Cross Country revenue nearly doubles in Q3

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November 04, 2021

Cross Country Healthcare Inc. (NASDAQ: CCRN) reported third-quarter revenue jumped 93.3%, exceeding the high end of guidance. However, gross margin narrowed at the Boca Raton, Florida-based company.

“Our performance demonstrates the success we are having in bringing clinicians to the bedside across the nation,” said co-founder and CEO Kevin Clark. “Higher bill rates are really only part of the story, as the investments we have made in people and technology, along with the many changes we have made to core processes, allow us to execute more effectively. We have fundamentally transformed this company and believe we have the ability to continue to grow the number of clinicians on assignment.”

(US$ thousands) Q3 2021 Q3 2020 % change
Revenue $374,905 $193,968 93.3%
Gross margin 22.4% 24.7%  
Net income/loss $23,433 ($1,334) nm

In its nurse and allied segment, revenue per full-time equivalent per day was $425 in the third quarter compared with $353 in the year-ago quarter. Average bill rates rose slightly, attributed to higher demand and bill rates related to both Covid-19 and non-Covid-19 assignments, with a record level of demand across a wide range of specialties. Average field contract personnel on an FTE basis increase to 9,003 from 5,403 in the third quarter of 2020, primarily due to headcount growth in travel nurse and allied, as well as additional headcount resulting from the Cross Country Workforce Solutions Group acquisition in June.

The increase in physician staffing revenue was primarily attributed to an increase in volume in both primary care physicians and nurse practitioners.

Revenue by segment

(US$ thousands) Q3 2021 Q3 2020 % change
Nurse and allied staffing $356,139 $177,516 100.6%
Physician staffing $18,766 $16,452 14.1%

Guidance

The company forecast fourth-quarter revenue of between $580 million and $590 million, a year-over-year increase of between 169% and 174%.

Share price and market cap

Shares in Cross Country were up 20.68% to $26.67 as of 12:01 p.m. Eastern time; the share price also set a new 52-week high during today’s trading session when it reached $29.45, according to FT.com. The company has a market cap of $839.88 million.

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