Cross Country Healthcare, Inc. (the “Company”) (Nasdaq: CCRN)
today announced financial results for its second quarter ended June
30, 2024.
SELECTED FINANCIAL INFORMATION:
Variance
Variance
Q2 2024 vs
Q2 2024 vs
Dollars are in thousands, except per share
amounts
Q2 2024
Q2 2023
Q1 2024
Revenue
$
339,771
(37
)
%
(10
)
%
Gross profit margin*
20.8
%
(200
)
bps
40
bps
Net (loss) income attributable to common
stockholders
$
(16,050
)
(175
)
%
(696
)
%
Diluted EPS
$
(0.47
)
$
(1.07
)
$
(0.55
)
Adjusted EBITDA*
$
14,178
(68
)
%
(7
)
%
Adjusted EBITDA margin*
4.2
%
(400
)
bps
20
bps
Adjusted EPS*
$
0.10
$
(0.59
)
$
(0.09
)
Cash flows provided by operations
$
82,401
(31
)
%
1,271
%
* Represents amounts that are not
calculated in accordance with U.S. generally accepted accounting
principles (GAAP) and are referred to as non-GAAP measures. Please
refer to the accompanying discussion below of how these non-GAAP
financial measures are calculated and used under “Non-GAAP
Financial Measures” and the tables reconciling these measures to
the closest GAAP measure.
Second Quarter Business Highlights
- Physician Staffing and Homecare Staffing experienced sequential
and year-over-year revenue growth
- $82.4 million of cash flows from operations for Q2 2024,
primarily driven by strong collections
- Days Sales Outstanding down 7 days year-over-year and 18 days
sequentially
- Continued strong balance sheet with $70 million of cash on hand
and no debt as of June 30, 2024
- Repurchased approximately 980,000 shares of common stock for
$14.9 million
“Our second quarter results were in line with expectations,
reflecting our ability to execute in a challenging environment for
core nurse and allied. Coming into the back half of the year, I am
encouraged by a rise in the level of demand for our services and
cautiously optimistic that we are nearing an inflection point in
our ability to grow the number of professionals on assignment,”
said John A. Martins, President and Chief Executive Officer of
Cross Country Healthcare. He continued, “Additionally, we continue
to have a strong pipeline for new business driven by the robustness
of Intellify®, our proprietary client-facing workforce solutions
platform.”
Second quarter consolidated revenue was $339.8 million, a
decrease of 37% year-over-year and 10% sequentially. Consolidated
gross profit margin was 20.8%, down 200 basis points year-over-year
and up 40 basis points sequentially. Net loss attributable to
common stockholders was $16.1 million as compared to net income of
$21.3 million in the prior year and $2.7 million in the prior
quarter. Diluted loss per share (EPS) was $0.47 as compared to
diluted income per share of $0.60 in the prior year and $0.08 in
the prior quarter. Adjusted earnings before interest, taxes,
depreciation, and amortization (EBITDA) was $14.2 million, or 4.2%
of revenue, as compared with $44.4 million, or 8.2% of revenue, in
the prior year, and $15.3 million, or 4.0% of revenue, in the prior
quarter. Adjusted EPS was $0.10, as compared to $0.69 in the prior
year and $0.19 in the prior quarter.
For the six months ended June 30, 2024, consolidated revenue was
$718.9 million, a decrease of 38% year-over-year. Consolidated
gross profit margin was 20.6%, down 200 basis points
year-over-year. Net loss attributable to common stockholders was
$13.4 million, or $0.39 per diluted share, as compared to net
income of $50.8 million, or $1.41 per diluted share, in the prior
year. Adjusted EBITDA was $29.5 million, or 4.1% of revenue, as
compared to $96.6 million, or 8.3% of revenue, in the prior year.
Adjusted EPS was $0.29, as compared to $1.53 in the prior year.
Quarterly Business Segment Highlights
Nurse and Allied Staffing
Revenue was $291.5 million, a decrease of 41% year-over-year and
12% sequentially. Contribution income was $5.8 million, a decrease
from $56.5 million year-over-year and $27.2 million sequentially.
