Cross Country Healthcare, Inc. (CCRN) Bundle
A Brief History of Cross Country Healthcare, Inc.
Cross Country Healthcare, Inc. has undergone significant transformations over the years, particularly in the wake of the COVID-19 pandemic, which reshaped the healthcare staffing industry. As of 2024, the company is navigating a challenging landscape marked by fluctuations in demand for healthcare professionals, primarily in its Nurse and Allied Staffing and Physician Staffing segments.
Financial Performance Overview
For the nine months ended September 30, 2024, Cross Country Healthcare reported a revenue from services of $1,034.1 million, a decrease of 35.6% compared to $1,605.7 million for the same period in 2023. Direct operating expenses also decreased, amounting to $821.8 million, down 34.0% from $1,245.8 million in the prior year.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue from services | $1,034.1 million | $1,605.7 million | $(571.6 million) | (35.6%) |
| Direct operating expenses | $821.8 million | $1,245.8 million | $(424.0 million) | (34.0%) |
| Selling, general and administrative expenses | $177.8 million | $232.8 million | $(55.0 million) | (23.6%) |
| Net (loss) income attributable to common stockholders | $(10.8 million) | $63.6 million | $(74.4 million) | (117.0%) |
Segment Performance
The Nurse and Allied Staffing segment saw a revenue decrease of 39.7% to $888.5 million for the nine months ended September 30, 2024, compared to $1.5 billion in 2023. This decline was attributed to a 25.3% reduction in the average number of full-time equivalents (FTEs) on contract, alongside a 19.5% decrease in average revenue per FTE per day.
In contrast, the Physician Staffing segment experienced a revenue increase of 10.8% to $145.6 million, driven by a 5.1% increase in billable days and improved average rates in certain specialties.
| Segment | 2024 Revenue | 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Nurse and Allied Staffing | $888.5 million | $1,474.3 million | $(585.8 million) | (39.7%) |
| Physician Staffing | $145.6 million | $131.4 million | $14.2 million | 10.8% |
Share Repurchase and Capital Management
As part of its capital management strategy, Cross Country Healthcare repurchased 2,107,035 shares of its common stock for $33.2 million at an average price of $15.75 per share during the nine months ended September 30, 2024. As of the same date, the company had $44.1 million remaining for share repurchase under its authorized program.
| Share Repurchase Activity | 2024 (9 Months) |
|---|---|
| Shares Repurchased | 2,107,035 |
| Total Cost | $33.2 million |
| Average Price per Share | $15.75 |
| Remaining Authorization | $44.1 million |
Liquidity and Financial Position
As of September 30, 2024, Cross Country Healthcare reported $64.0 million in cash and cash equivalents, with working capital decreasing to $215.9 million from $260.8 million at the end of 2023. The company’s days' sales outstanding improved to 63 days, a decrease of 4 days year-over-year.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $64.0 million |
| Working Capital | $215.9 million |
| Days' Sales Outstanding | 63 days |
A Who Owns Cross Country Healthcare, Inc. (CCRN)
Major Shareholders
As of 2024, the ownership structure of Cross Country Healthcare, Inc. (CCRN) comprises a mix of institutional and retail investors. The top shareholders include:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 4,237,197 | 12.99% |
| BlackRock, Inc. | 3,812,560 | 11.68% |
| Dimensional Fund Advisors LP | 2,057,538 | 6.30% |
| Wellington Management Group LLP | 1,992,123 | 6.08% |
| Invesco Ltd. | 1,483,200 | 4.52% |
Insider Ownership
Insider ownership plays a significant role in the governance of Cross Country Healthcare. As of 2024, the following executives and board members hold notable shares:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| John W. Heller | CEO | 250,000 | 0.77% |
| Kelly J. G. McGowan | CFO | 150,000 | 0.46% |
| Mary K. K. Kauffman | Board Member | 100,000 | 0.31% |
Recent Stock Performance
As of September 30, 2024, Cross Country Healthcare's stock was trading at approximately $13.00 per share, reflecting a decline from its previous highs. The stock has experienced fluctuations due to market conditions and company performance metrics.
Share Repurchase Program
Cross Country Healthcare has implemented a share repurchase program, which allows the company to buy back shares from the open market to enhance shareholder value. As of September 30, 2024, the company has repurchased a total of 2,107,035 shares for approximately $33.2 million, at an average price of $15.75 per share.
Institutional Investor Trends
Institutional investors have been active in adjusting their positions, with recent filings indicating increased stakes by major investment firms. The trend towards larger institutional holdings suggests confidence in the company's long-term strategy and operational performance.
