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

Country Healthcare Announces Third Quarter 2018 Financial Results

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

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

financial results for its third quarter ended September 30, 2018.

FINANCIAL HIGHLIGHTS:

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

"Our results for the third quarter were in line with our expectations

despite a further decline in premium rate business and higher than

anticipated healthcare costs," said William J. Grubbs, President and

Chief Executive Officer. "We are encouraged by the significant recent

increase in demand we are experiencing across many of our key customers

and geographies especially in travel nurse, our largest service line. To

capitalize on this favorable trend, we are making investments in

producer headcount. Therefore, we are guiding to a sequentially flat

Adjusted EBITDA, reflecting the investments and higher healthcare costs.

The anticipated ramp from our recent MSP wins, investments, and recent

productivity initiatives, along with favorable market conditions,

position us well as we enter 2019."

Third quarter consolidated revenue was $200.7 million, a decrease of 12%

year-over-year and 2% sequentially. Consolidated gross profit margin was

25.7%, down 80 basis points year-over-year and 50 basis points

sequentially. Net loss attributable to common shareholders was $0.4

million compared to net income of $6.7 million in the prior year and

$1.5 million in the prior quarter. Diluted EPS was a loss of $0.01 per

share compared to income of $0.19 per share in the prior year and $0.04

in the prior quarter. Adjusted EBITDA was $8.1 million or 4.0% of

revenue, as compared with $13.8 million or 6.0% of revenue in the prior

year, and $8.7 million or 4.3% of revenue in the prior quarter. Adjusted

EPS was $0.02 in the current quarter as compared to income of $0.23 in

the prior year and $0.05 in the prior quarter.

For the nine months ended September 30, 2018, consolidated revenue was

$615.6 million, a decrease of 5% year-over-year, 10% excluding the

impact of the Advantage acquisition. Consolidated gross profit margin

was 25.8%, down 60 basis points year-over-year. Adjusted EBITDA was

$25.2 million or 4.1% of revenue, as compared with $31.1 million or 4.8%

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

shareholders was $2.7 million, or $0.08 per diluted share, compared to

net income of $9.6 million, or $0.24 per diluted share, in the prior

year. Adjusted EPS was $0.13 compared to $0.44 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue from Nurse and Allied Staffing was $176.3 million, a decrease of

12% year-over-year and 2% sequentially. Contribution income in this

segment was $16.5 million, down from $20.7 million in the prior year,

and down sequentially from $16.9 million in the prior quarter. Average

field FTEs decreased to 6,953 from 7,706 in the prior year and decreased

from 7,143 in the prior quarter. Revenue per FTE per day was $276

compared to $283 in the prior year and $276 in the prior quarter.

Revenue from Physician Staffing was $21.2 million, a decrease of 15%

year-over-year and 1% sequentially. Contribution income was $1.3

million, consistent with the prior year, and $1.4 million in the prior

quarter. Total days filled were 13,375 as compared with 15,567 in the

prior year and 13,751 in the prior quarter. Revenue per day filled was

$1,582 as compared with $1,598 in the prior year and $1,551 in the prior

Other Human Capital Management Services

Revenue from Other Human Capital Management Services was $3.2 million,

an increase of 3% year-over-year and a decrease of 18% sequentially.

Segment contribution income was $0.1 million for the current quarter

compared to breakeven in the prior year, and $0.3 million in the prior

Cash Flow and Balance Sheet Highlights

Cash flow from operations for the quarter was $3.8 million, compared to

$3.2 million in the prior year. During the third quarter, the Company

made principal payments of $6.3 million, including an optional

prepayment of $5.0 million. Cash flow from operations was $21.8 million

year-to-date September 30, 2018, compared to $28.7 million in the prior

year-to-date period.

During the quarter, the Company also repurchased 32,983 shares of common

stock for $0.3 million, at an average market price of $9.08 per share.

Year-to-date repurchases totaled 432,439 shares of common stock for $5.0

million at an average market price of $11.54. As of September 30, 2018,

the Company had 35.6 million shares outstanding. The Company has 510,004

shares remaining for repurchase under its current share repurchase

program, subject to certain conditions in its credit agreement.

As of September 30, 2018, the Company had $28.1 million in cash and cash

equivalents and a $91.3 million principal balance on our term

loan. There were no amounts drawn on the Company's $115.0 million

revolving credit facility and $20.6 million of letters of credit

outstanding, leaving $94.4 million available for borrowing under the

revolving credit facility as of September 30, 2018.

Outlook for Fourth Quarter 2018

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

fourth quarter of 2018.

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, or any future share repurchases. See

accompanying Non-GAAP financial measures and tables below.

INVITATION TO CONFERENCE CALL

The Company will hold its quarterly conference call on Thursday,

November 1, 2018, at 5:00 P.M. Eastern Time to discuss its third 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 November 1st through November 15th

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

available by telephone by calling 800-944-9725 from anywhere in the U.S.