The accompanying condensed consolidated financial statements include the accounts of Cross Country Healthcare, Inc. and its direct and indirect wholly-owned subsidiaries (collectively, the Company). In the opinion of management, all adjustments necessary for a fair presentation of such unaudited condensed consolidated financial statements have been included. All such adjustments consisted of all normal recurring items, including the elimination of all intercompany transactions and balances. These unaudited ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2024 was $379 million, down 8% sequentially and 39% year-over-year, primarily due to declines in travel and local assignments [92] - Gross profit for the quarter was $77 million, representing a gross margin of 20.4%, down 150 basis points sequentially and 200 basis points year-over-year [42] - Adjusted EBITDA for the quarter was $15 million, with an adjusted EBITDA margin of 4% [71] Business Line Data and Key Metrics Changes - Nurse and Allied reported revenue of $332 million, down 10% sequentially and 43% year-over-year [50] - Travel Nurse and Allied revenue was down 11% sequentially and 48% year-over-year, with billable hours down 9% sequentially [50] - Physician Staffing revenue was $47 million, up 16% year-over-year and flat sequentially, driven by higher billable days and revenue per day [73] Market Data and Key Metrics Changes - The local business experienced a revenue decline of 36% year-over-year and 19% sequentially, primarily due to fewer billable hours [50] - The home care business was up mid-single digits both sequentially and year-over-year, indicating growth potential [87] - Demand for locum tenens is expected to grow as hospitals seek more flexible staffing solutions [6] Company Strategy and Development Direction - The company is focused on targeted investments in technology and businesses to enhance competitive positioning and operational excellence [89] - The Intellify platform is seen as a critical component of the company's value proposition, with strong interest in the market [89] - The company aims to close several accretive acquisitions to diversify its platform and improve margin profiles [90] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand leveling off, although it is too early to confirm a trend [5] - The company anticipates a further sequential decline in revenue for Q2 in the mid-teens due to continued softness in travel demand [50] - Management highlighted the importance of maintaining capacity to capitalize on market rebounds [66] Other Important Information - The company has reduced its U.S. headcount by over 20% since the beginning of the year, reflecting efforts to align costs with market conditions [66] - The company ended Q1 with $5 million in cash and no outstanding debt, positioning it well for future investments [96] - The company was recently recognized as one of Newsweek's Greatest Workplaces for Diversity in 2024, reflecting its strong workplace culture [68] Q&A Session Summary Question: What are the demand trends for the first four months of the year? - Management noted that demand has remained soft and has not yet rebounded, with opportunities in programs that have been won still ramping up [77] Question: How is the locum space performing? - Management expressed bullishness on the locum space, citing the need for physicians as a key component for hospital systems to drive revenue [79] Question: What is the outlook for the second quarter? - The company is guiding for revenue between $330 million and $340 million, representing a sequential decline of 10% to 13% [74] Question: How is the company managing its cost structure? - The company has proactively managed costs, resulting in a significant reduction in headcount and leveraging operations in India for cost savings [66] Question: What is the status of the Intellify platform? - Management confirmed that the Intellify platform has a robust pipeline and is expected to contribute to stronger results in the second half of 2024 [30]

For the quarter ended March 2024, Cross Country Healthcare (CCRN) reported revenue of $379.17 million, down 39.1% over the same period last year. EPS came in at $0.19, compared to $0.84 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $373.73 million, representing a surprise of +1.46%. The company delivered an EPS surprise of +11.77%, with the consensus EPS estimate being $0.17.While investors closely watch year-over-year changes in headline numbers -- revenue and ear ...

