CCRN - Earnings call transcript Q4 2019 | Cross Country Healthcare, Inc.

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Operator

Good evening ladies and gentlemen and welcome to the Cross Country Healthcare Earnings Conference Call, for the fourth quarter and full year of 2019. This call is being simultaneously webcast live. A replay of this call will also be available until March 19, 2020, and can be accessed either on the company's website or by dialing 800-294-4406 for domestic calls and 203-369-3231 for international calls and by entering the passcode 2020. This call is being recorded.

If you have any objections, you may disconnect at this time.

the Financial to Officer. turn Country Burns, now Chief Healthcare's will call Bill over Cross I Please ahead, go sir.

William Burns

Kevin as Thank you, Solutions President President Officer, of our joined and today as and good Saville, afternoon, and everyone. Services; and Operations. Chief Executive of White, President Buffy I'm Steve by Clark; Workforce well Vice Executive

outlook quarter Today's include a XXXX, for XXXX. and quarter fourth results of call release discussion for results the first will is www.crosscountryhealthcare.com. full well as for A copy our available as the of of our the year press financial at

Before remind forward-looking made statements. statements we we constitute on begin, need everyone that may to this call certain

and those statements company's As vary are other actual report materially unknown statements. noted contained The XXXX the reports and quarterly from on XX-K known and Form undertakes with risks, any company factors, its other Form in our no in uncertainties update annual release, as filings the SEC. including as forward-looking to can of on results to other and press well XX-Q, obligation forward-looking subject

press this should made substitutes or share. measures non-GAAP teleconference with accordance Such information superior to provided measures measures More financial related non-GAAP information such as financial during these considered financial adjusted earnings EBITDA non-GAAP comments Also, contained are additional calculated in as per not release. measures, our be or and adjusted reference to in for U.S. GAAP. is

Chief will Officer, I the With that, President over now turn Executive our call Kevin Clark. to and

Kevin Clark

to full thank we of am call afternoon. year and the I made. progress having everyone this returned incredibly This Country and you, joining my you for to Cross proud Bill, first us have since marks Thank

core all successful fourth the the especially quarters, we our the without team. turnaround performance, of in change four basis. revenue culture possible a would who momentum for have and quarter, fostered or met to values. employees company clearly am on a modest this we throughout a as exceeded to thanks our be more strong for grateful organic guidance growth embraced was the XXXX than consolidated I year. year of our We None X,XXX full and gained year reported outstanding

of Let our on some touch me accomplishments. just

this all the starts hired our we industry. leadership organization, only but across me, Not across have reason have in attract from it we our been and with top people. have right they the For regard we we successful continued team. to to aligned at talent is to need it's The the that training success. want Cross our simple; inspires tools be building join and to successful are team our give culture people the their and we Country We celebrate

have in we XX the full to than depth accomplishment and significant Healthcare services consolidation disparate core consolidating brand. and brand, go-to-market strengthened professionals By position one of deliver and approach total breadth Cross clients our alike. has Another our better Country for brands to our our been to down to more refresh the

internally just add change that been and both Let externally. well received me has the

on much to nearly other business, make at into our are we quickly boosting needed necessary revenue we I'm the the Throughout costs back the Overall, some majority we order which in year fund to the our difficult our cut investments producing investment. was how in thrilled seeing decisions million, capacity to of capacity. generating and revenue invested it reduce $XX support. return

nurse phase the million a applicant business. our division scales effective, we a From from flexible, facility more within tracking refinanced software of And to $XXX our implemented credit with first cost technology successfully into system new our we a a liquidity perspective perspective, that travel business.

rest and well phase with investments expect inform live, up that the new expect shorten went of travel improved time our across for hires. to the implemented, to the efforts fully As mid-XXXX. will to very that when in these the new we ramp and This business insights have result employee our minimal the deploy we now will platform previously implementation shared, productivity the with gain disruption business of valuable we nurse software in

a the I our selected that am component right ecosystem confident technology we will have partner we as to business. platform scalable across growth continued expect drive provide technology larger one of our

course Of stop there. efforts don't our

the are the digital of efforts. at those I reimagining very truly Country are to and very Cross initiatives We exciting many delivery underway pleased so in age. here There announce am technology first

Later will on property to in is Marketplace, created first demand intellectual be Marketplace per the introduced staffing division. for proprietary company Country has market we this years. an launching the and diem many month platform Cross our the

this are local largest healthcare application professionals connecting local in piloting our of hospitals. our markets, We and new several

