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View All NewsCross Country revenue falls 12% in Q3
Third-quarter revenue fell 12.2% at Cross Country Healthcare Inc. (NASD: CCRN). The Boca Raton, Fla.-based firm noted a further decline in premium-rate business and higher-than-anticipated healthcare costs.
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Revenue | $200,717 | $228,488 | -12.2% |
| Gross margin | 25.7% | 26.5% | |
| Net (loss) income attributable to common shareholders | ($441) | $6,723 | nm |
Revenue fell 12.0% in its “nurse and allied staffing” segment and 14.9% in physician staffing.
Revenue by segment
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Nurse and allied staffing | $176,344 | $200,492 | -12.0% |
| Physician staffing | $21,158 | $24,871 | -14.9% |
| Other human capital management services | $3,215 | $3,125 | 2.9% |
Quote
“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,” said President and CEO William Grubbs, who plans to retire at the end of March 2019. “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.”
Guidance
Cross Country forecasts fourth-quarter revenue will range from $195 million to $205 million, a decline of 7% to 11% compared to the fourth quarter of 2017.
Share price and market cap
Shares in Cross Country were down 0.11% to $9.46 at 1:13 p.m. Eastern time today; and the company had a market cap $343.7 million, according to FT.com.