Full Press Release Details
Investor Day 2022 Cross Country Healthcare September 14, 2022
This presentation contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act, and are subject to the "safe harbor" created by those sections.
Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", "appears","seeks", "will" and variations
of such words and similar expressions are intended to identify forward-looking statements. These 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. Factors that might cause such differences include, but are not limited to, those discussed in the Risk Factors section of our Annual
Report on Form 10-K for the year ended December 31, 2021, and in 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 filing. There can be no assurance that (i) we have correctly
measured or identified all of the factors affecting our business or the extent of these factors' likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such
analysis is correct or (iv) our strategy, which is based in part on this analysis, will be successful. Except as may be required by law, the Company undertakes no obligation to update or revise forward-looking statements. Forward-Looking
TECHNOLOGY 2 CULTURE 3 GO TO MARKET 4 DELIVERY 5 LEADERSHIP 1 John A. Martins President and
OUR ROADMAP AND PLAN Long-term, sustainable, profitable growth
EVOLVE ELEVATE EXECUTE
$31B Total addressable staffing market Market Size per Staffing Industry Analysts (SIA), US Staffing
Industry Forecast, May 2022 Update., represents 2023 estimate Employment Projections 2021-2031; US Bureau of Labor Statistics (9/8/2022) 2.6M Healthcare Jobs to be Added by 2031
OUR ROADMAP AND PLAN A digitally transformed, innovative enterprise with diverse capabilities to
help clients solve their most pressing labor challenges
Continuum of Care Home Retail Pharmacy Physician Offices & Clinics Urgent Care
Center Diagnostic Imaging Center Ambulatory Procedure Emergency Department Hospital Inpatient Rehabilitation Outpatient Rehabilitation Extended Care Facility Skilled Nursing Facility Home Health & Hospice Home/PACE
Program Wellness & Fitness Center PACE: Program of All-Inclusive Care for the Elderly
~3% Outstanding shares repurchased in Q3'22 $100M Share repurchase program New $100M share
repurchase plan announced August 16, 2022 Shares Repurchased Through September 12, 2022
Bill Burns Executive Vice President, Chief Financial Officer TECHNOLOGY 2 CULTURE 3 GO TO
MARKET 4 DELIVERY 5 LEADERSHIP 1
Total Addressable Market Healthcare Staffing Market ~$30B* Education Staffing
Market ~$1B* ~$31B ~$2.5B Revenue** ~8% MARKET SHARE*** Cross Country Healthcare * Per SIA, US Staffing Industry Forecast, May 2022 Update., 2023 estimate ** Cross Country Healthcare (CCH) trailing twelve month revenue ending June
2022 *** Based on CCH estimates for 2022 and SIA estimated market size.
The Healthcare Staffing Market $21B 13% CAGR $40B $34B $30B Market Size & Mix per Staffing
Industry Analysts, US Staffing Industry Forecast, May 2022 Update., 2023 estimate Addressable Today & Vendor Management System (VMS) opportunity based on CCH Estimates CAGR: Compound Annual Growth Rate 2023P Addressable - Today VMS
Travel Nursing Evolution through the Pandemic $15B $18B $23B $9B $7B Bill
Rate $ $$ $$$ $$$ $$ 2019 2020 2021 2022 2023 FTEs (in thousands) 50 85 100 80 90 23 vs. Pre-Pandemic CAGR 60% 13% 8% 35% Our Experience: ~3x Total Travelers ~10x age 25 or younger ~3x between ages of 26 -
41 Market Size Staffing Industry Analysts, US Staffing Industry Forecast, May 2022 Update., 2023 estimate FTEs (Full Time Equivalents): Pre-pandemic and Peak FTEs per SIA. 2022 & 2023 represent CCH estimates based on internal bill rate
Contingent Usage Healthcare Job Openings vs. Hires based on JOLTS report from Bureau of Labor
Our Success is Built Upon
Proven Ability to Execute REVENUE: 7 Straight Quarters Double Digit Growth 13 out of 14 Quarters
Meeting or Exceeding Guidance & Consensus 6 Straight Quarters Outpaced Revenue growth vs publicly traded peer Adj. EBITDA: 7 Straight Quarters High-Single to low-Double Digit Margin 12 out of 14 Quarters Meeting or Exceed Guidance
Raising Q3 Guidance THIRD QUARTER 2022 ORIGINAL GUIDANCE REVISED GUIDANCE Revenue $605 -
$615M $615M - $625M Adj. EBITDA $55M - $60M $58M - $63M Adj. EPS $0.85 - $0.95 $0.90 - $1.00
Fourth Quarter Revenue Outlook + $50M or 10% Min $550M 2022 exit run rate - Revised 2022 exit run
rate -Prior Min $500M
2023 Minimum Guidance 2023 Full Year $2.2B $200M +9% Revenue Adj. EBITDA AEBITDA %
Susan Ball Executive Vice President, Chief Administrative Officer and General
Counsel LEADERSHIP 1 TECHNOLOGY 2 CULTURE 3 GO TO MARKET 4 DELIVERY 5
"A relationship of this length can only succeed if trust is established between the parties and that is
certainly the case for Northwell's partnership with Cross Country Healthcare." - EVP and Chief Nurse Executive of Northwell Health
<0.5% Clinical cancellation rate 95% Onboarding On-time start rate Internal Metrics - YTD
Phillip Noe Chief Information Officer LEADERSHIP 1 TECHNOLOGY 2 CULTURE 3 GO TO
Our Industry Today Growing by Acquisitions Lack an Integrated Tech
Stack STAFFING Tech-focusedSolutions Lack Staffing Industry Experience TECHNOLOGY Strong Weak Strong Weak TRADITIONAL HEALTHCARE STAFFING TECH DISRUPTORS PROBLEM PROBLEM
THE BENEFIT Speed and accuracy across the entire professional and client experience.
