Cross Country Healthcare Announces Fourth Quarter and Full Year 2017 Financial Results
FINANCIAL HIGHLIGHTS:
Dollars in thousands, except per share amounts. |
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Q4 2017 |
Variance |
Full Year |
Variance |
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Revenue |
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(1)% |
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4% | |||||||||||||||||||||||||||||||||||
Gross profit margin* |
26.5% |
60 bps |
26.4% |
(20) bps |
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Net income attributable to common shareholders |
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455% |
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371% | |||||||||||||||||||||||||||||||||||
Diluted EPS |
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Adjusted EBITDA* |
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2% |
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(3)% | |||||||||||||||||||||||||||||||||||
Adjusted EPS* |
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Cash flows from operations |
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891% |
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51% | |||||||||||||||||||||||||||||||||||
* Refer to accompanying tables and discussion of Non-GAAP financial measures below.
The Company experienced weaker than expected results in the fourth
quarter of 2017 primarily in its Nurse and
"Cross Country has experienced tremendous growth over the last four
years and we expect to see growth continue as we progress into 2018, led
by our high growth, high margin education healthcare staffing business,"
said CEO
Fourth quarter consolidated revenue was
For the year ended
Fourth quarter and full year results were impacted by noncash items
including a
Quarterly Business Segment Highlights
Nurse and
Revenue from Nurse and
Revenue from
Other Human Capital Management Services
Revenue from Other Human Capital Management Services was
Cash Flow and Balance Sheet Highlights
Cash flow provided by operating activities for the current quarter was
Outlook for First Quarter 2018
The guidance below applies only to management's expectations for the first quarter of 2018. Though the Company does not provide full year guidance, organic growth for the full year and continued margin improvements are expected based on continued favorable market conditions and demand for its services. In addition to the normal operating leverage from anticipated revenue growth, the Company will be undertaking actions to further align its cost structure for improved profitability towards achieving its near-term goal of 8% Adjusted EBITDA margin. For the full year, the Company will also be launching a significant initiative to replace its legacy system supporting its largest business, travel nurse staffing.
Q1 2018 Range | Year-over-Year | Sequential | ||||
Change | Change | |||||
Revenue |
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(1)% - 1% | (7)% - (4)% | |||
Gross Profit Margin | 25.5% - 26.0% | (20) bps - 30 bps | (100) bps - (50) bps | |||
Adjusted EBITDA |
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(7)% - 8% | (51)% - (43)% | |||
Adjusted EPS |
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The estimates above are based on current management expectations and, as such, are forward-looking and actual results may differ materially. The quarterly guidance reflects approximately 70 to 80 basis points associated with the annual payroll tax reset. The above ranges do not include the potential impact of any future divestitures, mergers, acquisitions or other business combinations, any impairment charges or valuation allowances, any acquisition-related measurement period adjustments, changes in debt structure, or any material legal or restructuring charges. 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 news releases as well as additional information
about
NON-GAAP FINANCIAL MEASURES
This press release and accompanying financial statement tables reference
non-GAAP financial measures. 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
FORWARD LOOKING STATEMENT
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, and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), 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", and variations of
such words and similar expressions are intended to identify
forward-looking statements. Forward-looking 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: 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, demand for
the healthcare services we provide, both nationally and in the regions
in which we operate, 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 clients'
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 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.