I to XXXX. One forward simplify their needed improve goals job. make for about and through this innovations the We is when returned we I millennials progress offering of new ideal more Country that with and to who to sharing are stated experience Cross connect we mostly look and professionals easier intuitive candidate it the more other to healthcare as and

of including Best it's Award Staffing we of to five many celebrate received from the candidates. driving important both and successful and Rated recent After a year clients Clearly these change, other for accomplishments,

strength service the think day. outstanding I a and deliver is our it single position, we testament brand, of the market every to our

we XX% to are me continues spend orders were services trends where the the for throughout seeing. especially up discussing sequentially, rise our up the Demand year. prior XX% and let Travel a our in Next, than business more over Nurse fourth just moment quarter,

see we the Orders related to portion MSPs program continue account increase, managed clients market. or but the our service of broader to in strength a for

year under was X% up from market spend strong, over and XX% the Another in the that our was good prior management MSPs, growth sequentially. remains which indication

about the saw at $X to The equated increase the new revenue As we year rate to investments the revenue producers made in in our due in million also was during part accounts ramp, we to continue increase XX%. the MSPs rate in throughout and capture capture to quarter.

continue filled were rate to than up market. capture opportunity expected that business lastly, faster the X% days to as compared also than improving to physician stronger continue our We to expectations. And reported performance our grow staffing believe remains an our

remains strong and from continue and from upon must in marker Management leading execute, success turnaround. our the we our Provider. team we will evolve we investment the traction to that early This understand the to strategy hard this build we seeing and are Total Talent become While to work continue XXXX,

in to the I'd call And before comments Bill detail, coronavirus. us the more over to I through make like numbers a turn regarding few walk to the

number with As widely reported, growing this of in States the a a serious illness United very people being is infected.

health and the and our be their employees, will we families, protection of care safety professionals, always and is concern Our patients serve. the

lines in of mind, that including monitoring guidelines with With CDC from have hotline and closely all we a establishing have for we employees, enquiries. our and communication their reports been the open

United are Additionally, outside carefully corporate non-essential reviewing and we have we returning employees all travel. established the States from protocols for

be point uncertain our no little supply We regarding to has business. have of with increase professionals flu spikes conversations affected see seasons continue at circumstance. also this or may as labor had impact in as in could both this many staffing we continuity challenges. disruptions, and business through our healthcare Similar for At but our there navigate are how clients we to we well plans, unfortunate professionals, on other to uncertain potential been healthcare present as demand an

while revenue year guidance, decline and as as is quarter continued one expect with first our of one Nurse business the and continued vision, in sequentially year-over-year to in physician we normal all growth both well the Country. about to XXXX. prospects seasonal revenue are for for drive lines to mid-single digit I our optimistic as am trend begin throughout staffing, Cross consolidated improved Allied, the on profitability We expecting continue Regarding growth. brand,

that, the call Bill. to me let with hand And over back

Bill Burns

Thanks Kevin.

As both we our having a exited positive very adjusted-EBITDA. Kevin XXXX mentioned, revenue of trend, and exceeded guidance on

consolidated An the staffing quarter, double year $XXX.X the Allied. strong revenue and driver was driven performance additional of performance largest X% Turning year-over-year growth our over business. was and to segment revenue experienced prior million, Nurse by physician by our digit X% up primarily sequentially, in a the

and the Nurse of growth an $XXX.X Revenue X% increase year up on with FTEs number quarter, was the in the up prior prior million, the year-over-year X% sequentially. assignment. the was Consistent for driver for Allied from and primary

experienced their robust continued remains on the and average pricing in Though and favorable focus driven very modest increase tight big a are Considering supply, spend, be XXXX. certain the pricing X% mix. labor we we by we focused bill, to labor for as seeing for a our demean enter and certain Additionally specialties. clients us geographies in continue increases

X% modest ago, the seasonality. decline XX% $XX a staffing mentioned moment quarter, Revenue prior million, for I strong exceeding expectations. a As a far segment over had mostly due increase physician and the year segment a was our representing to our sequential

in to the and XX for mid-single growth XX advanced growth practice specialty, prior growth margin quarter representing basis the from XX.X%, year-over-year double profit point a The decline improvement was year, point due was physicians. a and sequentially. digit basis Gross digit for

spread decline due grew rate X%. by Nurse and by pay lower improvement a break. operates of margins at mix The average partly sequential driven business The favorable with rate the to rose bill which to as our the year-over-year summer compared was their following pay primarily Allied was X% bill as Education increase higher