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) Cross Country Healthcare's Q1 2024 results show significant declines in key financial metrics, though within guidance, with strategic adjustments for long-term growth [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Cross Country Healthcare reported a significant decline in consolidated revenue, net income, and Adjusted EBITDA for Q1 2024 compared to the prior year and prior quarter, although these metrics were within guidance ranges. Gross profit margin also decreased Q1 2024 Consolidated Financial Performance | Metric | Q1 2024 | Variance Q1 2024 vs Q1 2023 | Variance Q1 2024 vs Q4 2023 | | :--------------------------------------- | :------ | :-------------------------- | :-------------------------- | | Revenue (in thousands) | $379,174 | (39)% | (8)% | | Gross profit margin* | 20.4% | (200) bps | (150) bps | | Net income attributable to common stockholders (in thousands) | $2,692 | (91)% | (70)% | | Diluted EPS | $0.08 | $(0.73) | $(0.18) | | Adjusted EBITDA* (in thousands) | $15,282 | (71)% | (26)% | | Adjusted EBITDA margin* | 4.0% | (440) bps | (100) bps | | Adjusted EPS* | $0.19 | $(0.65) | $(0.10) | | Cash flows provided by operations (in thousands) | $6,011 | (87)% | (50)% | - Revenue, Adjusted EBITDA, and Adjusted EPS were all within the company's guidance ranges for Q1 2024[1](index=1&type=chunk) [CEO Commentary and Business Overview](index=1&type=section&id=First%20Quarter%20Business%20Highlights) The CEO highlighted the company's ability to perform in a challenging market, noting positive momentum in physician staffing, homecare, and education. The company is adjusting its infrastructure due to near-term headwinds in contingent nursing labor, focusing on long-term growth and profitability as a tech-enabled workforce solutions provider - The company is pleased with momentum in physician staffing, homecare, and education[18](index=18&type=chunk) - Near-term headwinds for contingent nursing labor are leading the company to right-size its infrastructure while managing for the long-term[18](index=18&type=chunk) - The company's strategy is to execute as a tech-enabled workforce solutions provider, aiming for growth and improved profitability[18](index=18&type=chunk) [Segment Performance](index=2&type=section&id=Quarterly%20Business%20Segment%20Highlights) Segment performance shows a significant decline in Nurse and Allied Staffing, while Physician Staffing demonstrates strong year-over-year growth [Nurse and Allied Staffing](index=2&type=section&id=Nurse%20and%20Allied%20Staffing) The Nurse and Allied Staffing segment experienced significant year-over-year and sequential declines in revenue and contribution income, alongside a decrease in average field contract personnel and revenue per FTE per day Nurse and Allied Staffing Performance (Q1 2024) | Metric | Q1 2024 | Q1 2023 | Q4 2023 | YoY Change | QoQ Change | | :-------------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Revenue (in thousands) | $332,200 | $582,302 | $367,155 | (43)% | (10)% | | Contribution income (in thousands) | $27,200 | $67,200 | $33,900 | (60)% | (20)% | | Average field contract personnel (FTE) | 9,124 | 12,518 | 9,570 | - | - | | Revenue per FTE per day | $397 | $513 | $414 | - | - | [Physician Staffing](index=2&type=section&id=Physician%20Staffing) The Physician Staffing segment demonstrated strong year-over-year growth in revenue and contribution income, with revenue remaining flat sequentially. Total days filled and revenue per day filled also increased year-over-year Physician Staffing Performance (Q1 2024) | Metric | Q1 2024 | Q1 2023 | Q4 2023 | YoY Change | QoQ Change | | :-------------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Revenue (in thousands) | $47,000 | $40,405 | $46,880 | 16% | —% | | Contribution income (in thousands) | $3,100 | $1,700 | $1,900 | 82% | 61% | | Total days filled | 23,785 | 22,097 | 23,578 | - | - | | Revenue per day filled | $1,976 | $1,829 | $1,988 | - | - | [Cash Flow and Balance Sheet Highlights](index=2&type=section&id=Cash%20Flow%20and%20Balance%20Sheet%20Highlights) The company reported a significant decrease in cash flow from operations year-over-year and sequentially. As of March 31, 2024, the company had no debt outstanding and maintained substantial borrowing base availability under its ABL facility. Share repurchases were also conducted during the quarter Cash Flow from Operations (in thousands) | Period | Net Cash Provided by Operating Activities | | :--------------------------------- | :-------------------------------------- | | Three months ended March 31, 2024 | $6,011 | | Three months ended March 31, 2023 | $46,865 | | Three months ended December 31, 2023 | $12,074 | - As of March 31, 2024, the Company had **$5.2 million** in cash and cash equivalents with no debt outstanding[6](index=6&type=chunk) - Borrowing base availability under the ABL was **$200.1 million**, with **$186.3 million** net of letters of credit[6](index=6&type=chunk) - The