CCRN - Earnings call transcript Q2 2022 | Cross Country Healthcare, Inc.

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Operator

Good afternoon, everyone. Welcome to Cross Country Healthcare's Earnings Conference Call for the Second Quarter 2022. Please be advised that this call is being recorded and a replay of this webcast will be available on the company's website. Details for accessing the audio replay can be found in the company's earnings release issued this afternoon. At the conclusion of the prepared remarks, I will open the lines for questions. to Healthcare's call Relations. Vice like Vogel, to now Country Cross President would turn over the Josh I of Investor you. Thank And sir. please go ahead,

Josh Vogel

as the by financial Commercial is XXXX, Executive Today's a outlook and President crosscountryhealthcare.com. the our available currently our well beliefs of second Chief you, of good forward-looking statements Delivery. Dan everyone. call our quarter results well Marc Burns, our joined Thank These it. discussion constitute White, for to Krug, may certain at Officer; statements. third company's as Chief President afternoon, based of made as statements Bill include and copy and of John Officer, upon earnings website today Chief call for the on Financial Please that Martins, information Officer; quarter. available our as will A note press I'm this release on our Group reflect

quarterly XX-Q, other with not in materially next statements contained the SEC. in Form As well as filings of noted risks, does those guidance reports intend statements The and other company including in or XXXX vary update and factors, known to subject uncertainties our prior results forward-looking and unknown the press can on are to and report the from to any Form as on forward-looking XX-K its annual release, earnings company's actual release.

Chief to to contained financial information acquisitions forma the periods EBITDA should those will such superior this non-GAAP with measures from though Martins. may our during are adjusted financial prior is as or Executive earnings the excluded substitutes additional over our non-GAAP Also when as financial measures in the presented. information GAAP. recent most reference More accordance considered in for not call, Such call pro and I now we With we release. numbers turn were Officer, measures related US results per or pertain John adjusted press Additionally, these included to normalized provided calculated as to to be refer or our share. that, non-GAAP

John A. Martins

Josh, as be this recent the afternoon. Thanks, quarter this I second joining thank The continue for commitment The thousands CEO full quarter as unwavering for across end by place. the an thousands has stronger, my and organization everyone support was best-in-class the Great first of received capability the so we to to Country the and fronts, been of execute Cross to culture to amazed to and to service many we tens of with us clinicians Work. Place clients deliver never and certification professionals at of of by evidenced we you

and what not to on thousands thousands standing For commitment has a to has I experience committed award the become for those of help delivering Country to values this of core client. employees mission. clinical beacon that and know, leadership. our culture, is may to who our positioned Cross employee entirely current excellence, employees say, practices workplace thirst that equity believe joined partner and have based of a innovation company on in which as ethical We're us its choice have for

guidance we performance of EBITDA, revenue high-end Beyond adjusted both ranges. again exceeded continued have once the for the and our strong

Intellify. the few detail the vendor also very first in neutral multi-tenant cloud-based The newest evolve a our our investments backbone Cross serve will on second get managed service a a vendor workforce further diversify for product as technology continue quarter business. tech-enabled not solution be also I'll will our will only chapter more programs, system that that Intellify to used our launch across minutes. our into for of our we is as with marks Country new management solutions proprietary

$XXX highest million on with Fueling yet expectations this of some lines of broad share milestone of reporting first increase. number than achievement and over me double-digit prior up more was let was again professionals historic with So exceeded year-over-year on performance double assignments at year. across Consolidated our revenue impressive comments results. Growth the another least based the all the was our once business. our

in have COVID-related bill expected, our dose It's contracts that that is billable the the and a by number prior into US by nurse site, needs on X% travel are figures. and business clients population by of increase as first vaccine is which higher included are a the endemic. was in driven reported, the the billable As factor discussions healthcare number declined is in contributing due the the within primarily by assignments once reported to not takeaway quarter, not hours a experiencing to of to a seen in has rising increase in only partly least of vaccinated. that, study hospitalizations are offset professionals that increasingly in poised an home COVID positive we in XX note XX% increase X% our the what profession. the which partly the is by One received being sequential COVID of Yale, today again, According average XX% rates an fueled hours. cases to recent from one by demand same hour increase transition test number have but fully for than is what at versus Based is slightly of during was surges. muted on seems what we seeing hospitals those the well been per are The COVID normal to positive far rise reduction somewhat with are hospitals return cases hours as as interesting

at levels into market of XX% to see room pressure demand the ICU the struggle that COVID an missed lifestyle ages Despite younger. our endemic, faced The more retirements. shortages by settings, is do in also nurses ease. the in will population and imbalance core in we supply-demand of cost expect in to think economy and core it. embrace for labor level of is core of in This seasonal the in try as comes labor being we exasperated on needs, healthcare pandemic millennials to therapists, transitions professionals the Though as continued out, to and fatigue of decreasing emergency a trend will ebb of function more with staff acute The respiratory and nurse and flu ongoing COVID reports evident would stays or flow, continue travel patient a the workforce likely providers not demand the where healthcare is earn are system of effects extremely appear tight they growing As spikes the nurses. staff healthcare all gig census that much with so persist.