The Company undertakes no obligation to update or revise forward-looking
statements. All references to "we", "us", "our", or "Cross Country" in
this press release mean
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Consolidated Statements of Operations | ||||||||||||||||||||
(Unaudited, amounts in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
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2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Revenue from services | $ | 219,674 | $ | 222,523 | $ | 228,488 | $ | 865,048 | $ | 833,537 | ||||||||||
Operating expenses: | ||||||||||||||||||||
Direct operating expenses | 161,371 | 164,890 | 168,008 | 636,462 | 611,802 | |||||||||||||||
Selling, general and administrative expenses | 46,253 | 46,290 | 47,346 | 187,435 | 179,820 | |||||||||||||||
Bad debt expense | 746 | 97 | 433 | 1,828 | 593 | |||||||||||||||
Depreciation and amortization | 2,849 | 2,213 | 2,849 | 10,174 | 9,182 | |||||||||||||||
Acquisition-related contingent consideration (a) | 98 | 107 | (605 | ) | 44 | 814 | ||||||||||||||
Acquisition and integration costs (b) | 22 | 78 | 1,366 | 1,975 | 78 | |||||||||||||||
Restructuring costs (c) | 302 | 142 | 724 | 1,026 | 753 | |||||||||||||||
Impairment charges (d) | 14,356 | — | — | 14,356 | 24,311 | |||||||||||||||
Total operating expenses | 225,997 | 213,817 | 220,121 | 853,300 | 827,353 | |||||||||||||||
Income from operations | (6,323 | ) | 8,706 | 8,367 | 11,748 | 6,184 | ||||||||||||||
Other expenses (income): | ||||||||||||||||||||
Interest expense | 1,239 | 1,428 | 1,221 | 4,214 | 6,106 | |||||||||||||||
Loss (gain) on derivative liability (e) | — | 14,165 | — | (1,581 | ) | (5,805 | ) | |||||||||||||
Loss on early extinguishment of debt (f) | — | — | — | 4,969 | 1,568 | |||||||||||||||
Other income, net | (39 | ) | (87 | ) | (57 | ) | (155 | ) | (230 | ) | ||||||||||
(Loss) income before income taxes | (7,523 | ) | (6,800 | ) | 7,203 | 4,301 | 4,545 | |||||||||||||
Income tax (benefit) expense (g) | (35,779 | ) | 849 | 159 | (34,501 | ) | (4,186 | ) | ||||||||||||
Consolidated net income (loss) | 28,256 | (7,649 | ) | 7,044 | 38,802 | 8,731 | ||||||||||||||
Less: Net income attributable to noncontrolling interest in subsidiary | 306 | 235 | 321 | 1,289 | 764 | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 27,950 | $ | (7,884 | ) | $ | 6,723 | $ | 37,513 | $ | 7,967 | |||||||||
Net income (loss) per share attributable to common shareholders - Basic | $ | 0.78 | $ | (0.24 | ) | $ | 0.19 | $ | 1.07 | $ | 0.25 | |||||||||
Net income (loss) per share attributable to common shareholders - Diluted | $ | 0.77 | $ | (0.24 | ) | $ | 0.19 | $ | 1.01 | $ | 0.15 | |||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 35,760 | 32,263 | 35,748 | 35,018 | 32,132 | |||||||||||||||
Diluted (h) | 36,129 | 32,263 | 36,036 | 36,166 | 36,246 | |||||||||||||||
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Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
(Unaudited, amounts in thousands) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
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2017 | 2016 | 2017 | 2017 | 2016 | ||||||||||||||||
Adjusted EBITDA: (i) | ||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 27,950 | $ | (7,884 | ) | $ | 6,723 | $ | 37,513 | $ | 7,967 | |||||||||
Interest expense | 1,239 | 1,428 | 1,221 | 4,214 | 6,106 | |||||||||||||||
Income tax (benefit) expense (g) | (35,779 | ) | 849 | 159 | (34,501 | ) | (4,186 | ) | ||||||||||||
Depreciation and amortization | 2,849 | 2,213 | 2,849 | 10,174 | 9,182 | |||||||||||||||
Acquisition-related contingent consideration (a) | 98 | 107 | (605 | ) | 44 | 814 | ||||||||||||||
Acquisition and integration costs (b) | 22 | 78 | 1,366 | 1,975 | 78 | |||||||||||||||
Restructuring costs (c) | 302 | 142 | 724 | 1,026 | 753 | |||||||||||||||
Impairment charges (d) | 14,356 | — | — | 14,356 | 24,311 | |||||||||||||||
Loss (gain) on derivative liability (e) | — | 14,165 | — | (1,581 | ) | (5,805 | ) | |||||||||||||
Loss on early extinguishment of debt (f) | — | — | — | 4,969 | 1,568 | |||||||||||||||
Other income, net | (39 | ) | (87 | ) | (57 | ) | (155 | ) | (230 | ) | ||||||||||
Equity compensation | 997 | 765 | 1,068 | 4,080 | 3,379 | |||||||||||||||
Net income attributable to noncontrolling interest in subsidiary | 306 | 235 | 321 | 1,289 | 764 | |||||||||||||||
Adjusted EBITDA (i) | $ | 12,301 | $ | 12,011 | $ | 13,769 | $ | 43,403 | $ | 44,701 | ||||||||||
Adjusted EPS: (j) | ||||||||||||||||||||
Numerator: | ||||||||||||||||||||
Consolidated net income (loss) attributable to common shareholders | $ | 27,950 | $ | (7,884 | ) | $ | 6,723 | $ | 37,513 | $ | 7,967 | |||||||||
Non-GAAP adjustments - pretax: | ||||||||||||||||||||
Acquisition-related contingent consideration (a) | 98 | 107 | (605 | ) | 44 | 814 | ||||||||||||||
Acquisition and integration costs (b) | 22 | 78 | 1,366 | 1,975 | 78 | |||||||||||||||
Restructuring costs (c) | 302 | 142 | 724 | 1,026 | 753 | |||||||||||||||
Impairment charges (d) | 14,356 | — | — | 14,356 | 24,311 | |||||||||||||||
Loss (gain) on derivative liability (e) | — | 14,165 | — | (1,581 | ) | (5,805 | ) | |||||||||||||
Loss on early extinguishment of debt (f) | — | — | — | 4,969 | 1,568 | |||||||||||||||
Nonrecurring income tax adjustments | (34,476 | ) | — | — | (34,476 | ) | — | |||||||||||||
Tax impact of non-GAAP adjustments (k) | (2,211 | ) | — | — | (2,211 | ) | (7,036 | ) | ||||||||||||
Adjusted net income attributable to common shareholders - non-GAAP | $ | 6,041 | $ | 6,608 | $ | 8,208 | $ | 21,615 | $ | 22,650 | ||||||||||
Denominator: | ||||||||||||||||||||
Weighted average common shares - basic, GAAP | 35,760 | 32,263 | 35,748 | 35,018 | 32,132 | |||||||||||||||
Dilutive impact of share-based payments | 369 | 557 | 288 | 425 | 593 | |||||||||||||||
Adjusted weighted average common shares - diluted, non-GAAP | 36,129 | 32,820 | 36,036 | 35,443 | 32,725 | |||||||||||||||
Reconciliation: (j) | ||||||||||||||||||||
Diluted EPS, GAAP | $ | 0.77 | $ | (0.24 | ) | $ | 0.19 | $ | 1.01 | $ | 0.15 | |||||||||
Non-GAAP adjustments - pretax: | ||||||||||||||||||||
Acquisition-related contingent consideration (a) | — | — | (0.02 | ) | — | 0.03 | ||||||||||||||
Acquisition and integration costs (b) | — | — | 0.04 | 0.06 | — | |||||||||||||||
Restructuring costs (c) | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | |||||||||||||||
Impairment charges (d) | 0.40 | — | — | 0.40 | 0.74 | |||||||||||||||
Loss (gain) on derivative liability (e) | — | 0.43 | — | (0.05 | ) | (0.18 | ) | |||||||||||||
Loss on early extinguishment of debt (f) | — | — | — | 0.14 | 0.05 | |||||||||||||||
Nonrecurring income tax adjustments | (0.95 | ) | — | — | (0.97 | ) | — | |||||||||||||
Tax impact of non-GAAP adjustments (k) | (0.06 | ) | — | — | (0.06 | ) | (0.22 | ) | ||||||||||||
Adjustment for change in dilutive shares | — | — | — | 0.05 | 0.09 | |||||||||||||||
Adjusted EPS, non-GAAP (j) | $ | 0.17 | $ | 0.20 | $ | 0.23 | $ | 0.61 | $ | 0.69 | ||||||||||
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Consolidated Balance Sheets | ||||||||
(Unaudited, amounts in thousands) | ||||||||
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2017 | 2016 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 25,537 | $ | 20,630 | ||||
Accounts receivable, net | 173,603 | 173,620 | ||||||
Prepaid expenses | 5,287 | 6,126 | ||||||
Insurance recovery receivable | 3,497 | 3,037 | ||||||
Other current assets | 963 | 2,198 | ||||||
Total current assets | 208,887 | 205,611 | ||||||
Property and equipment, net | 14,086 | 12,818 | ||||||
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117,589 | 79,648 | ||||||
Trade names, indefinite-lived | 26,702 | 35,402 | ||||||
Other intangible assets, net | 60,976 | 36,835 | ||||||
Non-current deferred tax assets | 20,219 | — | ||||||
Other non-current assets | 19,228 | 18,064 | ||||||
Total assets | $ | 467,687 | $ | 388,378 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 50,597 | $ | 58,850 | ||||
Accrued employee compensation and benefits | 34,271 | 33,243 | ||||||
Current portion of long-term debt and capital lease obligations | 6,875 | 2,250 | ||||||
Other current liabilities | 2,845 | 2,749 | ||||||
Total current liabilities | 94,588 | 97,092 | ||||||
Long-term debt and capital lease obligations | 92,259 | 84,750 | ||||||
Non-current deferred tax liabilities | 105 | 13,154 | ||||||
Long-term accrued claims | 28,757 | 28,870 | ||||||
Contingent consideration | 5,088 | 5,301 | ||||||
Other long-term liabilities | 9,171 | 7,409 | ||||||
Total liabilities | 229,968 | 236,576 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock | 4 | 3 | ||||||
Additional paid-in capital | 305,362 | 256,570 | ||||||
Accumulated other comprehensive loss | (1,166 | ) | (1,241 | ) | ||||
Accumulated deficit | (67,111 | ) | (104,089 | ) | ||||
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237,089 | 151,243 | ||||||
Noncontrolling interest in subsidiary | 630 | 559 | ||||||
Total stockholders' equity | 237,719 | 151,802 | ||||||
Total liabilities and stockholders' equity | $ | 467,687 | $ | 388,378 | ||||
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Segment Data (l) | |||||||||||||||||||||||||||
