Cross Nation Healthcare Pronounces Fourth Quarter and Full 12 months 2021 Monetary Outcomes

BOCA RATON, Fla., February 23, 2022–(BUSINESS WIRE)–Cross Nation Healthcare, Inc. (the “Firm”) (Nasdaq: CCRN) at present introduced monetary outcomes for its fourth quarter and full yr ended December 31, 2021.

SELECTED FINANCIAL INFORMATION:

{Dollars} are in hundreds, besides per share quantities

This autumn 2021

Variance
This autumn 2021 vs
This autumn 2020

Variance
This autumn 2021 vs
Q3 2021

Full 12 months 2021

Variance
2021 vs
2020

Income

$

640,679

197

%

71

%

$

1,676,652

100

%

Gross revenue margin*

23.0

%

(220

)

bps

60

bps

22.4

%

(180

)

bps

Internet revenue attributable to frequent stockholders

$

77,573

1,582

%

231

%

$

132,002

1,118

%

Diluted EPS

$

2.07

$

1.94

$

1.45

$

3.53

$

3.89

Adjusted EBITDA*

$

80,933

604

%

169

%

$

162,053

346

%

Adjusted EBITDA margin*

12.6

%

730

bps

460

bps

9.7

%

540

bps

Adjusted EPS*

$

1.40

$

1.21

$

0.79

$

3.06

$

2.60

Money flows from operations

$

(73,365

)

(3,903

)

%

(2,491

)

%

$

(85,618

)

(415

)

%

* Check with accompanying tables and dialogue of non-GAAP (Usually Accepted Accounting Rules) monetary measures under.

Enterprise Highlights

  • Historic fourth quarter and full yr monetary efficiency on account of strong execution

  • Fourth quarter monetary efficiency exceeded all authentic steerage ranges

  • 12 months-over-year and sequential quantity progress throughout all traces of enterprise

  • Adjusted EBITDA margin of 12.6% for the quarter and 9.7% for the yr

  • Robust double digit progress from Cross Nation Workforce Options Group

  • Two strategic acquisitions consummated in 2021 for residence well being and schooling

  • Elevated borrowing capability by $75.0 million through the quarter to fund natural progress

“Over the past three years, we’ve utterly remodeled the way in which Cross Nation Healthcare does enterprise and it exhibits in our historic outcomes. Purchasers and clinicians alike are more and more seeing the great worth proposition of working with this superb staff, and we’re on a strong trajectory as we enter 2022 for continued progress amidst a continued atmosphere of sturdy demand and elevated charges,” mentioned Kevin Clark, Co-Founder and CEO of Cross Nation Healthcare. He continued, “As its chairman and with John Martins assuming the CEO function in March, I’m assured that we will proceed to ship distinctive efficiency for quarters to come back.”

Fourth quarter consolidated income was $640.7 million, a rise of 197% year-over-year and 71% sequentially. Consolidated gross revenue margin was 23.0%, down 220 foundation factors year-over-year and up 60 foundation factors sequentially. Internet revenue attributable to frequent stockholders was $77.6 million in comparison with $4.6 million within the prior yr and $23.4 million within the prior quarter. Diluted earnings per share (EPS) was $2.07 per share in comparison with $0.13 per share within the prior yr and $0.62 per share within the prior quarter. Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) was $80.9 million or 12.6% of income, as in contrast with $11.5 million or 5.3% of income within the prior yr, and $30.1 million or 8.0% of income within the prior quarter. Adjusted EPS was $1.40 in comparison with $0.19 within the prior yr and $0.61 within the prior quarter.

For the yr ended December 31, 2021, consolidated income was $1.7 billion, a rise of 100% year-over-year. Consolidated gross revenue margin was 22.4%, down 180 foundation factors year-over-year. Internet revenue attributable to frequent stockholders was $132.0 million, or 3.53 per diluted share, in comparison with a internet lack of $13.0 million, or $0.36 per diluted share, within the prior yr. Adjusted EBITDA was $162.1 million or 9.7% of income, as in contrast with $36.3 million or 4.3% of income within the prior yr. Adjusted EPS was $3.06 in comparison with $0.46 within the prior yr.

