Cross Country Healthcare Announces Fourth Quarter and Full Year 2022 Financial Results
SELECTED FINANCIAL INFORMATION:
Dollars are in thousands, except per share amounts |
Q4 2022 |
Variance |
Variance |
Full Year 2022 |
Variance |
|||||||||||||||
Revenue |
$ |
628,218 |
|
|
(2 |
) |
% |
|
(1 |
) |
% |
$ |
2,806,609 |
|
|
67 |
% |
|||
Gross profit margin* |
|
22.1 |
% |
|
(90 |
) |
bps |
|
(50 |
) |
bps |
|
22.4 |
% |
|
— |
bps |
|||
Net income attributable to common stockholders |
$ |
38,791 |
|
|
(50 |
) |
% |
|
11 |
|
% |
$ |
188,461 |
|
|
43 |
% |
|||
Diluted EPS |
$ |
1.05 |
|
$ |
(1.02 |
) |
|
$ |
0.12 |
|
|
$ |
5.02 |
|
$ |
1.49 |
|
|||
Adjusted EBITDA* |
$ |
57,026 |
|
|
(30 |
) |
% |
|
(11 |
) |
% |
$ |
301,716 |
|
|
86 |
% |
|||
Adjusted EBITDA margin* |
|
9.1 |
% |
|
(350 |
) |
bps |
|
(90 |
) |
bps |
|
10.8 |
% |
|
110 |
bps |
|||
Adjusted EPS* |
$ |
1.09 |
|
$ |
(0.31 |
) |
|
$ |
0.02 |
|
|
$ |
5.27 |
|
$ |
2.21 |
|
|||
Cash flows from operations |
$ |
4,320 |
|
|
106 |
|
% |
|
(97 |
) |
% |
$ |
134,050 |
|
257 |
% |
||||
* Refer to accompanying tables and discussion of non-GAAP (Generally Accepted Accounting Principles) financial measures below. |
Business Highlights
- Double-digit year-over-year annual revenue growth across all segments
- Launched our proprietary vendor management system IntellifyTM
- Strengthened our position in the talent management landscape through the December HireUp acquisition
- Expanded our locum tenens portfolio through the Mint and Lotus acquisitions
- Repurchased 1.4 million shares of common stock for
$35.3 million in 2022 $100 million total optional prepayments on the term loan reducing the balance 58% year over year- Hosted our first Investor Day in the third quarter of 2022
- Added two independent directors with deep technology and healthcare expertise to the Board
“We are extremely proud of all we accomplished in 2022, from achieving our highest annual revenue and profitability in Company history to transforming Cross Country into a digitally innovative enterprise with comprehensive workforce solutions and an unwavering commitment to clinical excellence,” said
Fourth quarter consolidated revenue was
For the year ended
Quarterly Business Segment Highlights
Nurse and
Revenue was
Revenue was
Cash Flow and Balance Sheet Highlights
Cash flow provided by operations for the quarter was
During the fourth quarter, the Company repurchased and retired a total of 0.4 million shares of the Company's common stock for an aggregate price of
On
At
Outlook for First Quarter 2023
The guidance below applies only to management’s expectations for the first quarter of 2023.
|
Q1 2023 Range |
|
Year-over-Year |
|
Sequential |
Change |
|
Change |
|||
|
|
|
|
|
|
Revenue |
|
|
(25)% - (24)% |
|
(6)% - (4)% |
|
|
|
|
|
|
Adjusted EBITDA* |
|
|
(55)% - (50)% |
|
(23)% - (14)% |
|
|
|
|
|
|
Adjusted EPS* |
|
|
|
|
|
* Refer to discussion of non-GAAP financial measures below.
The above estimates are based on current management expectations and, as such, are forward-looking and actual results may differ materially. The above ranges do not include the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases. We reaffirm our 2023 annual targets of a minimum
See accompanying non-GAAP financial measures and tables below.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on
ABOUT
Copies of this and other press releases, as well as additional information about the Company, can be accessed online at ir.crosscountryhealthcare.com. Stockholders and prospective investors can also register to automatically receive the Company's press releases, filings with the
NON-GAAP FINANCIAL MEASURES
This press release and the accompanying financial statement tables reference non-GAAP financial measures, such as gross profit margin, adjusted EBITDA, and adjusted EPS. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for, or superior to, financial measures calculated in accordance with
In addition, forward-looking adjusted EBITDA and adjusted EPS for fiscal 2023 exclude potential charges or gains that may be recorded during the fiscal year, including among other things, the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases. We have not attempted to provide reconciliations of such forward-looking non-GAAP earnings guidance to the comparable GAAP measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of our financial performance.
