Cross Country Healthcare Announces Second Quarter 2016 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces Second Quarter 2016 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--August 3, 2016--Cross Country

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

the second quarter ended June 30, 2016.

Revenue was $199.4 million compared to $192.6 million, up 4%

Adjusted EBITDA was $11.1 million, or 5.5% of revenue versus $8.2

million, or 4.2% of revenue in the prior year, up 35% year-over-year

Adjusted EPS was $0.16 compared to $0.10 in the prior year

GAAP net loss was $17.2 million, or $0.54 per diluted share,

including non-cash impairment charges and a loss on derivative

Cash flow from operations was $10.3 million compared to $5.7

million in the prior year

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

"For the second quarter this year, we again exceeded guidance for Gross

Profit and Adjusted EBITDA Margins driven by strong pricing and leverage

from revenue growth," said William J. Grubbs, President and Chief

Executive Officer. "The market remains robust and supports our

initiatives aimed at accelerating revenue growth as we progress

throughout the year."

Second quarter consolidated revenue was $199.4 million, an increase of

4% year-over-year and 1% sequentially. The Company's consolidated gross

profit margin was 27.5%, up 240 basis points year-over-year and up 150

basis points sequentially. Adjusted EBITDA was $11.1 million or 5.5% of

revenue, as compared with $8.2 million or 4.2% of revenue in the prior

year. Net loss attributable to common shareholders was $17.2 million

compared to net income of $2.6 million in the prior year, primarily due

to impairment charges related to Physician Staffing, loss on derivative

liability and loss on extinguishment of debt. Diluted EPS was a net loss

of $0.54 per share compared to net income of $0.08 per share in the

prior year. Adjusted EPS was $0.16 compared to $0.10 in the prior year

and $0.09 in the prior quarter.

For the six months ended June 30, 2016, consolidated revenue was $396.0

million, an increase of 5% year-over-year. Consolidated gross profit

margin was 26.7%, up 150 basis points year-over-year. Adjusted EBITDA

was $19.6 million or 4.9% of revenue, as compared with $14.3 million or

3.8% of revenue in the prior year. Net income attributable to common

shareholders was $1.8 million, or a net loss of $0.26 per diluted share,

compared to net income of $5.5 million, or $0.13 per diluted share, in

the prior year. Adjusted EPS was $0.25 compared to $0.12 in the prior

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $172.0 million and increased

13% year-over-year and 2% sequentially. Contribution income in this

segment was $17.6 million, up from $12.8 million in the prior year. The

year-over-year increase in segment revenue and contribution income was

due to improved pricing and the impact of the Mediscan acquisition.

Average field FTEs increased to 6,884 from 6,607 in the prior year.

Revenue per FTE per day was $275 compared to $254 in the prior year,

reflecting higher average bill rates.

Revenue from Physician Staffing was $23.9 million and decreased 20%

year-over-year and 2% sequentially, entirely due to a decrease in

volume. Contribution income was $2.1 million, down from $2.2 million in

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

to 14,480 from 20,282 while revenue per day filled increased to $1,525

from $1,468 due to improved pricing.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.5 million, a

decrease of 66% year-over-year and an increase of 3% sequentially. The

year-over-year decrease was primarily the result of the divestiture of

the education seminars business in August 2015. Revenue from our

physician and executive search business decreased 20%, compared to the

prior year. Contribution income was $0.1 million, compared to $0.7

million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow provided by operating activities was $10.3 million compared to

$5.7 million in the same period of the prior year. During the second

quarter of 2016, we entered into a new $140 million senior credit

agreement that provides for a $40 million term loan and a revolving

credit facility of up to $100 million (together the "Facilities"). The

Facilities replace both the Company's senior secured asset-based

revolving credit facility and its subordinated term loan. Proceeds from

the $40 million term loan were used primarily to refinance existing

indebtedness under the asset-based revolving credit facility and the

subordinated term loan, including prepayment fees and interest, as well

as fees and expenses incurred.

At June 30, 2016, the Company had $10.2 million in cash and cash

equivalents, $40 million of term loan and $25 million of convertible

notes at par. There were no borrowings drawn on its $100 million

revolving credit facility, and $23.1 million of letters of credit

outstanding, leaving $76.9 million available for borrowings under the

revolving credit facility.

Outlook for Third Quarter and Full Year 2016

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

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Thursday,

August 4, 2016, at 9:00 A.M. Eastern Time to discuss its second quarter

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 August 4th through August 18th at

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

available by telephone by calling 800-395-7443 from anywhere in the U.S.

or 203-369-3271 from non-U.S. locations - Passcode: 2016.