Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Trading Symbol | CCRN | |
Entity Registrant Name | CROSS COUNTRY HEALTHCARE INC | |
Entity Central Index Key | 1,141,103 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 32,574,260 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 24,584 | $ 4,995 |
Accounts receivable, net of allowances of $3,817 in 2015 and $1,425 in 2014 | 125,470 | 113,129 |
Income taxes receivable | 158 | 307 |
Prepaid expenses | 4,817 | 6,073 |
Insurance recovery receivable | 3,156 | 5,624 |
Other current assets | 1,539 | 1,055 |
Total current assets | 159,724 | 131,183 |
Property and equipment, net of accumulated depreciation of $38,554 in 2015 and $47,590 in 2014 | 10,833 | 12,133 |
Trade names, net | 38,201 | 38,201 |
Goodwill | 80,758 | 90,647 |
Other identifiable intangible assets, net of accumulated amortization of $37,156 in 2015 and $34,209 in 2014 | 30,876 | 33,823 |
Debt issuance costs, net | 973 | 1,257 |
Other non-current assets | 18,361 | 17,889 |
Total assets | 339,726 | 325,133 |
Current liabilities: | ||
Accounts payable and accrued expenses | 32,109 | 27,314 |
Accrued compensation and benefits | 32,613 | 28,731 |
Current portion of long-term debt and capital lease obligations | 88 | 3,607 |
Sales tax payable | 2,545 | 2,573 |
Deferred purchase price | 2,210 | 0 |
Deferred tax liabilities | 2,039 | 1,981 |
Other current liabilities | 2,511 | 2,790 |
Total current liabilities | 74,115 | 66,996 |
Long-term debt and capital lease obligations, less current portion | 71,918 | 70,467 |
Non-current deferred tax liabilities | 16,598 | 18,038 |
Long-term accrued claims | 30,594 | 32,068 |
Long-term deferred purchase price | 0 | 2,333 |
Other long-term liabilities | 4,482 | 4,899 |
Total liabilities | $ 197,707 | $ 194,801 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock | $ 3 | $ 3 |
Additional paid-in capital | 248,698 | 247,467 |
Accumulated other comprehensive loss | (1,190) | (1,118) |
Accumulated deficit | (105,958) | (116,474) |
Total Cross Country Healthcare stockholders' equity | 141,553 | 129,878 |
Noncontrolling interest | 466 | 454 |
Total stockholders' equity | 142,019 | 130,332 |
Total liabilities and stockholders' equity | $ 339,726 | $ 325,133 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,817 | $ 1,425 |
Property and equipment, accumulated depreciation | 38,554 | 47,590 |
Other intangible assets, accumulated depreciation | $ 37,156 | $ 34,209 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue from services | $ 195,692 | $ 188,944 | $ 574,273 | $ 429,691 |
Operating expenses: | ||||
Direct operating expenses | 144,206 | 141,667 | 427,387 | 319,528 |
Selling, general and administrative expenses | 39,227 | 40,858 | 121,284 | 99,480 |
Bad debt expense | 549 | 257 | 771 | 721 |
Depreciation | 953 | 1,005 | 2,902 | 2,796 |
Amortization | 982 | 1,011 | 2,947 | 2,580 |
Loss on sale of business | 2,184 | 0 | 2,184 | 0 |
Acquisition and integration costs | 584 | 2,383 | 742 | 5,425 |
Restructuring costs | 140 | 0 | 1,147 | 755 |
Total operating expenses | 188,825 | 187,181 | 559,364 | 431,285 |
Income (loss) from operations | 6,867 | 1,763 | 14,909 | (1,594) |
Other expenses (income): | ||||
Interest expense | 1,654 | 1,832 | 5,163 | 2,376 |
Loss on derivative liability | 2,894 | 7,308 | 385 | 7,308 |
Other (income) expense, net | (100) | (62) | (30) | 66 |
Income (loss) before income taxes | 2,419 | (7,315) | 9,391 | (11,344) |
Income tax (benefit) expense | (2,732) | 169 | (1,490) | 104 |
Consolidated net income (loss) | 5,151 | (7,484) | 10,881 | (11,448) |
Less: Net income attributable to noncontrolling interest in subsidiary | 142 | 118 | 365 | 118 |
Net income (loss) attributable to common shareholders | $ 5,009 | $ (7,602) | $ 10,516 | $ (11,566) |
Net income (loss) per share attributable to common shareholders - Basic | ||||
Net (loss) income attributable to common shareholders (in usd per share) | $ 0.16 | $ (0.24) | $ 0.33 | $ (0.37) |
Net income (loss) per share attributable to common shareholders - Diluted | ||||
Net (loss) income attributable to common shareholders (in usd per share) | $ 0.16 | $ (0.24) | $ 0.33 | $ (0.37) |
Weighted average common shares outstanding: | ||||
Basic (shares) | 31,541 | 31,245 | 31,412 | 31,165 |
Diluted (shares) | 32,168 | 31,245 | 32,048 | 31,165 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net income (loss) | $ 5,151 | $ (7,484) | $ 10,881 | $ (11,448) |
Other comprehensive income, before income tax: | ||||
Unrealized foreign currency translation (loss) gain | (54) | (34) | (72) | 58 |
Other comprehensive (loss) income, before income taxes | (54) | (34) | (72) | 58 |
Income tax expense related to items of other comprehensive income | 0 | 0 | 0 | 162 |
Other comprehensive loss, net of tax | (54) | (34) | (72) | (104) |
Comprehensive income (loss) | 5,097 | (7,518) | 10,809 | (11,552) |
Less: Net income attributable to noncontrolling interest in subsidiary | 142 | 118 | 365 | 118 |
Comprehensive income (loss) attributable to common shareholders | $ 4,955 | $ (7,636) | $ 10,444 | $ (11,670) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Consolidated net income (loss) | $ 10,881 | $ (11,448) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,849 | 5,376 |
Amortization of debt discount and debt issuance costs | 1,411 | 590 |
Provision for allowances | 1,550 | 721 |
Deferred income tax (benefit) expense | (1,387) | 2,637 |
Loss on derivative liability | 385 | 7,308 |
Equity compensation | 1,773 | 958 |
Loss on sale of business | 2,184 | 0 |
Other non-cash costs | 20 | 99 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13,927) | (11,201) |
Prepaid expenses and other assets | 1,779 | 267 |
Income taxes | (407) | (3,755) |
Accounts payable and accrued expenses | 7,825 | 3,242 |
Other liabilities | 930 | 2,150 |
Net cash provided by (used in) operating activities | 18,866 | (3,056) |
Cash flows from investing activities | ||
Proceeds from sale of clinical trial services business segment, net of cash sold and transaction costs | 7,500 | 3,750 |
Acquisition, net of cash acquired | (123) | (44,911) |
Transaction costs related to sale of business | (338) | 0 |
Purchases of property and equipment | (1,790) | (3,778) |
Net cash provided by (used in) investing activities | 5,249 | (44,939) |
Cash flows from financing activities | ||
Proceeds from borrowing on Second Lien Term Loan | 0 | 28,875 |
Proceeds from borrowing on Convertible Note | 0 | 24,063 |
Repayments on Senior Secured Asset-Based revolving credit facility | (42,300) | (57,004) |
Borrowings under Senior Secured Asset-Based revolving credit facility | 38,800 | 53,105 |
Repayments of capital lease obligations | (80) | (96) |
Repurchase of stock for tax withholdings | (543) | (245) |
Cash payment to noncontrolling shareholder | (353) | 0 |
Debt issuance costs | 0 | (1,053) |
Net cash (used in) provided by financing activities | (4,476) | 47,645 |
Effect of exchange rate changes on cash | (50) | 27 |
Change in cash and cash equivalents | 19,589 | (323) |
Cash and cash equivalents at beginning of period | 4,995 | 8,055 |
Cash and cash equivalents at end of period | $ 24,584 | $ 7,732 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION The accompanying condensed consolidated financial statements include the accounts of Cross Country Healthcare, Inc. and its direct and indirect wholly-owned subsidiaries (collectively, the Company). The condensed consolidated financial statements include all assets, liabilities, revenue, and expenses of InteliStaf of Oklahoma, LLC, which is controlled by the Company but not wholly owned. The Company records the ownership interest of the noncontrolling shareholder as noncontrolling interest in subsidiary. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all entries necessary for a fair presentation of such unaudited condensed consolidated financial statements have been included. These entries consisted of all normal recurring items. Subsidiary Changes • During the third quarter of 2015, the Company completed the sale of its education seminars business, Cross Country Education, LLC. See Note 4 - Disposal. • During the third quarter, Jamestown Indemnity, Ltd., a wholly-owned Cayman Island captive company, was voluntarily liquidated and, as a result, MDA now self-insures $0.5 million for each of its professional liability claims. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. These operating results are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The December 31, 2014 condensed consolidated balance sheet included herein was derived from the December 31, 2014 audited consolidated balance sheet included in the Company’s Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current period presentation. See Note 12 – Segment Data. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the valuation of accounts receivable, goodwill and intangible assets, other long-lived assets, share-based compensation, accruals for health, workers’ compensation and professional liability claims, valuation of deferred tax assets, derivative liability, legal contingencies, future contingent considerations, income taxes and sales and other non-income tax liabilities. Accrued insurance claims and reserves include estimated settlements from known claims and actuarial estimates for claims incurred but not reported. Actual results could differ from those estimates. Property and Equipment During the nine months ended September 30, 2015 , the Company wrote off approximately $9.1 million of fully depreciated property and equipment. Restructuring Costs During the nine months ended September 30, 2015 , the Company incurred restructuring charges related to its cost optimization project. Restructuring costs totaled $1.1 million , including $0.6 million for exit costs related to lease consolidations and $0.5 million under the terms of the Company's ongoing benefit arrangement. The Company paid $0.2 million for exit liabilities and $0.4 million in post-employment benefits. As of September 30, 2015 , the balance in the accrued restructuring liability was $0.5 million , including $0.1 million of post-employment benefits and $0.4 million for exit liabilities. There were no restructuring liabilities included on the condensed consolidated balance sheets as of December 31, 2014. Recently Adopted Accounting Pronouncement In January 2014, the Company adopted Accounting Standards Update (ASU) No. 2014-08 (ASU 2014-08) , Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 provides new criteria for reporting discontinued operations and specifically indicates a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that will have a major effect on the Company’s operations and financial results. The new guidance also requires expanded disclosures for discontinued operations. In the third quarter of 2015, the Company disposed of a business that did not meet the criteria for presentation as discontinued operations. See Note 4 - Disposal for further information. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Medical Staffing Network On June 30, 2014, the Company acquired substantially all of the assets and certain liabilities of Medical Staffing Network Healthcare, LLC (MSN) for an aggregate purchase price of $47.1 million , net of $1.0 million cash acquired. The Company paid $44.6 million , net of cash acquired, and an additional $2.5 million was deferred and is due to the seller 21 months from the acquisition date, less any COBRA expenses incurred by the Company on behalf of former MSN employees over that period. The Company has incurred $0.3 million in COBRA expenses since the MSN acquisition and has a remaining liability of $2.2 million in the line item deferred purchase price on its condensed consolidated balance sheet. The Company financed the purchase price using $55.0 million in new subordinated debt consisting of a $30.0 million , 5 -year term loan and $25.0 million of convertible notes having a 6 -year maturity and a conversion price of $7.10 . The Company also amended its loan agreement with Bank of America. N.A. to increase its borrowing capacity under its senior secured asset-based revolving credit facility from $65.0 million to $85.0 million . See Note 8 - Debt for further information. The acquisition has been accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, Business Combinations, using the acquisition method of accounting. The results of the acquisition's operations are included in the consolidated statements of operations from July 1, 2014. The acquisition results are substantially reported through the Company's Nurse and Allied Staffing business segment. As such, the associated goodwill related to the acquisition of MSN is fully allocated to Nurse and Allied Staffing. The Company has integrated the acquired business into its current operations, including the consolidation of branch and corporate offices and therefore, it is impracticable to separate its results. Acquisition and integration costs as presented on the condensed consolidated statements of operations include exit costs associated with redundant facilities and ongoing post-employment termination costs. Acquisition and integration costs in the three and nine months ended September 30, 2015 are primarily related to due diligence efforts related to the Mediscan acquisition, which closed on October 30, 2015. See Note 17 - Subsequent Event. Acquisition and Integration Costs Reconciliations of the beginning and ending acquisition and integration liability balances are presented below: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 (amounts in thousands) Ongoing Benefit Costs Exit Costs Ongoing Benefit Costs Exit Costs Balance at beginning of period $ 140 $ 421 $ 944 $ 868 Charged to operations 5 — 75 88 Reclassifications (a) — (255 ) — (255 ) Payments (62 ) (88 ) (936 ) (623 ) Balance at end of period $ 83 $ 78 $ 83 $ 78 (a) Exit liability has been reduced as a result of a lease amendment and has been reclassified to deferred rent, which will be amortized over the remaining lease term. Pro Forma Financial Information The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the MSN acquisition had occurred as of January 1, 2014, after giving effect to certain adjustments, including additional interest expense on the amount the Company borrowed on the date of the transaction, the amortization of acquired intangible assets, and the elimination of certain expenses that will not be recurring in post-acquisition periods, net of an estimated income tax impact. These adjustments include removing transaction-related expenses of approximately $6.2 million in 2014 related to the MSN acquisition. These results are not necessarily indicative of future results as they do not include incremental investments in support functions, elimination of costs for integration or operating synergies, estimates of the changes in the fair value of the embedded derivative in our Convertible Notes or an estimate of any impact on interest expense resulting from the operating cash flow of the acquired business, among other adjustments that could be made in the future but are not factually supportable on the date of the transaction. Nine Months Ended September 30, 2014 (unaudited, amounts in thousands) Revenue from services $ 551,761 Net loss $ (9,688 ) Net loss per share attributable to common shareholders - Basic $ (0.31 ) Net loss per share attributable to common shareholders - Diluted $ (0.31 ) |
DISPOSAL
DISPOSAL | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSAL | DISPOSAL Cross Country Education On July 21, 2015, the Company's Board of Directors approved an agreement to sell the Company's education seminars business, Cross Country Education, LLC ("CCE"). CCE provided in-person seminars to healthcare professionals and was non-core to the Company’s business. The Company used the net proceeds from the transaction to finance the Mediscan acquisition in the fourth quarter of 2015. See Note 17 - Subsequent Event. Since the disposal of the education seminars business does not represent a strategic shift that will have a major effect on the Company’s operations and financial results, it has not been reflected as discontinued operations. On July 27, 2015, the Company entered into an Agreement and Plan of Merger to sell its wholly-owned subsidiary, CCE, to a third party, PESI, Inc. ("Buyer"). On August 31, 2015, the Company completed the sale of CCE to the Buyer. The Company received $8.0 million in cash, subject to a net working capital adjustment, of which $0.5 million will be held in escrow for a period of 12 months following the closing to provide partial security to Buyer in the event of any breach of the representations, warranties and covenants of the Company. The Company recorded the $0.5 million indemnity escrow funds as an escrow receivable. The purchase price also included an earn out of up to $0.5 million related to the performance of CCE for the year ended 2015, which is unlikely to be made. See Note 10 - Fair Value Measurements. The operating results of CCE were included in the Other Human Capital Management Services segment. See Note 12 - Segment Data for further information. The Company has agreed that for a period of five years from the closing date, it will not engage in the business of providing education seminars as such business is presently conducted by CCE, or solicit customers of CCE for purposes of diverting their business from CCE. The Company recognized a pre-tax loss of $2.2 million related to the sale of the business, which is included in income (loss) from operations in its condensed consolidated statements of operations for the three and nine months ended September 30, 2015. |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) Total comprehensive income (loss) includes net income or loss and foreign currency translation adjustments, net of any related deferred taxes. Certain of the Company’s foreign subsidiaries use their respective local currency as their functional currency. In accordance with the Foreign Currency Matters Topic of the FASB ASC, assets and liabilities of these operations are translated at the exchange rates in effect on the balance sheet date. Income statement items are translated at the average exchange rates for the period. The cumulative impact of currency fluctuations related to the balance sheet translation is included in accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets and was approximately $1.2 million and $1.1 million , respectively, at September 30, 2015 and December 31, 2014 . There was no income tax impact related to foreign currency translation adjustments for the three and nine months ended September 30, 2015 and the three months ended September 30, 2014 . During the nine months ended September 30, 2014 , the Company's condensed consolidated statements of other comprehensive income (loss) included income tax expense of $0.2 million related to foreign currency translation adjustments. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE In accordance with the requirements of the Earnings Per Share Topic of the FASB ASC, basic earnings per share is computed by dividing net income available to common shareholders (numerator) by the weighted average number of vested unrestricted common shares outstanding during the period (denominator). Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period including stock appreciation rights and options and unvested restricted stock, as calculated utilizing the treasury stock method, and Convertible Notes using the if-converted method. The following table sets forth the components of the numerator and denominator for the computation of the basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (amounts in thousands, except per share data) Numerator: Net income (loss) attributable to common shareholders $ 5,009 $ (7,602 ) $ 10,516 $ (11,566 ) Denominator: Basic weighted average common shares 31,541 31,245 31,412 31,165 Effective of dilutive shares: Share-based awards 627 — 636 — Diluted weighted average common shares outstanding 32,168 31,245 32,048 31,165 Net income (loss) per share attributable to common shareholders - Basic $ 0.16 $ (0.24 ) $ 0.33 $ (0.37 ) Net income (loss) per share attributable to common shareholders - Diluted $ 0.16 $ (0.24 ) $ 0.33 $ (0.37 ) For the periods presented, no tax benefits have been assumed in the weighted average share calculation due to a full valuation allowance on the Company's deferred tax assets. The following table represents the securities that could potentially dilute net income per share attributable to common shareholders in the future that were not included in the computation of diluted net income per share attributable to common shareholders because to do so would have been anti-dilutive for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Convertible notes and share-based awards 3,521,126 3,748,469 3,521,126 3,818,614 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES As of September 30, 2015 and December 31, 2014, the Company had the following acquired intangible assets: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (amounts in thousands) Intangible assets subject to amortization: Databases $ 22,425 $ 13,727 $ 8,698 $ 22,425 $ 12,893 $ 9,532 Customer relationships 42,004 19,953 22,051 42,004 17,870 24,134 Non-compete agreements 3,603 3,476 127 3,603 3,446 157 $ 68,032 $ 37,156 $ 30,876 $ 68,032 $ 34,209 $ 33,823 Intangible assets not subject to amortization: Goodwill $ 80,758 $ 90,647 Trade names 38,201 38,201 $ 118,959 $ 128,848 The changes in the carrying amount of goodwill by segment are as follows: Nurse And Allied Staffing Physician Staffing Other Human Capital Management Services Total (amounts in thousands) Balances as of December 31, 2014 Aggregate goodwill acquired $ 287,667 $ 43,405 $ 19,307 $ 350,379 Accumulated impairment loss (259,732 ) — — (259,732 ) Goodwill, net of impairment loss 27,935 43,405 19,307 90,647 Changes to aggregate goodwill in 2015 Sale of CCE (a) — — (9,889 ) (9,889 ) Balances as of September 30, 2015 Aggregate goodwill acquired 287,667 43,405 19,307 350,379 Sale of CCE (a) — — (9,889 ) (9,889 ) Accumulated impairment loss (259,732 ) — — (259,732 ) Goodwill, net of impairment loss $ 27,935 $ 43,405 $ 9,418 $ 80,758 (a) See Note 4 - Disposal for further information. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At September 30, 2015 and December 31, 2014 , long-term debt consists of the following: September 30, December 31, 2015 2014 (amounts in thousands) Senior Secured Asset-Based, interest 2.61% at December 31, 2014 $ — $ 3,500 Second Lien Term Loan, net of unamortized discount of $843 and $1,011 at September 30, 2015 and December 31, 2014, respectively, interest 5.75% and 7.50% at September 30, 2015 and December 31, 2014, respectively 29,157 28,989 Convertible Notes, net of unamortized discount of $6,094 and $7,053 at September 30, 2015 and December 31, 2014, respectively, fixed rate interest of 8.00% 18,906 17,947 Convertible Notes derivative liability 23,821 23,436 Capital lease obligations 122 202 Total debt 72,006 74,074 Less: Current portion (88 ) (3,607 ) Long-term debt $ 71,918 $ 70,467 Senior Credit Facility As of September 30, 2015, the First Lien Loan Agreement, with a termination date of June 30, 2017, provides for: a senior secured asset-based revolving credit facility in the aggregate principal amount of up to $85.0 million , which includes a subfacility for swingline loans up to an amount equal to 10% of the aggregate Revolver Commitments, as defined in the agreement, and a $35.0 million subfacility for standby letters of credit. The revolving credit facility can be used to provide ongoing working capital and for other general corporate purposes of the Company and its subsidiaries. As of September 30, 2015 , the interest rate spreads and fees under the First Lien Loan Agreement are based on LIBOR plus 1.50% or Base Rate plus 0.50% . The LIBOR and Base Rate margins are subject to performance pricing adjustments, pursuant to a pricing matrix based on the Company’s excess availability under the revolving credit facility, and could increase by 200 basis points if an event of default exists. The Company is required to pay a monthly commitment fee on the average daily unused portion of the revolving loan facility, which, as of September 30, 2015 , was 0.375% . As of September 30, 2015 , the Gross Availability, as defined in the First Lien Loan Agreement, was