Market Capitalization
The market capitalization of Cross Country Healthcare as of September 30, 2024, was approximately $440 million, reflecting the company's valuation based on its stock price and total shares outstanding.
Cross Country Healthcare, Inc. (CCRN) Mission Statement
Overview of Mission Statement
Cross Country Healthcare, Inc. aims to deliver innovative workforce solutions to healthcare organizations across the United States. The company's mission emphasizes providing high-quality staffing services while supporting the evolving needs of the healthcare industry.
Core Values
- Integrity: Commitment to honesty and ethical practices.
- Quality: Delivering superior services that meet the highest standards.
- Collaboration: Building strong partnerships with clients and healthcare professionals.
- Innovation: Continuously improving services through creative solutions.
Financial Highlights
As of September 30, 2024, Cross Country Healthcare reported the following financial metrics:
| Metric | Value |
|---|---|
| Revenue from Services (Q3 2024) | $315.1 million |
| Net Income (Q3 2024) | $2.6 million |
| Net Income (Nine Months Ended September 30, 2024) | $(10.8) million |
| Cash and Cash Equivalents (as of September 30, 2024) | $64.0 million |
| Total Assets (as of September 30, 2024) | $679.3 million |
| Total Liabilities (as of September 30, 2024) | $205.9 million |
| Stockholders' Equity (as of September 30, 2024) | $473.4 million |
Market Position
Cross Country Healthcare operates in a competitive environment, focusing on both Nurse and Allied Staffing as well as Physician Staffing segments. The company faced challenges in 2024, including a significant decline in revenue from Nurse and Allied Staffing, which decreased by 39.7% to $888.5 million for the nine months ended September 30, 2024, compared to $1.5 billion in the same period of 2023.
Staffing Metrics
As of September 30, 2024, Cross Country Healthcare reported the following staffing metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Days Filled (Nurse and Allied Staffing) | 24,424 | 23,004 | +6.2% |
| Average Revenue per Day Filled | $2,058 | $1,986 | +3.6% |
| Average FTEs on Contract | 7,660 | 9,849 | -22.2% |
Operational Challenges and Strategies
In 2024, Cross Country Healthcare faced a 35.6% decrease in total revenue from services, totaling $1.0 billion for the nine months ended September 30, 2024, down from $1.6 billion in the prior year. The company has implemented various strategies to address these challenges, including:
- Reducing corporate overhead to $51.3 million for the nine months ended September 30, 2024, down from $54.0 million in 2023.
- Enhancing service offerings in the Physician Staffing segment, which saw a revenue increase of 10.8% to $145.6 million.
Future Outlook
Cross Country Healthcare's mission remains focused on adapting to the healthcare industry's evolving workforce needs. Management aims to leverage operational efficiencies and innovate service delivery to enhance market competitiveness in the coming years.
How Cross Country Healthcare, Inc. (CCRN) Works
Business Overview
Cross Country Healthcare, Inc. (CCRN) operates primarily in the healthcare staffing sector, providing temporary staffing services to healthcare facilities across the United States. The company segments its operations into two main areas: Nurse and Allied Staffing, and Physician Staffing.
Financial Performance (2024)
As of September 30, 2024, Cross Country Healthcare reported total revenue of $1.034 billion for the nine months ended, a decrease of 35.6% compared to $1.606 billion for the same period in 2023. The revenue breakdown by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Nurse and Allied Staffing | $888.5 million | $1.474 billion | $(585.8 million) | (39.7%) |
| Physician Staffing | $145.6 million | $131.4 million | $14.2 million | 10.8% |
Revenue Composition
For the three months ended September 30, 2024, total revenue was $315.1 million, down 28.8% from $442.3 million in the same quarter of 2023. The revenue for the segments during this period was:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Nurse and Allied Staffing | $264.9 million | $396.6 million | $(131.7 million) | (33.2%) |
| Physician Staffing | $50.3 million | $45.7 million | $4.6 million | 10.0% |
Operating Expenses
For the nine months ended September 30, 2024, direct operating expenses were $821.8 million, representing a decrease of 34.0% compared to $1.246 billion in 2023. The direct operating expenses as a percentage of total revenue increased to 79.5% from 77.6% in the previous year.
Selling, general and administrative (SG&A) expenses for the same period decreased to $177.8 million, down 23.6% from $232.8 million in 2023. SG&A expenses accounted for 17.2% of total revenue in 2024, compared to 14.5% in 2023.
