CCRN
Cross Country Healthcare INC
NASDAQ
10-K: Cross Country Healthcare Reports 2023 Annual Results Amidst Market Normalization
Sentiment:
Annual Results
22 February 2024 6:05 PM
Cross Country Healthcare's 2023 revenue declined by 28% due to normalization in travel nurse staffing, though the company saw growth in other segments.
Worse than expected
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.
Summary
- Cross Country Healthcare's revenue decreased by 28% to $2.0 billion in 2023, primarily due to reduced travel and local staffing volumes and lower bill rates in the Nurse and Allied Staffing segment.
- This decline was partially offset by double-digit revenue growth in Cross Country Education and the Physician Staffing segment.
- Net income attributable to common stockholders was $72.6 million, a decrease from $188.5 million in the previous year.
- The company repaid $73.9 million in term loan obligations and terminated the Term Loan Agreement.
- Cash flow from operating activities was $248.5 million, with net repayments of $150.7 million on debt.
- As of December 31, 2023, the company had $17.1 million in cash and no borrowings under its asset-based loan agreement.
Sentiment
Score: 4
Explanation: The document presents a mixed picture with significant revenue decline and reduced profitability, but also highlights growth in certain segments and strategic investments. The overall sentiment is cautiously negative due to the financial downturn.
Positives
- The company experienced double-digit revenue growth in Cross Country Education and the Physician Staffing segment.
- The company successfully repaid its term loan obligations.
- The company continues to invest in core technologies, launching IRP and per diem modules on Intellify and Xperience.
- The company has a strong focus on corporate social responsibility and diversity, equity, and inclusion.
Negatives
- The Nurse and Allied Staffing segment experienced a significant revenue decline of 31.8%.
- The company's net income decreased substantially compared to the previous year.
- Bad debt expense increased due to a deterioration in accounts receivable aging from a single MSP customer.
- The company's average revenue per FTE per day in the Nurse and Allied Staffing segment decreased by 18.2%.
Risks
- The company's operations and financial results may be affected by pandemics, epidemics, or other public health crises.
- Global economic conditions and economic pressures could lead to decreased demand or pricing for the company's services.
- The company may face challenges competing in the marketplace if it is unable to anticipate and quickly respond to changing marketplace conditions.
- The company is dependent on the proper functioning of its information systems and applications hosted by its vendors.
- The company may be unable to recruit and retain enough quality healthcare professionals to meet customer demands.
- The healthcare industry is highly regulated, and changes in the political, economic, or regulatory environment could reduce the funds available to purchase the company's services.
- The company is subject to various litigation, claims, investigations, and other proceedings which could result in substantial judgments, settlement costs, or uninsured liabilities.
Future Outlook
The company expects its technology initiatives to drive growth through better operational execution, enhanced productivity, and a world-class customer and candidate experience. The company is committed to growing its base of clinicians on assignment and market share while maintaining quality.
Management Comments
- The company is continuing on a path of digital transformation and innovation across its business.
- The company is committed to continuing to grow its base of clinicians on assignment and its market share while maintaining the quality it is known for.
Industry Context
The healthcare staffing industry is experiencing a shift in demand and pricing, with a decline in travel nurse staffing and a moderate expansion in locum tenens. The company is adapting to these changes by focusing on technology and diversifying its service offerings.
Comparison to Industry Standards
- Staffing Industry Analysts estimates the 2023 healthcare staffing market at $55.7 billion, with travel nursing at $29.9 billion, per diem nursing at $7.0 billion, allied health at $11.6 billion, and locum tenens and advanced practitioners at $7.2 billion.
- The company's 4% market share in 2022 positions it as a leading healthcare staffing firm in the U.S.
- The company competes with other national companies such as AMN Healthcare Services, CHG Healthcare Services, and Aya Healthcare, as well as numerous smaller, regional, and local companies.
- The company is one of the largest firms in travel nurse staffing, per diem nurse staffing, allied healthcare staffing, and locum tenens.
Stakeholder Impact
- Shareholders may be concerned about the decrease in revenue and net income.
- Employees may be affected by restructuring and cost-cutting measures.
- Customers may benefit from the company's technology investments and expanded service offerings.
- Healthcare professionals may be affected by changes in pay rates and assignment opportunities.
Next Steps
- The company will continue to modernize technologies and processes to optimize relationships with healthcare professionals and customers.
- The company will continue to focus on providing workforce solutions offerings to new customers.
- The company will continue to expand the services it provides to current customers, including usage of Intellify.
- The company will continue to diversify its customer base.
- The company will continue to access more candidates.
Legal Proceedings
- The company is party to various litigation, claims, investigations, and other proceedings, primarily related to employee-related matters, professional liability, tax, and payroll practices.
Related Party Transactions
- The company has an arrangement for digital marketing services with a firm related to a board member.
- The company provides services to entities affiliated with certain board members.
- The company previously rented office space from an entity related to a former executive.
Key Dates
- June 8, 2021: The company entered into a Term Loan Agreement.
- November 18, 2021: The company amended the Term Loan Agreement, providing an incremental term loan.
- October 3, 2022: The company acquired Mint Medical Physician Staffing, LP and Lotus Medical Staffing LLC.
- December 13, 2022: The company acquired HireUp Leadership Inc.
- April 14, 2023: The company amended the Term Loan Agreement, providing the option for interest rates based on SOFR or Base Rate.
- June 30, 2023: The company repaid all outstanding obligations under the term loan and terminated the Term Loan Agreement.
- September 29, 2023: The company amended its Asset-Based Loan Agreement, changing the minimum fixed charge coverage ratio.
- December 31, 2023: End of the fiscal year.
- February 14, 2024: Date of share information.
- February 22, 2024: Date of the report.
Keywords
healthcare staffing, workforce solutions, travel nursing, physician staffing, locum tenens, allied health, managed service programs, MSP, recruitment process outsourcing, RPO, digital transformation, Intellify, Xperience, healthcare professionals, talent management
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.