Cross Country Healthcare (CCRN) reported $309.94 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 25.1%. EPS of $0.04 for the same period compares to $0.29 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $306.2 million, representing a surprise of +1.22%. The company delivered an EPS surprise of -63.64%, with the consensus EPS estimate being $0.11.While investors closely watch year-over-year changes in headline numbers -- revenue and ...

Core Insights - Cross Country Healthcare (CCRN) reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.11 per share, and down from $0.29 per share a year ago [1] - The company posted revenues of $309.94 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.22%, but down from $414.04 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -63.64%, with the company previously expected to post earnings of $0.10 per share but actually producing $0.12 per share in the prior quarter, resulting in a positive surprise of 20% [2] - Over the last four quarters, Cross Country has surpassed consensus EPS estimates two times [2] Revenue Insights - The company has topped consensus revenue estimates four times over the last four quarters [3] - Current consensus EPS estimate for the coming quarter is $0.08 on revenues of $301.78 million, and for the current fiscal year, it is $0.54 on revenues of $1.25 billion [8] Market Performance - Cross Country shares have declined approximately 6.6% since the beginning of the year, compared to a decline of -1.8% for the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Staffing Firms industry, to which Cross Country belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Cross Country's stock performance [6]

Financial Performance - Consolidated revenue for the year ended December 31, 2024, declined 33.5% year-over-year to $1.3 billion, down from $2.0 billion in 2023, primarily due to declines in the Nurse and Allied Staffing segment [166][175]. - The net loss attributable to common stockholders for 2024 was $14.6 million, compared to a net income of $72.6 million in 2023, marking a 120.0% decrease [166][174]. - Revenues from Nurse and Allied Staffing decreased by $696.0 million, or 37.8%, to $1.1 billion in 2024, driven by a 24.2% decline in professionals on assignment [191]. - Physician Staffing revenue increased by $20.3 million, or 11.4%, to $198.6 million in 2024, primarily due to a 5.8% increase in billable days [193]. Cash Flow and Liquidity - Cash and cash equivalents increased to $81.6 million in 2024, up from $17.1 million in the prior year, with cash flow from operating activities reported at $120.1 million [167]. - Net cash provided by operating activities decreased by $128.4 million to $120.1 million in 2024 compared to $248.5 million in 2023 [200]. - As of December 31, 2024, cash and cash equivalents were reported at $81.6 million, with working capital decreasing by $46.2 million to $214.6 million [196]. Expenses and Cost Management - Direct operating expenses decreased by 31.8% to $1.1 billion in 2024, as a result of revenue declines and tighter bill/pay spreads [176]. - Selling, general and administrative expenses decreased by 22.3% to $233.4 million in 2024, primarily due to reductions in compensation and marketing expenses [177]. - Restructuring costs for 2024 were $4.3 million, primarily related to employee termination and lease exit costs, compared to $2.6 million in 2023 [181]. - Corporate overhead decreased to $68.5 million in 2024 from $71.0 million in 2023, representing 5.1% of consolidated revenue [195]. Tax and Credit Losses - Income tax benefit totaled $1.8 million for 2024, compared to an income tax expense of $30.3 million in 2023, reflecting a decrease in book income primarily due to credit loss expense [188]. - Credit loss expense increased to $21.4 million in 2024, up from $14.6 million in 2023, representing 1.6% of revenue compared to 0.7% in the prior year [178]. - Total allowances for credit losses were $9.3 million as of December 31, 2024, a decrease from $20.5 million in 2023 [222]. Staffing Segments Performance - The Nurse and Allied Staffing segment represented approximately 85% of total revenue, while the Physician Staffing segment accounted for 15% for the year ended