Cross Country Healthcare Announces Fourth Quarter and Full Year 2018 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces Fourth Quarter and Full Year 2018 Financial

BOCA RATON, Fla.--(BUSINESS WIRE)--February 27, 2019--Cross Country

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

financial results for its fourth quarter and full year ended

SELECTED FINANCIAL INFORMATION:

"I am thrilled to be back with the company I co-founded to see it

through the next phase in its evolution," said Kevin C. Clark, President

and Chief Executive Officer. "2018 was a challenging year on several

fronts, with softer demand in the first half and unexpected higher

costs, but I am looking to the future," he added. "Our primary focus is

to drive operational improvements to return the company to growth and

improved profitability. Achieving this goal will require a laser focus

on productivity and technology across our entire business."

Fourth quarter consolidated revenue was $200.9 million, a decrease of 9%

year-over-year and up slightly sequentially. Consolidated gross profit

margin was 25.2%, down 130 basis points year-over-year and 50 basis

points sequentially. Net loss attributable to common shareholders was

$19.7 million compared to net income of $28.0 million in the prior year

and a net loss of $0.4 million in the prior quarter. Diluted EPS was a

loss of $0.55 per share compared to income of $0.77 per share in the

prior year and a loss of $0.01 per share in the prior quarter. Adjusted

EBITDA was $6.2 million or 3.1% of revenue, as compared with $12.3

million or 5.6% of revenue in the prior year, and $8.1 million or 4.0%

of revenue in the prior quarter. Adjusted EPS was $0.00 in the current

quarter as compared to income of $0.17 in the prior year and $0.02 in

For the year ended December 31, 2018, consolidated revenue was $816.5

million, a decrease of 6% year-over-year, 9% on a pro forma basis.

Consolidated gross profit margin was 25.7%, down 70 basis points

year-over-year. Net loss attributable to common shareholders was $17.0

million, or a loss of $0.48 per diluted share, compared to net income of

$37.5 million, or income of $1.01 per diluted share, in the prior year.

Adjusted EBITDA was $31.4 million or 3.8% of revenue, as compared with

$43.4 million or 5.0% of revenue in the prior year. Adjusted EPS was

$0.12 compared to $0.61 in the prior year.

Fourth quarter and full year results for 2018 and 2017 were impacted by

Physician Staffing pretax noncash impairment charges of $22.4 million

and $14.4 million, as well as noncash income tax benefits of $6.0

million and $36.8 million, respectively. 2018 and 2017 included income

tax benefits related to the impairment charges. 2017 also included the

reversal of substantially all of the Company's valuation allowances on

its deferred tax assets, as well as income tax expense attributable to

the re-measurement of deferred tax assets under the 2017 Tax Cuts and

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $179.5 million, a 7% decrease

year-over-year and an increase of 2% sequentially. Contribution income

was $16.2 million, down from $19.2 million in the prior year, and down

sequentially from $16.5 million in the prior quarter. Average field FTEs

decreased to 7,056 from 7,521 in the prior year and increased from 6,953

in the prior quarter. Revenue per FTE per day was $277 compared to $280

in the prior year and $276 in the prior quarter.

Revenue from Physician Staffing was $18.3 million, a decrease of 19%

year-over-year and 14% sequentially. Contribution income was $0.6

million, down from $1.0 million in the prior year and $1.3 million in

the prior quarter. Total days filled were 11,663 as compared with 14,852

in the prior year and 13,375 in the prior quarter. Revenue per day

filled was $1,565 as compared with $1,519 in the prior year and $1,582

in the prior quarter.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.1 million, a

decrease of 7% year-over-year and 2% sequentially. Segment contribution

loss was $0.1 million for the current quarter compared to a loss of $0.2

million in the prior year, and income of $0.1 million in the prior

Cash Flow and Balance Sheet Highlights

Cash flow used in operating activities for the current quarter was $0.8

million compared to cash provided of $16.8 million in the prior year.

During the fourth quarter, the Company made principal payments of $7.4

million, including an optional prepayment of $5.0 million. Cash flow

provided by operating activities for the full year was $21.0 million

compared to $45.5 million in the prior year.

At December 31, 2018, the Company had $16.0 million in cash and cash

equivalents and a principal balance of $83.9 million on its Term Loan.

There were no amounts drawn on the Company's revolving credit facility

and there were $20.6 million of letters of credit outstanding as of

Outlook for First Quarter 2019

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

first 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,

February 27, 2019, at 5:00 P.M. Eastern Time to discuss its fourth

quarter and full year 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 888-566-1099 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 February 27, 2019 through March

13, 2019 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 nearly 40 years of expertise and insight to assist clients