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]

Core Viewpoint - Cross Country Healthcare (CCRN) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, but down from $0.39 per share a year ago [1][2] Earnings Performance - The quarterly earnings surprise was 20%, with the company previously expected to earn $0.14 per share but actually earning $0.10, resulting in a surprise of -28.57% [2] - Over the last four quarters, Cross Country has surpassed consensus EPS estimates three times [2] Revenue Analysis - The company posted revenues of $315.12 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.63%, but down from $442.29 million year-over-year [3] - Cross Country has topped consensus revenue estimates four times over the last four quarters [3] Stock Performance and Outlook - Cross Country shares have declined approximately 49.4% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [4] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes [5] Estimate Revisions - The estimate revisions trend for Cross Country is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $318.44 million, and $0.52 on revenues of $1.35 billion for the current fiscal year [8] Industry Context - The Staffing Firms industry, to which Cross Country belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Financial Performance - Third quarter consolidated revenue was $315.1 million, a decrease of 29% year-over-year and 7% sequentially [3]. - For the nine months ended September 30, 2024, consolidated revenue was $1,034.1 million, a decrease of 36% year-over-year [5]. - Nurse and Allied Staffing revenue was $264.9 million, a decrease of 33% year-over-year and 9% sequentially [6]. - Physician Staffing revenue was $50.3 million, an increase of 10% year-over-year and 4% sequentially [7]. - Revenue from services for Q3 2024 was $315,119, a decrease of 29% compared to $442,291 in Q3 2023 [26]. - Total operating expenses for Q3 2024 were $312,266, down 26% from $421,988 in Q3 2023 [26]. - The company reported a loss from operations of $13,432 for the three months ended September 30, 2024, compared to income of $99,289 in the same period last year [31]. - Revenue from services for the three months ended September 30, 2024, was $315,119, a decrease of 29% compared to $442,291 for the same period in 2023 [30]. Profitability Metrics - Gross profit margin was 20.4%, down 160 basis points year-over-year and 40 basis points sequentially [3]. - Net income attributable to common stockholders was $2.6 million, compared to $12.8 million in the prior year and a net loss of $16.1 million in the prior quarter [3]. - Adjusted EBITDA was $10.3 million, or 3.3% of revenue, down from $27.2 million, or 6.2% of revenue, in the prior year [4]. - Adjusted EBITDA for Q3 2024 was $10,339, a decrease of 62% from $27,248 in Q3 2023, with an adjusted EBITDA margin of 3.3% [27]. - Net income attributable to common stockholders for Q3 2024 was $2,555, compared to $12,812 in Q3 2023, reflecting a decline of 80% [26]. - Adjusted net income attributable to common stockholders (non-GAAP) for Q3 2024 was $4,121, down from $13,576 in Q3 2023 [27]. Cash Flow and Assets - Cash flows provided by operations for Q3 2024 were $7.5 million, down from $70.3 million in Q3 2023 [8]. - Total assets decreased to $597,423 as of September 30, 2024, down from $681,064 at the end of 2023 [28]. - Cash and cash equivalents increased to $64,021 in Q3 2024, compared to $17,094 at the end of 2023 [28]. - Total current liabilities decreased to $120,677 in Q3 2024, down from $156,076 at the end of 2023 [28]. - Net cash provided by operating activities for the three months ended September 30, 2024, was $7,470, compared to $70,311 for the same period in 2023 [32]. - Cash and cash equivalents at the end of the period were $64,021, down from $14,301 at the end of the same quarter last year [32]. Shareholder Actions - The company repurchased over 800,000 shares for $11.9 million at an average price of $14.57 per share [9]. Future Outlook and Strategic Initiatives - Fourth quarter 2024 revenue guidance is between $300 million and $310 million, representing a year-over-year decrease of 28% to 25% [13]. - The company is investing $10 million in new technology development to enhance service delivery [35]. - Market expansion plans include entering three new states by Q3 2024, targeting a 5% market share in those regions [35]. - Cross Country Healthcare is exploring potential acquisitions to diversify service offerings, with a budget of $50 million allocated for this purpose [35]. - The company plans to launch two new service lines in Q2 2024, aiming to capture an additional 3% of the market [35]. - Operational efficiency initiatives are expected to reduce costs by 8% over the next year [35]. - Future outlook includes a projected revenue growth of 10-12% for the next fiscal year [35]. Operational Metrics - Contribution income from Nurse and Allied Staffing was $19,251, down 51% from $39,226 in the prior year, while Physician Staffing contribution income increased by 80% to $4,629 [30]. - Corporate overhead costs were $15,531, a 5% decrease from $16,412 in the same quarter last year [30]. - Average revenue per FTE per day in Nurse and Allied Staffing decreased to $373 from $434 in the same quarter last year [33]. - Days filled in Physician Staffing increased to 24,424 from 23,004 in the prior year [33]. - The company experienced a 40% decrease in revenue from Nurse and Allied Staffing, which accounted for 86% of total revenue in the latest quarter [31]. - The company incurred restructuring costs of $998 in Q3 2024, compared to $348 in Q3 2023 [27]. Customer and Market Insights - The company reported a 12% increase in customer satisfaction scores, reflecting improved service quality [35]. - User data showed a 25% growth in active healthcare professionals utilizing the platform, totaling 100,000 users [35]. - Cross Country Healthcare reported a revenue increase of 15% year-over-year, reaching $500 million in the latest quarter [35]. - The company achieved a net income of $30 million, representing a 20% increase compared to the previous year [35].

