Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q3 2020 Earnings Conference Call November 4, 2020 5:00 PM ET Executives Kevin Clark - CEO Bill Burns - CFO Buffy White - President of Workforce Solutions and Services Steve Saville - EVP, Operations Analysts A.J. Rice - Credit Suisse Jeff Silber - BMO Capital Markets Kevin Fischbeck - Bank of America Brian Tanquilut - Jefferies Kevin Steinke - Barrington Research Operator Good afternoon, ladies and gentlemen, and welcome to the Cross Country Healthcare Earnings C ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2020 was $216.8 million, representing a 7% increase year-over-year and a 3% sequential increase, primarily driven by nearly 1,000 nurses on COVID-related assignments [23][24] - Adjusted EBITDA for the quarter was $11.6 million, supported by higher gross profit and approximately $2 million in realized cost savings [23] - Gross profit was $50.7 million with a gross margin of 23.4%, down 20 basis points sequentially due to the mix of business from COVID assignments [29][30] Business Line Data and Key Metrics Changes - The Nurse and Allied segment reported revenue of $198.1 million, up 10% year-over-year, largely due to COVID-related assignments generating over $30 million in incremental revenue [24][9] - The Physician Staffing segment experienced a revenue decline of 7% sequentially, with a 6% year-over-year decrease, primarily due to reduced elective procedures impacting specialties like anesthesiology [28] - Local branch-based business saw a decline of approximately 12% to 13% both sequentially and year-over-year, although some revenue was offset by COVID-19 crisis orders [25] Market Data and Key Metrics Changes - Demand for healthcare professionals has shown significant volatility, with orders initially rising over 20% and then falling sharply by more than 80% as hospitals faced lower census [7] - Recent increases in orders have been noted in states like California, Texas, and Florida, particularly in ICU and surgical specialties [8] Company Strategy and Development Direction - The company is focused on integrating and optimizing operations, with plans to save over $20 million annually through operational efficiencies and right-sizing teams [13][12] - Technology initiatives, including the rollout of Cross Country Marketplace and a new applicant tracking system, are expected to enhance productivity and efficiency [16][17] Management's Comments on Operating Environment and Future Outlook - Management anticipates a sequential revenue decline of 17% to 22% for Q3 2020 due to the wind-down of premium rate COVID assignments and lower demand for physician business [20][40] - Despite current challenges, management remains optimistic about sequential improvement in revenue and profitability for Q4 2020 as the market recovers [21][22] Other Important Information - The company ended the quarter with $6.2 million in cash and $49.1 million in outstanding debt, with strong cash flow from operations of $16.6 million [37][38] - The company has implemented a cost action plan expected to drive gross savings of $20 million to $22 million annually [33] Q&A Session Summary Question: Market recovery in the Northeast and Midwest - Management noted that while strong demand is currently in the South and West, there are signs of recovery in the Northeast and Northwest, with orders increasing sharply from historic lows [47] Question: Nurse turnover rates post-crisis - Management indicated that there is a tight supply of nurses, with local staffing needs increasing due to fatigue among core staff, leading to higher demand for contingent staffing [49][50] Question: Guidance on crisis-related orders - Management confirmed that year-over-year orders are up significantly, driven by COVID, particularly in critical care and telemetry [55] Question: Focus on MSP customers and pricing dynamics - Management highlighted that their MSP business is at an all-time high, with a capture rate improvement to 65%, but noted that order flow remains volatile [59][60] Question: Future technology upgrades and cost savings - Management discussed ongoing technology initiatives, including a new applicant tracking system and plans for middle office integration, which are expected to enhance efficiency and reduce costs [66][72] Question: Adjusted EBITDA margin target - Management reaffirmed the goal of achieving 8% adjusted EBITDA margins by Q4 2022, driven by increased volume, productivity improvements, and cost reductions [76]

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, 2020 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 2020 Earnings Conference Call May 7, 2020 5:00 PM ET Company Participants Kevin Clark - President, Chief Executive Officer Bill Burns - Chief Financial Officer Buffy White - President of Workforce Solutions and Services Steve Saville - Executive Vice President of Operations Conference Call Participants A.J. Rice - Credit Suisse Jason Plagman - Jefferies Tobey Sommer - SunTrust Henry Chien - BMO Operator Good evening, ladies and gentlemen, and welcome to the Cr ...