approximately $70.7 million based on the Company's accounts receivable balance as of August 31, 2015. The Company had $23.5 million letters of credit outstanding and no borrowings drawn under its revolving credit facility, leaving $47.2 million available as of September 30, 2015 . The letters of credit relate to the Company’s workers’ compensation and professional liability insurance policies. Second Lien Term Loan The Second Lien Term Loan Agreement provides for a five -year senior secured term loan facility in an aggregate principal amount of $30.0 million (the loans thereunder, the Second Lien Term Loan). On July 22, 2015, the Company entered into an amendment to its Second Lien Term Loan. Under the terms of the amendment, the interest rate on the Second Lien Term Loan was modified at no cost from LIBOR (defined as the 3-month London interbank offered rate for U.S. dollars, adjusted for customary Eurodollar reserve requirements, if any, and subject to a 1% floor) plus 6.50% to LIBOR ( 1% floor) plus a rate based on the Company's total net leverage ratio, as defined in the table that follows. As of September 30, 2015, the Second Lien Term Loan bore interest at a rate equal to adjusted LIBOR ( 1% floor) plus 4.75% . The interest rate is subject to an increase by 200 basis points if an event of default exists under the Second Lien Term Loan Agreement. Pricing Level Total Net Leverage Ratio Applicable Margin I Less than 2.50:1.00 4.75% II Greater than or equal to 2.50:1.00 but less than or equal to 3.25:1.00 5.25% III Greater than 3.25:1.00 but less than or equal to 4:00:1.00 5.75% IV Greater than 4.00:1.00 6.50% Above terms defined in accordance with the Second Lien Term Loan Agreement. The Company may, at its option at any time, prepay the Second Lien Term Loan in whole or in part at the redemption prices set forth therein, which range from 103% of the principal amount thereof for prepayments during the period July 1, 2015 through June 30, 2016, 102% of the principal amount thereof for prepayments during the period July 1, 2016 through June 30, 2017, and 100% of the principal amount thereof for prepayments after such date. Subject to certain exceptions, the Second Lien Term Loan is required to be prepaid with: (a) 50% of excess cash flow (as defined in the Second Lien Term Loan Agreement) above $5.0 million for each fiscal year of the Company (commencing with the fiscal year ending December 31, 2015), provided that voluntary prepayments of the Second Lien Term Loan made during such fiscal year will reduce the amount of excess cash flow prepayments required for such fiscal year on a dollar-for-dollar basis; (b) 100% of the net cash proceeds of all asset sales or other dispositions of property by the Company and its subsidiaries, as set forth in the agreement, in excess of a defined threshold and subject to the right of the Company to reinvest such proceeds within 12 months; (c) 100% of the net cash proceeds of issuances of debt offerings of the Company and its subsidiaries (except the net cash proceeds of any permitted debt); and (d) 50% of the net cash proceeds of equity offerings of the Company. The Second Lien Term Loan Agreement contains customary representations, warranties, and affirmative covenants. Among other things, the agreement also includes a financial covenant limiting the Company’s maximum “debt” to “EBITDA” (each, as defined therein) ratio to no greater than 4.50 :1.00, subject to customary equity cure rights. As of September 30, 2015 , the Company was in compliance with the financial covenants and other covenants contained in the agreement. The "debt" to "EBITDA" ratio was 0.9 :1.00 as of September 30, 2015 . Convertible Notes As of September 30, 2015, the Convertible Notes are convertible at the option of the holders thereof at any time into shares of the Company’s common stock, par value $0.0001 per share (Common Stock), at an initial conversion price of $7.10 per share, or 3,521,126 shares of Common Stock. After three years from the issuance date, the Company has the right to force a conversion of the Convertible Notes if the volume-weighted average price (VWAP) per share of its Common Stock exceeds 125% of the then conversion price for 20 days of a 30 day trading period. The conversion price is subject to adjustment pursuant to customary weighted average anti-dilution provisions including adjustments for the following: Common Stock dividends or distributions; issuance of any rights, warrants of options to acquire Common Stock; distributions of property; tender offer or exchange offer payments; cash dividends; or certain issuances of Common Stock at less than the conversion price. Upon conversion of the Convertible Notes, the Company will exchange, for the applicable conversion amount thereof a number of shares of Common Stock, with no maximum, on amount, equal to the amount determined by dividing (i) such conversion amount by (ii) the conversion price in effect at the time of conversion. No fractional shares of Common Stock will be issued upon conversion of the Conversion Notes. In lieu of fractional shares, the Company shall pay cash in respect of each fractional share equal to such fractional amount multiplied by the 30-day VWAP as of the closing of business on the Business Day immediately preceding the conversion date as well as any unpaid accrued interest. The Convertible Notes bear interest at a rate of 8.00% per annum, payable in quarterly cash installments; provided, however, that, at the Company’s option, up to 4.00% of the interest payable may be “paid-in-kind” through a quarterly addition of such “paid-in-kind” interest amount to the principal amount of the Convertible Notes. The Convertible Notes will mature on June 30, 2020, unless earlier repurchased, redeemed or converted. Subject to certain exceptions, the Company is not permitted to redeem the Convertible Notes until June 30, 2017. If the Company redeems the Convertible Notes on or after June 30, 2017, the Company is required to pay a premium of 15% of the amount of principal of the Convertible Notes redeemed. If the Convertible Notes are redeemed prior to June 30, 2017, pursuant to a Prohibited Transaction, as defined by the agreement, the Company is required to pay a premium equal to the greater of (i) the sum of (a) the amount of principal of the Convertible Notes redeemed, plus (b) the accrued but unpaid interests on the principal amount so redeemed to the date of the redemption, plus (c) a “make whole” amount (described below) and (ii) the sum of (x) the average 30-day VWAP per share of Common Stock multiplied by the number of shares of Common Stock that the redeemed Convertible Notes are then convertible into, with no maximum, and (y) the accrued but unpaid interest on the Convertible Notes. The “make whole” amount is equal to the excess, if any, of (1) the present value at the date of redemption of (A) 115% of the principal amount of the Convertible Notes redeemed, plus (B) all remaining scheduled interest due on the principal amount of the notes being redeemed through June 30, 2017 computed using a discount rate equal to the Treasury rate as of the date of redemption plus 50 basis points over (2) the outstanding principal amount of the Convertible Notes then redeemed. |
CONVERTIBLE NOTES DERIVATIVE LI
CONVERTIBLE NOTES DERIVATIVE LIABILITY | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
CONVERTIBLE NOTES DERIVATIVE LIABILITY | CONVERTIBLE NOTES DERIVATIVE LIABILITY Derivative financial instruments, as defined in ASC 815, Accounting for Derivative Financial Instruments and Hedging Activities , consist of financial instruments or other contracts that contain a notional amount and one or more underlyings (e.g. interest rate, security price or other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured at fair value and recorded as liabilities or, in rare instances, assets. The Company does not use derivative financial instruments to hedge exposures to cash-flow, market or foreign-currency risks. However, the Company issued Convertible Notes with features that are either (i) not afforded equity classification, (ii) embody risks not clearly and closely related to host contracts, or (iii) may be net-cash settled by the counterparty. As required by ASC 815, in certain instances, these instruments are required to be carried as derivative liabilities, at fair value, in the financial statements. The Convertible Notes issued in conjunction with the MSN acquisition are subject to anti-dilution adjustments that allow for the reduction in the Conversion Price, as defined in the agreement, in the event the Company subsequently issues equity securities including Common Stock or any security convertible or exchangeable for shares of Common Stock for a price less than the current conversion price. In addition, the Convertible Notes allow the issuer to exercise optional redemption features and the holder to exercise an offer to purchase feature, under certain conditions. The Company accounted for the conversion option in accordance with ASC 815. Since this conversion feature is not considered to be solely indexed to the Company’s own stock the derivative was recorded as a liability. The Company’s Convertible Notes derivative liability is measured at fair value using a trinomial lattice model. The optional redemption features, along with the offer to purchase features are incorporated into the valuation model. Inputs into the model require estimates, including such items as estimated volatility of the Company's stock, estimated credit risk of the Company, estimated probabilities of change of control and issuance of additional financing, risk-free interest rate, and the estimated life of the financial instruments being fair valued. In addition, since the conversion price contains an anti-dilution adjustment, the probability that the Conversion Price of the Notes would decrease as the share price decreased is incorporated into the valuation calculation. The inputs into the valuation model are as follows: September 30, 2015 Closing share price $13.61 Conversion price $7.10 Risk-free rate 1.34% Expected volatility 40% Dividend yield —% Expected life 4.75 The fair value of this derivative liability is primarily determined by fluctuations in our stock price. As of September 30, 2015 , a $1 increase or decrease in our stock price would result in a corresponding increase or decrease of approximately $3.3 million in the fair value of the derivative liability, and a 1% increase or decrease in interest rates would result in a corresponding increase or decrease of approximately $0.9 million in the fair value of the derivative liability. These fluctuations result in a current period gain or loss that is presented on the condensed consolidated statements of operations as (gain) loss on derivative liability. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Fair Value Measurements and Disclosures Topic also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 —Quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Items Measured at Fair Value on a Recurring Basis At September 30, 2015 and December 31, 2014 , the Company’s financial assets/liabilities required to be measured on a recurring basis were: contingent consideration receivable, deferred compensation liability included in other long-term liabilities, and Convertible Notes derivative liability included in long-term debt and capital lease obligations on the condensed consolidated balance sheets. Contingent consideration receivable, earn out —The earn out related to the Company's sale of CCE was treated as a contingent consideration receivable for accounting purposes. The Company utilized Level 3 inputs to value the contingent consideration receivable as significant unobservable inputs were used in the calculation of its fair value and related to the future performance of the disposed business. The fair value of the contingent consideration receivable will be adjusted to its fair value on a quarterly basis with any adjustment to the related receivable and the loss on the sale of the business. The future performance of the disposed business will directly impact the contingent consideration that could be paid to the Company. The Company assigned no fair value to this earn out as of September 30, 2015 based on the information available to the Company. See Note 4 - Disposal. Deferred compensation —The Company utilizes Level 1 inputs to value its deferred compensation liability. The Company’s deferred compensation liability is measured using publicly available indices that define the liability amounts, as per the plan documents. Convertible Notes derivative liability —The Company utilizes Level 3 inputs to value its Convertible Notes derivative liability. See Note 9 - Convertible Notes Derivative Liability. The table which follows summarizes the estimated fair value of the Company’s financial assets and liabilities measured on a recurring basis as of September 30, 2015 and December 31, 2014 : Fair Value Measurements September 30, 2015 December 31, 2014 Financial Liabilities: (amounts in thousands) (Level 1) Deferred compensation $ 1,390 $ 1,510 (Level 3) Convertible Notes derivative liability $ 23,821 $ 23,436 The table which follows reconciles the opening balances to the closing balances for fair value measurements of the Convertible Notes derivative liability categorized within Level 3 of the fair value hierarchy: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 (amounts in thousands) Beginning Balance $ 20,927 $ 23,436 Purchases / Sales — — Settlements — — Valuation adjustment (a) 2,894 385 Ending Balance $ 23,821 $ 23,821 _______________ (a) Loss on the valuation of the derivative liability is included as a line item as part of other expenses (income) on the condensed consolidated statements of operations. See Note 9 - Convertible Notes Derivative Liability for further information. Items Measured at Fair Value on a Non-Recurring Basis Goodwill, trade names, and other identifiable intangible assets are reviewed for impairment annually, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If the testing performed indicates that impairment has occurred, the Company records a non-cash impairment charge for the difference between the carrying amount of the goodwill or other intangible assets and the implied fair value of the goodwill or other intangible assets in the period the determination is made. As of October 1, 2014, in conjunction with the annual testing of indefinite-lived intangible assets not subject to amortization, the Company recorded a pretax non-cash impairment charge of approximately $10.0 million related to its Medical Doctor Associates (MDA) trade names. The Company reduced its long-term revenue forecast for these businesses as part of its forecasting process in the fourth quarter and as a result, the calculation of estimated fair value was less than the carrying amount of the trade names, resulting in an impairment charge. The table below presents the fair value of the MDA trade names as of December 31, 2014 . Fair Value Measurements December 31, 2014 (amounts in thousands) (Level 3) MDA Trade names $ 17,699 Other Fair Value Disclosures Financial instruments not measured or recorded at fair value in the accompanying condensed consolidated balance sheets consist of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and short and long-term debt. The estimated fair value of accounts receivable, accounts payable and accrued expenses approximate their carrying amount due to the short-term nature of these instruments. The estimated fair value of the Company's debt was calculated using discounted cash flow analysis and appropriate valuation methodologies using Level 2 inputs from available market information. The following table represents the carrying amounts and estimated fair value of the Company’s significant financial instruments that were not measured at fair value: September 30, 2015 December 31, 2014 Carrying Fair Carrying Fair Financial Liabilities: (amounts in thousands) (Level 2) Second Lien Term Loan, net (a) $ 29,157 $ 30,600 $ 28,989 $ 29,900 Convertible Notes, net (a) $ 18,906 $ 23,000 $ 17,947 $ 19,200 Senior Secured Asset-Based Loan (b) $ — $ — $ 3,500 $ 3,500 _______________ (a) The Second Lien Term Loan and Convertible Notes are reported at their carrying value in the accompanying condensed consolidated balance sheets. The Company determined their fair value, as presented in the table using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issuances with similar remaining years to maturity, adjusted for credit risk. (b) Carrying value of the Senior Secured Asset-Based Loan approximates estimated fair value based on the short-term nature and the pricing at varying interest rates. Concentration of Risk The Company has invested its excess cash in highly-rated overnight funds and other highly-rated liquid accounts. The Company has been exposed to credit risk associated with these investments. The Company minimizes its credit risk relating to these positions by monitoring the financial condition of the financial institutions involved and by primarily conducting business with large, well established financial institutions and diversifying its counterparties. The Company generally does not require collateral and mitigates its credit risk by performing credit evaluations and monitoring at-risk accounts. The allowance for doubtful accounts represents the Company’s estimate of uncollectible receivables based on a review of specific accounts and the Company’s historical collection experience. The Company writes off specific accounts based on an ongoing review of collectability as well as past experience with the customer. The Company’s contract terms typically require payment between 15 to 60 days from the date services are provided and are considered past due based on the particular negotiated contract terms. Overall, based on the large number of customers in differing geographic areas, primarily throughout the United States and its territories, the Company believes the concentration of credit risk is limited. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program During both the nine months ended September 30, 2015 and 2014 , the Company did not repurchase any shares of its Common Stock under its February 2008 Board authorization. As of September 30, 2015 , the Company may purchase up to an additional 942,443 shares of Common Stock under the February 2008 Board authorization, subject to certain conditions in the Company's First Lien Loan Agreement and Second Lien Term Loan Agreement. Subject to certain conditions as described in its First Lien Loan Agreement entered into on January 9, 2013, the Company may repurchase up to an aggregate amount of $5.0 million of its Equity Interests. At September 30, 2015 , the Company had 31,552,231 shares of Common Stock outstanding. Share-Based Payments During the nine months ended September 30, 2015 , 220,160 of restricted stock awards and 163,340 of performance stock awards were granted under the 2014 Omnibus Incentive Plan to the Company's non-employee Directors and management team. In 2015, the Company changed the timing of its annual grants to management from June to March. Pursuant to the 2014 Omnibus Plan the number of target shares that are issued for performance-based stock awards are determined based on the level of attainment of the targets. If the minimum level of performance is attained for the 2015 awards, restricted stock will be issued with a vesting date of December 31, 2017, subject to the employee’s continuing employment. During the first quarter of 2015, the Company's Compensation Committee of the Board of Directors approved a 41.4% level of attainment for the 2014 performance-based share awards, resulting in the issuance of 86,661 shares of restricted stock that will vest on December 31, 2016. The following table summarizes restricted stock awards and performance stock awards activity for the nine months ended September 30, 2015 : Restricted Stock Awards Performance Stock Awards Number of Weighted Number of Target Weighted Unvested restricted stock awards, January 1, 2015 659,650 $ 5.72 218,175 $ 5.82 Granted 220,160 $ 11.52 163,340 $ 11.86 Vested (239,062 ) $ 5.75 — $ — Forfeited (50,618 ) $ 6.44 (145,541 ) $ 6.14 Unvested restricted stock awards, September 30, 2015 590,130 $ 7.82 235,974 $ 9.80 During the three and nine months ended September 30, 2015 , $0.6 million and $1.8 million , respectively, was included in selling, general and administrative expenses related to share-based payments, and a net of 10,330 and 190,631 shares, respectively, of Common Stock were issued upon the vesting of restricted stock. During the three and nine months ended September 30, 2014 , $0.4 million and $1.0 million , respectively, was included in selling, general and administrative expenses related to share-based payments. In addition, a net of 5,654 and 141,188 restricted shares of Common Stock vested in the three and nine months ended September 30, 2014, respectively. |
SEGMENT DATA
SEGMENT DATA | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA In accordance with the Segment Reporting Topic of the FASB ASC, the Company reports three business segments – Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The Company manages and segments its business based on the services it offers to its customers as described below: ● Nurse and Allied Staffing – Nurse and Allied Staffing provides traditional staffing, including temporary and permanent placement of travel nurses and allied professionals and branch-based local nurses and allied staffing. Its clients include: public and private acute-care and non-acute care hospitals, government facilities, schools, outpatient clinics, ambulatory care facilities, retailers, and many other healthcare providers throughout the U.S. ● Physician Staffing – Physician Staffing provides physicians in many specialties, certified registered nurse anesthetists (CRNAs), nurse practitioners (NPs), and physician assistants (PAs) under the Company's MDA and Saber-Salisbury brands as independent contractors on temporary assignments throughout the U.S. at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. ● Other Human Capital Management Services – Subsequent to the sale of CCE, the education seminars business, on August 31, 2015, Other Human Capital Management Services includes retained and contingent search services for physicians and healthcare executives within the U.S. The Company’s management evaluates performance of each segment primarily based on revenue and contribution income. The Company’s management does not evaluate, manage or measure performance of segments using asset information; accordingly, total asset information by segment is not prepared or disclosed. The information in the following table is derived from the segments’ internal financial information as used for corporate management purposes. Certain corporate expenses are not allocated to and/or among the operating segments. Information on operating segments and a reconciliation to income (loss) from operations for the periods indicated are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (amounts in thousands) Revenues: Nurse and Allied Staffing (a) $ 157,338 $ 147,851 $ 459,127 $ 311,814 Physician Staffing (a) 30,959 31,953 88,100 90,784 Other Human Capital Management Services 7,395 9,140 27,046 27,093 $ 195,692 $ 188,944 $ 574,273 $ 429,691 Contribution income: (b) Nurse and Allied Staffing (a) $ 16,251 $ 12,691 $ 39,368 $ 25,388 Physician Staffing (a) 3,197 1,471 7,541 4,020 Other Human Capital Management Services 372 (55 ) 1,721 (121 ) 19,820 14,107 48,630 29,287 Unallocated corporate overhead 8,110 7,945 23,799 19,325 Depreciation 953 1,005 2,902 2,796 Amortization 982 1,011 2,947 2,580 Loss on sale of business 2,184 — 2,184 — Acquisition and integration costs 584 2,383 742 5,425 Restructuring costs 140 — 1,147 755 Income (loss) from operations $ 6,867 $ 1,763 $ 14,909 $ (1,594 ) _______________ (a) Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014 , revenue of $0.3 million and $1.5 million , respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation. (b) The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments The Company has entered into non-cancelable operating lease agreements for the rental of office space and equipment. Certain of these leases include options to renew as well as rent escalation