Cross Country Healthcare Announces Third Quarter 2015 Financial Results BOCA RATON, Fla.--(BUSINESS WIRE)

Country Healthcare Announces Third Quarter 2015 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--November 4, 2015--Cross Country

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

third quarter ended September 30, 2015.

Revenue was $195.7 million, up 4% year-over-year or 5% on a pro

Adjusted EBITDA was $12.3 million or 6.3% of revenue versus $6.6

million or 3.5% of revenue in the prior year

Reported diluted earnings per share (EPS) was $0.16; Adjusted EPS

Cash flow from operations was $12.9 million

Fourth Quarter Guidance: Revenue of $193 million - $198 million and

Adjusted EBITDA margin of 5.5% - 6.0%

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

"This was another strong quarter for Cross Country Healthcare. We not

only exceeded our guidance but we achieved our targeted fourth quarter

goal for a 5.0% Adjusted EBITDA margin one quarter ahead of schedule.

Our revenue growth, pricing improvement and cost optimization

initiatives are all on track and contributed to these results," stated

William J. Grubbs, President and Chief Executive Officer. Mr. Grubbs

added, "The favorable market conditions along with the addition of our

recently announced acquisition of Mediscan should further enhance our

Third quarter consolidated revenue was $195.7 million, an increase of 4%

year-over-year and 2% sequentially. The Company's consolidated gross

profit margin was 26.3%, up 130 basis points year-over-year and up 120

basis points sequentially. Adjusted EBITDA was $12.3 million or 6.3% of

revenue, as compared with $6.6 million or 3.5% of revenue in the prior

year. Excluding the results of the education seminars business that was

divested August 31, 2015, revenue would have been $192.6 million, an

increase of 5% year-over-year, and Adjusted EBITDA would have been $12.9

million, or 6.7% of revenue. Net income attributable to common

shareholders was $5.0 million, or $0.16 per diluted share, compared to a

net loss of $7.6 million or $0.24 per diluted share in the prior year.

Adjusted EPS was $0.23 compared to $0.07 in the prior year and $0.10 in

For the nine months ended September 30, 2015, consolidated revenue was

$574.3 million, an increase of 34% year-over-year. On a pro forma basis,

year-to-date revenue was up 5% year-over-year. Consolidated gross profit

margin was 25.6% for both the current and prior year-to-date periods.

Adjusted EBITDA was $26.6 million or 4.6% of revenue, as compared with

$10.9 million or 2.5% of revenue in the prior year. Net income

attributable to common shareholders was $10.5 million, or $0.33 per

diluted share, compared to a net loss of $11.6 million or $0.37 per

diluted share in the prior year. Adjusted EPS was $0.36 compared to

$0.06 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing increased 6% year-over-year and

3% sequentially. Contribution income in this segment was $16.3 million,

up from $12.7 million in the prior year. The year-over-year increase in

segment revenue and contribution income was due to both organic growth

and improved gross margins. Average field FTEs increased to 6,646 from

6,407 in the prior year. Revenue per FTE per day was $257 compared to

$251 in the prior year, reflecting higher average bill rates.

Revenue from Physician Staffing decreased 3% year-over-year and

increased 4% sequentially. Contribution income was $3.2 million, up from

$1.5 million in the prior year due to improved gross margins and lower

SG&A expenses. Compared to the prior year, total days filled decreased

to 20,543 from 22,100 while revenue per day filled increased to $1,505

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $7.4 million, a

decrease of 19% year-over-year and 27% sequentially. The year-over-year

decrease was due to one less month of revenue from the education

seminars business, partially offset by growth in the search business

which was up 30% year-over-year. Contribution income was $0.4 million,

compared to a loss of $0.1 million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow provided by operating activities was $12.9 million for the

quarter and $18.9 million year-to-date. At September 30, 2015, the

Company had $24.6 million in cash and cash equivalents, including the

net cash proceeds of $7.2 million from the sale of Cross Country

Education, and $55.0 million of subordinated debt at par. The Company

had $47.2 million of availability under the senior credit facility at

Outlook for Fourth Quarter 2015

The Company also provided guidance for the fourth quarter of 2015:

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, or any material legal or

restructuring charges. Adjusted net income attributable to common

shareholders per diluted share assumes an adjusted weighted average

share count, including the Mediscan restricted shares.

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Thursday,

November 5, 2015, at 9:00 A.M. Eastern Time to discuss its third quarter

2015 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 November 5th through November 19th

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: 2015.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Country Healthcare, Inc., headquartered in Boca Raton, Florida, is

a national leader in providing leading-edge healthcare workforce

solutions. Our solutions are geared towards assisting our clients solve

labor cost issues while maintaining high quality outcomes. With more

than 30 years of experience, we are dedicated to placing highly

qualified nurses and physicians as well as allied health, advanced

practice, clinical research, and case management professionals. We