FORWARD LOOKING STATEMENTS
In addition to historical information, this press release contains statements relating to our future results (including certain projections and business trends) that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995, and are subject to the "safe harbor" created by those sections. Forward-looking statements consist of statements that are predictive in nature, depend upon or refer to future events. Words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", "suggests", "appears", "seeks", "will", "could", and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from any future results or performance expressed or implied by these forward-looking statements. These factors include, but are not limited to, the following: the overall macroeconomic environment, including increased inflation and interest rates, demand for the healthcare services we provide, both nationally and in the regions in which we operate, the ongoing impacts of the coronavirus pandemic on our business, financial condition, and results of operations, our ability to attract and retain qualified nurses, physicians and other healthcare personnel, costs and availability of short-term housing for our travel healthcare professionals, the functioning of our information systems, the effect of cyber security risks and cyber incidents on our business, the effect of existing or future government regulation and federal and state legislative and enforcement initiatives on our business, our customers' ability to pay us for our services, our ability to successfully implement our acquisition and development strategies, including our ability to successfully integrate acquired businesses and realize synergies from such acquisitions, the effect of liabilities and other claims asserted against us, the effect of competition in the markets we serve, our ability to successfully defend the Company, its subsidiaries, and its officers and directors on the merits of any lawsuit or determine its potential liability, if any, and other factors, including, without limitation, the risk factors set forth in Item 1A. "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended
Although we believe that these statements are based upon reasonable assumptions, we cannot guarantee future results and readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this press release. There can be no assurance that (i) we have correctly measured or identified all of the factors affecting our business or the extent of these factors' likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct, or (iv) our strategy, which is based in part on this analysis, will be successful. Except as may be required by law, the Company undertakes no obligation to update or revise forward-looking statements. All references to "the Company", "we", "us", "our", or "Cross Country" in this press release mean
|
|||||||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||||||
(Unaudited, amounts in thousands, except per share data) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
2021 |
||||||||||
|
|
|
|
||||||||||||||||
Revenue from services |
$ |
628,218 |
|
|
$ |
640,679 |
|
|
$ |
636,098 |
|
|
$ |
2,806,609 |
|
|
$ |
1,676,652 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Direct operating expenses |
|
489,276 |
|
|
|
493,529 |
|
|
|
492,553 |
|
|
|
2,178,923 |
|
|
|
1,301,653 |
|
Selling, general and administrative expenses |
|
81,171 |
|
|
|
65,774 |
|
|
|
80,216 |
|
|
|
324,209 |
|
|
|
215,292 |
|
Bad debt expense |
|
2,947 |
|
|
|
2,372 |
|
|
|
1,101 |
|
|
|
9,609 |
|
|
|
4,783 |
|
Depreciation and amortization |
|
3,162 |
|
|
|
2,720 |
|
|
|