Quarterly Enterprise Section Highlights

Nurse and Allied Staffing

Income was $620.4 million, a 212% enhance year-over-year and 74% sequentially. Contribution revenue was $92.4 million, in comparison with $22.8 million within the prior yr and $40.6 million within the prior quarter. Common area contract personnel on a full-time equal (FTE) foundation had been 11,520 as in contrast with 5,798 within the prior yr and 9,003 within the prior quarter. Income per FTE per day was $582 in comparison with $368 within the prior yr and $425 within the prior quarter. The rise within the common variety of FTEs was primarily on account of headcount progress in journey nurse and allied which grew by greater than double over the prior yr, in addition to further headcount ensuing from the Cross Nation Workforce Options Group (WSG) acquisition. Within the fourth quarter, common invoice charges rose as we continued to expertise vital demand for our companies, as a result of persevering with impacts from COVID-19, in addition to the general tight labor provide for clinicians and professionals. All through the pandemic, we’ve acted with the utmost integrity, working collaboratively with shoppers on adjusting invoice charges as a way to adapt to the quickly altering market circumstances. Guaranteeing our shoppers have the persevering with provide of clinicians and professionals has remained our high precedence, and in consequence, for the yr ended December 31, 2021, our consolidated gross revenue margin decreased 180 foundation factors year-over-year.

Doctor Staffing

Income was $20.2 million, a rise of 23% year-over-year and eight% sequentially. Contribution revenue was $1.4 million, a rise in comparison with $0.9 million in each the prior yr and the prior quarter. Complete days crammed had been 12,739 as in contrast with 9,911 within the prior yr and 12,187 within the prior quarter. Income per day crammed was $1,588 as in contrast with $1,658 within the prior yr and $1,540 within the prior quarter. The rise in income was primarily on account of a rise in quantity in a number of specialties. The rise in contribution revenue was pushed by increased income, partially offset by increased direct prices.

Money Movement and Steadiness Sheet Highlights

Money stream utilized in operations was $73.4 million for the quarter and $85.6 million for the total yr. The first driver of the usage of money for each the quarter and the yr has been as a result of funding in internet working capital related to the historic progress in our enterprise, with accounts receivable rising $318.4 million because the begin of the yr. Our DSO or days’ gross sales excellent was 58 days as of December 31, 2021, flat year-over-year and down 3 days sequentially.

As beforehand introduced in an 8-Ok filed December 16, 2021, the Firm entered into an asset buy settlement with Chosen on December 16, 2021. The acquisition value included $3.5 million in money and $1.5 million in shares of the Firm’s frequent inventory. The Firm additionally amended its Time period Mortgage Credit score Settlement on November 18, 2021, which offered for an incremental time period mortgage within the quantity of $75.0 million.

At December 31, 2021, the Firm had $1.0 million in money and money equivalents and $174.3 million principal steadiness on its time period mortgage, with $9.2 million of borrowings drawn below its asset-based mortgage facility (ABL), and $18.2 million of letters of credit score excellent. Availability below the ABL is topic to a borrowing base, which was $150.0 million as of December 31, 2021, with $122.6 million obtainable for borrowing as of December 31, 2021.

Outlook for First Quarter 2022

The steerage under applies solely to administration’s expectations for the primary quarter of 2022.

12 months-over-12 months

Sequential

Q1 2022 Vary

Change

Change

Income

$740 million – $750 million

125% – 128%

16% – 17%

Gross Revenue Margin*

21.5% – 22.0%

(20) bps – 30 bps

(150) bps – (100) bps

Adjusted EBITDA*

$80.0 million – $85.0 million

199% – 218%

(1)% – 5%

Adjusted EPS*

$1.38 – $1.48

$0.80 – $0.90

($0.02) – $0.08

* Check with dialogue of non-GAAP monetary measures under.

The above estimates are primarily based on present administration expectations and, as such, are forward-looking and precise outcomes might differ materially. The above ranges don’t embrace the potential affect of any future divestitures, mergers, acquisitions, or different enterprise mixtures, modifications in debt construction, or future share repurchases.