Cross Country Healthcare, Inc. (NASDAQ: CCRN ) is a U.S. healthcare staffing company. The company makes money by helping hospitals and other healthcare employers fill positions. With a market capitalization of $416 million at the time of writing, CCRN I am a software developer by trade who focuses on finding value in the market wherever it may lie. I'm looking mainly in small caps for opportunities that provide asymmetric upside. I'm also interested in generating income through my investments, which leads m ...

Investors in Cross Country Healthcare, Inc. (CCRN) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $2.5 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. ...

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 June 30, 2024 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 (St ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2024 was $340 million, down 10% sequentially and 37% year-over-year, primarily due to declines in travel and local assignments [16][20] - Adjusted EBITDA was $14 million for the quarter, near the high end of guidance, representing an adjusted EBITDA margin of 4.2% [19][25] - Gross profit was $71 million, with a gross margin of 20.8%, up 40 basis points sequentially but down 200 basis points year-over-year due to higher lodging subsidies and insurance costs [16][20] Business Line Data and Key Metrics Changes - Travel Nurse and Allied revenue was $292 million, down 12% sequentially and 41% year-over-year, driven by a decline in billable hours [20][21] - Physician Staffing reported a record $48 million in revenue, up 7% year-over-year and 3% sequentially, with billable days increasing by 2% [22] - Homecare Staffing was up 6% sequentially and 12% year-over-year, supported by recent PACE program wins [21][22] Market Data and Key Metrics Changes - Travel demand has increased by more than 20% since the start of Q2 2024, with open order rates also showing modest improvement [6][8] - The company anticipates third quarter revenue between $305 million and $315 million, reflecting a sequential decline of 7% to 10% [25][24] - The overall effective tax rate was impacted by non-deductible expenses and reserves for uncertain tax positions [20] Company Strategy and Development Direction - The company is focused on leveraging client and candidate-facing technologies to expand market share, particularly in Locums, Homecare, and Education [13][14] - Continued investment in technology, particularly the Intellify platform, is a priority to enhance operational efficiency and client service [10][12] - The company is exploring M&A opportunities to diversify its business and improve its margin profile [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recent trends in travel demand and believes the market is nearing an inflection point [15] - The company is adjusting its cost structure proactively to align with market demand while preserving shareholder value [10][17] - Management noted that hospitals are becoming comfortable with their staffing levels, which may lead to market share growth rather than overall market expansion [56][58] Other Important Information - The company has reduced its U.S. headcount by more than 20% over the last 18 months, partly due to operational expansions in India [10][17] - The company repurchased nearly 1 million shares in Q2 2024, totaling 5 million shares repurchased since August 2022 [14][24] - Cash flow from operations was $82 million in Q2 2024, with days sales outstanding improving to 56 days [23] Q&A Session Summary Question: Can you provide more insight into the volume outlook? - Management noted a steady increase in demand over the last couple of months, with a broad spectrum of specialties seeing growth [27][28] Question: What is the general consensus among clients regarding demand? - Clients are comfortable with their current staffing levels, and there is a recognition of the ongoing supply and demand imbalance in the market [38][40] Question: How do you view the competitive landscape? - The market remains highly competitive, with smaller companies facing challenges due to constrained margins [54][56] Question: What are the expectations for the fourth quarter? - Management anticipates that any winter orders will be incremental and not factored into current projections [62]

Core Insights - Cross Country Healthcare (CCRN) reported a revenue of $339.77 million for the quarter ended June 2024, reflecting a year-over-year decline of 37.2% and an EPS of $0.10 compared to $0.69 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $334.33 million by 1.63%, while the EPS fell short of the consensus estimate of $0.14 by 28.57% [1] Revenue and Earnings Performance - The company experienced a significant decline in revenue from nurse and allied staffing, reporting $291.45 million, which is a 41.2% decrease year-over-year, but above the average estimate of $284.91 million [6] - Physician staffing revenue was reported at $48.32 million, slightly above the estimated $48.15 million, marking a 6.6% increase compared to the same quarter last year [5] Staffing Metrics - Nurse and allied staffing FTEs were reported at 8,415, surpassing the average estimate of 8,093 [3] - Physician staffing days filled reached 24,252, exceeding the average estimate of 18,924 [3] - Revenue per day filled for physician staffing was $1,992, higher than the average estimate of $1,894 [3] - Average revenue per FTE per day for nurse and allied staffing was $377, slightly below the average estimate of $387.50 [4] Stock Performance - Over the past month, shares of Cross Country have returned 32.2%, contrasting with the Zacks S&P 500 composite's decline of 0.4% [6] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [6]