the SG&A professional higher million and professional the quarter, for favorable to due $XX.X workers well was X% employee increase as compensation expenses, X% primarily over Also the contributing sequential The year related fees. prior sequentially. increase and a to up sequential in Total experience liability. was was as

growth, planed saving the fund in $X to Throughout investments the cost continued to in million we year drive XXXX. was as revenue reductions net and order could of that approximately result organic pursue realized

as As deployment for expect the centralization both the additional our travel system opportunities we business. continue new rest well of to Applicant from the saving look as we full Tracking cost potential across and XXXX, identifying the automation, of into benefits

mentioned range, quarter for EBITDA end overachievement the our revenue earlier. driven overseas are a by the items call above largely there million the of adjusted out. on high few guidance Adjusted EBITDA, was to Below $X.X

recognize associated with severance We expenses. continue restructuring primarily to costs,

in was credit and million our quarter million $X we efforts. recognized higher, rebranding and addition of facility the refinance extending the depreciation In finally amortization $X.X pertaining from to our earlier

during based sheet with and private versus From quarter in we the can year moved asset credit the sequential which down was the an of to to facility, the release principally we end. timing perspective, the quarter operations which business, in a balance prior from as due well negative of Cash ended was $X growth cash, the redrawn. investment have revolving on in the since payment million working year be capital the quarter, as

outstanding at XX day from unchanged sales remain prior days. Our the quarter

termination the $X.X $X.X that approximately to million The included our system. generated lower the legal for than the reported, to restructuring from pertaining year expenditures items as such new drivers related For million, as the higher well year. which applicant costs, was of the expenses significant as of full tracking year we operations cash throughout hedge, previously settlements prior operating

the end towards In roll. million addition timing an estimated $X resulting for in pre-funding the XXXX year pay

Finally investment growth $X while DSO the resulted sequential the revenue for improved million. of in approximately networking capital year,

the $XX From principal in with closed million undrawn of $XX.X a quarter credit. quarter and This our million you first debt of XXXX letters perspective to we outstanding guidance. brings

and between outlook of million, million Our $XXX X%. growth is rate consolidated a X% be reflecting between year-over-year for revenue and to $XXX

season, growth. staffing. this and and following normal in range guidance double normal FTEs to Allied digit declines the well Nurse physician assumes holiday in staffing digit Nurse both assignment the is to Allied on decline and physician revenue report seasonal the for in as for report the Included for seasonal mid-single as growth Sequentially

for to the the for estimate We are certain demand and and $X seeing a are million. impact we coronavirus any of to our related $X result expecting between professional, as increased a million the and quarter. first flu this On with quarter not specialties, be time worsening impact we monitor the first Also clients of for the at first continue season. note, quarter situation a we

business. from expected due reset a gross Nurse payroll profitability perspective, which our the is primarily tax the to is From quickly impact and be between XX.X%, to in annual margin down Allied XX% and

$X.XX and to the year, over projected XX% represents to share $X.X to projected $X.X. $X.X is be be a EBITDA increase XX% a to is between adjusted earnings Adjusted million, of million which loss per and prior

to this diluted amortization of expense, in $X of shares. million is $X of compensation $XXX,XXX million expense, due of depreciation count taxes interest a $X stock implied of XX.X amortization income rebranding, and expense, $XXX,XXX approximately million Also guidance accelerated of excluding the and million share

our this like the open prepared concludes line at remarks, This point and questions. for Operator? up I'd to

questions. Operator, the you if please your there, if open lines could for

Operator

time have this queue. in At questions Absolutely. Instructions] [Operator three we

A.J. from coming Credit Our first question Rice, is Suisse.

A.J. Rice

business divergence Rice. versus those when trends, and there Nurse was wondering the branch the between A.J. Hi everybody! seeing First, growth describe at what level? is you're on business, I your you travel Allied level

Kevin Clark

mean we're business year-over-year. are all of kind of I seeing Yeah, lines – quarter-over-quarter, we're seeing up

So consistent across demand nursing, we're seeing kind instance. as diem a in well travel for increase local our as allied of health, per

Bill Burns

a just Bill, is this difference. modest A.J.