Average field contract personnel on a full-time equivalent (FTE)
basis was 8,415 as compared with 11,385 in the prior year and 9,124
in the prior quarter. Revenue per FTE per day was $377 as compared
to $474 in the prior year and $397 in the prior quarter.
Physician Staffing
Revenue was $48.3 million, an increase of 7% year-over-year and
3% sequentially. Contribution income was $4.0 million, an increase
from $3.5 million year-over-year and $3.1 million sequentially.
Total days filled were 24,252 as compared with 23,826 in the prior
year and 23,785 in the prior quarter. Revenue per day filled was
$1,992 as compared with $1,902 in the prior year and $1,976 in the
prior quarter.
Cash Flow and Balance Sheet Highlights
Net cash provided by operating activities for the three months
ended June 30, 2024 was $82.4 million, as compared to $119.2
million for the three months ended June 30, 2023 and $6.0 million
for the three months ended March 31, 2024. We experienced an 18 day
sequential improvement in days' sales outstanding primarily due to
robust collections, returning to a more historic level of below 60
days. For the six months ended June 30, 2024, net cash provided by
operating activities was $88.4 million as compared to $166.1
million in the prior year.
During the second quarter, the Company repurchased a total of
approximately 980,000 shares of the Company’s common stock for an
aggregate price of $14.9 million, at an average market price of
$15.23 per share. As of June 30, 2024, the Company had 33.4 million
unrestricted shares outstanding and $56.0 million remaining for
share repurchase.
As of June 30, 2024, the Company had $69.6 million in cash and
cash equivalents with no debt outstanding. There were no borrowings
drawn under its revolving senior secured asset-based credit
facility (ABL). As of June 30, 2024, borrowing base availability
under the ABL was $166.7 million, with $152.9 million of
availability net of $13.8 million of letters of credit.
Outlook for Third Quarter 2024
The guidance below applies to management’s expectations for the
third quarter of 2024.
Q3 2024 Range
Year-over-Year
Sequential
Change
Change
Revenue
$305 million - $315 million
(31)% - (29)%
(10)% - (7)%
Adjusted EBITDA*
$10.0 million - $13.0 million
(63)% - (52)%
(29)% - (8)%
Adjusted EPS*
$0.08 - $0.12
$(0.31) - $(0.27)
$(0.02) - $0.02
* Refer to discussion of non-GAAP
financial measures and the reconciliation tables below.
The above estimates are based on current management expectations
and, as such, are forward-looking and actual results may differ
materially. The above ranges do not include the potential impact of
any future divestitures, mergers, acquisitions, or other business
combinations, changes in debt structure, or future significant
share repurchases.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on
Wednesday, July 31, 2024, at 5:00 P.M. Eastern Time to discuss its
second quarter 2024 financial results. This call will be webcast
live and can be accessed at the Company’s website at
ir.crosscountry.com or by dialing 888-566-1290 from anywhere in the
U.S. or by dialing 773-799-3776 from non-U.S. locations - Passcode:
Cross Country. A replay of the webcast will be available from July
31st through August 14th on the Company’s website and a replay of
the conference call will be available by telephone by calling
866-360-8701 from anywhere in the U.S. or 203-369-0179 from
non-U.S. locations - Passcode: 1703.
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, Inc. is a market-leading, tech-enabled
workforce solutions and advisory firm with 38 years of industry
experience and insight. We help clients tackle complex
labor-related challenges and achieve high-quality outcomes, while
reducing complexity and improving visibility through data-driven
insights. Diversity, equality, and inclusion is at the heart of the
organization’s overall corporate social responsibility program, and
closely aligned with our core values to create a better future for
its people, communities, and its stockholders.
Copies of this and other press releases, as well as additional
information about the Company, can be accessed online at
ir.crosscountry.com. Stockholders and prospective investors can
also register to automatically receive the Company’s press
releases, filings with the Securities and Exchange Commission
(SEC), and other notices by e-mail.
