Cross Country Healthcare (CCRN) saw its loss narrow to $20.22 million, or $0.65 a share for the quarter ended Dec. 31, 2014. In the previous year period, the company reported a loss of $52.58 million, or $1.69 a share. On an adjusted basis, profit per share for the quarter was almost stable at $0.03, when compared with the last year period. On an adjusted basis, earnings per share were at $0.03 for the quarter. Revenue during the quarter surged 72.32 percent to $188.13 million from $109.18 million in the previous year period. Gross margin for the quarter contracted 84 basis points over the previous year period to 25.32 percent. Operating margin for the quarter stood at negative 4.72 percent as compared to a negative 6.51 percent for the previous year period.
Operating loss for the quarter was $8.87 million, compared with an operating loss of $7.11 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.24 million compared with $1.77 million in the prior year period. At the same time, adjusted EBITDA margin improved 169 basis points in the quarter to 3.32 percent from 1.62 percent in the last year period.
For the first-quarter, Cross Country Healthcare forecasts revenue to be in the range of $185 million to $190 million.
William J. Grubbs, chief executive officer, said, "2014 was a transformational year for Cross Country Healthcare with both organic and acquisition growth, improved profitability, expansion of our branch footprint, additions to our workforce solutions portfolio, and an increase in market share. We expect to reach our goal of an Adjusted EBITDA margin in excess of 5% in the fourth quarter of 2015 and 8%, on a run-rate basis, during 2017."
Working capital increases sharply
Cross Country Healthcare has recorded an increase in the working capital over the last year. It stood at $64.19 million as at Dec. 31, 2014, up 64.46 percent or $25.16 million from $39.03 million on Dec. 31, 2013. Current ratio was at 1.96 as on Dec. 31, 2014, up from 1.87 on Dec. 31, 2013.
Days sales outstanding went up to 29 days for the quarter compared with 27 days for the same period last year.
Debt increases substantially
Cross Country Healthcare has witnessed an increase in total debt over the last one year. It stood at $74.07 million as on Dec. 31, 2014, up 763.74 percent or $65.50 million from $8.58 million on Dec. 31, 2013. Total debt was 22.78 percent of total assets as on Dec. 31, 2014, compared with 3.45 percent on Dec. 31, 2013. Debt to equity ratio was at 0.57 as on Dec. 31, 2014, up from 0.05 as on Dec. 31, 2013. Interest coverage ratio improved to 4.97 for the quarter from 33.07 for the same period last year.
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