|
|
|
|
Physician Staffing (f)
|
|
|
|
4,103
|
|
|
|
|
7,031
|
|
|
|
|
|
|
|
|
(42)%
|
|
|
|
Other Human Capital Management Services
|
|
|
|
(121
|
)
|
|
|
|
879
|
|
|
|
|
|
|
|
|
(114)%
|
|
|
|
|
|
|
|
29,178
|
|
|
|
|
21,575
|
|
|
|
|
|
|
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate overhead (h)
|
|
|
|
19,216
|
|
|
|
|
16,618
|
|
|
|
|
|
|
|
|
(16)%
|
|
|
|
Depreciation
|
|
|
|
2,796
|
|
|
|
|
2,952
|
|
|
|
|
|
|
|
|
5%
|
|
|
|
Amortization
|
|
|
|
2,580
|
|
|
|
|
1,684
|
|
|
|
|
|
|
|
|
(53)%
|
|
|
|
Acquisition and integration costs (a)
|
|
|
|
5,425
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
(100)%
|
|
|
|
Restructuring costs
|
|
|
|
755
|
|
|
|
|
484
|
|
|
|
|
|
|
|
|
(56)%
|
|
|
|
Legal settlement charge
|
|
|
|
-
|
|
|
|
|
750
|
|
|
|
|
|
|
|
|
100%
|
|
|
|
Income (loss) from operations
|
|
|
|
$
|
(1,594
|
)
|
|
|
|
$
|
(913
|
)
|
|
|
|
|
|
|
|
(75)%
|
|
|
|
|
|
|
|
|
|
|
Cross Country Healthcare, Inc.
|
Other Financial Data
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
June 30,
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities (in thousands)
|
|
|
|
$
|
2,475
|
|
|
|
|
$
|
7,161
|
|
|
|
|
$
|
3,703
|
|
|
|
|
$
|
(3,056
|
)
|
|
$
|
11,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nurse and Allied Staffing statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTEs (f) (i)
|
|
|
|
6,396
|
|
|
|
|
2,241
|
|
|
|
|
3,177
|
|
|
|
|
4,227
|
|
|
2,341
|
Average nurse and allied staffing revenue per FTE per day (f) (j)
|
|
|
|
$
|
251
|
|
|
|
|
$
|
318
|
|
|
|
|
$
|
286
|
|
|
|
|
$
|
269
|
|
|
$
|
317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physician Staffing statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days filled (f) (k)
|
|
|
|
22,742
|
|
|
|
|
24,011
|
|
|
|
|
21,147
|
|
|
|
|
64,690
|
|
|
69,861
|
Revenue per day filled (f) (l)
|
|
|
|
$
|
1,428
|
|
|
|
|
$
|
1,461
|
|
|
|
|
$
|
1,444
|
|
|
|
|
$
|
1,432
|
|
|
$
|
1,418
|
|
|
(a) On December 2, 2013, the Company acquired the operating assets of On
Assignment, Inc.'s Allied Healthcare staffing division. For the three
and nine months ended September 30, 2014, $0.1 million and $0.7 million,
respectively, of acquisition and integration costs were related to this
acquisition. On June 30, 2014, the Company acquired substantially
all of the operating assets and certain liabilities of Medical Staffing
Network Healthcare, LLC. For the three and nine months ended
September 30, 2014, $2.3 million and $4.7 million of acquisition and
integration costs were related to this acquisition. (b) Loss on
early extinguishment and modification of debt relates to the write-off
of unamortized net debt issuance costs related to the repayment of the
Company's term loan and revolver in 2013. (c) The Company sold its
clinical trial services business on February 15, 2013. The clinical
trial services business was classified as discontinued operations. As of
September 30, 2013, the transaction resulted in a gain on sale of $4.0
million pretax, or $1.7 million after tax. (d) Adjusted EBITDA, a
non-GAAP (Generally Accepted Accounting Principles) financial measure,
is defined as income or loss from operations before depreciation,
amortization, acquisition and integration costs, restructuring costs,
legal settlement charges, impairment charges and non-cash equity
compensation. 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
income or loss from operations 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. (e)
Segment data provided is in accordance with the Segment Reporting Topic
of the FASB ASC. (f) Effective January 1, 2014, the allied health
staffing business of MDA is being reported in the physician staffing
business segment. Prior year amounts have been reclassified to conform
to the current period's presentation. (g) Contribution income is
defined as income or loss from operations before depreciation,
amortization, acquisition and integration costs, restructuring costs,
legal settlement charges, 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. (h)
Certain prior year amounts have been reclassified to conform to the
current period's presentation. In 2014, the Company refined its
methodology for allocating certain corporate overhead expenses and the
nurse and allied staffing expenses to more accurately reflect this
segment's profitability. (i) FTEs represent the average number of
nurse and allied contract staffing personnel on a full-time equivalent
basis. (j) 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. (k) Days
filled is calculated by dividing the total hours filled during the
period by 8 hours. Effective January 1, 2014, days filled for all
periods presented excludes accrued days filled. (l) Revenue per day
filled is calculated by dividing the actual revenue invoiced by the
Company's physician staffing segment by days filled for the period
presented. Effective January 1, 2014, the applicable revenue for all
periods presented excludes permanent placement and accrued revenue.
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