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View All NewsCross Country Q4 revenue up 15% on nurse and allied staffing
Fourth-quarter revenue at Cross Country Healthcare Inc. (NASD: CCRN) rose 15.2% to $222.5 million. Nurse and allied staffing provided the growth, with revenue up 19.7% in that segment. Growth in the segment came predominantly from organic growth and improved pricing and, to a lesser extent, the impact of the Mediscan acquisition in 2015.
Consolidated gross profit margin slipped to 25.9% from 26.1% in the year-ago quarter as a result of increased healthcare and workers’ compensation costs.
| (US$ thousands) | Q4 2016 | Q4 2015 | % change |
| Revenue from services | $222,523 | $193,148 | 15.2% |
| Gross margin | 25.9% | 26.1% | |
| Net loss attributable to common shareholders | -$7,884 | -$6,098 | nm |
Fourth-quarter revenue fell in both the company’s physician staffing and other human capital management services divisions. Cross Country reported the decrease in physician staffing was primarily due to a decrease in volume.
Net loss increased to $7.6 million from $5.9 million. The fourth quarter included a loss on the derivative liability of $14.2 million compared to a $9.5 million loss in the prior year.
Quote
“This quarter we grew revenue faster than anticipated due to strong demand from new and existing customers,” said President and CEO William Grubbs. “In addition, were it not for higher healthcare and workers’ compensation experience related to the fourth quarter, we would have exceeded our guidance for Adjusted EBITDA.”
Revenue by segment
| (US$ thousands) | Q4 2016 | Q4 2015 | % change |
| Nurse and allied staffing | $194,050 | $162,131 | 19.7% |
| Physician staffing | $24,813 | $27,236 | -8.9% |
| Other human capital management services | $3,660 | $3,781 | -3.2% |
Full-year results
| (US$ thousands) | FY 2016 | FY 2015 | % growth |
| Revenue | $833,537 | $767,421 | 8.6% |
| Gross margin | 26.6% | 25.7% | |
| Net loss attributable to common shareholders | $7,967 | $4,418 | 80.3% |
Guidance
Cross Country forecasts first-quarter revenue of between $209 million and $214 million, a year-over-year increase of between 6% and 9%.
Share price and market cap
Shares in Cross Country fell 4.90% to $15.06 in early afternoon trading today. The company had a market cap of $497.27 million, according to Yahoo.