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

Country Healthcare Announces Third Quarter 2016 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)--November 2, 2016--Cross Country

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

the third quarter ended September 30, 2016.

GAAP Financial Highlights:

Revenue was $215.0 million compared to $195.7 million in the prior

Net income attributable to common shareholders was $14.1 million

compared to $5.0 million in the prior year quarter

Diluted Earnings Per Share (EPS) was $0.22 compared to $0.16 in the

Other Financial Highlights:

Revenue was $215.0 million, up 10% year-over-year and 7% on a

Adjusted EBITDA was $13.1 million, or 6.1% of revenue versus $12.3

million, or 6.3% of revenue in the prior year

Adjusted EPS was $0.24 compared to $0.23 in the prior year

Cash flow from operations was $19.4 million compared to $12.9

million in the prior year

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

"This was a strong quarter for the company with revenue, Adjusted EBITDA

and Adjusted EPS all significantly ahead of guidance," said William J.

Grubbs, President & Chief Executive Officer. "The investments and

improvement initiatives we have been working on for more than three

years are starting to pay off, giving us good momentum going into the

fourth quarter and 2017."

Third quarter consolidated revenue was $215.0 million, an increase of

10% year-over-year and 8% sequentially. The Company's consolidated gross

profit margin was 27.1%, up 80 basis points year-over-year and down 40

basis points sequentially. Net income attributable to common

shareholders was $14.1 million compared to $5.0 million in the prior

year. The third quarter included a gain on the derivative liability of

$7.1 million as compared to a $2.9 million loss in the prior year that

was partly offset by a $1.3 million after-tax gain on the sale of a

business. Diluted EPS was $0.22 per share compared to $0.16 per share in

the prior year. Adjusted EBITDA was $13.1 million or 6.1% of revenue, as

compared with $12.3 million or 6.3% of revenue in the prior year.

Adjusted EPS was $0.24 compared to $0.23 in the prior year and $0.16 in

For the nine months ended September 30, 2016, consolidated revenue was

$611.0 million, an increase of 6% year-over-year. Consolidated gross

profit margin was 26.9%, up 130 basis points year-over-year. Net income

attributable to common shareholders was $15.9 million, or a net loss of

$0.04 per diluted share, compared to net income of $10.5 million, or

$0.33 per diluted share, in the prior year. Adjusted EBITDA was $32.7

million or 5.4% of revenue, as compared with $26.6 million or 4.6% of

revenue in the prior year. Adjusted EPS was $0.49 compared to $0.36 in

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $186.6 million, an increase

of 19% year-over-year and 8% sequentially. Contribution income in this

segment was $19.5 million, up from $16.6 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 6,954 from 6,646 in the prior year.

Revenue per FTE per day was $292 compared to $257 in the prior year,

reflecting higher average bill rates.

Revenue from Physician Staffing was $25.1 million, a decrease of 19%

year-over-year and an increase of 5% sequentially. Contribution income

was $2.4 million, down from $3.2 million in the prior year. Compared to

the prior year, total days filled decreased to 16,639 from 20,543 while

revenue per day filled increased to $1,576 from $1,505 due to improved

pricing and mix of business.

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.3 million, a

decrease of 56% year-over-year and 6% 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 23% compared to the prior year.

Contribution income was a loss of $0.2 million, compared to income of

$0.4 million in the prior year.

Cash Flow and Balance Sheet Highlights

Cash flow provided by operating activities was $19.4 million compared to

$12.9 million in the same period of the prior year. At September 30,

2016, the Company had $26.7 million in cash and cash equivalents, $39.5

million of term loan and $25.0 million of convertible notes at par.

There were no borrowings drawn on its $100.0 million revolving credit

facility, and $22.2 million of letters of credit outstanding, leaving

$77.8 million available for borrowings under the revolving credit

Outlook for Fourth 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,

November 3, 2016, at 9:00 A.M. Eastern Time to discuss its third 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 November 3rd through November 17th

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.

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

in solving complex labor-related challenges while maintaining high

quality outcomes. We are dedicated to recruiting and placing highly