Cross Country Healthcare Q3 2021 Earnings Report
Key Takeaways
Cross Country Healthcare reported a strong third quarter with a 93% year-over-year increase in revenue, reaching $374.9 million. Net income attributable to common shareholders was $23.4 million, a substantial improvement from the prior year's net loss. Diluted EPS was $0.62, and adjusted EBITDA reached $30.1 million, or 8.0% of revenue.
Year-to-date revenue exceeded $1.0 billion for the first time in the Company's history.
Year-over-year and sequential increase in volume across all segments.
Third quarter financial performance exceeded guidance across all areas.
Adjusted EBITDA margin exceeded 8% for the second time this year.
Cross Country Healthcare
Cross Country Healthcare
Cross Country Healthcare Revenue by Segment
Forward Guidance
The company provided revenue guidance for Q4 2021 of $580 million - $590 million, gross profit margin of 22.2% - 22.7%, adjusted EBITDA of $63.0 million - $68.0 million, and adjusted EPS of $1.01 - $1.11.
Positive Outlook
- Expect average bill rates to rise again in Q4 2021.
- Expect the pandemic to continue impacting our financial performance through at least the end of the current fiscal year.
- COVID-19 has driven up bill rates with regional spikes in demand related to the Delta variant.
- The impact from states and healthcare systems enacting vaccination mandates is exacerbating an already tight supply market.
- Experiencing growing needs in non-COVID assignments resulting in increased demand from clinicians leaving the bedside due to burnout or retirement.
Challenges Ahead
- Gross Profit Margin expected to be 22.2% - 22.7%.
- Potential impact of any future divestitures, mergers, acquisitions, or other business combinations.
- Changes in debt structure.
- Future share repurchases.
- Actual results may differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income