3,214 |
|
|
|
12,576 |
|
|
|
9,852 |
|
Acquisition and integration-related costs |
|
196 |
|
|
|
83 |
|
|
|
490 |
|
|
|
726 |
|
|
|
1,068 |
|
Restructuring costs |
|
2 |
|
|
|
239 |
|
|
|
2,493 |
|
|
|
1,861 |
|
|
|
2,630 |
|
Impairment charges |
|
— |
|
|
|
— |
|
|
|
3,856 |
|
|
|
5,597 |
|
|
|
2,070 |
|
Total operating expenses |
|
576,754 |
|
|
|
564,717 |
|
|
|
583,923 |
|
|
|
2,533,501 |
|
|
|
1,537,348 |
|
Income from operations |
|
51,464 |
|
|
|
75,962 |
|
|
|
52,175 |
|
|
|
273,108 |
|
|
|
139,304 |
|
Other expenses (income): |
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
3,515 |
|
|
|
2,817 |
|
|
|
3,498 |
|
|
|
14,391 |
|
|
|
6,866 |
|
Loss on early extinguishment of debt |
|
1,816 |
|
|
|
— |
|
|
|
— |
|
|
|
3,728 |
|
|
|
— |
|
Other income, net |
|
(217 |
) |
|
|
(154 |
) |
|
|
(27 |
) |
|
|
(1,336 |
) |
|
|
(770 |
) |
Income before income taxes |
|
46,350 |
|
|
|
73,299 |
|
|
|
48,704 |
|
|
|
256,325 |
|
|
|
133,208 |
|
Income tax expense (benefit) |
|
7,559 |
|
|
|
(4,274 |
) |
|
|
13,911 |
|
|
|
67,864 |
|
|
|
1,206 |
|
Net income attributable to common stockholders |
$ |
38,791 |
|
|
$ |
77,573 |
|
|
$ |
34,793 |
|
|
$ |
188,461 |
|
|
$ |
132,002 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to common stockholders - Basic |
$ |
1.06 |
|
|
$ |
2.10 |
|
|
$ |
0.94 |
|
|
$ |
5.09 |
|
|
$ |
3.60 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to common stockholders - Diluted |
$ |
1.05 |
|
|
$ |
2.07 |
|
|
$ |
0.93 |
|
|
$ |
5.02 |
|
|
$ |
3.53 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
36,455 |
|
|
|
36,974 |
|
|
|
37,101 |
|
|
|
37,012 |
|
|
|
36,689 |
|
Diluted |
|
36,926 |
|
|
|
37,736 |
|
|
|
37,492 |
|
|
|
37,536 |
|
|
37,392 |
|
|||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
(Unaudited, amounts in thousands) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2022 |
|
2021 |
||||||||||
Adjusted EBITDA:a |
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders |
$ |
38,791 |
|
|
$ |
77,573 |
|
|
$ |
34,793 |
|
|
$ |
188,461 |
|
|
$ |
132,002 |
|
Interest expense |
|
3,515 |
|
|
|
2,817 |
|
|
|
3,498 |
|
|
|
14,391 |
|
|
|
6,866 |
|
Income tax expense (benefit)b |
|
7,559 |
|
|
|
(4,274 |
) |
|
|
13,911 |
|
|
|
67,864 |
|
|
|
1,206 |
|
Depreciation and amortization |
|
3,162 |
|
|
|
2,720 |
|
|
|
3,214 |
|
|
|
12,576 |
|
|
|
9,852 |
|
Acquisition and integration-related costsc |
|
196 |
|
|
|
83 |
|
|
|
490 |
|
|
|
726 |
|
|
|
1,068 |
|
Restructuring costsd |
|
2 |
|
|
|
239 |
|
|
|
2,493 |
|
|
|
1,861 |
|
|
|
2,630 |
|
Legal settlements and feese |
|
— |
|
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,141 |
) |
Impairment chargesf |
|
— |
|
|
|
— |
|
|
|
3,856 |
|
|
|
5,597 |
|
|
|
2,070 |
|
Loss on disposal of fixed assets |
|
19 |
|
|
|
159 |
|
|
|
— |
|
|
|
44 |
|
|
|
219 |
|
Loss on early extinguishment of debtg |
|
1,816 |
|
|
|
— |
|
|
|
— |
|
|
|
3,728 |
|
|
|
— |
|
Gain on lease terminationh |
|
(231 |
) |
|
|
(308 |
) |
|
|
(9 |
) |
|
|
(1,325 |
) |
|
|
(542 |
) |
Other income, net |
|
(4 |
) |
|
|
(5 |
) |
|
|
(19 |
) |
|
|
(55 |
) |
|
|
(447 |
) |
Equity compensation |
|
2,187 |
|
|
|
1,637 |
|
|
|
1,491 |
|
|
|
7,393 |
|
|
|
6,894 |
|
Applicant tracking system costsi |
|
14 |
|
|
|
280 |
|
|
|
74 |
|
|
|
455 |
|
|
|
1,376 |
|
Adjusted EBITDAa |
$ |
57,026 |
|
|
$ |
80,933 |
|
|
$ |
63,792 |
|
|
$ |
301,716 |
|
|
$ |
162,053 |
|
Adjusted EBITDA margina |
|
9.1 |
% |
|
|
12.6 |
% |
|
|
10.0 |
% |
|
|
10.8 |
% |
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EPS:j |
|
|
|
|
|
|
|
|
|
||||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to common stockholders |
$ |
38,791 |
|
|
$ |
77,573 |
|
|
$ |
34,793 |
