Cross Country Healthcare Q1 2024 – 39% Revenue Decline

By Bobby Samwell • Thursday, May 02 06:14 • Permanent Link

Cross Country Healthcare, Inc. has released its financial results for the first quarter ended March 31, 2024, revealing a decline in several key metrics compared to the same period last year.

The company reported a 39% decrease in revenue, which amounted to $379.2 million for the first quarter of 2024. Additionally, the gross profit margin decreased by 200 basis points year-over-year to 20.4%.

Net income attributable to common stockholders also saw a significant decline, dropping by 91% to $2.7 million, while diluted earnings per share (EPS) stood at $0.08, down from $0.81 in the prior year.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $15.3 million, representing 4.0% of revenue, a decrease of 71% year-over-year. Adjusted EPS for the quarter was $0.19, compared to $0.84 in the prior year.

In terms of business segment highlights, the nurse and allied staffing division experienced a 43% year-over-year decrease in revenue, contributing to a decline in contribution income. Average field contract personnel on a full-time equivalent (FTE) basis also decreased to 9,124 from 12,518 in the prior year.

On a positive note, the physician staffing segment saw a 16% increase in revenue year-over-year, with contribution income rising to $3.1 million from $1.7 million in the prior year.

The company's cash flows provided by operations for the first quarter of 2024 decreased by 87% year-over-year to $6.0 million, down from $46.9 million in the same period in 2023.

Cross Country Healthcare also highlighted that it had no debt outstanding as of March 31, 2024, and had repurchased approximately 300,000 shares of common stock for $6.4 million during the quarter.

Looking ahead, the company provided guidance for the second quarter of 2024, expecting a revenue range of $330 million to $340 million, representing a further decline from the first quarter of 2024.

Following these announcements, the company's shares moved 1.7%, and are now trading at a price of $17.9. If you want to know more, read the company's complete 8-K report here.

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