You in just know both faster, that the travel mid-single nurse X%. the grew X% north slightly of to digits,

So X% up kind the of and faster travel about that nurse business a bit rest was X%. grew little of in the

A.J. Rice

in the demand. think was couple hospitals increases I willing times, to Okay, remarks look to at referenced of prepared to it a rates modest due

are up, you seeing incremental is discussion seeing that – a are a ask, in still increase enough tightening we’ll a these topic the or has I of the for now. put haven't to increases market been but I wire it hospitals in the inching know would guess that we where Are of of pricing. drive where themselves I the You into think just to meaningful triple see up number this you of yet these type nurses we're modest sort point know supply uptick hit for assignments. while

Kevin Clark

it’s Yeah, question. a great

systems. rates, seeing much specialties, premium our health they of especially are kind They can. higher there resistance possibly on but as some We back is as are bill pushing in these

walking scarcity overall kind admissions area X% are the with If you clients the supply. trends, we're of through up revenues it's of at X% certainly nationally, terms macro partnering and their look our are where an of in them up

add. to want might you Buffy,

Buffy White

thank you. absolutely, Yeah,

driving. definitely conversations the So tightness as are supply increasing what far is the in as the think I

We what rates the intelligence market market facilities are more conversations having with healthcare on us growing. telling on where is are

as can increases. strides I some think bill some on rate we made you hear have

within profession the I progression industries. supply versus is the want go the nurses profession, into think seen what influx some we that we've also can nurses or other who potentially and can of the do, flee overtime the nurses to impact market, where maintain folks into

A.J. Rice

and I willing demand maybe and really that but severe do recall price that hospitals seasons pay to unusual quickly to talk when one of point, to know flu have that. the were a I make or staffing of other be other a outbreaks, to disease speculation there this also last times examples, lot Okay, this very question. try premium coronavirus sure for spikes they wanting the where adequate mostly for is at and we just compare either about

and The one or see did encounter. there it are where about to is did an from remember supply some any thing in rates environment I was fear effect step is increased going the the in the assignments nurses what up significant uncertainty they there way? and take traveling The

be Just your perspective helpful. on will that

Kevin Clark

it's mean outstanding I Yeah, an question.

serve. kind amongst situation. know, doctors. market we’ll we just United know States. to of of health the It's if view chatter for is I I the Corona fear But place. I think take You There fluid different a people we terms take professionals, color altruistic the to are of and enter know a is, of health. lot think, work our of the think us, a that increase, the at the join just I you rates here you our that is bill professionals in will moment in judgment them, and in professionals there a it’s sick think the we nurses, definitely, little supply Allied profession this see healthcare care mean population impacting

I if want to know don��t that. add you Buffy, to

Buffy White

for discussions situation, the agree. but – plans can care would A plans, already rapid for healthcare at that I ramp help make we continuity patients. looking in with business care sure many fluid to them facilities, we're Yeah, very

discussions We are goes they supply the rate with potentially what especially and by is quarantine. going on impacted as this, most to considerations drive in them up senses impacted by are in areas or their

drive allow supply are is advising we us So potentially to to be which there will impacts, rate that some to them. going

as significant coronavirus. amount healthcare of keeping especially facilities, informed no Chief healthcare and clinicians, Officer Clinical our work ready we're our matter monitoring including becomes spending situation, what as our our through our through well plans continue We're staff so a that or of professionals, the colleagues, time to everyone

A.J. Rice

last. that will my be So,

that – happening training me send there into Any before get sent them that on into would nurse what's where a an standard Let something? outbreak, or situation. that? have in promised on Are they Washington the just you environment just or special thoughts to is Is like me nurse registered other. an State you have did those

Buffy White

who at somebody their up. upon they nurse whether seeing where senses or a point we're Yeah, this been replace are sending has it potentially impacted into going depends

hospital been specialties unfortunately will need the early specifically define it's to in they ER, the little but to a the are able see of, tell. So that respiratory, you'll potentially of have see facilities not too you some potentially

A.J. Rice

Okay, alright thanks a lot

Kevin Clark

Thank you.

Operator

coming Our next line your speaker is is from question open. Jason Jefferies, Plagman,

Jason Plagman

Good afternoon.

up ask and in bill XXXX there signs back that you mentioned Are Just on little in bouncing pay segment. the compression a through to you wanted of Nurse that to bit persist are Allied know expecting you the you year? of – as or spreads throughout – move follow

Kevin Clark

it's I hard say. to mean Yeah,

we of You bill I far know rates. it see specialties. impacts in We'll terms kind as of rate increases how so earlier coronavirus just certain around mentioned premium see

customers what that at higher look they'll need terms our and Some rates kind in discussions bill partnership supply – of to meet of crisis in need some we're attract of to their might with rates discussing with to our of them, the impact. and

