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Jun 30, 2021
Cross Country Healthcare Q2 2021 Earnings Report
Second quarter financial results announced, exceeding expectations due to ability to attract and place professionals.
Key Takeaways
Cross Country Healthcare reported a strong second quarter, with revenue up 53% year-over-year and net income of $11.5 million, a significant improvement from the prior year's net loss. The company benefited from near-record demand and a tight labor market, driving higher compensation costs.
Consolidated revenue increased by 53% year-over-year to $331.8 million.
Net income attributable to common shareholders was $11.5 million compared to a net loss of $14.2 million in the prior year.
Diluted EPS was $0.31 per share, compared to a loss of $0.39 per share in the prior year.
Adjusted EBITDA was $24.3 million, or 7.3% of revenue, compared to $11.6 million, or 5.4% of revenue in the prior year.
Cross Country Healthcare
Cross Country Healthcare
Cross Country Healthcare Revenue by Segment
Revenue by Segment
Nurse and Allied Staffing Revenue
CapyFin.comPhysician Staffing Revenue
CapyFin.com Forward Guidance
For Q3 2021, Cross Country Healthcare expects revenue to be between $310 million and $320 million and Adjusted EPS to be between $0.30 and $0.35.
Positive Outlook
- Revenue is expected to be between $310 million and $320 million, representing a 60% - 65% year-over-year increase.
- Gross Profit Margin is expected to be between 21.8% and 22.3%.
- Adjusted EBITDA is projected to be between $18.0 million and $20.0 million, a 109% - 133% increase year-over-year.
- Adjusted EPS is anticipated to be between $0.30 and $0.35.
- Bill and pay rates are expected to continue to normalize through the third quarter with average bill rates remaining higher than the prior year though declining sequentially for certain specialties.
Challenges Ahead
- Revenue is expected to decline sequentially by (7)% - (4)%.
- Gross Profit Margin is expected to decrease year-over-year by (290) bps - (240) bps.
- Adjusted EBITDA is expected to decline sequentially by (26)% - (18)%.
- Adjusted EPS is expected to decline sequentially by $(0.17) - $(0.12).
- The above ranges do not include the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future share repurchases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income