Daily NewsView All News
Medical Staffing Network Holdings Inc. (NYSE: MRN) reported a 12.2% year-over-year decline in third-quarter revenue to $135.8 million, and said the economy's woes are hitting the healthcare industry.
"The healthcare industry is facing significant challenges due in large part to the current economic conditions," said Chairman and CEO Robert Adamson. "Hospitals are experiencing unprecedented low census levels in several states resulting in softer demand for our services, particularly in Florida and California. However, the lower levels of demand are regionalized, and there are areas of the country in which demand remains strong, such as in the Pacific Northwest."
The Boca Raton FL-based healthcare staffing firm said its per diem branches are focusing on increasing the amount of "local contracts" assignments of more than two weeks staffed by the per diem branches. Local contracts accounted for 25% of the per diem division's third-quarter revenue, the company said.
Medical Staffing Network Holdings said gross margin improved to 25.3% from 23.9% because of a bill rate and margin expansion initiative.
The company posted third-quarter net income of $2.5 million which compared with a net loss of $1.7 million for the same period last year. The third quarter of 2007 included a $3.0 million restructuring charge, a $1.9 million non-cash goodwill impairment and a loss on early extinguishment of debt of $300,000.
Medical Staffing Network Holdings Inc. (NYSE: MRN)
For the third quarter ended Sept. 28, 2008, compared with the same period in 2007.
Revenue: $135.8 million, -12.2%
Net income: $2.5 million vs. net loss of $1.7 million