Cross ntry Healthcare(US:CCRN)2019-03-01 00:19Financial Performance - For the year ended December 31, 2018, revenue from services decreased by 5.6% to $816.5 million compared to $865.0 million in 2017[162] - The net loss attributable to common shareholders for 2018 was $16.9 million, or $0.48 per diluted share, significantly impacted by pre-tax non-cash impairment charges of $22.4 million[162] - Consolidated net loss income was $15.7 million for the year ended December 31, 2018, compared to a net income of $38.8 million for the year ended December 31, 2017, reflecting a decrease of $54.5 million[170] - Net loss income attributable to common shareholders was $(16.9) million for the year ended December 31, 2018, compared to $37.5 million for the year ended December 31, 2017, marking a decrease of $54.5 million[170] - Revenue from services decreased by $48.6 million, or 5.6%, to $816.5 million for the year ended December 31, 2018, compared to $865.0 million for the year ended December 31, 2017[171] - Revenue from the Nurse and Allied Staffing segment decreased by $38.0 million, or 5.0%, to $720.3 million for the year ended December 31, 2018, compared to $758.3 million for the year ended December 31, 2017[207] - Revenue from Physician Staffing decreased by $11.3 million, or 12.1%, to $82.3 million for the year ended December 31, 2018, compared to $93.6 million for the year ended December 31, 2017[210] Expenses and Costs - Direct operating expenses decreased by $29.5 million, or 4.6%, to $606.9 million for the year ended December 31, 2018, with direct operating expenses as a percentage of total revenue increasing to 74.3% from 73.6%[172] - Selling, general, and administrative expenses decreased by $7.2 million, or 3.8%, to $180.2 million for the year ended December 31, 2018, representing 22.1% of total revenue[173] - Impairment charges increased to $22.4 million for the year ended December 31, 2018, compared to $14.4 million for the year ended December 31, 2017, primarily due to lower booking volumes and customer losses[179] - Restructuring costs increased to $2.8 million for the year ended December 31, 2018, compared to $1.0 million for the year ended December 31, 2017, reflecting ongoing cost-saving initiatives[178] - Acquisition-related contingent consideration totaled $2.6 million for the year ended December 31, 2018, compared to less than $0.1 million in 2017, indicating increased valuation adjustments on contingent liabilities[176] Cash Flow and Financing - Cash flow from operating activities for 2018 was $21.0 million, with $16.0 million in cash and cash equivalents as of December 31, 2018[163] - Net cash provided by operating activities during the year ended December 31, 2018 was $21.0 million, down from $45.5 million in the previous year[231] - Net cash used in investing activities during the year ended December 31, 2018 was $6.7 million, significantly lower than $91.4 million in the year ended December 31, 2017[232] - Net cash used in financing activities during the year ended December 31, 2018 was $23.8 million, compared to net cash provided of $50.8 million in the previous year[233] - The company repurchased and retired 432,439 shares of Common Stock for $5.0 million at an average market price of $11.54 per share[163] Assets and Liabilities - Total assets as of December 31, 2018, were $427.0 million, while total debt at par was $83.9 million[165] - As of December 31, 2018, total goodwill and intangible assets amounted to $176.6 million, representing 41.4% of total assets[256] - The company had accrued $5.4 million for uncertain tax positions as of December 31, 2018, with no reliable estimates for potential settlement periods[249] - Total contractual obligations and commitments as of December 31, 2018, were $145.0 million, including $83.9 million for the Term Loan and $34.6 million for operating lease obligations[248] Taxation - The effective tax rate for the year ended December 31, 2018, was 13.6%, significantly improved from a negative 802.2% in 2017, influenced by the non-deductibility of certain expenses and adjustments to deferred tax assets[184] - The effective tax rate for the year ended December 31, 2017, was negative 802.2%, influenced by the reversal of valuation allowances[201] - The valuation allowance on deferred tax assets was reduced by $45.4 million for the year ended December 31, 2017, primarily due to management's reassessment of realizable deferred tax assets[270] Staffing and Operations - Nurse and Allied Staffing represented approximately 88% of total revenue for 2018, while Physician Staffing accounted for about 10%[158][159] - The company operates 73 office locations throughout the U.S., providing healthcare staffing and workforce solutions[156] - The average number of Nurse and Allied Staffing FTEs on contract decreased by 3.3% for the year ended December 31, 2018 compared to the previous year[209] - The average revenue per FTE per day in Nurse and Allied Staffing includes revenue from the permanent placement of nurses[166] Market and Economic Conditions - The company expects seasonal fluctuations in healthcare staffing needs, impacting quarterly revenue and earnings, particularly during summer and winter months[279] - The company does not believe inflation significantly impacted its results of operations for the periods presented, as it seeks to ensure billing rates reflect cost increases due to inflation[280] - Approximately 1% of selling, general, and administrative expenses are related to software development and IT support provided by employees in Pune, India, indicating minor exposure to foreign currency fluctuations[283] Legal and Contingent Liabilities - The company is subject to various litigation and claims, which may result in contingent liabilities that require significant judgment to estimate[268] - The company has entered into interest rate swap agreements to hedge against fluctuations in interest rates, effectively fixing the interest rate on 50% of its term debt[281]