company repurchased approximately **300,000 shares** of common stock for **$6.4 million** during the quarter[1](index=1&type=chunk)[21](index=21&type=chunk) [Second Quarter 2024 Outlook](index=2&type=section&id=Outlook%20for%20Second%20Quarter%202024) The company provides Q2 2024 guidance, anticipating continued year-over-year and sequential declines in key financial metrics [Q2 2024 Guidance](index=2&type=section&id=Q2%202024%20Guidance) Cross Country Healthcare provided guidance for the second quarter of 2024, projecting further year-over-year and sequential declines in revenue, Adjusted EBITDA, and Adjusted EPS Q2 2024 Financial Guidance | Metric | Q2 2024 Range | YoY Change | QoQ Change | | :---------------- | :-------------------------- | :--------- | :--------- | | Revenue | $330 million - $340 million | (39)% - (37)% | (13)% - (10)% | | Adjusted EBITDA* | $10.0 million - $15.0 million | (77)% - (66)% | (35)% - (2)% | | Adjusted EPS* | $0.10 - $0.20 | $(0.59) - $(0.49) | $(0.09) - $0.01 | - The Q2 2024 estimates are forward-looking and do not include the potential impact of future divestitures, mergers, acquisitions, changes in debt structure, or significant share repurchases[36](index=36&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Overview of Cross Country Healthcare's business, mission, and investor communication details [About Cross Country Healthcare](index=3&type=section&id=ABOUT%20CROSS%20COUNTRY%20HEALTHCARE) Cross Country Healthcare is a market-leading, tech-enabled workforce solutions and advisory firm with 38 years of experience, focused on solving labor challenges and achieving high-quality outcomes through data-driven insights. The company emphasizes diversity, equality, and inclusion as core to its corporate social responsibility - Cross Country Healthcare is a market-leading, tech-enabled workforce solutions and advisory firm with **38 years** of industry experience[38](index=38&type=chunk) - The company helps clients address complex labor-related challenges and achieve high-quality outcomes by reducing complexity and improving visibility through data-driven insights[38](index=38&type=chunk) - Diversity, equality, and inclusion are central to the organization's corporate social responsibility program and core values[38](index=38&type=chunk) [Conference Call and Investor Relations](index=3&type=section&id=INVITATION%20TO%20CONFERENCE%20CALL) The company announced details for its Q1 2024 earnings conference call, including webcast and dial-in information, and provided resources for accessing press releases and SEC filings - A conference call to discuss Q1 2024 financial results was scheduled for Wednesday, May 1, 2024, at 5:00 P.M. Eastern Time[24](index=24&type=chunk) - The call was webcast live and accessible via the company's investor relations website (ir.crosscountry.com) or by phone[24](index=24&type=chunk) - Replays of the webcast and conference call were made available for a limited period[24](index=24&type=chunk) - Additional company information, press releases, and SEC filings can be accessed online at ir.crosscountry.com[25](index=25&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section explains the use of non-GAAP financial measures and provides detailed reconciliations to their GAAP equivalents [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP financial measures such as gross profit margin, Adjusted EBITDA, and Adjusted EPS to supplement GAAP results, believing they offer useful insights into operating performance and comparability. These measures exclude certain items not indicative of future operating performance, and reconciliations to comparable GAAP measures are provided - Non-GAAP financial measures (e.g., gross profit margin, Adjusted EBITDA, Adjusted EPS) are provided as additional information and are not substitutes for GAAP measures[39](index=39&type=chunk) - Management believes non-GAAP measures are useful for evaluating performance and provide a more useful comparison of underlying business performance by excluding items not indicative of future operating performance[39](index=39&type=chunk) - Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial statement tables[39](index=39&type=chunk) - The company has not provided reconciliations for forward-looking non-GAAP guidance (Adjusted EBITDA and Adjusted EPS) due to the inherent uncertainty and difficulty in predicting the impact and timing of potential charges or gains[26](index=26&type=chunk)[27](index=27&type=chunk) [Adjusted EBITDA Reconciliation](index=6&type=section&id=Adjusted%20EBITDA%20Reconciliation) The company provides a reconciliation of Net income attributable to common stockholders to Adjusted EBITDA, detailing adjustments for interest expense, income tax expense, depreciation and amortization, and various non-recurring or non-operating items Adjusted EBITDA Reconciliation (in thousands) | Item | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :----------------------------------------- | :------------- | :------------- | :---------------- | | Net