For the primary quarter of 2022, common invoice charges are anticipated to stay elevated at or barely above the fourth quarter. As we progress all through 2022, we anticipate that charges will probably decline as COVID-19 hospitalizations decline. Nonetheless, demand stays strong amidst a backdrop of tight provide for clinicians and professionals, which is able to probably proceed all through a lot of 2022. Although we don’t give full yr steerage, we do consider that the corporate will proceed to see quantity progress all through 2022, as we proceed to put money into each added capability and our applied sciences. For the approaching yr, we anticipate increasing our IT tasks, greater than doubling the extent of investments from 2021.

See accompanying non-GAAP monetary measures and tables under.

INVITATION TO CONFERENCE CALL

The Firm will maintain its quarterly convention name on Wednesday, February 23, 2022, at 5:00 P.M. Japanese Time to debate its fourth quarter and full yr 2021 monetary outcomes. This name might be webcast reside and may be accessed on the Firm’s web site at ir.crosscountryhealthcare.com or by dialing 888-566-1290 from wherever within the U.S. or by dialing 773-799-3776 from non-U.S. areas – Passcode: Cross Nation. A replay of the webcast might be obtainable from February twenty third by means of March ninth on the Firm’s web site and a replay of the convention name might be obtainable by phone by calling 800-391-9853 from wherever within the U.S. or 203-369-3269 from non-U.S. areas – Passcode: 2022.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Nation Healthcare, Inc. (CCH) is a market main workforce options tech-enabled staffing, recruitment, and advisory agency that has 35 years of business expertise and perception. We clear up complicated labor-related challenges for purchasers whereas offering high-quality outcomes and distinctive affected person care. As a multi-year Better of Staffing® award winner, we’re dedicated to an exceptionally excessive stage of service to each our shoppers and our homecare, schooling, and scientific and non-clinical healthcare professionals. Our Firm was the primary publicly traded staffing agency to acquire The Joint Fee Certification, which we nonetheless maintain with a Letter of Distinction. In 2021, we had been listed as one of many high 4 staffing and recruiting employers for ladies by InHerSights and earned Energage’s inaugural 2021 Prime Workplaces USA award. We had been additionally Licensed™ by Nice Place to Work®. We have now a longstanding historical past of investing in variety, equality, and inclusion as a key part of the group’s total company social duty program which is carefully aligned with its core values to create a greater future for its individuals, communities, the planet, and its shareholders.

Copies of this and different information releases in addition to further details about the Firm may be obtained on-line at ir.crosscountryhealthcare.com. Shareholders and potential buyers also can register to routinely obtain the Firm’s press releases, filings with the Securities and Trade Fee (SEC), and different notices by e-mail.

NON-GAAP FINANCIAL MEASURES

This press launch and the accompanying monetary assertion tables reference non-GAAP monetary measures, equivalent to gross revenue margin, adjusted EBITDA, and adjusted EPS. Such non-GAAP monetary measures are offered as further info and shouldn’t be thought-about substitutes for, or superior to, monetary measures calculated in accordance with U.S. GAAP. Such non-GAAP monetary measures are offered for consistency and comparability to prior yr outcomes; moreover, administration believes they’re helpful to buyers when evaluating the Firm’s efficiency as they exclude sure gadgets that administration believes should not indicative of the Firm’s future working efficiency. Professional forma measures, if relevant, are adjusted to incorporate the outcomes of our acquisitions, and exclude the outcomes of divestments, as if the transactions occurred at first of the durations talked about. Such non-GAAP monetary measures might differ materially from the non-GAAP monetary measures utilized by different firms. The monetary assertion tables that accompany this press launch embrace a reconciliation of every non-GAAP monetary measure to essentially the most instantly comparable U.S. GAAP monetary measure and a extra detailed dialogue of every monetary measure; as such, the monetary assertion tables must be learn along side the presentation of those non-GAAP monetary measures.

