Cross ntry Healthcare(US:CCRN)2024-11-07 20:59Financial 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].