NON-GAAP FINANCIAL MEASURES
This press release and the accompanying financial statement
tables reference non-GAAP financial measures, such as gross profit
margin, adjusted EBITDA, and adjusted EPS. Such non-GAAP financial
measures are provided as additional information and should not be
considered substitutes for, or superior to, financial measures
calculated in accordance with GAAP. Such non-GAAP financial
measures are provided for consistency and comparability to prior
year results; furthermore, management believes such non-GAAP
financial measures are useful to investors when evaluating the
Company’s performance, as such non-GAAP financial measures exclude
certain items that management believes are not indicative of the
Company’s future operating performance. Pro forma measures, if
applicable, are adjusted to include the results of our
acquisitions, and exclude the results of divestments, as if the
transactions occurred in the beginning of the periods mentioned.
Such non-GAAP financial measures may differ materially from the
non-GAAP financial measures used by other companies. The financial
statement tables that accompany this press release include a
reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure and a more detailed
discussion of each financial measure; as such, the financial
statement tables should be read in conjunction with the
presentation of these non-GAAP financial measures.
In addition, forward-looking adjusted EBITDA and adjusted EPS
for fiscal 2024 exclude potential charges or gains that may be
recorded during the fiscal year, including among other things, the
potential impact of any future divestitures, mergers, acquisitions,
or other business combinations, changes in debt structure, or
future significant share repurchases. We have not attempted to
provide reconciliations of such forward-looking non-GAAP earnings
guidance to the comparable GAAP measure, as permitted by Item
10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of
these potential charges or gains is inherently uncertain and
difficult to predict and is unavailable without unreasonable
efforts. In addition, the Company believes such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of our financial performance.
FORWARD-LOOKING STATEMENTS
In addition to historical information, this press release
contains statements relating to our future results (including
certain projections and business trends) that are “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and the Private Securities
Litigation Reform Act of 1995, and are subject to the “safe harbor”
created by those sections. Forward-looking statements consist of
statements that are predictive in nature and/or depend upon or
refer to future events. Words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “estimates,” “suggests,” “appears,”
“seeks,” “will,” “could,” and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties,
and other factors that may cause our actual results and performance
to be materially different from any future results or performance
expressed or implied by these forward-looking statements. These
factors include, but are not limited to, the following: the overall
macroeconomic environment, including increased inflation and
interest rates, demand for the healthcare services that we provide,
both nationally and in the regions in which we operate, our ability
to attract and retain qualified nurses, physicians, and other
healthcare personnel, costs and availability of short-term housing
for our travel healthcare professionals, the functioning of our
information systems, the effect of cyber security risks and cyber
incidents on our business, the effect of existing or future
government regulation and federal and state legislative and
enforcement initiatives on our business, including data privacy and
protection laws, social, ethical, and security issues relating to
the use of artificial intelligence, our customers’ ability to pay
us for our services, our ability to successfully implement our
acquisition and development strategies, including our ability to
successfully integrate acquired businesses and realize synergies
from such acquisitions, the effect of liabilities and other claims
asserted against us, the effect of competition in the markets we
serve, our ability to successfully defend the Company, its
subsidiaries, and its officers and directors on the merits of any
lawsuit or determine its potential liability, if any, and other
factors, including, without limitation, the risk factors set forth
in Item 1A. “Risk Factors” in the Company’s Annual Report on Form
10-K for the year ended December 31, 2023, as filed and updated in
our Quarterly Reports on Form 10-Q and other filings with the SEC.
You should consult any further disclosures that the Company makes
on related subjects in its filings with the SEC.
Although we believe that these statements are based upon
reasonable assumptions, we cannot guarantee future results and
readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management’s opinions
only as of the date of this press release. There can be no
assurance that (i) we have correctly measured or identified all of
the factors affecting our business or the extent of these factors’
likely impact, (ii) the available information with respect to these
factors on which such analysis is based is complete or accurate,
(iii) such analysis is correct, or (iv) our strategy, which is
based in part on this analysis, will be successful. Except as may
be required by law, the Company undertakes no obligation to update
or revise forward-looking statements. All references to “the
Company,” “we,” “us,” “our,” or “Cross Country” in this press
release mean Cross Country Healthcare, Inc. and its consolidated
subsidiaries.
Cross Country Healthcare,
Inc.
