Cross Country Healthcare (CCRN) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was $414.0M, down 34% YoY; FY revenue was $2.02B, down 28%. FY adjusted EBITDA margin was 7.2%, and operating cash flow reached a record $248.5M.

• Physician Staffing and Education grew double digits for FY; cost actions, technology investment, and a debt-free year-end balance sheet supported the operating plan.

Financial highlights

• Q4 revenue was $414.0M, down 34% YoY and 6% QoQ; gross profit margin was 21.9%, down 20 bps YoY and 10 bps QoQ.

• Q4 net income attributable to common stockholders was $9.0M versus $38.8M YoY; diluted EPS was $0.26 versus $1.05.

• Q4 adjusted EBITDA was $20.6M, or 5.0% of revenue, versus $57.0M and 9.1% YoY; adjusted EPS was $0.29 versus $1.09.

• FY net income was $72.6M, or $2.05 per diluted share, versus $188.5M and $5.02; adjusted EBITDA was $144.4M, or 7.2% of revenue, versus $301.7M and 10.8%.

Outlook and guidance

• Q1 2024 revenue guidance is $370M–$380M, implying a 39%–41% YoY decline and an 8%–11% sequential decline.

• Q1 adjusted EBITDA guidance is $13M–$18M; adjusted EPS guidance is $0.15–$0.25.

• Guidance excludes potential effects of future divestitures, M&A or other combinations, debt structure changes, and significant share repurchases; actual results may differ materially.

• Priorities include growing the client base, ramping recent wins, improving operational efficiency, expanding margins, and pursuing strategic investment or accretive acquisitions.