Bill Burns

increase on to the means just rates profit. to gross increase the the just spread, more clarify on still X% A pay expanded. and rate X% is Bill. add And that, Jason, bill still pay this bill a I’ll

that, compression result margin compression, had profit of to clarify. gross as a just just we So not

Jason Plagman

color I trending provide of ago, kind of assignments, sense. you and rate sounds as helpful? the be makes that's would you the last don't of where far trajectory peaked that a want out been we for percentage And specifics, into Got on higher quarters. it, but it premium that to kind are get know as like years couple Any couple can to where relative that

Kevin Clark

let Yeah, about over say spend I But management year, in of the I million for mean just course our look, example minute. with answer Bill under the rose that $XX overall, MSP would a XX%. I’ll

basically wasn’t The out. Bill Bill, Our consolidated sequential growth paid-to-bill had you ago compression, years two here growth, up I this X.X% so is if We but was year-over-year. other pointed margin gross than as flat could.

Bill Burns

Jason, that know say components. that you trend starting forward, out As I we and it's would move saw there's declining. probably it's always a to bottomed but mix

quarter garner So third fourth higher an a third rate, that just example, if tapered bill off. that compare favorability our quarter, EMR had large some but our projects to as you our from quarter much

that a EMR still So project the quarter, that, managed clip. business going at to nice grow despite type in away year-over-year we fourth

it So is. – the it's bounce I what will depending bit mix guess a of on little always businesses underlying

Jason Plagman

Okay, for picking conversations our or or moving MSP partnerships contracts looking, what the – you health the And just rate MSP up the is you're those from comment number pipeline potential business, the place MSP market appreciate activity that's helpful. on of I update direction. for can but seeing seeing that on Are last then, in far you me. driving higher, systems are trending? capture as how exploring that your one hot as in

Kevin Clark

I large terms earlier from a add southeast you one has to we our know Jason. of had in are of and onboarding year the and pipeline where number finished in that want you and solid. of pretty northeast is. you up you year some it's new the come with our especially definitely last know contracts, start know so there. picked pipeline, mean I’ll actually I pleased don’t we systems aboard Yeah, color if Buffy, we number a know It

Buffy White

yes. do, I

we’re seeing there. pipeline. growth So nice I'm very also some by encouraged the

their of clients, maturity more of even Gen program continuum. this models, Gen at from hearing seeking X, across are looking moving from enhanced the in is services looking we're for you're X. delivery what think looking I kind in area They more clients client new

will also chain, nursing, during finance, supply stakeholders the etcetera. these at who be There's beyond the table provider elections next new of HR,

management offer really inclusive services, So the of we're moving eager talent to and full forward. technology, people, the suite total of process

Jason Plagman

time. those know people neutral sense. for from switching you some or providers like to makes so is And a or you strategic those situation you’re sounds That moving MSP of you that, having there, it discussions is partnership more it vendor clients it know are first know those adopting with a the

Buffy White

would potential can a the say first that X, constraint, are at where those, the of more I component them, client but adopt win seeing being really the still MSP. I is Definitely staffing those get there to them neutral to given what there's what for Gen MSPs which vendor call the all a for supply different then some of now looking is we they looking definitely yes provider. MSP’s at and and from out

Kevin Clark

MSP the of our you is talent EMS services broaden is set model all our bring us total provide. of And to we approach, Buffy services out, the model working, that management pointed dominant our the know let to and ability versus customers really our go-to-market market as strategy

Jason Plagman

thanks. Great,

Operator

Our next Capital Jeffrey coming Market. question Please ahead. Silber, go from BMO is

Jeffrey Silber

wanted was targeting; believe an I X% came I bit you about to talked term. target. think much. long Kevin, so I onboard it EBITDA when focusing a more you start little margin Thanks

into we're you there Can think You of to year sort you'll when you talk you of a there? and lot some get maybe made one timeframe and of it progress. about what need Thanks. know get you’ve us give

