CCRN
Cross Country Healthcare INC
NASDAQ
10-Q: Cross Country Healthcare Reports Q1 2024 Results: Revenue Declines Amidst Market Shifts
Sentiment:
Quarterly Report
2 May 2024 7:12 AM
Cross Country Healthcare's first quarter 2024 revenue decreased by 39% year-over-year, primarily due to reduced demand in the Nurse and Allied Staffing segment, while the Physician Staffing segment saw growth.
Worse than expected
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.
Summary
- Cross Country Healthcare's revenue for the first quarter of 2024 was $379.2 million, a 39% decrease compared to $622.7 million in the same period of 2023.
- The decline in revenue was primarily driven by a decrease in demand and average bill rates within the Nurse and Allied Staffing segment, particularly in travel and local large acute settings.
- The Physician Staffing segment experienced a double-digit revenue growth due to price and volume increases.
- Net income attributable to common stockholders was $2.7 million in Q1 2024, significantly lower than the $29.4 million reported in Q1 2023.
- Operating cash flow was $6.0 million for the quarter, with a decrease in working capital due to reduced net receivables, partially offset by the timing of disbursements.
- The company had no debt outstanding as of March 31, 2024, and cash and cash equivalents totaled $5.2 million.
- The company repurchased 310,235 shares of common stock for $6.4 million during the quarter.
Sentiment
Score: 3
Explanation: The document reflects a negative sentiment due to the significant decline in revenue and net income, despite some positive aspects like growth in the Physician Staffing segment and no debt. The overall tone is cautious and focused on managing current market conditions.
Positives
- The Physician Staffing segment experienced double-digit revenue growth due to price and volume increases.
- The company has no debt outstanding as of March 31, 2024.
- HomeCare Staffing and Education within the Nurse and Allied Staffing segment experienced revenue growth in the first quarter of 2024.
Negatives
- The Nurse and Allied Staffing segment experienced a significant 43% decrease in revenue.
- Net income attributable to common stockholders decreased substantially to $2.7 million from $29.4 million year-over-year.
- Direct operating expenses increased as a percentage of revenue to 79.6% from 77.6% in the prior year period.
- Selling, general and administrative expenses increased as a percentage of revenue to 16.7% from 13.5% in the prior year period.
Risks
- The company faces risks related to macroeconomic factors, including inflation and interest rates, which could impact customer payments and demand.
- The company's ability to attract and retain qualified healthcare personnel is a key risk.
- Cybersecurity risks and incidents could negatively affect the company's operations.
- Changes in government regulations and legislative initiatives could impact the business.
- The company's ability to successfully implement acquisition and development strategies is a risk factor.
Future Outlook
The company will continue to remain responsive to current market conditions while ensuring a solid foundation for growth, including strategic tech investments and expanding customer relationships.
Management Comments
- The company will continue to remain responsive to the current market conditions while also ensuring that we maintain a solid foundation for growth once demand inflects.
- That includes ongoing strategic tech investments that further enhance our competitive positioning, and expanding our existing customer relationships.
Industry Context
The healthcare staffing industry is experiencing a shift in demand, with a decrease in travel nurse assignments and a rise in demand for physician staffing. This report reflects the impact of these trends on Cross Country Healthcare's performance.
Comparison to Industry Standards
- The decline in revenue in the Nurse and Allied Staffing segment is likely reflective of broader trends in the travel nurse market, where demand has decreased from pandemic highs.
- The growth in the Physician Staffing segment is consistent with the increasing demand for locum tenens and other physician staffing solutions.
- The company's performance should be compared to other major healthcare staffing firms such as AMN Healthcare and CHG Healthcare to assess its relative position in the market.
- The company's focus on technology investments aligns with industry trends towards digital transformation and improved efficiency in healthcare staffing.
Stakeholder Impact
- Shareholders will be concerned about the significant decrease in revenue and net income.
- Employees may be affected by cost management measures and restructuring activities.
- Customers may experience changes in service delivery due to market shifts.
- Suppliers and creditors may be impacted by the company's financial performance.
Next Steps
- The company will continue to make strategic tech investments.
- The company will focus on expanding existing customer relationships.
Legal Proceedings
- The company recorded legal and other losses of $3.7 million representing an offer to settle a lawsuit, as well as estimated costs related to an unrecoverable asset.
Related Party Transactions
- The company has an arrangement for digital marketing services with a firm related to Mr. Kevin C. Clark, the company's non-executive Chairman of the Board of Directors. The expenses and payable balance were immaterial.
- The company provides services to entities affiliated with certain members of the Board of Directors. Revenue and accounts receivable related to these transactions were immaterial.
Key Dates
- December 13, 2022: Cross Country Healthcare purchased HireUp Leadership Inc.
- October 3, 2022: Cross Country Healthcare purchased Mint Medical Physician Staffing, LP and Lotus Medical Staffing LLC.
- August 16, 2022: The company's Board of Directors authorized a stock repurchase program.
- June 8, 2021: Cross Country Healthcare purchased Workforce Solutions Group, Inc.
- April 5, 2022: Dan White signed an Arbitration Agreement and Employment Agreement with Cross Country Healthcare.
- February 14, 2024: Cross Country Staffing, Inc. and Dan White entered into a Confidential Separation Agreement and General Release of All Claims.
- March 31, 2024: Dan White's last day of employment with Cross Country Staffing, Inc. and the date of the Addendum to the Separation Agreement.
- April 24, 2024: The Board of Directors adopted amendments to the company's Amended and Restated By-laws.
- April 22, 2024: The company had 34,774,058 shares of common stock outstanding.
- May 2, 2024: The date of the filing of the Quarterly Report on Form 10-Q.
Keywords
healthcare staffing, travel nurses, physician staffing, revenue decline, financial results, quarterly report, workforce solutions, managed service programs, talent management, healthcare professionals
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.