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, 2020 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 10-K þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 0-33169 Cross Country Healthcare, Inc. (Exact name of registrant as specified in its charter) Delaware 13-4 ...

Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q4 2019 Earnings Conference Call March 4, 2020 5:00 PM ET Company Representatives Kevin Clark - President, Chief Executive Officer Bill Burns - Chief Financial Officer Buffy White - President of Workforce Solutions and Services Steve Saville - Executive Vice President of Operations Conference Call Participants A.J. Rice - Credit Suisse Jason Plagman - Jefferies Jeffrey Silber - BMO Capital Market Jasper Bibb - SunTrust Kevin Steinke - Barrington Research Bill Sut ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2019 was $209.2 million, up 3% sequentially and up 4% year-over-year, driven predominantly by growth in the Nurse and Allied segment [20][21] - Adjusted EBITDA for the quarter was $7.3 million, exceeding the high end of guidance, largely due to revenue overachievement [25] - Gross profit margin for the quarter was 24.4%, down 130 basis points year-over-year and 100 basis points sequentially, attributed to tightening bill-pay spreads [22] Business Line Data and Key Metrics Changes - Revenue for the Nurse and Allied segment was $185 million, up 2% sequentially and up 5% year-over-year, with broad-based growth across all service lines [21] - Physician Staffing reported revenue of $20.4 million, down 4% year-over-year but up 13% sequentially, driven by increased volume across specialties [22] Market Data and Key Metrics Changes - Demand for travel nursing increased with orders growing 16% sequentially and over 50% year-over-year, attributed to MSP wins and broader market conditions [11] - Spend under management at MSPs increased 8% sequentially and 11% year-over-year, indicating strong market demand [12] Company Strategy and Development Direction - The company aims to become a leading total talent solutions provider, focusing on evolving the go-to-market approach, reinvigorating corporate culture, and digitally transforming operations [12][13] - A strategic goal includes achieving a high single-digit EBITDA margin over the next few years, with a target of reaching 8% profitability [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand levels, particularly in the travel business, expecting sequential growth in most lines despite holiday impacts [17] - The company is encouraged by favorable market conditions, with a significant year-over-year increase in demand [33] Other Important Information - The company successfully refinanced its senior credit facility to a more flexible $120 million asset-based credit facility, enhancing liquidity for operations and acquisitions [27][28] - The company expects to realize gross savings of $12 million to $13 million annually from cost-saving initiatives [23] Q&A Session Summary Question: Timing for achieving 8% EBITDA margin - Management believes achieving a high single-digit EBITDA margin is possible over the next few years, driven by operating leverage and technology investments [32][34] Question: Outlook for winter orders and demand - Orders are up heading into winter, with a supply-constrained marketplace, although initial activity has been slower than previous years [36][37] Question: Willingness of clients to increase rates - There is upward movement in bill rates, with expectations for continued growth due to high demand [40] Question: M&A strategy and target sectors - The company is looking for acquisition opportunities that can improve margins, particularly in Locums, Allied, Education, and Technology sectors [46] Question: Recruiter headcount and productivity - The company has reached a steady state in recruiter headcount, focusing on improving productivity through training and tools [50][51] Question: IT migration timeline - The first pilot of the new applicant tracking system will roll out soon, with broader implementation expected by late spring [56] Question: Trends in existing accounts vs. new accounts - Existing MSPs show a higher capture rate compared to new ones, with strong opportunities for growth in both [59][61]