Kevin Clark

implementing, high single last transformation efficiency when employee automation productivity. the know of you run kind strategic that and and and rate XXXX, so we investment driving there to we from greater is management capital that get the on quarter X% of basis, Yeah, a and way of more end board in second the kind our walked of kind the we the digits to we scenario digital to we and and across team are and we're implemented X% can XXXX you the largely we through by that year know, a called get leveraging where get with by tools out the plan a making

know kind modern, we employees, lets environment, producing margin daily, a our business, monthly revenue see average weekly, that of number you they you because can healthcare of on managers are increase, example, the extent the know to basis For professionals that recruiters, book manage they the account an that we to real EBITDA well way innovative, in single be over getting aspirational work time think of technology you them goals of will time to that our you know using period. those high digits know on

management We a when all ago the The a months And new building in. than we we’re you spectacular getting job around. lines in front and leadership, – the I know here. we turned we know in also of momentum employees, producing million team business the management we're obviously, we came out, were you different business $XX in of as took end business reinvigorated whole script, pointed of we the the done the out team culture, has feel cost terms investing revenue XX of getting

opportunities at talked things the to we've Education about our we’ll technology. be strategic are looking RPO the is higher about really accretive, margins such and that and our We’ll rates of and Health, we as growth principally process at of One continue at tuck-in, of that also areas. M&A gross Locums four very five in have to adjacent looking lines business also Allied look and higher our excited business,

world into. we're the complement going that technology businesses know that You

ability invest in them that technology virtual you years next that a they our really our patients services focusing at week on admissions years will last is I innovative talked and marketplace, You the of in on and was treat our focusing systems the can type think this report deliver trend their need towards read if factor to and right risk, talent drive is I hospital be, XX focused to ability healthcare. and those treat about hospital look profitability. all to preventing into be how for greater home, on XX and the to readmission know where the deliver

Jeffrey Silber

term had my question a but answered ask Great! to You this. actually ask before I've clients it, more go I that to me go and of actually about had second let chance but back sort near focus coronavirus me acquisition, some

Given and the unknown. of it, timing a that’s lot know I still there's

it. You to healthcare what extremes as or happening professionals Obviously are you little easier to know seems little be, the their do bit don't winter, without spring to handle timing, be find more you of the able a be going because the staffing to might this it the opposed find more hospitals might nursers know in to but on think be this a since to using time do firms? know bit we to own

Kevin Clark

Yeah, I don't think so.

we're think I need actually they acquisition. our the us; talent than They we're clients. in to need more important we've been that ever investment making

have a that investment things around programmatic health may We largely talent systems significant have strategies latest investments making ways most, in. and not the advertising like other that find we we're these online and

know average hospital system provide. of part is I spends we big HR, obviously and in the think a X% you this what

I we’re think needed that very now. So right much

just going had two on. lot We've a a this conversations have weeks. in We of the of last lot

especially Our MSP our dialogue – our terms partners. has up in picked of amongst the activity

Jeffrey Silber

great, thank. Okay

Operator

ahead. next have SunTrust. Tobey coming go Sommer, the from question Please We

Jasper Bibb

Jasper ask This about to Tobey. needs good winter Hey, you're afternoon. fourth the is Thank I for wanted Bibb seeing you. and on quarter. for in what orders

Kevin Clark

time we seasonal you overall up are are earlier, year-over-year. sequentially year This you in orders, orders XX%, of up know know we double You as digit. up see but typically know XX% decline orders mentioned a

coronavirus, in an be in that the new are our we you the is ex to $XX to backdrop the a expecting industry from So dynamics very strong billion growing X% segments this whole is strong; know continues year. Jasper very the you growth item world It's X%. deal that's for industry, to backdrop which know all economically with. the The are

this to our to tend especially we all travel them is you industry a theme nurse January, in is for like one Cross We But our needs. fall address to year one up Sunbelt we marketplace. their up. know brand, Country, position and our in services our the and the travel the bring proportionally nurses ability but those fact then definitely within bear helping vision, Hospitals decline, we’re one hire So orders go their customers the our seasonality like orders and in the of there work, the and year-over-year in put as to see

Jasper Bibb

it staffing. good where are anticipating operational touch that investment quarter Could or for and you Thanks. any And for on then additional know like the there? and a physician turnaround you improvements business looks you're you

Kevin Clark

to We're turn whole We’ve really, around. a we I’ll ago. Sure. going yes, very our of a to emphatically and it a to core portfolio I’ll I our total – sell services of to division; a turned and rebranded is business; and few over part important Steve. Country to we Locums. business proud all Cross are it then year ability It’s it bring is. our said questions account the management our you got highlights really was, know bear. It lot of the we

medicine, not provide few demand out and color? continue do could advanced the see some anesthesiology across you We just want but strong to and hospital physician know more to but a segment, like Steve, you call areas I practice

Steve Saville

Sure, thanks Kevin. Hi Jasper.

as measurable. to Kevin been It's The on trajectory within mentioned excellent XXXX XXXX. You outstanding; as execution. been really – leadership a has obviously than pretty know The office, turnaround at we the commitment different we a the been the entered good as has year. exited team's excellence well

revenue quarter in the strong. And so, fourth you very was our know

gain. year-over-year over reported almost earlier, XX% bill up As XX%, was

the we're while This You business. execute still execution expectations. is we continued exceptionally sequentially, with to high continues had nominal and team continued back season, moving the above a know and for typical which quarter demand into this well across step

Jasper Bibb

the appreciate I Thanks detail. guys.