FORWARD LOOKING STATEMENTS

Along with historic info, this press launch comprises statements regarding our future outcomes (together with sure projections and enterprise tendencies) which are “forward-looking statements” inside the that means of Part 27A of the Securities Act of 1933, as amended, Part 21E of the Securities Trade Act of 1934, as amended (the “Trade Act”), and the Personal Securities Litigation Reform Act, and are topic to the “secure harbor” created by these sections. Ahead-looking statements include statements which are predictive in nature, rely upon or confer with future occasions. Phrases equivalent to “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “suggests”, “seems”, “seeks”, “will”, “may”, and variations of such phrases and related expressions are supposed to establish forward-looking statements. Ahead-looking statements contain recognized and unknown dangers, uncertainties and different elements which will trigger our precise outcomes and efficiency to be materially completely different from any future outcomes or efficiency expressed or implied by these forward-looking statements. These elements embrace, however should not restricted to, the next: the potential impacts of the COVID-19 pandemic on our enterprise, monetary situation, and outcomes of operations, our potential to draw and retain certified nurses, physicians and different healthcare personnel, prices and availability of short-term housing for our journey healthcare professionals, demand for the healthcare companies we offer, each nationally and within the areas by which we function, the functioning of our info techniques, the impact of cyber safety dangers and cyber incidents on our enterprise, the impact of present or future authorities regulation and federal and state legislative and enforcement initiatives on our enterprise, our shoppers’ potential to pay us for our companies, our potential to efficiently implement our acquisition and growth methods, together with our potential to efficiently combine acquired companies and notice synergies from such acquisitions, the impact of potential liabilities, loses, or different exposures in reference to the WSG acquisition, the impact of liabilities and different claims asserted towards us, the impact of competitors within the markets we serve, our potential to efficiently defend the Firm, its subsidiaries, and its officers and administrators on the deserves of any lawsuit or decide its potential legal responsibility, if any, and different elements set forth in Merchandise 1A. “Danger Elements” within the Firm’s Annual Report on Kind 10-Ok for the yr ended December 31, 2020, and in our different filings with the SEC. It is best to seek the advice of any additional disclosures the Firm makes on associated topics in its filings with the SEC.

Though we consider that these statements are primarily based upon cheap assumptions, we can’t assure future outcomes and readers are cautioned to not place undue reliance on these forward-looking statements, which replicate administration’s opinions solely as of the date of this press launch. There may be no assurance that (i) we’ve appropriately measured or recognized the entire elements affecting our enterprise or the extent of those elements’ probably affect, (ii) the obtainable info with respect to those elements on which such evaluation is predicated is full or correct, (iii) such evaluation is appropriate and/or (iv) our technique, which is predicated partially on this evaluation, might be profitable. The Firm undertakes no obligation to replace or revise forward-looking statements. All references to “we”, “us”, “our”, or “Cross Nation” on this press launch imply Cross Nation Healthcare, Inc. and its subsidiaries.

Cross Nation Healthcare, Inc.

Consolidated Statements of Operations

(Unaudited, quantities in hundreds, besides per share information)

Three Months Ended

12 months Ended

December 31,

December 31,

September 30,

December 31,

December 31,

2021

2020

2021

2021

2020

Income from companies

$

640,679

$

215,606

$

374,905

$

1,676,652

$

836,417

Working bills:

Direct working bills

493,529

161,214

291,111

1,301,653

633,685

Promoting, common and administrative bills

65,774

44,870

52,847

215,292

173,809

Dangerous debt expense

2,372

652

1,441

4,783

3,035

Depreciation and amortization

2,720

2,199

2,680

9,852

12,671

Acquisition and integration-related prices

83

61

1,068

77

Restructuring prices

239

842

318

2,630

6,052

Impairment prices

166

2,070

16,248

Complete working bills

564,717

209,943

348,458

1,537,348

845,577

Revenue (loss) from operations

75,962

5,663

26,447

139,304

(9,160

)

Different bills (revenue):

Curiosity expense

2,817

671

2,182

6,866

2,890

Different (revenue) expense, internet

(154

)

326

(375

)

(770

)

280

Revenue (loss) earlier than revenue taxes

73,299

4,666

24,640

133,208

(12,330

)

Revenue tax (profit) expense

(4,274

)

(156

)

1,207

1,206

(188

)

Consolidated internet revenue (loss)

77,573

4,822

23,433

132,002

(12,142

)

