Cross Country Healthcare, Inc. (the Company) (Nasdaq: CCRN)
today announced financial results for its third quarter ended
September 30, 2024.
SELECTED FINANCIAL INFORMATION:
Variance
Variance
Q3 2024 vs
Q3 2024 vs
Dollars are in thousands, except per share
amounts
Q3 2024
Q3 2023
Q2 2024
Revenue
$
315,119
(29
)%
(7
)%
Gross profit margin*
20.4
%
(160
)bps
(40
)bps
Net income attributable to common
stockholders
$
2,555
(80
)%
116
%
Diluted EPS
$
0.08
$
(0.28
)
$
0.55
Adjusted EBITDA*
$
10,339
(62
)%
(27
)%
Adjusted EBITDA margin*
3.3
%
(290
)bps
(90
)bps
Adjusted EPS*
$
0.12
$
(0.27
)
$
0.02
Cash flows provided by operations
$
7,470
(89
)%
(91
)%
* Represents amounts that are not
calculated in accordance with U.S. generally accepted accounting
principles (GAAP) and are referred to as non-GAAP measures. Please
refer to the accompanying discussion below of how these non-GAAP
financial measures are calculated and used under “Non-GAAP
Financial Measures” and the tables reconciling these measures to
the closest GAAP measure.
Third Quarter Business Highlights
- Revenue, Adjusted EBITDA, and Adjusted EPS all within guidance
ranges
- Physician Staffing and Homecare Staffing experienced sequential
and year-over-year revenue growth
- Secured a three-year contract renewal with our largest managed
service program
- Continued strong balance sheet with $64 million of cash on hand
and no debt as of September 30, 2024
- Repurchased over 800,000 shares of common stock for $11.9
million
“Our third quarter results reflect the continued stabilization
across our core business as well as the ongoing momentum in our
Homecare, Physician, and Education Staffing businesses. Though
margins remain under pressure, I am encouraged to see demand for
our services continue to rise amidst bill rate stability,” said
John A. Martins, President and Chief Executive Officer of Cross
Country Healthcare. He continued, “We find ourselves well
positioned to capitalize on the market as it normalizes, by
leveraging our strong balance sheet to make strategic investments,
that we believe will deliver long-term profitability."
Third quarter consolidated revenue was $315.1 million, a
decrease of 29% year-over-year and 7% sequentially. Consolidated
gross profit margin was 20.4%, down 160 basis points year-over-year
and 40 basis points sequentially. Net income attributable to common
stockholders was $2.6 million, as compared to $12.8 million in the
prior year and a net loss of $16.1 million in the prior quarter.
Diluted income per share (EPS) was $0.08, as compared to $0.36 in
the prior year and a net loss of $0.47 in the prior quarter.
Adjusted earnings before interest, taxes, depreciation, and
amortization (EBITDA) was $10.3 million, or 3.3% of revenue, as
compared with $27.2 million, or 6.2% of revenue, in the prior year,
and $14.2 million, or 4.2% of revenue, in the prior quarter.
Adjusted EPS was $0.12, as compared to $0.39 in the prior year and
$0.10 in the prior quarter.
For the nine months ended September 30, 2024, consolidated
revenue was $1,034.1 million, a decrease of 36% year-over-year.
Consolidated gross profit margin was 20.5%, down 190 basis points
year-over-year. Net loss attributable to common stockholders was
$10.8 million, or $0.32 per diluted share, as compared to net
income of $63.6 million, or $1.78 per diluted share, in the prior
year. Adjusted EBITDA was $39.8 million, or 3.8% of revenue, as
compared to $123.8 million, or 7.7% of revenue, in the prior year.
Adjusted EPS was $0.41, as compared to $1.92 in the prior year.
Quarterly Business Segment Highlights
Nurse and Allied Staffing
Revenue was $264.9 million, a decrease of 33% year-over-year and
9% sequentially. Contribution income was $19.3 million, a decrease
from $39.2 million year-over-year and an increase from $5.8 million
sequentially. The sequential increase was primarily the result of
$19.4 million of credit loss expense driven by a bankruptcy filing
by a single large customer recognized during the second quarter of
2024. Average field contract personnel on a full-time equivalent
(FTE) basis was 7,660, as compared with 9,849 in the prior year and
8,415 in the prior quarter. Revenue per FTE per day was $373, as
compared to $434 in the prior year and $377 in the prior
quarter.