December 31, 2024 [165]. - Homecare Staffing grew by 12.4% year-over-year, and the Physician Staffing segment increased by 11.4% over the prior year [166]. - Average revenue per FTE per day in Nurse and Allied Staffing decreased by $84, or 18.2%, to $378 in 2024 [190]. - Total days filled in Physician Staffing increased by 5.8% to 97,888 in 2024, with revenue per day filled at $2,029 [194]. Mergers and Acquisitions - The company entered into a Merger Agreement with Aya Healthcare, with the merger expected to close in the second half of 2025, subject to regulatory approvals [168]. Other Financial Metrics - Interest income for the year ended December 31, 2024, was $2.1 million, a significant increase from an immaterial amount in 2023 [186]. - The company recognized $60.4 million in estimated revenue for services worked but not yet billed as of December 31, 2024, compared to $89.9 million in 2023 [219]. - Deferred tax assets related to federal, state, and foreign NOL carryforwards amounted to $6.6 million as of December 31, 2024 [224]. - The company is subject to an unrecognized tax benefit of $10.1 million as of December 31, 2024, reflecting uncertain tax positions [226]. Risk Management and Currency Exposure - The company has not entered into any foreign currency hedges, with approximately 3% of expenses related to services provided by employees in India [234]. - The company does not believe inflation significantly impacted its operations, actively seeking to adjust billing rates to reflect cost increases [231]. - Fluctuations in exchange rates impact the U.S. dollar amount of stockholders' equity [236]. - Non-U.S. subsidiaries' assets and liabilities are translated into U.S. dollars at the end of the reporting period exchange rate [236]. - Translation adjustments are recorded in stockholders' equity as a component of accumulated other comprehensive loss [236].

Revenue Performance - Fourth quarter revenue was $309.9 million, a decrease of 25% year-over-year and 2% sequentially[6] - Full year revenue for 2024 was $1.34 billion, a decrease of 33% compared to 2023[7] - Revenue from services for the three months ended December 31, 2024, was $309,940, a decrease of 25.1% compared to $414,035 for the same period in 2023[23] - Revenue from services for Q4 2024 was $309,940,000, a decrease of 25% compared to $414,035,000 in Q4 2023[30] - For the year ended December 31, 2024, total revenue from services was $1,344,004,000, a decline of 33% from $2,019,728,000 in 2023[34] Profitability and Loss - Net loss attributable to common stockholders for Q4 2024 was $3.8 million, compared to net income of $9.0 million in the prior year[6] - Net loss attributable to common stockholders for the three months ended December 31, 2024, was $(3,753), compared to a net income of $9,038 for the same period in 2023[25] - The company reported a diluted net loss per share of $(0.12) for the three months ended December 31, 2024, compared to earnings of $0.26 per share for the same period in 2023[25] - The company reported a loss from operations of $3,433,000 in Q4 2024, compared to income of $13,424,000 in Q4 2023[30] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $9.3 million, representing 3.0% of revenue, down from 5.0% in the prior year[6] - Adjusted EBITDA for the three months ended December 31, 2024, was $9,271, representing an adjusted EBITDA margin of 3.0%[25] Cash Flow and Liquidity - Cash flows provided by operations for Q4 2024 were $24.2 million, an increase of 101% year-over-year[10] - Cash and cash equivalents increased to $81,633 as of December 31, 2024, compared to $17,094 as of December 31, 2023[27] - Cash and cash equivalents at the end of Q4 2024 were $81,633,000, significantly up from $17,094,000 at the end of Q4 2023[31] - Net cash provided by operating activities for Q4 2024 was $24,234,000, an increase from $12,074,000 in Q4 2023[31] Staffing Revenue - Physician Staffing revenue increased by 13% year-over-year to $53.0 million[9] - Nurse and Allied Staffing revenue was $256.9 million, a decrease of 30% year-over-year[8] - Nurse and Allied Staffing revenue decreased by 30% year-over-year to $256,929,000, while Physician Staffing revenue increased by 13% to $53,011,000[30] - The