income attributable to common stockholders | $2,692 | $29,436 | $9,038 | | Interest expense | 462 | 3,690 | 586 | | Income tax expense | 997 | 10,683 | 3,931 | | Depreciation and amortization | 4,642 | 4,904 | 4,471 | | Restructuring costs | 938 | 429 | 863 | | Legal and other losses | 3,650 | 1,125 | — | | Impairment charges | 604 | — | — | | Other income, net | (1,230) | (20) | (175) | | Equity compensation | 1,198 | 1,775 | 1,166 | | System conversion costs | 1,329 | 129 | 668 | | **Adjusted EBITDA** | **$15,282** | **$52,141** | **$20,592** | | Adjusted EBITDA margin | 4.0% | 8.4% | 5.0% | - Adjusted EBITDA 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, impairment charges, and other specified non-operating items[34](index=34&type=chunk) [Adjusted EPS Reconciliation](index=6&type=section&id=Adjusted%20EPS%20Reconciliation) The company presents a reconciliation of GAAP Diluted EPS to Adjusted EPS, adjusting for the per-share impact of restructuring costs, legal and other losses, impairment charges, other income, system conversion costs, and their tax effects Adjusted EPS Reconciliation | Item | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :----------------------------------------- | :------------- | :------------- | :---------------- | | Diluted EPS, GAAP | $0.08 | $0.81 | $0.26 | | Non-GAAP adjustments - pretax: | | | | | Restructuring costs | 0.02 | 0.01 | 0.02 | | Legal and other losses | 0.10 | 0.03 | — | | Impairment charges | 0.02 | — | — | | Other income, net | (0.03) | — | — | | System conversion costs | 0.04 | — | 0.03 | | Tax impact of non-GAAP adjustments | (0.04) | (0.01) | (0.02) | | **Adjusted EPS, non-GAAP** | **$0.19** | **$0.84** | **$0.29** | - Adjusted EPS 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, impairment charges, system conversion costs, and nonrecurring income tax adjustments[34](index=34&type=chunk) [Forward-Looking Statements](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines the inherent risks and uncertainties associated with forward-looking statements, cautioning against undue reliance [Disclaimer and Risk Factors](index=4&type=section&id=Disclaimer%20and%20Risk%20Factors) The report includes forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially. These factors include macroeconomic conditions, demand for healthcare services, ability to attract personnel, cybersecurity risks, government regulation, and the impact of artificial intelligence, among others - Forward-looking statements are predictive in nature and involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[41](index=41&type=chunk) - Key risk factors include the overall macroeconomic environment (inflation, interest rates), demand for healthcare services, ability to attract and retain qualified personnel, costs of short-term housing, information system functioning, cybersecurity risks, government regulation, and social/ethical/security issues related to AI[41](index=41&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's opinions only as of the press release date[28](index=28&type=chunk) - The company undertakes no obligation to update or revise forward-looking statements, except as required by law[28](index=28&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Comprehensive presentation of the company's consolidated statements of operations, balance sheets, and cash flows [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations provide a detailed breakdown of the company's revenues, operating expenses, and net income for the three months ended March 31, 2024, March 31, 2023, and December 31, 2023 Consolidated Statements of Operations (in thousands, except per share data) | Item | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :----------------------------------------- | :------------- | :------------- | :---------------- | | Revenue from services | $379,174 | $622,707 | $414,035 | | Direct operating expenses | 301,877 | 483,284 | 323,546 | | Selling, general and administrative expenses | 63,252 | 84,260 | 67,566 | | Bad debt expense | 1,290 | 4,908 | 4,165 | | Depreciation and amortization | 4,642 | 4,904 | 4,471 | | Restructuring costs | 938 | 429 | 863 | | Legal and other losses | 3,650 | 1,125 | — | | Impairment charges | 604 | — | — | | Total operating expenses | 376,253 | 578,910 | 400,611 | | Income from operations | 2,921 | 43,797 | 13,424 | | Interest expense | 462 | 3,690 | 586 | | Other income, net | (1,230) | (12) | (131) | | Income before income taxes | 3,689 | 40,119 | 12,969 | | Income tax expense | 997 | 10,683 | 3,931 | | Net income attributable to common stockholders | $2,692 | $29,436 | $9,038 | | Net income per share - Diluted | $0.08 | $0.81 | $0.26 | | Weighted average common shares outstanding - Diluted | 34,597 | 36,560 | 34,685 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present the company's financial position, including assets, liabilities, and stockholders' equity, as of March 31, 2024, and