CROSS COUNTRY HEALTHCARE ANNOUNCES SECOND QUARTER 2017 FINANCIAL RESULTS Completes the Renewal and Increases the Size of its Credit Agreement

CROSS COUNTRY HEALTHCARE ANNOUNCES SECOND QUARTER

2017 FINANCIAL RESULTS

Completes the Renewal and Increases the Size of its Credit

RATON, Fla., August 2, 2017--Cross Country Healthcare, Inc.

(the "Company") (Nasdaq: CCRN) today announced financial results

for the second quarter ended June 30, 2017. In addition, the

Company announced it has renewed and increased the size of its

Credit Agreement to $215 million, including a $100 million term

loan and a $115 million revolving credit facility.

FINANCIAL HIGHLIGHTS:

are in thousands, except percent and per share data.

Refer to tables and discussion of

Non-GAAP financial measures below.

had a solid second quarter highlighted by year-over-year revenue

growth in all three reporting segments. With revenue in line

with expectations, I was pleased that we exceeded guidance for

Gross Margin, Adjusted EBITDA and Adjusted EPS, said William

J. Grubbs, President and Chief Executive Officer. Our new

MSP implementations are progressing and we expect an increase in

demand from these programs through the third and fourth

quarters. Coupled with the delivery capabilities from the

Advantage RN acquisition, we expect to see stronger revenue growth

quarter consolidated revenue was $209.3 million, an increase of 5%

year-over-year and 1% sequentially. Consolidated gross profit

margin was 27.0%, down 50 basis points year-over-year and up 130

basis points sequentially. Net income attributable to common

shareholders was $4.9 million compared to a net loss of $17.2

million in the prior year, which included a loss on early

extinguishment of debt, a loss on derivative liability, and

impairment charges, totaling $22.4 million after taxes. Diluted EPS

was $0.13 per share compared to a loss of $0.54 per share in the

prior year. Adjusted EBITDA was $10.9 million or 5.2% of revenue,

as compared with $11.1 million or 5.5% of revenue in the prior

year. Adjusted EPS was $0.16 for the second quarter of 2017 and

2016 and $0.05 in the prior quarter.

six months ended June 30, 2017, consolidated revenue was $416.9

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

profit margin was 26.3%, down 40 basis points year-over-year.

Adjusted EBITDA was $17.3 million or 4.2% of revenue, as compared

with $19.6 million or 4.9% of revenue in the prior year. Net income

attributable to common shareholders was $2.8 million, or $0.05 per

diluted share, compared to net income of $1.8 million, or a net

loss of $0.26 per diluted share, in the prior year. Adjusted EPS

was $0.21 compared to $0.25 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

from Nurse and Allied Staffing was $180.9 million, an increase of

5% year-over-year and a decrease of 1% sequentially. The

year-over-year increase in segment revenue was predominantly due to

higher volume. Contribution income in this segment was $18.1

million, up from $17.6 million in the prior year. Average field

FTEs increased to 7,155 from 6,884 in the prior year. Revenue per

FTE per day was $278 compared to $275 in the prior year, primarily

reflecting a change in the mix of business.

from Physician Staffing was $24.7 million, an increase of 3%

year-over-year and 15% sequentially. The year-over-year increase

was primarily due to an increase in volume. Contribution income was

$2.0 million, consistent with the prior year. Compared to the prior

year, total days filled increased to 15,220 from 14,480, primarily

due to volume growth in advanced practice professionals. Revenue

per day filled increased to $1,557 from $1,525 due to improved

pricing partly offset by the change in mix of

Other Human Capital Management Services

from Other Human Capital Management Services was $3.7 million, an

increase of 6% year-over-year and 22% sequentially. Contribution

income was $0.2 million, compared to $0.1 million in the prior

Cash Flow and Balance Sheet Highlights

flow provided by operating activities for the current quarter was

$24.1 million compared to $10.3 million in the same period of the

prior year. At June 30, 2017, the Company had $33.9 million in

cash and cash equivalents and $37.6 million of total

debt. There were no borrowings drawn on its $100.0 million

revolving credit facility, and $21.6 million of letters of credit

outstanding, leaving $78.4 million available for borrowings under

the revolving credit facility.

Renewal of Credit Agreement

previously announced, the July acquisition of Advantage RN was

funded using available cash and borrowings of approximately $67.5

million under the existing credit facility, including a $40 million

incremental term loan. Subsequent to the acquisition, on August 1,

2017, the Company entered into an Amendment and Restatement to its

Credit Agreement to refinance and increase the current aggregate

committed size of the facility to $215 million, including a term

loan of $100 million and a $115 million revolving credit facility.

The proceeds of $106.5 million from this refinancing included $6.5

million under the new revolving credit facility, and were used to

repay borrowings under the Company's previously existing credit

facilities, as well as to pay related interest, fees and

Outlook for Third Quarter 2017

estimates above are based on current management expectations and,

as such, are forward-looking and actual results may differ

materially. These ranges include the impact of the Advantage RN

acquisition, but 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. See

accompanying Non-GAAP financial measures and tables