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US – Cross Country Q4 revenue up 2.5%, margin narrows

March 19 2013

Cross Country Healthcare Inc. (NASD: CCRN) reported fourth-quarter revenue rose 2.5 percent on a year-over-year basis to $111.7 million. However, gross margin narrowed to 25.0 percent from 27.7 percent in the year-ago quarter.

Revenue rose in the Boca Raton, Fla.-based firm’s nurse and allied staffing segment as well as its physician staffing segment. However, revenue fell in its “other human capital management services” segment.

  • Nurse and allied staffing revenue rose 1 percent to $70.9 million in the fourth quarter thanks to higher bill rates, the firm reported.
  • Physician staffing revenue rose 10 percent to $30.7 million in the fourth quarter. The company cited higher bill rates for most specialties.
  • Revenue in Cross Country’s “other human capital management services” segment fell 5 percent to $10.2 million. The decrease “was primarily due to lower seminar attendance in the education and training business partially offset by higher retainer revenue and placement fees in the physician and healthcare executive search business...," the company reported.

Cross Country’s historical revenue in its fourth quarter 2012 press release have been adjusted to show its clinical trial services segment as a discontinued operation. The company sold the segment in February for $52.0 million plus an earn-out of up to $3.75 million.

The company posted a net loss of $9.5 million in the fourth quarter compared to net income of $532,000 in the same period a year ago. The loss includes a noncash goodwill impairment charge of 24 cents per diluted share related to the clinical trials business.

Cross Country Healthcare Inc. (NASD: CCRN)
 For the quarter ended Dec. 31, 2012, compared with the year-ago period.
 Revenue: $111.7 million, +2.5 percent
 Net loss: $9.5 million vs. net income of $532,000

For the year ended Dec. 31, 2012, compared with the previous year.
 Revenue: $442.6 million, +0.7 percent
 Net loss: $42.2 million vs. net income of $4.1 million

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