Cross Country Healthcare Announces Third Quarter 2024 Financial Results
SELECTED FINANCIAL INFORMATION:
|
|
|
Variance |
Variance |
|||||
|
|
|
Q3 2024 vs |
Q3 2024 vs |
|||||
Dollars are in thousands, except per share amounts |
Q3 2024 |
Q3 2023 |
Q2 2024 |
||||||
Revenue |
$ |
315,119 |
|
|
(29 |
)% |
|
(7 |
)% |
Gross profit margin* |
|
20.4 |
% |
|
(160 |
)bps |
|
(40 |
)bps |
Net income attributable to common stockholders |
$ |
2,555 |
|
|
(80 |
)% |
|
116 |
% |
Diluted EPS |
$ |
0.08 |
|
$ |
(0.28 |
) |
$ |
0.55 |
|
Adjusted EBITDA* |
$ |
10,339 |
|
|
(62 |
)% |
|
(27 |
)% |
Adjusted EBITDA margin* |
|
3.3 |
% |
|
(290 |
)bps |
|
(90 |
)bps |
Adjusted EPS* |
$ |
0.12 |
|
$ |
(0.27 |
) |
$ |
0.02 |
|
Cash flows provided by operations |
$ |
7,470 |
|
|
(89 |
)% |
|
(91 |
)% |
* Represents amounts that are not calculated in accordance with |
Third Quarter Business Highlights
- Revenue, Adjusted EBITDA, and Adjusted EPS all within guidance ranges
-
Physician Staffing and Homecare Staffing experienced sequential and year-over-year revenue growth - Secured a three-year contract renewal with our largest managed service program
-
Continued strong balance sheet with
$64 million of cash on hand and no debt as ofSeptember 30, 2024 -
Repurchased over 800,000 shares of common stock for
$11.9 million
“Our third quarter results reflect the continued stabilization across our core business as well as the ongoing momentum in our Homecare, Physician, and Education Staffing businesses. Though margins remain under pressure, I am encouraged to see demand for our services continue to rise amidst bill rate stability,” said
Third quarter consolidated revenue was
For the nine months ended
Quarterly Business Segment Highlights
Nurse and
Revenue was
Revenue was
Cash Flow and Balance Sheet Highlights
Net cash provided by operating activities for the three months ended
During the third quarter, the Company repurchased over 800,000 shares of the Company’s common stock for an aggregate price of
As of
Outlook for Fourth Quarter 2024
The guidance below applies to management’s expectations for the fourth quarter of 2024.
|
Q4 2024 Range |
|
Year-over-Year |
|
Sequential |
Change |
|
Change |
|||
|
|
|
|
|
|
Revenue |
|
|
(28%)% - (25%)% |
|
(5%)% - (2%)% |
|
|
|
|
|
|
Adjusted EBITDA* |
|
|
(47%)% - (37%)% |
|
6%% - 26% |
|
|
|
|
|
|
Adjusted EPS* |
|
|
|
|
|
* Refer to discussion of non-GAAP financial measures and the reconciliation tables below. |
The above estimates are based on current management expectations and, as such, are forward-looking and actual results may differ materially. The above ranges do not include the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on
ABOUT
Copies of this and other press releases, as well as additional information about the Company, can be accessed online at ir.crosscountry.com. Stockholders and prospective investors can also register to automatically receive the Company’s press releases, filings with the
NON-GAAP FINANCIAL MEASURES
This press release and the accompanying financial statement tables reference non-GAAP financial measures, such as gross profit margin, adjusted EBITDA, and adjusted EPS. 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 GAAP. Such non-GAAP financial measures are provided for consistency and comparability to prior year results; furthermore, management believes such non-GAAP financial measures are useful to investors when evaluating the Company’s performance, as such non-GAAP financial measures exclude certain items that management believes are not indicative of the Company’s future operating performance. Pro forma measures, if applicable, are adjusted to include the results of our acquisitions, and exclude the results of divestments, as if the transactions occurred 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 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.
