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Medical Staffing Network revenue falls 27%

May 11 2010

Medical Staffing Network Holdings Inc. (OTCBB: MSNW.PK) announced first-quarter revenue fell 27.0% to $72.0 million from $98.6 million in the year-ago quarter.

The Boca Raton FL-based healthcare staffing firm reported nurse staffing revenue fell 28.4% in the first quarter to $60.9 million from $85.0 million in the same period last year. Nurse staffing includes per diem nursing, short-term contract and travel nursing.

Medical Staffing Network's allied health revenue fell 17.9% to $11.1 million in the first quarter.

The company's first-quarter gross margin was unchanged from the year-ago quarter at 24.9%.

Medical Staffing Network Holdings posted a net loss of $6.7 million compared with a net loss of $3.7 million in the same period last year. The company reported restructuring and other charges of $720,000 in the first quarter.

The company said last week it extended a forbearance agreement with its lenders. However, the company said it continues to discuss restructuring with lenders and may still file for Chapter 11 bankruptcy if a deal cannot be reached.

It also recently announced an escrow account to handle payments going through its vendor management system. The move came to calm vendors in the wake of other VMS operators that had run into financial difficulty, although Medical Staffing Network Holdings said it hasn't failed to make any payments to its VMS subcontractors because of financial challenges.

In April, the company said it hired Mohsin Meghji of Loughlin Meghji + Company, to serve as chief restructuring officer.

Medical Staffing Network Holdings Inc. (OTCBB: MSNW.PK)
For the first quarter ended March 28, 2010, compared with the same period in 2009.
Revenue: $72.0 million, -27.0%
Net loss: $6.7 million vs. net loss of $3.7 million

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