Healthcare Staffing Report: Aug. 8, 2013

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Cross Country revenue up 2% on strong physician staffing segment

Cross Country Healthcare Inc. (NASD: CCRN) reported revenue from services rose 1.8 percent year over year to $110.8 million in the second quarter, bolstered by a strong performance from its physician staffing business segment. However, revenue in the company’s largest segment, nurse and allied staffing, was essentially flat.

The Boca Raton, Fla.-based firm also announced it has initiated a restructuring program to reduce operating costs and recorded a $375,000 restructuring charge, primarily related to senior management employee severance pay.

Additionally, Cross Country agreed in principle to settle a wage-and-hour class-action lawsuit in California for $750,000, subject to a final binding agreement and approval by the court.

Physician staffing second-quarter revenue rose 6.5 percent compared to the same quarter last year to $33.0 million, driven by a combination of price and volume.

Nurse and allied staffing revenue edged down 0.1 percent to $67.5 million in the second quarter due to a softer demand environment.

Cross Country’s “other human capital management” services revenue slipped 0.2 percent year over year to $10.3 million in the second quarter. The segment includes retained search as well as education and training operations.

The company’s second-quarter gross margin improved to 25.1 percent from 24.9 percent in the same quarter last year.

Cross Country posted a net loss of almost $1.5 million in the second quarter compared to a net loss of about $14.5 million in the same period a year ago.

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