clauses and in certain cases, incentives from the landlord for rent-free months and premises reductions, and allowances for tenant improvements. The rent escalations and incentives have been reflected in the table below. Future minimum lease payments, as of September 30, 2015, associated with these agreements with terms of one year or more are as follows: Through Year Ending December 31: (amounts in thousands) 2015 $ 1,405 2016 6,331 2017 5,215 2018 3,866 2019 2,907 Thereafter 14,701 $ 34,425 Legal Contingencies The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. The Company does not believe the outcome of these matters will have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. Sales and Other State Non-income Tax Liabilities The Company's sales and other state non-income tax filings are subject to routine audits by authorities in the jurisdictions where it conducts business in the United States which may result in assessments of additional taxes. The Company accrues sales and other non-income tax liabilities based on the Company's best estimate of its probable liability utilizing currently available information and interpretation of relevant tax regulations. Given the nature of the Company's business, significant subjectivity exists as to both whether sales and other state non-income taxes can be assessed on its activity and how the sales tax will ultimately be measured by the relevant jurisdictions. The Company makes a determination for each reporting period whether the estimates for sales and other non-income taxes in certain states should be revised. The expense is included in selling, general and administrative expenses on its condensed consolidated statements of operations and the liability is reflected in sales tax payable as of December 31, 2014 and September 30, 2015 , on its condensed consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the periods ended September 30, 2015 and 2014 , the Company has calculated its effective tax rate based on year-to-date results (under ASC 740-270-30-18) as opposed to estimating its annual effective tax rate. The Company’s effective tax rate for the three and nine months ended September 30, 2015 was (113.0)% and (15.9)% , respectively, including the impact of discrete items. Excluding discrete items, the Company’s effective tax rate for the three and nine months ended September 30, 2015 was 30.1% and 22.6% , respectively. The effective tax rates are different than the statutory rates primarily due to the impact from amortization of indefinite-lived intangible assets for tax purposes, the partial non-deductibility of certain per diem expenses and international and state minimum taxes, which are partly offset by the reduction in unrecognized tax benefits due to the settlement of certain state examinations. In addition, the effective tax rate in the three and nine months ended September 30, 2015 was impacted by the reversal of valuation allowances related to the sale of CCE. The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment, including the long-range forecast of future taxable income and the evaluation of tax planning initiatives. Adjustments to the deferred tax valuation allowances are made to earnings in the period when such assessments are made. The Company intends to maintain a valuation allowance until sufficient positive evidence exists to support its reversal. In the three and nine months ended September 30, 2015, the Company recorded a benefit of $3.5 million from the reversal of valuation allowances associated with the disposal of CCE. Due to the historical losses from the Company's operations, it has recorded a full valuation allowance on its deferred tax assets. In the first quarter of 2014 , the Company recorded a non-cash adjustment of $1.7 million primarily related to an overstatement of the valuation allowance established as of December 31, 2013 . As of September 30, 2015 , the Company had approximately $3.9 million of unrecognized tax benefits included in other current liabilities and other long-term liabilities ( $3.6 million , net of deferred taxes, which would affect the effective tax rate if recognized). During the nine months ended September 30, 2015 , the Company had gross increases of $0.7 million to its current year unrecognized tax benefits related to federal and state tax issues and had gross decreases of $0.6 million to its current year unrecognized tax benefits related to settlements. The tax years of 2004, 2005, 2008, and 2010 through 2014 remain open to examination by certain taxing jurisdictions to which the Company is subject to tax, other than certain states in which the statute of limitations has been extended. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company provides services to hospitals which are affiliated with certain members of the Company’s Board of Directors. Management believes services with related parties were conducted on terms equivalent to those prevailing in an arm's-length transaction. Revenue related to these transactions was $2.8 million and $9.0 million for the three and nine months ended September 30, 2015 , respectively. Revenue related to these transactions was $6.0 million and $11.4 million for the three and nine months ended September 30, 2014 , respectively. Accounts receivable due from these hospitals at September 30, 2015 and December 31, 2014 were approximately $1.2 million and $2.0 million , respectively. In connection with the acquisition of MSN, the Company acquired a 68% ownership interest in InteliStaf of Oklahoma, LLC, a joint venture between the Company and a hospital system. The Company generated revenue providing staffing services to the hospital system of $2.6 million and $6.9 million for the three and nine months ended September 30, 2015 , respectively. Revenue related to these services was $2.5 million for the three months ended September 30, 2014 . At September 30, 2015 and December 31, 2014 , the Company had a receivable balance of $0.5 million and $0.9 million , respectively, and a payable balance of $0.1 million at the end of each period, relating to these staffing services. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Prior to the issuance of the ASU, entities were required to retrospectively apply adjustments made to provisional amounts recognized in a business combination. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements to clarify the SEC staff's position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. Given the absence of authoritative guidance within ASU No. 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company expects to adopt this guidance when effective, with no significant impact on its financial position and results of operations. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other -Internal-Use Software (Subtopic 350-40), Customers Accounting for Fees Paid in a Cloud Computing Arrangement , to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license element, then the customer should account for the software license element arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments are effective for the Company for annual and interim periods beginning after December 15, 2015. A Company can elect prospective or retrospective adoption and early adoption is permitted. The Company expects to adopt this standard in its first quarter of 2016. The Company is currently evaluating the potential impact of the new guidance. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs . This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance is effective for the Company for fiscal years and interim periods beginning after December 15, 2015, and requires retrospective application. The Company expects to adopt this guidance when effective, and does not expect this guidance to have a significant impact on its financial statements, although it will change the financial statement classification of its debt issuance costs. As of September 30, 2015 and December 31, 2014, the Company had $1.0 million and $1.3 million of net debt issuance costs included on its condensed consolidated balance sheets. Under the new guidance, the net debt issuance costs would offset the carrying amount of the respective debt on the condensed consolidated balance sheets. In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606) , which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (IFRS). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU was originally effective for public entities for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date, which defers the effective date by one year and allows early adoption for all entities, however not before the original effective date of annual reports beginning after December 15, 2016. Retrospective application is permitted, but not required. The Company is currently evaluating the impact of adopting this guidance on its financial position and results of operations. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On October 30, 2015, the Company completed the acquisition of all of the membership interests of New Mediscan II, LLC, Mediscan Diagnostic Services, LLC, and Mediscan Nursing Staffing, LLC (collectively “Mediscan”). Mediscan provides temporary healthcare staffing and workforce solutions to both the healthcare and education markets - both public and charter schools. One of Mediscan’s founding members, as well as its President, are continuing with the business. According to the terms of the agreement, the purchase price was $28.0 million in cash and $5.0 million in shares of the Company's Common Stock, subject to a net working capital adjustment. The Sellers are also eligible to receive an earn out based on Mediscan's 2016 and 2017 performance that could provide up to an additional $7.0 million of cash. The 349,871 shares of Common Stock issued in connection with the acquisition are subject to a lockup period. The acquisition was financed through a combination of cash-on-hand and borrowings under the Company's senior credit facility. The Company believes the transaction will be treated as a purchase of assets for income tax purposes. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the valuation of accounts receivable, goodwill and intangible assets, other long-lived assets, share-based compensation, accruals for health, workers’ compensation and professional liability claims, valuation of deferred tax assets, derivative liability, legal contingencies, future contingent considerations, income taxes and sales and other non-income tax liabilities. Accrued insurance claims and reserves include estimated settlements from known claims and actuarial estimates for claims incurred but not reported. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncement | Recently Adopted Accounting Pronouncement In January 2014, the Company adopted Accounting Standards Update (ASU) No. 2014-08 (ASU 2014-08) , Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 provides new criteria for reporting discontinued operations and specifically indicates a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that will have a major effect on the Company’s operations and financial results. The new guidance also requires expanded disclosures for discontinued operations. In the third quarter of 2015, the Company disposed of a business that did not meet the criteria for presentation as discontinued operations. See Note 4 - Disposal for further information. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Reconciliation of acquisition and integration liability | Reconciliations of the beginning and ending acquisition and integration liability balances are presented below: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 (amounts in thousands) Ongoing Benefit Costs Exit Costs Ongoing Benefit Costs Exit Costs Balance at beginning of period $ 140 $ 421 $ 944 $ 868 Charged to operations 5 — 75 88 Reclassifications (a) — (255 ) — (255 ) Payments (62 ) (88 ) (936 ) (623 ) Balance at end of period $ 83 $ 78 $ 83 $ 78 |
