Cross Country Healthcare Announces Updated Fourth Quarter & Full Year 2013 Financial Results
This
In light of this accounting adjustment, management has concluded that a material weakness existed in the controls related to the Company's oversight and review of non-cash, non-routine estimates and that, as a result, internal control over financial reporting and disclosure controls and procedures were not effective. Management is undertaking steps to remediate the material weakness, including the development of enhanced procedures and processes. Management believes in the future these additional control procedures will, when fully implemented, remediate this material weakness.
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 U.S. GAAP. Such non-GAAP financial measures are provided for consistency and comparability to prior year results; furthermore, management believes they are useful to investors when evaluating the Company's performance as it excludes certain items that management believes are not indicative of the Company's operating performance. Such non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. The financial statement tables that accompany this press release include a reconciliation of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure and a more detailed discussion of each financial measure; as such, the financial statement tables should be read in conjunction with the presentation of these non-GAAP financial measures.
ABOUT
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 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, without limitation, 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
nurses and physicians, 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 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, 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
December 31, 2013, and our other
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 |
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(Unaudited, amounts in thousands, except per share data) | |||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||
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2013 (a) | 2012 | 2013 | 2013 (a) | 2012 | |||||||||||||||||||||||||||
Revenue from services | $ | 109,179 | $ | 111,731 | $ | 108,048 | $ | 438,311 | $ | 442,635 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Direct operating expenses | 80,617 | 83,787 | 79,864 | 324,851 | 331,050 | ||||||||||||||||||||||||||
Selling, general and administrative expenses | 26,945 | 27,055 | 25,504 | 106,117 | 109,417 | ||||||||||||||||||||||||||
Bad debt expense | 309 | 195 | 215 | 1,078 | 786 | ||||||||||||||||||||||||||
Depreciation | 934 | 1,107 | 890 | 3,886 | 4,905 | ||||||||||||||||||||||||||
Amortization | 610 | 566 | 552 | 2,294 | 2,263 | ||||||||||||||||||||||||||
Acquisition costs (a) | 473 | — | — | 473 | — | ||||||||||||||||||||||||||
Restructuring costs (b) | — | — | 109 | 484 | — | ||||||||||||||||||||||||||
Legal settlement charge (c) | — | — | — | 750 | — | ||||||||||||||||||||||||||
Impairment charges (d) | 6,400 | — | — | 6,400 | 18,732 | ||||||||||||||||||||||||||
Total operating expenses | 116,288 | 112,710 | 107,134 | 446,333 | 467,153 | ||||||||||||||||||||||||||
(Loss) income from operations | (7,109 | ) | (979 | ) | 914 | (8,022 | ) | (24,518 | ) | ||||||||||||||||||||||
Other expenses (income): | |||||||||||||||||||||||||||||||
Foreign exchange loss (gain) | 22 | (65 | ) | (53 | ) | (132 | ) | (62 | ) | ||||||||||||||||||||||
Interest expense | 215 | 433 | 190 | 849 | 2,341 | ||||||||||||||||||||||||||
Loss on early extinguishment and modification of debt (e) | — | — | — | 1,419 | 82 | ||||||||||||||||||||||||||
Other (income) expense, net | (36 | ) | (23 | ) | (32 | ) | (119 | ) | 16 | ||||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (7,310 | ) | (1,324 | ) | 809 | (10,039 | ) | (26,895 | ) | ||||||||||||||||||||||
Income tax expense (benefit) | 45,612 | 1,661 | (644 | ) | 44,211 | (6,150 | ) | ||||||||||||||||||||||||
(Loss) income from continuing operations | (52,922 | ) | (2,985 | ) | 1,453 | (54,250 | ) | (20,745 | ) | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes (f) | 338 | (6,548 | ) | (539 | ) | 2,281 | (21,476 | ) | |||||||||||||||||||||||
Net (loss) income | $ | (52,584 | ) | $ | (9,533 | ) | $ | 914 | $ | (51,969 | ) | $ | (42,221 | ) | |||||||||||||||||
Net (loss) income per common share, basic: | |||||||||||||||||||||||||||||||
Continuing operations | $ | (1.70 | ) | $ | (0.10 | ) | $ | 0.05 | $ | (1.75 | ) | $ | (0.67 | ) | |||||||||||||||||
Discontinued operations | 0.01 | (0.21 | ) | (0.02 | ) | 0.07 | (0.70 | ) | |||||||||||||||||||||||
Net (loss) income | $ | (1.69 | ) | $ | (0.31 | ) | $ | 0.03 | $ | (1.68 | ) | $ | (1.37 | ) | |||||||||||||||||
Net (loss) income per common share, diluted: | |||||||||||||||||||||||||||||||
Continuing operations | $ | (1.70 | ) | $ | (0.10 | ) | $ | 0.05 | $ | (1.75 | ) | $ | (0.67 | ) | |||||||||||||||||
Discontinued operations | 0.01 | (0.21 | ) | (0.02 | ) | 0.07 | (0.70 | ) | |||||||||||||||||||||||
Net (loss) income | $ | (1.69 | ) | $ | (0.31 | ) | $ | 0.03 | $ | (1.68 | ) | $ | (1.37 | ) | |||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||||||
Basic | 31,085 | 30,902 | 31,085 | 31,009 | 30,843 | ||||||||||||||||||||||||||
Diluted | 31,085 | 30,902 | 31,161 | 31,009 | 30,843 | ||||||||||||||||||||||||||
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Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||
(Unaudited, amounts in thousands) | |||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||
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2013 (a) | 2012 | 2013 | 2013 (a) | 2012 | |||||||||||||||||||||||||||
Adjusted EBITDA: | |||||||||||||||||||||||||||||||
(Loss) income from operations | $ | (7,109 | ) | $ | (979 | ) | $ | 914 | $ | (8,022 | ) | $ | (24,518 | ) | |||||||||||||||||
Depreciation | 934 | 1,107 | 890 | 3,886 | 4,905 | ||||||||||||||||||||||||||
Amortization | 610 | 566 | 552 | 2,294 | 2,263 | ||||||||||||||||||||||||||
Acquisition costs (a) | 473 | — | — | 473 | — | ||||||||||||||||||||||||||
Restructuring costs (b) | — | — | 109 | 484 | — | ||||||||||||||||||||||||||
Legal settlement charge (c) | — | — | — | 750 | — | ||||||||||||||||||||||||||
Impairment charges (d) | 6,400 | — | — | 6,400 | 18,732 | ||||||||||||||||||||||||||
Equity compensation | 465 | 615 | 451 | 2,100 | 2,595 | ||||||||||||||||||||||||||
Adjusted EBITDA (g) | $ | 1,773 | $ | 1,309 | $ | 2,916 | $ | 8,365 | $ | 3,977 | |||||||||||||||||||||
Adjusted (Loss) Income from Continuing Operations and Adjusted Net Income (Loss): | |||||||||||||||||||||||||||||||
(Loss) income from continuing operations | $ | (52,922 | ) | $ | (2,985 | ) | $ | 1,453 | $ | (54,250 | ) | $ | (20,745 | ) | |||||||||||||||||
Acquisition costs, net of tax | 286 | — | — | 286 | — | ||||||||||||||||||||||||||
Restructuring costs, net of tax | — | — | 68 | 310 | — | ||||||||||||||||||||||||||
Legal settlement charge, net of tax | — | — | — | 484 | — | ||||||||||||||||||||||||||
Loss on early extinguishment and modification of debt, net of tax | — | — | — | 890 | 51 | ||||||||||||||||||||||||||
Impairment charges, net of tax | 3,898 | — | — | 3,898 | 12,022 | ||||||||||||||||||||||||||
Valuation allowance on deferred tax assets |
48,556 |
— | — |
48,556 |
— | ||||||||||||||||||||||||||
Adjusted (loss) income from continuing operations (h) |
(182 |
) | (2,985 | ) | 1,521 |
174 |
(8,672 | ) | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes (f) | 338 | (6,548 | ) | (539 | ) | 2,281 | (21,476 | ) | |||||||||||||||||||||||
Adjusted net income (loss) (i) | $ |
156 |
$ | (9,533 | ) | $ | 982 | $ |
2,455 |
$ | (30,148 | ) | |||||||||||||||||||
Adjusted (Loss) Income from Continuing Operations per Diluted Share and Adjusted Net Income (loss) per Diluted Share: | |||||||||||||||||||||||||||||||
(Loss) income from continuing operations per diluted share | $ | (1.70 | ) | $ | (0.10 | ) | $ | 0.05 | $ | (1.75 | ) | $ | (0.67 | ) | |||||||||||||||||
Acquisition costs, net of tax | 0.01 | — | — | 0.01 | — | ||||||||||||||||||||||||||
Restructuring costs, net of tax | — | — | 0.00 | 0.01 | — | ||||||||||||||||||||||||||
Legal settlement charge, net of tax | — | — | — | 0.01 | — | ||||||||||||||||||||||||||
Loss on early extinguishment and modification of debt, net of tax | — | — | — | 0.03 | 0.00 | ||||||||||||||||||||||||||
Impairment charges, net of tax | 0.12 | — | — | 0.13 | 0.39 | ||||||||||||||||||||||||||
Valuation allowance on deferred tax assets | 1.56 | — | — |
1.57 |
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Adjusted (loss) income from continuing operations per diluted share (h) | (0.01 | ) | (0.10 | ) | 0.05 |
0.01 |
(0.28 | ) | |||||||||||||||||||||||
Income (loss) from discontinued operations per diluted share | 0.01 | (0.21 | ) | (0.02 | ) | 0.07 | (0.70 | ) | |||||||||||||||||||||||
Adjusted net income (loss) per diluted share (i) | $ | 0.00 | $ | (0.31 | ) | $ | 0.03 | $ |
0.08 |
$ | (0.98 | ) | |||||||||||||||||||
Weighted average common shares outstanding - diluted | 31,085 | 30,902 | 31,161 | 31,009 | 30,843 | ||||||||||||||||||||||||||
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Consolidated Balance Sheets (j) |
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(Unaudited, amounts in thousands) | |||||||||||||||||||||||||||||||
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2013 (a) | 2012 | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 8,055 | $ | 10,463 | |||||||||||||||||||||||||||
Accounts receivable, net | 60,750 | 62,674 | |||||||||||||||||||||||||||||
Deferred tax assets | — | 5,983 | |||||||||||||||||||||||||||||
Income taxes receivable | 538 | 586 | |||||||||||||||||||||||||||||
Prepaid expenses | 6,163 | 5,580 | |||||||||||||||||||||||||||||
Insurance recovery receivable | 3,886 | 5,484 | |||||||||||||||||||||||||||||
Indemnity escrow receivable | 3,750 | — | |||||||||||||||||||||||||||||
Assets held for sale | — | 46,971 | |||||||||||||||||||||||||||||
Other current assets | 793 | 1,049 | |||||||||||||||||||||||||||||
Total current assets | 83,935 | 138,790 | |||||||||||||||||||||||||||||
Property and equipment, net | 6,170 | 8,235 | |||||||||||||||||||||||||||||
Trade names, net | 42,301 | 48,701 | |||||||||||||||||||||||||||||
Goodwill, net | 77,266 | 62,712 | |||||||||||||||||||||||||||||
Other identifiable intangible assets, net | 26,198 | 14,492 | |||||||||||||||||||||||||||||
Debt issuance costs, net | 464 | 1,610 | |||||||||||||||||||||||||||||
Non-current deferred tax assets | — | 22,760 | |||||||||||||||||||||||||||||
Non-current insurance recovery receivable | 10,914 | 8,210 | |||||||||||||||||||||||||||||
Non-current security deposits | 997 | 413 | |||||||||||||||||||||||||||||
Total assets | $ | 248,245 | $ | 305,923 | |||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 10,272 | $ | 10,130 | |||||||||||||||||||||||||||
Accrued employee compensation and benefits | 19,148 | 21,650 | |||||||||||||||||||||||||||||
Current portion of long-term debt | 8,483 | 33,683 | |||||||||||||||||||||||||||||
Sales tax payable | 2,404 | 1,545 | |||||||||||||||||||||||||||||
Liabilities related to assets held for sale | — | 2,835 | |||||||||||||||||||||||||||||
Deferred tax liabilities | 535 | — | |||||||||||||||||||||||||||||
Other current liabilities | 4,063 | 2,744 | |||||||||||||||||||||||||||||
Total current liabilities | 44,905 | 72,587 | |||||||||||||||||||||||||||||
Long-term debt | 93 | 176 | |||||||||||||||||||||||||||||
Non-current deferred tax liabilities | 16,849 | — | |||||||||||||||||||||||||||||
Long-term accrued claims | 18,303 | 16,347 | |||||||||||||||||||||||||||||
Long-term unrecognized tax benefits | 4,013 | 4,656 | |||||||||||||||||||||||||||||
Other long-term liabilities | 3,415 | 3,035 | |||||||||||||||||||||||||||||
Total liabilities | 87,578 | 96,801 | |||||||||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||||||
Stockholders' equity: | |||||||||||||||||||||||||||||||
Common stock | 3 | 3 | |||||||||||||||||||||||||||||
Additional paid-in capital | 246,325 | 244,924 | |||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (970 | ) | (3,083 | ) | |||||||||||||||||||||||||||
Accumulated deficit | (84,691 | ) | (32,722 | ) | |||||||||||||||||||||||||||
Total stockholders' equity | 160,667 | 209,122 | |||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 248,245 | $ | 305,923 | |||||||||||||||||||||||||||
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Segment Data (k) | |||||||||||||||||||||||||||||||
(Unaudited, amounts in thousands) | |||||||||||||||||||||||||||||||
Three Months Ended | YOY | Sequential | |||||||||||||||||||||||||||||
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% of |
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% of |
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% of | % change | % change | ||||||||||||||||||||||||
2013 (a) | Total | 2012 | Total | 2013 | Total | Fav (Unfav) | Fav (Unfav) | ||||||||||||||||||||||||
Revenue from services: | |||||||||||||||||||||||||||||||
Nurse and allied staffing | $ | 71,237 | 65 | % | $ | 70,850 | 63 | % | $ | 67,448 | 63 | % | 0.5 | % | 5.6 | % | |||||||||||||||
Physician staffing | 28,865 | 27 | % | 30,667 | 28 | % | 31,485 | 29 | % | (5.9 | )% | (8.3 | )% | ||||||||||||||||||
Other human capital management services | 9,077 | 8 | % | 10,214 | 9 | % | 9,115 | 8 | % | (11.1 | )% | (0.4 | )% | ||||||||||||||||||
$ | 109,179 | 100 | % | $ | 111,731 | 100 | % | $ | 108,048 | 100 | % | (2.3 | )% | 1.0 | % | ||||||||||||||||
Contribution income (l) | |||||||||||||||||||||||||||||||
Nurse and allied staffing (m) | $ | 4,996 | $ | 3,590 | $ | 5,156 | 39.2 | % | (3.1 | )% | |||||||||||||||||||||
Physician staffing | 1,797 | 2,460 | 2,191 | (27.0 | )% | (18.0 | )% | ||||||||||||||||||||||||
Other human capital management services | (133 | ) | 534 | 55 | (124.9 | )% | (341.8 | )% | |||||||||||||||||||||||
6,660 | 6,584 | 7,402 | 1.2 | % | (10.0 | )% | |||||||||||||||||||||||||
Unallocated corporate overhead (m) | 5,352 | 5,890 | 4,937 | 9.1 | % | (8.4 | )% | ||||||||||||||||||||||||
Depreciation | 934 | 1,107 | 890 | 15.6 | % | (4.9 | )% | ||||||||||||||||||||||||
Amortization | 610 | 566 | 552 | (7.8 | )% | (10.5 | )% | ||||||||||||||||||||||||
Acquisition costs (a) | 473 | — | — | (100.0 | )% | (100.0 | )% | ||||||||||||||||||||||||
Restructuring costs (b) | — | — | 109 | — | % | 100.0 | % | ||||||||||||||||||||||||
Impairment charges (d) | 6,400 | — | — | (100.0 | )% | (100.0 | )% | ||||||||||||||||||||||||
(Loss) income from operations | $ | (7,109 | ) | $ | (979 | ) | $ | 914 | (626.1 | )% | 877.8 | % | |||||||||||||||||||
Year Ended | YOY | ||||||||||||||||||||||||||||||
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% of |
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% of | % change | |||||||||||||||||||||||||||
2013 (a) | Total | 2012 | Total | Fav (Unfav) | |||||||||||||||||||||||||||
Revenue from services: | |||||||||||||||||||||||||||||||
Nurse and allied staffing | $ | 278,973 | 63 | % | $ | 277,754 | 63 | % | 0.4 | % | |||||||||||||||||||||
Physician staffing | 121,371 | 28 | % | 123,545 | 28 | % | (1.8 | )% | |||||||||||||||||||||||
