Cross Country Healthcare Announces Second Quarter 2018 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces Second Quarter 2018 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--August 1, 2018--Cross Country

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

financial results for its second quarter ended June 30, 2018.

FINANCIAL HIGHLIGHTS:

* Refer to accompanying tables and discussion of Non-GAAP financial

"After a good start to 2018 recovering from the headwinds we faced in

the fourth quarter of 2017, we experienced a pull back on spend from

some of our larger customers in the second quarter. This pull back

offsets the growth from our new managed service programs," said William

J. Grubbs, President and Chief Executive Officer. "We are making

adjustments to our business to address these challenges and believe the

underlying market dynamics will allow us to get back to year-over-year

Second quarter consolidated revenue was $204.6 million, a decrease of 2%

year-over-year and 3% sequentially. Excluding the Advantage acquisition,

revenue decreased 12% on a year-over-year basis. Consolidated gross

profit margin was 26.2%, down 80 basis points year-over-year and up 60

basis points sequentially. Net income attributable to common

shareholders was $1.5 million compared to $4.9 million in the prior year

and $1.6 million in the prior quarter. Diluted EPS was $0.04 per share

compared to $0.13 per share in the prior year and $0.05 in the prior

quarter. Adjusted EBITDA was $8.7 million or 4.3% of revenue, as

compared with $10.9 million or 5.2% of revenue in the prior year, and

$8.4 million or 4.0% of revenue in the prior quarter. Adjusted EPS was

$0.05 in the current quarter as compared to $0.16 in the prior year and

$0.06 in the prior quarter.

For the six months ended June 30, 2018, consolidated revenue was $414.9

million, a decrease of less than 1% year-over-year, 10% excluding the

impact of the Advantage acquisition. Consolidated gross profit margin

was 25.9%, down 40 basis points year-over-year. Adjusted EBITDA was

$17.1 million or 4.1% of revenue, as compared with $17.3 million or 4.2%

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

shareholders was $3.2 million, or $0.09 per diluted share, compared to

net income of $2.8 million, or $0.05 per diluted share, in the prior

year. Adjusted EPS was $0.11 compared to $0.21 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $179.3 million, a decrease of

1% year-over-year and 3% sequentially. Excluding the Advantage

acquisition, revenue decreased 12% on a year-over-year basis.

Contribution income in this segment was $16.9 million, down from $18.1

million in the prior year, and up sequentially from $16.8 million in the

prior quarter. Average field FTEs decreased to 7,143 from 7,155 in the

prior year and decreased from 7,466 in the prior quarter. Revenue per

FTE per day was $276 compared to $278 in the prior year and $275 in the

Revenue from Physician Staffing was $21.3 million, a decrease of 14%

year-over-year and 1% sequentially. Contribution income was $1.4

million, down from $2.0 million in the prior year and $1.5 million in

the prior quarter. Total days filled were 13,751 as compared with 15,690

in the prior year and 14,250 in the prior quarter. Revenue per day

filled was $1,551 as compared with $1,576 in the prior year and $1,513

in the prior quarter.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.9 million,

an increase of 6% year-over-year and 8% sequentially. Segment

contribution income was $0.3 million for the current quarter compared to

$0.2 million in the prior year, and consistent with the prior quarter.

Cash Flow and Balance Sheet Highlights

Cash flow provided by operating activities for the current quarter was

$4.7 million compared to $24.1 million in the prior year. At June 30,

2018, the Company had $32.6 million in cash and cash equivalents and a

$97.5 million term loan, par value, outstanding under the term

loan. There were no borrowings drawn on its $115.0 million revolving

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

leaving $93.4 million available for borrowings under the revolving

During the second quarter of 2018, the Company repurchased 157,056

shares of common stock for $1.8 million, at an average market price of

$11.53 per share. As of June 30, 2018, the Company had 35.6 million

shares outstanding. The Company has 542,987 shares remaining for

repurchase under its current share repurchase program, subject to

certain conditions in its credit agreement.

Outlook for Third Quarter 2018

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

third quarter of 2018. Though the Company does not provide full year

guidance, organic growth for the full year and continued margin

improvement are expected based on continued favorable market dynamics

and demand for its services. In addition to the normal operating

leverage from anticipated revenue growth, the Company will be

undertaking actions designed to further align its cost structure for

improved profitability towards achieving its goal of an 8% Adjusted

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, any future share repurchases, or the

initiative to replace its legacy system supporting its travel nurse

staffing business. See accompanying Non-GAAP financial measures and

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Wednesday, August

1, 2018, at 5:00 P.M. Eastern Time to discuss its second quarter 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 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 1st through August 15th at

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

available by telephone by calling 800-391-9846 from anywhere in the U.S.

or 402-220-3132 from non-U.S. locations - Passcode: 2018.