Cross ntry Healthcare(US:CCRN)2022-05-04 16:00Revenue Growth - Revenue from services increased 139.6% year-over-year to $788.7 million for the quarter ended March 31, 2022, compared to $329.2 million in the same quarter of 2021, driven by strong performance in both Nurse and Allied and Physician Staffing segments [129]. - Revenue from Nurse and Allied Staffing increased by $452.6 million, or 144.6%, to $765.6 million for the three months ended March 31, 2022, compared to $313.0 million for the same period in 2021 [141]. - Revenue from Physician Staffing increased by $7.0 million, or 42.6%, to $23.2 million for the three months ended March 31, 2022, primarily due to increased volume [145]. Profitability - Net income attributable to common stockholders for the first quarter of 2022 was $62.0 million, a significant increase from $19.4 million in the prior year, reflecting a growth of 218.7% [128]. - Income from operations for the first quarter of 2022 was $90.6 million, a 331.7% increase from $21.0 million in the same quarter of 2021 [128]. - Contribution income for Nurse and Allied Staffing rose by $72.7 million, or 194.3%, to $110.1 million for the three months ended March 31, 2022, with a contribution income margin of 14.4% [142]. Expenses - Direct operating expenses rose 138.2% to $613.9 million for the three months ended March 31, 2022, compared to $257.8 million in the same period of 2021, while as a percentage of total revenue, these expenses decreased to 77.8% from 78.3% [130]. - Selling, general and administrative expenses increased 65.8% to $76.8 million for the first quarter of 2022, down to 9.7% of total revenue from 14.1% in the prior year [131]. - Corporate overhead increased to $16.3 million for the three months ended March 31, 2022, from $14.2 million in the prior year, representing 2.1% of consolidated revenue [148]. Cash Flow and Financing - Cash flow used in operating activities was $29.0 million for the quarter ended March 31, 2022, with net borrowings of $42.3 million on the senior-secured asset-based credit facility [121]. - Net cash used in operating activities was $29.0 million for the three months ended March 31, 2022, compared to $24.9 million in the same period in 2021, primarily due to increased receivables [153]. - The company reported net borrowings of $41.9 million on its debt during the three months ended March 31, 2022 [155]. Capital and Investments - The company amended the ABL Credit Agreement, increasing the committed size from $150.0 million to $300.0 million and extending the credit facility for an additional five years [120]. - The company plans to double its IT project budget for 2022 compared to 2021, indicating a commitment to investing in technology and personnel [119]. - The company has an effective "shelf" registration statement on file with the SEC to sell up to 5,000,000 shares of common stock for general corporate purposes or acquisitions [152]. Operational Metrics - The average number of FTEs on contract increased by 103.4% to 13,454 for the three months ended March 31, 2022, driven by headcount growth and the WSG acquisition [144]. - Working capital increased by $100.6 million to $409.1 million as of March 31, 2022, compared to $308.5 million as of December 31, 2021 [150]. Interest and Risk Factors - Interest expense increased to $3.5 million for the first quarter of 2022, compared to $0.7 million in the prior year, due to higher average borrowings and a higher effective interest rate of 6.4% [136]. - A 1% change in interest rates would have resulted in interest expense fluctuating approximately $0.5 million and $0.2 million for the three months ended March 31, 2022 and 2021, respectively [170]. - The interest rates under the Term Loan Agreement and ABL Credit Agreement may be impacted by the phase-out of LIBOR, presenting a risk factor for the company [171]. - There have been no material changes to the company's other exposures as disclosed in the 2021 Form 10-K [172].