Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
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 | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 36,294,714 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 32,559 | $ 25,537 |
Accounts receivable, net of allowances of $3,609 in 2018 and $3,688 in 2017 | 162,424 | 173,603 |
Prepaid expenses | 6,433 | 5,287 |
Insurance recovery receivable | 3,074 | 3,497 |
Other current assets | 1,210 | 963 |
Total current assets | 205,700 | 208,887 |
Property and equipment, net of accumulated depreciation of $32,958 in 2018 and $30,678 in 2017 | 14,072 | 14,086 |
Goodwill | 117,589 | 117,589 |
Trade names | 26,702 | 26,702 |
Other intangible assets, net | 57,392 | 60,976 |
Non-current deferred tax assets | 18,382 | 20,219 |
Other non-current assets | 19,364 | 19,228 |
Total assets | 459,201 | 467,687 |
Current liabilities: | ||
Accounts payable and accrued expenses | 46,772 | 50,597 |
Accrued compensation and benefits | 32,559 | 34,271 |
Current portion of long-term debt | 6,250 | 6,875 |
Other current liabilities | 2,861 | 2,845 |
Total current liabilities | 88,442 | 94,588 |
Long-term debt, less current portion | 90,494 | 92,259 |
Long-term accrued claims | 29,215 | 28,757 |
Contingent consideration | 5,302 | 5,088 |
Other long-term liabilities | 8,877 | 9,276 |
Total liabilities | 222,330 | 229,968 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock | 4 | 4 |
Additional paid-in capital | 301,353 | 305,362 |
Accumulated other comprehensive loss | (1,160) | (1,166) |
Accumulated deficit | (63,930) | (67,111) |
Total Cross Country Healthcare, Inc. stockholders' equity | 236,267 | 237,089 |
Noncontrolling interest in subsidiary | 604 | 630 |
Total stockholders' equity | 236,871 | 237,719 |
Total liabilities and stockholders' equity | $ 459,201 | $ 467,687 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,609 | $ 3,688 |
Property and equipment, accumulated depreciation | $ 32,958 | $ 30,678 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue from services | $ 204,572 | $ 209,313 | $ 414,860 | $ 416,886 |
Operating expenses: | ||||
Direct operating expenses | 150,883 | 152,785 | 307,418 | 307,083 |
Selling, general and administrative expenses | 45,284 | 46,600 | 90,918 | 93,836 |
Bad debt expense | 611 | 326 | 810 | 649 |
Depreciation and amortization | 2,963 | 2,285 | 5,872 | 4,476 |
Acquisition-related contingent consideration | 220 | 281 | 433 | 551 |
Acquisition and integration costs | 76 | 587 | 191 | 587 |
Restructuring costs | 193 | 0 | 628 | 0 |
Total operating expenses | 200,230 | 202,864 | 406,270 | 407,182 |
Income from operations | 4,342 | 6,449 | 8,590 | 9,704 |
Other expenses (income): | ||||
Interest expense | 1,447 | 535 | 2,713 | 1,754 |
Gain on derivative liability | 0 | 0 | 0 | (1,581) |
Loss on early extinguishment of debt | 0 | 0 | 0 | 4,969 |
Other income, net | (98) | (59) | (199) | (59) |
Income before income taxes | 2,993 | 5,973 | 6,076 | 4,621 |
Income tax expense | 1,169 | 753 | 2,332 | 1,119 |
Consolidated net income | 1,824 | 5,220 | 3,744 | 3,502 |
Less: Net income attributable to noncontrolling interest in subsidiary | 285 | 370 | 563 | 662 |
Net income attributable to common shareholders | $ 1,539 | $ 4,850 | $ 3,181 | $ 2,840 |
Net income per share attributable to common shareholders - Basic (in dollars per share) | $ 0.04 | $ 0.14 | $ 0.09 | $ 0.08 |
Net income per share attributable to common shareholders - Diluted (in dollars per share) | $ 0.04 | $ 0.13 | $ 0.09 | $ 0.05 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 35,652 | 35,651 | 35,727 | 34,269 |
Diluted (shares) | 35,832 | 36,021 | 35,959 | 36,250 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net income | $ 1,824 | $ 5,220 | $ 3,744 | $ 3,502 |
Other comprehensive income, before income tax: | ||||
Unrealized foreign currency translation (loss) gain | (63) | 24 | (90) | 58 |
Unrealized gain on interest rate contracts | 247 | 0 | 19 | 0 |
Reclassification adjustment to interest expense | 86 | 0 | 86 | 0 |
Other comprehensive income, before income tax | 270 | 24 | 15 | 58 |
Taxes on other comprehensive income: | ||||
Income tax benefit related to foreign currency translation adjustments | (13) | 0 | (17) | 0 |
Income tax expense related to unrealized gain on interest rate contracts | 62 | 0 | 5 | 0 |
Income tax expense related to reclassification adjustment to interest expense | 22 | 0 | 22 | 0 |
Taxes on other comprehensive income | 71 | 0 | 10 | 0 |
Other comprehensive income, net of tax | 199 | 24 | 5 | 58 |
Comprehensive income | 2,023 | 5,244 | 3,749 | 3,560 |
Less: Net income attributable to noncontrolling interest in subsidiary | 285 | 370 | 563 | 662 |
Comprehensive income attributable to common shareholders | $ 1,738 | $ 4,874 | $ 3,186 | $ 2,898 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Consolidated net income | $ 3,744 | $ 3,502 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,872 | 4,476 |
Provision for allowances | 2,371 | 1,935 |
Deferred income tax expense | 1,868 | 1,200 |
Gain on derivative liability | 0 | (1,581) |
Loss on early extinguishment of debt | 0 | 4,969 |
Equity compensation | 1,383 | 2,015 |
Other non-cash costs | 651 | 1,002 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,808 | 15,783 |
Prepaid expenses and other assets | (999) | 279 |
Accounts payable and accrued expenses | (4,930) | (8,449) |
Other liabilities | (829) | 394 |
Net cash provided by operating activities | 17,939 | 25,525 |
Cash flows from investing activities | ||
Acquisition-related settlements | (26) | 0 |
Purchases of property and equipment | (2,289) | (3,386) |
Net cash used in investing activities | (2,315) | (3,386) |
Cash flows from financing activities | ||
Principal payments on Term Loans | (2,500) | (1,500) |
Convertible Note cash payment | 0 | (5,000) |
Extinguishment fees | 0 | (578) |
Stock repurchase and retirement | (4,700) | 0 |
Other | (1,366) | (1,778) |
Net cash used in financing activities | (8,566) | (8,856) |
Effect of exchange rate changes on cash | (36) | 23 |
Change in cash and cash equivalents | 7,022 | 13,306 |
Cash and cash equivalents at beginning of period | 25,537 | 20,630 |
Cash and cash equivalents at end of period | $ 32,559 | $ 33,936 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
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 Cross Country Talent Acquisition Group, LLC (formerly 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 United States 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, 2018 . 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, 2017 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The December 31, 2017 condensed consolidated balance sheet included herein was derived from the December 31, 2017 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 year presentation on the condensed consolidated statements of cash flows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
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. Significant estimates and assumptions are used for, but not limited to: (1) the valuation of accounts receivable; (2) goodwill, trade names, and other intangible assets; (3) other long-lived assets; (4) share-based compensation; (5) accruals for health, workers’ compensation, and professional liability claims; (6) valuation of deferred tax assets; (7) purchase price allocation; (8) derivative liability; (9) legal contingencies; (10) contingent considerations; (11) income taxes; and (12) 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. Allowances We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, which results in a provision for bad debt expense. We determine the adequacy of this allowance by continually evaluating individual customer receivables, considering the customer’s financial condition, credit history and current economic conditions. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. We write-off specific accounts based on an ongoing review of collectability as well as our past experience with the customer. In addition, we maintain a sales allowance for customer disputes which may arise in the ordinary course of business, which is recorded as contra-revenue. Historically, losses on uncollectible accounts and sales allowances have not exceeded our allowances. Restructuring Costs The Company considers restructuring activities to be programs whereby it fundamentally changes its operations, such as closing and consolidating facilities, reducing headcount and realigning operations in response to changing market conditions. As a result, restructuring costs on the consolidated statements of operations include on-going benefit costs for its employees and exit costs. Reconciliations of the beginning and ending total restructuring liability balances are presented below: On-Going Benefit Costs Exit Costs (amounts in thousands) Balance at January 1, 2018 $ 87 $ 441 Charged to restructuring costs 435 — Payments (10 ) (54 ) Balance at March 31, 2018 512 387 Charged to restructuring costs 175 18 Payments (254 ) (59 ) Balance at June 30, 2018 $ 433 $ 346 Derivative Financial Instruments The Company is exposed to interest rate risk due to the outstanding senior secured term loan entered into on August 1, 2017 with a variable interest rate. As a result, the Company has entered into an interest rate swap agreement to effectively convert a portion of its variable interest payments to a fixed rate. The principal objective of the interest rate swap is to eliminate or reduce the variability of the cash flows in those interest payments associated with the Company’s long-term debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has determined that the interest rate swap qualifies as a cash flow hedge in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging . As the critical terms of the hedging instrument and the hedged forecasted transaction are the same, the Company has concluded that changes in the cash flows attributable to the risk being hedged are expected to completely offset at inception and on an ongoing basis. Changes in the fair value of an interest rate swap agreement designated as a cash flow hedge are recorded as a component of accumulated other comprehensive income (loss), net of deferred taxes, within stockholders’ equity and are amortized to interest expense over the term of the related debt as the interest payments are made. Future interest rate swap payments will be included in net cash provided by operating activities on the Company’s consolidated statement of cash flows. In conjunction with entering into the interest rate swap agreement, the Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815) to simplify the application of hedge accounting. See Note 9 - Derivative. Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, amended by ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The amendments allow for a reclassification between accumulated other comprehensive income and retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (2017 Tax Act), and require certain disclosures about stranded tax effects. The guidance that requires that the effect of a change in tax laws or rates be included in income is not affected. The amendments would have been effective for the Company in the first quarter of 2019. Adoption of the standard was to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the United States federal corporate tax rate in the 2017 Tax Act is recognized. Early adoption was permitted. The Company adopted this standard in 2018, with no material impact on its consolidated financial statements. In the first quarter of 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 introduces a new five-step revenue recognition model in which an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. See Note 3 - Revenue Recognition for additional accounting policy and related disclosures. The Company elected to adopt the standard using a modified retrospective method, which only impacts contracts not completed as of December 31, 2017. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue Recognition Revenue from the Company’s services is recognized when control of the promised services are transferred to the Company’s customers, in an amount that reflects the consideration it expects to receive in exchange for the service. The Company has concluded that transfer of control of its staffing services, which represents the majority of its revenues, occurs over time as the services are provided, which is consistent with revenue recognition under the prior guidance. The following is a description of the nature, amount, timing and uncertainty of revenue and cash flows from which the Company generates revenue. Temporary Staffing Revenue Revenue from temporary staffing is recognized as control of the services are transferred over time, and is based on hours worked by the Company’s field staff. The Company recognizes the majority of its revenue at the contractual amount the Company has the right to invoice for services completed to date. Generally, billing to customers occurs weekly or bi-weekly and is aligned with the payment of services to the temporary staff, with payment terms of 15 to 60 days. Accounts receivable includes estimated revenue for employees’ and independent contractors’ time worked but not yet invoiced. At June 30, 2018 and December 31, 2017, the Company's estimate of amounts that had been worked but had not been billed totaled $36.2 million and $41.8 million , respectively, and are included in accounts receivable on the consolidated balance sheets. Other Service Revenue The Company offers other optional services to its customers that are transferred over time including: managed service programs (MSP) providing agency services (as further described below in Gross versus Net Policies), recruitment process outsourcing (RPO), other outsourcing services, and retained search services, which is less than 5% of its consolidated revenue for the six months ended June 30, 2018 and June 30, 2017. Generally, billing and payment terms for MSP agency services is consistent with temporary staffing as the customers are similar or the same. Revenue from these services are recognized based on the contractual amount for services completed to date which best depicts the transfer of control of services. For the Company’s RPO, other outsourcing, and retained search services, revenue is generally recognized in the amount to which the entity has a right to invoice which corresponds directly with the value to the customer. The Company does not, in the ordinary course of business, offer warranties or refunds. Gross Versus Net Policies The Company records revenue on a gross basis as a principal or on a net basis as an agent depending on the contracted arrangement, as follows: Managed Service Programs The Company has certain contracts with acute care facilities to provide comprehensive services through its MSPs. Under these contract arrangements, the Company fulfills the customer’s order with either one of its healthcare professionals or a third-party's professionals (subcontractors). If the Company's healthcare professional is staffed, it is determined that the Company acts as a principal in the arrangement, as the Company is considered the employer of record. Accordingly, revenue is reported on a gross basis on the consolidated statements of operations. If a subcontracted healthcare professional is staffed, the customer is invoiced for such services and a subcontractor liability is recorded in accrued expenses, but only the resulting administrative fee is recognized as revenue. The subcontractor is generally paid after the Company has received payment from its customer. The Company determined that it acts as an agent in these arrangements as the Company does not control the services before they are transferred. Accordingly, revenue is reported on a net basis on the consolidated statements of operations. Physician Staffing The Physician Staffing business enters into contracts with its healthcare customers to provide temporary staffing services. The Company uses independent contractors for these services. The Company determined that it acts as a principal in this arrangement and, therefore, revenue is reported on a gross basis on the consolidated statements of operations. The following table presents our revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenue. Three Months ended June 30, 2018 Nurse Physician Other Human Total (amounts in thousands) Temporary Staffing Services $ 175,690 $ 19,943 $ — $ 195,633 Other Services 3,649 1,391 3,899 8,939 Total $ 179,339 $ 21,334 $ 3,899 $ 204,572 Six Months ended June 30, 2018 Nurse Physician Other Human Total (amounts in thousands) Temporary Staffing Services $ 356,829 $ 40,173 $ — $ 397,002 Other Services 7,615 2,721 7,522 17,858 Total $ 364,444 $ 42,894 $ 7,522 $ 414,860 Contract Costs All contract fulfillment costs are expensed as incurred to direct operating expenses. With respect to FASB ASC 606, Revenue from Contracts with Customers , there were no contract assets or material contract liabilities as of June 30, 2018 and December 31, 2017. Practical Expedients and Exemptions For the Company’s contracts that have an original duration of one year or less, the Company uses the practical expedients and has elected to recognize any incremental costs of obtaining these contracts as expensed when incurred. Further, the Company does not disclose the value of unsatisfied performance obligations for: (i) contracts with an original expected length of one year or less, and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Advantage RN Effective July 1, 2017, the Company acquired substantially all of the assets of Advantage RN, LLC and its subsidiaries (collectively, Advantage) for cash consideration of $86.6 million , net of cash acquired. The total purchase price of $88.0 million was subject to a net working capital reduction of $0.6 million at the closing and an additional $0.8 million was received by the Company during the third quarter of 2017 as the final adjustment for net working capital. Additionally, $0.6 million of the purchase price was deferred as of the closing and is due the seller within 20 months, less any Cobra and healthcare payments incurred by the Company on behalf of the seller. As of June 30, 2018, approximately $0.4 million has been paid for claims and the remaining $0.2 million liability is included in other current liabilities on the Company’s balance sheet. Included in the amount paid at closing were two escrow accounts, the first was $14.5 million which related to tax liabilities and the second was $7.5 million which was to cover any post-close liabilities. On July 28, 2017, $7.3 million related to the tax liabilities was released from escrow, leaving a balance of $7.2 million , with the escrow to cover post-close liabilities remaining unchanged. The Company financed the purchase using $19.9 million in available cash and $66.9 million in borrowing under its Credit Facility, including a $40.0 million incremental term loan, which was subsequently refinanced on August 1, 2017. See Note 8 - Debt for further information. The transaction is treated as a purchase of assets for income tax purposes. Advantage is primarily a travel nurse staffing company that deploys many of its nurses through MSPs and Vendor Management Systems, and Advantage maintains direct relationships with many hospitals throughout the United States. This was a strategic acquisition to help the Company fill its recent MSP contract wins, and for revenue growth. The acquisition has been accounted for in accordance with FASB ASC 805, Business Combinations , using the acquisition method of accounting. As such, the results of Advantage from July 1, 2017 are included in the Company's consolidated statement of operations. The acquisition results have been substantially aggregated with the Company's Nurse and Allied Staffing business segment and the associated goodwill related to the acquisition of Advantage is fully allocated to Nurse and Allied Staffing. Pro Forma Financial Information The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the Advantage acquisition had occurred as of January 1, 2017, after giving effect to certain adjustments, including additional interest expense on the amount the Company borrowed on the date of the transaction, the amortization of acquired intangible assets, and the elimination of certain expenses that will not be recurring in post-acquisition periods, net of an estimated income tax impact. These adjustments include removing transaction-related expenses of approximately $0.6 million for the six months ended June 30, 2017. 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. Six Months Ended June 30, 2017 (unaudited, amounts in thousands except per share data) Revenue from services $ 467,987 Net income attributable to common shareholders $ 4,418 Net income per common share attributable to common shareholders - basic $ 0.13 Net income per common share attributable to common shareholders - diluted $ 0.10 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). Earnouts related to the attainment of specific performance criteria in 2016 and 2017 were not achieved. In connection with the Mediscan acquisition, the Company also assumed contingent purchase price liabilities for a previously acquired business that are payable annually based on specific performance criteria for the 2016 through 2019 years. As of June 30, 2018, payments related to the year 2018 are limited to $0.3 million and 2019 is uncapped. During the six months ended June 30, 2018, the Company paid $0.1 million related to the year 2017. As of June 30, 2018, the fair value of the remaining obligations was estimated at $5.5 million and is included in other current liabilities and contingent consideration on the condensed consolidated balance sheets. See Note 10 - Fair Value Measurements. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME Total comprehensive income includes net income, foreign currency translation adjustments, and net change in derivative transactions, 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 an unrealized loss of $1.2 million at June 30, 2018 and December 31, 2017 . The cumulative impact of net changes in derivative instruments included in other comprehensive loss in the condensed consolidated balance sheets was not material at June 30, 2018. See Note 9 - Derivative. There was no income tax impact related to foreign currency translation adjustments for the three and six month period ended June 30, 2017 . The income tax impact related to components of other comprehensive income for the three and six months ended June 30, 2018 is reflected on the condensed consolidated statements of comprehensive income. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 (amounts in thousands, except per share data) Numerator: Net income attributable to common shareholders - Basic $ 1,539 $ 4,850 $ 3,181 $ 2,840 Interest on Convertible Notes — — — 694 Gain on derivative liability — — — (1,581 ) Net income attributable to common shareholders - Diluted $ 1,539 $ 4,850 $ 3,181 $ 1,953 Denominator: Weighted average common shares - Basic 35,652 35,651 35,727 34,269 Effective of diluted shares: Share-based awards 180 370 232 522 Convertible Notes — — — 1,459 Weighted average common shares - Diluted 35,832 36,021 35,959 36,250 Net income per share attributable to common shareholders - Basic $ 0.04 $ 0.14 $ 0.09 $ 0.08 Net income per share attributable to common shareholders - Diluted $ 0.04 $ 0.13 $ 0.09 $ 0.05 For the three months and six months ended June 30, 2018 and 2017, no tax benefits were assumed in the weighted average share calculation due to the Company's net operating loss position. The Convertible Notes were repaid in full on March 17, 2017. Applying the if-converted method, 1,459,030 shares (the weighted average shares outstanding through June 30, 2017) were included in diluted weighted average shares for the six months ended June 30, 2017 because their effect was dilutive. |