In addition, forward-looking adjusted EBITDA and adjusted EPS for fiscal 2024 exclude potential charges or gains that may be recorded during the fiscal year, including among other things, the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases. We have not attempted to provide reconciliations of such forward-looking non-GAAP earnings guidance to the comparable GAAP measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of our financial performance.
FORWARD-LOOKING STATEMENTS
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, Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995, and are subject to the “safe harbor” created by those sections. Forward-looking statements consist of statements that are predictive in nature and/or depend upon or refer to future events. Words such as “expects,”“anticipates,”“intends,”“plans,”“believes,”“estimates,”“suggests,”“appears,”“seeks,”“will,”“could,” and variations of such words and similar expressions are intended to identify forward-looking statements. These 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: the overall macroeconomic environment, including increased inflation and interest rates, demand for the healthcare services that we provide, both nationally and in the regions in which we operate, 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, 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, including data privacy and protection laws, social, ethical, and security issues relating to the use of artificial intelligence, our customers’ 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, including, without limitation, the risk factors set forth in Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
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. Except as may be required by law, the Company undertakes no obligation to update or revise forward-looking statements. All references to “the Company,”“we,”“us,”“our,” or “Cross Country” in this press release mean
|
|||||||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||||||
(Unaudited, amounts in thousands, except per share data) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
|
|
|
|
|
|
||||||||||||||
Revenue from services |
$ |
315,119 |
|
|
$ |
442,291 |
|
|
$ |
339,771 |
|
|
$ |
1,034,064 |
|
|
$ |
1,605,693 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Direct operating expenses |
|
250,961 |
|
|
|
344,932 |
|
|
|
268,966 |
|
|
|
821,804 |
|
|
|
1,245,772 |
|
Selling, general and administrative expenses |
|
54,297 |
|
|
|
69,627 |
|
|
|
60,258 |
|
|
|
177,807 |
|
|
|
232,825 |
|
Credit loss expense |
|
1,512 |
|
|
|
2,355 |
|
|
|
18,858 |
|
|
|
21,660 |
|
|
|
10,397 |
|
Depreciation and amortization |
|
4,498 |
|
|
|
4,540 |
|
|
|
4,719 |
|
|
|
13,859 |
|
|
|
13,876 |
|
Restructuring costs |
|
998 |
|
|
|
348 |
|
|
|
2,116 |
|
|
|
4,052 |
|
|
|
1,690 |
|
Legal and other losses |
|
— |
|
|
|
— |
|
|
|
3,946 |
|
|
|
7,596 |
|
|
|
1,125 |
|
Impairment charges |
|
— |
|
|
|
186 |
|
|
|
114 |
|
|
|
718 |
|
|
|
719 |
|
Total operating expenses |
|
312,266 |
|
|
|
421,988 |
|
|
|
358,977 |
|
|
|
1,047,496 |
|
|
|
1,506,404 |
|
Income (loss) from operations |
|
2,853 |
|
|
|
20,303 |
|
|
|
(19,206 |
) |
|
|
(13,432 |
) |
|
|
99,289 |
|
Other expenses (income): |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
550 |
|
|
|
669 |
|
|
|
568 |
|
|
|
1,580 |
|
|
|
7,508 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,723 |
|