Consolidated Statements of
Operations
(Unaudited, amounts in
thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
March 31,
June 30,
June 30,
2024
2023
2024
2024
2023
Revenue from services
$
339,771
$
540,695
$
379,174
$
718,945
$
1,163,402
Operating expenses:
Direct operating expenses
268,966
417,556
301,877
570,843
900,840
Selling, general and administrative
expenses
60,258
78,938
63,252
123,510
163,198
Credit loss expense
18,858
3,134
1,290
20,148
8,042
Depreciation and amortization
4,719
4,432
4,642
9,361
9,336
Restructuring costs
2,116
913
938
3,054
1,342
Legal and other losses
3,946
—
3,650
7,596
1,125
Impairment charges
114
533
604
718
533
Total operating expenses
358,977
505,506
376,253
735,230
1,084,416
(Loss) income from operations
(19,206
)
35,189
2,921
(16,285
)
78,986
Other expenses (income):
Interest expense
568
3,149
462
1,030
6,839
Loss on early extinguishment of debt
—
1,723
—
—
1,723
Other (income) expense , net
(212
)
11
(1,230
)
(1,442
)
(1
)
(Loss) income before income taxes
(19,562
)
30,306
3,689
(15,873
)
70,425
Income tax (benefit) expense
(3,512
)
8,961
997
(2,515
)
19,644
Net (loss) income attributable to common
stockholders
$
(16,050
)
$
21,345
$
2,692
$
(13,358
)
$
50,781
Net (loss) income per share attributable
to common stockholders - Basic
$
(0.47
)
$
0.60
$
0.08
$
(0.39
)
$
1.43
Net (loss) income per share attributable
to common stockholders - Diluted
$
(0.47
)
$
0.60
$
0.08
$
(0.39
)
$
1.41
Weighted average common shares
outstanding:
Basic
33,960
35,351
34,216
34,088
35,606
Diluted
33,960
35,524
34,597
34,088
36,041
Cross Country Healthcare,
Inc.
Reconciliation of Non-GAAP
Financial Measures
(Unaudited, amounts in
thousands, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
March 31,
June 30,
June 30,
2024
2023
2024
2024
2023
Adjusted EBITDA:a
Net (loss) income attributable to common
stockholders
$
(16,050
)
$
21,345
$
2,692
$
(13,358
)
$
50,781
Interest expense
568
3,149
462
1,030
6,839
Income tax (benefit) expenseb
(3,512
)
8,961
997
(2,515
)
19,644
Depreciation and amortization
4,719
4,432
4,642
9,361
9,336
Acquisition and integration-related
costs
—
64
—
—
46
Restructuring costsc
2,116
913
938
3,054
1,342
Legal, bankruptcy, and other lossesd
23,319
—
3,650
26,969
1,125
Impairment chargese
114
533
604
718
533
Loss on early extinguishment of debtf
—
1,723
—
—
1,723
Other (income) expense, net
(212
)
11
(1,230
)
(1,442
)
(1
)
Equity compensation
2,259
2,205
1,198
3,457
3,980
System conversion costsg
857
1,104
1,329
2,186
1,233
Adjusted EBITDAa
$
14,178
$
44,440
$
15,282
$
29,460
$
96,581
Adjusted EBITDA margina
4.2
%
8.2
%
4.0
%
4.1
%
8.3
%
Adjusted EPS:h
Numerator:
Net (loss) income attributable to common
stockholders
$
(16,050
)
$
21,345
$
2,692
$
(13,358
)
$
50,781
Non-GAAP adjustments - pretax:
Acquisition and integration-related
costs
—
64
—
—
46
Restructuring costsc
2,116
913
938
3,054
1,342
Legal, bankruptcy, and other lossesd
23,319
—
3,650
26,969
1,125
Impairment chargese
114
533
604
718
533
Other income, net
—
—
(1,115
)
(1,115
)
—
Loss on early extinguishment of debtf
—
1,723
—
—
1,723
System conversion costsg
857
1,104
1,329
2,186
1,233
Tax impact of non-GAAP adjustments
(7,066
)
(1,132
)
(1,405
)
(8,471
)
(1,559
)
Adjusted net income attributable to common
stockholders - non-GAAP
$
3,290
$
24,550
$
6,693
$
9,983
$
55,224
Denominator:
Weighted average common shares - basic,
GAAP
33,960
35,351
34,216
34,088
35,606
Dilutive impact of share-based
payments
42
173
381
211
435
Adjusted weighted average common shares -
diluted, non-GAAP
34,002
35,524
34,597
34,299
36,041
Reconciliation:
Diluted EPS, GAAP
$
(0.47
)
$
0.60
$
0.08
$
(0.39
)
$
1.41
Non-GAAP adjustments - pretax:
Restructuring costsc
0.06
0.03
0.02
0.08
0.04
Legal, bankruptcy, and other lossesd
0.69
—
0.10
0.79
0.03
Impairment chargese
—
0.01
0.02
0.02
0.01
Other income, net
—
—
(0.03
)
(0.03
)
—
Loss on early extinguishment of debtf
—
0.05
—
—
0.05
System conversion costsg
0.03
0.03
0.04
0.07
0.03
Tax impact of non-GAAP adjustments
(0.21
)
(0.03
)
(0.04
)
(0.25
)
(0.04
)
Adjusted EPS, non-GAAPh
$
0.10
$
0.69
$
0.19
$
0.29
$
1.53
Cross Country Healthcare,
Inc.
