Wall Street analysts expect Cross Country Healthcare (CCRN) to post quarterly earnings of $0.27 per share in its upcoming report, which indicates a year-over-year decline of 75.2%. Revenues are expected to be $402.44 million, down 35.9% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 1.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course ...

Interpreting labor market data at the beginning of each year is problematic. This is because many temporary workers are hired to meet the huge demand during the holiday shopping season, and once the demand wanes, companies declare job cuts.Nonetheless, January’s labor report indicates that hiring remained healthy despite elevated interest rates, and the economy is insulated from an impending recession.The Bureau of Labor Statistics stated that nonfarm payrolls increased by 353,000 in January, way more than ...

BOCA RATON, Fla.--(BUSINESS WIRE)--Cross Country Healthcare, Inc. (Nasdaq: CCRN) will hold its quarterly conference call to discuss its fourth quarter and full year 2023 financial results on Wednesday, February 21, 2024 at 5:00 p.m. Eastern Time. Cross Country Healthcare, Inc. (the “Company”) intends to distribute its earnings press release after market close on Wednesday, February 21, 2024. This call will be webcast live and can be accessed at the Company’s website at ir.crosscountry.com or by dialing 888 ...

Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Josh Vogel - Vice President of Investor Relations John Martins - President and Chief Executive Officer Bill Burns - Chief Financial Officer Dan White - Chief Commercial Officer Marc Krug - Group President of Delivery Conference Call Participants Brian Tanquilut - Jefferies Kevin Fischbeck - Bank of America Trevor Romeo - William Blair Tobey Sommer - Truist Securities Kevin Steinke - ...

