Cross ntry Healthcare(US:CCRN)2024-05-02 01:50Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2024 was $379 million, down 8% sequentially and 39% year-over-year, primarily due to declines in travel and local assignments [92] - Gross profit for the quarter was $77 million, representing a gross margin of 20.4%, down 150 basis points sequentially and 200 basis points year-over-year [42] - Adjusted EBITDA for the quarter was $15 million, with an adjusted EBITDA margin of 4% [71] Business Line Data and Key Metrics Changes - Nurse and Allied reported revenue of $332 million, down 10% sequentially and 43% year-over-year [50] - Travel Nurse and Allied revenue was down 11% sequentially and 48% year-over-year, with billable hours down 9% sequentially [50] - Physician Staffing revenue was $47 million, up 16% year-over-year and flat sequentially, driven by higher billable days and revenue per day [73] Market Data and Key Metrics Changes - The local business experienced a revenue decline of 36% year-over-year and 19% sequentially, primarily due to fewer billable hours [50] - The home care business was up mid-single digits both sequentially and year-over-year, indicating growth potential [87] - Demand for locum tenens is expected to grow as hospitals seek more flexible staffing solutions [6] Company Strategy and Development Direction - The company is focused on targeted investments in technology and businesses to enhance competitive positioning and operational excellence [89] - The Intellify platform is seen as a critical component of the company's value proposition, with strong interest in the market [89] - The company aims to close several accretive acquisitions to diversify its platform and improve margin profiles [90] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand leveling off, although it is too early to confirm a trend [5] - The company anticipates a further sequential decline in revenue for Q2 in the mid-teens due to continued softness in travel demand [50] - Management highlighted the importance of maintaining capacity to capitalize on market rebounds [66] Other Important Information - The company has reduced its U.S. headcount by over 20% since the beginning of the year, reflecting efforts to align costs with market conditions [66] - The company ended Q1 with $5 million in cash and no outstanding debt, positioning it well for future investments [96] - The company was recently recognized as one of Newsweek's Greatest Workplaces for Diversity in 2024, reflecting its strong workplace culture [68] Q&A Session Summary Question: What are the demand trends for the first four months of the year? - Management noted that demand has remained soft and has not yet rebounded, with opportunities in programs that have been won still ramping up [77] Question: How is the locum space performing? - Management expressed bullishness on the locum space, citing the need for physicians as a key component for hospital systems to drive revenue [79] Question: What is the outlook for the second quarter? - The company is guiding for revenue between $330 million and $340 million, representing a sequential decline of 10% to 13% [74] Question: How is the company managing its cost structure? - The company has proactively managed costs, resulting in a significant reduction in headcount and leveraging operations in India for cost savings [66] Question: What is the status of the Intellify platform? - Management confirmed that the Intellify platform has a robust pipeline and is expected to contribute to stronger results in the second half of 2024 [30]