Interest income |
|
(1,107 |
) |
|
|
(5 |
) |
|
|
(235 |
) |
|
|
(1,515 |
) |
|
|
(12 |
) |
Other expense (income) , net |
|
21 |
|
|
|
139 |
|
|
|
23 |
|
|
|
(1,013 |
) |
|
|
145 |
|
Income (loss) before income taxes |
|
3,389 |
|
|
|
19,500 |
|
|
|
(19,562 |
) |
|
|
(12,484 |
) |
|
|
89,925 |
|
Income tax expense (benefit) |
|
834 |
|
|
|
6,688 |
|
|
|
(3,512 |
) |
|
|
(1,681 |
) |
|
|
26,332 |
|
Net income (loss) attributable to common stockholders |
$ |
2,555 |
|
|
$ |
12,812 |
|
|
$ |
(16,050 |
) |
|
$ |
(10,803 |
) |
|
$ |
63,593 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share attributable to common stockholders - Basic |
$ |
0.08 |
|
|
$ |
0.37 |
|
|
$ |
(0.47 |
) |
|
$ |
(0.32 |
) |
|
$ |
1.80 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share attributable to common stockholders - Diluted |
$ |
0.08 |
|
|
$ |
0.36 |
|
|
$ |
(0.47 |
) |
|
$ |
(0.32 |
) |
|
$ |
1.78 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
33,016 |
|
|
|
34,954 |
|
|
|
33,960 |
|
|
|
33,728 |
|
|
|
35,386 |
|
Diluted |
|
33,058 |
|
|
|
35,152 |
|
|
|
33,960 |
|
|
|
33,728 |
|
|
|
35,742 |
|
|
|||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
(Unaudited, amounts in thousands, except per share data) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
Adjusted EBITDA:a |
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) attributable to common stockholders |
$ |
2,555 |
|
|
$ |
12,812 |
|
|
$ |
(16,050 |
) |
|
$ |
(10,803 |
) |
|
$ |
63,593 |
|
Interest expense |
|
550 |
|
|
|
669 |
|
|
|
568 |
|
|
|
1,580 |
|
|
|
7,508 |
|
Income tax expense (benefit)b |
|
834 |
|
|
|
6,688 |
|
|
|
(3,512 |
) |
|
|
(1,681 |
) |
|
|
26,332 |
|
Depreciation and amortization |
|
4,498 |
|
|
|
4,540 |
|
|
|
4,719 |
|
|
|
13,859 |
|
|
|
13,876 |
|
Acquisition and integration-related costs |
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
59 |
|
Restructuring costsc |
|
998 |
|
|
|
348 |
|
|
|
2,116 |
|
|
|
4,052 |
|
|
|
1,690 |
|
Legal, bankruptcy, and other lossesd |
|
— |
|
|
|
— |
|
|
|
23,319 |
|
|
|
26,969 |
|
|
|
1,125 |
|
Impairment chargese |
|
— |
|
|
|
186 |
|
|
|
114 |
|
|
|
718 |
|
|
|
719 |
|
Loss on disposal of fixed assets |
|
— |
|
|
|
43 |
|
|
|
— |
|
|
|
— |
|
|
|
43 |
|
Loss on early extinguishment of debtf |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,723 |
|
Loss on lease termination |
|
— |
|
|
|
96 |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
Interest income |
|
(1,107 |
) |
|
|
(5 |
) |
|
|
(235 |
) |
|
|
(1,515 |
) |
|
|
(12 |
) |
Other expense (income), net |
|
21 |
|
|
|
— |
|
|
|
23 |
|
|
|
(1,013 |
) |
|
|
(2 |
) |
Equity compensation |
|
870 |
|
|
|
1,433 |
|
|
|
2,259 |
|
|
|
4,327 |
|
|
|
5,413 |
|
System conversion costsg |
|
1,120 |
|
|
|
425 |
|
|
|
857 |
|
|
|
3,306 |
|
|
|
1,658 |
|
Adjusted EBITDAa |
$ |
10,339 |
|
|
$ |
27,248 |
|
|
$ |
14,178 |
|
|
$ |
39,799 |
|
|
$ |
123,829 |
|
Adjusted EBITDA margina |
|
3.3 |
% |
|
|
6.2 |
% |
|
|
4.2 |
% |
|
|
3.8 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EPS:h |
|
|
|
|
|
|
|
|
|
||||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) attributable to common stockholders |
$ |
2,555 |
|
|
$ |
12,812 |
|
|
$ |
(16,050 |
) |
|
$ |
(10,803 |
) |
|
$ |
63,593 |
|
Non-GAAP adjustments - pretax: |
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and integration-related costs |
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
59 |
|
Restructuring costsc |
|
998 |
|
|
|
348 |
