Cross ntry Healthcare(CCRN) - 2023 Q4 - Annual Results

Financial Performance - Fourth quarter revenue was $414.0 million, a decrease of 34% year-over-year, while full year revenue was $2.0 billion, down 28% from the previous year[4] - Gross profit margin for Q4 2023 was 21.9%, a decline of 20 basis points year-over-year, and the full year gross profit margin was 22.3%, down 10 basis points[4] - Net income attributable to common stockholders for Q4 2023 was $9.0 million, or $0.26 per diluted share, compared to $38.8 million, or $1.06 per diluted share in Q4 2022, representing a 77% decrease[4] - Adjusted EBITDA for Q4 2023 was $20.6 million, a decrease of 64% year-over-year, with an adjusted EBITDA margin of 5.0%[4] - Revenue for the Nurse and Allied Staffing segment was $46.9 million, an increase of 26% year-over-year[34] - Adjusted EPS for Q1 2024 is projected to be between $0.15 and $0.25, down from $0.69 in the prior year[38] - Adjusted net income attributable to common stockholders for Q4 2023 was $10,169 million, down from $40,300 million in Q4 2022[49] - The company reported an adjusted EPS of $0.29 for Q4 2023, down from $1.09 in Q4 2022[49] Cash Flow and Liquidity - Cash flow from operations for Q4 2023 was $12.1 million, with a record full year cash flow of $248.5 million, an 85% increase year-over-year[4] - Net cash provided by operating activities for the quarter was $12.1 million, with a total of $248.5 million for the year[35] - As of December 31, 2023, the company had $17.1 million in cash and cash equivalents with no debt outstanding[36] - Cash and cash equivalents increased significantly from $3,604 million in December 31, 2022 to $17,094 million in December 31, 2023, representing a growth of 373.5%[60] Operational Highlights - Physician staffing and education segments experienced annual double-digit revenue growth despite overall revenue decline[4] - The company invested over $20 million in core technologies, including Intellify and Xperience, to enhance service offerings[4] - The company ended the year debt-free after repaying $73.9 million on its term loan[4] - Total days filled in the Nurse and Allied Staffing segment were 23,578, compared to 21,335 in the prior year[34] - Revenue per day filled in the Nurse and Allied Staffing segment was $1,988, up from $1,740 in the prior year[34] - The average revenue per FTE per day for Nurse and Allied Staffing decreased from $510 in December 31, 2022 to $414 in December 31, 2023[65] - The number of FTEs for Nurse and Allied Staffing decreased from 12,447 in December 31, 2022 to 9,570 in December 31, 2023, a decline of approximately 23%[65] Future Outlook - The company expects Q1 2024 revenue to be in the range of $370 million to $380 million, representing a year-over-year decline of 41% to 39%[38] - Future goals include expanding the client base and driving operational efficiency to improve margins[4] Costs and Expenses - Restructuring costs for Q4 2023 amounted to $863 million, significantly higher than $2 million in Q4 2022[49] - The company incurred $1.1 million in legal fees related to a wage and hour class action lawsuit in 2023[57] - Acquisition and integration-related costs were recorded as $196 million in Q4 2022, with no costs reported for Q4 2023[49] - The company experienced a loss on early extinguishment of debt of $1,816 million in Q4 2022, with no such loss reported in Q4 2023[49] Balance Sheet - Total current assets decreased from $675,673 million in December 31, 2022 to $415,153 million in December 31, 2023, a decline of approximately 38.5%[60] - Total liabilities decreased from $490,620 million in December 31, 2022 to $205,924 million in December 31, 2023, a reduction of approximately 58%[60] - Income from operations for the three months ended December 31, 2023 was $13,424 million, a decrease of 74% compared to $51,464 million in the same period of 2022[61]