BOCA RATON, Fla.--(BUSINESS WIRE)--Mar. 5, 2025-- Cross Country Healthcare, Inc. (the “Company”) (Nasdaq: CCRN) today announced financial results for its fourth quarter and full year ended December 31, 2024.

SELECTED FINANCIAL INFORMATION:

Fourth Quarter and Full Year Business Highlights

• Fourth quarter Revenue was at the high end of our guidance range
• Physician and Homecare Staffing experienced sequential and year-over-year revenue growth
• Cross Country Education experienced double-digit sequential revenue growth
• Secured a three-year contract renewal with our largest managed service program
• Continued strong balance sheet with $82 million of cash on hand and no debt as of December 31, 2024
• Repurchased over 2.4 million shares of common stock for $36.8 million in 2024

“Our fourth quarter top line performance was driven by continued strength in our non-travel businesses such as Physician Staffing, Education and Homecare,” said John A. Martins, President and Chief Executive Officer of Cross Country Healthcare. He continued, “As we await the closing of the pending transaction with Aya Healthcare, which we currently expect to occur in the second half of the year, we continue on our path of delivering clinical excellence in order to meet our clients’ needs in this dynamic and highly competitive market.”

Fourth quarter consolidated revenue was $309.9 million, a decrease of 25% year-over-year and 2% sequentially. Consolidated gross profit margin was 20.0%, down 190 basis points year-over-year and 40 basis points sequentially. Net loss attributable to common stockholders was $3.8 million, as compared to net income of $9.0 million in the prior year and $2.6 million in the prior quarter. Diluted earnings per share (EPS) was a net loss of $0.12, as compared to net income of $0.26 in the prior year and $0.08 in the prior quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $9.3 million, or 3.0% of revenue, as compared with $20.6 million, or 5.0% of revenue, in the prior year, and $10.3 million, or 3.3% of revenue, in the prior quarter. Adjusted EPS was $0.04, as compared to $0.29 in the prior year and $0.12 in the prior quarter.

For the year ended December 31, 2024, consolidated revenue was $1.3 billion, a decrease of 33% year-over-year. Consolidated gross profit margin was 20.4%, down 190 basis points year-over-year. Net loss attributable to common stockholders was $14.6 million, or $0.44 per diluted share, as compared to net income of $72.6 million, or $2.05 per diluted share, in the prior year. Adjusted EBITDA was $49.1 million, or 3.7% of revenue, as compared to $144.4 million, or 7.2% of revenue, in the prior year. Adjusted EPS was $0.46, as compared to $2.23 in the prior year.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue was $256.9 million, a decrease of 30% year-over-year and 3% sequentially. Contribution income was $20.3 million, a decrease from $33.9 million in the prior year and an increase from $19.3 million sequentially. Average field contract personnel on a full-time equivalent (FTE) basis was 7,621, as compared with 9,570 in the prior year and 7,660 in the prior quarter. Revenue per FTE per day was $363, as compared to $414 in the prior year and $373 in the prior quarter.

Physician Staffing

Revenue was $53.0 million, an increase of 13% year-over-year and 5% sequentially. Contribution income was $3.5 million, an increase from $1.9 million in the prior year and a decrease from $4.6 million sequentially. Total days filled were 25,427, as compared with 23,578 in the prior year and 24,424 in the prior quarter. Revenue per day filled was $2,085, as compared with $1,988 in the prior year and $2,058 in the prior quarter.

Cash Flow and Balance Sheet Highlights

Net cash provided by operating activities for the three months ended December 31, 2024 was $24.2 million, as compared to $12.1 million for the three months ended December 31, 2023 and $7.5 million for the three months ended September 30, 2024. We experienced an 11 day year-over-year improvement in days’ sales outstanding. For the year ended December 31, 2024, net cash provided by operating activities was $120.1 million, as compared to $248.5 million in the prior year.

During the fourth quarter, the Company repurchased and retired a total of 0.3 million shares of its common stock for an aggregate price of $3.6 million, at an average market price of $12.18 per share. As of December 31, 2024, the Company had 32.3 million unrestricted shares outstanding and $40.5 million remaining for share repurchase.