last costs With desire call, an standard to their collaboratively work rates have citing where labor their across highest on remain our earnings specialties. see environment rates to cost, the adjusting discussed we to of contingent bill clinicians increased care. the we a elevated relative proactively and while most on to to and result higher lower at normalize, continue deliver clients of ensuring As bedside in a usage are health pre-pandemic compensation with as our costs that levels system a they

some persistent roughly they costs into come continues higher down rates place of expect which However, quarters. rates orders and third open demand in fuel resistance moment on This the labor how bill remains the ago, low mix higher sequential levels. pre-pandemic to Based can as to would fourth mid-teen rates a at Overall rates business, our the XXXX. for labor trajectory as a for move XX% well levels I than decline to XX% pre-COVID we a we travel or and ahead likely see both result as shortage the go. mentioned speed be bill there'll to

XX% across So, rising than and to seen in up remains second as quarters. of of accounting peak in quarter was local across another diversified rise RPO with the leads which as have new and for predated trend XX% end health, start recent and most are with emergency seen home orders, of expected, quarter lines we need med-surge, quarter, orders down Locums, operating from into more staffing, including the Also by strong Throughout of travel increase each continue from to prior the business, thousands a COVID of room the nurses. perspective, in week. specialties cases. The robust From surge. the the the today. spike room third education, we noteworthy Travel our and generated demand rose that continuing interest most seen greatest for is see the

in compensation gross margins costs perspective, who driving encouraged With we the could quarter bill asylums. area normal increase of second travel in is thousands of seen come for look this interest. rates slightly earlier From decline that as the our And to down gross searching number on compensation deployment a rates, in portal a facing year, are us modest than a to and we to our faster am margin. be bill specific return self-selecting opportunities the a of rising compensation that short-term could candidates see headwind have I candidates jobs that faster candidate have of one

with a of talent operate and me MSP of competitive their we and clients by these and site. program on Let market insulate a our bid or wind changes pandemic, should and the assignment of long-term from to rate all I could clients the a on the continuity a believe we in it moment. compensation the managed unexpected this be see we clinicians a and assignments service client We down. continue interest temporary margin for phases work have in with engage have to impressed those for Therefore, thoughtfully is until to we change, ensure needs on clinicians challenges. elaborate our Through proactively impact with in clients. at service traction we

XX%. $X As second of in rate with annualized under an billion a attach spend quarter again just on under over result, management was basis the

we deliver and levels Our volatility X%. have the our start maintained. the relationships have the credit in focus clinical clinical third-party rapid demand, market swings this has by time our talent not rate assist execute to rate bedside, been we success proven close half the MSPs driven below imitating of hired, with building clinical in demand. a ability rapidly network We as and to clinicians deliver to a XX% always deployed and excess the as we have a but continue on to nearly we highest with the cancellation broad the of filling only technology to well performance and with Despite

and candidates more need best to on result staff a our we they accountable their deliver understands clinical possible well opportunities and ensure accelerate to consistently are care systems have patients quarter partner, that of regularly engage clients one We highest can large positioned an And we with clients than programs. treat. challenges, that to one are and XX the pipeline new delivering clinicians that solutions the with unique scale at as the MSP create levels. to Health

built We programs the into portfolio. one to our pipeline and organizations is the XX for months, incremental recently $XX three that new takeaways the Over will of bring of number approximately a which new of under and most two we were talented credibility add significant new last just sales spend programs that have and closed ahead from capability MSPs the competitors have our robust. management, million tenured on looking

the tools discussing spend acceptance thus that of ensure call product that their a make the our management we the Next, vendor code decisions making by offering team currently of new ultimately business available managing more around technology dozens led through extremely usability, better far contingent been the more to tool has our opened than growing The believe superior them X had and simple and was Feedback participants We with and than minutes few I lines QA will client user of is spend. of help will effort let a XX rapidly. pronged in development clients working intuitive. me and insights developers announcement of interest million analytics a positive capabilities writing market, and be design testing. investments.