|
|
|
2,116 |
|
|
|
4,052 |
|
|
|
1,690 |
|
Legal, bankruptcy, and other lossesd |
|
— |
|
|
|
— |
|
|
|
23,319 |
|
|
|
26,969 |
|
|
|
1,125 |
|
Impairment chargese |
|
— |
|
|
|
186 |
|
|
|
114 |
|
|
|
718 |
|
|
|
719 |
|
Other income, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,115 |
) |
|
|
— |
|
Loss on early extinguishment of debtf |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,723 |
|
System conversion costsg |
|
1,120 |
|
|
|
425 |
|
|
|
857 |
|
|
|
3,306 |
|
|
|
1,658 |
|
Tax impact of non-GAAP adjustments |
|
(552 |
) |
|
|
(208 |
) |
|
|
(7,066 |
) |
|
|
(9,023 |
) |
|
|
(1,767 |
) |
Adjusted net income attributable to common stockholders - non-GAAP |
$ |
4,121 |
|
|
$ |
13,576 |
|
|
$ |
3,290 |
|
|
$ |
14,104 |
|
|
$ |
68,800 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Denominator: |
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares - basic, GAAP |
|
33,016 |
|
|
|
34,954 |
|
|
|
33,960 |
|
|
|
33,728 |
|
|
|
35,386 |
|
Dilutive impact of share-based payments |
|
42 |
|
|
|
198 |
|
|
|
42 |
|
|
|
155 |
|
|
|
356 |
|
Adjusted weighted average common shares - diluted, non-GAAP |
|
33,058 |
|
|
|
35,152 |
|
|
|
34,002 |
|
|
|
33,883 |
|
|
|
35,742 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation: |
|
|
|
|
|
|
|
|
|
||||||||||
Diluted EPS, GAAP |
$ |
0.08 |
|
|
$ |
0.36 |
|
|
$ |
(0.47 |
) |
|
$ |
(0.32 |
) |
|
$ |
1.78 |
|
Non-GAAP adjustments - pretax: |
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring costsc |
|
0.03 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.12 |
|
|
|
0.05 |
|
Legal, bankruptcy, and other lossesd |
|
— |
|
|
|
— |
|
|
|
0.69 |
|
|
|
0.79 |
|
|
|
0.03 |
|
Impairment chargese |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.02 |
|
Other income, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Loss on early extinguishment of debtf |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
System conversion costsg |
|
0.03 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.10 |
|
|
|
0.04 |
|
Tax impact of non-GAAP adjustments |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.21 |
) |
|
|
(0.27 |
) |
|
|
(0.05 |
) |
Adjusted EPS, non-GAAPh |
$ |
0.12 |
$ |
0.39 |
|
|
$ |
0.10 |
|
|
$ |
0.41 |
|
|
$ |
1.92 |
|
|||||||
Consolidated Balance Sheets |
|||||||
(Unaudited, amounts in thousands) |
|||||||
|
|||||||
|
|
|
|
||||
|
2024 |
|
2023 |
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
64,021 |
|
|
$ |
17,094 |
|
Accounts receivable, net |
|
244,987 |
|
|
|
372,352 |
|
Income taxes receivablei |
|
10,128 |
|
|
|
8,620 |
|
Prepaid expenses |
|
4,554 |
|
|
|
7,681 |
|
Insurance recovery receivable |
|
12,102 |
|
|
|
9,097 |
|
Other current assets |
|
794 |
|
|
|
2,031 |
|
Total current assets |
|
336,586 |
|
|
|
416,875 |
|
Property and equipment, net |
|
28,975 |
|
|
|
27,339 |
|
Operating lease right-of-use assets |
|
2,700 |
|
|
|
2,599 |
|
|
|
135,430 |
|
|
|
135,430 |
|
Other intangible assets, net |
|
46,453 |
|
|
|
54,468 |
|
Deferred tax assetsi |
|
9,038 |
|
|
|
5,979 |
|
Insurance recovery receivable |
|
21,812 |
|
|
|
25,714 |
|
Cloud computing |
|
9,735 |
|
|
|
5,987 |
|
Other assets |
|
6,694 |
|
|
|
6,673 |
|
Total assets |
$ |
597,423 |
|
|
$ |
681,064 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expensesi |
$ |
58,436 |
|
|
$ |
92,822 |
|
Accrued compensation and benefits |
|
54,285 |
|
|
|
52,297 |
|
Operating lease liabilities |
|
2,060 |
|
|