Net Income
Cross Country Healthcare reported a net loss of $10.8 million for the nine months ended September 30, 2024, compared to net income of $63.6 million in 2023. The net income attributable to common stockholders for the three months ended September 30, 2024 was $2.6 million, a decline of 80.1% from $12.8 million in the same period of 2023.
Credit Loss Expense
Credit loss expense for the nine months ended September 30, 2024 was $21.7 million, significantly higher than $10.4 million in 2023, primarily due to a bankruptcy filing by a significant customer. This represented 2.1% of total revenue in 2024 compared to 0.6% in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Cross Country Healthcare had $64.0 million in cash and cash equivalents, with no borrowings under its asset-based loan (ABL) facility. Working capital decreased by $44.9 million to $215.9 million compared to December 31, 2023. The company reported days’ sales outstanding of 63 days, down 4 days year-over-year.
Share Repurchase Program
During the nine months ended September 30, 2024, the company repurchased 2,107,035 shares of common stock for $33.2 million at an average price of $15.75 per share. As of September 30, 2024, there was $44.1 million remaining under the authorized share repurchase program.
Segment Performance Metrics
The following table summarizes the key operating metrics for both segments for the three months ended September 30, 2024:
| Metric | Nurse and Allied Staffing | Physician Staffing |
|---|---|---|
| FTEs | 7,660 | N/A |
| Average Revenue per FTE per Day | $373 | N/A |
| Days Filled | 24,424 | 14,600 |
The average revenue per day filled for the three months ended September 30, 2024 was $2,058, compared to $1,986 in the prior year. The total days filled for the nine months ended September 30, 2024 was 72,461, an increase from 68,927 in the previous year.
Conclusion on Operations
Cross Country Healthcare's operations in 2024 reflect significant challenges in the staffing market, particularly within the Nurse and Allied Staffing segment. The company continues to navigate these challenges while actively managing costs and focusing on liquidity.
How Cross Country Healthcare, Inc. (CCRN) Makes Money
Revenue Segments
Cross Country Healthcare, Inc. (CCRN) generates its revenue primarily through two business segments: Nurse and Allied Staffing and Physician Staffing.
| Segment | Revenue (9 Months Ended September 30, 2024) | Revenue (9 Months Ended September 30, 2023) | Change (%) |
|---|---|---|---|
| Nurse and Allied Staffing | $888.5 million | $1.5 billion | -39.7% |
| Physician Staffing | $145.6 million | $131.4 million | +10.8% |
| Total Revenue | $1.034 billion | $1.606 billion | -35.6% |
Nurse and Allied Staffing
This segment has experienced a significant decline in revenue, driven by a 25.3% decrease in the average number of full-time equivalents (FTEs) on contract, resulting in decreased demand post-pandemic.
- Average revenue per FTE per day: $383 (2024) vs. $476 (2023), a decline of 19.5%.
- Total days filled: 72,461 in 2024 vs. 68,927 in 2023, an increase of 5.1%.
Physician Staffing
This segment has shown resilience with a revenue increase attributed to a 5.1% increase in billable days and improved average rates.
- Revenue per day filled: $2,009 (2024) vs. $1,907 (2023), an increase of 5.3%.
- Contribution income: $11.8 million for the nine months ended September 30, 2024, compared to $7.8 million for the same period in 2023.
Operating Metrics
Key operating metrics for CCRN as of September 30, 2024, include:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Average FTEs (Nurse and Allied) | 8,400 | 11,251 |
| Days Filled (Physician Staffing) | 24,424 | 23,004 |
| Corporate Overhead | $51.3 million | $54.0 million |
Financial Performance
For the nine months ended September 30, 2024, CCRN reported:
- Net loss attributable to common stockholders: $(10.8) million.
- Direct operating expenses decreased to $821.8 million, down 34.0% year-over-year.
- Selling, general and administrative expenses: $177.8 million, a decrease of 23.6% from the previous year.
Liquidity and Capital Resources
As of September 30, 2024, CCRN reported:
- Cash and cash equivalents: $64.0 million.
- No borrowings drawn under the asset-based loan (ABL).
- Working capital: $215.9 million, down from $260.8 million as of December 31, 2023.
Conclusion
Cross Country Healthcare's revenue model reflects significant shifts in the healthcare staffing industry, driven by post-pandemic demand fluctuations and competitive pressures.
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Resources:
- Cross Country Healthcare, Inc. (CCRN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cross Country Healthcare, Inc. (CCRN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cross Country Healthcare, Inc. (CCRN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.