(Unaudited, amounts in thousands) | |||||||||||||||||||||||||||
Three Months Ended |
Year-over- |
Sequential |
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% of |
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% of |
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% of | % change | % change | ||||||||||||||||||||
2017 | Total | 2016 | Total | 2017 | Total | Fav (Unfav) | Fav (Unfav) | ||||||||||||||||||||
Revenue from services: | |||||||||||||||||||||||||||
Nurse and |
$ | 193,740 | 88 | % | $ | 194,050 | 87 | % | $ | 200,492 | 88 | % | (0.2 | )% | (3.4 | )% | |||||||||||
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22,555 | 10 | % | 24,813 | 11 | % | 24,871 | 11 | % | (9.1 | )% | (9.3 | )% | ||||||||||||||
Other Human Capital Management Services | 3,379 | 2 | % | 3,660 | 2 | % | 3,125 | 1 | % | (7.7 | )% | 8.1 | % | ||||||||||||||
$ | 219,674 | 100 | % | $ | 222,523 | 100 | % | $ | 228,488 | 100 | % | (1.3 | )% | (3.9 | )% | ||||||||||||
Contribution income: (m) | |||||||||||||||||||||||||||
Nurse and |
$ | 19,188 | $ | 18,115 | $ | 20,663 | 5.9 | % | (7.1 | )% | |||||||||||||||||
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1,049 | 2,262 | 1,340 | (53.6 | )% | (21.7 | )% | ||||||||||||||||||||
Other Human Capital Management Services | (157 | ) | (339 | ) | (1 | ) | 53.7 | % |
NM |
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20,080 | 20,038 | 22,002 | 0.2 | % | (8.7 | )% | |||||||||||||||||||||
Unallocated corporate overhead (n) | 8,776 | 8,792 | 9,301 | 0.2 | % | 5.6 | % | ||||||||||||||||||||
Depreciation and amortization | 2,849 | 2,213 | 2,849 | (28.7 | )% | — | % | ||||||||||||||||||||
Acquisition-related contingent consideration (a) | 98 | 107 | (605 | ) | 8.4 | % | (116.2 | )% | |||||||||||||||||||
Acquisition and integration costs (b) | 22 | 78 | 1,366 | 71.8 | % | 98.4 | % | ||||||||||||||||||||
Restructuring costs (c) | 302 | 142 | 724 | (112.7 | )% | 58.3 | % | ||||||||||||||||||||
Impairment charges (d) | 14,356 | — | — | (100.0 | )% | (100.0 | )% | ||||||||||||||||||||
Income from operations | $ | (6,323 | ) | $ | 8,706 | $ | 8,367 | (172.6 | )% | (175.6 | )% | ||||||||||||||||
Year Ended | |||||||||||||||||||||||||||
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% of |
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% of | ||||||||||||||||||||||||
2017 | Total | 2016 | Total | ||||||||||||||||||||||||
Revenue from services: | |||||||||||||||||||||||||||
Nurse and |
$ | 758,267 | 88 | % | $ | 721,486 | 86 | % | 5.1 | % | |||||||||||||||||
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93,610 | 11 | % | 98,283 | 12 | % | (4.8 | )% | |||||||||||||||||||
Other Human Capital Management Services | 13,171 | 1 | % | 13,768 | 2 | % | (4.3 | )% | |||||||||||||||||||
$ | 865,048 | 100 | % | $ | 833,537 | 100 | % | 3.8 | % | ||||||||||||||||||
Contribution income: (m) | |||||||||||||||||||||||||||
Nurse and |
$ | 73,614 | $ | 71,992 | 2.3 | % | |||||||||||||||||||||
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5,256 | 8,265 | (36.4 | )% | |||||||||||||||||||||||
Other Human Capital Management Services | (357 | ) | (535 | ) | 33.3 | % | |||||||||||||||||||||
78,513 | 79,722 | (1.5 | )% | ||||||||||||||||||||||||
Unallocated corporate overhead (n) | 39,190 | 38,400 | (2.1 | )% | |||||||||||||||||||||||
Depreciation and amortization | 10,174 | 9,182 | (10.8 | )% | |||||||||||||||||||||||
Acquisition-related contingent consideration (a) | 44 | 814 | 94.6 | % | |||||||||||||||||||||||
Acquisition and integration costs (b) | 1,975 | 78 |
NM |
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Restructuring costs (c) | 1,026 | 753 | (36.3 | )% | |||||||||||||||||||||||
Impairment charges (d) | 14,356 | 24,311 | 40.9 | % | |||||||||||||||||||||||
Income from operations | $ | 11,748 | $ | 6,184 | 90.0 | % | |||||||||||||||||||||
NM-Not meaningful. | |||||||||||||||||||||||||||
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Other Financial Data | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||
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2017 | 2016 | 2017 | 2017 | 2016 | |||||||||||||||||||
Net cash (used in) provided by operating activities (in thousands) | $ | 16,803 | $ | (2,124 | ) | $ | 3,180 | $ | 45,508 | $ | 30,145 | ||||||||||||
Consolidated gross profit margin (o) | 26.5 | % | 25.9 | % | 26.5 | % | 26.4 | % | 26.6 | % | |||||||||||||
Nurse and |
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FTEs (p) | 7,521 | 7,156 | 7,706 | 7,397 | 6,953 | ||||||||||||||||||
Average Nurse and |
$ | 280 | $ | 295 | $ | 283 | $ | 281 | $ | 284 | |||||||||||||