a and the such the tracking company roadmap XXXX our functionality. XX to comprehensive transform cost deployed and our fulfillment reducing portal just marketplace deploy initiatives XX Intellify system to all existing experience. local we latest we is in digital And in clients, conditions our as other our continue add our candidate to with to released to schedule so to new the while continue had ensure business of and candidate and over self-select shifts multi-year the our for our this to coupled late smooth and in applicant earlier travel on our third-party year next technology will months and the VMS features we to technologies, relying industry, release XXXX of

well that and We market have best-in-class ensure of as as members. speed full a clients a to experience complement candidates, team for technologies

we digitally out Over We are previously in invested starting the that out. on year. a heavily the business called inside this track company more our $X is Year-to-date have more are and three we do is of the to technology we doubling years, two than efficient, we agile last in just transforming have that from investment evident our which and to double three ago. years million, a spent It year. tech-enabled prior approximately or me in

internally I a producers in technology, career. than new and doubled expect never tenured we done level or more Our clients. to point, balanced facing the it delivering efficient productive the have and excellence become to clinical of we’re client to hires much to the at most by level comes earlier partner as of and technologies of productivity both strive revenue become facing fairly able investment solidifying ourselves their really highest this were as choice candidate and their organization, When continued

look states expectations. million seasonal the $XXX is sequential education with extent mid-teen like travel $XXX between primarily to punctuation we in vacations. trending a as by in revenue to to lesser The well in demand Florida, as our to summer a to decline in driven the quarter, softness decline As and we due delays be third expect million

line and EBITDA rates with be is adjusted XX%, to normalize. margin between Our as expectations expected in X%

to begin of and strong organic the adoption the growth third in continued we expansion we most capacity, execution, our to fueled volume the of as be business, sights of our XXXX on lines and expecting set are quarter by Beyond technology client realized gains in from base. our investment

more also believe positioned which sustained all shareholder we as all for drive workforce solutions for Country changes like supported embrace make a to pandemic I'm as that finally runway lines annualized a exciting encouraged and tech-enabled in half from an who over Our me business I'd continue to by Healthcare of we street who run we strong the we have revenue. we talented very is across Cross that notice of our not in the as care provider. in that, Bill. stockholders call year continuum rate the up employer their seems the expect back for closing, a exit just made. emerges I setting of and prospects the is driven demand I $X value. year will I and outlook billion unchanged exceeds to into COVID the business, our believe the taking course, are With as to of thank on believing choice. professionals In company long-term want be are we growth let entire a of team turn services different and story, believe fundamentally growth. company well thank weeks that to our are to recent the the our dedicated of heading

William J. Burns

good Thanks, everyone. John, afternoon, and

quarter than driven least performance EBITDA of second execution was by year-over-year in again adjusted growth revenue with stronger Our and multiple business. for line across double-digit every expected at strong fronts once

build While higher an the in of for segment. Consolidated sequentially $XXX role, travel primary as Nurse lines year rates staffing quarter XXX% physician the as within hours down our well a for the X% and for million, prior our came business. higher revenue bill was played up on driver the business rate across bill over of for approximately and the days billable Allied from all growth increase normalization

million, our EBITDA nearly prior strong an gradually should margin that Gross to Though, first the adjusted was over assignment. Sequentially, margin which as John primarily top-line XX of pay with reset a near-term XX.X%, distort the EBITDA improved double-digit XX%. normalize. the of payroll year, the spread solid quarter. tax XXX% of business. the basis as was was million performance by on continue record driven pay over Gross number another increase time primarily fueled improved primarily basis to trajectory. to approximately margin up spreads bill gross the with $XX in $XXX points could of over representing pressures annual earnings Our prior profit Margin XX adjusted of the bill quarter on mentioned professionals year, related points, travel improve related

decline Turning and million, to Nurse the sequentially. of $XXX representing year XXX% the segments, Allied a revenue reported X% an of and increase over prior

with X%. rates billable Our on yet rose but record by company's history. highest largest another by experienced quarter moment fell spend number business, travelers the while bill travel me let bill just touched of allied hours on John Sequentially, nurse on and in average travel this, X%, travel rates. a assignment the already the

rates It's assignments continue the XXXX throughout As expected, and that of first back bill are and projected seen important of rates on of we've travel to with half note rising, have for assignments open travel that a been trend half declining through leveling for demand the new off year. orders. the to

weeks, In demand. may last indicating amidst uptick several that a be seeing fact, shortages over strong the continued in persist rates seen the near as labor bill term travel a floor we for we've slight the

for As rates. of third the is higher a assignments primarily average wind with the fourth the down related anticipated decline quarters to and result, sequential bill

from Our the local prior business was more up down year, sequentially. XX% than though

to down with Allied, the normal block the more outsourcing As contractor we booked several for service arrangements ramp as managed driving and Nurse we to hourly continue providers. local average our business the a sequentially level rate. recedes, our local large Also rose X% assignments pandemic homecare are returning business pace seeing our with

on in the over basis business homecare prior it forma was June of a our acquired year we XX% pro year. reminder, and a up As last

prior impact the over entirely down summer year reported XX% was due business of a sequentially, from vacation. education our XX% and Lastly, the start the increase

expecting fall. are see the business as school to the new this year to We in growth continue double-digit starts