Physician Staffing
Revenue was $50.3 million, an increase of 10% year-over-year and
4% sequentially. Contribution income was $4.6 million, an increase
from $2.6 million year-over-year and $4.0 million sequentially.
Total days filled were 24,424, as compared with 23,004 in the prior
year and 24,252 in the prior quarter. Revenue per day filled was
$2,058, as compared with $1,986 in the prior year and $1,992 in the
prior quarter.
Cash Flow and Balance Sheet Highlights
Net cash provided by operating activities for the three months
ended September 30, 2024 was $7.5 million, as compared to $70.3
million for the three months ended September 30, 2023 and $82.4
million for the three months ended June 30, 2024. We experienced a
4 day year-over-year improvement in days' sales outstanding. For
the nine months ended September 30, 2024, net cash provided by
operating activities was $95.9 million, as compared to $236.4
million in the prior year.
During the third quarter, the Company repurchased over 800,000
shares of the Company’s common stock for an aggregate price of
$11.9 million, at an average market price of $14.57 per share. As
of September 30, 2024, the Company had 32.6 million unrestricted
shares outstanding and $44.1 million remaining for share
repurchase.
As of September 30, 2024, the Company had $64.0 million in cash
and cash equivalents with no debt outstanding. There were no
borrowings drawn under its revolving senior secured asset-based
credit facility (ABL). As of September 30, 2024, borrowing base
availability under the ABL was $150.2 million, with $135.2 million
of availability net of $15.0 million of letters of credit.
Outlook for Fourth Quarter 2024
The guidance below applies to management’s expectations for the
fourth quarter of 2024.
Q4 2024 Range
Year-over-Year
Sequential
Change
Change
Revenue
$300 million - $310 million
(28%)% - (25%)%
(5%)% - (2%)%
Adjusted EBITDA*
$11.0 million - $13.0 million
(47%)% - (37%)%
6%% - 26%
Adjusted EPS*
$0.10 - $0.14
$(0.19) - $(0.15)
$(0.02) - $0.02
* Refer to discussion of non-GAAP
financial measures and the reconciliation tables below.
The above estimates are based on current management expectations
and, as such, are forward-looking and actual results may differ
materially. The above ranges do not include the potential impact of
any future divestitures, mergers, acquisitions, or other business
combinations, changes in debt structure, or future significant
share repurchases.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on
Wednesday, November 6, 2024, at 5:00 P.M. Eastern Time to discuss
its third quarter 2024 financial results. This call will be webcast
live and can be accessed at the Company’s website at
ir.crosscountry.com or by dialing 888-566-1290 from anywhere in the
U.S. or by dialing 773-799-3776 from non-U.S. locations - Passcode:
Cross Country. A replay of the webcast will be available from
November 6th through November 20th on the Company’s website and a
replay of the conference call will be available by telephone by
calling 800-835-4610 from anywhere in the U.S. or 203-369-3352 from
non-U.S. locations - Passcode: 4915.
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, Inc. is a market-leading, tech-enabled
workforce solutions and advisory firm with 38 years of industry
experience and insight. We help clients tackle complex
labor-related challenges and achieve high-quality outcomes, while
reducing complexity and improving visibility through data-driven
insights. Diversity, equality, and inclusion is at the heart of the
organization’s overall corporate social responsibility program, and
closely aligned with our core values to create a better future for
its people, communities, and its stockholders.
Copies of this and other press releases, as well as additional
information about the Company, can be accessed online at
ir.crosscountry.com. Stockholders and prospective investors can
also register to automatically receive the Company’s press
releases, filings with the Securities and Exchange Commission
(SEC), and other notices by e-mail.
NON-GAAP FINANCIAL MEASURES
This press release and the accompanying financial statement
tables reference non-GAAP financial measures, such as gross profit
margin, adjusted EBITDA, and adjusted EPS. Such non-GAAP financial
measures are provided as additional information and should not be
considered substitutes for, or superior to, financial measures
calculated in accordance with GAAP. Such non-GAAP financial
measures are provided for consistency and comparability to prior
year results; furthermore, management believes such non-GAAP
financial measures are useful to investors when evaluating the
Company’s performance, as such non-GAAP financial measures exclude
certain items that management believes are not indicative of the
Company’s future operating performance. Pro forma measures, if
applicable, are adjusted to include the results of our
acquisitions, and exclude the results of divestments, as if the
transactions occurred in the beginning of the periods mentioned.