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Days filled (r) | 15,115 | 14,521 | 15,777 | 61,148 | 62,482 | ||||||||||||||||||
Revenue per day filled (s) | $ | 1,489 | $ | 1,599 | $ | 1,562 | $ | 1,549 | $ | 1,549 | |||||||||||||
(a) |
Acquisition-related contingent consideration represents the fair
value and accretion adjustments to the contingent consideration
liabilities for the Mediscan acquisition that closed on |
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(b) |
Acquisition and integration costs are primarily related to legal and
advisory fees for the |
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(c) | Restructuring costs related to severance and lease consolidations incurred as part of our separate and discrete cost savings initiatives. | |
(d) |
Impairment charges (noncash) of |
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(e) | Loss (gain) on derivative liability represents the change in the fair value of embedded features of our Convertible Notes up until their repayment. | |
(f) |
Loss on early extinguishment of debt for the year ended |
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(g) |
Income tax benefit for the three months and year ended |
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(h) |
When applying the if-converted method to its Convertible Notes,
723,519 shares were included in diluted weighted average shares for
the year ended |
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(i) | Adjusted EBITDA, a non-GAAP (Generally Accepted Accounting Principles) financial measure, is defined as net income attributable to common shareholders before interest expense, income tax (benefit) expense, depreciation and amortization, acquisition-related contingent consideration, acquisition and integration costs, restructuring costs, impairment charges, loss (gain) on derivative liability, loss on early extinguishment of debt, other income, net, equity compensation, and includes net income attributable to noncontrolling interest in subsidiary. Adjusted EBITDA 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 shareholders 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 typically used in the Company's credit facilities in calculating various ratios. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company's consolidated revenue. | |
(j) |
Adjusted EPS, a non-GAAP financial measure, is defined as net income (loss) attributable to common shareholders per diluted share before the diluted EPS impact of acquisition-related contingent considertion, acquisition and integration costs, restructuring costs, impairment charges, loss (gain) on derivative liability, loss on early extinguishment of debt, and non-recurring income tax adjustments. Adjusted EPS 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 uses Adjusted EPS as one performance measure in its annual cash incentive program for certain members of its management team. 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. |
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(k) | Due to the Company previously maintaining a full valuation allowance, there was no tax impact on non-GAAP measures with the exception of the impact of impairment charges on goodwill. | |
(l) | Segment data provided is in accordance with the Segment Reporting Topic of the FASB ASC. | |
(m) | Contribution income is defined as income or loss from operations before depreciation and amortization, acquisition-related contingent consideration, acquisition and integration costs, restructuring costs, impairment charges, and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance. | |
(n) | Unallocated corporate overhead includes corporate compensation and benefits, and general and administrative expenses including rent and utilities, computer supplies and expenses, insurance, professional expenses, corporate-wide projects (initiatives), and public company expense. | |
(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 |
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(r) | Days filled is calculated by dividing the total hours invoiced during the period by 8 hours. This method does not reflect the impact of revenue generated from permanent placements, reimbursed expenses, discounts and allowances, and the impact from accruals and adjustments recorded for financial statement purposes. | |
(s) | Revenue per day filled is calculated by dividing revenue invoiced by days filled for the period presented. |
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President
and Chief Executive Officer
wgrubbs@crosscountry.com
Source:
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