December 31, 2023 Consolidated Balance Sheets (in thousands) | Item | March 31, 2024 | December 31, 2023 | | :----------------------------------------- | :------------- | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $5,242 | $17,094 | | Accounts receivable, net | 357,458 | 372,352 | | Total current assets | 387,318 | 415,153 | | Property and equipment, net | 28,200 | 27,339 | | Goodwill | 135,430 | 135,430 | | Total assets | $648,439 | $679,317 | | **Liabilities and Stockholders' Equity:** | | | | Accounts payable and accrued expenses | $68,921 | $85,333 | | Accrued compensation and benefits | 51,606 | 52,297 | | Total current liabilities | 128,442 | 148,587 | | Total liabilities | 180,249 | 205,924 | | Total stockholders' equity | 468,190 | 473,393 | | Total liabilities and stockholders' equity | $648,439 | $679,317 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Summary%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Summary Condensed Consolidated Statements of Cash Flows detail the net cash provided by operating, investing, and financing activities for the three months ended March 31, 2024, March 31, 2023, and December 31, 2023 Summary Condensed Consolidated Statements of Cash Flows (in thousands) | Item | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :-------------------------------- | :------------- | :------------- | :---------------- | | Net cash provided by operating activities | $6,011 | $46,865 | $12,074 | | Net cash used in investing activities | (2,210) | (3,496) | (2,875) | | Net cash used in financing activities | (15,653) | (46,681) | (6,416) | | Change in cash and cash equivalents | (11,852) | (3,313) | 2,793 | | Cash and cash equivalents at end of period | $5,242 | $291 | $17,094 | [Segment Data and Other Financial Data](index=8&type=section&id=Segment%20Data%20and%20Other%20Financial%20Data) This section provides detailed revenue and contribution income by segment, along with key operational statistics for Nurse and Allied Staffing and Physician Staffing, and definitions for various financial and statistical measures Segment Revenue and Contribution Income (in thousands) | Segment | Q1 2024 Revenue | Q1 2023 Revenue | Q4 2023 Revenue | Q1 2024 Contribution Income | Q1 2023 Contribution Income | Q4 2023 Contribution Income | | :-------------------- | :-------------- | :-------------- | :-------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Nurse and Allied Staffing | $332,186 | $582,302 | $367,155 | $27,183 | $67,169 | $33,901 | | Physician Staffing | $46,988 | $40,405 | $46,880 | $3,138 | $1,724 | $1,947 | | Total | $379,174 | $622,707 | $414,035 | $30,321 | $68,893 | $35,848 | Other Financial and Statistical Data | Metric | March 31, 2024 | March 31, 2023 | December 31, 2023 | | :---------------------------------------- | :------------- | :------------- | :---------------- | | Gross profit (in thousands) | $77,297 | $139,423 | $90,489 | | Consolidated gross profit margin | 20.4% | 22.4% | 21.9% | | Nurse and Allied Staffing FTEs | 9,124 | 12,518 | 9,570 | | Average Nurse and Allied Staffing revenue per FTE per day | $397 | $513 | $414 | | Physician Staffing Days filled | 23,785 | 22,097 | 23,578 | | Physician Staffing Revenue per day filled | $1,976 | $1,829 | $1,988 | - Definitions are provided for key financial measures such as Adjusted EBITDA, Adjusted EPS, Contribution income, and operational statistics like FTEs and Revenue per day filled[34](index=34&type=chunk)

BOCA RATON, Fla.--(BUSINESS WIRE)--Cross Country Healthcare, Inc. (the “Company”) (Nasdaq: CCRN) announced today that it is scheduled to participate in the Oppenheimer 34th Annual Healthcare Med-Tech & Services Conference taking place March 12-13, 2024. William J. Burns, Executive Vice President & Chief Financial Officer and Josh Vogel, Vice President, Investor Relations, will participate in virtual one-on-one investor meetings on Tuesday, March 12, 2024. No formal presentation will be made. About Cross Co ...

31 Revenue increased $72.1 million, or 67.8% to $178.3 million for the year ended December 31, 2023, as compared to $106.2 million for the year ended December 31, 2022, primarily related to the Mint acquisition as well as an increase in volume in most specialties and an improved mix of higher bill rate specialties. Contribution income for the year ended December 31, 2023, increased $4.3 million or 77.7% to $9.8 million as compared to $5.5 million in the year ended December 31, 2022, driven by higher revenue ...

BOCA RATON, Fla.--(BUSINESS WIRE)--Cross Country Healthcare, a market-leading, tech-enabled workforce solutions platform and advisory firm, is proud to announce that John A. Martins has been recognized on the Staffing Industry Analysts (SIA) Staffing 100 list of the most influential people in the industry. "I'm deeply honored to be included in the SIA's Staffing 100 list. This recognition is a testament to our team's commitment to driving innovation and excellence in the staffing industry,” said John A. ...