Finally, revenue, The we year Staffing of fueled for which delivered quarter. over million Also was $XX a segment, was number billable the specialties. in the driven favorably a were the driven by growth specialties The prior the to practice advanced in experienced day revenue sequential and physicians an XX% quarter. down an and days was per our in improved wide for just decline the increase across physicians quarter practice was of up increase filled prior Physician impacting increases XX% range nearly from of relative X% average mix billable by rate over specialties. modest daily as the by year prior days prior XX% up the fewer advanced over

general down selling, to the sequentially. Total administrative year Moving up expense income and the million, was XX% XX% $XX over and statement. prior

productivity. compensation of improved of investments over revenue, the our continued XX%, driven over operating basis The down well business, the of our people points as and percent our was prior both increase majority improved on the in as and the company. leverage as a by As has continued prior the strong the performance XXX in sequentially SG&A nearly growth year from year was higher

people have business broad-based been fuel in across growth. investments Our our all organic lines of to

the We resources opportunity. the targeted and they supports to investments further continue will capacity we tools the leverage ensure with to believe greatest our areas planning that to that market and are

candidate to addition people, technology also like technology of the deployment facilitate heavily rapid resources new In are with VMS and and client-facing Intellify. investments developers additional to our investing we in the in

not for year. technology $XX of spend the target of on a approximately qualify nature all will of prior XXXX from for work As million, the given is doubling the represents capitalization. some our that a performed, And which projects reminder,

of associated restructuring rise in year. million the facility in option expense During the non-cash exercise $X.X closed XX% impairment charges increase $X March one an the and was first over early quarter Interest this principally fees of credit rates of our in well completed larger quarter, to and we're of realized benefit our in interest increase as for driven representing asset-based the facilities. as the by we additional an as with termination able million

be principal a our million effective on Just term in income now $XX items. the opted prior order was on forward. to the latest make rate lower income on projections, tax rate of $XX believe And effective tax we of going to the representing XX%. the to statement, interest end payment subordinated quarter finally, million, effective will tax our discrete of loan approximately XX% year we cost full our excluding Based an

adjusted year. performance the strong has for quarter that was per in earnings $X.XX which resulted share triple nearly prior Our of the of

to and $XX timing perspective, called Turning payment has million tax were and outstanding $XXX,XXX a a the throughout ended as collections $XXX improve. operations, term weekly quarter representing quarter, our out were cash cash $XXX increase from activity in $XX over XX was last we million we to net Collection the the we million From up quarter quarter. sheet, income our of collections under the $XX and in the subordinated in second ABL remained debt, trend under four million flow the Day day due borrowings continued generated in loan strong outstanding million including estimated with balance and average which to primarily XX% days, cash sales for the the first quarter. facility.

we access to second year. summer driven cash on We're outlook of $XXX operations quarter. generate XX.X% sequential XX%, on for between me of This do the we half As by our positive under cash significant $XX the of guidance XX.X% to operations million, education travel cash from to down mix the to anticipated anticipated break a as report in full decline for and representing the business. for flows, Though the quarter. we reflects are expected not which maintain third Gross margins our full between than the bill decline impact be quarter third $XXX and more predominantly line. expect rates give have in well from the our guiding million the to to and revenue as and XX% million brings expect ABL to the today, from paid

expense as well the guidance $XX continued in continued to questions. travel of $X.X per rates EBITDA which primarily is is million be also compensation Adjusted we now to declining between interest will our an $X.XX an in impact bill due bill in estimated XX%. as profit, The open the improvement, to expected and adjusted be sequential XX.X and adjusted gross continued X% $X.X to of normalize, Also margin an count revenue representing of our margin on share rates growth $X.XX our $X million expecting see workforce. an tax million, our million, of of lines expect by be share XX%. stock-based million between amortization and shares. prepared and investments impacted million, like of average rate to Based concludes pay earnings and the the higher based again to margin effective businesses. this depreciation As on is margin continue EBITDA in for decline assumed in and EBITDA and of to Operator? remarks approximately rates This $XX we're we'd

Operator

with Kevin of you. Thank [Operator Our is from first America. Instructions] question Fischbeck Bank

You may go ahead.

