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Cross Country revenue up 4%, nurse and allied revenue up 6%

November 05, 2015

Revenue at Cross Country Healthcare Inc. (NASD: CCRN), the third-largest US healthcare staffing firm, rose 4% in the third quarter, and gross margin improved.

The Boca Raton, Fla.-based firm reported nurse and allied staffing revenue rose 6% while physician staffing revenue fell 3%.

Cross Country sold its education seminars business in August, resulting in a 19% decrease in revenue in its “other human capital management services.” However, search revenue, included in this business unit, rose 30%.

(US$ thousands) Q3 2015 Q3 2014 % growth
Revenue $195,692 $188,944 3.6%
Gross margin 26.3% 25.0%  
Net income/loss $5,009 -$7,602 nm

Quote

“This was another strong quarter for Cross Country Healthcare,” President and CEO William Grubbs said. “We not only exceeded our guidance but we achieved our targeted fourth quarter goal for a 5.0% Adjusted EBITDA margin one quarter ahead of schedule. Our revenue growth, pricing improvement and cost optimization initiatives are all on track and contributed to these results. The favorable market conditions along with the addition of our recently announced acquisition of Mediscan should further enhance our results.”

Revenue by segment

(US$ thousands) Q3 2015 Q3 2014 % growth
Nurse and allied staffing $157,338 $147,851 6.4%
Physician staffing $30,959 $31,953 -3.1%
Other human capital management services $7,395 $9,140 -19.1%

Guidance

Cross Country reports fourth-quarter revenue should be up 3% to 5% on a year-over-year basis, and fourth-quarter gross margin should be in the 25.5% to 26.0% range.

Share price and market cap

Shares in Cross Country rose 15.44% in early afternoon trading to $15.78. The company had a market cap of $514.25 million, according to Yahoo!