GOODWILL, TRADE NAMES, AND OTHE
GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS | GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS The Company had the following acquired intangible assets: June 30, 2018 December 31, 2017 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 $ 42,909 $ 20,221 $ 22,688 $ 42,909 $ 18,702 $ 24,207 Customer relationships 55,524 27,556 27,968 55,524 25,912 29,612 Non-compete agreements 3,919 3,651 268 3,919 3,600 319 Trade names 7,716 1,248 6,468 7,716 878 6,838 Other intangible assets, net $ 110,068 $ 52,676 $ 57,392 $ 110,068 $ 49,092 $ 60,976 Intangible assets not subject to amortization: Trade names 26,702 26,702 $ 84,094 $ 87,678 As of June 30, 2018 , estimated annual amortization expense is as follows: Years Ending December 31: (amounts in thousands) 2018 $ 3,582 2019 7,132 2020 7,027 2021 6,819 2022 6,743 Thereafter 26,089 $ 57,392 As of June 30, 2018, the Company performed a qualitative assessment of each of its reporting units and determined it was less-likely-than-not that the fair value of its reporting units dropped below their carrying value. As a result, management concluded that no impairment testing was warranted as of June 30, 2018. Although management believes that the Company's current estimates and assumptions are reasonable and supportable, there can be no assurance that the estimates and assumptions made for purposes of the impairment testing will prove to be accurate predictions of future performance. As of June 30, 2018 and December 31, 2017, goodwill by reporting segment was: $88.2 million for Nurse and Allied Staffing, $20.0 million for Physician Staffing, and $9.4 million for Other Human Capital Management Services, totaling $117.6 million . |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The Company's long-term debt consists of the following: June 30, 2018 December 31, 2017 Principal Debt Issuance Costs Principal Debt Issuance Costs (amounts in thousands) Term Loan, interest 4.23% and 3.61% at June 30, 2018 and December 31, 2017, respectively $ 97,500 $ (756 ) $ 100,000 $ (866 ) Less current portion (6,250 ) — (6,875 ) — Long-term debt $ 91,250 $ (756 ) $ 93,125 $ (866 ) As of June 30, 2018 , the aggregate scheduled maturities of the term loan are as follows: Term Loan (amounts in thousands) Through Years Ending December 31: 2018 $ 4,375 2019 7,500 2020 8,125 2021 10,000 2022 67,500 Thereafter — Total $ 97,500 Amended and Restated Senior Credit Facility The Company has an Amended and Restated Credit Agreement entered into August 1, 2017 (Amended and Restated Credit Agreement) with a maturity date of August 1, 2022, including a term loan of $100.0 million (Amended Term Loan) and a $115.0 million revolving credit facility (Amended Revolving Credit Facility) (together with the Amended Term Loan, the Amended Credit Facilities). The Amended Revolving Credit Facility includes a subfacility for swingline loans up to an amount not to exceed $15.0 million , and a $35.0 million sublimit for the issuance of standby letters of credit. The Amended and Restated Credit Agreement includes an accordion feature permitting the Company, subject to certain conditions, to increase the aggregate amount of the commitments under the Amended Revolving Credit Facility or establish one or more additional term loans in an aggregate amount not to exceed $50.0 million with optional additional commitments from existing lenders or new commitments from additional lenders. Borrowings under the Amended Term Loan are payable in quarterly installments, which commenced January 2, 2018, in an aggregate per annum amount equal to 5% for the first four installments, 7.5% for the next eight installments, and 10% for the remaining installments; provided that, to the extent not previously paid, the aggregate unpaid principal balance would be due and payable on the maturity date. Subject to the Amended and Restated Credit Agreement, the Company pays interest on: (i) each Base Rate Loan at the Base Rate (as defined therein) plus the Applicable Margin in effect from time to time, (ii) each LIBOR Index Rate Loan at the One Month LIBOR Index Rate (as defined therein) plus the Applicable Margin in effect from time to time, and (iii) each Eurodollar Loan at the Adjusted LIBOR for the applicable Interest Period (as defined therein) in effect for such Loan plus the Applicable Margin in effect from time to time. The Applicable Margin, as of any date, is a percentage per annum determined by reference to the applicable Consolidated Net Leverage Ratio (as defined by the agreement) in effect on such date as set forth in the table below. Level Consolidated Net Leverage Ratio Eurodollar Loans, LIBOR Index Rate Loans and Letter of Credit Fee Base Rate Loans Commitment Fee I Less than 1.50:1.00 1.75% 0.75% 0.25% II Greater than or equal to 1.50:1.00 but less than 2.00:1.00 2.00% 1.00% 0.30% III Greater than or equal to 2.00:1.00 but less than 2.50:1.00 2.25% 1.25% 0.30% IV Greater than or equal to 2.50:1.00 but less than 3.00:1.00 2.50% 1.50% 0.35% V Greater than or equal to 3.00:1.00 2.75% 1.75% 0.40% As of June 30, 2018 , the Amended Term Loan and Amended Revolving Credit Facility bore interest at a rate equal to One Month LIBOR plus 2.25% . The interest rate is subject to an increase of 2.00% if an event of default exists under the Amended and Restated Credit Agreement. The Company is required to pay a commitment fee on the average daily unused portion of the Amended Revolving Credit Facility, based on the Applicable Margin which is 0.30% as of June 30, 2018 . During the three months ended March 31, 2018, the Company entered into an interest rate swap to reduce its exposure to fluctuations in the interest rates associated with its debt, which was effective April 2, 2018. See Note 9 - Derivative. The Company has the right at any time and from time to time to prepay any borrowing, in whole or in part, without premium or penalty, by giving irrevocable written notice (or telephonic notice promptly confirmed in writing) except that such notice shall be revocable if a prepayment is being made in anticipation of concluding a financing arrangement, and the Company is ultimately unable to secure such financing arrangement. The Company is required to prepay the Amended Credit Facilities under certain circumstances including from net cash proceeds from asset sales or dispositions in excess of certain thresholds, as well as from net cash proceeds from the issuance of certain debt by the Company. The Amended and Restated Credit Agreement contains customary representations, warranties, and affirmative covenants. The Amended and Restated Credit Agreement also contains customary negative covenants, subject to some exceptions, on: (i) indebtedness and preferred equity, (ii) liens, (iii) fundamental changes, (iv) investments, (v) restricted payments, and (vi) sale of assets and certain other restrictive agreements. The Amended and Restated Credit Agreement also contains customary events of default, such as payment defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency, the occurrence of a defined change in control and the failure to observe the negative covenants and other covenants related to the operation of the Company’s business. The Amended and Restated Credit Agreement also includes two financial covenants: (i) limiting a maximum Consolidated Total Leverage ratio (as defined therein) to be no greater than 3.50 :1.00 for the fiscal quarters ending through June 30, 2018, 3.25 :1.00 for the fiscal quarters ending September 30, 2018 through June 30, 2019, and 3.00 :1.00 for each fiscal quarter ending thereafter and as adjusted pursuant to a Qualified Permitted Acquisition (as defined therein); and (ii) requiring a minimum Consolidated Fixed Charge Coverage ratio (as defined therein) as of the end of each fiscal quarter of 1.50 :1.00. As of June 30, 2018 , the Company was in compliance with the financial covenants and other covenants contained in the Amended and Restated Credit Agreement. The obligations under the Amended and Restated Credit Agreement are guaranteed by all of the Company’s domestic wholly-owned subsidiaries and are secured by a first-priority security interest in the Collateral (as defined therein). As of June 30, 2018 , the Company had $21.6 million letters of credit outstanding and $93.4 million available under the Amended Revolving Credit Facility. The letters of credit relate to the Company’s workers’ compensation and professional liability insurance policies. Convertible Notes The Company and certain of its domestic subsidiaries had a Convertible Note Purchase Agreement (the Note Purchase Agreement), with certain note holders (collectively, the Noteholders) for an aggregate of $25.0 million of Convertible Notes. Subject to certain exceptions, the Company was not permitted to redeem the Convertible Notes until June 30, 2017. On March 17, 2017, the Company paid in full the Convertible Notes. In connection with the repayment, the Company issued to the Noteholders an aggregate of 3,175,584 shares of Common Stock, par value $0.0001 , and cash in the aggregate amount of $5.6 million (of which $5.0 million is included in repayment of debt and $0.6 million is presented as extinguishment fees, both within financing activities on the condensed consolidated statements of cash flows). Upon derecognition of the net carrying amounts of the Convertible Notes (the remaining $20.0 million after the $5.0 million cash payment) and derivative liability ( $26.0 million ), the Company recognized a non-cash charge of $5.0 million as loss on early extinguishment and a non-cash addition to additional paid-in capital of $46.0 million for the fair value of the shares, which is not presented on the condensed consolidated statements of cash flows. The loss on early extinguishment of debt in the three months ended March 31, 2017 includes the write-off of unamortized loan fees and remaining interest due through the Forced Conversion date (defined below) of June 30, 2017. The Convertible Notes were convertible at the option of the holders thereof at any time into shares of the Common Stock at a conversion price of $7.10 per share, or 3,521,126 shares of Common Stock. After three years from the issuance date, the Company had the right to force a conversion of the Convertible Notes if the volume-weighted average price (VWAP) per share of its Common Stock exceeded 125% of the then conversion price for 20 days of a 30 day trading period (Forced Conversion date). The Convertible Notes bore interest at a rate of 8.00% per annum, payable in quarterly cash installments. The Convertible Notes would have matured on June 30, 2020, unless earlier repurchased, redeemed or converted. |
DERIVATIVE
DERIVATIVE | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE | DERIVATIVE In March 2018, the Company entered into an interest rate swap, with an effective date of April 2, 2018 and termination date of August 1, 2022. No initial investments were made to enter into the agreement. The interest rate swap agreement requires the Company to pay a fixed rate to the respective counterparty of 2.627% per annum on an amortizing notional amount beginning at $48.8 million (corresponding with its term loan payment schedule), and to receive from the respective counterparty, interest payments based on the applicable notional amounts and 1 month USD LIBOR, with no exchanges of notional amounts. The interest rate swap effectively fixes the interest rate on 50% of the amortizing balance of the Company’s term debt, exclusive of the credit spread on the debt. As of June 30, 2018, the fair value of the interest rate swap agreement was not material. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2018 | |
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. This 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: The Company’s financial assets/liabilities required to be measured on a recurring basis were its: deferred compensation liability included in other long-term liabilities, interest rate swap agreements included in other long-term assets and other current liabilities, and contingent consideration liabilities. Deferred compensation —The Company utilizes Level 1 inputs to value its deferred compensation liabilities. The Company’s deferred compensation liabilities are measured using publicly available indices that define the liability amounts, as per the plan documents. Interest rate swap agreement —The Company utilized Level 2 inputs to value its interest rate swap agreement. See Note 8 - Debt and Note 9 - Derivative. Contingent consideration liabilities —Potential earnout payments related to the acquisition of Mediscan and USR are contingent upon meeting certain performance requirements through 2019. The long-term portion of these liabilities is included in contingent consideration, 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 consideration liabilities as significant unobservable inputs were used in the calculation of their fair value. The Mediscan contingent consideration liability has been 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 the acquisitions' gross profits and an estimated discount rate commensurate with the risks of the expected gross profit stream. See Note 4 - Acquisitions. The contingent consideration related to the Company's acquisition of US Resources Healthcare, LLC (USR) is recorded as a liability and measured at fair value using a discounted cash flow model utilizing significant unobservable inputs, including the probability of achieving each of the potential milestones and an estimated discount rate commensurate with the risks of the expected cash flows attributable to the milestones. 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 related accretion reflected as acquisition-related contingent consideration on the condensed consolidated statements of operations. Significant increases (decreases) in the volatility or in any of the probabilities of success, or decreases (increases) in the discount rate would result in a significantly higher (lower) fair value, respectively, and commensurate changes to these liabilities. The table which follows summarizes the estimated fair value of the Company’s financial assets and liabilities measured on a recurring basis: Fair Value Measurements June 30, 2018 December 31, 2017 Financial Assets: (amounts in thousands) (Level 2) Interest rate swaps $ 105 $ — Financial Liabilities: (Level 1) Deferred compensation $ 1,576 $ 1,467 (Level 3) Contingent consideration liabilities $ 5,700 $ 5,368 The Mediscan acquisition on October 30, 2015 and the USR acquisition on December 1, 2016 included contingent consideration liabilities. Valuation adjustments and accretion expense is included as acquisition-related contingent consideration on the condensed consolidated statements of operations. The opening balances reconciled to the closing balances for fair value measurements of these liabilities categorized within Level 3 of the fair value hierarchy are as follows: Contingent Consideration Liabilities (amounts in thousands) December 31, 2017 $ 5,368 Payments/Settlements (100 ) Accretion expense 212 March 31, 2018 5,480 Accretion expense 220 June 30, 2018 $ 5,700 Items Measured at Fair Value on a Non-Recurring Basis: The Company's non-financial assets, such as goodwill, trade names, other intangible assets, and property and equipment, are measured at fair value when there is an indicator of impairment and are recorded at fair value only when an impairment charge is recognized. During an evaluation of goodwill, trade names, and other intangible assets during the fourth quarter of 2017, the carrying value of goodwill and trade names in the Physician Staffing reporting unit exceeded their fair values. As a result, the Company recorded impairment charges that incorporates fair value measurements based on Level 3 inputs. For the three and six months ended June 30, 2018, no impairment charges were recognized. 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 carrying amounts and estimated fair value of the Company’s significant financial instruments that were not measured at fair value are as follows: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Financial Liabilities: (amounts in thousands) (Level 2) Term Loan, net $ 96,744 $ 97,000 $ 99,134 $ 100,500 Concentration of Credit Risk: The Company has invested its excess cash in highly-rated overnight funds and other highly-rated liquid accounts. The Company is exposed to credit risk associated with these investments, as the cash balances typically exceed the current Federal Deposit Insurance Corporation (FDIC) limit of $250,000 . 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 | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program Under an authorized share repurchase program, the Company repurchased and retired shares of its Common Stock as follows: 157,056 shares of its Common Stock for $1.8 million , at an average market price of $11.53 per share during the three months ended June 30, 2018; and 399,456 shares of its Common Stock for $4.7 million , at an average market price of $11.75 per share during the six months ended June 30, 2018. During the three and six months ended June 30, 2017, the Company did not repurchase any shares of its Common Stock. As of June 30, 2018 , the Company has 542,987 shares of Common Stock under the current authorized share repurchase program available to repurchase, subject to certain conditions in the Company's Amended and Restated Credit Agreement. The Company may repurchase up to an aggregate amount not to exceed $5.0 million in any fiscal year, or an unlimited amount if the Company meets certain conditions as described in its Amended and Restated Credit Agreement. At June 30, 2018 , the Company had 35,605,925 unrestricted shares of Common Stock outstanding. Shares Issued On March 17, 2017, the Company paid in full its Convertible Notes. In connection with the repayment, the Company issued 3,175,584 shares to the noteholders. See Note 8 - Debt. Share-Based Payments Restricted stock awards granted under the Company’s 2014 Omnibus Incentive Plan, Amended and Restated effective May 23, 2017 (2017 Plan), entitle the holder to receive, at the end of a vesting period, a specified number of shares of the Company’s common stock. Share-based compensation expense is measured by the market value of the Company’s stock on the date of grant. The shares vest ratably over a three year period ending on the anniversary date of the grant, and vesting is subject to the employee's continuing employment. There is no partial vesting and any unvested portion is forfeited. Pursuant to the 2017 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. The following table summarizes restricted stock awards and performance stock awards activity issued under the 2017 Plan for the six months ended June 30, 2018 : Restricted Stock Awards Performance Stock Awards Number of Weighted Number of Target Weighted Unvested restricted stock awards, January 1, 2018 515,601 $ 13.03 257,575 $ 13.49 Granted 362,620 $ 11.27 238,328 $ 11.11 Vested (212,061 ) $ 12.64 — $ — Forfeited (43,003 ) $ 13.24 (36,540 ) $ 13.51 Unvested restricted stock awards, June 30, 2018 623,157 $ 12.14 459,363 $ 12.25 During the three and six months ended June 30, 2018 , $0.9 million and $1.4 million , respectively, was included in selling, general and administrative expenses related to share-based payments, and a net of 48,620 and 150,454 shares, respectively, of Common Stock were issued upon the vesting of restricted stock. During the three and six months ended June 30, 2017 , $1.3 million and $2.0 million , respectively, was included in selling, general and administrative expenses related to share-based payments, and a net of 126,798 and 201,676 shares, respectively, of Common Stock were issued upon the vesting of restricted stock. |
SEGMENT DATA
SEGMENT DATA | 6 Months Ended |
Jun. 30, 2018 | |
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, recruiting, and value-added workforce solutions including: temporary and permanent placement of travel and local branch-based nurse and allied professionals, MSP services, education healthcare services, and outsourcing services. 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 Unites States. Substantially all of the results of the Advantage acquisition have been aggregated with the Company's Nurse and Allied Staffing business segment. See Note 4 - Acquisitions. ● Physician Staffing – Physician Staffing provides physicians in many specialties, as well as certified registered nurse anesthetists, nurse practitioners, and physician assistants as independent contractors on temporary assignments throughout the United States 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 – Other Human Capital Management Services includes retained and contingent search services for physicians, healthcare executives, and other healthcare professionals within the United States. The Company’s management evaluates performance of each segment primarily based on revenue and contribution income. The Company defines contribution income as income from operations before depreciation and amortization, acquisition-related contingent consideration, acquisition and integration costs, restructuring costs, 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 the Segment Reporting Topic of the FASB ASC. 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 from operations for the periods indicated are as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (amounts in thousands) Revenue from services: Nurse and Allied Staffing $ 179,339 $ 180,927 $ 364,444 $ 364,035 Physician Staffing 21,334 24,720 42,894 46,184 Other Human Capital Management Services 3,899 3,666 7,522 6,667 $ 204,572 $ 209,313 $ 414,860 $ 416,886 Contribution income: Nurse and Allied Staffing $ 16,909 $ 18,141 $ 33,669 $ 33,763 Physician Staffing 1,383 2,047 2,883 2,867 Other Human Capital Management Services 312 241 624 (199 ) 18,604 20,429 37,176 36,431 Unallocated corporate overhead 10,810 10,827 21,462 21,113 Depreciation and amortization 2,963 2,285 5,872 4,476 Acquisition-related contingent consideration 220 281 433 551 Acquisition and integration costs 76 587 191 587 Restructuring costs 193 — 628 — Income from operations $ 4,342 $ 6,449 $ 8,590 $ 9,704 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments: Operating Leases 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 June 30, 2018, associated with these agreements with terms of one year or more are as follows: Years Ending December 31: (amounts in thousands) 2018 $ 3,823 2019 6,897 2020 5,725 2021 4,942 2022 4,451 Thereafter 9,419 $ 35,257 Contingencies: Legal Proceedings 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. Non-income tax 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 June 30, 2018 and December 31, 2017 , on its condensed consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three and six month periods ended June 30, 2018 , the Company estimated its effective tax rate on an annual basis, as opposed to calculating it for the three and six month periods ended June 30, 2017 based on year-to-date results, in accordance with the Income Taxes Topic of the FASB ASC. The Company’s effective tax rate for the three and six months ended June 30, 2018 was 39.1% and 38.4% , respectively, including the impact of discrete items. Excluding discrete items, the Company’s effective tax rate for the three and six months ended June 30, 2018 was 40.3% and 37.8% , respectively. The effective tax rate for the second quarter of 2018 was primarily impacted by the non-deductibility of certain per diem expenses, the officers' compensation limitation, and international and state taxes. During the fourth quarter of 2017 , the Company concluded that it was more likely than not that a benefit from a substantial portion of its United States federal and state deferred tax assets would be realized. As a result, it released the majority of its valuation allowance. The Company will continue to assess the realizability of its deferred tax assets and, as of June 30, 2018 , has maintained a $1.1 million valuation allowance against certain state net operating losses. The Securities and Exchange Commission (SEC) staff issued Staff Accounting Bulletin (SAB) No. 118 (SAB 118), which provides guidance on accounting for the tax effects of the 2017 Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting required under the Income Taxes Topic of the FASB ASC. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the 2017 Tax Act for which the accounting under the Income Taxes Topic of the FASB ASC is complete. To the extent that a company's accounting for certain income tax effects is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. The ultimate impact of the 2017 Tax Act in our financial statements is provisional with regard to certain foreign tax provisions and may differ from our estimates due to changes in the interpretations and assumptions made by us as well as additional regulatory guidance that may be issued. As of June 30, 2018 , the Company had approximately $0.6 million of unrecognized tax benefits included in other current liabilities and other long-term liabilities ( $4.6 million , net of deferred taxes, which would affect the effective tax rate if recognized). During the six months ended June 30, 2018 , the Company had gross increases of $0.6 million to its current year unrecognized tax benefits related to federal and state tax provisions. The tax years of 2008 and 2010 through 2017 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 | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company provided services to customers 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 less than $0.1 million for both the three and six months ended June 30, 2018 , and $0.9 million and $2.6 million for the three and six months ended June 30, 2017 , respectively. Accounts receivable due from these hospitals at June 30, 2018 and December 31, 2017 were less than $0.1 million and approximately $0.4 million , respectively. In connection with the acquisition of MSN, the Company acquired a 68% ownership interest in Cross Country Talent Acquisition Group, LLC (formerly 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 $4.7 million and $9.1 million for the three and six months ended June 30, 2018, respectively, and $4.5 million and $8.7 million for the three and six months ended June 30, 2017 , respectively. At June 30, 2018 and December 31, 2017 , the Company had a receivable balance of $1.8 million and $0.8 million , respectively, and a payable balance of $0.3 million at both periods. 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 and $0.2 million , respectively, in rent expense for these premises for the three and six months ended June 30, 2018 and June 30, 2017. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features, and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception . The amendments in Part I of this update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments in Part II of this update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and should be applied retrospectively to outstanding financial instruments with a down round feature by means of either a cumulative-effect adjustment or for each prior reporting period presented. Early adoption is permitted for all entities, including adoption in an interim period. The Company expects to adopt this standard in its first quarter of 2019, and does not expect this guidance to have a material impact 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. Full retrospective application is prohibited. The Company is in the process of implementing a plan to adopt this standard. As a result of its review, the Company intends to elect the practical expedient package to retain its lease classification for any leases that existed prior to the adoption of the standard. In addition, the Company expects to elect not to apply the recognition requirements to short-term leases. While the Company has not yet determined the impact on its consolidated balance sheets or statements of operations, at June 30, 2018, it was contractually obligated to make future payments of $35.3 million under its operating lease obligations, substantially related to real estate. Under ASU No. 2016-02 these operating leases would potentially be required to be presented on its consolidated balance sheets. The Company has implemented a lease management software application tool and is continuing to assess the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements as well as changes to its processes. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | 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 Cross Country Talent Acquisition Group, LLC (formerly 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. |
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 United States 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, 2018 . 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, 2017 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The December 31, 2017 condensed consolidated balance sheet included herein was derived from the December 31, 2017 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 year presentation on the condensed consolidated statements of cash flows. |
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. Significant estimates and assumptions are used for, but not limited to: (1) the valuation of accounts receivable; (2) goodwill, trade names, and other intangible assets; (3) other long-lived assets; (4) share-based compensation; (5) accruals for health, workers’ compensation, and professional liability claims; (6) valuation of deferred tax assets; (7) purchase price allocation; (8) derivative liability; (9) legal contingencies; (10) contingent considerations; (11) income taxes; and (12) 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. |
Allowances | Allowances We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, which results in a provision for bad debt expense. We determine the adequacy of this allowance by continually evaluating individual customer receivables, considering the customer’s financial condition, credit history and current economic conditions. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. We write-off specific accounts based on an ongoing review of collectability as well as our past experience with the customer. In addition, we maintain a sales allowance for customer disputes which may arise in the ordinary course of business, which is recorded as contra-revenue. Historically, losses on uncollectible accounts and sales allowances have not exceeded our allowances. |
Restructuring Costs | Restructuring Costs The Company considers restructuring activities to be programs whereby it fundamentally changes its operations, such as closing and consolidating facilities, reducing headcount and realigning operations in response to changing market conditions. As a result, restructuring costs on the consolidated statements of operations include on-going benefit costs for its employees and exit costs. |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to interest rate risk due to the outstanding senior secured term loan entered into on August 1, 2017 with a variable interest rate. As a result, the Company has entered into an interest rate swap agreement to effectively convert a portion of its variable interest payments to a fixed rate. The principal objective of the interest rate swap is to eliminate or reduce the variability of the cash flows in those interest payments associated with the Company’s long-term debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has determined that the interest rate swap qualifies as a cash flow hedge in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging . As the critical terms of the hedging instrument and the hedged forecasted transaction are the same, the Company has concluded that changes in the cash flows attributable to the risk being hedged are expected to completely offset at inception and on an ongoing basis. Changes in the fair value of an interest rate swap agreement designated as a cash flow hedge are recorded as a component of accumulated other comprehensive income (loss), net of deferred taxes, within stockholders’ equity and are amortized to interest expense over the term of the related debt as the interest payments are made. Future interest rate swap payments will be included in net cash provided by operating activities on the Company’s consolidated statement of cash flows. In conjunction with entering into the interest rate swap agreement, the Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815) to simplify the application of hedge accounting. See Note 9 - Derivative. |
Recently Adopted Accounting Pronouncement | Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, amended by ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The amendments allow for a reclassification between accumulated other comprehensive income and retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (2017 Tax Act), and require certain disclosures about stranded tax effects. The guidance that requires that the effect of a change in tax laws or rates be included in income is not affected. The amendments would have been effective for the Company in the first quarter of 2019. Adoption of the standard was to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the United States federal corporate tax rate in the 2017 Tax Act is recognized. Early adoption was permitted. The Company adopted this standard in 2018, with no material impact on its consolidated financial statements. In the first quarter of 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 introduces a new five-step revenue recognition model in which an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. See Note 3 - Revenue Recognition for additional accounting policy and related disclosures. The Company elected to adopt the standard using a modified retrospective method, which only impacts contracts not completed as of December 31, 2017. RECENT ACCOUNTING PRONOUNCEMENTS In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features, and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception . The amendments in Part I of this update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments in Part II of this update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and should be applied retrospectively to outstanding financial instruments with a down round feature by means of either a cumulative-effect adjustment or for each prior reporting period presented. Early adoption is permitted for all entities, including adoption in an interim period. The Company expects to adopt this standard in its first quarter of 2019, and does not expect this guidance to have a material impact 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. Full retrospective application is prohibited. The Company is in the process of implementing a plan to adopt this standard. As a result of its review, the Company intends to elect the practical expedient package to retain its lease classification for any leases that existed prior to the adoption of the standard. In addition, the Company expects to elect not to apply the recognition requirements to short-term leases. While the Company has not yet determined the impact on its consolidated balance sheets or statements of operations, at June 30, 2018, it was contractually obligated to make future payments of $35.3 million under its operating lease obligations, substantially related to real estate. Under ASU No. 2016-02 these operating leases would potentially be required to be presented on its consolidated balance sheets. The Company has implemented a lease management software application tool and is continuing to assess the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements as well as changes to its processes. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Reconciliations of the beginning and ending total restructuring liability balances are presented below: On-Going Benefit Costs Exit Costs (amounts in thousands) Balance at January 1, 2018 $ 87 $ 441 Charged to restructuring costs 435 — Payments (10 ) (54 ) Balance at March 31, 2018 512 387 Charged to restructuring costs 175 18 Payments (254 ) (59 ) Balance at June 30, 2018 $ 433 $ 346 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenue. Three Months ended June 30, 2018 Nurse Physician Other Human Total (amounts in thousands) Temporary Staffing Services $ 175,690 $ 19,943 $ — $ 195,633 Other Services 3,649 1,391 3,899 8,939 Total $ 179,339 $ 21,334 $ 3,899 $ 204,572 Six Months ended June 30, 2018 Nurse Physician Other Human Total (amounts in thousands) Temporary Staffing Services $ 356,829 $ 40,173 $ — $ 397,002 Other Services 7,615 2,721 7,522 17,858 Total $ 364,444 $ 42,894 $ 7,522 $ 414,860 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Pro forma information | The following unaudited pro forma financial information approximates the consolidated results of operations of the Company as if the Advantage acquisition had occurred as of January 1, 2017, after giving effect to certain adjustments, including additional interest expense on the amount the Company borrowed on the date of the transaction, the amortization of acquired intangible assets, and the elimination of certain expenses that will not be recurring in post-acquisition periods, net of an estimated income tax impact. These adjustments include removing transaction-related expenses of approximately $0.6 million for the six months ended June 30, 2017. 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. Six Months Ended June 30, 2017 (unaudited, amounts in thousands except per share data) Revenue from services $ 467,987 Net income attributable to common shareholders $ 4,418 Net income per common share attributable to common shareholders - basic $ 0.13 Net income per common share attributable to common shareholders - diluted $ 0.10 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 (amounts in thousands, except per share data) Numerator: Net income attributable to common shareholders - Basic $ 1,539 $ 4,850 $ 3,181 $ 2,840 Interest on Convertible Notes — — — 694 Gain on derivative liability — — — (1,581 ) Net income attributable to common shareholders - Diluted $ 1,539 $ 4,850 $ 3,181 $ 1,953 Denominator: Weighted average common shares - Basic 35,652 35,651 35,727 34,269 Effective of diluted shares: Share-based awards 180 370 232 522 Convertible Notes — — — 1,459 Weighted average common shares - Diluted 35,832 36,021 35,959 36,250 Net income per share attributable to common shareholders - Basic $ 0.04 $ 0.14 $ 0.09 $ 0.08 Net income per share attributable to common shareholders - Diluted $ 0.04 $ 0.13 $ 0.09 $ 0.05 |
GOODWILL, TRADE NAMES, AND OT28
GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | The Company had the following acquired intangible assets: June 30, 2018 December 31, 2017 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 $ 42,909 $ 20,221 $ 22,688 $ 42,909 $ 18,702 $ 24,207 Customer relationships 55,524 27,556 27,968 55,524 25,912 29,612 Non-compete agreements 3,919 3,651 268 3,919 3,600 319 Trade names 7,716 1,248 6,468 7,716 878 6,838 Other intangible assets, net $ 110,068 $ 52,676 $ 57,392 $ 110,068 $ 49,092 $ 60,976 Intangible assets not subject to amortization: Trade names 26,702 26,702 $ 84,094 $ 87,678 |
Estimated Annual Amortization Expense | As of June 30, 2018 , estimated annual amortization expense is as follows: Years Ending December 31: (amounts in thousands) 2018 $ 3,582 2019 7,132 2020 7,027 2021 6,819 2022 6,743 Thereafter 26,089 $ 57,392 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The Applicable Margin, as of any date, is a percentage per annum determined by reference to the applicable Consolidated Net Leverage Ratio (as defined by the agreement) in effect on such date as set forth in the table below. Level Consolidated Net Leverage Ratio Eurodollar Loans, LIBOR Index Rate Loans and Letter of Credit Fee Base Rate Loans Commitment Fee I Less than 1.50:1.00 1.75% 0.75% 0.25% II Greater than or equal to 1.50:1.00 but less than 2.00:1.00 2.00% 1.00% 0.30% III Greater than or equal to 2.00:1.00 but less than 2.50:1.00 2.25% 1.25% 0.30% IV Greater than or equal to 2.50:1.00 but less than 3.00:1.00 2.50% 1.50% 0.35% V Greater than or equal to 3.00:1.00 2.75% 1.75% 0.40% The Company's long-term debt consists of the following: June 30, 2018 December 31, 2017 Principal Debt Issuance Costs Principal Debt Issuance Costs (amounts in thousands) Term Loan, interest 4.23% and 3.61% at June 30, 2018 and December 31, 2017, respectively $ 97,500 $ (756 ) $ 100,000 $ (866 ) Less current portion (6,250 ) — (6,875 ) — Long-term debt $ 91,250 $ (756 ) $ 93,125 $ (866 ) |
Aggregate scheduled maturities of debt | As of June 30, 2018 , the aggregate scheduled maturities of the term loan are as follows: Term Loan (amounts in thousands) Through Years Ending December 31: 2018 $ 4,375 2019 7,500 2020 8,125 2021 10,000 2022 67,500 Thereafter — Total $ 97,500 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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: Fair Value Measurements June 30, 2018 December 31, 2017 Financial Assets: (amounts in thousands) (Level 2) Interest rate swaps $ 105 $ — Financial Liabilities: (Level 1) Deferred compensation $ 1,576 $ 1,467 (Level 3) Contingent consideration liabilities $ 5,700 $ 5,368 |
Schedule of reconciliation of opening and closing balances for fair value measurements categorized within Level 3 | The opening balances reconciled to the closing balances for fair value measurements of these liabilities categorized within Level 3 of the fair value hierarchy are as follows: Contingent Consideration Liabilities (amounts in thousands) December 31, 2017 $ 5,368 Payments/Settlements (100 ) Accretion expense 212 March 31, 2018 5,480 Accretion expense 220 June 30, 2018 $ 5,700 |
Carrying Amounts and Estimated Fair Values of Significant Financial Instrument that were not Measured at Fair Value | The carrying amounts and estimated fair value of the Company’s significant financial instruments that were not measured at fair value are as follows: June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair Financial Liabilities: (amounts in thousands) (Level 2) Term Loan, net $ 96,744 $ 97,000 $ 99,134 $ 100,500 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Summary of Restricted Stock Activity | The following table summarizes restricted stock awards and performance stock awards activity issued under the 2017 Plan for the six months ended June 30, 2018 : Restricted Stock Awards Performance Stock Awards Number of Weighted Number of Target Weighted Unvested restricted stock awards, January 1, 2018 515,601 $ 13.03 257,575 $ 13.49 Granted 362,620 $ 11.27 238,328 $ 11.11 Vested (212,061 ) $ 12.64 — $ — Forfeited (43,003 ) $ 13.24 (36,540 ) $ 13.51 Unvested restricted stock awards, June 30, 2018 623,157 $ 12.14 459,363 $ 12.25 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Information on Operating Segments and Reconciliation to Loss From Operations | Information on operating segments and a reconciliation to income from operations for the periods indicated are as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 (amounts in thousands) Revenue from services: Nurse and Allied Staffing $ 179,339 $ 180,927 $ 364,444 $ 364,035 Physician Staffing 21,334 24,720 42,894 46,184 Other Human Capital Management Services 3,899 3,666 7,522 6,667 $ 204,572 $ 209,313 $ 414,860 $ 416,886 Contribution income: Nurse and Allied Staffing $ 16,909 $ 18,141 $ 33,669 $ 33,763 Physician Staffing 1,383 2,047 2,883 2,867 Other Human Capital Management Services 312 241 624 (199 ) 18,604 20,429 37,176 36,431 Unallocated corporate overhead 10,810 10,827 21,462 21,113 Depreciation and amortization 2,963 2,285 5,872 4,476 Acquisition-related contingent consideration 220 281 433 551 Acquisition and integration costs 76 587 191 587 Restructuring costs 193 — 628 — Income from operations $ 4,342 $ 6,449 $ 8,590 $ 9,704 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease, future minimum payments due | uture minimum lease payments, as of June 30, 2018, associated with these agreements with terms of one year or more are as follows: Years Ending December 31: (amounts in thousands) 2018 $ 3,823 2019 6,897 2020 5,725 2021 4,942 2022 4,451 Thereafter 9,419 $ 35,257 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | |||||
Charged to restructuring costs | $ 193 | $ 0 | $ 628 | $ 0 | |
Cost Optimization Project [Member] | On-Going Benefit Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance at January 1, 2018 | 512 | $ 87 | 87 | ||
Charged to restructuring costs | 175 | 435 | |||
Payments | (254) | (10) | |||
Balance at March 31, 2018 | 433 | 512 | 433 | ||
Cost Optimization Project [Member] | Exit Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance at January 1, 2018 | 387 | 441 | 441 | ||
Charged to restructuring costs | 18 | 0 | |||
Payments | (59) | (54) | |||
Balance at March 31, 2018 | $ 346 | $ 387 | $ 346 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||
Unbilled contracts receivable | $ 36.2 | $ 41.8 | |
Services [Member] | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 5.00% | 5.00% | |
Minimum [Member] | Temporary Staffing Services [Member] | |||
Concentration Risk [Line Items] | |||
Payment terms | 15 days | ||
Maximum [Member] | Temporary Staffing Services [Member] | |||
Concentration Risk [Line Items] | |||
Payment terms | 60 days |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 204,572 | $ 414,860 |
Temporary Staffing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 195,633 | 397,002 |
Other Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,939 | 17,858 |
Nurse And Allied Staffing Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 179,339 | 364,444 |
Nurse And Allied Staffing Segment [Member] | Temporary Staffing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 175,690 | 356,829 |
Nurse And Allied Staffing Segment [Member] | Other Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,649 | 7,615 |
Physician Staffing Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21,334 | 42,894 |
Physician Staffing Segment [Member] | Temporary Staffing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 19,943 | 40,173 |
Physician Staffing Segment [Member] | Other Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,391 | 2,721 |
Other Human Capital Management Services Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,899 | 7,522 |
Other Human Capital Management Services Segment [Member] | Temporary Staffing Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Other Human Capital Management Services Segment [Member] | Other Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,899 | $ 7,522 |
ACQUISITIONS - Advantage RN (De
ACQUISITIONS - Advantage RN (Details) - USD ($) $ in Millions | Jul. 28, 2017 | Jul. 01, 2017 | Sep. 30, 2017 | Jun. 30, 2018 |
Advantage RN, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 86.6 | |||
Net working capital adjustment | 0.6 | |||
Reimbursement from working capital adjustment settled | $ 0.8 | |||
Contingent liability | $ 0.2 | |||
Release of remaining contingent liability | $ 0.4 | |||
Escrow payment related to tax liabilities | 14.5 | |||
Escrow payment related to post-close liabilities | 7.5 | |||
Release of escrow to seller | $ 7.3 | |||
Escrow deposit related to tax liabilities | $ 7.2 | |||
Consideration transferred, available cash | 19.9 | |||
Deferred Consideration Transferred [Member] | Advantage RN, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent liability | $ 0.6 | |||
Period of deferred consideration | 20 months | |||
Credit Agreement [Member] | ||||
Business Acquisition [Line Items] | ||||
Borrowings on debt | $ 66.9 | |||
Term Loan [Member] | Incremental Term Loan [Member] | ||||
Business Acquisition [Line Items] | ||||
Borrowings on debt | 40 | |||
Purchase Price [Member] | Advantage RN, LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 88 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Consolidated net income | $ 1,824 | $ 5,220 | $ 3,744 | $ 3,502 |
Assumed Additional Contingent Purchase Price Liabilities [Member] | Mediscan [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration, range of outcomes, high | 300 | 300 | ||
Contingent consideration liabilities | $ 5,500 | 5,500 | ||
Contingent liability paid | $ 100 | |||
Acquisition-related Costs [Member] | ||||
Business Acquisition [Line Items] | ||||
Consolidated net income | $ 600 |
ACQUISITIONS - Pro Forma (Detai
ACQUISITIONS - Pro Forma (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / shares | |
Business Combinations [Abstract] | |
Revenue from services | $ | $ 467,987 |
Net income attributable to common shareholders | $ | $ 4,418 |
Net income per share attributable to common shareholders - Basic (in dollars per share) | $ / shares | $ 0.13 |
Net income per share attributable to common shareholders - Diluted (in dollars per share) | $ / shares | $ 0.10 |
COMPREHENSIVE INCOME (Details)
COMPREHENSIVE INCOME (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||||
Loss on 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, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income attributable to common shareholders - Basic | $ 1,539 | $ 4,850 | $ 3,181 | $ 2,840 |
Interest on Convertible Notes | 0 | 0 | 0 | 694 |
Gain on derivative liability | 0 | 0 | 0 | (1,581) |
Net income attributable to common shareholders - Diluted | $ 1,539 | $ 4,850 | $ 3,181 | $ 1,953 |
Denominator: | ||||
Weighted average common shares - Basic (shares) | 35,652,000 | 35,651,000 | 35,727,000 | 34,269,000 |
Effective of diluted shares: | ||||
Share-based awards (shares) | 180,000 | 370,000 | 232,000 | 522,000 |
Convertible Notes (shares) | 0 | 0 | 0 | 1,459,030 |
Weighted average common shares - Diluted (shares) | 35,832,000 | 36,021,000 | 35,959,000 | 36,250,000 |
Net income per share attributable to common shareholders - Basic (in dollars per share) | $ 0.04 | $ 0.14 | $ 0.09 | $ 0.08 |
Net income per share attributable to common shareholders - Diluted (in dollars per share) | $ 0.04 | $ 0.13 | $ 0.09 | $ 0.05 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Dilutive convertible notes (shares) | 0 | 0 | 0 | 1,459,030 |
GOODWILL, TRADE NAMES, AND OT43
GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 110,068 | $ 110,068 |
Accumulated Amortization | 52,676 | 49,092 |
Intangible assets subject to amortization, net carrying amount | 57,392 | 60,976 |
Trade names | 26,702 | 26,702 |
Total intangible assets, net | 84,094 | 87,678 |
Databases [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 42,909 | 42,909 |
Accumulated Amortization | 20,221 | 18,702 |
Intangible assets subject to amortization, net carrying amount | 22,688 | 24,207 |
Customer relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 55,524 | 55,524 |
Accumulated Amortization | 27,556 | 25,912 |
Intangible assets subject to amortization, net carrying amount | 27,968 | 29,612 |
Non-compete agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,919 | 3,919 |
Accumulated Amortization | 3,651 | 3,600 |
Intangible assets subject to amortization, net carrying amount | 268 | 319 |
Trade names [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,716 | 7,716 |
Accumulated Amortization | 1,248 | 878 |
Intangible assets subject to amortization, net carrying amount | $ 6,468 | $ 6,838 |
GOODWILL, TRADE NAMES, AND OT44
GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS - Annual Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 3,582 | |
2,019 | 7,132 | |
2,020 | 7,027 | |
2,021 | 6,819 | |
2,022 | 6,743 | |
Thereafter | 26,089 | |
Intangible assets subject to amortization, net carrying amount | $ 57,392 | $ 60,976 |
GOODWILL, TRADE NAMES, AND OT45
GOODWILL, TRADE NAMES, AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 117,589 | $ 117,589 |
Nurse And Allied Staffing [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 88,200 | 88,200 |
Physician Staffing [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 20,000 | 20,000 |
Other Human Capital Management Services [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 9,400 | $ 9,400 |
DEBT - Long- Term Debt (Details
DEBT - Long- Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Less current portion | $ (6,250) | $ (6,875) |
Long-term debt | 91,250 | 93,125 |
Debt Issuance Costs | (756) | (866) |
Senior Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 97,500 | |
Senior Debt [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 97,500 | 100,000 |
Debt Issuance Costs | $ (756) | $ (866) |
Interest Rate | 4.23% | 3.61% |
DEBT - Debt Maturities (Details
DEBT - Debt Maturities (Details) - Term Loan [Member] $ in Thousands | Jun. 30, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,018 | $ 4,375 |
2,019 | 7,500 |
2,020 | 8,125 |
2,021 | 10,000 |
2,022 | 67,500 |
Thereafter | 0 |
Total | $ 97,500 |
DEBT - Amendment And Restated S
DEBT - Amendment And Restated Senior Credit Facility (Details) - Amended And Restated Credit Agreement [Member] | Aug. 01, 2017USD ($) | Jun. 30, 2018USD ($)financial_covenant |
Debt Instrument [Line Items] | ||
Sub facility for swingline loans | $ 15,000,000 | |
Line of credit, subfacility for standby letters of credit | 35,000,000 | |
Interest rate increase (decrease) (percent) | 2.00% | |
Quarterly commitment fee on the average daily unused portion (percent) | 0.30% | |
Number of financial covenants | financial_covenant | 2 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Consolidated Fixed Charge Coverage Ratio | 1.50 | |
Fiscal Quarters Ending September 30, 2017 through June 30, 2018 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Consolidated Total Leverage Ratio | 3.50 | |
Fiscal Quarters Ending September 30, 2018 through June 30, 2019 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Consolidated Total Leverage Ratio | 3.25 | |
Each Fiscal Quarter Ending Thereafter [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Consolidated Total Leverage Ratio | 3 | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | 100,000,000 | |
Additional capacity | $ 50,000,000 | |
Term Loan [Member] | First Four Installments [Member] | ||
Debt Instrument [Line Items] | ||
Periodic payment, percentage of principal | 5.00% | |
Term Loan [Member] | Next Eight Installments [Member] | ||
Debt Instrument [Line Items] | ||
Periodic payment, percentage of principal | 7.50% | |
Term Loan [Member] | Remaining Installments [Member] | ||
Debt Instrument [Line Items] | ||
Periodic payment, percentage of principal | 10.00% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 21,600,000 | |
Line of credit outstanding | $ 93,400,000 | |
Revolving Credit Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Interest margin | 2.25% | |
Revolving Credit Facility [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 115,000,000 |
DEBT - Consolidated Net Leverag
DEBT - Consolidated Net Leverage Ratio (Details) - Credit Agreement [Member] | 6 Months Ended |
Jun. 30, 2018 | |
Covenant Term 1 [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee percentage | 0.25% |
Covenant Term 1 [Member] | Eurodollar Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 1.75% |
Covenant Term 1 [Member] | LIBOR Index Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 1.75% |
Covenant Term 1 [Member] | Letter of Credit Fee [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 1.75% |
Covenant Term 1 [Member] | Base Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 0.75% |
Covenant Term 1 [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 1.50 |
Covenant Term 2 [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee percentage | 0.30% |
Covenant Term 2 [Member] | Eurodollar Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.00% |
Covenant Term 2 [Member] | LIBOR Index Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.00% |
Covenant Term 2 [Member] | Letter of Credit Fee [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.00% |
Covenant Term 2 [Member] | Base Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 1.00% |
Covenant Term 2 [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 1.50 |
Covenant Term 2 [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 2 |
Covenant Term 3 [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee percentage | 0.30% |
Covenant Term 3 [Member] | Eurodollar Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.25% |
Covenant Term 3 [Member] | LIBOR Index Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.25% |
Covenant Term 3 [Member] | Letter of Credit Fee [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.25% |
Covenant Term 3 [Member] | Base Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 1.25% |
Covenant Term 3 [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 2 |
Covenant Term 3 [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 2.50 |
Covenant Term 4 [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee percentage | 0.35% |
Covenant Term 4 [Member] | Eurodollar Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.50% |
Covenant Term 4 [Member] | LIBOR Index Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.50% |
Covenant Term 4 [Member] | Letter of Credit Fee [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.50% |
Covenant Term 4 [Member] | Base Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 1.50% |
Covenant Term 4 [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 2.50 |
Covenant Term 4 [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 3 |
Covenant Term 5 [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee percentage | 0.40% |
Covenant Term 5 [Member] | Eurodollar Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.75% |
Covenant Term 5 [Member] | LIBOR Index Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.75% |
Covenant Term 5 [Member] | Letter of Credit Fee [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 2.75% |
Covenant Term 5 [Member] | Base Rate Loans [Member] | |
Line of Credit Facility [Line Items] | |
Interest margin | 1.75% |
Covenant Term 5 [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Consolidated Net Leverage Ratio | 3 |
DEBT - Private Placement of Con
DEBT - Private Placement of Convertible Notes Narrative (Details) | Mar. 17, 2017USD ($)dayinstrumentd$ / sharesshares | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2014USD ($) |
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 2,500,000 | $ 1,500,000 | ||||
Extinguishment fees | 0 | 578,000 | ||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ 0 | $ 4,969,000 | ||
Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 25,000,000 | |||||
Common stock, par value (in usd per share) | $ / shares | $ 0.0001 | |||||
Payment of debt and extinguishment fees | $ 5,600,000 | |||||
Repayments of debt | 5,000,000 | |||||
Extinguishment fees | 600,000 | |||||
Loss on early extinguishment of debt | 5,000,000 | |||||
Non-cash write off related to settlement of convertible notes | $ 46,000,000 | |||||
Debt conversion price (in usd per share) | $ / shares | $ 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 | day | 20 | |||||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |||||
Interest rate (percent) | 8.00% | |||||
Common Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Shares issued (in shares) | shares | 3,175,584 | |||||
8% Convertible Notes [Member] | Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Original debt amount in debt conversion | $ 20,000,000 | |||||
Convertible Note Derivative Liability [Member] | Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Original debt amount in debt conversion | $ 26,000,000 |
DERIVATIVE - Additional Informa
DERIVATIVE - Additional Information (Details) $ in Millions | Mar. 31, 2018USD ($) |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Interest rate swap fixed rate percentage | 2.627% |
Notional amount | $ 48.8 |
Term Loan [Member] | Senior Debt [Member] | |
Derivative [Line Items] | |
Percentage of debt balance with fixed interest rate | 50.00% |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair values Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 1 [Member] | Deferred compensation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation | $ 1,576 | $ 1,467 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities | 5,700 | 5,368 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | $ 105 | $ 0 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of reconciliation of opening and closing balances for fair value measurements categorized within Level 3 (Details) - Contingent Consideration Liabilities [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Convertible Note Derivative Liability | ||
Beginning balance | $ 5,480 | $ 5,368 |
Payments/Settlements | (100) | |
Accretion expense | 220 | 212 |
Ending balance | $ 5,700 | $ 5,480 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Fair Value Measurement [Line Items] | ||
Impairment charges | $ 0 | $ 0 |
Minimum [Member] | ||
Fair Value Measurement [Line Items] | ||
Threshold period, past due for payment of services provided | 15 days | |
Maximum [Member] | ||
Fair Value Measurement [Line Items] | ||
Threshold period, past due for payment of services provided | 60 days |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Instrument that were not Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Carrying Amount | $ 91,250 | $ 93,125 |
Term Loan, Net [Member] | Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Carrying Amount | 96,744 | 99,134 |
Term Loan, Net [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Financial Liabilities, Fair Value | $ 97,000 | $ 100,500 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | Mar. 17, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares left remaining to repurchase under the plan (up to) | 542,987 | 542,987 | |||
Stock repurchase program, authorized amount (up to) | $ 5,000,000 | $ 5,000,000 | |||
Number of shares of common stock outstanding | 35,605,925 | 35,605,925 | |||
Selling, General and Administrative Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 900,000 | $ 1,300,000 | $ 1,400,000 | $ 2,000,000 | |
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested in period, net (in shares) | 48,620 | 126,798 | 150,454 | 201,676 | |
Restricted Stock [Member] | 2014 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares repurchased and retired (in shares) | 157,056 | 0 | 399,456 | 0 | |
Value of shares repurchased and retired | $ 1,800,000 | $ 4,700,000 | |||
Shares repurchased (in dollars per share) | $ 11.53 | $ 11.75 | |||
Shares issued (in shares) | 3,175,584 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Restricted Stock and Performance Shares (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Restricted Stock [Member] | |
Number of Shares | |
Unvested restricted stock awards, Beginning balance (in shares) | shares | 515,601 |
Granted (in shares) | shares | 362,620 |
Vested (in shares) | shares | (212,061) |
Forfeited (in shares) | shares | (43,003) |
Unvested restricted stock awards, Ending balance (in shares) | shares | 623,157 |
Weighted Average Grant Date Fair Value (in usd per share) | |
Unvested restricted stock awards, Beginning balance (in dollars per share) | $ / shares | $ 13.03 |
Granted (in dollars per share) | $ / shares | 11.27 |
Vested (in dollars per share) | $ / shares | 12.64 |
Forfeited (in dollars per share) | $ / shares | 13.24 |
Unvested restricted stock awards, Ending balance (in dollars per share) | $ / shares | $ 12.14 |
Performance Stock [Member] | |
Number of Shares | |
Unvested restricted stock awards, Beginning balance (in shares) | shares | 257,575 |
Granted (in shares) | shares | 238,328 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (36,540) |
Unvested restricted stock awards, Ending balance (in shares) | shares | 459,363 |
Weighted Average Grant Date Fair Value (in usd per share) | |
Unvested restricted stock awards, Beginning balance (in dollars per share) | $ / shares | $ 13.49 |
Granted (in dollars per share) | $ / shares | 11.11 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 13.51 |
Unvested restricted stock awards, Ending balance (in dollars per share) | $ / shares | $ 12.25 |
SEGMENT DATA - Narrative (Detai
SEGMENT DATA - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018segment | |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue from services | $ 204,572 | $ 209,313 | $ 414,860 | $ 416,886 |
Contribution income | 18,604 | 20,429 | 37,176 | 36,431 |
Unallocated corporate overhead | 10,810 | 10,827 | 21,462 | 21,113 |
Depreciation and amortization | 2,963 | 2,285 | 5,872 | 4,476 |
Acquisition-related contingent consideration | 220 | 281 | 433 | 551 |
Acquisition and integration costs | 76 | 587 | 191 | 587 |
Restructuring costs | 193 | 0 | 628 | 0 |
Income from operations | 4,342 | 6,449 | 8,590 | 9,704 |
Nurse And Allied Staffing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue from services | 179,339 | 180,927 | 364,444 | 364,035 |
Contribution income | 16,909 | 18,141 | 33,669 | 33,763 |
Physician Staffing [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue from services | 21,334 | 24,720 | 42,894 | 46,184 |
Contribution income | 1,383 | 2,047 | 2,883 | 2,867 |
Other Human Capital Management Services [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue from services | 3,899 | 3,666 | 7,522 | 6,667 |
Contribution income | $ 312 | $ 241 | $ 624 | $ (199) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Operating leases (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 3,823 |
2,019 | 6,897 |
2,020 | 5,725 |
2,021 | 4,942 |
2,022 | 4,451 |
Thereafter | 9,419 |
Total | $ 35,257 |
INCOME TAXES (Details)
INCOME TAXES (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percentage) | 39.10% | (38.40%) |
Effective income tax rate continuing operations excluding discrete items (percentage) | 40.30% | 37.80% |
Valuation allowance | $ 1.1 | $ 1.1 |
Unrecognized tax benefits | 0.6 | 0.6 |
Unrecognized tax benefits that would impact effective tax rate | $ 4.6 | 4.6 |
Gross increase to current year unrecognized tax benefits related to federal and state tax issues | $ 0.6 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 0.1 | $ 0.9 | $ 0.1 | $ 2.6 | |
Accounts receivable | 0.1 | 0.1 | $ 0.4 | ||
InteliStaf [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | $ 4.7 | 4.5 | $ 9.1 | 8.7 | |
Joint venture, percent ownership | 68.00% | 68.00% | |||
Receivable balance with joint venture | $ 1.8 | $ 1.8 | 0.8 | ||
Payable balance with joint venture | 0.3 | 0.3 | $ 0.3 | ||
Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Rent expense | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
RECENT ACCOUNTING PRONOUNCEME63
RECENT ACCOUNTING PRONOUNCEMENTS - Additional Information (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Accounting Policies [Abstract] | |
Forecasted future lease commitments | $ 35,257 |