Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 32,943,458 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,876 | $ 2,453 |
Accounts receivable, net of allowances of $4,193 in 2016 and $4,045 in 2015 | 143,575 | 146,873 |
Prepaid expenses | 4,882 | 4,521 |
Insurance recovery receivable | 2,961 | 2,866 |
Other current assets | 1,462 | 2,032 |
Total current assets | 154,756 | 158,745 |
Property and equipment, net of accumulated depreciation of $40,373 in 2016 and $39,368 in 2015 | 10,452 | 10,470 |
Trade Names, Indefinite-Lived and Finite-Lived, Net | 39,179 | 39,252 |
Goodwill | 95,096 | 95,096 |
Other identifiable intangible assets, net of accumulated amortization of $39,704 in 2016 and $38,370 in 2015 | 45,406 | 46,813 |
Debt issuance costs, net | 313 | 376 |
Other non-current assets | 17,916 | 17,994 |
Total assets | 360,040 | 365,595 |
Current liabilities: | ||
Accounts payable and accrued expenses | 36,164 | 41,098 |
Accrued compensation and benefits | 28,317 | 29,402 |
Current portion of long-term debt and capital lease obligations | 6,049 | 8,071 |
Deferred purchase price | 2,163 | 2,184 |
Other current liabilities | 4,999 | 5,291 |
Total current liabilities | 77,692 | 86,046 |
Long-term debt and capital lease obligations, less current portion | 65,267 | 81,301 |
Non-current deferred tax liabilities | 18,945 | 18,475 |
Long-term accrued claims | 30,001 | 30,070 |
Long-term deferred purchase price | 2,571 | 3,533 |
Other long-term liabilities | 4,779 | 4,826 |
Total liabilities | $ 199,255 | $ 224,251 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock | $ 3 | $ 3 |
Additional paid-in capital | 254,542 | 254,108 |
Accumulated other comprehensive loss | (1,214) | (1,207) |
Accumulated deficit | (93,034) | (112,056) |
Total Cross Country Healthcare stockholders' equity | 160,297 | 140,848 |
Noncontrolling interest | 488 | 496 |
Total stockholders' equity | 160,785 | 141,344 |
Total liabilities and stockholders' equity | 360,040 | 365,595 |
Other Intangible Assets [Member] | ||
Current assets: | ||
Other identifiable intangible assets, net of accumulated amortization of $39,704 in 2016 and $38,370 in 2015 | $ 42,328 | $ 43,662 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance for doubtful accounts | $ 4,193 | $ 4,045 |
Property and equipment, accumulated depreciation | 40,373 | 39,368 |
Other intangible assets, accumulated depreciation | 39,826 | 38,419 |
Other Intangible Assets [Member] | ||
Other intangible assets, accumulated depreciation | $ 39,704 | $ 38,370 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue from services | $ 196,583 | $ 185,964 |
Operating expenses: | ||
Direct operating expenses | 145,537 | 138,927 |
Selling, general and administrative expenses | 42,933 | 41,166 |
Bad debt expense | 249 | 91 |
Depreciation | 1,005 | 960 |
Amortization | 1,407 | 982 |
Acquisition-related contingent consideration | 287 | 0 |
Acquisition and integration costs | 0 | 118 |
Total operating expenses | 191,418 | 182,244 |
Income from operations | 5,165 | 3,720 |
Other expenses (income): | ||
Interest expense | 1,635 | 1,737 |
Gain on derivative liability | (16,436) | (2,147) |
Other (income) expense, net | (17) | 43 |
Income before income taxes | 19,983 | 4,087 |
Income tax expense | 797 | 1,037 |
Consolidated net income | 19,186 | 3,050 |
Less: Net income attributable to noncontrolling interest in subsidiary | 164 | 116 |
Net income attributable to common shareholders | $ 19,022 | $ 2,934 |
Net income per share attributable to common shareholders - Basic | ||
Net income per share attributable to common shareholders - Basic (in dollars per share) | $ 0.60 | $ 0.09 |
Net income per share attributable to common shareholders - Diluted | ||
Net income per share attributable to common shareholders - Diluted (in dollars per share) | $ 0.09 | $ 0.05 |
Weighted average common shares outstanding: | ||
Basic (shares) | 31,956 | 31,294 |
Diluted (shares) | 36,180 | 35,454 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net income | $ 19,186 | $ 3,050 |
Other comprehensive (loss) income, before income tax: | ||
Unrealized foreign currency translation (loss) gain | (7) | 14 |
Other comprehensive (loss) income, before income taxes | (7) | 14 |
Income tax (benefit) expense related to items of other comprehensive (loss) income | 0 | 0 |
Other comprehensive (loss) income, net of tax | (7) | 14 |
Comprehensive income | 19,179 | 3,064 |
Less: Net income attributable to noncontrolling interest in subsidiary | 164 | 116 |
Comprehensive income attributable to common shareholders | $ 19,015 | $ 2,948 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Consolidated net income | $ 19,186 | $ 3,050 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,412 | 1,942 |
Amortization of debt discount and debt issuance costs | 470 | 466 |
Provision for allowances | 798 | 91 |
Deferred income tax expense | 471 | 838 |
Gain on derivative liability | (16,436) | (2,147) |
Acquisition-related contingent consideration | 287 | 0 |
Equity compensation | 648 | 376 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,500 | (8,106) |
Prepaid expenses and other assets | (105) | 598 |
Income taxes | (252) | 87 |
Accounts payable and accrued expenses | (6,068) | 2,820 |
Other liabilities | (1,347) | 255 |
Net cash provided by operating activities | 2,564 | 270 |
Cash flows from investing activities | ||
Acquisition-related settlements | 277 | 0 |
Purchases of property and equipment | (982) | (582) |
Net cash used in investing activities | (705) | (582) |
Cash flows from financing activities | ||
Repayments on Senior Secured Asset-Based revolving credit facility | (59,200) | (18,300) |
Borrowings under Senior Secured Asset-Based revolving credit facility | 57,200 | 21,300 |
Repayments of capital lease obligations | (27) | (27) |
Repurchase of stock for tax withholdings | (214) | (65) |
Payment of contingent consideration | (17) | 0 |
Cash payment to noncontrolling shareholder | (172) | (130) |
Net cash (used in) provided by financing activities | (2,430) | 2,778 |
Effect of exchange rate changes on cash | (6) | 4 |
Change in cash and cash equivalents | (577) | 2,470 |
Cash and cash equivalents at beginning of period | 2,453 | 4,995 |
Cash and cash equivalents at end of period | $ 1,876 | $ 7,465 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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. 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, 2016. 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, 2015 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The December 31, 2015 condensed consolidated balance sheet included herein was derived from the December 31, 2015 audited consolidated balance sheet included in the Company’s Annual Report on Form 10-K. Certain prior period amounts have been reclassified to conform to the current period presentation. See Note 11 - Segment Data. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