Kevin Fischbeck

Great, thanks.

beyond? there Would thinking grow we And you still to that number? about XXXX rate hard number So I and kind think about run expect of to that talk -- at guess be off bit in about guess about is year. rate out that run this the rates. X%, of should just XX% I bill figure margin everyone's general, you how A that plan point. XXXX But exit if in think that we to QX the to to trying

John A. Martins

looking pleased able way And are more feel have MSP mean now start we're our more in. bill and saying, fourth a we we off But and Yeah, Bill that those to results going going all, we're still quarter really rates. good deals, drive key we yes, to grow our just the with business be future. and look start to Intellify at we anticipate at, able to really what into that's had I'll beyond. first in about I think I'll us helping of about right we help to be I'd where the we've by like what really be think into and when to us to that's growth And launching we'd win

talking organization. deals look lot as really we marks, we reorganized deals, the we in our robust of in that and landed months of in. verbal shortly. will matter pipeline when in we recently another commitments million A have fact added firepower about we're $XX more win put And we've of even when over coming we're deals $XX pretty We've $XX sales worth over to mentioned MSPs, three so through a million And last award million that contracting our right a our column MSPs organization. we two prepared XX the additional which have now, the

So we to Bill the -- growth room a the for have there feel in is lot that of future. I'll speak

William J. Burns

modeling have Longer a would in forward rise, as us really is the year that the the mid-single this 'XX this we experienced. we're their for Yeah. year. say level it as point significant rates a Kevin, mid-single into But digit question course your I XXXX. of normal it. into a will the We think start think inching term we start off don't levels point. normally go the course, of as for rates not I bill on and part be -- to trajectory we XXXX -- think think percentage after into I digit at will at lens increase, of I we we get really low kind see go most better have of

Kevin Fischbeck

and end maybe just normally then you the quarter QX give what what start would that Can like seasonally. the fair color I it know us of throughout And guess again. my year? just the that's that Okay, interesting a XX% about like at up helpful. reference look normally a I normal and guess the July. like some in head to get [indiscernible] was on should orders again What the look don't I of quarter top of

William J. Burns

low Bill. level in kind but normal is high single, volatility. in not have did there We of movements. would in kind We of it order a this of this Yeah, again pre-pandemic. have demand, not Kevin, of year was seen kind double-digit this were Yeah, fluctuations single, movement normal

prepared kind last this a quarter and demand really inching kind quarter. step every one we're days the surge. week we the trough no I carried is corollary quarter, remarks, of been pandemic has third wild of Demand wasn't on swings John's within we pull back the of that since XX%. point and what more the as coming could up the to. down up into it there. now hit quarter think pandemic into was, to single I There into as the point XX% the point unexpectedly point that has in then pre-pandemic of from ever to experienced swing where, forward So been is out the first third we're the on was a as you as been And of basis got expected, that another really It's QX sort early even historic out

John A. Martins

COVID last endemic, up also that seeing season add starting season. needs, anticipating higher Yeah, in right now don't flu we're for as of right? cases preparing transitioning a good come pandemic we and looking be that flu terms I'd over like number moving the at from to six to popped weeks. of see really We'd seasonality looks and that the Kevin to of the what a order that have in But we're feel

so hospitalizations that we're COVID-related. while still seeing And still being of need some are down, portion

the the the of pre-pandemic. than up our for orders continuing to But are business it's little where lines of that. we hard see have to the a how end number double the to to And at look of that needs the place we anticipate day future. So in say, were rest that of they now

William J. Burns

bit delaying And probably we and orders get control, saw systems early think I under trying comments, the as QX was just artificial were giving a I like. in out to contingent one labor other what

So what swinging we're pendulum to market normal the seeing is the more for the back given really shortages. level the

John A. Martins

getting predict It's really of Yeah. the kind And we're that what cycle, going but are, how not having really crystal I'd we're seeing be and pediatrics not into months. seeing the normal front there seeing more is, in you flows ball which ebbs coming to we're but we're you're seeing demand six still having OR, shows and I of again, up think to seeing also also we’re ICU, back -- say hard respiratory, next the in specialties us.

Kevin Fischbeck

All right. you. Thank Great.

Operator

from Brian you. Thank next question with Jefferies. is Tanquilut The

You ahead. may go

Taji Phillips

and Good taking is afternoon, question. Brian. everyone. you on thank I'm for my This actually Taji, for

my of -- look applications retention? some provide to of is, recruiting that you've -- come on also can does and lot you that taken you seeing this nurses the boost initiatives environment new like table, what and first to insight recruitment of first a for So, question then in the your And fill about terms are the of the rest follow-up complete. how to a you on versus for looking so when and that's some that rates, quarter that you've you're how the that percentage can forward is you at thinking progressed Thanks. received the throughout orders those year? color thinking provide moving Can about

John A. Martins

programmatic our our to seen invest heavily and digital strategy. Sure. record applicants Taji. Thanks applicants, as of question, have for months continue the in we the And in as we six terms number advertising, of a over marketing well last

we're or age XX as or a travelers defined -- millennials younger of lot more our of XX% have people younger. of all are -- We now seeing

join And of so to heavy a the swing and to lot we're become into about while. wanting applicants seeing a we've been economy for speaking workforce and coming this a gig our

to very and rates rate. have our And we we look control seeing of being on. fill move as And really we're MSPs exclusivity travel so at in and nursing actually we at orders our attracted at we forward. we look still we the that large look those And number capture in the rates, fill from a supply our terms the pleased rate, of can

XX% as next well our So our rate high what is our And focus prepared capture our we about really in capture on south XX%. on and MSPs just rate. remains, we -- the a rates fill XX%, little are of in said remarks,

Operator

And does your conclude question? that

Taji Phillips

you. thank Yes,

Operator

Tobey Thank Sommer next Truist question you. The Securities. with is from

may You ahead. go

Tobey Sommer

on to Based you sort you. when would Thank inflect and higher? of Nurse your then forecast commentary, Allied and plateau revenue

William J. Burns

Yeah.

significant we to guess I'd based on bill that as the forward. They the to that -- for fourth bill and are the early in would quarter rate I continue to Bill. that we would those our fourth is say get begins where it changes. inch won't to and the QX QX be overtake the with XXXX, this expected of rates, expected declines at volumes quarter. into is point looking how But trough volume Tobey, So, most year outstrip expectation coming the reductions rate on we're think into the

Tobey Sommer

And I about wanted MSP to a your question ask capture.

pandemic You I pre-pandemic of to have know, us through of said how give don't from, a would point? and about sort you. the us increase low-XXs, that maybe moderate some some you has little should context flowed that, could give -- Thank ebbed demand for high-XXs, context room at you sorry, whether bit and could

John A. Martins

inch question. we This for Thanks to Sure. in we the John. high-XXs Toby and And the were that up the is high-XXs. pre-pandemic

accelerate much capability we want our that XXs. before, even we the excess to ability MSPs. higher actually be really the up potential lever to and around MSPs. could our really really of no reason really of too have we do but feed that don't from our bring with is But higher if continue what there a needed than is, we we But keep that wins to to it to, to believe MSPs and our we pull, take bring we now we'll it because as XXs stated have pipeline We we new that in and always the we it's supply right pipeline clients

we want clients do Intellify neutral the our it many is to dollar that to that allowing service. And that participated able we launch a on clients help VMS The never a course be also program of offer the us a have we're segment there, business. space, diversify that now in other prior of neutral multi-billion will there we into dollar as or are a those clients currently space again, we going And for vendor of Intellify, to MSP is, where just segment feel is thing before. to which offering, of to want that out a And an have a that with vendor program. accountable continue multi-billion exciting But vendor or now model choice which enter higher with -- mentioned margin business.

new offering being share really vendor neutral in that that take about some space. able and excited market very to we're So

Tobey Sommer

from Thank just of in time quantify what is sense. own makes and respect your you terms the could period might you. that to third-party the That place? the the transitioning over vendor Intellify -- with take With book platform, which own cost to that your transferring savings associated

William J. Burns

you cost the the Yeah, us, for on imagine under for a us context management that mean Tobey, just and a a is want XX in basis, round anywhere million talking to you X%, bps you're Dan I you that's give there attracts for guess because that the of from speak on schedule, know the can cost. rollout technology think it's or today the spend to deployment almost annualized to that numbers, used bit. third-party $XX I'll right, Bill. normalized north if I savings so I so little I the fee a is all don't

Daniel J. White

scheduled similar throughout How Tobey. of for and these a currently QX XX implementation are QX, signings. Hi, expected some Yeah. already are clients live new number include and have which We go to you?

capacity some grow but build regard. muscles next that year. than the we feel into really add We're ones and get building as to some good And in ability to not only actually that the some so we new new faster about convert

of about that able And energized with implementation, that do add for And sort the been fact accounts. to right where talent from all so really management, of that feel really I to the are already client goes strong way experienced now. I me, we optimization has to good to mean, team. ongoing continue of our sales some through our we've

good just about to ability our deliver our I'm to really to So customers. continue feeling value

William J. Burns

they factors dictate we number of the has to want to on. throw, Obviously, one MSPs, active the accounts and will there do accounts which I Tobey, with going speed of just were convert coming of new And our clients we if on we is more are of also can that over wins on ones, at old that to level the the a those have make technology, that be moving couple rapidly and get of some so move sure disruption. technology But to programs but pace mix there's not we their convert as will than some to their the needs. it with much deployed the this

John A. Martins

is John, this Yeah, Tobey.

I the they and period do again sure XX thoughtful win We XX other to make think we're first to how and us we go this. take the technologies, and clients realistically -- want want staff the to month patients you'll about see foremost be sure of over we but we there. in make care and have to go

our software, as very build So develop process. -- and iterative we and it's

are on easier hospitals complex some some more complex a go that so little faster. hospitals will go And some -- some complex that a -- bit will rent, slow little little

as be and well as will we do. time important, it -- Bill clients into we those I over down quicker will little period a move the moving accelerate to slow bring will new winning So as bit noted, vendor think clients also on neutral to Those which as keep, MSPs winning space other that on a continue and us we older And keep that as it's there. the clients.

