Cross Country Healthcare Revenue Down 28%, Shares Drop

Cross Country Healthcare, Inc. has recently released its 10-K report, detailing its operations and financial performance for the year ended December 31, 2023. The company provides talent management and consultative services for healthcare clients in the United States, operating in two segments: Nurse and Allied Staffing, and Physician Staffing.

  • Revenue from services decreased by 28% year-over-year to $2.0 billion for the year ended December 31, 2023, primarily due to declines in travel and local volume and average bill rates in the Nurse and Allied Staffing segment. However, there was double-digit revenue growth in the Cross Country Education and Physician Staffing segments.
  • Net income attributable to common stockholders for the year ended December 31, 2023, was $72.6 million, a significant decrease from $188.5 million in the previous year.
  • The company repaid all outstanding obligations of $73.9 million under the term loan and terminated the Term Loan Agreement on June 30, 2023.
  • Cash flow provided by operating activities was $248.5 million for the year ended December 31, 2023, with net repayments of $150.7 million on the term loan and senior secured asset-based credit facility.
  • As of December 31, 2023, the company had $17.1 million in cash and cash equivalents with no borrowings drawn under the ABL. Borrowing base availability under the ABL was $220.6 million, with $13.8 million of undrawn letters of credit outstanding, leaving $206.8 million of excess availability.
  • The company continues to invest in core technologies and launched IRP and per diem modules on Intellify® and XperienceTM in 2023, aiming to drive productivity and revenue.

Financial Metrics:

  • Revenue from services: $2,019,728,000 in 2023, a decrease of 28.0% from $2,806,609,000 in 2022.
  • Net income attributable to common stockholders: $72,631,000 in 2023, a decrease of 61.5% from $188,461,000 in 2022.
  • Interest expense: $8,094,000 in 2023, a decrease of 43.8% from $14,391,000 in 2022.
  • Income tax expense: $30,263,000 in 2023, a decrease of 55.4% from $67,864,000 in 2022.

The company's Nurse and Allied Staffing segment represented approximately 91% of total revenue for the year ended December 31, 2023, while the Physician Staffing segment represented approximately 9% of total revenue.

As a result of these announcements, the company's shares have moved -3.4% on the market, and are now trading at a price of $16.41. For more information, read the company's full 10-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.