average revenue per FTE per day for Nurse and Allied Staffing decreased to $363 in Q4 2024 from $414 in Q4 2023[34] Expenses and Liabilities - Total operating expenses for the three months ended December 31, 2024, were $313,373, down from $400,611 in the prior year, reflecting a reduction of 21.8%[23] - Total liabilities decreased to $170,292 as of December 31, 2024, compared to $213,413 as of December 31, 2023, a reduction of 20.2%[27] Shareholder Actions - The company repurchased over 2.4 million shares of common stock for $36.8 million in 2024[4] Merger and Future Outlook - The pending merger with Aya Healthcare is expected to close in the second half of 2025[4] Restructuring Costs - Restructuring costs for the year ended December 31, 2024, were $4,333,000, a 70% increase compared to $2,553,000 in 2023[34]

Core Insights - The Staffing Firms industry is expected to gradually return to pre-pandemic levels, enabling companies to pay regular dividends [1] - The demand for staffing agencies is driven by the rising adoption of remote work and hybrid models, supported by technological advancements [1][4] - Companies like HireQuest, Inc. (HQI), Heidrick & Struggles International, Inc. (HSII), and Cross Country Healthcare, Inc. (CCRN) are benefiting from these technological developments [1] Industry Overview - The Zacks Staffing industry includes a variety of companies providing human resources and workforce solutions, covering employment screening, recruitment, payroll administration, and more [2] - Specialized services offered by some firms include staffing and risk consulting, professional staffing, and global business solutions [2] Market Trends - The industry is mature with stable demand, showing resilience despite economic downturns in manufacturing, and revenues are expected to recover to pre-pandemic levels [3] - The significant rise in remote work has led staffing agencies to focus on flexible staffing solutions, catering to evolving workplace preferences [4] Technological Advancements - The staffing sector is increasingly utilizing technology to enhance operations and service delivery, with AI-driven tools and platforms improving talent acquisition processes [5] - The adoption of social media, Big Data, and secure communication platforms like Zoom and Microsoft Teams is also on the rise [5] Industry Performance - The Zacks Staffing Firms industry currently holds a Zacks Industry Rank of 198, placing it in the bottom 20% of 249 Zacks industries, indicating sluggish near-term prospects [6] - Over the past year, the industry has underperformed the S&P 500, declining by 17.4% compared to the S&P 500's growth of 24.2% [8] Valuation Metrics - The industry is trading at an EV-to-EBITDA ratio of 7.48X, significantly lower than the S&P 500's 17.7X and the sector's 27.05X [10] - Historical trading ranges for the industry have been between 7.28X and 8.92X over the past five years, with a median of 7.95X [10] Company Highlights - **Heidrick & Struggles (HSII)**: Benefiting from strong performance in executive search and on-demand talent services, with a Zacks Rank of 3 and a 17.5% share price increase over the past six months [12][14] - **Cross Country Healthcare (CCRN)**: Improving from strong relationships and growth in home care and physician staffing, with a Zacks Rank of 3 and a 28.6% share price increase over the past six months [15][17] - **HireQuest (HQI)**: Leveraging its franchise model for growth, with a Zacks Rank of 3 and a 14.4% share price increase over the past six months [18][19]

Group 1 - Monteverde & Associates PC is investigating Cross Country Healthcare, Inc. regarding its proposed merger with Aya Healthcare, where shares will be converted into $18.61 in cash [1] - Monteverde & Associates PC has a successful track record in recovering millions for shareholders and is recognized as a Top 50 Firm by ISS Securities Class Action Services Report [1][3] - The firm operates from the Empire State Building in New York City and specializes in class action securities litigation [3][4] Group 2 - The firm encourages shareholders with concerns about Cross Country Healthcare to seek additional information free of charge [4] - Contact information for Juan Monteverde, Esq. is provided for shareholders seeking legal assistance [4]