Schedule of unaudited pro forma financial information | The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the MSN acquisition had occurred as of January 1, 2014, after giving effect to certain adjustments, including additional interest expense on the amount the Company borrowed on the date of the transaction, the amortization of acquired intangible assets, and the elimination of certain expenses that will not be recurring in post-acquisition periods, net of an estimated income tax impact. These adjustments include removing transaction-related expenses of approximately $6.2 million in 2014 related to the MSN acquisition. These results are not necessarily indicative of future results as they do not include incremental investments in support functions, elimination of costs for integration or operating synergies, estimates of the changes in the fair value of the embedded derivative in our Convertible Notes or an estimate of any impact on interest expense resulting from the operating cash flow of the acquired business, among other adjustments that could be made in the future but are not factually supportable on the date of the transaction. Nine Months Ended September 30, 2014 (unaudited, amounts in thousands) Revenue from services $ 551,761 Net loss $ (9,688 ) Net loss per share attributable to common shareholders - Basic $ (0.31 ) Net loss per share attributable to common shareholders - Diluted $ (0.31 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Components of Numerator and Denominator for Computation of Basic and Diluted Earnings per Share | The following table sets forth the components of the numerator and denominator for the computation of the basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (amounts in thousands, except per share data) Numerator: Net income (loss) attributable to common shareholders $ 5,009 $ (7,602 ) $ 10,516 $ (11,566 ) Denominator: Basic weighted average common shares 31,541 31,245 31,412 31,165 Effective of dilutive shares: Share-based awards 627 — 636 — Diluted weighted average common shares outstanding 32,168 31,245 32,048 31,165 Net income (loss) per share attributable to common shareholders - Basic $ 0.16 $ (0.24 ) $ 0.33 $ (0.37 ) Net income (loss) per share attributable to common shareholders - Diluted $ 0.16 $ (0.24 ) $ 0.33 $ (0.37 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table represents the securities that could potentially dilute net income per share attributable to common shareholders in the future that were not included in the computation of diluted net income per share attributable to common shareholders because to do so would have been anti-dilutive for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Convertible notes and share-based awards 3,521,126 3,748,469 3,521,126 3,818,614 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | As of September 30, 2015 and December 31, 2014, the Company had the following acquired intangible assets: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (amounts in thousands) Intangible assets subject to amortization: Databases $ 22,425 $ 13,727 $ 8,698 $ 22,425 $ 12,893 $ 9,532 Customer relationships 42,004 19,953 22,051 42,004 17,870 24,134 Non-compete agreements 3,603 3,476 127 3,603 3,446 157 $ 68,032 $ 37,156 $ 30,876 $ 68,032 $ 34,209 $ 33,823 Intangible assets not subject to amortization: Goodwill $ 80,758 $ 90,647 Trade names 38,201 38,201 $ 118,959 $ 128,848 |
Changes in Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by segment are as follows: Nurse And Allied Staffing Physician Staffing Other Human Capital Management Services Total (amounts in thousands) Balances as of December 31, 2014 Aggregate goodwill acquired $ 287,667 $ 43,405 $ 19,307 $ 350,379 Accumulated impairment loss (259,732 ) — — (259,732 ) Goodwill, net of impairment loss 27,935 43,405 19,307 90,647 Changes to aggregate goodwill in 2015 Sale of CCE (a) — — (9,889 ) (9,889 ) Balances as of September 30, 2015 Aggregate goodwill acquired 287,667 43,405 19,307 350,379 Sale of CCE (a) — — (9,889 ) (9,889 ) Accumulated impairment loss (259,732 ) — — (259,732 ) Goodwill, net of impairment loss $ 27,935 $ 43,405 $ 9,418 $ 80,758 (a) See Note 4 - Disposal for further information. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | At September 30, 2015 and December 31, 2014 , long-term debt consists of the following: September 30, December 31, 2015 2014 (amounts in thousands) Senior Secured Asset-Based, interest 2.61% at December 31, 2014 $ — $ 3,500 Second Lien Term Loan, net of unamortized discount of $843 and $1,011 at September 30, 2015 and December 31, 2014, respectively, interest 5.75% and 7.50% at September 30, 2015 and December 31, 2014, respectively 29,157 28,989 Convertible Notes, net of unamortized discount of $6,094 and $7,053 at September 30, 2015 and December 31, 2014, respectively, fixed rate interest of 8.00% 18,906 17,947 Convertible Notes derivative liability 23,821 23,436 Capital lease obligations 122 202 Total debt 72,006 74,074 Less: Current portion (88 ) (3,607 ) Long-term debt $ 71,918 $ 70,467 |
Debt Terms | Pricing Level Total Net Leverage Ratio Applicable Margin I Less than 2.50:1.00 4.75% II Greater than or equal to 2.50:1.00 but less than or equal to 3.25:1.00 5.25% III Greater than 3.25:1.00 but less than or equal to 4:00:1.00 5.75% IV Greater than 4.00:1.00 6.50% Above terms defined in accordance with the Second Lien Term Loan Agreement. |
CONVERTIBLE NOTES DERIVATIVE 29
CONVERTIBLE NOTES DERIVATIVE LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Inputs into Valuation Model | The inputs into the valuation model are as follows: September 30, 2015 Closing share price $13.61 Conversion price $7.10 Risk-free rate 1.34% Expected volatility 40% Dividend yield —% Expected life 4.75 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Assets and Liabilities Measured on a Recurring Basis | The table which follows summarizes the estimated fair value of the Company’s financial assets and liabilities measured on a recurring basis as of September 30, 2015 and December 31, 2014 : Fair Value Measurements September 30, 2015 December 31, 2014 Financial Liabilities: (amounts in thousands) (Level 1) Deferred compensation $ 1,390 $ 1,510 (Level 3) Convertible Notes derivative liability $ 23,821 $ 23,436 |
Schedule of reconciliation of opening and closing balances for fair value measurements categorized within Level 3 | The table which follows reconciles the opening balances to the closing balances for fair value measurements of the Convertible Notes derivative liability categorized within Level 3 of the fair value hierarchy: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 (amounts in thousands) Beginning Balance $ 20,927 $ 23,436 Purchases / Sales — — Settlements — — Valuation adjustment (a) 2,894 385 Ending Balance $ 23,821 $ 23,821 _______________ (a) Loss on the valuation of the derivative liability is included as a line item as part of other expenses (income) on the condensed consolidated statements of operations. See Note 9 - Convertible Notes Derivative Liability for further information. |
Summary of Estimated Fair Values of Financial Assets and Liabilities Measured on a Non-Recurring Basis | The table below presents the fair value of the MDA trade names as of December 31, 2014 . Fair Value Measurements December 31, 2014 (amounts in thousands) (Level 3) MDA Trade names $ 17,699 |
Carrying Amounts and Estimated Fair Values of Significant Financial Instrument that were not Measured at Fair Value | The following table represents the carrying amounts and estimated fair value of the Company’s significant financial instruments that were not measured at fair value: September 30, 2015 December 31, 2014 Carrying Fair Carrying Fair Financial Liabilities: (amounts in thousands) (Level 2) Second Lien Term Loan, net (a) $ 29,157 $ 30,600 $ 28,989 $ 29,900 Convertible Notes, net (a) $ 18,906 $ 23,000 $ 17,947 $ 19,200 Senior Secured Asset-Based Loan (b) $ — $ — $ 3,500 $ 3,500 _______________ (a) The Second Lien Term Loan and Convertible Notes are reported at their carrying value in the accompanying condensed consolidated balance sheets. The Company determined their fair value, as presented in the table using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issuances with similar remaining years to maturity, adjusted for credit risk. (b) Carrying value of the Senior Secured Asset-Based Loan approximates estimated fair value based on the short-term nature and the pricing at varying interest rates. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock awards and performance stock awards activity for the nine months ended September 30, 2015 : Restricted Stock Awards Performance Stock Awards Number of Weighted Number of Target Weighted Unvested restricted stock awards, January 1, 2015 659,650 $ 5.72 218,175 $ 5.82 Granted 220,160 $ 11.52 163,340 $ 11.86 Vested (239,062 ) $ 5.75 — $ — Forfeited (50,618 ) $ 6.44 (145,541 ) $ 6.14 Unvested restricted stock awards, September 30, 2015 590,130 $ 7.82 235,974 $ 9.80 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Information on Operating Segments and Reconciliation to Loss From Operations | Information on operating segments and a reconciliation to income (loss) from operations for the periods indicated are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (amounts in thousands) Revenues: Nurse and Allied Staffing (a) $ 157,338 $ 147,851 $ 459,127 $ 311,814 Physician Staffing (a) 30,959 31,953 88,100 90,784 Other Human Capital Management Services 7,395 9,140 27,046 27,093 $ 195,692 $ 188,944 $ 574,273 $ 429,691 Contribution income: (b) Nurse and Allied Staffing (a) $ 16,251 $ 12,691 $ 39,368 $ 25,388 Physician Staffing (a) 3,197 1,471 7,541 4,020 Other Human Capital Management Services 372 (55 ) 1,721 (121 ) 19,820 14,107 48,630 29,287 Unallocated corporate overhead 8,110 7,945 23,799 19,325 Depreciation 953 1,005 2,902 2,796 Amortization 982 1,011 2,947 2,580 Loss on sale of business 2,184 — 2,184 — Acquisition and integration costs 584 2,383 742 5,425 Restructuring costs 140 — 1,147 755 Income (loss) from operations $ 6,867 $ 1,763 $ 14,909 $ (1,594 ) _______________ (a) Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014 , revenue of $0.3 million and $1.5 million , respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation. (b) The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments, as of September 30, 2015, associated with these agreements with terms of one year or more are as follows: Through Year Ending December 31: (amounts in thousands) 2015 $ 1,405 2016 6,331 2017 5,215 2018 3,866 2019 2,907 Thereafter 14,701 $ 34,425 |
ORGANIZATION AND BASIS OF PRE34
ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Millions | Sep. 30, 2015USD ($) |
Medical Doctor Associates [Member] | Uninsured Risk [Member] | |
Loss Contingencies [Line Items] | |
Possible liability on each professional liability claim | $ 0.5 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||||
Write off of property and equipment | $ 9,100,000 | ||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 140,000 | $ 0 | 1,147,000 | $ 755,000 | |
Cost Optimization Project [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1,100,000 | ||||
Restructuring Reserve | 500,000 | 500,000 | $ 0 | ||
Exit Costs [Member] | Cost Optimization Project [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 600,000 | ||||
Payments for Restructuring | 200,000 | ||||
Restructuring Reserve | 400,000 | 400,000 | |||
Ongoing Postemployment Benefits [Member] | Cost Optimization Project [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 500,000 | ||||
Payments for Restructuring | 400,000 | ||||
Restructuring Reserve | $ 100,000 | $ 100,000 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2015 | Jun. 29, 2014 |
Business Acquisition [Line Items] | ||||||||
Acquisition of assets of Medical Staffing Network, net of cash acquired | $ 123,000 | $ 44,911,000 | ||||||
Adjustment for nonrecurring costs in net loss | $ 5,151,000 | $ (7,484,000) | 10,881,000 | $ (11,448,000) | ||||
Term Loan Facility [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt | 29,157,000 | 29,157,000 | $ 28,989,000 | $ 29,157,000 | ||||
Convertible Notes Payable [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt | 18,906,000 | 18,906,000 | 17,947,000 | 18,906,000 | ||||
Revolving Credit Facility [Member] | First Lien Loan Agreement [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Credit facility maximum borrowing capacity | 85,000,000 | 85,000,000 | 85,000,000 | |||||