Consolidated Balance
Sheets
(Unaudited, amounts in
thousands)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
69,601
$
17,094
Accounts receivable, net
242,333
372,352
Income taxes receivable
8,967
6,898
Prepaid expenses
6,248
7,681
Insurance recovery receivable
8,796
9,097
Other current assets
1,813
2,031
Total current assets
337,758
415,153
Property and equipment, net
29,033
27,339
Operating lease right-of-use assets
2,635
2,599
Goodwill
135,430
135,430
Other intangible assets, net
49,016
54,468
Deferred tax assets
10,064
5,954
Insurance recovery receivable
23,332
25,714
Cloud computing
8,916
5,987
Other assets
6,699
6,673
Total assets
$
602,883
$
679,317
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable and accrued expenses
$
55,682
$
85,333
Accrued compensation and benefits
46,609
52,297
Operating lease liabilities
2,085
2,604
Earnout liability
4,100
6,794
Other current liabilities
1,639
1,559
Total current liabilities
110,115
148,587
Operating lease liabilities
2,652
2,663
Accrued claims
35,614
34,853
Earnout liability
—
5,000
Uncertain tax positions
11,642
10,603
Other liabilities
3,798
4,218
Total liabilities
163,821
205,924
Commitments and contingencies
Stockholders’ equity:
Common stock
3
4
Additional paid-in capital
215,449
236,417
Accumulated other comprehensive loss
(1,389
)
(1,385
)
Retained earnings
224,999
238,357
Total stockholders’ equity
439,062
473,393
Total liabilities and stockholders’
equity
$
602,883
$
679,317
Cross Country Healthcare,
Inc.
Segment Datai
(Unaudited, amounts in
thousands)
Three Months Ended
Year-over-Year
Sequential
June 30,
% of
June 30,
% of
March 31,
% of
% change
% change
2024
Total
2023
Total
2024
Total
Fav (Unfav)
Fav (Unfav)
Revenue from services:
Nurse and Allied Staffing
$
291,451
86
%
$
495,376
)
92
%
$
332,186
)
88
%
(41
)%
(12
)%
Physician Staffing
48,320
14
%
45,319
8
%
46,988
12
%
7
%
3
%
$
339,771
100
%
$
540,695
100
%
$
379,174
100
%
(37
)%
(10
)%
Contribution income:j
Nurse and Allied Staffing
$
5,820
$
56,481
$
27,183
(90
)%
(79
)%
Physician Staffing
4,033
3,541
3,138
14
%
29
%
9,853
60,022
30,321
(84
)%
(68
)%
Corporate overheadk
18,161
18,891
17,566
4
%
(3
)%
Depreciation and amortization
4,719
4,432
4,642
(6
)%
(2
)%
Restructuring costsc
2,116
913
938
(132
)%
(126
)%
Legal and other lossesl
3,946
—
3,650
(100
)%
(8
)%
Impairment chargese
114
533
604
79
%
81
%
Other costs
3
64
—
95
%
(100
)%
(Loss) income from operations
$
(19,206
)
$
35,189
$
2,921
(155
)%
(758
)%
Six Months Ended
Year-over-Year
June 30,
% of
June 30,
% of
% change
2024
Total
2023
Total
Fav (Unfav)
Revenue from services:
Nurse and Allied Staffing
$
623,637
87
%
$
1,077,678
93
%
(42
)%
Physician Staffing
95,308
13
%
85,724
7
%
11
%
$
718,945
100
%
$
1,163,402
100
%
(38
)%
Contribution income:j
Nurse and Allied Staffing
$
33,003
$
123,650
(73
)%
Physician Staffing
7,171
5,265
36
%
40,174
128,915
(69
)%
Corporate overheadk
35,727
37,547
5
%
Depreciation and amortization
9,361
9,336
—
%
Restructuring costsc
3,054
1,342
(128
)%
Legal and other lossesl
7,596
1,125
(575
)%
Impairment chargese
718
533
(35
)%
Other costs
3
46
93
%
(Loss) income from operations
$
(16,285
)
$
78,986
(121
)%
Other costs include acquisition and
integration-related costs.