|
|
$ |
188,461 |
|
|
$ |
132,002 |
|
Non-GAAP adjustments - pretax: |
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and integration-related costsc |
|
196 |
|
|
|
83 |
|
|
|
490 |
|
|
|
726 |
|
|
|
1,068 |
|
Restructuring costsd |
|
2 |
|
|
|
239 |
|
|
|
2,493 |
|
|
|
1,861 |
|
|
|
2,630 |
|
Legal settlements and feese |
|
— |
|
|
|
12 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,141 |
) |
Impairment chargesf |
|
— |
|
|
|
— |
|
|
|
3,856 |
|
|
|
5,597 |
|
|
|
2,070 |
|
Applicant tracking system costsi |
|
14 |
|
|
|
280 |
|
|
|
74 |
|
|
|
455 |
|
|
|
1,376 |
|
Loss on early extinguishment of debtg |
|
1,816 |
|
|
|
— |
|
|
|
— |
|
|
|
3,728 |
|
|
|
— |
|
Nonrecurring income tax adjustmentsk |
|
— |
|
|
|
(25,188 |
) |
|
|
— |
|
|
|
— |
|
|
|
(23,246 |
) |
Tax impact of non-GAAP adjustments |
|
(519 |
) |
|
|
(158 |
) |
|
|
(1,802 |
) |
|
|
(3,198 |
) |
|
|
(172 |
) |
Adjusted net income attributable to common stockholders - non-GAAP |
$ |
40,300 |
|
|
$ |
52,841 |
|
|
$ |
39,904 |
|
|
$ |
197,630 |
|
|
$ |
114,587 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Denominator: |
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares - basic, GAAP |
|
36,455 |
|
|
|
36,974 |
|
|
|
37,101 |
|
|
|
37,012 |
|
|
|
36,689 |
|
Dilutive impact of share-based payments |
|
471 |
|
|
|
762 |
|
|
|
391 |
|
|
|
524 |
|
|
|
703 |
|
Adjusted weighted average common shares - diluted, non-GAAP |
|
36,926 |
|
|
|
37,736 |
|
|
|
37,492 |
|
|
|
37,536 |
|
|
|
37,392 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation: |
|
|
|
|
|
|
|
|
|
||||||||||
Diluted EPS, GAAP |
$ |
1.05 |
|
|
$ |
2.07 |
|
|
$ |
0.93 |
|
|
$ |
5.02 |
|
|
$ |
3.53 |
|
Non-GAAP adjustments - pretax: |
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition and integration-related costsc |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.03 |
|
Restructuring costsd |
|
— |
|
|
|
— |
|
|
|
0.07 |
|
|
|
0.05 |
|
|
|
0.06 |
|
Legal settlements and feese |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
Impairment chargesf |
|
— |
|
|
|
— |
|
|
|
0.10 |
|
|
|
0.15 |
|
|
|
0.05 |
|
Applicant tracking system costsi |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.03 |
|
Loss on early extinguishment of debtg |
|
0.05 |
|
|
|
— |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
Nonrecurring income tax adjustmentsk |
|
— |
|
|
|
(0.67 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.62 |
) |
Tax impact of non-GAAP adjustments |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
(0.08 |
) |
|
|
— |
|
Adjusted EPS, non-GAAPj |
$ |
1.09 |
|
|
$ |
1.40 |
|
|
$ |
1.07 |
|
|
$ |
5.27 |
|
|
$ |
3.06 |
|
|
|||||||
Consolidated Balance Sheets |
|||||||
(Unaudited, amounts in thousands) |
|||||||
|
|||||||
|
|
|
|
||||
|
2022 |
|
2021 |
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
3,604 |
|
|
$ |
1,036 |
|
Accounts receivable, net |
|
641,611 |
|
|
|
493,910 |
|
Income taxes receivable |
|
10,915 |
|
|
|
— |
|
Prepaid expenses |
|
11,067 |
|
|
|
7,648 |
|
Insurance recovery receivable |
|
7,434 |
|
|
|
5,041 |
|
Other current assets |
|
1,042 |
|
|
|
638 |
|
Total current assets |
|
675,673 |
|
|
|
508,273 |
|
Property and equipment, net |
|
19,662 |
|
|
|
15,833 |
|
Operating lease right-of-use assets |
|
3,254 |
|
|
|
7,488 |
|
|
|
163,268 |
|
|
|
119,490 |
|
Other intangible assets, net |
|
44,723 |
|
|
|
48,244 |
|
Non-current deferred tax assets |
|
7,092 |
|
|
|
11,525 |
|
Non-current insurance recovery receivable |
|
23,058 |
|
|
|
13,998 |
|
Other non-current assets |
|
11,109 |
|
|
|
7,958 |
|
Total assets |
$ |
947,839 |
|
|
$ |
732,809 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
