Cross Country Healthcare Announces First Quarter 2019 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces First Quarter 2019 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--May 1, 2019--Cross Country

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

financial results for its first quarter ended March 31, 2019.

"Following my first few months back with Cross Country, I am pleased

with the progress we are making, and I am seeing momentum across our

teams," said Kevin C. Clark, President and Chief Executive Officer. He

continued, "We continue to see favorable market dynamics and we are

making the necessary changes to our business in order to best position

the Company for success."

First quarter consolidated revenue was $195.2 million, a decrease of 7%

year-over-year and 3% sequentially. Consolidated gross profit margin was

24.7%, down 90 basis points year-over-year and 50 basis points

sequentially. Net loss attributable to common shareholders was $1.8

million compared to net income of $1.6 million in the prior year and a

net loss of $19.7 million in the prior quarter. Diluted EPS was a loss

of $0.05 per share compared to income of $0.05 per share in the prior

year and a loss of $0.55 per share in the prior quarter. Adjusted EBITDA

was $3.6 million or 1.9% of revenue, as compared with $8.4 million or

4.0% of revenue in the prior year, and $6.2 million or 3.1% of revenue

in the prior quarter. Adjusted EPS was $0.02 in the current quarter as

compared to income of $0.06 in the prior year and $0.00 in the prior

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $176.1 million, a decrease of

5% year-over-year and 2% sequentially. Contribution income in this

segment was $14.2 million, down from $16.8 million in the prior year,

and down from $16.2 million in the prior quarter. Average field FTEs

decreased to 7,017 from 7,466 in the prior year and 7,056 in the prior

quarter. Revenue per FTE per day was $279 compared to $275 in the prior

year and $277 in the prior quarter.

Revenue from Physician Staffing was $16.2 million, a decrease of 25%

year-over-year and 11% sequentially. Contribution income was $0.4

million, down from $1.5 million in the prior year, and $0.6 million in

the prior quarter. Total days filled were 10,280 as compared with 14,250

in the prior year and 11,663 in the prior quarter. Revenue per day

filled was $1,572 as compared with $1,513 in the prior year and $1,565

in the prior quarter.

Revenue from Search Services was $2.9 million, a decrease of 19%

year-over-year and 6% sequentially. Segment contribution loss was $0.3

million for the current quarter compared to income of $0.3 million in

the prior year, and a loss of $0.1 million in the prior quarter.

Cash Flow and Balance Sheet Highlights

Cash flow from operations for the quarter was $12.8 million, compared to

$13.3 million in the prior year. During the first quarter, the Company

made an optional principal prepayment of $7.5 million on its term loan.

As of March 31, 2019, the Company had $18.3 million in cash and cash

equivalents and a $76.4 million principal balance on its term loan. As

of March 31, 2019, there were no amounts drawn on the Company's

revolving credit facility and $20.6 million of letters of credit

Outlook for Second Quarter 2019

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

second quarter of 2019.

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

changes in debt structure, or any future share repurchases. See

accompanying Non-GAAP financial measures and tables below.

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Wednesday, May 1,

2019, at 5:00 P.M. Eastern Time to discuss its first quarter 2019

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

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

dialing 800-566-1099 from anywhere in the U.S. or by dialing

773-799-3716 from non-U.S. locations - Passcode: Cross Country. A replay

of the webcast will be available from May 1st through May 15th at the

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

by telephone by calling 800-839-5574 from anywhere in the U.S. or

203-369-3669 from non-U.S. locations - Passcode: 2019.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Country Healthcare is a national leader in providing innovative

healthcare workforce solutions and staffing services. Our solutions

leverage our more than 30 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

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 69 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 service

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

Copies of this and other news releases as well as additional information

about Cross Country Healthcare can be obtained online at www.crosscountryhealthcare.com.

Shareholders and prospective investors can also register to

automatically receive the Company's press releases, SEC filings and

other notices by e-mail.

NON-GAAP FINANCIAL MEASURES

This press release and accompanying financial statement tables reference