Cross Country Healthcare, Inc. (CCRN) has reported an 180.81 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $14.07 million, or $0.22 a share in the quarter, compared with $5.01 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $8.66 million, or $0.24 a share compared with $7.29 million or $0.23 a share, a year ago.
Revenue during the quarter grew 9.86 percent to $214.99 million from $195.69 million in the previous year period. Gross margin for the quarter expanded 77 basis points over the previous year period to 27.08 percent. Total expenses were 95.66 percent of quarterly revenues, down from 96.49 percent for the same period last year. This has led to an improvement of 83 basis points in operating margin to 4.34 percent.
Operating income for the quarter was $9.33 million, compared with $6.87 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.12 million compared with $12.27 million in the prior year period. At the same time, adjusted EBITDA margin contracted 17 basis points in the quarter to 6.10 percent from 6.27 percent in the last year period.
"This was a strong quarter for the company with revenue, Adjusted EBITDA and Adjusted EPS all significantly ahead of guidance," said William J. Grubbs, president & chief executive officer. "The investments and improvement initiatives we have been working on for more than three years are starting to pay off, giving us good momentum going into the fourth quarter and 2017."
For financial year 2016, Cross Country Healthcare, Inc. expects revenue to be in the range of $818 million to $823 million.
For the fourth-quarter, Cross Country Healthcare, Inc. expects revenue to be in the range of $207 million to $212 million. It projects diluted earnings per share to be in the range of $0.22 to $0.24 on an adjusted basis for the same period.
Working capital increases
Cross Country Healthcare, Inc. has recorded an increase in the working capital over the last year. It stood at $98.70 million as at Sep. 30, 2016, up 15.30 percent or $13.09 million from $85.61 million on Sep. 30, 2015. Current ratio was at 2.17 as on Sep. 30, 2016, up from 2.16 on Sep. 30, 2015.
Days sales outstanding were almost stable at 59 days for the quarter, when compared with the last year period.
Debt remains almost stable
Cross Country Healthcare, Inc. has witnessed an increase in total debt over the last one year. It stood at $72.51 million as on Sep. 30, 2016, up 0.70 percent or $0.50 million from $72.01 million on Sep. 30, 2015. Total debt was 19.88 percent of total assets as on Sep. 30, 2016, compared with 21.20 percent on Sep. 30, 2015. Debt to equity ratio was at 0.46 as on Sep. 30, 2016, down from 0.51 as on Sep. 30, 2015. Interest coverage ratio improved to 6.50 for the quarter from 4.15 for the same period last year.
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