Revenue at Cross Country Healthcare Inc. (NASD: CCRN), the third-largest US healthcare staffing firm, rose 5.7% in the first quarter to $196.6 million, within guidance provided with its fourth-quarter report. On a pro forma basis, first-quarter revenue rose 3% year over year.

The Boca Raton, Fla.-based firm reported nurse and allied staffing revenue rose 13.2%, attributable to improved pricing and the impact of its $33 million acquisition of Mediscan in October. However, physician staffing revenue fell 10.6%, entirely due to a decrease in volume.

Revenue from Cross Country’s “other human capital management services” segment fell 64.6%, primarily the result of the sale of its education seminars business in August. Revenue from the physician and executive search business fell 13% year over year.

Quote

“I am pleased with how 2016 has started,” said President and CEO William Grubbs. “Revenue growth was in line with expectations and we exceeded our guidance for gross profit margin, adjusted EBITDA margin and adjusted EPS. Overall, we had a solid start to the year that keeps us on track for our full-year guidance as well as our adjusted EBITDA targets of 8% by the fourth quarter of 2017 and 10% by the fourth quarter of 2019.”

Revenue by segment

Guidance

Cross Country expects second-quarter revenue to range between $200 million and $205 million, up 4% to 6% on a year-over-year basis, and second-quarter gross margin of 26.3% to 26.8%.

Share price and market cap

Shares in Cross Country Healthcare rose 8.33% in early afternoon trading to $13.14. The company had a market cap of $430.54 million, according to Yahoo!