Medical Staffing Network [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration transferred | $ 47,100,000 | |||||||
Cash acquired from acquisition | 1,000,000 | |||||||
Acquisition of assets of Medical Staffing Network, net of cash acquired | 44,600,000 | |||||||
Deferred consideration | $ 2,500,000 | $ 2,200,000 | $ 2,200,000 | 2,200,000 | ||||
Period of deferred consideration (in months) | 21 months | |||||||
Additional exit liabilities | $ 300,000 | |||||||
Medical Staffing Network [Member] | Subordinated Debt [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt | $ 55,000,000 | |||||||
Medical Staffing Network [Member] | Term Loan Facility [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt | $ 30,000,000 | |||||||
Line of credit facility, term (in years) | 5 years | |||||||
Medical Staffing Network [Member] | Convertible Notes Payable [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt | $ 25,000,000 | |||||||
Line of credit facility, term (in years) | 6 years | |||||||
Debt conversion price (in usd per share) | $ 7.10 | |||||||
Medical Staffing Network [Member] | Acquisition-related Costs [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Adjustment for nonrecurring costs in net loss | $ 6,200,000 | |||||||
Medical Staffing Network [Member] | Revolving Credit Facility [Member] | First Lien Loan Agreement [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 85,000,000 | $ 65,000,000 |
ACQUISITIONS - Reconciliation o
ACQUISITIONS - Reconciliation of Acquisition and Integration Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Restructuring Reserve [Roll Forward] | |||||
Charged to operations | $ 140 | $ 0 | $ 1,147 | $ 755 | |
Medical Staffing Network [Member] | Ongoing Postemployment Benefits [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of period | 140 | 944 | |||
Charged to operations | 5 | 75 | |||
Reclassifications | [1] | 0 | 0 | ||
Payments | (62) | (936) | |||
Balance at end of period | 83 | 83 | |||
Medical Staffing Network [Member] | Exit Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance at beginning of period | 421 | 868 | |||
Charged to operations | 0 | 88 | |||
Reclassifications | [1] | (255) | (255) | ||
Payments | (88) | (623) | |||
Balance at end of period | $ 78 | $ 78 | |||
[1] | Exit liability has been reduced as a result of a lease amendment and has been reclassified to deferred rent, which will be amortized over the remaining lease term. |
ACQUISITIONS - Schedule of Pro-
ACQUISITIONS - Schedule of Pro-forma Information (Details) - Medical Staffing Network [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue from services | $ 551,761 |
Net loss | $ (9,688) |
Net loss per common share attributable to common shareholders - basic (in usd per share) | $ / shares | $ (0.31) |
Net loss per common share attributable to common shareholders - diluted (in usd per share) | $ / shares | $ (0.31) |
DISPOSAL (Details)
DISPOSAL (Details) - USD ($) $ in Thousands | Aug. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |||||
Loss on sale of business | $ 2,184 | $ 0 | $ 2,184 | $ 0 | |
Cross Country Education, LLC [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |||||
Consideration | $ 8,000 | ||||
Contingent liability | $ 500 | ||||
Earn-out held in escrow, term (in months) | 12 months | ||||
Performance related earn out | $ 500 | ||||
Non-compete agreement, term (in years) | 5 years | ||||
Loss on sale of business | $ 2,200 |
COMPREHENSIVE INCOME (LOSS) (De
COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Equity [Abstract] | |||||
Cumulative impact of currency fluctuations | $ 1,200 | $ 1,200 | $ 1,100 | ||
Income tax expense related to items of other comprehensive income | $ 0 | $ 0 | $ 0 | $ 162 |
EARNINGS PER SHARE - Components
EARNINGS PER SHARE - Components of Numerator and Denominator for Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 5,009 | $ (7,602) | $ 10,516 | $ (11,566) |
Net income (loss) per share attributable to common shareholders - Basic | ||||
Basic weighted average common shares | 31,541 | 31,245 | 31,412 | 31,165 |
Net (loss) income attributable to common shareholders (in usd per share) | $ 0.16 | $ (0.24) | $ 0.33 | $ (0.37) |
Effective of dilutive shares: | ||||
Share-based awards (shares) | 627 | 0 | 636 | 0 |
Net income (loss) per share attributable to common shareholders - Diluted | ||||
Net (loss) income attributable to common shareholders (in usd per share) | $ 0.16 | $ (0.24) | $ 0.33 | $ (0.37) |
Diluted weighted average common shares outstanding | 32,168 | 31,245 | 32,048 | 31,165 |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities Excluded from the Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Common stock shares that have been excluded from the per share calculation | 3,521,126 | 3,748,469 | 3,521,126 | 3,818,614 |
GOODWILL AND OTHER INTANGIBLE43
GOODWILL AND OTHER INTANGIBLES - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 68,032 | $ 68,032 |
Accumulated Amortization | 37,156 | 34,209 |
Intangible assets subject to amortization, net carrying amount | 30,876 | 33,823 |
Goodwill | 80,758 | 90,647 |
Trade names | 38,201 | 38,201 |
Intangible assets not subject to amortization, net | 118,959 | 128,848 |
Database Rights [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 22,425 | 22,425 |
Accumulated Amortization | 13,727 | 12,893 |
Intangible assets subject to amortization, net carrying amount | 8,698 | 9,532 |
Customer Relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 42,004 | 42,004 |
Accumulated Amortization | 19,953 | 17,870 |
Intangible assets subject to amortization, net carrying amount | 22,051 | 24,134 |
Noncompete Agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,603 | 3,603 |
Accumulated Amortization | 3,476 | 3,446 |
Intangible assets subject to amortization, net carrying amount | $ 127 | $ 157 |
GOODWILL AND OTHER INTANGIBLE44
GOODWILL AND OTHER INTANGIBLES - Changes in Carrying Amount of Goodwill by Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Aggregate goodwill acquired | $ 350,379 | $ 350,379 |
Sale of CCE | (9,889) | |
Accumulated impairment loss | (259,732) | (259,732) |
Goodwill, net of impairment loss | 80,758 | 90,647 |
Operating Segments [Member] | Nurse and allied staffing [Member] | ||
Goodwill [Line Items] | ||
Aggregate goodwill acquired | 287,667 | 287,667 |
Sale of CCE | 0 | |
Accumulated impairment loss | (259,732) | (259,732) |
Goodwill, net of impairment loss | 27,935 | 27,935 |
Operating Segments [Member] | Physician Staffing [Member] | ||
Goodwill [Line Items] | ||
Aggregate goodwill acquired | 43,405 | 43,405 |
Sale of CCE | 0 | |
Accumulated impairment loss | 0 | 0 |
Goodwill, net of impairment loss | 43,405 | 43,405 |
Operating Segments [Member] | Other human capital management services [Member] | ||
Goodwill [Line Items] | ||
Aggregate goodwill acquired | 19,307 | 19,307 |
Sale of CCE | (9,889) | |
Accumulated impairment loss | 0 | 0 |
Goodwill, net of impairment loss | $ 9,418 | $ 19,307 |
DEBT - Long- Term Debt (Detail
DEBT - Long- Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 122 | $ 202 |
Total debt | 72,006 | 74,074 |
Less: Current portion | (88) | (3,607) |
Long-term debt | 71,918 | 70,467 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 0 | 3,500 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 29,157 | 28,989 |
Convertible Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 18,906 | 17,947 |
Convertible Note Derivative Liability [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 23,821 | $ 23,436 |
DEBT - Additional Information (
DEBT - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolver credit facility, interest rate | 2.61% | |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | $ 843 | $ 1,011 |
Unamortized Discount | 5.75% | 7.50% |
Convertible Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate | $ 6,094 | $ 7,053 |
Unamortized Discount | 8.00% | 8.00% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | Jul. 22, 2015 | Sep. 30, 2015 |
First Lien Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Quarterly commitment fee on the average daily unused portion (percentage) | 0.375% | |
Standby Letters of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 23,500,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate increase (decrease) (percentage) | 2.00% | |
Line of Credit [Member] | First Lien Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Remaining borrowing capacity | $ 47,200,000 | |
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | 85,000,000 | |
Current borrowing capacity | $ 70,700,000 | |
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Interest margin | 1.50% | |
Interest rate description | LIBOR | |
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Interest margin | 0.50% | |
Interest rate description | Base Rate | |
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | Swingline Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Subfacility loans percentage up to aggregate revolver commitments | 10.00% | |
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | Standby Letters of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, subfacility for standby letters of credit | $ 35,000,000 | |
Second Lien Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility maximum borrowing capacity | $ 30,000,000 | |
Interest rate increase (decrease) (percentage) | 2.00% | |
Line of credit facility, term (in years) | 5 years | |
Mandatory prepayments as percentage of excess cash flow | 50.00% | |
Mandatory prepayments in excess of cash flow, threshold | $ 5,000,000 | |
Mandatory prepayments, percentage of net cash proceeds of asset sold | 100.00% | |
Mandatory prepayments, percentage of cash proceeds of issuances of debt | 100.00% | |
Mandatory prepayment, percent of net cash proceeds of equity offering | 50.00% | |
Debt to EBITDA ratio | 0.9 | |
Second Lien Term Loan [Member] | Period July 1, 2015 through June 30, 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 103.00% | |
Second Lien Term Loan [Member] | Period July 1, 2016 through June 30, 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 102.00% | |
Second Lien Term Loan [Member] | After June 30, 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 100.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Second Lien Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Interest margin | 6.50% | 4.75% |
Variable rate, floor | 1.00% | 1.00% |
Maximum [Member] | Second Lien Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt to EBITDA ratio | 4.50 |
DEBT - Repricing of Second Lien
DEBT - Repricing of Second Lien Term Loan (Details) - Second Lien Term Loan [Member] | Jul. 22, 2015 |
London Inter Bank Offered Rate (LIBOR), Pricing Level 1 [Member] | |
Debt Instrument [Line Items] | |
Interest margin | 4.75% |
London Interbank Offered Rate (LIBOR), Pricing Level 2 [Member] | |
Debt Instrument [Line Items] | |
Interest margin | 5.25% |
London Interbank Offered Rate (LIBOR), Pricing Level 3 [Member] | |
Debt Instrument [Line Items] | |
Interest margin | 5.75% |
London Interbank Offered Rate (LIBOR), Pricing Level 4 [Member] | |
Debt Instrument [Line Items] | |
Interest margin | 6.50% |
Maximum [Member] | London Inter Bank Offered Rate (LIBOR), Pricing Level 1 [Member] | |
Debt Instrument [Line Items] | |
Net leverage ratio | 2.50 |
Maximum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 2 [Member] | |
Debt Instrument [Line Items] | |
Net leverage ratio | 3.25 |
Maximum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 3 [Member] | |
Debt Instrument [Line Items] | |
Net leverage ratio | 4 |
Minimum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 2 [Member] | |
Debt Instrument [Line Items] | |
Net leverage ratio | 2.50 |
Minimum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 3 [Member] | |
Debt Instrument [Line Items] | |
Net leverage ratio | 3.25 |
Minimum [Member] | London Interbank Offered Rate (LIBOR), Pricing Level 4 [Member] | |
Debt Instrument [Line Items] | |
Net leverage ratio | 4 |
DEBT - Private Placement of Con
DEBT - Private Placement of Convertible Notes Narrative (Details) - Convertible Senior Notes [Member] | 9 Months Ended | |
