Daily News
View All NewsQ2 revenue up 4% at Cross Country, posts net loss
Second-quarter revenue at Cross Country Healthcare Inc. (NASD: CCRN) rose 3.5%, but was below guidance. The Boca Raton, Fla.-based healthcare staffing firm posted a net loss of $17.2 million because of a noncash impairment charge of $24.3 million related to physician staffing, a loss on derivative liability and loss on extinguishment of debt.
Gross margin improved to 27.5% from 25.1% in the year-ago quarter.
| (US$ thousands) | Q2 2016 | Q2 2015 | % change |
| Revenue | $199,443 | $192,617 | 3.5% |
| Gross margin | 27.5% | 25.1% | |
| Net income | -$17,237 | $2,573 | nm |
Quote
“For the second quarter this year, we again exceeded guidance for gross profit and adjusted EBITDA margins driven by strong pricing and leverage from revenue growth,” President and CEO William Grubbs said. “The market remains robust and supports our initiatives aimed at accelerating revenue growth as we progress throughout the year.”
Revenue by segment
| (US$ thousands) | Q2 2016 | Q2 2015 | % change |
| Nurse and allied staffing | $172,048 | $152,677 | 12.7% |
| Physician staffing | $23,927 | $29,794 | -19.7% |
| Other human capital management services | $3,468 | $10,146 | -65.8% |
Guidance
Cross Country forecast third-quarter revenue of between $200 million and $205 million, a year-over-year increase of between 2% and 5%.
Share price and market cap
Shares in Cross Country fell 13.74% to $12.74 in early afternoon trading. The company had a market cap of $417.44 million, according to Yahoo.