Cross ntry Healthcare(US:CCRN)2022-08-03 16:00Revenue Growth - Revenue from services increased 127.1% year-over-year to $753.6 million for the three months ended June 30, 2022, compared to $331.8 million for the same period in 2021[138]. - Revenue from services increased 133.3% to $1.5 billion for the six months ended June 30, 2022, compared to $661.1 million for the same period in 2021, driven by strong performance in Nurse and Allied Staffing and Physician Staffing segments[152]. - Revenue from Physician Staffing increased by $6.5 million, or 41.4%, to $22.1 million for the three months ended June 30, 2022, compared to $15.6 million for the same period in 2021[171]. - Revenue for Nurse and Allied Staffing increased by $867.8 million, or 137.9%, to $1.5 billion for the six months ended June 30, 2022, compared to $629.2 million for the same period in 2021[175]. Net Income and Profitability - Net income attributable to common stockholders for the second quarter of 2022 was $52.9 million, up from $11.5 million in the prior year, representing a 358.0% increase[137]. - Net income attributable to common shareholders was $114.9 million for the six months ended June 30, 2022, compared to $31.0 million for the same period in 2021, reflecting a 270.6% increase[151]. - Contribution income increased by $62.3 million, or 176.5%, to $97.6 million for the three months ended June 30, 2022, compared to $35.3 million for the same period in 2021, with a contribution income margin of 13.3%[169]. - Contribution income for the six months ended June 30, 2022, increased by $135.0 million, or 185.6%, to $207.7 million, with a contribution income margin of 13.9%[176]. Expenses - Direct operating expenses rose 125.0% to $583.2 million, accounting for 77.4% of total revenue, down from 78.1% in the prior year[139]. - Selling, general, and administrative expenses increased 70.8% to $86.0 million, representing 11.4% of total revenue, down from 15.2% in the prior year[140]. - Direct operating expenses rose 131.5% to $1.2 billion for the six months ended June 30, 2022, compared to $517.0 million in the prior year, with a decrease in direct operating expenses as a percentage of total revenue to 77.6%[153]. - Selling, general and administrative expenses increased 68.4% to $162.8 million for the six months ended June 30, 2022, compared to $96.7 million in 2021, with a decrease in these expenses as a percentage of total revenue to 10.5%[154]. Cash Flow and Financial Management - Cash flow from operating activities was $18.1 million, with net borrowings of $33.5 million on the senior-secured asset-based credit facility[130]. - The company made a $50.0 million optional prepayment on its term loan to reduce interest costs, reflecting positive cash flow management[131]. - Net cash used in operating activities was $10.9 million for the six months ended June 30, 2022, compared to $9.4 million in the prior year, driven by a $215.2 million increase in receivables[186]. - Working capital increased by $141.2 million to $449.7 million as of June 30, 2022, primarily due to an increase in accounts receivable[183]. Staffing and Workforce - The Nurse and Allied Staffing segment represented approximately 97% of total revenue in the second quarter of 2022, highlighting its dominance in the company's service offerings[125]. - Physician Staffing accounted for approximately 3% of total revenue, indicating a smaller but essential segment of the business[126]. - The number of full-time equivalents (FTEs) in Nurse and Allied Staffing increased by 78.1% to 13,494 for the three months ended June 30, 2022, compared to 7,578 in the prior year[166]. - Average revenue per FTE per day in Nurse and Allied Staffing increased by 30.2% to $591 for the three months ended June 30, 2022, compared to $454 in the same period in 2021[166]. - The average number of FTEs on contract increased by 78.1% for the three months ended June 30, 2022, with average revenue per FTE per day rising by 30.2%[170]. Tax and Interest Expenses - Income tax expense increased to $46.4 million for the six months ended June 30, 2022, from $4.3 million in the prior year, primarily due to federal and state taxes[163]. - Interest expense was $7.4 million for the six months ended June 30, 2022, compared to $1.9 million for the same period in 2021, attributed to higher average borrowings and an increase in the effective interest rate to 6.6%[160]. - The company reported a loss on early extinguishment of debt of $1.9 million for the six months ended June 30, 2022, with no such expenses in the prior year[161]. - Non-cash impairment charges totaled $1.7 million for the six months ended June 30, 2022, down from $2.1 million in the same period in 2021[159]. Corporate Overhead - Corporate overhead increased to $17.6 million for the three months ended June 30, 2022, from $14.1 million in the prior year, with a decrease in corporate overhead as a percentage of consolidated revenue to 2.3%[174]. Future Outlook - Average travel bill rates are anticipated to decline in the mid-teens sequentially for the remainder of 2022, impacting future revenue[129]. - The company plans to double its IT project budget for 2022 compared to 2021, indicating a commitment to technology investment[129]. Risk and Exposures - The company highlights interest rate risk related to the phase-out of LIBOR as discussed in the 2021 Form 10-K[204]. - There have been no material changes to the company's other exposures as disclosed in the 2021 Form 10-K[205].