[PART I. – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q3 and nine months ended September 30, 2023, reflect significant year-over-year declines in revenue and net income, driven by lower demand in Nurse and Allied Staffing, offset by increased operating cash flow Condensed Consolidated Statements of Operations Highlights (Q3 2023 vs Q3 2022) | Metric | Q3 2023 (in thousands) | Q3 2022 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from services | $442,291 | $636,098 | -30.5% | | Income from operations | $20,303 | $52,175 | -61.1% | | Net income | $12,812 | $34,793 | -63.2% | | Diluted EPS | $0.36 | $0.93 | -61.3% | Condensed Consolidated Balance Sheets Highlights (as of Sep 30, 2023 vs Dec 31, 2022) | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :--- | :--- | :--- | | Total current assets | $445,229 | $675,673 | | Total assets | $707,739 | $947,839 | | Total current liabilities | $183,578 | $271,640 | | Debt | $0 | $148,735 | | Total liabilities | $238,078 | $490,620 | | Total stockholders' equity | $469,661 | $457,219 | Condensed Consolidated Statements of Cash Flows Highlights (Nine Months Ended Sep 30) | Metric | 2023 (in thousands) | 2022 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $236,424 | $129,730 | | Net cash used in investing activities | ($10,900) | ($6,763) | | Net cash used in financing activities | ($214,825) | ($93,674) | | Change in cash and cash equivalents | $10,697 | $29,284 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, revenue by segment, recent acquisitions, term loan repayment, and stock repurchases, highlighting divergent segment performance and goodwill adjustments Revenue by Segment (Nine Months Ended Sep 30, 2023) | Segment | Revenue (in thousands) | | :--- | :--- | | Nurse And Allied Staffing | $1,474,273 | | Physician Staffing | $131,420 | | **Total** | **$1,605,693** | - On June 30, 2023, the Company fully repaid its outstanding term loan obligations of **$73.9 million** and terminated the Term Loan Agreement, resulting in a write-off of **$1.7 million** in debt issuance costs[84](index=84&type=chunk) - During the nine months ended September 30, 2023, the Company repurchased and retired **2,038,691 shares** of common stock for **$51.2 million**, with **$83.7 million** remaining available for repurchase under the current program as of September 30, 2023[61](index=61&type=chunk)[178](index=178&type=chunk) - The company completed acquisitions of HireUp and Mint in late 2022, leading to a decrease in goodwill from **$163.3 million** at year-end 2022 to **$135.4 million** at September 30, 2023, primarily due to measurement period adjustments[38](index=38&type=chunk)[42](index=42&type=chunk)[79](index=79&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20(MD%26A)) Management attributes the Q3 2023 revenue decline to normalization in Nurse and Allied Staffing, partially offset by strong Physician Staffing growth, while utilizing robust operating cash flow for debt repayment and share repurchases [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q3 2023 saw significant declines in revenue and net income, primarily driven by lower Nurse and Allied segment performance, with similar trends observed for the nine-month period, impacting operating leverage Comparison of Results (Q3 2023 vs Q3 2022) | Metric (in thousands) | Q3 2023 | Q3 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue from services | $442,291 | $636,098 | ($193,807) | (30.5)% | | Income from operations | $20,303 | $52,175 | ($31,872) | (61.1)% | | Net income | $12,812 | $34,793 | ($21,981) | (63.2)% | Comparison of Results (Nine Months Ended Sep 30) | Metric (in thousands) | 2023 | 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue from services | $1,605,693 | $2,178,391 | ($572,698) | (26.3)% | | Income from operations | $99,289 | $221,644 | ($122,355) | (55.2)% | | Net income | $63,593 | $149,670 | ($86,077) | (57.5)% | [Segment Results](index=37&type=section&id=Segment%20Results) The company's segments showed divergent performance, with Nurse and Allied Staffing revenue declining due to lower FTEs and bill rates, while Physician Staffing experienced robust growth driven by increased days filled Nurse and Allied Staffing Key Metrics (Q3 2023 vs Q3 2022) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $396.6M | $612.3M | -35.2% | | Contribution Income | $39.2M | $77.8M | -49.6% | | FTEs | 9,849 | 12,524 | -21.4% | | Avg. Revenue per FTE per day | $434 | $526 | -17.5% | Physician Staffing Key Metrics (Q3 2023 vs Q3 2022) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $45.7M | $23.8M | +91.8% | | Contribution Income | $2.6M | $0.8M | +225% | | Days filled | 23,004 | 13,219 | +74.0% | | Revenue per day filled | $1,986 | $1,803 | +10.1% | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity was demonstrated by increased operating cash flow, enabling full term loan repayment and significant stock repurchases, with substantial cash and ABL availability remaining - Net cash provided by operating activities increased by **$106.7 million** to **$236.4 million** for the nine months ended September 30, 2023[276](index=276&type=chunk) - On June 30, 2023, the company repaid all **$73.9 million** in outstanding obligations under its term loan and terminated the agreement[251](index=251&type=chunk)[254](index=254&type=chunk) - As of September 30, 2023, the company had **$14.3 million** in cash, no borrowings under its ABL facility, and **$209.5 million** of excess availability[197](index=197&type=chunk)[251](index=251&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is variable interest rates on its ABL Agreement, with term loan risk eliminated, and a hypothetical rate change would impact interest expense - The company is exposed to variable interest rate risk from its Loan Agreement, which charges interest based on SOFR or a Base Rate[257](index=257&type=chunk) - A **1%** change in interest rates would have caused interest expense to fluctuate by approximately **$0.6 million** for the nine months ended September 30, 2023[281](index=281&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[259](index=259&type=chunk) - There were no changes in internal control over financial reporting during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[283](index=283&type=chunk) [PART II. – OTHER INFORMATION](index=42&type=section&id=PART%20II.