Other human capital management services | 37,967 | 9 | % | 41,336 | 9 | % | (8.2 | )% | |||||||||||||||||||||||
$ | 438,311 | 100 | % | $ | 442,635 | 100 | % | (1.0 | )% | ||||||||||||||||||||||
Contribution income (l) | |||||||||||||||||||||||||||||||
Nurse and allied staffing (m) | $ | 19,188 | $ | 11,360 | 68.9 | % | |||||||||||||||||||||||||
Physician staffing | 8,617 | 10,652 | (19.1 | )% | |||||||||||||||||||||||||||
Other human capital management services | 746 | 1,944 | (61.6 | )% | |||||||||||||||||||||||||||
28,551 | 23,956 | 19.2 | % | ||||||||||||||||||||||||||||
Unallocated corporate overhead (m) | 22,286 | 22,574 | 1.3 | % | |||||||||||||||||||||||||||
Depreciation | 3,886 | 4,905 | 20.8 | % | |||||||||||||||||||||||||||
Amortization | 2,294 | 2,263 | (1.4 | )% | |||||||||||||||||||||||||||
Acquisition costs (a) | 473 | — | (100.0 | )% | |||||||||||||||||||||||||||
Restructuring costs (b) | 484 | — | (100.0 | )% | |||||||||||||||||||||||||||
Legal settlement charge (c) | 750 | — | (100.0 | )% | |||||||||||||||||||||||||||
Impairment charges (d) | 6,400 | 18,732 | 65.8 | % | |||||||||||||||||||||||||||
(Loss) income from operations | $ | (8,022 | ) | $ | (24,518 | ) | 67.3 | % | |||||||||||||||||||||||
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Other Financial Data | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||
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2013 (a | ) | 2012 | 2013 | 2013 (a | ) | 2012 | |||||||||||||||||||||||||
Net cash (used in) provided by operating activities (in thousands) | $ | (2,900 | ) | $ | 4,440 | $ | 7,161 | $ | 8,659 | $ | 10,146 | ||||||||||||||||||||
Nurse and allied staffing statistical data: |
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FTEs (n) | 2,531 | 2,452 | 2,282 | 2,420 | 2,446 | ||||||||||||||||||||||||||
Days worked (o) | 232,852 | 225,584 | 209,944 | 883,300 | 895,236 | ||||||||||||||||||||||||||
Average nurse and allied staffing revenue per FTE per day (p) | $ | 306 | $ | 314 | $ | 321 | $ | 316 | $ | 310 | |||||||||||||||||||||
Physician staffing statistical data: |
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Days filled (q) | 18,705 | 20,290 | 20,788 | 80,294 | 85,001 | ||||||||||||||||||||||||||
Revenue per days filled (r) | $ | 1,543 | $ | 1,511 | $ | 1,515 | $ | 1,512 | $ | 1,453 | |||||||||||||||||||||
(a) On |
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(b) Restructuring costs primarily related to senior management employee severance pay. | |||||||||||||||||||||||||||||||
(c) Legal settlement charge related to an agreement in principle to settle a class action lawsuit that has preliminary been approved by the court in 2014. | |||||||||||||||||||||||||||||||
(d) Impairment charges in the three months and year ended |
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(e) Loss on early extinguishment and modification of debt relate to the write-off of unamortized net debt issuance costs related to the repayment of term loan and revolver in 2013 and modification fees related to our prior credit facility in the third quarter of 2012. | |||||||||||||||||||||||||||||||
(f) The Company sold its clinical trial services business on
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(g) Adjusted EBITDA, a non-GAAP (Generally Accepted Accounting Principles) financial measure, is defined as income or loss from operations before depreciation, amortization, acquisition costs, restructuring costs, legal settlement charges, impairment charges and non-cash equity compensation. 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 income or loss from operations as an indicator of operating performance. Management uses Adjusted EBITDA as one performance measure in its annual cash incentive program for certain members of its management team. In addition, management monitors Adjusted EBITDA for planning purposes. Adjusted EBITDA, as defined, closely matches the operating measure typically used in the Company's credit facilities in calculating various ratios. Management believes Adjusted EBITDA, as defined, is useful to investors when evaluating the Company's performance as it excludes certain items that management believes are not indicative of the Company's operating performance. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company's consolidated revenue. | |||||||||||||||||||||||||||||||