185,507 |
|
|
$ |
109,753 |
|
Accrued compensation and benefits |
|
72,605 |
|
|
|
65,580 |
|
Current portion of debt |
|
— |
|
|
|
4,176 |
|
Operating lease liabilities - current |
|
4,132 |
|
|
|
4,090 |
|
Income tax payable |
|
20 |
|
|
|
7,307 |
|
Current portion of earnout liability |
|
7,500 |
|
|
|
7,500 |
|
Other current liabilities |
|
1,876 |
|
|
|
1,364 |
|
Total current liabilities |
|
271,640 |
|
|
|
199,770 |
|
Non-current debt, less current portion |
|
148,735 |
|
|
|
176,366 |
|
Operating lease liabilities - non-current |
|
4,880 |
|
|
|
10,853 |
|
Non-current accrued claims |
|
35,881 |
|
|
|
25,314 |
|
Non-current earnout liability |
|
18,000 |
|
|
|
9,000 |
|
Uncertain tax positions - non-current |
|
7,646 |
|
|
|
8,994 |
|
Other non-current liabilities |
|
3,838 |
|
|
|
4,984 |
|
Total liabilities |
|
490,620 |
|
|
|
435,281 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
292,876 |
|
|
|
321,552 |
|
Accumulated other comprehensive loss |
|
(1,387 |
) |
|
|
(1,293 |
) |
Retained earnings (accumulated deficit) |
|
165,726 |
|
|
|
(22,735 |
) |
Total stockholders' equity |
|
457,219 |
|
|
|
297,528 |
|
Total liabilities and stockholders' equity |
$ |
947,839 |
|
|
$ |
732,809 |
|
|
||||||||||||||||||||
Segment Datal |
||||||||||||||||||||
(Unaudited, amounts in thousands) |
||||||||||||||||||||
|
||||||||||||||||||||
|
Three Months Ended |
|
Year-over |
|
Sequential |
|||||||||||||||
|
|
% of |
|
|
% of |
|
|
% of |
|
% change |
|
% change |
||||||||
|
2022 |
Total |
|
2021 |
Total |
|
2022 |
Total |
|
Fav (Unfav) |
|
Fav (Unfav) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue from services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nurse and |
$ |
591,090 |
94 |
% |
|
$ |
620,446 |
97 |
% |
|
$ |
612,270 |
96 |
% |
|
(5 |
)% |
|
(3 |
)% |
|
|
37,128 |
6 |
% |
|
|
20,233 |
3 |
% |
|
|
23,828 |
4 |
% |
|
84 |
% |
|
56 |
% |
|
$ |
628,218 |
100 |
% |
|
$ |
640,679 |
100 |
% |
|
$ |
636,098 |
100 |
% |
|
(2 |
)% |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Contribution income:m |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nurse and |
$ |
69,941 |
|
|
$ |
92,392 |
|
|
$ |
77,838 |
|
|
(24 |
)% |
|
(10 |
)% |
|||
|
|
1,686 |
|
|
|
1,428 |
|
|
|
837 |
|
|
18 |
% |
|
101 |
% |
|||
|
|
71,627 |
|
|
|
93,820 |
|
|
|
78,675 |
|
|
(24 |
)% |
|
(9 |
)% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate overheadn |
|
16,803 |
|
|
|
14,816 |
|
|
|
16,447 |
|
|
(13 |
)% |
|
(2 |
)% |
|||
Depreciation and amortization |
|
3,162 |
|
|
|
2,720 |
|
|
|
3,214 |
|
|
(16 |
)% |
|
2 |
% |
|||
Acquisition and integration-related costsc |
|
196 |
|
|
|
83 |
|
|
|
490 |
|
|
(136 |
)% |
|
60 |
% |
|||
Restructuring costsd |
|
2 |
|
|
|
239 |
|
|
|
2,493 |
|
|
99 |
% |
|
100 |
% |
|||
Impairment chargesf |
|
— |
|
|
|
— |
|
|
|
3,856 |
|
|
— |
% |
|
100 |
% |
|||
Income from operations |
$ |
51,464 |
|
|
$ |
75,962 |
|
|
$ |
52,175 |
|
|
(32 |
)% |
|
(1 |
)% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Year Ended |
|
|
|
|
Year-over |
|
|
||||||||||||
|
|
% of |
|
|
% of |
|
|
|
|
% change |
|
|
||||||||
|
2022 |
Total |
|
2021 |
Total |
|
|
|
|
Fav (Unfav) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue from services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nurse and |
$ |
2,700,383 |
96 |
% |
|
$ |
1,605,781 |
96 |
% |
|
|
|
|
68 |
% |
|
|
|||
|
|
106,226 |
4 |
% |
|
|
70,871 |
4 |
% |
|
|
|
|
50 |
% |
|
|
|||
|
$ |
2,806,609 |
100 |
% |
|
$ |
1,676,652 |
100 |
% |
|
|
|
|
67 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Contribution income:m |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Nurse and |