At December 31, 2024, the Company had $81.6 million in cash and cash equivalents with no debt outstanding. There were no borrowings drawn under its revolving senior secured asset-based credit facility (ABL). As of December 31, 2024, borrowing base availability under the ABL was $146.9 million, with $132.0 million of availability net of $14.9 million of letters of credit.

CONFERENCE CALL

As previously disclosed, on December 3, 2024, the Company entered into a merger agreement with Aya Healthcare, Inc. and certain of its subsidiaries (Aya Merger, and such agreement, the Merger Agreement). In light of the pending transaction, the Company will not host an earnings conference call to review fourth quarter and full year 2024 financial results, nor will it provide forward-looking guidance. This press release is also posted on the Company's website at ir.crosscountry.com.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Country Healthcare, Inc. is a market-leading, tech-enabled workforce solutions and advisory firm with 38 years of industry experience and insight. We help clients tackle complex labor-related challenges and achieve high-quality outcomes, while reducing complexity and improving visibility through data-driven insights.

Copies of this and other press releases, as well as additional information about the Company, can be accessed online at ir.crosscountry.com. Stockholders and prospective investors can also register to automatically receive the Company’s press releases, filings with the Securities and Exchange Commission (SEC), and other notices by e-mail.

NON-GAAP FINANCIAL MEASURES

This press release and the accompanying financial statement tables reference non-GAAP financial measures, such as gross profit margin, adjusted EBITDA, and adjusted EPS. 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 GAAP. Such non-GAAP financial measures are provided for consistency and comparability to prior year results; furthermore, management believes such non-GAAP financial measures are useful to investors when evaluating the Company's performance, as such non-GAAP financial measures exclude certain items that management believes are not indicative of the Company's future operating performance. Pro forma measures, if applicable, are adjusted to include the results of our acquisitions, and exclude the results of divestments, as if the transactions occurred in the beginning of the periods mentioned. 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 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.

FORWARD LOOKING STATEMENTS

This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact, including statements relating to our future results (including business trends); statements regarding the proposed Aya Merger; the expected timing and closing of the proposed Aya Merger; the Company’s ability to consummate the proposed Aya Merger; the expected benefits of the proposed Aya Merger and other considerations taken into account by the Board in approving the proposed Aya Merger; the amounts to be received by stockholders; and expectations for the Company prior to and following the closing of the proposed Aya Merger, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of the Company based on current expectations and assumptions relating to the Company’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the proposed Aya Merger, (ii) the risk that a condition of closing of the proposed Aya Merger may not be satisfied or that the closing of the proposed Aya Merger might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the proposed Aya Merger is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the proposed Aya Merger, (vi) the risk that any announcements relating to the proposed Aya Merger could have adverse effects on the market price of the common stock of the Company, (vii) the risk that the proposed Aya Merger and its announcement could have an adverse effect on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, including in circumstances requiring the Company to pay a termination fee, (ix) the risk that competing offers will be made, (x) unexpected costs, charges or expenses resulting from the Aya Merger, (xi) potential litigation relating to the Aya Merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that the Company’s businesses serve which could have an effect on demand for the Company’s services and impact the Company’s profitability, (xiii) effects from global pandemics, epidemics or other public health crises, (xiv) changes in marketplace conditions, such as alternative modes of healthcare delivery, reimbursement and customer needs, and (xv) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, costs of providing services, retention of key employees, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A - Risk Factors of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in the Company’s other filings with the SEC. The list of factors is not intended to be exhaustive.

These forward-looking statements speak only as of the date of this press release, and the Company does not assume any obligation to update or revise any forward-looking statement made in this press release or that may from time to time be made by or on behalf of the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250304948294/en/

Cross Country Healthcare, Inc. 
William J. Burns, 561-237-2555 
Executive Vice President & Chief Financial Officer 
wburns@crosscountry.com

Source: Cross Country Healthcare, Inc.