For the quarter ended December 2023, Cross Country Healthcare (CCRN) reported revenue of $414.04 million, down 34.1% over the same period last year. EPS came in at $0.29, compared to $1.09 in the year-ago quarter.The reported revenue represents a surprise of +2.88% over the Zacks Consensus Estimate of $402.44 million. With the consensus EPS estimate being $0.27, the EPS surprise was +7.41%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compar ...

Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q4 2023 Earnings Conference Call February 21, 2024 5:00 PM ET Company Participants Josh Vogel – Vice President-Investor Relations John Martins – President and Chief Executive Officer Bill Burns – Chief Financial Officer Marc Krug – Group President of Delivery Conference Call Participants Kevin Fischbeck – Bank of America Brian Tanquilut – Jefferies Trevor Romeo – William Blair Tobey Sommer – Truist Securities Constantine Davides – Citizens JMP Kevin Steinke – Ba ...

Financial Performance - Fourth quarter revenue was $414.0 million, a decrease of 34% year-over-year, while full year revenue was $2.0 billion, down 28% from the previous year[4] - Gross profit margin for Q4 2023 was 21.9%, a decline of 20 basis points year-over-year, and the full year gross profit margin was 22.3%, down 10 basis points[4] - Net income attributable to common stockholders for Q4 2023 was $9.0 million, or $0.26 per diluted share, compared to $38.8 million, or $1.06 per diluted share in Q4 2022, representing a 77% decrease[4] - Adjusted EBITDA for Q4 2023 was $20.6 million, a decrease of 64% year-over-year, with an adjusted EBITDA margin of 5.0%[4] - Revenue for the Nurse and Allied Staffing segment was $46.9 million, an increase of 26% year-over-year[34] - Adjusted EPS for Q1 2024 is projected to be between $0.15 and $0.25, down from $0.69 in the prior year[38] - Adjusted net income attributable to common stockholders for Q4 2023 was $10,169 million, down from $40,300 million in Q4 2022[49] - The company reported an adjusted EPS of $0.29 for Q4 2023, down from $1.09 in Q4 2022[49] Cash Flow and Liquidity - Cash flow from operations for Q4 2023 was $12.1 million, with a record full year cash flow of $248.5 million, an 85% increase year-over-year[4] - Net cash provided by operating activities for the quarter was $12.1 million, with a total of $248.5 million for the year[35] - As of December 31, 2023, the company had $17.1 million in cash and cash equivalents with no debt outstanding[36] - Cash and cash equivalents increased significantly from $3,604 million in December 31, 2022 to $17,094 million in December 31, 2023, representing a growth of 373.5%[60] Operational Highlights - Physician staffing and education segments experienced annual double-digit revenue growth despite overall revenue decline[4] - The company invested over $20 million in core technologies, including Intellify and Xperience, to enhance service offerings[4] - The company ended the year debt-free after repaying $73.9 million on its term loan[4] - Total days filled in the Nurse and Allied Staffing segment were 23,578, compared to 21,335 in the prior year[34] - Revenue per day filled in the Nurse and Allied Staffing segment was $1,988, up from $1,740 in the prior year[34] - The average revenue per FTE per day for Nurse and Allied Staffing decreased from $510 in December 31, 2022 to $414 in December 31, 2023[65] - The number of FTEs for Nurse and Allied Staffing decreased from 12,447 in December 31, 2022 to 9,570 in December 31, 2023, a decline of approximately 23%[65] Future Outlook - The company expects Q1 2024 revenue to be in the range of $370 million to $380 million, representing a year-over-year decline of 41% to 39%[38] - Future goals include expanding the client base and driving operational efficiency to improve margins[4] Costs and Expenses - Restructuring costs for Q4 2023 amounted to $863 million, significantly higher than $2 million in Q4 2022[49] - The company incurred $1.1 million in legal fees related to a wage and hour class action lawsuit in 2023[57] - Acquisition and integration-related costs were recorded as $196 million in Q4 2022, with no costs reported for Q4 2023[49] - The company experienced a loss on early extinguishment of debt of $1,816 million in Q4 2022, with no such loss reported in Q4 2023[49] Balance Sheet - Total current assets decreased from $675,673 million in December 31, 2022 to $415,153 million in December 31, 2023, a decline of approximately 38.5%[60] - Total liabilities decreased from $490,620 million in December 31, 2022 to $205,924 million in December 31, 2023, a reduction of approximately 58%[60] - Income from operations for the three months ended December 31, 2023 was $13,424 million, a decrease of 74% compared to $51,464 million in the same period of 2022[61]