Cross ntry Healthcare(CCRN) - 2024 Q4 - Annual Report

Financial Performance - Consolidated revenue for the year ended December 31, 2024, declined 33.5% year-over-year to $1.3 billion, down from $2.0 billion in 2023, primarily due to declines in the Nurse and Allied Staffing segment [166][175]. - The net loss attributable to common stockholders for 2024 was $14.6 million, compared to a net income of $72.6 million in 2023, marking a 120.0% decrease [166][174]. - Revenues from Nurse and Allied Staffing decreased by $696.0 million, or 37.8%, to $1.1 billion in 2024, driven by a 24.2% decline in professionals on assignment [191]. - Physician Staffing revenue increased by $20.3 million, or 11.4%, to $198.6 million in 2024, primarily due to a 5.8% increase in billable days [193]. Cash Flow and Liquidity - Cash and cash equivalents increased to $81.6 million in 2024, up from $17.1 million in the prior year, with cash flow from operating activities reported at $120.1 million [167]. - Net cash provided by operating activities decreased by $128.4 million to $120.1 million in 2024 compared to $248.5 million in 2023 [200]. - As of December 31, 2024, cash and cash equivalents were reported at $81.6 million, with working capital decreasing by $46.2 million to $214.6 million [196]. Expenses and Cost Management - Direct operating expenses decreased by 31.8% to $1.1 billion in 2024, as a result of revenue declines and tighter bill/pay spreads [176]. - Selling, general and administrative expenses decreased by 22.3% to $233.4 million in 2024, primarily due to reductions in compensation and marketing expenses [177]. - Restructuring costs for 2024 were $4.3 million, primarily related to employee termination and lease exit costs, compared to $2.6 million in 2023 [181]. - Corporate overhead decreased to $68.5 million in 2024 from $71.0 million in 2023, representing 5.1% of consolidated revenue [195]. Tax and Credit Losses - Income tax benefit totaled $1.8 million for 2024, compared to an income tax expense of $30.3 million in 2023, reflecting a decrease in book income primarily due to credit loss expense [188]. - Credit loss expense increased to $21.4 million in 2024, up from $14.6 million in 2023, representing 1.6% of revenue compared to 0.7% in the prior year [178]. - Total allowances for credit losses were $9.3 million as of December 31, 2024, a decrease from $20.5 million in 2023 [222]. Staffing Segments Performance - The Nurse and Allied Staffing segment represented approximately 85% of total revenue, while the Physician Staffing segment accounted for 15% for the year ended December 31, 2024 [165]. - Homecare Staffing grew by 12.4% year-over-year, and the Physician Staffing segment increased by 11.4% over the prior year [166]. - Average revenue per FTE per day in Nurse and Allied Staffing decreased by $84, or 18.2%, to $378 in 2024 [190]. - Total days filled in Physician Staffing increased by 5.8% to 97,888 in 2024, with revenue per day filled at $2,029 [194]. Mergers and Acquisitions - The company entered into a Merger Agreement with Aya Healthcare, with the merger expected to close in the second half of 2025, subject to regulatory approvals [168]. Other Financial Metrics - Interest income for the year ended December 31, 2024, was $2.1 million, a significant increase from an immaterial amount in 2023 [186]. - The company recognized $60.4 million in estimated revenue for services worked but not yet billed as of December 31, 2024, compared to $89.9 million in 2023 [219]. - Deferred tax assets related to federal, state, and foreign NOL carryforwards amounted to $6.6 million as of December 31, 2024 [224]. - The company is subject to an unrecognized tax benefit of $10.1 million as of December 31, 2024, reflecting uncertain tax positions [226]. Risk Management and Currency Exposure - The company has not entered into any foreign currency hedges, with approximately 3% of expenses related to services provided by employees in India [234]. - The company does not believe inflation significantly impacted its operations, actively seeking to adjust billing rates to reflect cost increases [231]. - Fluctuations in exchange rates impact the U.S. dollar amount of stockholders' equity [236]. - Non-U.S. subsidiaries' assets and liabilities are translated into U.S. dollars at the end of the reporting period exchange rate [236]. - Translation adjustments are recorded in stockholders' equity as a component of accumulated other comprehensive loss [236].