Financial Performance - Consolidated revenue for Q3 2024 decreased by 28.8% year-over-year to $315.1 million, down from $442.3 million in Q3 2023, primarily due to declines in the Nurse and Allied Staffing segment [120][129]. - Net income attributable to common stockholders for Q3 2024 was $2.6 million, a significant decrease from $12.8 million in the same quarter of the previous year, reflecting an 80.1% decline [120][128]. - Revenue from services decreased 35.6% to $1.0 billion for the nine months ended September 30, 2024, compared to $1.6 billion for the same period in 2023 [141]. - Net loss attributable to common stockholders was $10.8 million for the nine months ended September 30, 2024, compared to net income of $63.6 million for the same period in 2023 [140]. Segment Performance - Nurse and Allied Staffing segment accounted for approximately 84% of total revenue in Q3 2024, while Physician Staffing represented about 16% [119]. - Revenue from Nurse and Allied Staffing decreased 33.2% to $264.9 million for the three months ended September 30, 2024, compared to $396.6 million for the same period in 2023 [158]. - Revenue for Physician Staffing increased by $4.6 million, or 10.0%, to $50.3 million for the three months ended September 30, 2024, driven by a 6.2% increase in billable days [161]. - Revenue for Nurse and Allied Staffing decreased by $585.8 million, or 39.7%, to $888.5 million for the nine months ended September 30, 2024, primarily due to a 25.3% decline in professionals on assignment [165]. Expenses - Direct operating expenses decreased by 27.2% to $251.0 million in Q3 2024, compared to $344.9 million in Q3 2023, with direct operating expenses as a percentage of total revenue increasing to 79.7% [130]. - Selling, general and administrative expenses fell by 22.0% to $54.3 million in Q3 2024, with these expenses representing 17.2% of total revenue [131]. - Direct operating expenses decreased 34.0% to $821.8 million for the nine months ended September 30, 2024, from $1.2 billion in the prior year [142]. - Selling, general and administrative expenses decreased 23.6% to $177.8 million for the nine months ended September 30, 2024, compared to $232.8 million for the same period in 2023 [143]. Cash Flow and Liquidity - Cash and cash equivalents totaled $64.0 million as of September 30, 2024, with no borrowings drawn under the revolving credit facility [121]. - Cash flow from operating activities for the nine months ended September 30, 2024 was $95.9 million, driven by collections from clients [121]. - Cash and cash equivalents as of September 30, 2024, were reported at $64.0 million, with working capital decreasing by $44.9 million to $215.9 million [172]. - Net cash provided by operating activities decreased by $140.5 million to $95.9 million for the nine months ended September 30, 2024 [175]. Credit Loss and Restructuring - Credit loss expense for Q3 2024 was $1.5 million, representing 0.5% of revenue, down from $2.4 million in Q3 2023 [132]. - Credit loss expense increased 108.3% to $21.7 million for the nine months ended September 30, 2024, from $10.4 million in the prior year [144]. - Restructuring costs for Q3 2024 were $1.0 million, significantly higher than $0.3 million in Q3 2023, indicating increased costs related to employee terminations and software licenses [134]. Operational Metrics - Average Nurse and Allied Staffing revenue per FTE per day decreased 14.1% to $373 for the three months ended September 30, 2024, from $434 in the prior year [156]. - Days filled in Physician Staffing increased 6.2% to 24,424 for the three months ended September 30, 2024, compared to 23,004 for the same period in 2023 [156]. - The average number of FTEs on contract decreased by 22.2% to 24,424 for the three months ended September 30, 2024, compared to the same period in 2023 [160]. - Total days filled increased to 24,424 for the three months ended September 30, 2024, with revenue per day filled rising to $2,058, a 3.6% increase from the prior year [163]. Strategic Initiatives - The company continues to explore acquisition opportunities to enhance its business, including potential targets like WSG and Mint [117].

