Cross Country Healthcare, Inc. (the "Company") (Nasdaq: CCRN)
today announced financial results for its first quarter ended March
31, 2023.
SELECTED FINANCIAL INFORMATION:
Variance
Variance
Q1 2023 vs
Q1 2023 vs
Dollars are in thousands, except per share
amounts
Q1 2023
Q1 2022
Q4 2022
Revenue
$
622,707
(21
)
%
(1
)
%
Gross profit margin*
22.4
%
20
bps
30
bps
Net income attributable to common
stockholders
$
29,436
(53
)
%
(24
)
%
Diluted EPS
$
0.81
$
(0.82
)
$
(0.24
)
Adjusted EBITDA*
$
52,141
(46
)
%
(9
)
%
Adjusted EBITDA margin*
8.4
%
(390
)
bps
(70
)
bps
Adjusted EPS*
$
0.84
$
(0.86
)
$
(0.25
)
Cash flows provided by operations
$
46,865
261
%
985
%
* Refer to accompanying tables and
discussion of non-GAAP (Generally Accepted Accounting Principles)
financial measures below.
First Quarter Business Highlights
- Revenue, Adjusted EBITDA, and Adjusted EPS exceeded guidance
ranges
- Highest revenue quarter in Company history for education and
home care
- Physician Staffing revenue growth of 75% (19% organic)
year-over-year
- First Intellify vendor-neutral client contract signed
- Launch of Intellify's per diem and internal resource pool
modules
- Repurchased an additional 1.2 million shares of common stock
for $31.7 million
- Replenished our stock repurchase program back to $100 million
in the second quarter of 2023
“I am pleased that we once again exceeded our expectations for
revenue and profitability, reflecting continued strong execution
across our business,” said John A. Martins, President and Chief
Executive Officer of Cross Country Healthcare. He continued, “The
deployment of Intellify as our proprietary vendor management system
is well underway across our portfolio of managed service programs
and I am thrilled to share we have signed our first vendor neutral
client. Intellify’s newest module for internal resource pools will
empower clients to better manage their core and contingent staff
needs to help drive cost savings.”
First quarter consolidated revenue was $622.7 million, a
decrease of 21% year-over-year and 1% sequentially. Consolidated
gross profit margin was 22.4%, up 20 basis points year-over-year
and 30 basis points sequentially. Net income attributable to common
stockholders was $29.4 million compared to $62.0 million in the
prior year and $38.8 million in the prior quarter. Diluted earnings
per share (EPS) was $0.81 compared to $1.63 in the prior year and
$1.05 in the prior quarter. Adjusted earnings before interest,
taxes, depreciation, and amortization (EBITDA) was $52.1 million or
8.4% of revenue, as compared with $97.4 million or 12.3% of revenue
in the prior year, and $57.0 million or 9.1% of revenue in the
prior quarter. Adjusted EPS was $0.84 compared to $1.70 in the
prior year and $1.09 in the prior quarter.
Quarterly Business Segment Highlights
Nurse and Allied Staffing
Revenue was $582.3 million, a decrease of 24% year-over-year and
1% sequentially. Contribution income was $67.2 million, a decrease
from $110.1 million year-over-year and $69.9 million sequentially.
Average field contract personnel on a full-time equivalent (FTE)
basis were 12,518 as compared with 13,454 in the prior year and
12,447 in the prior quarter. Revenue per FTE per day was $513
compared to $628 in the prior year and $510 in the prior quarter.
The decrease in revenue and contribution income year-over-year was
greatly impacted by industry tailwinds associated with the COVID-19
pandemic. The decrease in the average number of FTEs, as compared
to the prior year, was primarily due to volume decline in travel
nurse and local. Average bill rates were down year-over-year in the
low double digits.
Physician Staffing
Revenue was $40.4 million, an increase of 75% year-over-year and
9% sequentially. Contribution income was $1.7 million, a decrease
from $1.8 million year-over-year and flat sequentially. Total days
filled were 22,097 as compared with 13,068 in the prior year and
21,335 in the prior quarter. Revenue per day filled was $1,829 as
compared with $1,772 in the prior year and $1,740 in the prior
quarter. The year-over-year increase in revenue was driven by an
increase in volume in several specialties. The year-over-year
decrease in contribution income was driven by higher direct
costs.
Cash Flow and Balance Sheet Highlights
Net cash provided by operating activities increased $75.9
million to $46.9 million for the three months ended March 31, 2023,
as compared to $29.0 million used in operating activities for the
three months ended March 31, 2022, and increased $42.6 million as
compared to $4.3 million for the three months ended December 31,
2022, due to strong profitability as well as a slight sequential
improvement in days' sales outstanding.
