Full Press Release Details
Country Healthcare Announces Updated Fourth Quarter & Full Year 2013
BOCA RATON, Fla.--(BUSINESS WIRE)--March 17, 2014--Cross Country
Healthcare, Inc. (NASDAQ:CCRN) filed its Form 10-K today reflecting an
accounting adjustment to its unaudited fourth quarter and full year 2013
financial results previously reported on March 5, 2014. The adjustment
reflects an increase of $17.4 million in the non-cash valuation
allowance on deferred tax assets. When calculating the non-cash
valuation allowance on deferred tax assets, deferred tax liabilities
related to indefinite-lived intangible assets (such as goodwill) were
incorrectly netted against the deferred tax assets. There is no change
to Adjusted EBITDA, Adjusted (Loss) Income from Continuing Operations,
Adjusted Net Income or net cash flow from operating activities, or the
amount of cash taxes the Company will pay related to its operations.
This $17.4 million adjustment increased the net loss for the three
months ended December 31, 2013 from $35.2 million to $52.6 million. For
the year ended December 31, 2013, net loss increased from $34.6 million
to $52.0 million. Updated financial tables showing the impact of the
adjustment are attached.
In light of this accounting adjustment, management has concluded that a
material weakness existed in the controls related to the Company's
oversight and review of non-cash, non-routine estimates and that, as a
result, internal control over financial reporting and disclosure
controls and procedures were not effective. Management is undertaking
steps to remediate the material weakness, including the development of
enhanced procedures and processes. Management believes in the future
these additional control procedures will, when fully implemented,
remediate this material weakness.
NON-GAAP FINANCIAL MEASURES
This press release and accompanying financial statement tables reference
non-GAAP financial measures. Such non-GAAP financial measures are
provided as additional information and should not be considered
substitutes for, or superior to, financial measures calculated in
accordance with U.S. GAAP. Such non-GAAP financial measures are provided
for consistency and comparability to prior year results; furthermore,
management believes they are useful to investors when evaluating the
Company's performance as it excludes certain items that management
believes are not indicative of the Company's operating performance. Such
non-GAAP financial measures may differ materially from the non-GAAP
financial measures used by other companies. The financial statement
tables that accompany this press release include a reconciliation of
each non-GAAP financial measure to the most directly comparable U.S.
GAAP financial measure and a more detailed discussion of each financial
measure; as such, the financial statement tables should be read in
conjunction with the presentation of these non-GAAP financial measures.
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, Inc. is a leader in healthcare staffing with a
primary focus on providing nurse, allied and physician (locum tenens)
staffing services and workforce solutions to the healthcare market. The
Company believes it is one of the top two providers of nurse and allied
staffing services, one of the top four providers of temporary physician
staffing services, and one of the top four providers of retained
physician and healthcare executive search services. The Company also is
a leading provider of education and training programs specifically for
the healthcare marketplace. On a company-wide basis, Cross Country
Healthcare has approximately 3,000 active contracts with hospitals and
healthcare facilities, and other healthcare organizations to provide our
staffing services and workforce solutions. Copies of this and other news
releases as well as additional information about Cross Country
Healthcare can be obtained online at www.crosscountryhealthcare.com.
Shareholders and prospective investors can also register to
automatically receive the Company's press releases, SEC filings and
other notices by e-mail.
In addition to historical information, this press release contains
statements relating to our future results (including certain projections
and business trends) that are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and are subject to the "safe harbor" created by those
sections. Forward-looking statements consist of statements that are
predictive in nature, depend upon or refer to future events. Words such
as "expects", "anticipates", "intends", "plans", "believes",
"estimates", "suggests", "appears", "seeks", "will" and variations of
such words and similar expressions intended to identify forward-looking
statements. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results and
performance to be materially different from any future results or
performance expressed or implied by these forward-looking statements.
These factors include, without limitation, the following: our ability to
attract and retain qualified nurses, physicians and other healthcare
personnel, costs and availability of short-term housing for our travel
nurses and physicians, demand for the healthcare services we provide,
both nationally and in the regions in which we operate, the functioning
of our information systems, the effect of existing or future government
regulation and federal and state legislative and enforcement initiatives
on our business, our clients' ability to pay us for our services, our
ability to successfully implement our acquisition and development
strategies, the effect of liabilities and other claims asserted against
us, the effect of competition in the markets we serve, our ability to
successfully defend the Company, its subsidiaries, and its officers and
directors on the merits of any lawsuit or determine its potential
liability, if any, and other factors set forth in Item 1A. "Risk
Factors" in the Company's Annual Report on Form 10-K for the year ended
December 31, 2013, and our other Securities and Exchange Commission
filings made prior to the date hereof.
Although we believe that these statements are based upon reasonable
assumptions, we cannot guarantee future results and readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect management's opinions only as of the date of
this press release. There can be no assurance that (i) we have correctly
measured or identified all of the factors affecting our business or the