CCRN
Cross Country Healthcare INC
NASDAQ
8-K: Cross Country Healthcare Reports Mixed Q2 2024 Results Amidst Challenging Market
Sentiment:
Quarterly Report
31 July 2024 4:26 PM
Cross Country Healthcare's second quarter results show a significant year-over-year revenue decline, but some positive signs in physician staffing and cash flow.
Worse than expected
The company's revenue, net income, and adjusted EBITDA all decreased significantly year-over-year, indicating worse than expected results.
Summary
- Cross Country Healthcare announced its financial results for the second quarter of 2024, revealing a challenging period with a 37% year-over-year decrease in revenue to $339.8 million.
- The company experienced a net loss of $16.1 million, a significant drop compared to the $21.3 million profit in the same quarter last year.
- Adjusted EBITDA was $14.2 million, a 68% decrease year-over-year, and the adjusted EPS was $0.10, down from $0.69 in the prior year.
- Despite the overall decline, the company saw positive growth in physician staffing revenue, which increased by 7% year-over-year and 3% sequentially.
- Cash flow from operations was strong at $82.4 million, driven by improved collections, and the company repurchased approximately 980,000 shares for $14.9 million.
- The company's balance sheet remains strong with $70 million in cash and no debt as of June 30, 2024.
- For the six months ended June 30, 2024, consolidated revenue was $718.9 million, a decrease of 38% year-over-year, and the net loss was $13.4 million.
Sentiment
Score: 4
Explanation: The document presents a mixed picture with significant year-over-year declines in revenue and profitability, but some positive signs in cash flow and physician staffing. The overall tone is cautious, reflecting the challenging market conditions.
Positives
- Physician staffing revenue saw a 7% year-over-year and 3% sequential increase.
- The company generated $82.4 million in cash flow from operations in Q2 2024.
- Days Sales Outstanding improved by 7 days year-over-year and 18 days sequentially.
- The company maintains a strong balance sheet with $70 million in cash and no debt.
- The company repurchased approximately 980,000 shares of common stock for $14.9 million.
Negatives
- Consolidated revenue decreased by 37% year-over-year and 10% sequentially.
- The company reported a net loss of $16.1 million, compared to a profit of $21.3 million in the same quarter last year.
- Adjusted EBITDA decreased by 68% year-over-year.
- Adjusted EPS decreased to $0.10 from $0.69 in the prior year.
- Nurse and Allied Staffing revenue decreased by 41% year-over-year and 12% sequentially.
- Contribution income for Nurse and Allied Staffing decreased significantly year-over-year and sequentially.
Risks
- The company is facing a challenging environment for core nurse and allied staffing.
- There is a risk of continued revenue decline in the Nurse and Allied Staffing segment.
- The company's financial performance is subject to macroeconomic conditions, including inflation and interest rates.
- The company's ability to attract and retain qualified healthcare personnel is a risk.
- The company's future performance is subject to various risks, including cyber security incidents and government regulations.
Future Outlook
The company expects Q3 2024 revenue to be between $305 million and $315 million, a 29% to 31% decrease year-over-year, and adjusted EBITDA to be between $10 million and $13 million, a 52% to 63% decrease year-over-year. Adjusted EPS is expected to be between $0.08 and $0.12.
Management Comments
- John A. Martins, President and Chief Executive Officer, stated that the second quarter results were in line with expectations, reflecting the company's ability to execute in a challenging environment.
- He also mentioned being encouraged by a rise in demand for services and cautiously optimistic about nearing an inflection point in growing the number of professionals on assignment.
- He highlighted the strong pipeline for new business driven by the Intellify platform.
Industry Context
The healthcare staffing industry is currently facing challenges, including decreased demand for travel nurses and allied health professionals, which is reflected in Cross Country Healthcare's results. However, the company's physician staffing segment is showing resilience, which aligns with the broader trend of increased demand for physician services.
Comparison to Industry Standards
- Cross Country Healthcare's revenue decline of 37% year-over-year is significant and likely worse than some of its competitors who have diversified revenue streams.
- Competitors like AMN Healthcare have also reported revenue declines, but the magnitude of the decline varies, suggesting that Cross Country may be more heavily impacted by the current market conditions.
- The company's adjusted EBITDA margin of 4.2% is lower than historical averages for the industry, indicating a potential need for cost management improvements.
- The strong cash flow from operations is a positive sign, but it needs to be sustained to support future growth and investments.
Stakeholder Impact
- Shareholders are negatively impacted by the decrease in revenue and profitability.
- Employees may be affected by the company's cost-saving initiatives.
- Customers may experience changes in service delivery due to the challenging market conditions.
- Suppliers may be impacted by the company's financial performance.
Next Steps
- The company will hold a conference call on July 31, 2024, to discuss the second quarter results.
- The company will focus on growing the number of professionals on assignment and leveraging its Intellify platform for new business.
Key Dates
- July 31, 2024: Date of the press release announcing Q2 2024 financial results and the date of the 8-K filing.
- June 30, 2024: End of the second quarter for which financial results are reported.
Keywords
Healthcare Staffing, Nurse Staffing, Physician Staffing, Financial Results, EBITDA, EPS, Revenue, Cash Flow, Share Repurchase
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.