Cross Country Healthcare,
Inc.
Summary Condensed Consolidated
Statements of Cash Flows
(Unaudited, amounts in
thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
March 31,
June 30,
June 30,
2024
2023
2024
2024
2023
Net cash provided by operating
activities
$
82,401
$
119,248
$
6,011
$
88,412
$
166,113
Net cash used in investing activities
(2,849
)
(3,996
)
(2,210
)
(5,059
)
(7,492
)
Net cash used in financing activities
(15,193
)
(114,871
)
(15,653
)
(30,846
)
(161,552
)
Effect of exchange rate changes on
cash
—
1
—
—
—
Change in cash and cash equivalents
64,359
382
(11,852
)
52,507
(2,931
)
Cash and cash equivalents at beginning of
period
5,242
291
17,094
17,094
3,604
Cash and cash equivalents at end of
period
$
69,601
673
$
5,242
$
69,601
$
673
Cross Country Healthcare,
Inc.
Other Financial Data
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
March 31,
June 30,
June 30,
2024
2023
2024
2024
2023
Revenue from services
$
339,771
$
540,695
$
379,174
$
718,945
$
1,163,402
Less: Direct operating expenses
268,966
417,556
301,877
570,843
900,840
Gross profit
$
70,805
$
123,139
$
77,297
$
148,102
$
262,562
Consolidated gross profit marginm
20.8
%
22.8
%
20.4
%
20.6
%
22.6
%
Nurse and Allied Staffing statistical
data:
FTEsn
8,415
11,385
9,124
8,770
11,952
Average Nurse and Allied Staffing revenue
per FTE per dayo
$
377
$
474
$
397
$
388
$
494
Physician Staffing statistical data:
Days filledp
24,252
23,826
23,785
48,037
45,923
Revenue per day filledq
$
1,992
$
1,902
$
1,976
$
1,984
$
1,867
(a)
Adjusted EBITDA, a non-GAAP financial
measure, is defined as net income (loss) attributable to common
stockholders before interest expense, income tax expense (benefit),
depreciation and amortization, acquisition and integration-related
(benefits) costs, restructuring (benefits) costs, legal and other
losses, customer bankruptcy loss, impairment charges, gain or loss
on derivative, loss on early extinguishment of debt, gain or loss
on disposal of fixed assets, gain or loss on lease termination,
gain or loss on sale of business, other expense (income), net,
equity compensation, and system conversion costs. Adjusted EBITDA
is not and should not be considered a measure of financial
performance under GAAP. Management presents Adjusted EBITDA because
it believes that Adjusted EBITDA is a useful supplement to net
income (loss) attributable to common stockholders as an indicator
of operating performance. Management uses Adjusted EBITDA for
planning purposes and as one performance measure in its incentive
programs for certain members of its management team. Adjusted
EBITDA, as defined, closely matches the operating measure as
defined by the Company's credit facilities. Adjusted EBITDA Margin
is calculated by dividing Adjusted EBITDA by the Company's
consolidated revenue.