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 and the purchase price allocation, 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 In September 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 Company adopted this guidance in the first quarter of 2016, with no impact on its financial position and results of operations upon adoption. This new guidance may impact the Company for potential measurement adjustments related to its 2015 acquisition. See Note 3 - Acquisitions. 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 Company prospectively adopted this guidance in the first quarter of 2016, with no impact on adoption. 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. The Company adopted this guidance in the first quarter of 2016, and reclassified $0.5 million of the Company's net debt issuance costs to long-term debt and capital lease obligations in its condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 . |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Mediscan 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") for a purchase price of $29.9 million in cash ( $28.0 million plus working capital estimate) and $4.7 million in shares (or 349,871 shares) of the Company's Common Stock, subject to a net working capital adjustment. In the first quarter of 2016, the net working capital adjustment was settled consistent with the receivable balance as of December 31, 2015. The sellers are also eligible to receive an earnout based on Mediscan's 2016 and 2017 performance that could provide up to an additional $7.0 million of cash. See Note 9 - Fair Value Measurements. The shares of Common Stock issued in connection with the acquisition are subject to a lockup period. The Company financed the purchase price through a combination of cash-on-hand and borrowings under the Company's senior credit facility. The transaction was treated as a purchase of assets for income tax purposes. The acquisition has been accounted for in accordance with FASB 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 October 30, 2015. The acquisition results have been aggregated with the Company's Nurse and Allied Staffing business segment. As such, the associated goodwill related to the acquisition of Mediscan is fully allocated to Nurse and Allied Staffing. 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). Of the purchase price, $2.5 million was deferred and 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 incurred $0.4 million in COBRA expenses since the MSN acquisition and, on April 1, 2016, released to the seller the remaining liability of $2.1 million . Pro Forma Financial Information The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the Mediscan acquisition had occurred as of January 1, 2015, 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 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 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. Three Months Ended March 31, 2015 (unaudited, amounts in thousands) Revenue from services $ 196,549 Net income attributable to common shareholders $ 3,394 Net income per share attributable to common shareholders - Basic $ 0.11 Net income per share attributable to common shareholders - Diluted $ 0.10 |
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2016 | |
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 at both March 31, 2016 and December 31, 2015 . There was no income tax impact related to foreign currency translation adjustments for the three months ended March 31, 2016 and March 31, 2015 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 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 March 31, 2016 2015 (amounts in thousands, except per share data) Numerator: Net income attributable to common shareholders - Basic $ 19,022 $ 2,934 Interest on Convertible Notes 838 829 Gain on derivative liability (16,436 ) (2,147 ) Net income attributable to common shareholders - Diluted $ 3,424 $ 1,616 Denominator: Weighted average common shares - Basic 31,956 31,294 Effective of dilutive shares: Share-based awards 703 639 Convertible Notes 3,521 3,521 Weighted average common shares - Diluted 36,180 35,454 Net income per share attributable to common shareholders - Basic $ 0.60 $ 0.09 Net income per share attributable to common shareholders - Diluted $ 0.09 $ 0.05 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. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES As of March 31, 2016 and December 31, 2015 , the Company had the following acquired intangible assets: March 31, 2016 December 31, 2015 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 $ 31,225 $ 14,650 $ 16,575 $ 31,225 $ 14,150 $ 17,075 Customer relationships 47,204 21,558 25,646 47,204 20,734 26,470 Non-compete agreements 3,603 3,496 107 3,603 3,486 117 Trade names, definite-lived 3,200 122 3,078 3,200 49 3,151 $ 85,232 $ 39,826 $ 45,406 $ 85,232 $ 38,419 $ 46,813 Intangible assets not subject to amortization: Goodwill $ 95,096 $ 95,096 Trade names 36,101 36,101 $ 131,197 $ 131,197 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At March 31, 2016 and December 31, 2015 , long-term debt consists of the following: March 31, 2016 December 31, 2015 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs (amounts in thousands) Senior Secured Asset-Based, weighted average interest 2.00% and 2.41% at March 31, 2016 and December 31, 2015, respectively $ 6,000 $ — $ 8,000 $ — Second Lien Term Loan, interest 5.75% at March 31, 2016 and December 31, 2015 30,000 (977 ) 30,000 (1,052 ) Convertible Notes, fixed rate interest of 8.00% 25,000 (5,675 ) 25,000 (6,007 ) Convertible Notes derivative liability 16,901 — 33,337 — Capital lease obligations 67 — 94 — Total debt 77,968 (6,652 ) 96,431 (7,059 ) Less current portion (6,049 ) — (8,071 ) — Long-term debt $ 71,919 $ (6,652 ) $ 88,360 $ (7,059 ) Senior Credit Facility As of March 31, 2016 , 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 March 31, 2016 , 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 March 31, 2016 , was 0.375% . As of March 31, 2016 , the Gross Availability, as defined in the First Lien Loan Agreement, was approximately $77.6 million based on the Company's accounts receivable balance as of February 29, 2016. The Company had $23.5 million letters of credit outstanding and $6.0 million drawn under its revolving credit facility, leaving $48.1 million available as of March 31, 2016 . 