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Cross Country revenue falls 4%

November 07 2013

Cross Country Healthcare Inc. (NASD: CCRN) reported revenue from services fell 3.8 percent year over year to $108.0 million in the third quarter, below analysts’ consensus and missing guidance of $110 million to $112 million. However, improved pricing helped gross margins.

“I am pleased with our progress this quarter especially with regards to pricing and cost management which has led to improved profitability,” said President and CEO William J. Grubbs. “In addition, there are encouraging trends in our nursing position count and book to bill ratio that should help us get the company on a growth path in coming quarters.”

Revenue in the Boca Raton, Fla.-based firm’s largest segment, nurse and allied staffing, fell 3.3 percent year over year to $67.4 million.

Physician staffing third-quarter revenue fell 3.7 percent from the same quarter year prior to $31.5 million due to lower volume, partially offset by pricing improvement.

Cross Country’s “other human capital management” services revenue fell 7.2 percent year over year to $9.1 million in the third quarter. The segment includes retained search as well as education and training operations.

Third-quarter gross margin improved to 26.1 percent from 24.5 percent in the same quarter last year. The margin improvement was due to a combination of lower field insurance costs in Cross Country’s staffing businesses and continued expansion of the bill/pay spread in its nurse and allied staffing business segment.

Cross Country posted net income of $914,000 in the third quarter compared to a net loss of $17.6 million in the same period a year ago.

Cross Country Healthcare Inc. (NASD: CCRN)
For the third quarter ended Sept. 30, 2013, compared with the same period a year ago.
Revenue: $108.0 million, -3.8 percent
Net Income: $914,000 vs. net loss of $17.6 million

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