(b)
The decrease in income tax expense for the
three and six months ended June 30, 2024 related to a decrease in
book income primarily driven by credit loss expense.
(c)
Restructuring costs were primarily
comprised of employee termination costs, lease-related exit costs,
and reorganization costs as part of planned cost savings
initiatives.
(d)
Includes legal costs and other settlement
charges as presented on the consolidated statements of operations,
losses pertaining to matters outside the normal course of
operations, and $19.4 million of credit loss expense driven by a
bankruptcy filing by a single large customer for the three and six
months ending June 30, 2024. There is no significant impact on
operations from this client as the majority of the business had
been wound down in the prior year.
(e)
Impairment charges for the six months
ended June 30, 2024 were related to right-of-use assets and related
property in connection with vacated leases during 2024. Impairment
charges for the six months ended June 30, 2023 related to the
write-off of an abandoned IT project.
(f)
Loss on early extinguishment of debt for
the three and six months ended June 30, 2023 consisted of the
write-off of debt issuance costs related to the payoff and
termination of the term loan on June 30, 3023.
(g)
System conversion costs include enterprise
resource planning system costs related to the upgrading and
integrating of our middle and back-office platforms, with certain
development costs capitalized and amortized in accordance with the
Company’s policies, and applicant tracking system costs related to
the Company’s project to replace its legacy system supporting its
travel nurse staffing business.
(h)
Adjusted EPS, a non-GAAP financial
measure, is defined as net income (loss) attributable to common
stockholders per diluted share before the diluted EPS impact of
acquisition and integration-related (benefits) costs, restructuring
(benefits) costs, legal and other losses, customer bankruptcy loss,
impairment charges, gain or loss on derivative, loss on early
extinguishment of debt, gain or loss on sale of business, system
conversion costs, and nonrecurring income tax adjustments. Adjusted
EPS is not and should not be considered a measure of financial
performance under GAAP. Management presents Adjusted EPS because it
believes that Adjusted EPS is a useful supplement to its reported
EPS as an indicator of operating performance. Management believes
Adjusted EPS provides a more useful comparison of the Company’s
underlying business performance from period to period and is more
representative of the future earnings capacity of the Company than
EPS. Quarterly non-GAAP adjustment may vary due to rounding.
(i)
Segment data is provided in accordance
with the Segment Reporting Topic of the Financial Accounting
Standards Board Accounting Standards Codification.
(j)
Contribution income is defined as income
(loss) from operations before depreciation and amortization,
acquisition and integration-related (benefits) costs, restructuring
(benefits) costs, legal and other losses, impairment charges, and
corporate overhead. Contribution income is a financial measure used
by management when assessing segment performance.
(k)
Corporate overhead includes unallocated
executive leadership and other centralized corporate functional
support costs such as finance, IT, legal, human resources, and
marketing, as well as public company expenses and Company-wide
projects (initiatives).
(l)
Legal and other losses includes legal
costs and other settlement charges as presented on the consolidated
statements of operations and losses pertaining to matters outside
the normal course of operations.
(m)
Gross profit is defined as revenue from
services less direct operating expenses. The Company’s gross profit
excludes allocated depreciation and amortization expense. Gross
profit margin is calculated by dividing gross profit by revenue
from services.
(n)
FTEs represent the average number of Nurse
and Allied Staffing contract personnel on a full-time equivalent
basis.
(o)
Average revenue per FTE per day is
calculated by dividing Nurse and Allied Staffing revenue, excluding
permanent placement, per FTE by the number of days worked in the
respective periods.
(p)
Days filled is calculated by dividing the
total hours invoiced during the period, including an estimate for
the impact of accrued revenue, by 8 hours.
(q)
Revenue per day filled is calculated by
dividing revenue as reported by days filled for the period
presented.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730815399/en/
Cross Country Healthcare, Inc. William J. Burns, Executive Vice
President & Chief Financial Officer 561-237-2555
wburns@crosscountry.com
Cross Country Health (NASDAQ:CCRN)
過去 株価チャート
から 7 2024 まで 8 2024
Cross Country Health (NASDAQ:CCRN)
過去 株価チャート
から 8 2023 まで 8 2024