|
2,604 |
|
Earnout liability |
|
4,100 |
|
|
|
6,794 |
|
Other current liabilities |
|
1,796 |
|
|
|
1,559 |
|
Total current liabilities |
|
120,677 |
|
|
|
156,076 |
|
Operating lease liabilities |
|
2,348 |
|
|
|
2,663 |
|
Accrued claims |
|
34,893 |
|
|
|
34,853 |
|
Earnout liability |
|
— |
|
|
|
5,000 |
|
Uncertain tax positions |
|
11,169 |
|
|
|
10,603 |
|
Other liabilities |
|
3,645 |
|
|
|
4,218 |
|
Total liabilities |
|
172,732 |
|
|
|
213,413 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock |
|
3 |
|
|
|
4 |
|
Additional paid-in capital |
|
204,273 |
|
|
|
236,417 |
|
Accumulated other comprehensive loss |
|
(1,397 |
) |
|
|
(1,385 |
) |
Retained earningsi |
|
221,812 |
|
|
|
232,615 |
|
Total stockholders’ equity |
|
424,691 |
|
|
|
467,651 |
|
Total liabilities and stockholders’ equity |
$ |
597,423 |
|
$ |
681,064 |
|
||||||||||||||||||||||
Segment Dataj |
||||||||||||||||||||||
(Unaudited, amounts in thousands) |
||||||||||||||||||||||
|
||||||||||||||||||||||
|
Three Months Ended |
|
Year-over-
|
|
Sequential |
|||||||||||||||||
|
|
% of |
|
|
% of |
|
|
% of |
|
% change |
|
% change |
||||||||||
|
2024 |
Total |
|
2023 |
Total |
|
2024 |
Total |
|
Fav (Unfav) |
|
Fav (Unfav) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue from services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nurse and |
$ |
264,853 |
|
84 |
% |
|
$ |
396,595 |
90 |
% |
|
$ |
291,451 |
|
86 |
% |
|
(33 |
)% |
|
(9 |
)% |
|
|
50,266 |
|
16 |
% |
|
|
45,696 |
10 |
% |
|
|
48,320 |
|
14 |
% |
|
10 |
% |
|
4 |
% |
|
$ |
315,119 |
|
100 |
% |
|
$ |
442,291 |
100 |
% |
|
$ |
339,771 |
|
100 |
% |
|
(29 |
)% |
|
(7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contribution income:k |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nurse and |
$ |
19,251 |
|
|
|
$ |
39,226 |
|
|
$ |
5,820 |
|
|
|
(51 |
)% |
|
231 |
% |
|||
|
|
4,629 |
|
|
|
|
2,576 |
|
|
|
4,033 |
|
|
|
80 |
% |
|
15 |
% |
|||
|
|
23,880 |
|
|
|
|
41,802 |
|
|
|
9,853 |
|
|
|
(43 |
)% |
|
142 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate overheadl |
|
15,531 |
|
|
|
|
16,412 |
|
|
|
18,161 |
|
|
|
5 |
% |
|
14 |
% |
|||
Depreciation and amortization |
|
4,498 |
|
|
|
|
4,540 |
|
|
|
4,719 |
|
|
|
1 |
% |
|
5 |
% |
|||
Restructuring costsc |
|
998 |
|
|
|
|
348 |
|
|
|
2,116 |
|
|
|
(187 |
)% |
|
53 |
% |
|||
Legal and other lossesm |
|
— |
|
|
|
|
— |
|
|
|
3,946 |
|
|
|
— |
% |
|
100 |
% |
|||
Impairment chargese |
|
— |
|
|
|
|
186 |
|
|
|
114 |
|
|
|
100 |
% |
|
100 |
% |
|||
Other costs |
|
— |
|
|
|
|
13 |
|
|
|
3 |
|
|
|
100 |
% |
|
100 |
% |
|||
Income (loss) from operations |
$ |
2,853 |
|
|
|
$ |
20,303 |
|
|
$ |
(19,206 |
) |
|
|
(86 |
)% |
|
115 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Nine Months Ended |
|
|
|
Year-over-
|
|
|
|||||||||||||||
|
|
% of |
|
|
% of |
|
|
|
% change |
|
|
|||||||||||
|
|
2024 |
|
Total |
|
|
2023 |
Total |
|
|
Fav (Unfav) |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue from services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nurse and |
$ |
888,490 |
|
86 |
% |
|
$ |
1,474,273 |
92 |
% |
|
|
|
|
(40 |
)% |
|
|
||||
|
|
145,574 |
|
14 |
% |
|
|
131,420 |
8 |
% |
|
|
|
|
11 |
% |
|
|
||||
|
$ |
1,034,064 |
|
100 |
% |
|
$ |
1,605,693 |
100 |
% |
|
|
|
|
(36 |
)% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contribution income:k |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nurse and |
$ |
52,254 |
|
|