Such non-GAAP financial measures may differ materially from the
non-GAAP financial measures used by other companies. The financial
statement tables that accompany this press release include a
reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure and a more detailed
discussion of each financial measure; as such, the financial
statement tables should be read in conjunction with the
presentation of these non-GAAP financial measures.
In addition, forward-looking adjusted EBITDA and adjusted EPS
for fiscal 2024 exclude potential charges or gains that may be
recorded during the fiscal year, including among other things, the
potential impact of any future divestitures, mergers, acquisitions,
or other business combinations, changes in debt structure, or
future significant share repurchases. We have not attempted to
provide reconciliations of such forward-looking non-GAAP earnings
guidance to the comparable GAAP measure, as permitted by Item
10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of
these potential charges or gains is inherently uncertain and
difficult to predict and is unavailable without unreasonable
efforts. In addition, the Company believes such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of our financial performance.
FORWARD-LOOKING STATEMENTS
In addition to historical information, this press release
contains statements relating to our future results (including
certain projections and business trends) that are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and the Private Securities
Litigation Reform Act of 1995, and are subject to the “safe harbor”
created by those sections. Forward-looking statements consist of
statements that are predictive in nature and/or depend upon or
refer to future events. Words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “estimates,” “suggests,” “appears,”
“seeks,” “will,” “could,” and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties,
and other factors that may cause our actual results and performance
to be materially different from any future results or performance
expressed or implied by these forward-looking statements. These
factors include, but are not limited to, the following: the overall
macroeconomic environment, including increased inflation and
interest rates, demand for the healthcare services that we provide,
both nationally and in the regions in which we operate, our ability
to attract and retain qualified nurses, physicians, and other
healthcare personnel, costs and availability of short-term housing
for our travel healthcare professionals, the functioning of our
information systems, the effect of cyber security risks and cyber
incidents on our business, the effect of existing or future
government regulation and federal and state legislative and
enforcement initiatives on our business, including data privacy and
protection laws, social, ethical, and security issues relating to
the use of artificial intelligence, our customers’ ability to pay
us for our services, our ability to successfully implement our
acquisition and development strategies, including our ability to
successfully integrate acquired businesses and realize synergies
from such acquisitions, the effect of liabilities and other claims
asserted against us, the effect of competition in the markets we
serve, our ability to successfully defend the Company, its
subsidiaries, and its officers and directors on the merits of any
lawsuit or determine its potential liability, if any, and other
factors, including, without limitation, the risk factors set forth
in Item 1A. “Risk Factors” in the Company’s Annual Report on Form
10-K for the year ended December 31, 2023, as filed and updated in
our Quarterly Reports on Form 10-Q and other filings with the SEC.
You should consult any further disclosures that the Company makes
on related subjects in its filings with the SEC.
Although we believe that these statements are based upon
reasonable assumptions, we cannot guarantee future results and
readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management’s opinions
only as of the date of this press release. There can be no
assurance that (i) we have correctly measured or identified all of
the factors affecting our business or the extent of these factors’
likely impact, (ii) the available information with respect to these
factors on which such analysis is based is complete or accurate,
(iii) such analysis is correct, or (iv) our strategy, which is
based in part on this analysis, will be successful. Except as may
be required by law, the Company undertakes no obligation to update
or revise forward-looking statements. All references to “the
Company,” “we,” “us,” “our,” or “Cross Country” in this press
release mean Cross Country Healthcare, Inc. and its consolidated
subsidiaries.
Cross Country Healthcare,
Inc.
