Cross Country Healthcare Inc. (CCRN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Cross Country Healthcare Inc. has a market cap of $265.5 million; its shares were traded at around $8.56 with a P/E ratio of 45 and P/S ratio of 0.4. CCRN is in the portfolios of Third Avenue Management, Chuck Royce of Royce& Associates, Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
In September 2008, we consummated the acquisition of substantially all of the assets of privately-held MDA Holdings, Inc. and its subsidiaries and all of the outstanding stock of a subsidiary of MDA Holdings, Inc. (collectively, MDA). This transaction included an earnout provision based on 2008 and 2009 performance criteria. This contingent consideration is not related to the sellers continued employment. In the second quarter of 2009, we paid $6.7 million, related to the 2008 performance. In April 2010, we paid $12.8 million, related to the 2009 performance, satisfying all earnout amounts potentially due to the seller in accordance with the asset purchase agreement. The earnout payments were allocated to goodwill as additional purchase price, in accordance with the Business Combinations Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). In addition, in May 2010, $1.7 million was released to the seller from the indemnification escrow account leaving a balance of $5.4 million.
Contribution income from our nurse and allied staffing segment for the three months ended June 30, 2010, decreased $1.1 million or 15.5%, to $6.1 million from $7.2 million in three months ended June 30, 2009. As a percentage of nurse and allied staffing revenue, segment contribution income was 10.2% for the three months ended June 30, 2010, and 9.2% for the three months ended June 30, 2009. This increase is primarily due to a widening of our bill-pay spread and lower housing expenses as a percentage of revenue, partially offset by negative operating leverage.
Contribution income from clinical trials services for the three months ended June 30, 2010, decreased $0.6 million, or 24.9%, to $1.7 million, from $2.3 million in the three months ended June 30, 2009. As a percentage of clinical trials services revenue, segment contribution income was 10.8% in the three months ended June 30, 2010 compared to 11.7% in the three months ended June 30, 2009, primarily due to a significant change in the mix of business.
Contribution income from other human capital management services for the three months ended June 30, 2010, increased by $0.5 million, or 142.6%, to $0.8 million, from $0.3 million in the three months ended June 30, 2009 primarily due to an increase from our education and training business. Contribution income as a percentage of other human capital management services revenue was 7.3% for the three months ended June 30, 2010 and 3.2% for the three months ended June 30, 2009, primarily reflecting improved performance in our education and training business.
Revenue from our physician staffing business decreased $16.6 million or 21.0% to $62.4 million for the six months ended June 30, 2010, compared to $79.0 million in the six months ended June 30, 2009. The revenue decline reflects decreased demand for our temporary physician staffing services, and in particular, anesthesiology. Physician staffing days filled decreased 17.9% to 40,241 in the six months ended June 30, 2010, compared to the six months ended June 30, 2009. Revenue per day filled for the six months ended June 30, 2010 was $1,551 a 3.8% decrease from the six months ended June 30, 2009, reflecting an unfavorable change in the mix of specialties.
Read the The complete Report
Cross Country Healthcare Inc. has a market cap of $265.5 million; its shares were traded at around $8.56 with a P/E ratio of 45 and P/S ratio of 0.4. CCRN is in the portfolios of Third Avenue Management, Chuck Royce of Royce& Associates, Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
For the quarter ended June 30, 2010, our revenue was $117.8 million, and net income was $1.2 million, or $0.04 per diluted share. Cash flow provided by operating activities for the six months ended June 30, 2010, was $23.7 million (including a $5.6 million federal income tax refund), which was primarily used to pay the final earnout payment related to our acquisition of privately-held MDA Holdings, Inc. and its subsidiaries and all of the outstanding stock of Jamestown Indemnity Ltd. (the Captive), a Cayman Island company and wholly-owned subsidiary (collectively, MDA), and to repay debt. We ended the second quarter of 2010 with total debt of $56.4 million and $10.3 million of cash, resulting in a ratio of debt, net of cash, to total capitalization of 15.1%.In September 2008, we consummated the acquisition of substantially all of the assets of privately-held MDA Holdings, Inc. and its subsidiaries and all of the outstanding stock of a subsidiary of MDA Holdings, Inc. (collectively, MDA). This transaction included an earnout provision based on 2008 and 2009 performance criteria. This contingent consideration is not related to the sellers continued employment. In the second quarter of 2009, we paid $6.7 million, related to the 2008 performance. In April 2010, we paid $12.8 million, related to the 2009 performance, satisfying all earnout amounts potentially due to the seller in accordance with the asset purchase agreement. The earnout payments were allocated to goodwill as additional purchase price, in accordance with the Business Combinations Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). In addition, in May 2010, $1.7 million was released to the seller from the indemnification escrow account leaving a balance of $5.4 million.
Contribution income from our nurse and allied staffing segment for the three months ended June 30, 2010, decreased $1.1 million or 15.5%, to $6.1 million from $7.2 million in three months ended June 30, 2009. As a percentage of nurse and allied staffing revenue, segment contribution income was 10.2% for the three months ended June 30, 2010, and 9.2% for the three months ended June 30, 2009. This increase is primarily due to a widening of our bill-pay spread and lower housing expenses as a percentage of revenue, partially offset by negative operating leverage.
Contribution income from clinical trials services for the three months ended June 30, 2010, decreased $0.6 million, or 24.9%, to $1.7 million, from $2.3 million in the three months ended June 30, 2009. As a percentage of clinical trials services revenue, segment contribution income was 10.8% in the three months ended June 30, 2010 compared to 11.7% in the three months ended June 30, 2009, primarily due to a significant change in the mix of business.
Contribution income from other human capital management services for the three months ended June 30, 2010, increased by $0.5 million, or 142.6%, to $0.8 million, from $0.3 million in the three months ended June 30, 2009 primarily due to an increase from our education and training business. Contribution income as a percentage of other human capital management services revenue was 7.3% for the three months ended June 30, 2010 and 3.2% for the three months ended June 30, 2009, primarily reflecting improved performance in our education and training business.
Revenue from our physician staffing business decreased $16.6 million or 21.0% to $62.4 million for the six months ended June 30, 2010, compared to $79.0 million in the six months ended June 30, 2009. The revenue decline reflects decreased demand for our temporary physician staffing services, and in particular, anesthesiology. Physician staffing days filled decreased 17.9% to 40,241 in the six months ended June 30, 2010, compared to the six months ended June 30, 2009. Revenue per day filled for the six months ended June 30, 2010 was $1,551 a 3.8% decrease from the six months ended June 30, 2009, reflecting an unfavorable change in the mix of specialties.
Read the The complete Report