$ |
355,447 |
|
|
$ |
205,738 |
|
|
|
|
|
73 |
% |
|
|
|||||
|
|
5,508 |
|
|
|
4,328 |
|
|
|
|
|
27 |
% |
|
|
|||||
|
|
360,955 |
|
|
|
210,066 |
|
|
|
|
|
72 |
% |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate overheadn |
|
67,087 |
|
|
|
55,142 |
|
|
|
|
|
(22 |
)% |
|
|
|||||
Depreciation and amortization |
|
12,576 |
|
|
|
9,852 |
|
|
|
|
|
(28 |
)% |
|
|
|||||
Acquisition and integration-related costsc |
|
726 |
|
|
|
1,068 |
|
|
|
|
|
32 |
% |
|
|
|||||
Restructuring costsd |
|
1,861 |
|
|
|
2,630 |
|
|
|
|
|
29 |
% |
|
|
|||||
Impairment chargesf |
|
5,597 |
|
|
|
2,070 |
|
|
|
|
|
(170 |
)% |
|
|
|||||
Income from operations |
$ |
273,108 |
|
|
$ |
139,304 |
|
|
|
|
|
96 |
% |
|
|
|
||||||||||||||||||||||
Summary Condensed Consolidated Statements of Cash Flows |
||||||||||||||||||||||
(Unaudited, amounts in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
|
Year Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
2021 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities |
$ |
4,320 |
|
|
|
$ |
(73,365 |
) |
|
|
$ |
140,627 |
|
|
|
$ |
134,050 |
|
|
$ |
(85,618 |
) |
Net cash used in investing activities |
|
(37,111 |
) |
|
|
|
(4,686 |
) |
|
|
|
(2,915 |
) |
|
|
|
(43,874 |
) |
|
|
(34,046 |
) |
Net cash provided by (used in) financing activities |
|
6,075 |
|
|
|
|
78,226 |
|
|
|
|
(107,661 |
) |
|
|
|
(87,599 |
) |
|
|
119,094 |
|
Effect of exchange rate changes on cash |
|
— |
|
|
|
|
19 |
|
|
|
|
(10 |
) |
|
|
|
(9 |
) |
|
|
6 |
|
Change in cash and cash equivalents |
|
(26,716 |
) |
|
|
|
194 |
|
|
|
|
30,041 |
|
|
|
|
2,568 |
|
|
|
(564 |
) |
Cash and cash equivalents at beginning of period |
|
30,320 |
|
|
|
|
842 |
|
|
|
|
279 |
|
|
|
|
1,036 |
|
|
|
1,600 |
|
Cash and cash equivalents at end of period |
$ |
3,604 |
|
|
|
$ |
1,036 |
|
|
|
$ |
30,320 |
|
|
|
$ |
3,604 |
|
|
$ |
1,036 |
|
|
||||||||||||||||||||||
Other Financial Data |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
|
Year Ended |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
2021 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated gross profit margino |
|
22.1 |
% |
|
|
|
23.0 |
% |
|
|
|
22.6 |
% |
|
|
|
22.4 |
% |
|
|
22.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nurse and |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FTEsp |
|
12,447 |
|
|
|
|
11,520 |
|
|
|
|
12,524 |
|
|
|
|
12,980 |
|
|
|
8,679 |
|
Average Nurse and |
$ |
510 |
|
|
|
$ |
582 |
|
|
|
$ |
526 |
|
|
|
$ |
565 |
|
|
$ |
503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Days filledr |
|
21,335 |
|
|
|
|
12,739 |
|
|
|
|
13,219 |
|
|
|
|
60,038 |
|
|
|
44,169 |
|
Revenue per day filleds |
$ |
1,740 |
|
|
|
$ |
1,588 |
|
|
|
$ |
1,803 |
|
|
|
$ |
1,769 |
|
|
$ |
1,605 |
|
(a) |
Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders before interest expense, income tax expense (benefit), depreciation and amortization, acquisition and integration-related costs, restructuring (benefits) costs, legal settlements and fees, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on disposal of fixed assets, gain or loss on lease termination, gain or loss on sale of business, other expense (income), net, equity compensation, and applicant tracking system costs. Adjusted EBITDA is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net income attributable to common stockholders as an indicator of operating performance. Management uses Adjusted EBITDA for planning purposes and as one performance measure in its incentive programs for certain members of its management team. Adjusted EBITDA, as defined, closely matches the operating measure as defined by the Company's credit facilities. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company's consolidated revenue. |