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). As of March 31, 2016 , 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. 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, 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 Company was not required to make a mandatory prepayment for the fiscal year ending December 31, 2015. 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 and, as of March 31, 2016 , the Company's "debt" to "EBITDA" ratio was 1.47:1.00 . The Company was in compliance with the financial covenants and other covenants contained in the agreement as of March 31, 2016 . Convertible Notes As of March 31, 2016 , 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 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 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 in the line item long-term debt on the Company's condensed consolidated balance sheets. See Note 7 - Debt. 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: March 31, 2016 Closing share price $11.63 Conversion price $7.10 Risk-free rate 1.13% Expected volatility 40% Dividend yield —% Expected life 4.25 The fair value of this derivative liability is primarily determined by fluctuations in our stock price. As of March 31, 2016 , a $1 increase or decrease in our stock price would result in a corresponding increase of approximately $3.4 million or corresponding decrease of approximately $3.2 million in the fair value of the derivative liability, and a 1% increase or decrease in interest rates would result in a corresponding increase of $0.8 million or corresponding decrease of approximately $0.7 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , 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, convertible notes derivative liability included in long-term debt and capital lease obligations, and contingent purchase price liabilities included in deferred purchase price on the condensed consolidated balance sheets. Contingent consideration receivable —In connection with the sale of its education seminars business, Cross Country Education, LLC ("CCE"), the Company treated a related performance-based earnout as a contingent consideration receivable at December 31, 2015 for accounting purposes. The Company assigned no fair value to this earnout as of December 31, 2015 as the performance milestones were not met. The amount escrowed for this earnout was released to the Buyer in the first quarter of 2016. 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 8 - Convertible Notes Derivative Liability. Contingent purchase price liabilities —Potential earnout payments related to the acquisition of Mediscan are contingent upon meeting certain performance requirements through 2019. See Note 3 - Acquisitions. The long-term portion of these liabilities are included as deferred purchase price, and the short-term portion is included in other current liabilities on the condensed consolidated balance sheets. The Company utilized Level 3 inputs to value these contingent purchase price liabilities as significant unobservable inputs were used in the calculation of their fair value. Contingent consideration is recorded as a liability and measured at fair value using a discounted cash flow model in a Monte Carlo simulation setting, utilizing significant unobservable inputs, including the expected volatility of Mediscan gross profits and an estimated discount rate commensurate with the risks of the expected gross profit stream. Significant increases (decreases) in the volatility, or decreases (increases) in the discount rate would result in a significantly higher (lower) fair value, respectively, and commensurate changes to these liabilities. The fair value of contingent consideration and the associated liabilities will be adjusted to fair value at each reporting date until actual settlement occurs, with the changes in fair value and liability accretion reflected as acquisition-related contingent consideration on the condensed consolidated statements of operations. The table which follows summarizes the estimated fair value of the Company’s financial assets and liabilities measured on a recurring basis as of March 31, 2016 and December 31, 2015 : Fair Value Measurements March 31, 2016 December 31, 2015 Financial Liabilities: (amounts in thousands) (Level 1) Deferred compensation $ 1,271 $ 1,412 (Level 3) Convertible notes derivative liability $ 16,901 $ 33,337 Contingent purchase price liabilities $ 3,956 $ 3,686 The table which follows reconciles the opening balances to the closing balances for fair value measurements categorized within Level 3 of the fair value hierarchy: Contingent Purchase Convertible Notes Price Liabilities (a) Derivative Liability (amounts in thousands) December 31, 2015 $ 3,686 $ 33,337 Additions — — Payments (17 ) — Accretion expense 287 — Valuation gain for the period — (16,436 ) March 31, 2016 $ 3,956 $ 16,901 _______________ (a) Related to the Mediscan acquisition on October 30, 2015. See Note 3 - Acquisitions. The key assumptions used to calculate the fair value of contingent consideration at the acquisition date remained consistent at March 31, 2016 . Accretion expense is included as acquisition-related contingent consideration on the condensed consolidated statement of operations. Should the assumptions regarding probability of achievement of certain targets change in future periods, the change in fair value of the contingent consideration will be recognized, along with accretion expense, as acquisition-related contingent consideration. 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. In the fourth quarter of 2015, 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 $2.1 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, 2015 . Fair Value Measurements December 31, 2015 (amounts in thousands) (Level 3) MDA trade names $ 15,599 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 a 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: March 31, 2016 December 31, 2015 Carrying Fair Carrying Fair Financial Liabilities: (amounts in thousands) (Level 2) Second Lien Term Loan, net $ 29,023 $ 30,600 $ 28,948 $ 30,600 Convertible Notes, net $ 19,325 $ 23,750 $ 18,993 $ 23,250 Senior Secured Asset-Based Loan $ 6,000 $ 6,000 $ 8,000 $ 8,000 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 | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program During the three months ended March 31, 2016 and 2015 , the Company did not repurchase any shares of its Common Stock under its February 2008 Board authorization. As of March 31, 2016 , 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 March 31, 2016 , the Company had 32,012,505 shares of Common Stock outstanding. Share-Based Payments During the three months ended March 31, 2016 , 195,311 of both restricted stock awards and performance stock awards were granted under the 2014 Omnibus Incentive Plan (2014 Plan) to the Company's non-employee Directors and management team. Pursuant to the 2014 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 2016 awards, restricted stock will be issued with a vesting date of December 31, 2018, subject to the employee’s continuing employment. During the first quarter of 2016, the Company's Compensation Committee of the Board of Directors approved a 100% level of attainment for the 2015 performance-based share awards, resulting in the issuance of 148,178 performance shares that will vest on December 31, 2017. The following table summarizes restricted stock awards and performance stock awards activity issued under the 2014 Plan for the three months ended March 31, 2016 : Restricted Stock Awards Performance Stock Awards Number of Weighted Number of Target Weighted Unvested restricted stock awards, January 1, 2016 586,488 $ 7.82 234,138 $ 9.81 Granted 195,311 $ 11.63 195,311 $ 11.63 Vested (69,396 ) $ 10.25 — $ — Forfeited (9,657 ) $ 10.61 (6,324 ) $ 11.86 Unvested restricted stock awards, March 31, 2016 702,746 $ 8.60 423,125 $ 10.62 During the three months ended March 31, 2016 , $0.6 million was included in selling, general and administrative expenses related to share-based payments, and a net of 51,091 shares of Common Stock were issued upon the vesting of restricted stock. During the three months ended March 31, 2015 , $0.4 million was included in selling, general and administrative expenses related to share-based payments, and a net of 14,459 shares of Common Stock were issued upon the vesting of restricted stock. |
SEGMENT DATA
SEGMENT DATA | 3 Months Ended |
Mar. 31, 2016 | |
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, public schools and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, retailers, and many other healthcare providers throughout the U.S. The results of the Mediscan acquisition have been aggregated with the Company's Nurse and Allied Staffing business segment. See Note 3 - Acquisitions. ● 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 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 March 31, 2016 2015 (amounts in thousands) Revenues: Nurse and Allied Staffing $ 168,765 $ 149,112 Physician Staffing 24,453 27,347 Other Human Capital Management Services 3,365 9,505 $ 196,583 $ 185,964 Contribution income: (a) Nurse and Allied Staffing (b) $ 16,790 $ 10,902 Physician Staffing 1,553 2,116 Other Human Capital Management Services (111 ) 602 18,232 13,620 Unallocated corporate overhead (b) 10,368 7,840 Depreciation 1,005 960 Amortization 1,407 982 Acquisition and integration costs — 118 Acquisition-related contingent consideration 287 — Income from operations $ 5,165 $ 3,720 _______________ (a) The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, acquisition-related contingent consideration 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. (b) For the three months ended March 31, 2015 , $0.3 million of expenses was reclassified from Nurse and Allied Staffing to unallocated corporate overhead to conform to the current period presentation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , associated with these agreements with terms of one year or more are as follows: Through Year Ending December 31: (amounts in thousands) 2016 $ 5,227 2017 6,367 2018 5,409 2019 4,252 2020 3,781 Thereafter 15,472 $ 40,508 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 within other current liabilities as of December 31, 2015 and March 31, 2016 , on its condensed consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the periods ended March 31, 2016 and 2015 , 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 months ended March 31, 2016 and March 31, 2015 was 4.0% and 25.4% , respectively, including the impact of discrete items. Excluding discrete items, the Company’s effective tax rate for the three months ended March 31, 2016 and March 31, 2015 was 3.9% and 17.4% , 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. 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. As of March 31, 2016 , the Company had approximately $0.9 million of unrecognized tax benefits included in other current liabilities and other long-term liabilities ( $4.0 million , net of deferred taxes, which would affect the effective tax rate if recognized). The tax years of 2004, 2005, 2008, and 2010 through 2015 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 $1.3 million and $3.0 million for the three months ended March 31, 2016 and March 31, 2015 , respectively. Accounts receivable due from these hospitals at both March 31, 2016 and December 31, 2015 were approximately $0.6 million . 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 $3.1 million and $2.2 million for the three months ended March 31, 2016 and March 31, 2015 , respectively. At both March 31, 2016 and December 31, 2015 , the Company had a receivable balance of $1.4 million and a payable balance of $0.2 million , relating to these staffing services. Subsequent to the Company's acquisition of Mediscan on October 30, 2015, Mediscan continued to operate at premises owned, in part, by the founding members of Mediscan. The Company paid $0.1 million in rent expense for these premises for the three months ended March 31, 2016 . |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing, which amends certain aspects of ASU No. 2014-09. ASU 2016-10 amends step two of the new revenue standard's five-step model to include guidance on immaterial promised goods or services, shipping and handling activities and identifying when promises represent performance obligations. ASU 2016-10 also provides guidance related to licensing such as, but not limited to, sales-based and usage-based royalties and renewals of licenses that provide a right to use intellectual property. The effective date and transition requirements for ASU 2016-10 are the same as those for ASU 2014-09. The Company is currently evaluating the effect ASU 2016-10 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. There are various methods of adoption for each aspect. The Company is currently evaluating the effect ASU 2016-09 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarifies the implementation guidance on principal versus agent considerations. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. When an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. The ASU has the same effective date and transition requirements as ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date, discussed below. The Company is currently evaluating the effect ASU 2016-08 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments , to clarify the steps required to assess whether a call or put option meets the criteria for bifurcation as an embedded derivative. ASU 2016-06 is effective for interim and annual periods beginning after December 15, 2016, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the effect ASU 2016-06 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which will require, among other items, lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief. Full retrospective application is prohibited. The Company is currently evaluating the effect ASU 2016-02 will have on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU No. 2014-09, 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. 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. ASU 2014-09 may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. The Company is currently evaluating the effect ASU 2014-09 will have on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting | 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, 2016. 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, 2015 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The December 31, 2015 condensed consolidated balance sheet included herein was derived from the December 31, 2015 audited consolidated balance sheet included in the Company’s Annual Report on Form 10-K. Certain prior period amounts have been reclassified to conform to the current period presentation. See Note 11 - Segment Data. |
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 and the purchase price allocation, 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 September 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 Company adopted this guidance in the first quarter of 2016, with no impact on its financial position and results of operations upon adoption. This new guidance may impact the Company for potential measurement adjustments related to its 2015 acquisition. See Note 3 - Acquisitions. 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 Company prospectively adopted this guidance in the first quarter of 2016, with no impact on adoption. 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. The Company adopted this guidance in the first quarter of 2016, and reclassified $0.5 million of the Company's net debt issuance costs to long-term debt and capital lease obligations in its condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 . In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. There are various methods of adoption for each aspect. The Company is currently evaluating the effect ASU 2016-09 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which clarifies the implementation guidance on principal versus agent considerations. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. When an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. The ASU has the same effective date and transition requirements as ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), Deferral of the Effective Date, discussed below. The Company is currently evaluating the effect ASU 2016-08 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments , to clarify the steps required to assess whether a call or put option meets the criteria for bifurcation as an embedded derivative. ASU 2016-06 is effective for interim and annual periods beginning after December 15, 2016, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company is currently evaluating the effect ASU 2016-06 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which will require, among other items, lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief. Full retrospective application is prohibited. The Company is currently evaluating the effect ASU 2016-02 will have on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board jointly issued ASU No. 2014-09, 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. 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. ASU 2014-09 may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
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 Mediscan acquisition had occurred as of January 1, 2015, 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 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 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. Three Months Ended March 31, 2015 (unaudited, amounts in thousands) Revenue from services $ 196,549 Net income attributable to common shareholders $ 3,394 Net income per share attributable to common shareholders - Basic $ 0.11 Net income per share attributable to common shareholders - Diluted $ 0.10 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 (amounts in thousands, except per share data) Numerator: Net income attributable to common shareholders - Basic $ 19,022 $ 2,934 Interest on Convertible Notes 838 829 Gain on derivative liability (16,436 ) (2,147 ) Net income attributable to common shareholders - Diluted $ 3,424 $ 1,616 Denominator: Weighted average common shares - Basic 31,956 31,294 Effective of dilutive shares: Share-based awards 703 639 Convertible Notes 3,521 3,521 Weighted average common shares - Diluted 36,180 35,454 Net income per share attributable to common shareholders - Basic $ 0.60 $ 0.09 Net income per share attributable to common shareholders - Diluted $ 0.09 $ 0.05 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | As of March 31, 2016 and December 31, 2015 , the Company had the following acquired intangible assets: March 31, 2016 December 31, 2015 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 $ 31,225 $ 14,650 $ 16,575 $ 31,225 $ 14,150 $ 17,075 Customer relationships 47,204 21,558 25,646 47,204 20,734 26,470 Non-compete agreements 3,603 3,496 107 3,603 3,486 117 Trade names, definite-lived 3,200 122 3,078 3,200 49 3,151 $ 85,232 $ 39,826 $ 45,406 $ 85,232 $ 38,419 $ 46,813 Intangible assets not subject to amortization: Goodwill $ 95,096 $ 95,096 Trade names 36,101 36,101 $ 131,197 $ 131,197 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | At March 31, 2016 and December 31, 2015 , long-term debt consists of the following: March 31, 2016 December 31, 2015 Principal Unamortized Discount and Debt Issuance Costs Principal Unamortized Discount and Debt Issuance Costs (amounts in thousands) Senior Secured Asset-Based, weighted average interest 2.00% and 2.41% at March 31, 2016 and December 31, 2015, respectively $ 6,000 $ — $ 8,000 $ — Second Lien Term Loan, interest 5.75% at March 31, 2016 and December 31, 2015 30,000 (977 ) 30,000 (1,052 ) Convertible Notes, fixed rate interest of 8.00% 25,000 (5,675 ) 25,000 (6,007 ) Convertible Notes derivative liability 16,901 — 33,337 — Capital lease obligations 67 — 94 — Total debt 77,968 (6,652 ) 96,431 (7,059 ) Less current portion (6,049 ) — (8,071 ) — Long-term debt $ 71,919 $ (6,652 ) $ 88,360 $ (7,059 ) |
CONVERTIBLE NOTES DERIVATIVE 27
CONVERTIBLE NOTES DERIVATIVE LIABILITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Inputs into Valuation Model | The inputs into the valuation model are as follows: March 31, 2016 Closing share price $11.63 Conversion price $7.10 Risk-free rate 1.13% Expected volatility 40% Dividend yield —% Expected life 4.25 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 : Fair Value Measurements March 31, 2016 December 31, 2015 Financial Liabilities: (amounts in thousands) (Level 1) Deferred compensation $ 1,271 $ 1,412 (Level 3) Convertible notes derivative liability $ 16,901 $ 33,337 Contingent purchase price liabilities $ 3,956 $ 3,686 |
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 categorized within Level 3 of the fair value hierarchy: Contingent Purchase Convertible Notes Price Liabilities (a) Derivative Liability (amounts in thousands) December 31, 2015 $ 3,686 $ 33,337 Additions — — Payments (17 ) — Accretion expense 287 — Valuation gain for the period — (16,436 ) March 31, 2016 $ 3,956 $ 16,901 _______________ (a) Related to the Mediscan acquisition on October 30, 2015. See Note 3 - Acquisitions. The key assumptions used to calculate the fair value of contingent consideration at the acquisition date remained consistent at March 31, 2016 . Accretion expense is included as acquisition-related contingent consideration on the condensed consolidated statement of operations. Should the assumptions regarding probability of achievement of certain targets change in future periods, the change in fair value of the contingent consideration will be recognized, along with accretion expense, as acquisition-related contingent consideration. |
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, 2015 . Fair Value Measurements December 31, 2015 (amounts in thousands) (Level 3) MDA trade names $ 15,599 |
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: March 31, 2016 December 31, 2015 Carrying Fair Carrying Fair Financial Liabilities: (amounts in thousands) (Level 2) Second Lien Term Loan, net $ 29,023 $ 30,600 $ 28,948 $ 30,600 Convertible Notes, net $ 19,325 $ 23,750 $ 18,993 $ 23,250 Senior Secured Asset-Based Loan $ 6,000 $ 6,000 $ 8,000 $ 8,000 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock awards and performance stock awards activity issued under the 2014 Plan for the three months ended March 31, 2016 : Restricted Stock Awards Performance Stock Awards Number of Weighted Number of Target Weighted Unvested restricted stock awards, January 1, 2016 586,488 $ 7.82 234,138 $ 9.81 Granted 195,311 $ 11.63 195,311 $ 11.63 Vested (69,396 ) $ 10.25 — $ — Forfeited (9,657 ) $ 10.61 (6,324 ) $ 11.86 Unvested restricted stock awards, March 31, 2016 702,746 $ 8.60 423,125 $ 10.62 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 (amounts in thousands) Revenues: Nurse and Allied Staffing $ 168,765 $ 149,112 Physician Staffing 24,453 27,347 Other Human Capital Management Services 3,365 9,505 $ 196,583 $ 185,964 Contribution income: (a) Nurse and Allied Staffing (b) $ 16,790 $ 10,902 Physician Staffing 1,553 2,116 Other Human Capital Management Services (111 ) 602 18,232 13,620 Unallocated corporate overhead (b) 10,368 7,840 Depreciation 1,005 960 Amortization 1,407 982 Acquisition and integration costs — 118 Acquisition-related contingent consideration 287 — Income from operations $ 5,165 $ 3,720 _______________ (a) The Company defines contribution income as income or loss from operations before depreciation, amortization, acquisition and integration costs, acquisition-related contingent consideration 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. (b) For the three months ended March 31, 2015 , $0.3 million of expenses was reclassified from Nurse and Allied Staffing to unallocated corporate overhead to conform to the current period presentation. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments, as of March 31, 2016 , associated with these agreements with terms of one year or more are as follows: Through Year Ending December 31: (amounts in thousands) 2016 $ 5,227 2017 6,367 2018 5,409 2019 4,252 2020 3,781 Thereafter 15,472 $ 40,508 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Long-term Debt and Capital Lease Obligations [Member] | Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of debt issuance costs | $ 0.5 | $ 0.5 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2016 | Oct. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Acquisition-related contingent consideration | $ 287 | $ 0 | ||||
Mediscan [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration negotiated | $ 28,000 | |||||
Cash purchase price paid at closing | 29,900 | |||||
Fair value of shares | $ 4,700 | |||||
Fair value of shares (in shares) | 349,871 | |||||
Contingent consideration, range of outcomes, high | $ 7,000 | |||||
Medical Staffing Network [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Deferred consideration | $ 2,500 | |||||
Period of deferred consideration (in months) | 21 months | |||||
Additional exit liabilities | $ 400 | |||||
Subsequent Event [Member] | Medical Staffing Network [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related contingent consideration | $ (2,100) |
ACQUISITIONS - Schedule of Pro-
ACQUISITIONS - Schedule of Pro-forma Information (Details) - Mediscan [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue from services | $ | $ 196,549 |
Net income attributable to common shareholders | $ | $ 3,394 |
Net income per share attributable to common shareholders - Basic (in dollars per share) | $ / shares | $ 0.11 |
Net income per share attributable to common shareholders - Diluted (in dollars per share) | $ / shares | $ 0.10 |
COMPREHENSIVE INCOME (LOSS) (De
COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Cumulative impact of currency fluctuations | $ (1,200,000) | $ (1,200,000) | |
Income tax impact related to foreign currency translation adjustments | $ 0 | $ 0 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common shareholders - Basic | $ 19,022 | $ 2,934 |
Interest on Convertible Notes | 838 | 829 |
Gain on derivative liability | (16,436) | (2,147) |
Net income attributable to common shareholders - Diluted | $ 3,424 | $ 1,616 |
Weighted average common shares - Basic | 31,956 | 31,294 |
Effective of dilutive shares: | ||
Share-based awards (shares) | 703 | 639 |
Convertible Notes (shares) | 3,521 | 3,521 |
Diluted weighted average common shares outstanding (shares) | 36,180 | 35,454 |
Net income per share attributable to common shareholders - Basic | ||
Net income per share attributable to common shareholders - Basic (in dollars per share) | $ 0.60 | $ 0.09 |
Net income per share attributable to common shareholders - Diluted | ||
Net income per share attributable to common shareholders - Diluted (in dollars per share) | $ 0.09 | $ 0.05 |
GOODWILL AND OTHER INTANGIBLE37
GOODWILL AND OTHER INTANGIBLES - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 85,232 | $ 85,232 |
Accumulated Amortization | 39,826 | 38,419 |
Intangible assets subject to amortization, net carrying amount | 45,406 | 46,813 |
Goodwill | 95,096 | 95,096 |
Trade names | 36,101 | 36,101 |
Intangible assets not subject to amortization, net | 131,197 | 131,197 |
Database Rights [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,225 | 31,225 |
Accumulated Amortization | 14,650 | 14,150 |
Intangible assets subject to amortization, net carrying amount | 16,575 | 17,075 |
Customer Relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47,204 | 47,204 |
Accumulated Amortization | 21,558 | 20,734 |
Intangible assets subject to amortization, net carrying amount | 25,646 | 26,470 |
Noncompete Agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,603 | 3,603 |
Accumulated Amortization | 3,496 | 3,486 |
Intangible assets subject to amortization, net carrying amount | 107 | 117 |
Trademarks [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,200 | 3,200 |
Accumulated Amortization | 122 | 49 |
Intangible assets subject to amortization, net carrying amount | $ 3,078 | $ 3,151 |
DEBT - Long- Term Debt (Detail
DEBT - Long- Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 67 | $ 94 |
Total debt | 77,968 | 96,431 |
Less current portion | (6,049) | (8,071) |
Long-term debt | 71,919 | 88,360 |
Unamortized Discount and Debt Issuance Costs | (6,652) | (7,059) |
Unamortized Discount and Debt Issuance Costs, Noncurrent | (6,652) | (7,059) |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 6,000 | 8,000 |
Unamortized Discount and Debt Issuance Costs | $ 0 | $ 0 |
Revolver credit facility, interest rate | 2.00% | 2.41% |
Second Lien Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 30,000 | $ 30,000 |
Unamortized Discount and Debt Issuance Costs | $ (977) | $ (1,052) |
Interest Rate | 5.75% | 5.75% |
Convertible Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 25,000 | $ 25,000 |
Unamortized Discount and Debt Issuance Costs | $ (5,675) | $ (6,007) |
Interest Rate | 8.00% | 8.00% |
Convertible Note Derivative Liability [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 16,901 | $ 33,337 |
Unamortized Discount and Debt Issuance Costs | $ 0 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
First Lien Loan Agreement [Member] | |
Debt Instrument [Line Items] | |
Quarterly commitment fee on the average daily unused portion (percent) | 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) (percent) | 2.00% |
Revolving Credit Facility [Member] | First Lien Loan Agreement [Member] | |
Debt Instrument [Line Items] | |
Line of credit outstanding | $ 6,000,000 |
Remaining borrowing capacity | 48,100,000 |
Second Lien Term Loan [Member] | |
Debt Instrument [Line Items] | |
Credit facility maximum borrowing capacity | $ 30,000,000 |
Interest rate increase (decrease) (percent) | 2.00% |
Line of credit facility, term (in years) | 5 years |
Mandatory prepayments as percentage of excess cash flow (percent) | 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 | 1.47 |
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% |
First Lien Loan Agreement [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit facility maximum borrowing capacity | $ 85,000,000 |
Current borrowing capacity | $ 77,600,000 |
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 (percent) | 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 |
Maximum [Member] | Second Lien Term Loan [Member] | |
Debt Instrument [Line Items] | |
Debt to EBITDA ratio | 4.50 |
London Interbank Offered Rate (LIBOR) [Member] | Second Lien Term Loan [Member] | |
Debt Instrument [Line Items] | |
Interest margin | 4.75% |
Variable rate, floor | 1.00% |
DEBT - Private Placement of Con
DEBT - Private Placement of Convertible Notes Narrative (Details) - Convertible Senior Notes [Member] | 3 Months Ended |
Mar. 31, 2016instrumentd$ / shares | |
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 |
Interest rate (percent) | 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 41
CONVERTIBLE NOTES DERIVATIVE LIABILITY (Details) | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Closing share price (in usd per share) | $ 11.63 |
Conversion price (in usd per share) | $ 7.10 |
Risk-free rate (as a percentage) | 1.13% |
Expected volatility (as a percentage) | 40.00% |
Dividend yield (as a percentage) | 0.00% |
Expected life (in years) | 4 years 3 months |
CONVERTIBLE NOTES DERIVATIVE 42
CONVERTIBLE NOTES DERIVATIVE LIABILITY - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / shares | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Increase in valuation of embedded derivative liability due to dollar change in stock price | $ 3.4 |
Decrease in valuation of embedded derivative liability due to dollar change in stock price | 3.2 |
Increase in valuation of embedded derivative liability due to percentage change in interest rates | 0.8 |
Decrease in valuation of embedded derivative liability due to percentage change in interest rates | $ 0.7 |
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) | $ / shares | $ 1 |
Change in interest rates (as a percentage) | 1.00% |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | |
Trade Names [Member] | Physician Staffing [Member] | ||
Fair Value Measurement [Line Items] | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 2.1 |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair values Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 1 [Member] | Deferred compensation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | $ 1,271 | $ 1,412 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent purchase price liabilities | 3,956 | 3,686 |
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 | $ 16,901 | $ 33,337 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of reconciliation of opening and closing balances for fair value measurements categorized within Level 3 (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Contingent Consideration Liability [Member] | |
Convertible Note Derivative Liability | |
Beginning balance | $ 3,686 |
Additions | 0 |
Payments | (17) |
Accretion expense | 287 |
Valuation gain for the period | 0 |
Ending balance | 3,956 |
Derivative Financial Instruments, Liabilities [Member] | |
Convertible Note Derivative Liability | |
Beginning balance | 33,337 |
Additions | 0 |
Payments | 0 |
Accretion expense | 0 |
Valuation gain for the period | (16,436) |
Ending balance | $ 16,901 |
FAIR VALUE MEASUREMENTS - Est46
FAIR VALUE MEASUREMENTS - Estimated Fair Values Assets and Liabilities Measured on Non-Recurring Basis (Details) $ in Thousands | Dec. 31, 2015USD ($) |
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 | $ 15,599 |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Second Lien Term Loan [Member] | Reported Value Measurement [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Carrying Amount | $ 29,023 | $ 28,948 |
Second Lien Term Loan [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Fair Value | 30,600 | 30,600 |
Convertible Notes, Net [Member] | Reported Value Measurement [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Carrying Amount | 19,325 | 18,993 |
Convertible Notes, Net [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Fair Value | 23,750 | 23,250 |
Senior Secured Asset Based [Member] | Reported Value Measurement [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Carrying Amount | 6,000 | 8,000 |
Senior Secured Asset Based [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Fair Value | $ 6,000 | $ 8,000 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | 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 | ||
Stock repurchase program, authorized amount (up to) | $ 5,000,000 | ||
Number of shares of common stock outstanding | 32,012,505 | ||
Share-based compensation | $ 648,000 | $ 376,000 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 195,311 | ||
Vested in period, net (in shares) | 51,091 | 14,459 | |
Restricted Stock [Member] | Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 195,311 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 195,311 | ||
Performance Shares [Member] | Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 195,311 | ||
Level of performance attained and approved (percent) | 100.00% | ||
Shares issued in period | 148,178 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Restricted Stock and Performance Shares (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Restricted Stock [Member] | |
Number of Shares | |
Unvested restricted stock awards, Beginning balance (in shares) | shares | 586,488 |
Granted (in shares) | shares | 195,311 |
Vested (in shares) | shares | (69,396) |
Forfeited (in shares) | shares | (9,657) |
Unvested restricted stock awards, Ending balance (in shares) | shares | 702,746 |
Weighted Average Grant Date Fair Value (in usd per share) | |
Unvested restricted stock awards, Beginning balance (in dollars per share) | $ / shares | $ 7.82 |
Granted (in dollars per share) | $ / shares | 11.63 |
Vested (in dollars per share) | $ / shares | 10.25 |
Forfeited (in dollars per share) | $ / shares | 10.61 |
Unvested restricted stock awards, Ending balance (in dollars per share) | $ / shares | $ 8.60 |
Performance Shares [Member] | |
Number of Shares | |
Unvested restricted stock awards, Beginning balance (in shares) | shares | 234,138 |
Granted (in shares) | shares | 195,311 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (6,324) |
Unvested restricted stock awards, Ending balance (in shares) | shares | 423,125 |
Weighted Average Grant Date Fair Value (in usd per share) | |
Unvested restricted stock awards, Beginning balance (in dollars per share) | $ / shares | $ 9.81 |
Granted (in dollars per share) | $ / shares | 11.63 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 11.86 |
Unvested restricted stock awards, Ending balance (in dollars per share) | $ / shares | $ 10.62 |
SEGMENT DATA - Narrative (Detai
SEGMENT DATA - Narrative (Details) | 3 Months Ended |
Mar. 31, 2016segment | |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | $ 196,583 | $ 185,964 |
Contribution income | 18,232 | 13,620 |
Unallocated corporate overhead | 10,368 | 7,840 |
Depreciation | 1,005 | 960 |
Amortization | 1,407 | 982 |
Acquisition and integration costs | 0 | 118 |
Income from operations | 5,165 | 3,720 |
Acquisition-related contingent consideration | 287 | 0 |
Operating Segments [Member] | Nurse and allied staffing [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 168,765 | 149,112 |
Contribution income | 16,790 | 10,902 |
Operating Segments [Member] | Physician staffing [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 24,453 | 27,347 |
Contribution income | 1,553 | 2,116 |
Operating Segments [Member] | Other human capital management services [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenues | 3,365 | 9,505 |
Contribution income | $ (111) | 602 |
Scenario, Adjustment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Contribution income | 300 | |
Scenario, Adjustment [Member] | Nurse and allied staffing [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Contribution income | $ (300) |
COMMITMENTS AND CONTINGENIES (D
COMMITMENTS AND CONTINGENIES (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 5,227 |
2,017 | 6,367 |
2,018 | 5,409 |
2,019 | 4,252 |
2,020 | 3,781 |
Thereafter | 15,472 |
Total future minimum lease payments | $ 40,508 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percentage) | 4.00% | 25.40% |
Effective income tax rate continuing operations excluding discrete items (percentage) | 3.90% | 17.40% |
Unrecognized tax benefits | $ 0.9 | |
Unrecognized tax benefits that would impact effective tax rate | $ 4 | |
Income tax examination years subject to examination | 2004, 2005, 2008, and 2010 through 2015 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1.3 | $ 3 | |
Accounts receivable from related parties | 0.6 | $ 0.6 | |
InteliStaf [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 3.1 | $ 2.2 | |
Joint venture, percent ownership | 68.00% | ||
Receivable balance with joint venture | $ 1.4 | 1.4 | |
Payable balance with joint venture | 0.2 | $ 0.2 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Rent expense | $ 0.1 |