Much less: Internet revenue attributable to noncontrolling curiosity in subsidiary

210

820

Internet revenue (loss) attributable to frequent stockholders

$

77,573

$

4,612

$

23,433

$

132,002

$

(12,962

)

Internet revenue (loss) per share attributable to frequent stockholders – Primary

$

2.10

$

0.13

$

0.63

$

3.60

$

(0.36

)

Internet revenue (loss) per share attributable to frequent stockholders – Diluted

$

2.07

$

0.13

$

0.62

$

3.53

$

(0.36

)

Weighted common frequent shares excellent:

Primary

36,974

36,177

36,963

36,689

36,088

Diluted

37,736

36,778

37,582

37,392

36,088

Cross Nation Healthcare, Inc.

Reconciliation of Non-GAAP Monetary Measures

(Unaudited, quantities in hundreds)

Three Months Ended

12 months Ended

December 31,

December 31,

September 30,

December 31,

December 31,

2021

2020

2021

2021

2020

Adjusted EBITDA:a

Internet revenue (loss) attributable to frequent stockholders

$

77,573

$

4,612

$

23,433

$

132,002

$

(12,962

)

Curiosity expense

2,817

671

2,182

6,866

2,890

Revenue tax (profit) expenseb

(4,274

)

(156

)

1,207

1,206

(188

)

Depreciation and amortization

2,720

2,199

2,680

9,852

12,671

Acquisition and integration-related pricesc

83

61

1,068

77

Restructuring pricesd

239

842

318

2,630

6,052

Authorized settlements and costse

12

600

(1,556

)

(1,141

)

2,998

Impairment pricesf

166

2,070

16,248

Loss on disposal of mounted property

159

364

60

219

364

Achieve on lease termination

(308

)

(45

)

(10

)

(542

)

(64

)

Different (revenue) expense, internet

(5

)

7

(425

)

(447

)

(20

)

Fairness compensation

1,637

1,340

1,771

6,894

5,403

Applicant monitoring system pricesg

280

690

406

1,376

2,033

Internet revenue attributable to noncontrolling curiosity in subsidiaryh

210

820

Adjusted EBITDAa

$

80,933

$

11,500

$

30,127

$

162,053

$

36,322

Adjusted EBITDA margina

12.6

%

5.3

%

8.0

%

9.7

%

4.3

%

Adjusted EPS:i

Numerator:

Internet revenue (loss) attributable to frequent stockholders

$

77,573

$

4,612

$

23,433

$

132,002

$

(12,962

)

Non-GAAP changes – pretax:

Acquisition and integration-related pricesc

83

61

1,068

77

Restructuring pricesd

239

842

318

2,630

6,052

Authorized settlements and costse

12

600

(1,556

)

(1,141

)

2,998

Impairment prices (excluding rebranding impacts)f

166

2,070

16,248

Rebranding impairments and accelerated amortizationf

3,075

Applicant monitoring system pricesg

280

690

406

1,376

2,033

Nonrecurring revenue tax changesj

(25,188

)

(18

)

(23,246

)

295

Tax affect of non-GAAP changes

(158

)

(2

)

(1

)

(172

)

(992

)

Adjusted internet revenue attributable to frequent stockholders – non-GAAP

$

52,841

$

6,890

$

22,661

$

114,587

$

16,824

Denominator:

Weighted common frequent shares – primary, GAAP

36,974

36,177

36,963

36,689

36,088

Dilutive affect of share-based fundsok

762

601

619

703

340

Adjusted weighted common frequent shares – diluted, non-GAAP

37,736

36,778

37,582

37,392

36,428

Reconciliation:

Diluted EPS, GAAP

$

2.07

$

0.13

$

0.62

$

3.53

$

(0.36

)

Non-GAAP changes – pretax:

Acquisition and integration-related pricesc

0.03

Restructuring pricesd

0.02

0.01

0.06

0.16

Authorized settlements and costse

0.02

(0.03

)

(0.02

)

0.09

Impairment prices (excluding rebranding impacts)f

0.05

0.45

0.09

Applicant monitoring system pricesg

0.02

0.01

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