Cross Country Healthcare Announces First Quarter 2018 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces First Quarter 2018 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--May 2, 2018--Cross Country

Healthcare, Inc. (the "Company") (Nasdaq: CCRN) today announced

financial results for its first quarter ended March 31, 2018.

FINANCIAL HIGHLIGHTS:

* Refer to accompanying tables and discussion of Non-GAAP financial

"We experienced a stronger than expected start to the year with growth

in all three of our segments and good cost controls. I was pleased to

see several businesses with solid performance, including high

single-digit growth in travel allied and double-digit growth in both our

education healthcare staffing and physician and executive search

businesses. Advantage RN had another quarter of strong sequential growth

of nurses on assignment at our Managed Services Programs," said William

J. Grubbs, President and Chief Executive Officer. "This positive start

supports our full year financial goals although we still have some work

to do to return our travel nurse business to run rates we experienced

prior to the fourth quarter of 2017, which we expect to occur in the

second half of 2018," he continued.

First quarter consolidated revenue was $210.3 million, an increase of 1%

year-over-year and a decrease of 4% sequentially. Consolidated gross

profit margin was 25.6%, down 10 basis points year-over-year and 90

basis points sequentially. Net income attributable to common

shareholders was $1.6 million compared to a net loss of $2.0 million in

the prior year, which included a loss on early extinguishment of debt of

$5.0 million and a gain on the derivative liability of $1.6 million.

Diluted EPS was $0.05 per share compared to a loss of $0.08 per share in

the prior year. Adjusted EBITDA was $8.4 million or 4.0% of revenue, as

compared with $6.5 million or 3.1% of revenue in the prior year, and

$12.3 million or 5.6% of revenue in the prior quarter. Adjusted EPS was

$0.06 in the current quarter as compared to $0.05 in the prior year and

$0.17 in the prior quarter.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $185.1 million, an increase

of 1% year-over-year and a decrease of 4% sequentially. Contribution

income in this segment was $16.8 million, up from $15.6 million in the

prior year. Average field FTEs increased to 7,466 from 7,204 in the

prior year. Revenue per FTE per day was $275 compared to $282 in the

Revenue from Physician Staffing was $21.6 million, up less than 1%

year-over-year and a decrease of 4% sequentially. Contribution income

was $1.5 million, up from $0.8 million in the prior year. Total days

filled were 14,250 as compared with 14,052 in the prior year. Revenue

per day filled was $1,513 as compared with $1,527 in the prior year.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.6 million,

an increase of 21% year-over-year and 7% sequentially. Segment

contribution income was $0.3 million for the current quarter compared to

a loss of $0.4 million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow provided by operating activities for the current quarter was

$13.3 million compared to $1.4 million in the prior year. At March 31,

2018, the Company had $32.6 million in cash and cash equivalents and a

$98.8 million term loan, par value, outstanding under the term

loan. There were no borrowings drawn on its $115.0 million revolving

credit facility, and $21.6 million of letters of credit outstanding,

leaving $93.4 million available for borrowings under the revolving

During the first quarter of 2018, the Company repurchased 242,400 shares

of common stock for $2.9 million, at an average market price of $11.88

per share. As of March 31, 2018, the Company has 35.7 million shares

outstanding. The Company may repurchase an additional 700,043 shares

under its current share repurchase program, subject to certain

conditions in its credit agreement.

Outlook for Second Quarter 2018

The guidance below applies only to management's expectations for the

second quarter of 2018. Though the Company does not provide full year

guidance, organic growth for the full year and continued margin

improvements are expected based on continued favorable market conditions

and demand for its services. In addition to the normal operating

leverage from anticipated revenue growth, the Company will be

undertaking actions to further align its cost structure for improved

profitability towards achieving its near-term goal of an 8% Adjusted

The estimates above 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, any

acquisition-related measurement period adjustments, any changes in debt

structure, any future share repurchases, or the initiative to replace

its legacy system supporting its travel nurse staffing business. See

accompanying Non-GAAP financial measures and tables below.

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Thursday, May 3,

2018, at 9:00 A.M. Eastern Time to discuss its first quarter 2018

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 3rd through May 17th at the

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

by telephone by calling 866-443-8011 from anywhere in the U.S. or

203-369-1122 from non-U.S. locations - Passcode: 2018.

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. Our diverse client base includes both clinical and