Cross Country Healthcare Announces Fourth Quarter and Full Year 2015 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces Fourth Quarter and Full Year 2015 Financial

BOCA RATON, Fla.--(BUSINESS WIRE)--March 9, 2016--Cross Country

Healthcare, Inc. (NASDAQ:CCRN) today announced financial results in line

with its expectations for the fourth quarter and full year ended

FOURTH QUARTER FINANCIAL HIGHLIGHTS:

Revenue was $193.1 million, up 3% both on a year-over-year and pro

Adjusted EBITDA was $10.9 million or 5.7% of revenue versus $6.2

million or 3.3% of revenue in the prior year

Adjusted earnings per share (EPS) was $0.18 compared to $0.03 in

FULL YEAR FINANCIAL HIGHLIGHTS:

Revenue was $767.4 million, up 24% year-over-year and 5% on a pro

Adjusted EBITDA was $37.6 million or 4.9% of revenue versus $17.2

million or 2.8% of revenue in the prior year

Adjusted EPS was $0.54 compared to $0.09 in the prior year

Cash flow from operations was $18.2 million compared to cash flow

used in operations of $4.1 million

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

"This was a year of significant improvement for Cross Country

Healthcare. After only the second full year executing our turnaround

plan, I am extremely pleased with the progress we are making. We

continue to execute on our strategy as a leader in healthcare staffing

and as a provider of value-added workforce solutions," said William J.

Grubbs, President and Chief Executive Officer. "We reached our fourth

quarter Adjusted EBITDA target of 5% one quarter early and exceeded that

goal for both the third and fourth quarters. Full year Adjusted EBITDA

grew by more than $20 million to 4.9% representing a 210 basis point

improvement. The market remains robust and we expect 2016 to be another

year of providing our shareholders with superior returns."

Fourth quarter consolidated revenue was $193.1 million, an increase of

3% year-over-year and a decrease of 1% sequentially. On a pro forma

basis, fourth quarter revenue was up 3% year-over-year. The Company's

consolidated gross profit margin was 26.1%, up 80 basis points

year-over-year and down 20 basis points sequentially. Adjusted EBITDA

was $10.9 million or 5.7% of revenue, as compared with $6.2 million or

3.3% of revenue in the prior year. Net loss attributable to common

shareholders was $6.1 million, or $0.19 per diluted share, compared to a

net loss of $20.2 million or $0.65 per diluted share in the prior year.

Adjusted EPS was $0.18 compared to $0.03 in the prior year and $0.23 in

For the year ended December 31, 2015, consolidated revenue was $767.4

million, an increase of 24% year-over-year. On a pro forma basis,

revenue was up 5% year-over-year. Consolidated gross profit margin was

25.7%, up 20 basis points from the prior year. Adjusted EBITDA was $37.6

million or 4.9% of revenue, as compared with $17.2 million or 2.8% of

revenue in the prior year. Net income attributable to common

shareholders was $4.4 million, or $0.14 per diluted share, compared to a

net loss of $31.8 million or $1.02 per diluted share in the prior year.

Adjusted EPS was $0.54 compared to $0.09 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing increased 10% year-over-year and

3% sequentially. Contribution income in this segment was $15.1 million,

up from $11.2 million in the prior year. The year-over-year increase in

segment revenue and contribution income resulted from organic growth,

improved margins, and the impact of the Mediscan acquisition. Average

field FTEs increased to 6,792 from 6,340 in the prior year. Revenue per

FTE per day was $259 compared to $253 in the prior year, driven

primarily by improved pricing.

Revenue from Physician Staffing decreased 10% year-over-year and 12%

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

was $2.7 million, up from $2.5 million in the prior year resulting from

improvement in gross margins and lower SG&A costs, partly offset by

volume declines. Compared to the prior year, total days filled decreased

to 18,131 from 19,873 and revenue per day filled decreased to $1,392

from $1,485 due to the mix of business.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.8 million, a

decrease of 64% year-over-year and 49% sequentially as a result of the

divestiture of the education seminars business. Contribution income was

$0.1 million, compared to $0.6 million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow used in operating activities was $0.6 million compared to $1.0

million used in the same period of the prior year. Cash flow provided by

operating activities for the full year was $18.2 million compared to

$4.1 million used in the prior year. At December 31, 2015, the Company

had $2.5 million in cash and cash equivalents, $8.0 million drawn on its

senior credit facility, and $55.0 million of subordinated debt at par.

The Company had $40.1 million of availability under the senior credit

facility at December 31, 2015.

Outlook for First Quarter and Full Year 2016

In addition to providing quarterly guidance for the first quarter, the

Company also is issuing full year 2016 estimates for Revenue and

Adjusted EBITDA margin. The full year estimate for Adjusted EBIITDA

margin reflects approximately $4 - $5 million in planned investments,

primarily for upgrades to existing IT related platforms, with

approximately $1 million expected to be incurred in the first quarter.

The quarterly guidance reflects approximately 80 basis points for costs

associated with the annual payroll tax reset and 50 basis points for the

impact from incremental investments. Excluding the combined impact from

those costs, would imply an underlying Adjusted EBITDA margin of between

5.0 - 5.5% for the quarter, in line with our recent quarterly trends.

Excluding the impact of the IT investments for the full year, our

underlying Adjusted EBITDA margin for the full year would be between

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

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