Consolidated Statements of
Operations
(Unaudited, amounts in
thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
June 30,
September 30,
September 30,
2024
2023
2024
2024
2023
Revenue from services
$
315,119
$
442,291
$
339,771
$
1,034,064
$
1,605,693
Operating expenses:
Direct operating expenses
250,961
344,932
268,966
821,804
1,245,772
Selling, general and administrative
expenses
54,297
69,627
60,258
177,807
232,825
Credit loss expense
1,512
2,355
18,858
21,660
10,397
Depreciation and amortization
4,498
4,540
4,719
13,859
13,876
Restructuring costs
998
348
2,116
4,052
1,690
Legal and other losses
—
—
3,946
7,596
1,125
Impairment charges
—
186
114
718
719
Total operating expenses
312,266
421,988
358,977
1,047,496
1,506,404
Income (loss) from operations
2,853
20,303
(19,206
)
(13,432
)
99,289
Other expenses (income):
Interest expense
550
669
568
1,580
7,508
Loss on early extinguishment of debt
—
—
—
—
1,723
Interest income
(1,107
)
(5
)
(235
)
(1,515
)
(12
)
Other expense (income) , net
21
139
23
(1,013
)
145
Income (loss) before income taxes
3,389
19,500
(19,562
)
(12,484
)
89,925
Income tax expense (benefit)
834
6,688
(3,512
)
(1,681
)
26,332
Net income (loss) attributable to common
stockholders
$
2,555
$
12,812
$
(16,050
)
$
(10,803
)
$
63,593
Net income (loss) per share attributable
to common stockholders - Basic
$
0.08
$
0.37
$
(0.47
)
$
(0.32
)
$
1.80
Net income (loss) per share attributable
to common stockholders - Diluted
$
0.08
$
0.36
$
(0.47
)
$
(0.32
)
$
1.78
Weighted average common shares
outstanding:
Basic
33,016
34,954
33,960
33,728
35,386
Diluted
33,058
35,152
33,960
33,728
35,742
Cross Country Healthcare,
Inc.
Reconciliation of Non-GAAP
Financial Measures
(Unaudited, amounts in
thousands, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
June 30,
September 30,
September 30,
2024
2023
2024
2024
2023
Adjusted EBITDA:a
Net income (loss) attributable to common
stockholders
$
2,555
$
12,812
$
(16,050
)
$
(10,803
)
$
63,593
Interest expense
550
669
568
1,580
7,508
Income tax expense (benefit)b
834
6,688
(3,512
)
(1,681
)
26,332
Depreciation and amortization
4,498
4,540
4,719
13,859
13,876
Acquisition and integration-related
costs
—
13
—
—
59
Restructuring costsc
998
348
2,116
4,052
1,690
Legal, bankruptcy, and other lossesd
—
—
23,319
26,969
1,125
Impairment chargese
—
186
114
718
719
Loss on disposal of fixed assets
—
43
—
—
43
Loss on early extinguishment of debtf
—
—
—
—
1,723
Loss on lease termination
—
96
—
—
104
Interest income
(1,107
)
(5
)
(235
)
(1,515
)
(12
)
Other expense (income), net
21
—
23
(1,013
)
(2
)
Equity compensation
870
1,433
2,259
4,327
5,413
System conversion costsg
1,120
425
857
3,306
1,658
Adjusted EBITDAa
$
10,339
$
27,248
$
14,178
$
39,799
$
123,829
Adjusted EBITDA margina
3.3
%
6.2
%
4.2
%
3.8
%
7.7
%
Adjusted EPS:h
Numerator:
Net income (loss) attributable to common
stockholders
$
2,555
$
12,812
$
(16,050
)
$
(10,803
)
$
63,593
Non-GAAP adjustments - pretax:
Acquisition and integration-related
costs
—
13
—
—
59
Restructuring costsc
998
348
2,116
4,052
1,690
Legal, bankruptcy, and other lossesd
—
—
23,319
26,969
1,125
Impairment chargese
—
186
114
718
719
Other income, net
—
—
—
(1,115
)
—
Loss on early extinguishment of debtf
—
—
—
—
1,723
System conversion costsg
1,120
425
857
3,306
1,658
Tax impact of non-GAAP adjustments
(552
)
(208
)
(7,066
)
(9,023
)
(1,767
)
Adjusted net income attributable to common
stockholders - non-GAAP
$
4,121
$
13,576
$
3,290
$
14,104
$
68,800
Denominator:
Weighted average common shares - basic,
GAAP
33,016
34,954
33,960
33,728
35,386
Dilutive impact of share-based
payments
42
198
42
155
356
Adjusted weighted average common shares -
diluted, non-GAAP
33,058
35,152
34,002
33,883
35,742
Reconciliation:
Diluted EPS, GAAP
$
0.08
$
0.36
$
(0.47
)
$
(0.32
)
$
1.78
Non-GAAP adjustments - pretax:
Restructuring costsc
0.03
0.01
0.06
0.12
0.05
Legal, bankruptcy, and other lossesd
—
—
0.69
0.79
0.03
Impairment chargese
—
0.01
—
0.02
0.02
Other income, net
—
—
—
(0.03
)
—
Loss on early extinguishment of debtf
—
—
—
—
0.05
System conversion costsg
0.03
0.01
0.03
0.10
0.04
Tax impact of non-GAAP adjustments
(0.02
)
—
(0.21
)
(0.27
)
(0.05
)
Adjusted EPS, non-GAAPh
$
0.12
$
0.39
$
0.10
$
0.41
$
1.92
Cross Country Healthcare,
Inc.
