Cross Country Healthcare, Inc. (CCRN) saw its loss widen to $7.88 million, or $0.24 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.10 million, or $0.19 a share. On the other hand, adjusted net income for the quarter stood at $6.61 million, or $0.20 a share compared with $5.80 million or $0.18 a share, a year ago.
Revenue during the quarter grew 15.21 percent to $222.52 million from $193.15 million in the previous year period. Gross margin for the quarter contracted 24 basis points over the previous year period to 25.90 percent. Total expenses were 96.09 percent of quarterly revenues, down from 97.07 percent for the same period last year. This has led to an improvement of 98 basis points in operating margin to 3.91 percent.
Operating income for the quarter was $8.71 million, compared with $5.66 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.01 million compared with $10.95 million in the prior year period. At the same time, adjusted EBITDA margin contracted 27 basis points in the quarter to 5.40 percent from 5.67 percent in the last year period.
"This quarter we grew revenue faster than anticipated due to strong demand from new and existing customers. In addition, were it not for higher healthcare and workers' compensation experience related to the fourth quarter, we would have exceeded our guidance for Adjusted EBITDA," stated William J. Grubbs, president and chief executive officer. "As a result of the significant number of business wins over the past year, we increased our level of investments in staff and candidate attraction in the fourth quarter and our outlook includes a continuation of these investments in the first quarter of 2017. By taking full advantage of these new business wins, we expect to grow revenue in our Nurse and Allied segment at double digits in 2017 and continue to improve the revenue trends of our other business segments."
For the first-quarter 2017, Cross Country Healthcare, Inc. projects revenue to be in the range of $209 million to $214 million.
Working capital increases sharply
Cross Country Healthcare, Inc. has recorded an increase in the working capital over the last year. It stood at $108.52 million as at Dec. 31, 2016, up 49.27 percent or $35.82 million from $72.70 million on Dec. 31, 2015. Current ratio was at 2.12 as on Dec. 31, 2016, up from 1.84 on Dec. 31, 2015.
Debt comes down marginally
Cross Country Healthcare, Inc. has recorded a decline in total debt over the last one year. It stood at $87.02 million as on Dec. 31, 2016, down 2.63 percent or $2.35 million from $89.37 million on Dec. 31, 2015. Total debt was 22.41 percent of total assets as on Dec. 31, 2016, compared with 24.41 percent on Dec. 31, 2015. Debt to equity ratio was at 0.57 as on Dec. 31, 2016, down from 0.63 as on Dec. 31, 2015. Interest coverage ratio improved to 6.10 for the quarter from 3.43 for the same period last year.
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