Cross Country Healthcare Announces First Quarter 2017 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces First Quarter 2017 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--May 3, 2017--Cross Country

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

the first quarter ended March 31, 2017.

FINANCIAL HIGHLIGHTS:

Amounts are in thousands, except percent and per share data.

* Refer to tables and discussion of Non-GAAP financial measures below.

"Revenue from new business wins is ramping slower than forecasted due to

longer implementation cycles. With more than 30 new programs still

scheduled for implementation, representing over $100 million of spend,

we believe these opportunities will drive stronger growth as we get them

up and running," stated William J. Grubbs, Chief Executive Officer. "The

pipeline for new Managed Service Programs remains strong and we expect

to have another record year of new business wins."

First quarter consolidated revenue was $207.6 million, an increase of 6%

year-over-year and a decrease of 7% sequentially. Consolidated gross

profit margin was 25.7%, down 30 basis points year-over-year and down 20

basis points sequentially. Net loss attributable to common shareholders

was $2.0 million compared to net income of $19.0 million in the prior

year. The 2017 first quarter included a loss on early extinguishment of

debt of $5.0 million, and both periods included gains on derivative

liability of $1.6 million for the first quarter of 2017 and $16.4

million for the first quarter of 2016. Diluted EPS was a loss of $0.08

per share compared to income of $0.09 per share in the prior year.

Adjusted EBITDA was $6.5 million or 3.1% of revenue, as compared with

$8.5 million or 4.3% of revenue in the prior year. Adjusted EPS was

$0.05 compared to $0.09 in the prior year and $0.20 in the prior quarter.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $183.1 million, an increase

of 8% year-over-year and a decrease of 6% sequentially. The

year-over-year increase in segment revenue was due to growth in volume

and improved pricing. Contribution income in this segment was $15.6

million, down from $16.8 million in the prior year. Average field FTEs

increased to 7,204 from 6,817 in the prior year. Revenue per FTE per day

was $282 compared to $272 in the prior year, reflecting higher average

Revenue from Physician Staffing decreased 12% year-over-year and 13%

sequentially. The year-over-year decrease was primarily due to a

decrease in volume. Contribution income was $0.8 million, down from $1.6

million in the prior year. Compared to the prior year, total days filled

decreased to 15,036 from 16,842 while revenue per day filled increased

to $1,592 from $1,521 due to improved pricing and mix of business.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services decreased 11%

year-over-year and 18% sequentially. Contribution income was a loss of

$0.4 million, compared to a loss of $0.1 million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow provided by operating activities for the current quarter was

$1.4 million compared to $2.6 million in the same period of the prior

year. At March 31, 2017, the Company had $13.4 million in cash and cash

equivalents and $38.2 million of total debt. During the quarter, the

Company repaid in full its Convertible Notes by issuing 3,175,584 shares

and paying $5.6 million, including $0.6 million for the contractual

interest due through the optional conversion date as of June 30, 2017.

There were no borrowings drawn on its $100.0 million revolving credit

facility, and $22.1 million of letters of credit outstanding, leaving

$77.9 million available for borrowings under the revolving credit

Outlook for Second Quarter 2017

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, changes in debt structure, or any

material legal or restructuring charges.

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Thursday, May 4,

2017, at 9:00 A.M. Eastern Time to discuss its first quarter 2017

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 4th through May 18th at the

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

by telephone by calling 866-505-9259 from anywhere in the U.S. or

203-369-1883 from non-U.S. locations - Passcode: 2017.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Country Healthcare is a national leader in providing innovative

healthcare workforce solutions and staffing services. Our solutions

leverage our nearly 40 years of expertise and insight to assist clients

in solving complex labor-related challenges while maintaining high

quality outcomes. We are dedicated to recruiting and placing highly

qualified healthcare professionals in virtually every specialty and area

of expertise. With more than 8,000 active contracts, our diverse client

base includes both clinical and nonclinical settings, servicing acute

care hospitals, physician practice groups, outpatient and

ambulatory-care centers, 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 74 office locations, we are able to place clinicians on

travel and per diem assignments, local short-term contracts and

permanent positions. We are a market leader in providing flexible

workforce management solutions, which include managed services programs

(MSP), internal resource pool consulting and development, electronic

medical record (EMR) transition staffing, recruitment process

outsourcing, predictive modeling and other outsourcing and consultative

services. In addition, we provide both retained and contingent placement

services for healthcare executives, physicians, and other healthcare