Consolidated Balance
Sheets
(Unaudited, amounts in
thousands)
September 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
64,021
$
17,094
Accounts receivable, net
244,987
372,352
Income taxes receivablei
10,128
8,620
Prepaid expenses
4,554
7,681
Insurance recovery receivable
12,102
9,097
Other current assets
794
2,031
Total current assets
336,586
416,875
Property and equipment, net
28,975
27,339
Operating lease right-of-use assets
2,700
2,599
Goodwill
135,430
135,430
Other intangible assets, net
46,453
54,468
Deferred tax assetsi
9,038
5,979
Insurance recovery receivable
21,812
25,714
Cloud computing
9,735
5,987
Other assets
6,694
6,673
Total assets
$
597,423
$
681,064
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable and accrued expensesi
$
58,436
$
92,822
Accrued compensation and benefits
54,285
52,297
Operating lease liabilities
2,060
2,604
Earnout liability
4,100
6,794
Other current liabilities
1,796
1,559
Total current liabilities
120,677
156,076
Operating lease liabilities
2,348
2,663
Accrued claims
34,893
34,853
Earnout liability
—
5,000
Uncertain tax positions
11,169
10,603
Other liabilities
3,645
4,218
Total liabilities
172,732
213,413
Commitments and contingencies
Stockholders’ equity:
Common stock
3
4
Additional paid-in capital
204,273
236,417
Accumulated other comprehensive loss
(1,397
)
(1,385
)
Retained earningsi
221,812
232,615
Total stockholders’ equity
424,691
467,651
Total liabilities and stockholders’
equity
$
597,423
$
681,064
Cross Country Healthcare,
Inc.
Segment Dataj
(Unaudited, amounts in
thousands)
Three Months Ended
Year-over- Year
Sequential
September 30,
% of
September 30,
% of
June 30,
% of
% change
% change
2024
Total
2023
Total
2024
Total
Fav (Unfav)
Fav (Unfav)
Revenue from services:
Nurse and Allied Staffing
$
264,853
84
%
$
396,595
90
%
$
291,451
86
%
(33
)%
(9
)%
Physician Staffing
50,266
16
%
45,696
10
%
48,320
14
%
10
%
4
%
$
315,119
100
%
$
442,291
100
%
$
339,771
100
%
(29
)%
(7
)%
Contribution income:k
Nurse and Allied Staffing
$
19,251
$
39,226
$
5,820
(51
)%
231
%
Physician Staffing
4,629
2,576
4,033
80
%
15
%
23,880
41,802
9,853
(43
)%
142
%
Corporate overheadl
15,531
16,412
18,161
5
%
14
%
Depreciation and amortization
4,498
4,540
4,719
1
%
5
%
Restructuring costsc
998
348
2,116
(187
)%
53
%
Legal and other lossesm
—
—
3,946
—
%
100
%
Impairment chargese
—
186
114
100
%
100
%
Other costs
—
13
3
100
%
100
%
Income (loss) from operations
$
2,853
$
20,303
$
(19,206
)
(86
)%
115
%
Nine Months Ended
Year-over- Year
September 30,
% of
September 30,
% of
% change
2024
Total
2023
Total
Fav (Unfav)
Revenue from services:
Nurse and Allied Staffing
$
888,490
86
%
$
1,474,273
92
%
(40
)%
Physician Staffing
145,574
14
%
131,420
8
%
11
%
$
1,034,064
100
%
$
1,605,693
100
%
(36
)%
Contribution income:k
Nurse and Allied Staffing
$
52,254
$
162,876
(68
)%
Physician Staffing
11,800
7,841
50
%
64,054
170,717
(62
)%
Corporate overheadl
51,258
53,959
5
%
Depreciation and amortization
13,859
13,876
—
%
Restructuring costsc
4,052
1,690
(140
)%
Legal and other lossesm
7,596
1,125
(575
)%
Impairment chargese
718
719
—
%
Other costs
3
59
95
%
(Loss) income from operations
$
(13,432
)
$
99,289
(114
)%
Other costs include acquisition and
integration-related costs.
