Cross Country Healthcare Announces Fourth Quarter and Full Year 2016 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces Fourth Quarter and Full Year 2016 Financial

BOCA RATON, Fla.--(BUSINESS WIRE)--March 1, 2017--Cross Country

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

its fourth quarter and full year ended December 31, 2016.

FINANCIAL HIGHLIGHTS:

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

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

"This quarter we grew revenue faster than anticipated due to strong

demand from new and existing customers. In addition, were it not for

higher healthcare and workers' compensation experience related to the

fourth quarter, we would have exceeded our guidance for Adjusted

EBITDA," stated William J. Grubbs, President and Chief Executive

Officer. "As a result of the significant number of business wins over

the past year, we increased our level of investments in staff and

candidate attraction in the fourth quarter and our outlook includes a

continuation of these investments in the first quarter of 2017. By

taking full advantage of these new business wins, we expect to grow

revenue in our Nurse and Allied segment at double digits in 2017 and

continue to improve the revenue trends of our other business segments."

Grubbs added, "Over the past few years, we have significantly improved

Cross Country Healthcare's operations which has given us revenue

momentum that we believe is sustainable given the strong market

conditions, a stable economy, and our improved execution."

Fourth quarter consolidated revenue was $222.5 million, an increase of

15% year-over-year and 4% sequentially. Consolidated gross profit margin

was 25.9%, down 20 basis points year-over-year and down 120 basis points

sequentially as a result of increased healthcare and workers'

compensation costs. Net loss attributable to common shareholders was

$7.9 million compared to $6.1 million in the prior year. The 2016 fourth

quarter included a loss on the derivative liability of $14.2 million

compared to a $9.5 million loss in the prior year. Diluted EPS was a

loss of $0.24 per share compared to a loss of $0.19 per share in the

prior year. Adjusted EBITDA was $12.0 million or 5.4% of revenue, as

compared with $10.9 million or 5.7% of revenue in the prior year.

Adjusted EPS was $0.20 compared to $0.18 in the prior year.

For the year ended December 31, 2016, consolidated revenue was $833.5

million, an increase of 9% year-over-year. Consolidated gross profit

margin was 26.6%, up 90 basis points year-over-year. Net income

attributable to common shareholders was $8.0 million, or $0.15 per

diluted share, compared to $4.4 million or $0.14 per diluted share in

the prior year. Adjusted EBITDA was $44.7 million or 5.4% of revenue, as

compared with $37.6 million or 4.9% of revenue in the prior year.

Adjusted EPS was $0.69 compared to $0.54 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing increased 20% year-over-year and

4% sequentially. Contribution income was $18.1 million, up from $15.4

million in the prior year. The year-over-year increase in revenue and

contribution income resulted predominantly from organic growth and

improved pricing and, to a lesser extent, the impact of the Mediscan

acquisition. Average field FTEs increased to 7,156 from 6,792 in the

prior year. Revenue per FTE per day was $295 compared to $259 in the

prior year, driven primarily by improved pricing.

Revenue from Physician Staffing decreased 9% year-over-year and 1%

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

was $2.3 million, down from $2.7 million in the prior year. Compared to

the prior year, total days filled decreased to 14,521 from 18,131 and

revenue per day filled increased to $1,599 from $1,392 due to improved

pricing and mix of business.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.7 million, a

decrease of 3% year-over-year and an increase of 12% sequentially. The

sequential increase was due to growth in our executive search business.

Contribution income was a loss of $0.3 million, compared to income of

$0.1 million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow used in operating activities for the current quarter was $2.1

million compared to $0.6 million used in the same period of the prior

year. Cash flow provided by operating activities for the full year was

$30.1 million compared to $18.2 million in the prior year. At

December 31, 2016, the Company had $20.6 million in cash and cash

equivalents, $39.5 million of term loan and $25.0 million of convertible

notes at par. There were no borrowings drawn on its $100.0 million

revolving credit facility, and $22.2 million of letters of credit

outstanding, leaving $77.8 million available for borrowings under the

revolving credit facility.

Outlook for First 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,

March 2, 2017, at 9:00 A.M. Eastern Time to discuss its fourth quarter

and full year 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 March 2nd through March 16th at

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

available by telephone by calling 800-391-9854 from anywhere in the U.S.

or 402-220-9828 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