|
$ |
162,876 |
|
|
|
|
|
(68 |
)% |
|
|
||||||
|
|
11,800 |
|
|
|
|
7,841 |
|
|
|
|
|
50 |
% |
|
|
||||||
|
|
64,054 |
|
|
|
|
170,717 |
|
|
|
|
|
(62 |
)% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate overheadl |
|
51,258 |
|
|
|
|
53,959 |
|
|
|
|
|
5 |
% |
|
|
||||||
Depreciation and amortization |
|
13,859 |
|
|
|
|
13,876 |
|
|
|
|
|
— |
% |
|
|
||||||
Restructuring costsc |
|
4,052 |
|
|
|
|
1,690 |
|
|
|
|
|
(140 |
)% |
|
|
||||||
Legal and other lossesm |
|
7,596 |
|
|
|
|
1,125 |
|
|
|
|
|
(575 |
)% |
|
|
||||||
Impairment chargese |
|
718 |
|
|
|
|
719 |
|
|
|
|
|
— |
% |
|
|
||||||
Other costs |
|
3 |
|
|
|
|
59 |
|
|
|
|
|
95 |
% |
|
|
||||||
(Loss) income from operations |
$ |
(13,432 |
) |
|
|
$ |
99,289 |
|
|
|
|
|
(114 |
)% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other costs include acquisition and integration-related costs. |
|
|||||||||||||||||||
Summary Condensed Consolidated Statements of Cash Flows |
|||||||||||||||||||
(Unaudited, amounts in thousands) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities |
$ |
7,470 |
|
|
$ |
70,311 |
|
|
$ |
82,401 |
|
|
$ |
95,882 |
|
|
$ |
236,424 |
|
Net cash used in investing activities |
|
(1,124 |
) |
|
|
(3,408 |
) |
|
|
(2,849 |
) |
|
|
(6,183 |
) |
|
|
(10,900 |
) |
Net cash used in financing activities |
|
(11,926 |
) |
|
|
(53,273 |
) |
|
|
(15,193 |
) |
|
|
(42,772 |
) |
|
|
(214,825 |
) |
Effect of exchange rate changes on cash |
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Change in cash and cash equivalents |
|
(5,580 |
) |
|
|
13,628 |
|
|
|
64,359 |
|
|
|
46,927 |
|
|
|
10,697 |
|
Cash and cash equivalents at beginning of period |
|
69,601 |
|
|
|
673 |
|
|
|
5,242 |
|
|
|
17,094 |
|
|
|
3,604 |
|
Cash and cash equivalents at end of period |
$ |
64,021 |
|
|
|
14,301 |
|
|
$ |
69,601 |
|
|
$ |
64,021 |
|
|
$ |
14,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Other Financial Data |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue from services |
$ |
315,119 |
|
|
$ |
442,291 |
|
|
$ |
339,771 |
|
|
$ |
1,034,064 |
|
|
$ |
1,605,693 |
|
Less: Direct operating expenses |
|
250,961 |
|
|
|
344,932 |
|
|
|
268,966 |
|
|
|
821,804 |
|
|
|
1,245,772 |
|
Gross profit |
$ |
64,158 |
|
|
$ |
97,359 |
|
|
$ |
70,805 |
|
|
$ |
212,260 |
|
|
$ |
359,921 |
|
Consolidated gross profit marginn |
|
20.4 |
% |
|
|
22.0 |
% |
|
|
20.8 |
% |
|
|
20.5 |
% |
|
|
22.4 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Nurse and |
|
|
|
|
|
|
|
|
|
||||||||||
FTEso |
|
7,660 |
|
|
|
9,849 |
|
|
|
8,415 |
|
|
|
8,400 |
|
|
|
11,251 |
|
Average Nurse and |
$ |
373 |
|
|
$ |
434 |
|
|
$ |
377 |
|
|
$ |
383 |
|
|
$ |
476 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Days filledq |
|
24,424 |
|
|
|
23,004 |
|
|
|
24,252 |
|
|
|
72,461 |
|
|
|
68,927 |
|
Revenue per day filledr |
$ |
2,058 |
|
|
$ |
1,986 |
|
|
$ |
1,992 |
|
|
$ |
2,009 |
|
|
$ |
1,907 |
|
(a) |
Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders before interest expense, income tax expense (benefit), depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on disposal of fixed assets, gain or loss on lease termination, gain or loss on sale of business, other expense (income), net, equity compensation, and system conversion costs. Adjusted EBITDA is not and 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 stockholders as an indicator of operating performance. Management uses Adjusted EBITDA for planning purposes and as one performance measure in its incentive programs for certain members of its management team. Adjusted EBITDA, as defined, closely matches the operating measure as defined by the Company's credit facilities. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company's consolidated revenue. |