|
(b) |
The release of the majority of the valuation allowance on deferred tax assets as of |
|
(c) |
Acquisition and integration-related costs in 2022 included costs for legal and advisory fees for the Mint and Lotus acquisition that closed in |
|
(d) |
Restructuring costs were primarily comprised of employee termination costs, lease-related exit costs, and reorganization costs as part of planned cost savings initiatives. Amounts for the year ended |
|
(e) |
Legal settlements and fees included legal settlement charges as presented on the consolidated statements of operations, as well as legal fees pertaining to non-operational legal matters outside the normal course of operations, which are included in selling, general and administrative expenses. For the year ended |
|
(f) |
Impairment charges for the year ended |
|
(g) |
In addition to its scheduled payments, on |
|
(h) |
The gain on lease termination for the year ended |
|
(i) |
Applicant tracking system costs were related to the Company's project to replace its legacy system supporting its travel nurse staffing business. These costs are reported in selling, general and administrative expenses on the consolidated statement of operations and included in corporate overhead in segment data. |
|
(j) |
Adjusted EPS, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders per diluted share before the diluted EPS impact of acquisition and integration-related costs, restructuring (benefits) costs, legal settlements and fees, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on sale of business, applicant tracking system costs, and nonrecurring income tax adjustments. Adjusted EPS is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EPS because it believes that Adjusted EPS is a useful supplement to its reported EPS as an indicator of operating performance. Management believes it provides a more useful comparison of the Company's underlying business performance from period to period and is more representative of the future earnings capacity of the Company. Quarterly non-GAAP adjustment may vary due to rounding. |
|
(k) |
Non-recurring income tax adjustment for the year ended |
|
(l) |
Segment data is provided in accordance with the Segment Reporting Topic of the Financial Accounting Standards Board Accounting Standards Codification. |
|
(m) |
Contribution income is defined as income (loss) from operations before depreciation and amortization, acquisition and integration-related costs, restructuring (benefits) costs, legal settlement charges, impairment charges, and corporate overhead. Contribution income is a financial measure used by management when assessing segment performance. |
|
(n) |
Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, |
|
(o) |
Gross profit is defined as revenue from services less direct operating expenses. The Company's gross profit excludes allocated depreciation and amortization expense. Gross profit margin is calculated by dividing gross profit by revenue from services. |
|
(p) |
FTEs represent the average number of Nurse and |
|
(q) |
Average revenue per FTE per day is calculated by dividing the Nurse and |
|
(r) |
Days filled is calculated by dividing the total hours invoiced during the period, including an estimate for the impact of accrued revenue, by 8 hours. |
|
(s) |
Revenue per day filled is calculated by dividing revenue as reported by days filled for the period presented. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230221005783/en/
Executive Vice President & Chief Financial Officer
wburns@crosscountry.com
Source: