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View All NewsCross Country revenue up, but net loss increases
Cross Country Healthcare Inc. (NASD: CCRN) reported nurse and allied staffing revenue rose 25.8 percent in the second quarter, boosted by the December acquisition of the operating assets of On Assignment Inc.’s (NYSE: ASGN) allied healthcare staffing division.
However, second-quarter revenue in its physician staffing segment fell 11.4 percent, the result of a combination of lower average bill rates and lower volume, according to the company. Second-quarter revenue also fell 10.5 percent in its “other human capital management services,” which includes retained search and education and training business lines.
Overall revenue at the Boca Raton, Fla.-based healthcare staffing firm rose 10.7 percent in the second quarter to $122.7 million, within its forecast of $121 million to $124 million.
Gross margin increased to 26.4 percent from 25.1 percent in the year-ago quarter. Cross Country posted a net loss of $3.2 million compared to a net loss of $1.4 million in the second quarter of the previous year.
Cross Country Healthcare Inc. (NASD: CCRN) on June 30 completed its $48 million acquisition of Medical Staffing Network.
Quote
“I am pleased that the strong execution of our strategy, including positive trends in our managed service programs, produced good revenue and EBITDA growth in the quarter. Demand in our nurse and allied segment increased each month throughout the quarter and has continued through July,” said President and CEO William Grubbs “The integration of our Medical Staffing Network (MSN) acquisition is progressing well and we are on track to reach the $12 to $14 million of synergies targeted.”
Revenue
| Q2 2014 ($000s) | Q2 2013 ($000s) | % growth | |
| Revenue | $122,656 | $110,768 | 10.7% |
Revenue by segment
| Q2 2014 ($000s) | Q2 2013 ($000s) | % growth | |
| Nurse and allied staffing | $82,616 | $65,656 | 25.8% |
| Physician staffing | $30,849 | $34,837 | -11.4% |
| Other human capital management services | $9,191 | $10,275 | -10.5% |
Gross margin
| Q2 2014 | Q2 2013 | |
| Gross margin | 26.4% | 25.1% |
Net loss
| Q2 2014 ($000s) | Q2 2013 ($000s) | |
| Net loss | -$3,181 | -$1,435 |
Guidance
Cross Country anticipates third-quarter revenue of between $187 million to $192 million, a year-over-year increase of between 73 percent and 78 percent.
Share price and market cap
Shares in Cross Country were down 2.57 percent in late morning trading to $7.19. The company had a market cap of $223.67 million, according to Yahoo!