Daily News
View All NewsFourth-quarter revenue falls 1% at Cross Country Healthcare
Fourth-quarter revenue at Cross Country Healthcare Inc. (NASD: CCRN) edged down 1.3%. The Boca Raton, Fla.-based healthcare staffing provider reported weaker-than-expected results in the period, primarily in its nurse and allied staffing business with fewer overall placements and a lower renewal rate. Cross Country said it also had a higher-than-expected reduction in premium-rate business, as well as greater disruptive effects from Hurricane Irma on fourth-quarter placements.
Net income attributable to common shareholders was affected by noncash items including nonrecurring net income tax benefits of $34.5 million, partly offset by physician staffing impairment charges of $14.4 million.
| (US$ thousands) | Q4 2017 | Q4 2016 | % change |
| Revenue | $219,674 | $222,523 | -1.3% |
| Gross margin | 26.5% | 25.9% | |
| Net income/loss attributable to common shareholders | $27,950 | ($7,884) | nm |
Physician Staffing revenue fell due to changes in mix, according to the company.
Revenue by segment
| (US$ thousands) | Q4 2017 | Q4 2016 | % change |
| Nurse and allied staffing | $193,740 | $194,050 | -0.2% |
| Physician staffing | $22,555 | $24,813 | -9.1% |
| Other human capital management services | $3,379 | $3,660 | -7.7% |
Last month, the company appointed former Executive VP and CFO William Burns to role of chief operating officer and named former Corporate Controller Christopher Pizzi senior VP and CFO. Other organizational changes included splitting its legacy nurse and allied business into two divisions: travel nurse and allied; and branch operations.
Quote
“Cross Country has experienced tremendous growth over the last four years and we expect to see growth continue as we progress into 2018, led by our high growth, high margin education healthcare staffing business,” said CEO William Grubbs. “While we expect near-term pressures on top-line growth to dissipate, management has also moved decisively to focus attention on improving costs and operational excellence.”
Full-year results
| (US$ thousands) | FY 2017 | FY 2016 | % change |
| Revenue | $865,048 | $833,537 | 3.8% |
| Gross margin | 26.4% | 26.6% | |
| Net income/loss attributable to common shareholders | $37,513 | $7,967 | nm |
Guidance
Cross Country forecasts first-quarter revenue will range from a decline of 1% to an increase of 1%.
Share price and market cap
Shares in Cross Country fell 19.38% to $10.44 as of 12:00 p.m. Eastern time today. The company had a market cap of $380.86 million.