[PART I. – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20%E2%80%93%20FINANCIAL%20INFORMATION) Presents unaudited condensed consolidated financial statements and management's discussion for the period [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Unaudited financial statements for Q3 and nine months 2019 show decreased assets, equity, and a net loss due to impairment and tax expense [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets show total assets decreased to **$394.0 million** and stockholders' equity to **$163.6 million** by September 30, 2019 Condensed Consolidated Balance Sheet Highlights | Account | Sep 30, 2019 (in thousands) | Dec 31, 2018 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$393,991** | **$427,003** | | Cash and cash equivalents | $9,458 | $16,019 | | Goodwill | $101,066 | $101,060 | | **Total Liabilities** | **$230,344** | **$208,805** | | Long-term debt, less current portion | $70,556 | $77,944 | | **Total Stockholders' Equity** | **$163,647** | **$218,198** | | Accumulated deficit | ($140,631) | ($84,062) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2019 revenue grew to **$209.2 million**, but net loss widened to **$3.1 million**; nine-month net loss was **$56.6 million** Key Operating Results (in thousands, except per share data) | Metric | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | Revenue from services | $209,200 | $200,717 | $607,128 | $615,577 | | Income (loss) from operations | $119 | $2,645 | ($17,665) | $11,235 | | Net (loss) income attributable to common shareholders | ($3,128) | ($441) | ($56,569) | $2,740 | | Diluted Net (loss) income per share | ($0.09) | ($0.01) | ($1.58) | $0.08 | - The nine months ended September 30, 2019 included significant expenses not present in the prior year, including **$16.3 million** in impairment charges and **$1.6 million** in legal settlement charges[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow decreased to **$10.9 million**; cash and cash equivalents declined by **$6.6 million** Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2019 (in thousands) | 2018 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,893 | $21,757 | | Net cash used in investing activities | ($2,042) | ($3,554) | | Net cash used in financing activities | ($15,413) | ($15,591) | | **Change in cash and cash equivalents** | **($6,561)** | **$2,528** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail lease standard adoption, **$14.5 million** trade name impairment, **$36.0 million** deferred tax valuation allowance, and subsequent debt refinancing - Effective January 1, 2019, the Company adopted the new lease standard (ASU No. 2016-02, Leases), recognizing right-of-use assets of **$22.0 million** and lease liabilities of **$28.6 million** on the balance sheet at the transition date[29](index=29&type=chunk)[30](index=30&type=chunk) - In Q2 2019, a rebranding effort resulted in a **$14.5 million** write-off of indefinite-lived trade names in the Nurse and Allied Staffing segment, recorded as an impairment charge[47](index=47&type=chunk) - In Q2 2019, the company recorded an additional valuation allowance of **$36.0 million** against its deferred tax assets, concluding it was not more likely than not that they would be realized, resulting in a **$35.8 million** income tax expense[115](index=115&type=chunk) - Subsequent to the quarter end, on October 25, 2019, the company terminated its existing credit agreement and entered into a new **$120.0 million** senior secured asset-based credit facility (ABL)[62](index=62&type=chunk)[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2019 revenue growth offset by lower profitability, a nine-month revenue decline, and debt refinancing [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q3 2019 revenue grew **4.2%** to **$209.2 million**, but operating income declined **95.5%**; nine-month revenue fell **1.4%** Comparison of Results for the Three Months Ended September 30 | Metric | 2019 | 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from services | $209.2M | $200.7M | 4.2% | | Direct operating expenses | $158.2M | $149.2M | 6.1% | | Income from operations | $0.1M | $2.6M | (95.5)% | | Net loss attributable to common shareholders | ($3.1M) | ($0.4M) | (609.3)% | Comparison of Results for the Nine Months Ended September 30 | Metric | 2019 | 2018 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from services | $607.1M | $615.6M | (1.4)% | | (Loss) income from operations | ($17.7M) | $11.2M | (257.2)% | | Net (loss) income attributable to common shareholders | ($56.6M) | $2.7M | NM | [Segment Results](index=36&type=section&id=Segment%20Results) Q3 2019 Nurse and Allied Staffing revenue grew **5.1%** to **$185.0 million**, while Physician