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Cross Country revenue falls

November 03 2008

Cross Country Healthcare Inc. (NASD: CCRN) reported a 4% decline in third-quarter revenue to $178.1 million compared with the same period a year ago. The Boca Raton FL-based healthcare staffing firm said nurse and allied healthcare staffing revenue fell as did clinical trials services revenue. On the other hand, physician temporary staffing revenue rose.

"The overall environment in which we operate deteriorated significantly," said President and CEO Joseph Boshart. "Demand, booking activity and volume in our travel nurse staffing business weakened, in large part, due to hospital clients being increasingly reluctant to commit to a contract nurse most often citing low patient census and budget reductions for their hesitation."

Third-quarter nurse and allied healthcare staffing revenue fell 12% to $128.9 million year over year, the company said. Clinical trials services revenue decreased 3% to $25.4 million. The company said its physician temporary staffing business grew year over year, and had revenue of $10.8 million. Cross Country acquired the physician business in its purchase of MDA Holdings Inc.; the deal closed in September.

Gross margin improved to 26.6% from 24.8% in the same period in the previous year.

Cross Country's net income, however, fell 12% to $6.2 million.

The company estimated fourth-quarter revenue of between $195 million and $199 million, and full-year 2008 revenue of between $723 million and $727 million.

Cross Country Healthcare Inc. (NASD: CCRN)
For the third quarter ended Sept. 30, 2008, compared with the same period in 2007.
Revenue: $178.1 million, -4%
Net income: $6.2 million, -12%

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