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Cross Country revenue falls, new CFO coming

March 06 2014

Revenue at Cross Country Healthcare Inc. (NASD: CCRN) fell by 2.3 percent in the fourth quarter with declines in its physician staffing and “other human capital management services” segments. The Boca Raton, Fla.-based firm also named William Burns as its new CFO.

Burns had served as group vice president and corporate controller for Gartner Inc. since 2008. Prior to that he served as chief accounting officer for CA Technologies Inc.

Former CFO Emil Hensel will retire but will remain at Cross Country as a special advisor until June 3.

Cross Country posted revenue of $109.7 million in the fourth quarter, down from $111.7 million in the fourth quarter of the previous year.

Nurse and allied staffing revenue rose 0.5 percent in the fourth quarter to $71.2 million. In December, the company acquired the operating assets of On Assignment Inc.’s (NYSE: ASGN) allied healthcare staffing division.

Physician staffing fourth-quarter revenue fell 5.9 percent year over year to $28.9 million due to lower volume, partially offset by pricing improvement.

Cross Country’s other human capital management services revenue fell 11.1 percent year over year to $9.1 million in the fourth quarter. The segment includes retained search as well as education and training operations.

The company’s fourth-quarter gross margin improved to 26.2 percent from 25.0 percent in the same quarter last year.

Cross Country reported a net loss of $35.2 million in the fourth quarter compared to a net loss of $9.5 million in the fourth quarter of last year. Excluding acquisition costs, a noncash valuation allowance on deferred tax assets of $31.2 million and a noncash impairment charge of $6.4 million, net loss would be $200,000.

Shares fell 17.83 percent in early afternoon trading to $8.60 and Cross Country has a market cap of approximately $267.18 million, according to Yahoo!

Full-year revenue from services fell 1.0 percent to $438.3 million and the company reported a full-year net loss of $34.6 million compared to a net loss of $42.2 million in 2012.


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