Cross Country Healthcare,
Inc.
Summary Condensed Consolidated
Statements of Cash Flows
(Unaudited, amounts in
thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
June 30,
September 30,
September 30,
2024
2023
2024
2024
2023
Net cash provided by operating
activities
$
7,470
$
70,311
$
82,401
$
95,882
$
236,424
Net cash used in investing activities
(1,124
)
(3,408
)
(2,849
)
(6,183
)
(10,900
)
Net cash used in financing activities
(11,926
)
(53,273
)
(15,193
)
(42,772
)
(214,825
)
Effect of exchange rate changes on
cash
—
(2
)
—
—
(2
)
Change in cash and cash equivalents
(5,580
)
13,628
64,359
46,927
10,697
Cash and cash equivalents at beginning of
period
69,601
673
5,242
17,094
3,604
Cash and cash equivalents at end of
period
$
64,021
14,301
$
69,601
$
64,021
$
14,301
Cross Country Healthcare,
Inc.
Other Financial Data
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
June 30,
September 30,
September 30,
2024
2023
2024
2024
2023
Revenue from services
$
315,119
$
442,291
$
339,771
$
1,034,064
$
1,605,693
Less: Direct operating expenses
250,961
344,932
268,966
821,804
1,245,772
Gross profit
$
64,158
$
97,359
$
70,805
$
212,260
$
359,921
Consolidated gross profit marginn
20.4
%
22.0
%
20.8
%
20.5
%
22.4
%
Nurse and Allied
Staffing statistical data:
FTEso
7,660
9,849
8,415
8,400
11,251
Average Nurse and Allied Staffing revenue
per FTE per dayp
$
373
$
434
$
377
$
383
$
476
Physician Staffing
statistical data:
Days filledq
24,424
23,004
24,252
72,461
68,927
Revenue per day filledr
$
2,058
$
1,986
$
1,992
$
2,009
$
1,907
(a)
Adjusted EBITDA, a non-GAAP financial
measure, is defined as net income (loss) attributable to common
stockholders before interest expense, income tax expense (benefit),
depreciation and amortization, acquisition and integration-related
(benefits) costs, restructuring (benefits) costs, legal and other
losses, customer bankruptcy loss, impairment charges, gain or loss
on derivative, loss on early extinguishment of debt, gain or loss
on disposal of fixed assets, gain or loss on lease termination,
gain or loss on sale of business, other expense (income), net,
equity compensation, and system conversion costs. Adjusted EBITDA
is not and should not be considered a measure of financial
performance under GAAP. Management presents Adjusted EBITDA because
it believes that Adjusted EBITDA is a useful supplement to net
income (loss) attributable to common stockholders as an indicator
of operating performance. Management uses Adjusted EBITDA for
planning purposes and as one performance measure in its incentive
programs for certain members of its management team. Adjusted
EBITDA, as defined, closely matches the operating measure as
defined by the Company's credit facilities. Adjusted EBITDA Margin
is calculated by dividing Adjusted EBITDA by the Company's
consolidated revenue.
(b)
The decrease in income tax expense for the
three and nine months ended September 30, 2024 related to a
decrease in book income primarily driven by credit loss
expense.
(c)
Restructuring costs were primarily
comprised of employee termination costs, lease-related exit costs,
and reorganization costs as part of planned cost savings
initiatives.
