Cross Country revenue up 8% on pro forma basis in Q4

Fourth-quarter revenue at Cross Country Healthcare Inc. (NASD: CCRN), the fourth-largest US healthcare staffing firm, rose 8.4% year over year on a pro forma basis, which includes results from recently acquired firms as if they had been in place during the previous year’s quarter. Cross Country acquired Medical Staffing Network in the second quarter of 2014.

On a non-pro forma basis, revenue rose 72.3%. President and CEO Bill Grubbs cited strong results in the company’s nurse and allied segment.

Cross Country posted a fourth-quarter net loss of $20.2 million, compared to a net loss of $52.6 million in the fourth quarter of 2013. The most recent quarter included noncash impairment charge of $10.1 million related to the Physician Staffing trade names. The charge was $6.4 million in the fourth quarter of 2013. The fourth quarter of 2014 also includes $2.5 million in integration and acquisition for the June 30, 2014, acquisition of Medical Staffing Network.

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“This strong performance was primarily due to strong results from our nurse and allied segment, which had pro forma year-over-year revenue growth in the quarter of 11.4%,” said President and CEO Bill Grubbs in a conference call with analysts. “Our other human capital segment also contributed to this growth with 14.5% year-over-year revenue growth, significantly up from the third quarter. However, this growth was partially offset by continued weak performance in our physician staffing segment.”

Grubbs continued, “For the fourth quarter, in our nurse and allied staffing segments, which represented 78% of our total revenue, we saw strong demand for our services, as well as growth in the number of healthcare professionals on assignment. Throughout the quarter and now at the end of February, our nurse and allied orders remain near historic highs. In order to respond to this demand, we’ve continued to hire additional recruiters and make incremental investments in candidate attraction.”