A Frictionless, Simple Candidate Experience OUR GATEWAY PORTAL EVOLVE ELEVATE EXECUTE
Digital Credentialing Wallet Candidate Loyalty Machine Learning/Artificial Intelligence Real Time
Notifications Instant Interviews Quick Extensions Job Offers Pay Package Quotes GATEWAY CANDIDATE PORTAL
A Frictionless, Simple Client Experience OUR INTELLIFY VMS
Integration and Partnership Machine Learning/Artificial Intelligence Customer Data Smart
Schedule Vendor Neutral Talent Forecasting OUR INTELLIFY CLIENT PORTAL Client Needs Time to Market
Implementing self service automation Improving producer efficiency and capacity Leveraging data and
analytics to improve decision making
Colin McDonald Chief Human Resources Officer LEADERSHIP 1 TECHNOLOGY 2 CULTURE 3 GO TO
Train Recruit Engage
We are: Connected Accountable Compassionate Driven Entrepreneurial
1,100+ Most employees hired in a single year ~20% Average attrition rate $350M Revenue from
first-year travel recruiters over the last 12 months Metrics for CCH corporate employees only (2021-2022)
42% New hires from healthcare and staffing industry 81% Number of employees
retained 100% Employees work where they are most productive Metrics for CCH corporate employees only (2021-2022)
36% Increase in promotions YTD compared to 2021 87% Employees predicted as a low flight risk using
our internal Business Intelligence (BI) system Metrics for CCH corporate employees only (2021-2022)
42% Employees identifying as minorities 87% Employees who believe CCH is committed to
diversity 88% Employees whobelieve the company respects individuals and values their differences 78% Female employees Metrics for CCH corporate employees only (2021-2022)
Dan White Chief Commercial Officer LEADERSHIP 1 TECHNOLOGY 2 CULTURE 3 GO TO
$84M New MSP contracts signed in 2022 $70M MSP verbal awards in contracting for Q3'22
A Tech-Enabled Workforce Platform IntellifyTM is our proprietary Vendor Management System (VMS) that
automates the process of finding, scheduling and managing staff via one centralized platform
OUR WORKFORCE PLATFORM Talent Offerings Managed Service Program (MSP) Recruitment Process
Outsourcing Internal Resource Pool Int'lNursing Sabbatical Program Registered Nurse Residency Upskilling Motivate/Engage/Retain Interim Leadership Locums Nurse & Allied Nurse & Allied Non- Clinical Physician
Search Executive Search Non-Clinical
Marc Krug Group President, Delivery LEADERSHIP 1 TECHNOLOGY 2 CULTURE 3 GO TO
MARKET 4 DELIVERY 5 Amiee Hawkins SVP Enterprise Operations
CASE STUDY 1 700+ professionals mobilized in <2 weeks Onsite regulatory audit: 100% no
deficiencies 5% converted to perm staff 209 positions filled 500+ unique candidates sourced Average 1.7 days to submission CASE STUDY 2 CCH Internal Data for specific clients
1 2 3 4 5 6 Source the right professional for the opportunity Transparency in
compensation Customer success with exceptional service to our professionals and clients Continuous engagement throughout the professional and client lifecycle Speed and purpose: speed to partner, speed to support, and speed to
deliver Retention from the first contact to a lifelong partnership Our Delivery Model - Six Tenants
1.5 Weeks 3-4 Months CURRENT PREVIOUS Ramp-up Time of New Travel Recruiters Internal Metrics -
2019 through YTD 2022
Recruiter productivity 2X across our travel business lines Technology automates non-revenue
generating tasks 24/7 recruitment model maximizes potential productivity Improving Recruiter Productivity Internal Metrics - 2019 through YTD 2022
Bill Burns Executive Vice President, Chief Financial Officer TECHNOLOGY 2 CULTURE 3 GO TO
MARKET 4 DELIVERY 5 LEADERSHIP 1
What We Do Prior Today PEOPLE PROCESS TECHNOLOGY =
RESULTS +100% +50% 3X Capacity Productivity Revenue x = + + Travel Local Locums Education Home Search MSP / VMS
Strong Client Relationships Revenue by Client Contract Type MSP / MSO, 53% 3rd Party, 15% Direct,
32% MSP / MSO / VMS, 60% 3rd Party, 10% Direct, 30% TODAY FUTURE GOAL Managed Service Program (MSP), Managed Service Offering (MSO), Vendor Management System (VMS)
Expanding Lines of Business TODAY FUTURE GOAL Travel, 79% Other, 2% Local, 10% Home,
4% Education, 2% Locums, 3% Travel, 62% Other, 7% Local, 7% Home, 7% Education, 9% Locums, 8% Improving Diversification Through Growth Across Higher Margin Business
Vendor Neutral Opportunity ~$30B* ~$10B - $15B ~8% Potential CCH
SHARE $1B+ REVENUE MARGIN 20% Capture $200M 20%-25% 80% Subs $50M ~95%+ Total $250M ~40% Expanding Market Opportunity through Technology Scenario for Illustrative Purposes Only Vendor Neutral Opportunity based on CCH
Levers for Margin Growth High Single to Low-Double Digits Sustained Double Digits Organic Growth in
Higher Margin Businesses Improved Bill-Pay Spreads Intellify Operational Efficiencies Automation TODAY FUTURE GOAL
Target Annual Free Cash Flow (FCF) Generation >60% of AEBITDA Estimate ~15%-25% of FCF towards Debt