CCRN
Cross Country Healthcare INC
NASDAQ
8-K: Cross Country Healthcare Reports Q4 and Full Year 2024 Results Amidst Pending Merger with Aya Healthcare
Sentiment:
Earnings Release
5 March 2025 4:25 PM
Cross Country Healthcare announced its fourth quarter and full year 2024 financial results, showing revenue declines but highlighting growth in Physician and Homecare Staffing, while awaiting the closing of its merger with Aya Healthcare.
Worse than expected
The company's revenue, net income, and adjusted EBITDA all decreased significantly compared to the prior year.
Summary
- Cross Country Healthcare reported a revenue of $309.94 million for Q4 2024, a 25% decrease year-over-year and a 2% decrease sequentially.
- The company's net loss attributable to common stockholders was $3.8 million for Q4 2024, compared to a net income of $9.0 million in the prior year.
- Adjusted EBITDA for Q4 2024 was $9.3 million, or 3.0% of revenue, compared to $20.6 million, or 5.0% of revenue, in the prior year.
- For the full year 2024, consolidated revenue was $1.344 billion, a 33% decrease year-over-year.
- The net loss attributable to common stockholders for the full year was $14.6 million, compared to a net income of $72.6 million in the prior year.
- Adjusted EBITDA for the full year was $49.1 million, or 3.7% of revenue, compared to $144.4 million, or 7.2% of revenue, in the prior year.
- Physician Staffing revenue increased by 13% year-over-year and 5% sequentially in Q4 2024.
- The company repurchased 0.3 million shares of its common stock for $3.6 million during the fourth quarter.
- As of December 31, 2024, Cross Country Healthcare had $81.6 million in cash and cash equivalents with no debt outstanding.
Sentiment
Score: 4
Explanation: The sentiment is neutral to slightly negative due to the significant revenue and profit declines, although the company highlights some positive aspects and is awaiting a potentially positive merger. The lack of forward guidance adds uncertainty.
Positives
- Physician Staffing revenue increased by 13% year-over-year and 5% sequentially in Q4 2024.
- Homecare Staffing experienced sequential and year-over-year revenue growth.
- Cross Country Education experienced double-digit sequential revenue growth.
- The company secured a three-year contract renewal with its largest managed service program.
- Cross Country Healthcare maintains a strong balance sheet with $81.6 million in cash and no debt.
- The company repurchased 0.3 million shares of its common stock for $3.6 million during the fourth quarter.
Negatives
- Q4 2024 revenue decreased by 25% year-over-year to $309.94 million.
- The company reported a net loss of $3.8 million in Q4 2024, compared to a net income of $9.0 million in Q4 2023.
- Adjusted EBITDA for Q4 2024 decreased to $9.3 million from $20.6 million in the prior year.
- Full year 2024 revenue decreased by 33% to $1.344 billion.
- The company reported a net loss of $14.6 million for the full year 2024, compared to a net income of $72.6 million in 2023.
- Consolidated gross profit margin was 20.0% in Q4 2024, down 190 basis points year-over-year.
Risks
- The pending merger with Aya Healthcare is subject to regulatory approval and other closing conditions.
- The company faces risks related to the diversion of management time on transaction-related issues.
- The announcement of the proposed merger could have adverse effects on the market price of the company's common stock.
- The proposed merger could have an adverse effect on the company's ability to retain customers and key personnel.
- The company is exposed to worldwide economic or political changes that affect the markets it serves.
- Global pandemics, epidemics, or other public health crises could impact the company's business.
- Changes in marketplace conditions, such as alternative modes of healthcare delivery, could affect demand for the company's services.
Future Outlook
Due to the pending transaction with Aya Healthcare, the company will not host an earnings conference call or provide forward-looking guidance.
Management Comments
- Our fourth quarter top line performance was driven by continued strength in our non-travel businesses such as Physician Staffing, Education and Homecare, said John A. Martins, President and Chief Executive Officer of Cross Country Healthcare.
- As we await the closing of the pending transaction with Aya Healthcare, which we currently expect to occur in the second half of the year, we continue on our path of delivering clinical excellence in order to meet our clients needs in this dynamic and highly competitive market.
Industry Context
The healthcare staffing industry is highly competitive and dynamic, with evolving client needs and alternative modes of healthcare delivery. The pending merger with Aya Healthcare suggests a move towards consolidation in the industry to gain market share and improve service offerings.
Comparison to Industry Standards
- Without specific competitor data, it's difficult to benchmark precisely, but a 33% revenue decline year-over-year is significant and warrants further investigation compared to industry averages.
- Companies like AMN Healthcare and Team Health are major players, and comparing Cross Country's performance against their results would provide valuable context.
- The adjusted EBITDA margin of 3.7% for the full year is relatively low, suggesting potential challenges in profitability compared to industry leaders.
Stakeholder Impact
- Shareholders are impacted by the decreased financial performance and the pending merger.
- Employees face uncertainty due to the merger and potential restructuring.
- Customers may experience changes in service offerings and pricing due to the merger.
- Suppliers may be affected by changes in procurement strategies post-merger.
Next Steps
- The company will focus on closing the pending transaction with Aya Healthcare.
- Cross Country Healthcare will continue to deliver clinical excellence to meet clients' needs.
Key Dates
- December 3, 2024: Cross Country Healthcare entered into a merger agreement with Aya Healthcare, Inc.
- December 31, 2024: End of the fourth quarter and full year 2024 financial period.
- March 5, 2025: Cross Country Healthcare announced its fourth quarter and full year 2024 financial results.
Keywords
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.