Q2 2024 Cross Country Healthcare Inc Earnings Call Transcript
Key Points
- Cross Country Healthcare Inc (CCRN) reported second quarter 2024 revenue and adjusted EBITDA near the high end of guidance ranges, indicating strong execution in a challenging environment.
- Travel demand has increased by more than 20% since the start of the second quarter, driven by market recovery and recent MSP wins.
- The company anticipates sequential revenue growth in the fourth quarter, supported by a robust sales pipeline and strong momentum in Locums, Education, and Homecare segments.
- Cross Country Healthcare Inc (CCRN) has successfully reduced U.S. headcount by more than 20% in 2024, aligning cost structure with demand and enhancing operational efficiency.
- Intellify, the company's client-facing Workforce Solutions platform, has gained significant traction with over 40 clients and 5,500 active users, fueling the sales pipeline and enhancing service delivery.
- Consolidated revenue for the second quarter was down 10% sequentially and 37% year-over-year, primarily due to declines in travel and local assignments in large acute care settings.
- Gross margin decreased by 200 basis points year-over-year, impacted by higher lodging subsidies and insurance costs, which continue to pressure margins.
- The company reported a bad debt expense of $19 million due to a bankruptcy of a single MSP client, affecting financial performance.
- Adjusted EBITDA margin remains constrained at mid-single digits, with challenges in achieving the high single-digit target in the near term.
- The competitive environment remains intense, with many new entrants in the market, posing challenges for smaller and mid-sized companies.
Good afternoon, everyone. Welcome to Cross Country Healthcare's earnings conference call for the second quarter 2024. Please be advised that this call is being recorded and a replay of this webcast will be available on the company's website. Details for accessing the audio replay can be found in the company's earnings release issued this afternoon. At the conclusion of the prepared remarks, I will open the lines for questions.
I would now like to turn the call over to Josh Vogel, Cross Country Healthcare's Vice President of Investor Relations. Thank you, and please go ahead, sir.
Thank you and good afternoon, everyone. I'm joined today by our President and Chief Executive Officer, John Martins; as well as Bill Burns, our Chief Financial Officer; and Marc Krug, Group President of Delivery. Today's call will include a discussion of our financial results for the second quarter of 2024 as well as our outlook for the third quarter. A copy of our earnings press release is available on our
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