Sep. 30, 2015instrumentd$ / shares | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||
Common stock, par value (in usd per share) | $ 0.0001 | |
Debt conversion price (in usd per share) | $ 7.10 | |
Debt instrument, convertible, number of equity instruments | instrument | 3,521,126 | |
Debt Instrument, convertible, threshold period following issuance date (in years) | 3 years | |
Debt instrument, convertible, threshold percentage of stock price trigger | 125.00% | |
Debt instrument, convertible, threshold trading days | d | 20 | |
Debt instrument, convertible, threshold consecutive trading days | 30 days | |
Unamortized Discount | 8.00% | |
Debt instrument, interest, percent paid in kind, maximum | 4.00% | |
Convertible debt redeemed after permissible date, redemption premium, percent of principal | 15.00% | |
Convertible debt redeemed before permissible date, redemption premium, percent of principal | 115.00% | |
Treasury Rate [Member] | ||
Debt Instrument [Line Items] | ||
Convertible debt, basis spread on discount rate on redemption, percentage | 0.50% |
CONVERTIBLE NOTES DERIVATIVE 50
CONVERTIBLE NOTES DERIVATIVE LIABILITY (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)$ / shares | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Closing share price (in usd per share) | $ 13.61 |
Conversion price (in usd per share) | $ 7.10 |
Risk-free rate (as a percentage) | 1.34% |
Expected volatility (as a percentage) | 40.00% |
Dividend yield (as a percentage) | 0.00% |
Expected life (in years) | 4 years 9 months |
Change in valuation of embedded derivative liability due to dollar change in stock price | $ | $ 3.3 |
Change in valuation of embedded derivative liability due to percentage change in interest rates | $ | $ 0.9 |
Embedded Derivative Liability [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Change in stock price (in usd per share) | $ 1 |
Change in interest rates (as a percentage) | 1.00% |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2014 | Sep. 30, 2015 |
Trade Names [Member] | Physician Staffing [Member] | ||
Fair Value Measurement [Line Items] | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 10 | |
Minimum [Member] | ||
Fair Value Measurement [Line Items] | ||
Threshold period, past due for payment of services provided (in days) | 15 days | |
Maximum [Member] | ||
Fair Value Measurement [Line Items] | ||
Threshold period, past due for payment of services provided (in days) | 60 days |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair values Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | Deferred compensation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | $ 1,390 | $ 1,510 |
Fair Value, Inputs, Level 3 [Member] | Convertible Notes, Derivative Liability [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible Notes derivative liability | $ 23,821 | $ 23,436 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of reconciliation of opening and closing balances for fair value measurements categorized within Level 3 (Details) - Derivative Financial Instruments, Liabilities [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | ||
Convertible Note Derivative Liability | |||
Beginning Balance | $ 20,927 | $ 23,436 | |
Purchases / Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Valuation adjustment (a) | 2,894 | 385 | [1] |
Ending Balance | $ 23,821 | $ 23,821 | |
[1] | Loss on the valuation of the derivative liability is included as a line item as part of other expenses (income) on the condensed consolidated statements of operations. See Note 9 - Convertible Notes Derivative Liability for further information. |
FAIR VALUE MEASUREMENTS - Est54
FAIR VALUE MEASUREMENTS - Estimated Fair Values Assets and Liabilities Measured on Non-Recurring Basis (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
MDA Trade names | $ 17,699 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Instrument that were not Measured at Fair Value (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Second Lien Term Loan [Member] | Reported Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Financial Liabilities, Carrying Amount | [1] | $ 29,157 | $ 28,989 |
Second Lien Term Loan [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Financial Liabilities, Fair Value | [1] | 30,600 | 29,900 |
Convertible Notes, Net [Member] | Reported Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Financial Liabilities, Carrying Amount | [1] | 18,906 | 17,947 |
Convertible Notes, Net [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Financial Liabilities, Fair Value | [1] | 23,000 | 19,200 |
Senior Secured Asset Based [Member] | Reported Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Financial Liabilities, Carrying Amount | [2] | 0 | 3,500 |
Senior Secured Asset Based [Member] | Estimate of Fair Value Measurement [Member] | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Financial Liabilities, Fair Value | [2] | $ 0 | $ 3,500 |
[1] | The Second Lien Term Loan and Convertible Notes are reported at their carrying value in the accompanying condensed consolidated balance sheets. The Company determined their fair value, as presented in the table using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issuances with similar remaining years to maturity, adjusted for credit risk. | ||
[2] | Carrying value of the Senior Secured Asset-Based Loan approximates estimated fair value based on the short-term nature and the pricing at varying interest rates. |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jan. 09, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common shares left remaining to repurchase under the plan (up to) | 942,443 | 942,443 | ||||
Stock repurchase program, authorized amount (up to) | $ 5,000,000 | |||||
Number of shares of common stock outstanding | 31,552,231 | 31,552,231 | ||||
Share-based compensation | $ 600,000 | $ 400,000 | $ 1,773,000 | $ 958,000 | ||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 220,160 | |||||
Vested in period, net (in shares) | 10,330 | 5,654 | 190,631 | 141,188 | ||
Restricted Stock [Member] | Omnibus Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 220,160 | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 163,340 | |||||
Performance Shares [Member] | Omnibus Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 163,340 | |||||
Level of performance attained and approved (percentage) | 41.40% | |||||
Shares issued in period | 86,661 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Restricted Stock and Performance Shares (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Restricted Stock [Member] | |
Number of Shares | |
Unvested restricted stock awards, January 1, 2015 | shares | 659,650 |
Granted | shares | 220,160 |
Vested | shares | (239,062) |
Forfeited | shares | (50,618) |
Unvested restricted stock awards, September 30, 2015 | shares | 590,130 |
Weighted Average Grant Date Fair Value (in usd per share) | |
Unvested restricted stock awards, January 1, 2015 | $ 5.72 |
Granted | 11.52 |
Vested | 5.75 |
Forfeited | 6.44 |
Unvested restricted stock awards, September 30, 2015 | $ 7.82 |
Performance Shares [Member] | |
Number of Shares | |
Unvested restricted stock awards, January 1, 2015 | shares | 218,175 |
Granted | shares | 163,340 |
Vested | shares | 0 |
Forfeited | shares | (145,541) |
Unvested restricted stock awards, September 30, 2015 | shares | 235,974 |
Weighted Average Grant Date Fair Value (in usd per share) | |
Unvested restricted stock awards, January 1, 2015 | $ 5.82 |
Granted | 11.86 |
Vested | 0 |
Forfeited | 6.14 |
Unvested restricted stock awards, September 30, 2015 | $ 9.80 |
SEGMENT DATA - Narrative (Detai
SEGMENT DATA - Narrative (Details) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
SEGMENT DATA - Information on O
SEGMENT DATA - Information on Operating Segments and Reconciliation to Loss From Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Revenues | $ 195,692 | $ 188,944 | $ 574,273 | $ 429,691 | |||||
Contribution income | [1] | 19,820 | 14,107 | 48,630 | 29,287 | ||||
Unallocated corporate overhead | 8,110 | 7,945 | 23,799 | 19,325 | |||||
Depreciation | 953 | 1,005 | 2,902 | 2,796 | |||||
Amortization | 982 | 1,011 | 2,947 | 2,580 | |||||
Loss on sale of business | 2,184 | 0 | 2,184 | 0 | |||||
Acquisition and integration costs | 584 | 2,383 | 742 | 5,425 | |||||
Restructuring costs | 140 | 0 | 1,147 | 755 | |||||
Income (loss) from operations | 6,867 | 1,763 | 14,909 | (1,594) | |||||
Prior Period Adjustment | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Revenues | 300 | 1,500 | |||||||
Contribution income | 100 | 100 | |||||||
Operating Segments [Member] | Nurse and allied staffing [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Revenues | [2] | 157,338 | 147,851 | 459,127 | 311,814 | ||||
Contribution income | [1],[2] | 16,251 | 12,691 | 39,368 | 25,388 | ||||
Operating Segments [Member] | Physician staffing [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Revenues | [2] | 30,959 | 31,953 | 88,100 | 90,784 | ||||
Contribution income | [1],[2] | 3,197 | 1,471 | 7,541 | 4,020 | ||||
Operating Segments [Member] | Other human capital management services [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Revenues | 7,395 | 9,140 | 27,046 | 27,093 | |||||
Contribution income | $ 372 | [1] | $ (55) | [1] | $ 1,721 | [1] | $ (121) | [2] | |
[1] | The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, restructuring costs, impairment charges and corporate expenses not specifically identified to a reporting segment. Contribution income is a financial measure used by management when assessing segment performance and is provided in accordance with ASC 280, Segment Reporting Topic of the FASB ASC. | ||||||||
[2] | Effective January 1, 2015, we reclassified a portion of our business from the Physician Staffing segment to the Nurse and Allied Staffing segment. For the three and nine months ended September 30, 2014, revenue of $0.3 million and $1.5 million, respectively, and contribution income of less than $0.1 million for each period have been reclassified to conform to the current period presentation. |
COMMITMENTS AND CONTINGENIES (D
COMMITMENTS AND CONTINGENIES (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,015 | $ 1,405 |
2,016 | 6,331 |
2,017 | 5,215 |
2,018 | 3,866 |
2,019 | 2,907 |
Thereafter | 14,701 |
Operating Leases, Future Minimum Payments Due | $ 34,425 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (percentage) | (113.00%) | (15.90%) | |||
Effective income tax rate continuing operations excluding discrete items (percentage) | 30.10% | 22.60% | |||
Unrecognized tax benefits | $ 3,900 | $ 3,900 | |||
Unrecognized tax benefits that would impact effective tax rate | 3,600 | 3,600 | |||
Unrecognized tax benefits period gross increases | 700 | ||||
Unrecognized tax benefits period gross decreases | $ 600 | ||||
Income tax examination years subject to examination | 2004, 2005, 2008, and 2010 through 2014 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Income Tax Expense (Benefit) | 2,732 | $ (169) | $ 1,490 | $ (104) | |
Prior Period Adjustment [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Change in valuation allowance | $ 1,700 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Cross Country Education, LLC [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Income Tax Expense (Benefit) | $ 3,500 | $ 3,500 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 2.8 | $ 6 | $ 9 | $ 11.4 | |
Accounts receivable from related parties | 1.2 | 1.2 | $ 2 | ||
InteliStaf [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 2.6 | $ 2.5 | $ 6.9 | ||
Joint venture, percent ownership | 68.00% | 68.00% | |||
Receivable balance with joint venture | $ 0.5 | $ 0.5 | 0.9 | ||
Payable balance with joint venture | $ 0.1 | $ 0.1 | $ 0.1 |
RECENT ACCOUNTING PRONOUNCEME63
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Debt issuance costs, net | $ 973 | $ 1,257 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Mediscan [Member] - Subsequent Event [Member] | Oct. 30, 2015USD ($)shares |
Subsequent Event [Line Items] | |
Cash consideration | $ 28,000,000 |
Consideration transferred, common shares, value | 5,000,000 |
Contingent liability | $ 7,000,000 |
Consideration transferred, common shares | shares | 349,871 |