Tobey Sommer

multiple in results get under surged stock M&A hearing the company me the company cases sort from in transaction pressure the I'll and some back that [indiscernible] receiving pretty inquiries and question have of of business? might coming respectable Are is The into any and and be parties Last outreach private any you as and in the Thanks. still interested higher. we're queue. even acquiring

William J. Burns

as the think company. forward look continuing continuing moves look keeping and at guys pre-COVID making as we're below But target us showing we're And million no, focus most we those business. I to an what if we we to $XX where doing, on were where people EBITDA really growing And we're to we No, were well right we're you the organization, if our analyst well people are. at there. and have think we're where look out the undervalued prices you

looking high trailing to exit there out lifted from nearly story people and company and $XXX stated, XX and endemic been is north every rate million We low we we've as the inside of with pandemic quickly puts that the one And foundations. that business. And Clark at EBITDA. started We've foundations shored up When and and of at we through $X ago what $XXX look at we foundation. $XXX us if EBITDA, but at came million number double-digit around pick starting X.X is billion we've those out back delivered found up over your the stock Our you see look this think revenue of from the we in our shored and people, done marks. months up from as Kevin will north those has had fairly the of of million XXXX, the turned that. to it -- -- look foundation, we single years, came moved and as taking company, Country, if shore year that culture aspect proven get to between a run And process the million. $XXX that that needed we've starting and which good we've and those years to Cross technology the of we've every turned three you hit last we've we this turned we around

continue team is win more than top couple facing our external Now -- year winning us greater as team have technology are other shareholder deliver continuously more deals our to to -- this to we portal, with our we will MSP the and value launched for reasons is be and [indiscernible] clients that Intellify to that deals candidate for which as sales there we there of dynamic see talking internal anybody where and efficient a will but accelerated we shareholders greater, keep no value. launch experience,

Operator

And questions? does that your conclude

Tobey Sommer

yes. does, It

Operator

question next The Benchmark Sutherland Company. Thank is Our you. [Operator Bill from Instructions] with

go may ahead. You

William Sutherland

fact future? discuss probably the foreseeable or to Bill, and the is turn forward, positive your John everybody. priorities that going given for the going very cash capital particularly strongly Hello,

William J. Burns

Hey, Billy. answer here. both We can

been, so all, I more we a options. have because it predominantly think, topic it's of of at Country ever Cross first conversation more has than

you million the back the were I million million flows you're north when of Country basis. and of year. cash a a Cross look at $XX in positive It's generating whole think ballgame we on cash pre $XX to a looking $XXX turnaround continuing of

to us available So more now. options are

this I we're is been on the most use always strategy growth. we But continue to predominant think cash returns around what that I'd opportunistic what I at looking of more minute. think be the working will that say funding a dedicated value. right at

that for I if healthy to like a $XX our us. of continue its because like on did that our the M&A year. have down for not of down both wouldn't Intellify. on Country pretty play products And some significant. that's a term scale amount the for books. continue then course loan that organic, debt, surprised build would million on just on higher debt announced best already future we tuck in to that's technology pay company the our businesses thing I is Cross ramp of this optional Servicing opportunity have the we've say to next spend is other some that the we interest in cost be margins debt. in pay to There's investments So for to is into certainly

half. that And will we the repurchase on collections share you all on second are something of we'll think in do I that to our in sight And so we that's forward look that fast know side. in, share we're line internally. sitting I that repurchases evaluating coming be that the more the were something clock think If the and cash see effort certainly concerted are would I

William Sutherland

John. wanted a little just Great. I clarification,

You months I bill looking understand guess, six to lead better clearly of in the just pay how takes could were put rates them, out want gross terms the what thinking you and or a that takes? those little rates a -- little to on were you're margin in more down. and up move puts puts lags, I and when and discussing

John A. Martins

Sure.