(h) Adjusted (loss) income from continuing operations and Adjusted
(loss) income from continuing operations per diluted share, both
non-GAAP financial measures, are defined by (Loss) income from
continuing operations and (loss) earnings per diluted share before
acquisition costs, restructuring costs, legal settlement charges,
loss on early extinguishment and modification of debt, impairment
charges and deferred tax assets valuation allowance. Adjusted (loss)
income from continuing operations and Adjusted (loss) income from
continuing operations per diluted share should not be considered a
measure of financial performance under GAAP and have been provided
for consistency and comparability of the |
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(i) Adjusted net income (loss) and Adjusted net income (loss) per
diluted share, both non-GAAP financial measures, are defined by Net
(loss) income and Net (loss) income per diluted share before
acquisition costs, restructuring costs, legal settlement charges,
loss on early extinguishment and modification of debt, impairment
charges and deferred tax assets valuation allowance. Adjusted net
income (loss) and Adjusted net income (loss) per diluted share
should not be considered a measure of financial performance under
GAAP and have been provided for consistency and comparability of the
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(j) Certain prior year amounts have been reclassified to conform to the current period's presentation. | |||||||||||||||||||||||||||||||
(k) Segment data provided is in accordance with the Segment Reporting Topic of the FASB ASC. | |||||||||||||||||||||||||||||||
(l) Contribution income is defined as income or loss from operations before depreciation, amortization, acquisition costs, restructuring costs, legal settlement charges, 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. | |||||||||||||||||||||||||||||||
(m) Certain prior year amounts have been reclassified to conform to the current period's presentation. In 2013, the Company refined its methodology for allocating certain corporate overhead expenses and the nurse and allied staffing expenses to more accurately reflect this segment's profitability. | |||||||||||||||||||||||||||||||
(n) FTEs represent the average number of nurse and allied contract staffing personnel on a full-time equivalent basis. | |||||||||||||||||||||||||||||||
(o) Days worked is calculated by multiplying the FTEs by the number of days during the respective period. | |||||||||||||||||||||||||||||||
(p) Average revenue per FTE per day is calculated by dividing the nurse and allied staffing revenue by the number of days worked in the respective periods. Nurse and allied staffing revenue also includes revenue from permanent placement of nurses. | |||||||||||||||||||||||||||||||
(q) Days filled is calculated by dividing the total hours filled during the period by 8 hours. | |||||||||||||||||||||||||||||||
(r) Revenue per day filled is calculated by dividing the applicable revenue generated by the Company's physician staffing segment by days filled for the period presented. |
President and Chief Executive Officer
wgrubbs@crosscountry.com
Source:
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