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Cross Country profit slips in fourth quarter

March 04 2008

Cross Country Healthcare Inc. (NASD: CCRN) reported a 3.2% decline in net income for the fourth quarter to $7.3 million from $7.5 million in the fourth quarter of 2006.

Fourth-quarter revenue, however, rose 3.4% to $181.7 million from $175.7 million in the same period in the previous year at the Boca Raton FL-based healthcare staffing firm. Gross margin improved to 25.7% from 23.5%.

Fourth-quarter gross margin got a boost from recent acquisitions in the clinical trials space, according to the company. In June, Cross Country announced the acquisition of Akos Ltd., a clinical trial services firm, and Assent Consulting in July 2007. Cross Country also acquired privately held Metropolitan Research Associates LLC and Metropolitan Research Staffing Associates LLC in July 2006; those firms also handled clinical trials services.

For full-year 2007, net income rose 47.8% to $24.6 million from $16.6 million in 2006. The company had a $4.2 million charge for a settlement of a lawsuit in 2006.

Revenue for 2007 rose 9.6% to $718.3 million from $655.2 million. Gross margin improved to 24.3% from 23.3%.

Cross Country gave revenue guidance for the first quarter of 2008 of between $175 million and $178 million.

Cross Country Healthcare Inc. (NASD: CCRN)
For the fourth quarter ended Dec. 31, 2007, compared with the same period in 2006.
Revenue: $181.7 million, +3.4%
Net income: $7.3 million, -3.2%

For full-year 2007 ended Dec. 31, 2007, compared with the same period in 2006.
Revenue: $718.3 million, +9.6%
Net income: $24.6 million, +47.8%

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