CCRN
Cross Country Healthcare INC
NASDAQ
8-K: Cross Country Healthcare Announces First Quarter 2025 Financial Results
Sentiment:
Earnings Release
7 May 2025 4:28 PM
Cross Country Healthcare reports a decrease in revenue and adjusted EBITDA for Q1 2025, while highlighting growth in Homecare and Physician Staffing.
Worse than expected
Revenue, net income, and adjusted EBITDA were all down year-over-year.
Summary
- Cross Country Healthcare announced its financial results for the first quarter ended March 31, 2025.
- The company reported a revenue of $293.4 million, a 23% decrease year-over-year and a 5% decrease sequentially.
- Gross profit margin was 20.0%, down 40 basis points year-over-year and flat sequentially.
- The net loss attributable to common stockholders was $0.5 million, compared to a net income of $2.7 million in the prior year.
- Diluted EPS was a net loss of $0.02, compared to net income of $0.08 in the prior year.
- Adjusted EBITDA was $8.6 million, or 2.9% of revenue, compared to $15.3 million, or 4.0% of revenue, in the prior year.
- Adjusted EPS was $0.06, compared to $0.19 in the prior year.
- Homecare Staffing experienced double-digit sequential and year-over-year revenue growth.
- Physician Staffing experienced year-over-year revenue growth.
- Cross Country Education experienced double-digit sequential revenue growth.
- The company had $81 million of cash on hand and no debt as of March 31, 2025.
- The company will not host an earnings conference call due to the pending merger with Aya Healthcare.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While some segments show growth, overall financial results are down year-over-year. The pending merger adds uncertainty.
Positives
- Homecare Staffing experienced double-digit sequential and year-over-year revenue growth.
- Physician Staffing experienced year-over-year revenue growth.
- Cross Country Education experienced double-digit sequential revenue growth.
- The company maintains a strong balance sheet with $81 million in cash and no debt.
- The company experienced a 15-day year-over-year improvement in days sales outstanding.
Negatives
- Consolidated revenue decreased by 23% year-over-year to $293.4 million.
- Adjusted EBITDA decreased by 44% year-over-year to $8.6 million.
- Net loss attributable to common stockholders was $0.5 million, compared to a net income of $2.7 million in the prior year.
- Nurse and Allied Staffing revenue decreased by 27% year-over-year to $242.3 million.
Risks
- The company cites risks and uncertainties related to the pending merger with Aya Healthcare, including regulatory approvals and potential litigation.
- Worldwide economic or political changes could affect the markets the company serves.
- Global pandemics, epidemics, or other public health crises could impact the company.
- Changes in marketplace conditions, such as alternative modes of healthcare delivery, could affect the company.
- Disruptions in the global credit and financial markets could pose risks.
Future Outlook
The company will not provide forward-looking guidance due to the pending acquisition by Aya Healthcare.
Management Comments
- Our first quarter results reflect solid execution with both Homecare and Physician Staffing business reporting solid year over year growth, said John A. Martins, President and Chief Executive Officer of Cross Country Healthcare.
- As the market for core nurse and allied continues to stabilize, we remain focused on driving productivity across our business, leveraging our investments in AI automation as well as our cost-effective center of excellence in India to fuel efficiency and improved profitability.
- Looking ahead, we continue working with Aya Healthcare and the Federal Trade Commission towards the successful consummation of the merger transaction in the second half of this year.
Industry Context
The healthcare staffing industry is facing fluctuating demand and pricing pressures, impacting revenue for companies like Cross Country Healthcare, while certain segments like homecare and physician staffing are showing resilience.
Comparison to Industry Standards
- Given the lack of specific competitor data in the release, a detailed comparison to industry standards is limited.
- However, the decline in Nurse and Allied Staffing revenue suggests potential underperformance compared to competitors who may have better navigated the market fluctuations.
- The growth in Physician Staffing could indicate a competitive advantage in that specific segment.
Stakeholder Impact
- Shareholders may be concerned about the decrease in revenue and profitability.
- Employees may experience uncertainty due to the pending merger.
- Customers may be affected by changes resulting from the merger.
Next Steps
- The company will continue working with Aya Healthcare and the Federal Trade Commission towards the successful consummation of the merger transaction in the second half of this year.
Key Dates
- December 3, 2024: The Company entered into a merger agreement with Aya Healthcare, Inc.
- March 31, 2025: End of the first quarter for which financial results are reported.
- May 7, 2025: Date of the press release announcing the first quarter 2025 financial results.
Keywords
healthcare staffing, financial results, Cross Country Healthcare, revenue, EBITDA, merger, Aya Healthcare, staffing, homecare, physician staffing
CCRN
Cross Country Healthcare INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
7 May 2025 4:45 PM
Quarterly Report
- Revenue decreased by 22.6% year-over-year.
- Net loss attributable to common stockholders was $0.5 million, compared to a net income of $2.7 million in the same period last year.
Delay expected
7 May 2025 4:45 PM
Quarterly Report
- The closing of the Aya Merger is expected in the second half of 2025, subject to regulatory approvals, indicating a potential delay due to the FTC's Second Request for additional information.
Worse than expected
7 May 2025 4:28 PM
Earnings Release
- Revenue, net income, and adjusted EBITDA were all down year-over-year.
Worse than expected
16 April 2025 4:33 PM
Form 10-K/A Amendment
- The company did not achieve its minimum performance threshold for Company Annual Adjusted EBITDA of $64 million under the Annual Incentive Plan or $50 million pursuant to the additional element added during the year.