Operator

is ahead. from Barrington Research. next go Our Please Steinke, question Kevin

Kevin Steinke

a to bit little wanted capture more I everyone. rate. about afternoon talk good the Hey,

got think you added $X investment in million revenues, You to that about I to and mentioned up XX% your and producer. that and revenue linked directly

So can you capture the maybe bit for just opportunity what talk forward? a is about dynamic the more little you increasing the and going see rate

Kevin Clark

I’ll start let Yeah, Buffy Kevin also you add. know and

of the of intangibles working Cross and in delivery business key Management know the meet You that of say customers at foremost, know is key one rate clients of particular able ensuring needs. had was I'll to we're and with, our the one the relentless over course focus. we their capture Country terms first improve MSP and year. And it you I'd it a in to our and focus say, performance initiatives restructured on reorganized,

Buffy White

MSP capture focus our about customers. on and encouraged very our our I'm Yeah,

So growth existing coming really that customers, rebounding wins our our as the as MSP from within volume well is continued to new ramp-up.

making really into complement in we a turn-around to focused the those But people We visibility volumes. to the that are to the on restructured aligning organizationally they is the them making right teams when go our part customers laser restructuring. And new on it driving We invest really this compensation were comes right those on the is we orders. right did sure area, being and down plans recruiter difference. that again, giving focused focus of behaviors, focused just and

Kevin Steinke

you're that a Okay, sequential historically. the I that And than little the gross quarter, the mentioned maybe reset. decline first back typical looking payroll historically guidance on great. then, the to sounds you know But just guiding tax annual margin larger is for

So factors should about any we there are be other there? thinking

Bill Burns

off, some We've health and looking know know as prior had at increases the throughout we're other things some lumpiness in the of you and Yeah, our you are that just just start you like insurance. with that XXXX cost in year items years. numbers,

majority, higher from the is points looking reset. in there, we're the but alone. back So step that majority, basis margin slightly the vast rate payroll XX about step at It's tax back, run just the

did from out health some also quarter $X benefit called workers the insurance, There other quarter. the a comp from workers And just net quarter one in and was to the about favorability point, fourth as a we million have sequentially comp.

are we So not…

Kevin Steinke

sense. Yeah, alright, makes okay. that Okay,

Cross I the initiative bit marketplace And like your sounds diem per see more you. that mentioned working still you a that you the envision market. It early thank then can Country lastly but opportunity talk you for you guess, how just little there? there, about Okay, days and maybe

Kevin Clark

for regional open have based the a local real and time, or essentially is, what device – partnered rolling technology our regions employers select demand lets on a this is an the jobs market out that with professionals new Sure. mobile We're the across healthcare pilot technology this place. with and six this that especially look on application later in the in month we

I choice recruiter a even of you or so is as add XX% a device to and getting and the texting verses phone on Today opposed mobile know professionals are healthcare might of and our millennials device the – talking to today.

to candidate of streamlined, delivery experience job we lets So fastest that their a easy, process for have job that you with consideration. the want the them next their find most possible, know efficient

ability side, faster important you client, important a fill and just to to our part know client our open needs the the of is the for strategy. expedite talent big it's jobs on And

technology we'll be place roll that So across market regions in we'll the over nationally deliver we’ll our of XX XX out next months six the and it we will something longer divisions. app the all believe this term to and pilot then

Kevin Steinke

helpful that's everyone. you color. Thank Okay,

Kevin Clark

Kevin. Thanks

Bill Burns

Thank you.

Operator

Sutherland, the Benchmark And from The comes ahead. last question Please Bill go Company.