(d)
Includes legal costs and other settlement
charges as presented on the consolidated statements of operations,
losses pertaining to matters outside the normal course of
operations, and $19.4 million of credit loss expense driven by a
bankruptcy filing by a single large customer for the nine months
ending September 30, 2024. There was no significant impact on
operations from this client as the majority of the business had
been wound down in the prior year. For the nine months ended
September 30, 2023, the Company incurred $1.1 million, including
legal fees, to settle a wage and hour class action lawsuit.
(e)
Impairment charges for the nine months
ended September 30, 2024 were related to right-of-use assets and
related property in connection with vacated leases during 2024.
Impairment charges for the nine months ended September 30, 2023
primarily related to the write-off of an abandoned IT project.
(f)
Loss on early extinguishment of debt for
the nine months ended September 30, 2023 consisted of the write-off
of debt issuance costs related to the payoff and termination of the
term loan on June 30, 3023.
(g)
System conversion costs include enterprise
resource planning system costs related to the upgrading and
integrating of our middle and back-office platforms, with certain
development costs capitalized and amortized in accordance with the
Company’s policies, and applicant tracking system costs related to
the Company’s project to replace its legacy system supporting its
travel nurse staffing business.
(h)
Adjusted EPS, a non-GAAP financial
measure, is defined as net income (loss) attributable to common
stockholders per diluted share before the diluted EPS impact of
acquisition and integration-related (benefits) costs, restructuring
(benefits) costs, legal and other losses, customer bankruptcy loss,
impairment charges, gain or loss on derivative, loss on early
extinguishment of debt, gain or loss on sale of business, system
conversion costs, and nonrecurring income tax adjustments. Adjusted
EPS is not and should not be considered a measure of financial
performance under GAAP. Management presents Adjusted EPS because it
believes that Adjusted EPS is a useful supplement to its reported
EPS as an indicator of operating performance. Management believes
Adjusted EPS provides a more useful comparison of the Company’s
underlying business performance from period to period and is more
representative of the future earnings capacity of the Company than
EPS. Quarterly non-GAAP adjustment may vary due to rounding.
(i)
Financial information included in the
December 31, 2023 balance sheet includes immaterial revisions to
the Company's previously-reported financial information. Please see
the Company's Quarterly Report on Form 10-Q for the quarter ended
September 30, 2024, as filed with the SEC, for more
information.
(j)
Segment data is provided in accordance
with the Segment Reporting Topic of the Financial Accounting
Standards Board Accounting Standards Codification.
(k)
Contribution income is defined as income
(loss) from operations before depreciation and amortization,
acquisition and integration-related (benefits) costs, restructuring
(benefits) costs, legal and other losses, impairment charges, and
corporate overhead. Contribution income is a financial measure used
by management when assessing segment performance.
(l)
Corporate overhead includes unallocated
executive leadership and other centralized corporate functional
support costs such as finance, IT, legal, human resources, and
marketing, as well as public company expenses and Company-wide
projects (initiatives).
(m)
Legal and other losses includes legal
costs and other settlement charges as presented on the consolidated
statements of operations and losses pertaining to matters outside
the normal course of operations.
(n)
Gross profit is defined as revenue from
services less direct operating expenses. The Company’s gross profit
excludes allocated depreciation and amortization expense. Gross
profit margin is calculated by dividing gross profit by revenue
from services.
(o)
FTEs represent the average number of Nurse
and Allied Staffing contract personnel on a full-time equivalent
basis.
(p)
Average revenue per FTE per day is
calculated by dividing Nurse and Allied Staffing revenue, excluding
permanent placement, per FTE by the number of days worked in the
respective periods.
(q)
Days filled is calculated by dividing the
total hours invoiced during the period, including an estimate for
the impact of accrued revenue, by 8 hours.
(r)
Revenue per day filled is calculated by
dividing revenue as reported by days filled for the period
presented.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105337918/en/
Cross Country Healthcare, Inc. William J. Burns, Executive Vice
President & Chief Financial Officer 561-237-2555
wburns@crosscountry.com
Grafico Azioni Cross Country Health (NASDAQ:CCRN)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Cross Country Health (NASDAQ:CCRN)
Storico
Da Gen 2024 a Gen 2025