%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, with management believing the outcome of outstanding matters will not materially adversely affect its financial condition - The company is involved in various litigation, claims, and investigations that arise in the ordinary course of business[156](index=156&type=chunk) - Management believes the outcome of any outstanding loss contingencies as of September 30, 2023, will not have a material adverse effect on its business, financial condition, results of operations, or cash flows[156](index=156&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the company's risk factors since their disclosure in the 2022 Annual Report on Form 10-K - There are no material changes to our Risk Factors as previously disclosed in our 2022 Form 10-K[262](index=262&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during Q3 2023, with a significant amount remaining available under the board-authorized program Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining Under Program | | :--- | :--- | :--- | :--- | | July 2023 | 113,802 | $27.07 | $95,329,000 | | August 2023 | 443,822 | $23.02 | $85,114,000 | | September 2023 | 59,200 | $24.66 | $83,654,000 | | **Total** | **616,824** | **$23.92** | **$83,654,000** | - The share repurchases were made under a **$100 million** stock repurchase program, which was replenished by the Board of Directors effective May 3, 2023[264](index=264&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section discloses the termination of a Rule 10b5-1 trading plan by an executive officer on August 18, 2023 - On August 18, 2023, Susan E. Ball, Executive Vice President, Chief Administrative Officer, General Counsel and Secretary, terminated a Rule 10b5-1 trading arrangement[289](index=289&type=chunk)[266](index=266&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the ABL Credit Agreement amendment, CEO and CFO certifications, and XBRL data files - The report includes several exhibits, such as Amendment No. 6 to the ABL Credit Agreement, CEO and CFO certifications (31.1, 31.2, 32.1, 32.2), and XBRL data files[267](index=267&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2023 was $541 million, with adjusted EBITDA of $44 million, exceeding the high end of guidance ranges [5][41] - Gross profit was $123 million, representing a gross margin of 22.8%, which was up 40 basis points sequentially [17] - Adjusted earnings per share was $0.69, above the high end of guidance, driven by strong performance and lower interest expense [20] Business Line Data and Key Metrics Changes - Travel business revenue decreased approximately 16% sequentially and 36% year-over-year, with average bill rates down 7% sequentially [6][72] - Physician staffing revenue increased 105% year-over-year, now on an annual revenue run rate of over $180 million [8] - Education division grew 42% year-over-year, nearing an annual revenue run rate of $100 million [8] Market Data and Key Metrics Changes - Home care staffing services revenue was down 2% year-over-year, primarily due to lower needs from a single client [22] - The overall demand for travel nurses has shown signs of gradual improvement, although the growth in the number of travelers has been slower than anticipated [31][73] Company Strategy and Development Direction - The company is focused on leveraging technology investments, particularly through the Intellify platform, to enhance operational efficiency and client service [12][33] - The strategy includes diversifying the platform and entering new markets, as evidenced by the recent acquisition and expansion into interim leadership [38] - The company aims to maintain profitability while investing in high-growth potential areas and technology initiatives [18] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand has softened, there are signs of recovery, particularly in specific medical specialties [31] - The outlook for Q3 2023 anticipates revenue between $440 million and $450 million, reflecting a sequential decline due to travel bill rate pressures and seasonal impacts [37][76] - Management expressed confidence in the long-term growth potential, particularly with the expected stabilization of bill rates and increasing demand [60][127] Other Important Information - The company repaid the remaining $74 million on its term loan in June and restored a $100 million share repurchase plan [13][23] - Cash generated from operations was $119 million, the second highest quarter on record, indicating strong cash flow management [75] Q&A Session All Questions and Answers Question: What is the outlook for the relationship with MSPs moving forward? - Management indicated that MSPs remain vital to the strategy, but there is a shift towards vendor-neutral models in the marketplace [50][52] Question: Can you provide clarity on demand trend visibility given the revenue guidance adjustments? - Management acknowledged the challenges but emphasized that they are trying to provide the most accurate guidance based on current data [57][58] Question: How do you anticipate seasonal orders will play out? - Management noted that clients are looking to secure longer contracts to prepare for flu season, but visibility into the volume of orders is still developing [64][66] Question: What is the impact of MSP churn on the business? - Management confirmed that there has been higher churn than historically seen, primarily towards vendor-neutral players, but they are well-positioned to capture market share [89][92] Question: How is the company managing the gap between order rates and nurse compensation expectations? - Management highlighted that there is a disparity between current bill rates and nurse pay expectations, which they believe will reach equilibrium in the coming months [60][84]