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $315 million, down 7% sequentially and 29% year-over-year, primarily due to declines in Travel, Nurse, and Allied segments [30] - Gross profit was $64 million, with a gross margin of 20.4%, down 40 basis points sequentially and 160 basis points year-over-year, attributed to bill pay spread compression [31] - Adjusted EBITDA for the quarter was $10 million, representing a margin of 3.3%, reflecting lower revenue and gross margin pressure [34] Business Line Data and Key Metrics Changes - Nurse and Allied reported revenue of $265 million, down 9% sequentially and 33% year-over-year, with Travel down 11% sequentially and 41% year-over-year [37] - Home care staffing business grew 4% sequentially and 13% year-over-year, driven by recent PACE program wins [39] - Physician staffing revenue was $50 million, up 10% year-over-year and 4% sequentially, with billable days increasing by 1% sequentially and 6% year-over-year [40] Market Data and Key Metrics Changes - Orders in the Travel, Nurse, and Allied business were up approximately 20% over Q3, indicating a potential market inflection point [10] - The local or per diem business reported better-than-expected results, stabilizing with billable hours declining at a slower pace [38] - The education business was down 6% year-over-year and 37% sequentially, primarily due to school calendar timing [40] Company Strategy and Development Direction - The company aims for sustained long-term profitable growth, focusing on home care, physician staffing, and education as key growth areas [9] - The company is investing in technology, particularly the Intellify platform, to enhance operational efficiencies and client management [19][20] - M&A opportunities are being explored to expand the portfolio and reach within high-growth markets [25][69] Management's Comments on Operating Environment and Future Outlook - Management noted a highly competitive market, particularly in Travel, Nurse, and Allied, with pressures on bill pay spread limiting gross margin normalization [8] - The company anticipates Q4 revenue between $300 million and $310 million, reflecting increased stability in travel and steady bill rates [21] - Management expressed confidence in approaching an inflection point for growth in the Travel, Nurse, and Allied business, supported by strong demand in other segments [26] Other Important Information - The company repurchased 800,000 shares for about $12 million in Q3, reflecting a commitment to creating shareholder value [24] - The company ended Q3 with $64 million in cash and no outstanding debt, positioning it well for growth initiatives [41] Q&A Session Summary Question: Can you unpack the Q4 revenue guidance? - Management indicated that the sequential decline is primarily due to a labor disruption, estimating a revenue impact between $5 million and $10 million [50] Question: What is the outlook for gross margins? - Management noted that margin pressure is mainly from the pay-bill housing spread, particularly in the travel business, and emphasized the need for alignment between clinician pay expectations and bill rates [56][57] Question: What is the status of orders and their quality? - Management confirmed that over 50% of orders are not at market rates, but there is optimism that the gap between orders and clinician pay expectations will close [61][62] Question: What is the growth outlook for home health care staffing? - The home health staffing business is running at over $100 million and is expected to grow further, with healthy margins compared to other segments [70][71] Question: What is the current status of MSP contracts? - Management reported that spending under management is between $650 million to $700 million, with a capture rate of about 73% [75][79]

Core Insights - Cross Country Healthcare (CCRN) reported a revenue of $315.12 million for the quarter ended September 2024, reflecting a decline of 28.8% year-over-year, while EPS was $0.12 compared to $0.39 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $310.05 million by 1.63%, and the EPS surpassed the consensus estimate of $0.10 by 20% [1] Financial Performance Metrics - Nurse and allied staffing FTEs were reported at 7,660, slightly below the estimated 7,692 [3] - Physician staffing metrics showed days filled in HRS at 24,424, exceeding the average estimate of 18,841 [3] - Revenue per day filled for physician staffing was $2,058, higher than the estimated $1,889 [3] - Average revenue per FTE per day for nurse and allied staffing was $373, slightly above the estimated $370.50 [3] - Revenue from physician staffing was $50.27 million, surpassing the estimated $48.26 million, marking a 10% increase year-over-year [3] - Revenue from nurse and allied staffing was $264.85 million, compared to the estimated $261.73 million, but represented a significant decline of 33.2% year-over-year [3] Stock Performance - Cross Country's shares have decreased by 7.6% over the past month, contrasting with a 0.7% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Cross Country Healthcare (CCRN) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this provider of health care staffing and workforce management services would post earnings of $0.14 per share when it actually produced earnings of $0.10, deliveri ...