During the first quarter, the Company repurchased and retired a
total of 1.2 million shares of the Company's common stock for an
aggregate price of $31.7 million, at an average market price of
$25.94 per share. As of March 31, 2023, the Company had 35.5
million unrestricted shares outstanding and $44.5 million remaining
for share repurchases. During the second quarter of 2023, the
Company's Board of Directors authorized the replenishment of the
amount remaining for share repurchases back to $100 million.
At March 31, 2023, the Company had $0.3 million in cash and cash
equivalents and $73.9 million principal balance on its term loan,
with $66.4 million of borrowings drawn under its revolving senior
secured asset-based credit facility (ABL), and $18.2 million of
letters of credit outstanding. As of March 31, 2023, borrowing base
availability under the ABL was $300.0 million, with $215.4 million
of excess availability.
Outlook for Second Quarter 2023
The guidance below applies to management’s expectations for the
second quarter of 2023.
Q2 2023 Range
Year-over-Year
Sequential
Change
Change
Revenue
$530 million - $540 million
(30)% - (28)%
(15)% - (13)%
Adjusted EBITDA*
$40.0 million - $45.0 million
(52)% - (46)%
(23)% - (14)%
Adjusted EPS*
$0.55 - $0.65
$(0.85) - $(0.75)
$(0.29) - $(0.19)
* Refer to discussion of non-GAAP
financial measures 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. The Company has updated its 2023 annual minimum
guidance to at least $2.1 billion in revenue and in excess of $170
million in Adjusted EBITDA.
See accompanying non-GAAP financial measures and tables
below.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on
Wednesday, May 3, 2023, at 5:00 P.M. Eastern Time to discuss its
first quarter 2023 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 May
3rd through May 17th on the Company’s website and a replay of the
conference call will be available by telephone by calling
800-839-1334 from anywhere in the U.S. or 203-369-3831 from
non-U.S. locations - Passcode: 3522.
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, Inc. is a leading tech-enabled
workforce solutions and advisory firm with 37 years of industry
experience and insight. We solve complex labor-related challenges
for customers while providing high-quality outcomes and exceptional
patient care. As a multi-year Best of Staffing® award winner, we
are committed to an exceptionally high level of service to our
clients and our homecare, education, and clinical and non-clinical
healthcare professionals. Our locum tenens line of business, Cross
Country Locums, has been certified by the National Committee for
Quality Assurance (NCQA), the leader in healthcare accreditation,
since 2001. We are the first publicly traded staffing firm to
obtain The Joint Commission Certification, which we still hold with
a Letter of Distinction. Cross Country Healthcare is rated as the
top staffing and recruiting employer for women by InHerSights, and
Certified™ by Great Place to Work®. For three consecutive years, we
have received the Top Workplaces USA award from Energage and have
also been recognized with the Top Workplaces Award for Diversity,
Equity & Inclusion Practices and the Top Workplaces Awards for
Innovation and Leadership. We have recently been awarded the Women
Executive Leadership Elevate Award, recognizing gender diversity in
our Boardroom. We have a history of investing in diversity,
equality, and inclusion as a key component of the organization’s
overall corporate social responsibility program, closely aligned
with its 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 United States generally accepted
accounting principles (GAAP). Such non-GAAP financial measures are
provided for consistency and comparability to prior year results;
furthermore, management believes they are useful to investors when
evaluating the Company's performance as they 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 2023 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 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, 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, 2022, as filed and updated in
our Quarterly Reports on Form 10-Q and other filings with the SEC.
You should consult any further disclosures 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
March 31,
March 31,
December 31,
2023
2022
2022
Revenue from services
$
622,707
$
788,732
$
628,218
Operating expenses:
Direct operating expenses
483,284
613,938
489,276
Selling, general and administrative
expenses
84,260
76,853
81,367
Bad debt expense
4,908
2,369
2,947
Depreciation and amortization
4,904
2,719
3,162
Restructuring costs
429
480
2
Legal settlement charges
1,125
—
—
Impairment charges
—
1,741
—
Total operating expenses
578,910
698,100
576,754
Income from operations
43,797
90,632
51,464
Other expenses (income):
Interest expense
3,690
3,521
3,515
Loss on early extinguishment of debt
—
—
1,816
Other income, net
(12
)
(8
)
(217
)
Income before income taxes
40,119
87,119
46,350
Income tax expense
10,683
25,136
7,559
Net income attributable to common
stockholders
$
29,436
$
61,983
$
38,791
Net income per share attributable to
common stockholders - Basic
$
0.82
$
1.67
$
1.06
Net income per share attributable to
common stockholders - Diluted
$
0.81
$
1.63
$
1.05
Weighted average common shares
outstanding:
Basic
35,864
37,028
36,455
Diluted
36,560
37,973
36,926
Cross Country Healthcare,
Inc.
Reconciliation of Non-GAAP
Financial Measures
(Unaudited, amounts in
thousands, except per share data)
Three Months Ended
March 31,
March 31,
December 31,
2023
2022
2022
Adjusted EBITDA:a
Net income attributable to common
stockholders
$
29,436
$
61,983
$
38,791
Interest expense
3,690
3,521
3,515
Income tax expense
10,683
25,136
7,559
Depreciation and amortization
4,904
2,719
3,162
Acquisition and integration-related
(benefits) costsb
(18
)
40
196
Restructuring costsc
429
480
2
Legal settlements and feesd
1.125
—
—
Impairment chargese
—
1,741
—
Loss on disposal of fixed assets
—
19
19
Loss on early extinguishment of debtf
—
—
1,816
Loss (gain) on lease terminationg
8
(21
)
(231
)
Other income, net
(20
)
(6
)
(4
)
Equity compensation
1,775
1,601
2,187
System conversion costsh
129
195
14
Adjusted EBITDAa
$
52.141
$
97.408
$
57,026
Adjusted EBITDA margina
8.4
%
12.3
%
9.1
%
Adjusted EPS:i
Numerator:
Net income attributable to common
stockholders
$
29,436
$
61,983
$
38,791
Non-GAAP adjustments - pretax:
Acquisition and integration-related
(benefits) costsb
(18
)
40
196
Restructuring costsc
429
480
2
Legal settlements and feesd
1,125
—
—
Impairment chargese
—
1,741
—
Loss on early extinguishment of debtf
—
—
1,816
System conversion costsh
129
195
14
Tax impact of non-GAAP adjustments
(427
)
184
(519
)
Adjusted net income attributable to common
stockholders - non-GAAP
$
30,674
$
64,623
$
40,300
Denominator:
Weighted average common shares - basic,
GAAP
35,864
37,028
36,455
Dilutive impact of share-based
payments
696
945
471
Adjusted weighted average common shares -
diluted, non-GAAP
36,560
37,973
36,926
Reconciliation:
Diluted EPS, GAAP
$
0.81
$
1.63
$
1.05
Non-GAAP adjustments - pretax:
Acquisition and integration-related
(benefits) costsb
—
—
0.01
Restructuring costsc
0.01
0.01
—
Legal settlements and feesd
0.03
—
—
Impairment chargese
—
0.05
—
Loss on early extinguishment of debtf
—
—
0.05
System conversion costsh
—
0.01
—
Tax impact of non-GAAP adjustments
(0.01
)
—
(0.02
)
Adjusted EPS, non-GAAPi
$
0.84
$
1.70
$
1.09
Cross Country Healthcare,
Inc.
Consolidated Balance
Sheets
(Unaudited, amounts in
thousands)
March 31,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
291
$
3,604
Accounts receivable, net
627,076
641,611
Income taxes receivable
1,783
10,915
Prepaid expenses
10,937
11,067
Insurance recovery receivable
7,266
7,434
Other current assets
1,259
1,042
Total current assets
648,612
675,673
Property and equipment, net
23,082
19,662
Operating lease right-of-use assets
2,506
3,254
Goodwill
141,520
163,268
Other intangible assets, net
63,086
44,723
Non-current deferred tax assets
7,708
7,092
Non-current insurance recovery
receivable
22,780
23,058
Other non-current assets
11,247
11,109
Total assets
$
920,541
$
947,839
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued expenses
$
176,881
$
185,507
Accrued compensation and benefits
69,684
72,605
Operating lease liabilities - current
3,584
4,132
Current portion of earnout liability
12,500
7,500
Other current liabilities
2,259
1,896
Total current liabilities
264,908
271,640
Non-current debt, less current portion
138,443
148,735
Operating lease liabilities -
non-current
3,845
4,880
Non-current accrued claims
35,914
35,881
Non-current earnout liability
13,000
18,000
Uncertain tax positions - non-current
8,427
7,646
Other non-current liabilities
4,074
3,838
Total liabilities
468,611
490,620
Commitments and contingencies
Stockholders' equity:
Common stock
4
4
Additional paid-in capital
258,144
292,876
Accumulated other comprehensive loss
(1,380
)
(1,387
)
Retained earnings
195,162
165,726
Total stockholders' equity
451,930
457,219
Total liabilities and stockholders'
equity
$
920,541
$
947,839
Cross Country Healthcare,
Inc.
Segment Dataj
(Unaudited, amounts in
thousands)
Three Months Ended
Year-over-Year
Sequential
March 31,
% of
March 31,
% of
December 31,
% of
% change
% change
2023
Total
2022
Total
2022
Total
Fav (Unfav)
Fav (Unfav)
Revenue from services:
Nurse and Allied Staffing
$
582,302
94
%
$
765,580
97
%
$
591,090
94
%
(24
)%
(1
)%
Physician Staffing
40,405
6
%
23,152
3
%
37,128
6
%
75
%
9
%
$
622,707
100
%
$
788,732
100
%
$
628,218
100
%
(21
)%
(1
)%
Contribution income:k
Nurse and Allied Staffing
$
67,169
$
110,101
$
69,941
(39
)%
(4
)%
Physician Staffing
1,724
1,765
1,686
(2
)%
2
%
68,893
111,866
71,627
(38
)%
(4
)%
Corporate overheadl
18,656
16,254
16,803
(15
)%
(11
)%
Depreciation and amortization
4,904
2,719
3,162
(80
)%
(55
)%
Restructuring costsc
429
480
2
11
%
NM
Legal settlement chargesd
1,125
—
—
(100
)%
(100
)%
Impairment chargese
—
1,741
—
100
%
—
%
Other costs
(18
)
40
196
145
%
109
%
Income from operations
$
43,797
$
90,632
$
51,464
(52
)%
(15
)%
Other costs include acquisition and
integration-related (benefits) costs.
NM-Not meaningful.
Cross Country Healthcare,
Inc.
Summary Condensed Consolidated
Statements of Cash Flows
(Unaudited, amounts in
thousands)
Three Months Ended
March 31,
March 31,
December 31,
2023
2022
2022
Net cash provided by (used in) operating
activities
$
46,865
$
(29,038
)
$
4,320
Net cash used in investing activities
(3,496
)
(2,096
)
(37,111
)
Net cash (used in) provided by financing
activities
(46,681
)
31,308
6,075
Effect of exchange rate changes on
cash
(1
)
(2
)
—
Change in cash and cash equivalents
(3,313
)
172
(26,716
)
Cash and cash equivalents at beginning of
period
3,604
1,036
30,320
Cash and cash equivalents at end of
period
$
291
$
1,208
$
3,604
Cross Country Healthcare,
Inc.
Other Financial Data
(Unaudited)
Three Months Ended
March 31,
March 31,
December 31,
2023
2022
2022
Revenue from services
$
622,707
$
788,732
$
628,218
Less: Direct operating expenses
483,284
613,938
489,276
Gross profit
$
139,423
$
174,794
$
138,942
Consolidated gross profit marginm
22.4
%
22.2
%
22.1
%
Nurse and Allied
Staffing statistical data:
FTEsn
12,518
13,454
12,447
Average Nurse and Allied Staffing revenue
per FTE per dayo
$
513
$
628
$
510
Physician Staffing
statistical data:
Days filledp
22,097
13,068
21,335
Revenue per day filledq
$
1,829
$
1,772
$
1,740
(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 settlements and fees, 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, enterprise resource planning (ERP) system
costs, and applicant tracking system 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
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)
Acquisition and
integration-related (benefits) costs included costs for legal and
advisory fees for the Mint Medical Physician Staffing, LP and Lotus
Medical Staffing LLC acquisition that closed in October 2022 and
the HireUp Leadership Inc. acquisition that closed in December
2022.
(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)
Legal settlements and fees
included legal settlement charges as presented on the consolidated
statements of operations, as well as legal fees pertaining to
non-operational legal matters outside the normal course of
operations, which are included in selling, general and
administrative expenses. For the three months ended March 31, 2023,
the Company incurred $1.1 million, including legal fees, to settle
a wage and hour class action lawsuit.
(e)
Impairment charges for the three
months ended March 31, 2022 were comprised of $1.7 million related
to right-of-use assets and related property in connection with
vacated leases.
(f)
Loss on early extinguishment of
debt for the three months ended December 31, 2022 consisted of a
prepayment premium and the write-off of debt issuance costs related
to the optional prepayment on our term loan made in the fourth
quarter of 2022.
(g)
The gain on lease termination for
the three months ended December 31, 2022 was primarily a result of
the early termination of the lease for one of the Company's
corporate offices, recognized in 2022.
(h)
System conversion costs include
ERP 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.
(i)
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 settlements and fees,
impairment charges, gain or loss on derivative, loss on early
extinguishment of debt, gain or loss on sale of business, ERP
system costs, applicant tracking system 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 it 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. Quarterly non-GAAP adjustment may
vary due to rounding.
(j)
Segment data is provided in
accordance with the Segment Reporting Topic of the Financial
Accounting Standards Board Accounting Standards Codification.
(k)
Contribution income is defined as
income (loss) from operations before depreciation and amortization,
acquisition and integration-related (benefits) costs, restructuring
(benefits) costs, legal settlement charges, impairment charges, and
corporate overhead. Contribution income is a financial measure used
by management when assessing segment performance.
(l)
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
corporate-wide projects (initiatives).
(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/20230502005804/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)
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