Staffing and Search segments showed mixed results Segment Revenue - Q3 | Segment | Q3 2019 (in thousands) | Q3 2018 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Nurse and Allied Staffing | $184,974 | $175,945 | 5.1% | | Physician Staffing | $20,407 | $21,158 | (3.5)% | | Search | $3,819 | $3,614 | 5.7% | Segment Contribution Income - Q3 | Segment | Q3 2019 (in thousands) | Q3 2018 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Nurse and Allied Staffing | $16,097 | $16,507 | (2.5)% | | Physician Staffing | $811 | $1,307 | (37.9)% | | Search | $78 | $97 | (19.6)% | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Cash was **$9.5 million** as of September 30, 2019; nine-month operating cash flow decreased to **$10.9 million**, followed by a **$120.0 million** ABL facility refinancing - Working capital decreased by **$13.3 million** to **$96.2 million** as of September 30, 2019, from **$109.5 million** at year-end 2018[200](index=200&type=chunk) - Net cash provided by operating activities decreased to **$10.9 million** in the first nine months of 2019 from **$21.8 million** in the same period of 2018, primarily due to lower collections and timing of payments[202](index=202&type=chunk) - In October 2019, the company replaced its senior credit facility with a new **$120.0 million** ABL facility, which had **$21.4 million** of borrowing availability at closing[208](index=208&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate exposure on variable-rate debt, with a swap terminated and continued exposure under the new ABL facility - The company's main market risk exposure is from changes in interest rates on its variable-rate term loan[219](index=219&type=chunk) - An interest rate swap agreement, which previously hedged a portion of the term debt, was terminated in September 2019[219](index=219&type=chunk) - After refinancing in October 2019, the company continues to be exposed to interest rate risk under the new variable-rate ABL facility[220](index=220&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no material changes to internal controls except for new controls related to ASC 842 lease adoption - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of September 30, 2019[222](index=222&type=chunk) - No material changes were made to internal control over financial reporting during the quarter; the company implemented new controls related to the adoption of the new lease standard, ASC 842[223](index=223&type=chunk) [PART II. – OTHER INFORMATION](index=44&type=section&id=PART%20II.%20%E2%80%93%20OTHER%20INFORMATION) Details legal proceedings, risk factors, and exhibits filed with the quarterly report [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company recorded **$1.6 million** in Q2 2019 legal settlement charges and received a grand jury subpoena in October 2019 - In Q2 2019, the company recorded **$1.6 million** in legal settlement charges related to a medical malpractice lawsuit and a California wage and hour class action settlement[226](index=226&type=chunk) - In October 2019, the company received a grand jury subpoena concerning Advantage On Call, a business acquired in 2017, related to an investigation of healthcare services; the company is cooperating[226](index=226&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights the potential phase-out of LIBOR, which could impact credit agreements and interest rates - A new risk factor has been disclosed regarding the planned phase-out of LIBOR by the end of 2021[227](index=227&type=chunk)[228](index=228&type=chunk) - The company's credit agreements use LIBOR as a reference rate, and its discontinuation will require amending these agreements to use a replacement rate, which may not be as favorable[228](index=228&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits including CEO and CFO certifications and XBRL data files filed with the Form 10-Q - The exhibits include CEO and CFO certifications as required by Sarbanes-Oxley rules[230](index=230&type=chunk)

Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q2 2019 Results Conference Call July 31, 2019 5:00 PM ET Company Participants Bill Burns - CFO Kevin Clark - President and CEO Conference Call Participants A.J. Rice - Credit Suisse Jeff Silber - BMO Capital Markets Jason Plagman - Jeffries Kevin Steinke - Barrington Research Tobey Sommer - SunTrust Operator Good evening, ladies and gentlemen, and welcome to the Cross Country Healthcare Earnings Conference Call for the Second Quarter 2019. This call is being simu ...