Q1 2024 Cross Country Healthcare Inc Earnings Call Transcript
Key Points
- Revenue and adjusted EBITDA for Q1 2024 were in line with expectations, indicating stable financial performance.
- Physician Staffing business reported a significant increase in revenue, up double digits year-over-year, driven by higher billable days and revenue per day.
- Home care business showed robust growth, up mid-single digits sequentially and year-over-year, with over 1,700 FTEs staffed.
- Education business continued to expand, showing low double-digit sequential growth and now operating in over 20 states.
- Strong balance sheet with no debt, providing flexibility for strategic investments, share repurchases, and potential M&A activities.
- Demand for travel assignments continued to soften, with a significant market-wide decline affecting the company's travel business.
- Average bill rates for travel and local assignments are declining, impacting revenue and profitability.
- Gross margin decreased both sequentially and year-over-year, primarily due to tightening bill-pay spreads and increased burdens such as health insurance and workers' comp.
- US headcount reduced by more than 20% since the beginning of the year to align cost structure with current market demand, indicating potential challenges in scaling quickly when market conditions improve.
- Local and per diem business segments faced significant market headwinds, with double-digit declines in volume and revenue.
Good afternoon, everyone. Welcome to Cross Country Healthcare's earnings Conference Call for the First 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 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.
Thank you and good afternoon, everyone. I'm joined today by our President and Chief Executive Officer, John Martin, as well as Bill Burns, our Chief Financial Officer, and Mark Food Group President of delivery. Today's call will include a discussion of our financial results for the first quarter of 2024, as well as our outlook for the second quarter. A copy of our earnings press release is available on our
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