Forward Looking Statements This presentation contains 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, and are subject to the "safe harbor" created by those sections. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include words such as "expects", "anticipates", ...

Cross Country Healthcare (CCRN) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this provider of health care staffing and workforce management services would post earnings of $0.11 per share when it actually produced earnings of $0.04, deliver ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ——————— FORM 10-Q ——————— ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2025 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From _________ to _________ ——————— CROSS COUNTRY HEALTHCARE, INC. (Exact name of registrant as specified in its charter) ——————— Delaware 0-33169 13-4066229 (S ...

Exhibit 99.1 | | | | | Variance | | Variance | | --- | --- | --- | --- | --- | --- | --- | | | | | | Q1 2025 vs | | Q1 2025 vs | | Dollars are in thousands, except per share amounts | | Q1 2025 | | Q1 2024 | | Q4 2024 | | Revenue | $ | 293,408 | | (23) % | | (5) % | | Gross profit margin* | | 20.0 % | | (40) bps | | — bps | | Net loss attributable to common stockholders | $ | (490) | | (118) % | | 87 % | | Diluted EPS | $ | (0.02) | $ | (0.10) | $ | 0.10 | | Adjusted EBITDA* | $ | 8,619 | | (44) % | | (7) % ...

Core Insights - Cross Country Healthcare (CCRN) reported a revenue of $309.94 million for the quarter ended December 2024, reflecting a year-over-year decline of 25.1% and an EPS of $0.04 compared to $0.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $306.2 million by 1.22%, while the EPS fell short of the consensus estimate of $0.11, resulting in a surprise of -63.64% [1] Financial Performance - The company experienced a return of -7.5% over the past month, compared to a -3.5% change in the Zacks S&P 500 composite, and currently holds a Zacks Rank 3 (Hold) [3] - Nurse and allied staffing reported FTEs of 7,621, surpassing the two-analyst average estimate of 7,441 [4] - Physician staffing generated revenue per day filled of $2,085, exceeding the two-analyst average estimate of $1,910, with days filled in HRS totaling 25,427 compared to the estimated 19,207 [4] - Revenue from physician staffing was $53.01 million, above the four-analyst average estimate of $51.59 million, marking a year-over-year increase of 13.1% [4] - Revenue from nurse and allied staffing was $256.93 million, slightly above the four-analyst average estimate of $254.81 million, but represented a year-over-year decline of 30% [4]

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]