on working be where on on some up margin. anticipate rates, to to had margin of So rate that bit as more to some of We lower we pick a the that normal go from we'll some we assignments start assignments. travel assignments crisis those the able looking were we little those

to had really in mid to the normal and had even crisis assignment third clinicians had assignment assignment. is, over some those Now a those and remarks the crisis agree as what to hospital where turn rate a we've try and the the an changed prepared [indiscernible] quarter we've needs whole during clinician assignment, keep over changes we said from our assignment travel margin. rate that as case, travel a in clinicians lower when take And take can we rate to

we want making because hospitals the care increase have the to once -- anticipate new bedside margin fourth to would we a whole, and have in to keep retain and these the we go mid the assignment little we're assignment, from clinicians that And we the bit hospitals. reads, gross hit those then then a quarter third the -- have have lower the margin. hit we So margin sure of as quarter able into at

our opportunity we businesses. the as other our at portfolio whole look in have margin The of we is

digit start much business. So as that's rolling a then vendor going out increase higher a business business for and our and health we our And that higher look margin at growth as we business, that's platform, at rate. a overall double margin neutral will home the that's also margins growing

up in Our business over COVID and numbers. up interesting and which pre were QX, education revenue against XXXX that's was we business for XX% XXXX in education

education in has country back that and segment same we we saw rapidly. to fairly experienced the are COVID but only actually revenue healthcare. the in shortages not pre The in of So we're crisis education, severe growing this

they healthcare distance healthcare. in with and professionals had enough during education had into as As had schools we fatigue had the and go many not same and learning burnout professionals of the PPE and pandemic to teachers because the

shortage a alleviated anticipated be to prices seeing that we're great is several next not years. -- So education the professional for

that invested also overall our increased have that see we in our expect margins, business, but business will will margins. assignments. yes, answer to to do us normalized margins your we help quarter grow which the portfolio But help a increase to So normalized -- for fourth heavily our -- of also help question, to -- travel that in

William Sutherland

you where given me, very And of what's just dynamics bolt-ons the would platform remind that think I would the attractive be education would be then the one discussed? size now?

William J. Burns

the on, on annual and business Bill. but aside an it's like that $XX for where basis on business summer you from move education revenue that's months. the us excluding the stream, million a spot run track months summer us You're for rate for

find opportunities to diversified market. play at It it's intensely definitely a are have looking is that for ins. we the the So right a heavily tuck place to

So it's smaller bit -- some of opportunities that But we're there's are a there. at. looking the there out companies

William Sutherland

Okay. everybody. Thanks

John A. Martins

Thank you.

Operator

next Truist you. [Operator Our Securities. from Thank Instructions] with Tobey question Sommer is

ahead. go may You

Tobey Sommer

to I could That's wondering describe Thanks. be you bit BLS, and emphasizing you little the that's your kind market. your would new a quits nurse directional if and nurse was the complexion are of think data of from of -- but new travel We kind the get more aren't do perhaps database applicants. in timely.

John A. Martins

the spectrum, age brackets, Gen were mean, mean, entire demographics I'm But answers you applicants. I had not are asking thirds we've that age We've or like say you in -- -- age for. increase Tobey, when seen I millennials increases across all younger. looking the the eight but two Yes, sure you are Z the an fold question if

Tobey Sommer

that to of part few sheet outlook? stick minutes improved heard intend or ago, cash margins I and capital flow you kind with the be the structure optimized that current you of missed -- and given I And there the the but balance flow. Do cash ways about are talk can

John A. Martins

Yes, absolutely, Tobey.

now. loan. looking at or pro right the options opens We're a Bs. an ABL loan it that looking of and structure whether size up we're that in scale at think more we for evaluating term and the now have debt I Today, is we subordinated us are term a rata market

So piece debt permanent there's a flexible, business. the put in scalable opportunities more to of on

do of seen we've on our given it receivables, I and peaks -- scales that's EBITDA think that ability something fit your has and valleys but ABL off your gets point line for historically of that's So your multiple business at profitability. borrow the of to the the outstripped some your or by us the sight. in size ABL an with

that on from markets that you're capital definitely -- debt table debt been seems a the be right markets most -- the perspective. open The bit. are It the aware have now. to not easing I'm things sure it's markets So

think will back inch half, we something the as closely. be So evaluating that be I we'll into more

Tobey Sommer

much Okay. questions. the you additional very for Thank entertaining

John A. Martins

You're welcome.

William J. Burns

Thanks, Tobey.

Operator

to back ladies John there period. does are no you. Q&A Instructions] this As further closing I'll gentlemen, for Thank conclude remarks. [Operator Martin over now questions, it and the turn

John A. Martins

and signing He highly moment a as to our one and everyone In thoughts mid-XXXX. accomplished this progress off, entrepreneur committee as soul, He recognized his closing, had been life are next our prayers Before to Director passed executive of a and I'd sadly who late audit was call. in unique to Daryl be and difficult Friedman, well recognize our on as the Daryl today's call. and We missed an on family inspiring updating as greatly a achievements of compensation member triathlete. member a and time. forward will well participating thank committee in I'd look during to members, for like you take like the XXXX since a an Board June. since with

Operator

does you this today's your and call. Thank Ladies conclude conference participation. gentlemen, for

disconnect. now may You

Cross Country Healthcare (CCRN) 4 Aug 222022 Q2 Earnings call transcript