Bill Sutherland

everybody. and hello Thanks,

the Just on Country a follow-up Marketplace. the on Cross

it Any take care about it it what know as you the the off. – So digits? care as jobs do percentage you the – can take fills far can something in thoughts as that can think that be double can of know it you

Kevin Clark

optimistic. terms a that's you, happy of we're look and call. success what uptake tell to are the seeing Bill I'll know our answering for but in what know healthcare and you forward the our great to we future in market Well, traction provide be question. earnings is it you in place very I'll I professionals,

We platform to we're think for at In be want is demand available, pioneer, XX exciting so industry. very First so, the the most innovative I think our But of latest we technology, but a want of particular that's proprietary segments Country. time on market segment, staffing we're the in it's using staffing the company. software first the to of be us throughout this healthcare, bring you to all, years own kind emerging many Cross in probably technology or know the that. we to proud

Bill Sutherland

at the we as as what producers, And as be well there look additional you're think revenue as drive should to what you this want to then, will doing revenue, year when wait you increased about. productivity far maybe or

Kevin Clark

a able I'm number force the we're producers that optimize throughout we of this is to the that's work have demand because revenue jobs based our in for customers. what we're plan the we doing great year for Yeah, of year full both, hoping adding to terms question. the seeing that on and on

you last the we So and the sized staff sales we year increasing recruiters account recruitment people. right year number know had of kind catch-up of a managers and by where

that Now optimizing force. work it's just more about

is and that making, due mentioned will considerable that we business And to you investment technology the of of with producers the tools. automation the efficiency as see to lead employee know then, book believe we're our we and earlier which gains firmly productivity we'll the increase, revenue

Bill Sutherland

start don’t But to year probably the won’t impact think. really next you tools until

Kevin Clark

a that’s I think fair summation.

be into rolled late You and It From one know in to the it's system to our very went organization assume we to next of onboarding, very are would learned have that this productivity in But balance of software tracking I in smoothly. out our of year applicant able we the our year. that November. gains divisions terms lessons fair think mid-XXXX.

Bill Sutherland

where what for you far direct Are and as if year then additional is would expense reductions I would – And this – you guess it? Bill. this plans so, you as and

Bill Burns

at want we that Our margins recognize that job the be done is in had. there efficiencies Absolutely! be some and regard. to we not We're still at never to

our an being recall bit areas. one you quarter, focus last If example little credentialing just as we about of talked a

business multiple we've Within the Nurse got teams. and Allied

try to drive cost technologies make the going to of functions well, out. corporate all on much proxies to aligning We're to streamline and all. that as those looking help and to are it all the continue possible. as certainly look efficient and out as at not But new overhead there be as We automate that's at all, end common and continue to

Bill Sutherland

not Okay, you things of a like is so targeted number would�� there

Bill Burns

We target to charges throughout we we we I expect to as as a it year. can haven’t year. say haven’t would move going opportunity, restructuring we're for for a as we identify specific us, new see I out but continue new priority sized plan to did – just called a this continue that as continue XXXX, we’ll last

ultimately throughout close If recall all continue and year we you in million with the year, year, savings. upsize realizing the last that $XX to plan annualized

Bill Sutherland

to just said in I because reinvested? wanted I was of clear, And make remarks sure prepared believe, XX that Bill, I you was your

Bill Burns

correct, we the the number ahead invested realized remember, of savings. That's –

on So but that, ultimately savings, we we last year. we realized the got overdrove $X million

Bill Sutherland

just I kind lot to that’s doing a guess form level, me, – commentary it’s about marketplace it of for last the and both Okay mostly demands the wondering it's directionally just know how fill interested how you on know you're the a trending. rates, – businesses, at you if know, of but and improve company just I

Bill Burns

Yeah, us. a rate fill I a scarcity There supply is is look healthcare important mean It's to challenge. of professionals. of

be agile know, the an all know demand. know professional But know and terms within you in increasing healthcare are deploying you in our we're most you innovation to cycle. in the So of strategy brainpower you where reaching they of

the You us. optimistic year course a the it's a we're for over challenge improve and know that rates think supply, will that to of I but continue bigger bill will attract

Buffy White

I Yeah, would agree.

through attractive about nurturing is candidate cycle, can them. quickly cycle, is engagement, it how much we for the a it think very that I them get is

fast are very obviously process an healthcare making having making On with in onboarding facilities get short. there us allowing the decisions, the discussions is and fast, other we to supply side, life around relentless the easy shelf

we both So fill have in work we to sides that get rate up. believe to order

Bill Sutherland

Thanks makes that sense. of Yeah a lot everybody.

Kevin Clark

Thanks Bill.

Bill Burns

Thanks Bill.

Operator

session. question-and-answer the concludes This

Kevin Clark

for Well, to our I XXXX. just of throughout success with Country tonight inform appreciate Healthcare. you the taking everybody the forward We we want to confidence time and thank team in Cross your look

Operator

joining. for you Thank

You may disconnect. now

Cross Country Healthcare (CCRN) 4 Mar 202019 Q4 Earnings call transcript