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Cross Country Healthcare Inc. (NASD: CCRN) Monday revised its unaudited fourth-quarter and full-year 2013 financial results. An adjustment increased the fourth-quarter net loss to $52.6 million from $35.2 million; the full-year net loss increased to $52.0 million from $34.6 million.
The adjustment reflects an increase of $17.4 million in the non-cash valuation allowance on deferred tax assets. When calculating the non-cash valuation allowance on deferred tax assets, deferred tax liabilities related to indefinite-lived intangible assets (such as goodwill) were incorrectly netted against the deferred tax assets.
“In light of this accounting adjustment, management has concluded that a material weakness existed in the controls related to the company’s oversight and review of non-cash, non-routine estimates and that, as a result, internal control over financial reporting and disclosure controls and procedures were not effective,” the company said in a press release. “Management is undertaking steps to remediate the material weakness, including the development of enhanced procedures and processes. Management believes in the future these additional control procedures will, when fully implemented, remediate this material weakness.”
Cross Country previously reported revenue fell by 2.3 percent to $109.7 million in the fourth quarter.