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, 2023 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 ...

Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q1 2023 Earnings Conference Call May 3, 2023 5:00 PM ET Company Participants Josh Vogel - Vice President, Investor Relations John Martins - President and Chief Executive Officer Bill Burns - Chief Financial Officer Dan White - Chief Commercial Officer Marc Krug - Group President, Delivery Conference Call Participants Kevin Fischbeck - Bank of America A.J. Rice - Credit Suisse Tobey Sommer - Truist Securities Bill Sutherland - The Benchmark Company Operator Good a ...

Revenue Performance - Revenue from services decreased by 21.0% to $622.7 million for the three months ended March 31, 2023, compared to $788.7 million for the same period in 2022[15] - Contribution income decreased by 39.0% to $67.2 million for the three months ended March 31, 2023, compared to $110.1 million for the same period in 2022[34] - The average Nurse and Allied Staffing revenue per FTE per day decreased by 18.3% to $513 for the three months ended March 31, 2023[28] Net Income and Expenses - Net income attributable to common stockholders was $29.4 million for the three months ended March 31, 2023, down 52.5% from $62.0 million in the same period in 2022[15] - Bad debt expense increased to $4.9 million, representing 0.8% of revenue for the three months ended March 31, 2023, compared to 0.3% in the prior year[24] - Corporate overhead increased to $18.7 million for the three months ended March 31, 2023, from $16.3 million in the prior year, representing 3.0% of consolidated revenue[31] Cash Flow and Financing Activities - Cash flow provided by operating activities was $46.9 million, with net repayments of $10.4 million on the senior secured asset-based credit facility as of March 31, 2023[13] - For the three months ended March 31, 2023, net cash used in financing activities was $46.7 million, compared to $31.3 million provided by financing activities in the same period of 2022[46] - The company reported $0.3 million in cash and cash equivalents and $73.9 million of term loan outstanding as of March 31, 2023[32] Debt and Loan Agreements - The company entered into a Term Loan Agreement on June 8, 2021, for a total of $100.0 million with an interest rate of one-month LIBOR plus 5.75% per annum, subject to a 0.75% LIBOR floor[39] - The company amended the Term Loan Agreement on November 18, 2021, to include an incremental term loan of $75.0 million, primarily to fund organic growth[41] - The company made optional prepayments totaling $100.0 million on the term loan in 2022, incurring prepayment premiums of $1.0 million and writing off debt issuance costs of $2.7 million[43] Compliance and Financial Ratios - As of March 31, 2023, the company was in compliance with the minimum net leverage ratio covenant under the Term Loan Agreement[40] - As of March 31, 2023, the company had $300.0 million available under the ABL, with $66.4 million drawn and $18.2 million in letters of credit outstanding, leaving $215.4 million of excess availability[49] Other Financial Metrics - Days sales outstanding (DSO) increased by 8 days year-over-year to 70 days as of March 31, 2023[32] - A 1% change in interest rates would have resulted in interest expense fluctuations of approximately $0.4 million for the three months ended March 31, 2023[63] - The company repurchased 1,223,404 shares of common stock for $31.7 million during the first quarter of 2023, with $44.5 million remaining for share repurchase under the New Repurchase Program[37]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2022 was $620 million, approximately 5% above the upper end of guidance, while adjusted EBITDA was $57 million, representing a 9.1% margin [7][20][40] - Total selling, general and administrative (SG&A) expenses were $81 million, up 1% sequentially and 23% year-over-year, with SG&A as a percentage of revenue at 12.9%, an increase of over 250 basis points from the prior year [10][21] - Adjusted earnings per share for the quarter was $1.09, up slightly over the third quarter and well above the upper end of guidance [21] Business Line Data and Key Metrics Changes - Nurse and Allied reported revenue of $591 million, a decline of 5% year-over-year and 3% sequentially, primarily due to a 3% drop in average bill rates and a 2% decrease in volume [11][22] - The local business experienced a slight sequential decline, while other lines such as locums, education, and homecare showed growth, with locums up nearly 8% sequentially [18][22] - Physician staffing revenue was $37 million, representing an 84% increase year-over-year and 56% sequentially, with organic growth of 28% excluding acquisitions [46] Market Data and Key Metrics Changes - More than 50% of revenue comes from Managed Service Providers (MSPs), with approximately 15% of total spend under management migrated to the Intellify platform as of December [8][19] - The company noted a higher than normal level of client attrition but stated that the pipeline for new opportunities has never been stronger [8][19] - The market for staffing is projected at $50 billion, with 40% being MSP, 40% vendor-neutral, and 20% direct clients [82] Company Strategy and Development Direction - The company is focused on expanding its digital transformation and enhancing its technology offerings, including the launch of Intellify and Gateway [16][40] - Strategic investments are being made in technology initiatives, personnel, and tuck-in acquisitions to bolster and diversify the portfolio [17][40] - The company aims to maintain a high single-digit to low double-digit EBITDA margin while growing higher-margin businesses [80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong pipeline and the ability to adapt to changing market conditions [8][19] - The company anticipates continued pressure on orders and bill rates but believes that the persistent labor shortage will sustain demand [41][42] - For Q1 2023, revenue is expected to be between $590 million and $600 million, with adjusted EBITDA between $44 million and $49 million [48] Other Important Information - The company repurchased 1.4 million shares, or roughly 4% of outstanding shares, as part of a $100 million share repurchase program [17][24] - The company ended the quarter with $4 million in cash and $151 million in outstanding debt, maintaining a low leverage ratio of less than 0.5x [23] Q&A Session Summary Question: What is the expectation for bill rates and how will the company adjust infrastructure? - Management indicated that bill rates are expected to normalize and that they utilize sophisticated capacity modeling to adjust resources as needed [26][27] Question: What would prompt a larger adjustment to infrastructure? - Management noted that natural attrition and capacity metrics would guide decisions on backfilling roles, allowing for adjustments without overreacting [36][60] Question: How is the company addressing client attrition and competition in the market? - Management highlighted that while there has been client attrition, the company has a strong pipeline and is well-positioned to win new business as contracts come up for bid [78][82]