(b) |
The decrease in income tax expense for the three and nine months ended |
(c) |
Restructuring costs were primarily comprised of employee termination costs, lease-related exit costs, and reorganization costs as part of planned cost savings initiatives. |
(d) |
Includes legal costs and other settlement charges as presented on the consolidated statements of operations, losses pertaining to matters outside the normal course of operations, and |
(e) |
Impairment charges for the nine months ended |
(f) |
Loss on early extinguishment of debt for the nine months ended |
(g) |
System conversion costs include enterprise resource planning system costs related to the upgrading and integrating of our middle and back-office platforms, with certain development costs capitalized and amortized in accordance with the Company’s policies, and applicant tracking system costs related to the Company’s project to replace its legacy system supporting its travel nurse staffing business. |
(h) |
Adjusted EPS, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders per diluted share before the diluted EPS impact of acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on sale of business, system conversion costs, and nonrecurring income tax adjustments. Adjusted EPS is not and 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 Adjusted EPS provides a more useful comparison of the Company’s underlying business performance from period to period and is more representative of the future earnings capacity of the Company than EPS. Quarterly non-GAAP adjustment may vary due to rounding. |
(i) |
Financial information included in the |
(j) |
Segment data is provided in accordance with the Segment Reporting Topic of the Financial Accounting Standards Board Accounting Standards Codification. |
(k) |
Contribution income is defined as income (loss) from operations before depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, impairment charges, and corporate overhead. Contribution income is a financial measure used by management when assessing segment performance. |
(l) |
Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, human resources, and marketing, as well as public company expenses and Company-wide projects (initiatives). |
(m) |
Legal and other losses includes legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations. |
(n) |
Gross profit is defined as revenue from services less direct operating expenses. The Company’s gross profit excludes allocated depreciation and amortization expense. Gross profit margin is calculated by dividing gross profit by revenue from services. |
(o) |
FTEs represent the average number of Nurse and |
(p) |
Average revenue per FTE per day is calculated by dividing Nurse and |
(q) |
Days filled is calculated by dividing the total hours invoiced during the period, including an estimate for the impact of accrued revenue, by 8 hours. |
(r) |
Revenue per day filled is calculated by dividing revenue as reported by days filled for the period presented. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105337918/en/
561-237-2555
wburns@crosscountry.com
Source: