Cross Country Healthcare Announces First Quarter 2016 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces First Quarter 2016 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--May 4, 2016--Cross Country

Healthcare, Inc. (Nasdaq:CCRN) today announced financial results for the

first quarter ended March 31, 2016.

Revenue was $196.6 million compared to $186.0 million, up 6%

Adjusted EBITDA was $8.5 million versus $6.2 million, an increase

of 38% over the prior year

Adjusted EBITDA margin was 4.3%, up from 3.3% in the prior year, a

100 basis point improvement

Adjusted earnings per share (EPS) was $0.09 compared to $0.03 in

Cash flow from operations was $2.6 million compared to $0.3 million

Note: Refer to table and discussion of Non-GAAP financial measures below.

"I am pleased with how 2016 has started. Revenue growth was in line with

expectations and we exceeded our guidance for gross profit margin,

Adjusted EBITDA margin and Adjusted EPS," said William J. Grubbs,

President and Chief Executive Officer. "Overall, we had a solid start to

the year that keeps us on track for our full year guidance as well as

our Adjusted EBITDA targets of 8% by the fourth quarter of 2017 and 10%

by the fourth quarter of 2019."

First quarter consolidated revenue was $196.6 million, an increase of 6%

year-over-year and 2% sequentially. On a pro forma basis, first quarter

revenue was up 3% year-over-year. The Company's consolidated gross

profit margin was 26.0%, up 70 basis points year-over-year and down 10

basis points sequentially. Adjusted EBITDA was $8.5 million or 4.3% of

revenue, as compared with $6.2 million or 3.3% of revenue in the prior

year. Net income attributable to common shareholders was $19.0 million

compared to $2.9 million in the prior year, primarily due to a higher

gain on derivative liability of $14.3 million. Diluted EPS was $0.09 per

share compared to $0.05 per share in the prior year. Adjusted EPS was

$0.09 compared to $0.03 in the prior year and $0.18 in the prior quarter.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing increased 13% year-over-year and

4% sequentially. Contribution income in this segment was $16.8 million,

up from $10.9 million in the prior year. The year-over-year increase in

segment revenue and contribution income was due to improved pricing and

the impact of the Mediscan acquisition. Average field FTEs increased to

6,817 from 6,454 in the prior year. Revenue per FTE per day was $272

compared to $257 in the prior year, reflecting higher average bill rates.

Revenue from Physician Staffing decreased 11% year-over-year and 10%

sequentially, entirely due to a decrease in volume. Contribution income

was $1.6 million, down from $2.1 million in the prior year. Compared to

the prior year, total days filled decreased to 16,842 from 18,644 while

revenue per day filled increased to $1,521 from $1,483 due to improved

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.4 million, a

decrease of 65% year-over-year and 11% sequentially. The year-over-year

decrease was primarily the result of the divestiture of the education

seminars business in August 2015. Revenue from our physician and

executive search business decreased 13%, compared to the prior year.

Contribution loss was $0.1 million, compared to contribution income of

$0.6 million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow provided by operating activities was $2.6 million compared to

$0.3 million in the same period of the prior year. At March 31, 2016,

the Company had $1.9 million in cash and cash equivalents, $6.0 million

drawn on its senior credit facility, and $55.0 million of subordinated

debt at par. The Company had $48.1 million of availability under the

senior credit facility at March 31, 2016.

Outlook for Second Quarter and Full Year 2016

The full year estimate for Adjusted EBITDA margin reflects approximately

$4 - $5 million in planned investments, primarily for upgrades to

existing IT related platforms, which assumes the majority of the IT

investments are operating expenses. Excluding the impact of the IT

investments, our underlying Adjusted EBITDA margin for the full year

would be between 6.0-6.5%.

The estimates above are based on current management expectations and, as

such, are forward-looking and actual results may differ materially.

These ranges do not include the potential impact of any future

divestitures, mergers, acquisitions or other business combinations, any

impairment charges or valuation allowances, any acquisition-related

measurement period adjustments, or any material legal or restructuring

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Thursday, May 5,

2016, at 9:00 A.M. Eastern Time to discuss its first quarter 2016

financial results. This call will be webcast live and can be accessed at

the Company's website at www.crosscountryhealthcare.com or by

dialing 800-857-6331 from anywhere in the U.S. or by dialing

517-623-4781 from non-U.S. locations - Passcode: Cross Country. A replay

of the webcast will be available from May 5th through May 19th at the

Company's website and a replay of the conference call will be available

by telephone by calling 800-678-0740 from anywhere in the U.S. or

402-998-0871 from non-U.S. locations - Passcode: 2016.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Country Healthcare, Inc., headquartered in Boca Raton, Florida, is

a national leader in providing leading-edge healthcare workforce

solutions. Our solutions are geared towards assisting our clients solve

labor-related issues while maintaining high quality outcomes. With more

than 30 years of experience, we are dedicated to placing highly

qualified nurses and physicians as well as allied health, advanced

practice, and case management professionals. We also provide both

retained and contingent placement services for physicians, as well as

retained search services for healthcare executives. We have more than

9,500 active contracts with a broad range of clients in both clinical

and nonclinical settings, including acute care hospitals, physician

practice groups, nursing facilities, both public schools and charter

schools, rehabilitation and sports medicine clinics, government

facilities, and homecare. Through our national staffing teams and

network of more than 70 branch office locations, we are able to place