On November 1, 2023, Cross Country Healthcare Inc (CCRN, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a 30% year-over-year decrease in revenue, amounting to $442.3 million. The net income attributable to common stockholders was $12.8 million, a 63% decrease from the same period last year. The diluted earnings per share (EPS) was $0.36 compared to $0.93 in the prior year.
Financial Highlights
The company's gross profit margin was 22.0%, down 60 basis points year-over-year. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $27.2 million or 6.2% of revenue, as compared with $63.8 million or 10.0% of revenue in the prior year. The adjusted EPS was $0.39 compared to $1.07 in the prior year.
For the nine months ended September 30, 2023, consolidated revenue was $1.6 billion, a decrease of 26% year-over-year. The net income attributable to common stockholders was $63.6 million, or $1.78 per diluted share, compared to $149.7 million, or $3.97 per diluted share, in the prior year.
Business Segment Highlights
The Nurse and Allied Staffing segment reported a revenue decrease of 35% year-over-year. However, the Physician Staffing segment saw a 92% year-over-year increase in revenue. The company also signed its largest Intellify® agreement to date with an expected annual spend over $100 million.
Cash Flow and Balance Sheet Highlights
Net cash provided by operating activities for the quarter was $70.3 million. For the nine months ended September 30, 2023, net cash provided by operating activities was $236.4 million as compared to $129.7 million in the prior year. The company ended Q3 with no debt and repurchased approximately 600,000 shares of common stock for $14.8 million.
Outlook for Q4 2023
The company expects revenue to be between $400 million and $410 million for Q4 2023, representing a 36% to 35% year-over-year decrease. Adjusted EBITDA is expected to be between $19.0 million and $24.0 million, a 67% to 58% year-over-year decrease.
Despite the challenging market, especially for nursing, Cross Country Healthcare Inc (CCRN, Financial) is pleased with the growth in other lines of business like physician staffing, education, and homecare staffing. The company is well-positioned to continue making investments that lead to long-term profitable growth.
Explore the complete 8-K earnings release (here) from Cross Country Healthcare Inc for further details.