- The company slightly exceeded the threshold performance hurdle of $1.33 billion for Company Annual Revenue.
Worse than expected
5 March 2025 4:45 PM
Annual Results
- The company's revenue decreased by 33.5% year-over-year.
- The company experienced a net loss attributable to common stockholders of $14.6 million, compared to a net income of $72.6 million in the previous year.
Delay expected
5 March 2025 4:45 PM
Annual Results
- The company now expects that the Aya Merger will close in the second half of 2025, subject to the satisfaction of other customary closing conditions, including regulatory approvals, a delay from the previously expected first half of 2025.
Worse than expected
5 March 2025 4:25 PM
Earnings Release
- The company's revenue, net income, and adjusted EBITDA all decreased significantly compared to the prior year.
Delay expected
21 February 2025 5:16 PM
Form DEFA14A Filing
- The merger is delayed due to a second request for information from the FTC, pushing the expected closing to the second half of 2025.
Worse than expected
21 February 2025 5:16 PM
Form DEFA14A Filing
- The merger closing is delayed, which is worse than the initially expected timeline.
Worse than expected
21 February 2025 4:58 PM
Current Report (8-K)
- The merger closing is delayed to the second half of 2025 due to the FTC's Second Request.
Delay expected
21 February 2025 4:58 PM
Current Report (8-K)
- The merger between Cross Country Healthcare and Aya Healthcare is now expected to close in the second half of 2025 due to a second request for information from the FTC.
Delay expected
22 January 2025 4:27 PM
Merger Announcement
- The applicable waiting period under the HSR Act was extended to 11:59 p.m Eastern Time on February 20, 2025.
Better than expected
6 January 2025 10:30 PM
Schedule 13D Filing
- The increase in beneficial ownership by a prominent investment firm like Magnetar Capital is generally viewed as a positive signal by the market, indicating confidence in the company's prospects or valuation.
Better than expected
3 January 2025 6:42 PM
Beneficial Ownership Amendment
- The document indicates an increase in beneficial ownership by a significant institutional investor (Magnetar), which is generally perceived as a positive signal of confidence in the company's future prospects.
- Magnetar's stake has grown to 7.20%, indicating a substantial and growing commitment to the company.
Better than expected
4 December 2024 5:16 PM
Merger Announcement
- The acquisition price represents a significant premium for Cross Country shareholders, indicating a better than expected outcome for them.
Better than expected
4 December 2024 4:50 PM
Merger Announcement
- The acquisition includes a substantial premium of 67% and 68% over recent trading prices, indicating a better than expected outcome for shareholders.
Better than expected
4 December 2024 8:50 AM
Merger Announcement
- The acquisition price represents a significant premium of 67% to Cross Country's closing price on December 3, 2024, indicating a better than expected outcome for shareholders.
Worse than expected
7 November 2024 3:59 PM
Quarterly Report
- The company's revenue decreased by 28.8% year-over-year, indicating a worse performance compared to the previous year.
- Net income attributable to common stockholders decreased significantly from $12.8 million to $2.6 million year-over-year, indicating a worse performance compared to the previous year.
- The Nurse and Allied Staffing segment experienced a 33.2% revenue decline, indicating a worse performance compared to the previous year.
Worse than expected
6 November 2024 4:28 PM
Quarterly Report
- The company's revenue, net income, and adjusted EBITDA all decreased significantly year-over-year, indicating worse than expected results.
- The company's gross profit margin also declined, further contributing to the worse than expected results.
Worse than expected
1 August 2024 10:15 AM
Quarterly Report
- The company's revenue decreased by 37% year-over-year.
- The company reported a net loss of $16.1 million compared to a net income of $21.3 million in the same period last year.
- The Nurse and Allied Staffing segment experienced a significant revenue decline of 41.2%.
Worse than expected
31 July 2024 4:26 PM
Quarterly Report
- The company's revenue, net income, and adjusted EBITDA all decreased significantly year-over-year, indicating worse than expected results.
Worse than expected
9 May 2024 4:05 PM
Current Report
- The company is expecting a $20 million bad debt charge, which is a negative impact on their financials.
Worse than expected
2 May 2024 7:12 AM
Quarterly Report
- The company's revenue decreased by 39% year-over-year, indicating a significant downturn in performance.
- Net income attributable to common stockholders decreased substantially from $29.4 million to $2.7 million, reflecting a significant decline in profitability.
Worse than expected
1 May 2024 4:27 PM
Quarterly Report
- The company's revenue, net income, and adjusted EBITDA all decreased significantly year-over-year, indicating worse than expected results.
- The company's gross profit margin also declined, further indicating worse than expected results.
- The company's diluted EPS and adjusted EPS were also significantly lower than the prior year, indicating worse than expected results.
Worse than expected
1 April 2024 8:00 AM
Proxy Statement
- The company did not achieve its threshold performance hurdles for Company Annual Adjusted EBITDA or Company Annual Revenue in Fiscal 2023, resulting in no awards for the Objective Bonus component for NEOs.
- The company's Fiscal 2023 Adjusted EBITDA margin of 7.2% was below the performance hurdle of 7.5%.
Worse than expected
22 February 2024 6:05 PM
Annual Results
- The company's revenue decreased by 28% year-over-year, indicating worse than expected results.
- Net income attributable to common stockholders decreased significantly, indicating worse than expected results.
Worse than expected
21 February 2024 4:24 PM
Quarterly Report
- The company's revenue, net income, and adjusted EBITDA all decreased significantly year-over-year, indicating worse than expected results.
- The company's guidance for Q1 2024 also indicates a continued decline in financial performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.