Cross Country Healthcare Reports 28.8% Revenue Decline in Q3 2024, Net Loss for Nine Months

Cross Country Healthcare, Inc. reported significant financial changes in its Q3 2024 10-Q filing, reflecting a challenging market environment. For the three months ended September 30, 2024, the company generated total revenue of $315.1 million, a decline of 28.8% from $442.3 million in Q3 2023. This decrease was primarily attributed to reduced billable days and average bill rates in the Nurse and Allied Staffing segment, which accounted for approximately 84% of total revenue. Revenue from Nurse and Allied Staffing fell to $264.9 million, down 33.2% year-over-year, while Physician Staffing revenue increased by 10.0% to $50.3 million.

Operating expenses also decreased, totaling $312.3 million in Q3 2024 compared to $422.0 million in the same quarter of the previous year. However, the company reported a modest income from operations of $2.9 million, a sharp decline of 85.9% from $20.3 million in Q3 2023. Net income attributable to common stockholders was $2.6 million, down 80.1% from $12.8 million in the prior year, resulting in a net income per share of $0.08, compared to $0.37 in Q3 2023.

For the nine months ended September 30, 2024, total revenue was $1.034 billion, a decrease of 35.6% from $1.606 billion in the same period of 2023. The company reported a net loss of $10.8 million for the nine months, contrasting with a net income of $63.6 million in the prior year. This resulted in a net loss per share of $0.32, compared to earnings of $1.80 in the same period of 2023.

Cross Country Healthcare's total current assets decreased to $336.6 million as of September 30, 2024, down from $416.9 million at the end of 2023. Total liabilities also declined to $172.7 million from $213.4 million. The company’s stockholders' equity was reported at $424.7 million, a decrease from $467.7 million at the end of 2023.

Strategically, the company has been active in share repurchases, buying back 816,879 shares for $11.9 million in Q3 2024, with a total of 2.1 million shares repurchased for $33.2 million in the nine months ended September 30, 2024. The company continues to maintain a strong liquidity position, with cash and cash equivalents of $64.0 million and no borrowings drawn under its asset-based loan facility as of the reporting date.

Overall, Cross Country Healthcare is navigating a period of reduced demand in its core staffing segments while managing operational costs and maintaining liquidity through strategic financial decisions.