CCRN - Earnings call 3 2023 | Cross Country Healthcare, Inc.

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Operator

Good afternoon, everyone. Welcome to the Cross Country Healthcare's Earnings Conference Call for the Third Quarter 2023. 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, ahead, go and Thank sir. please

Joshua Vogel

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

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

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

John Martins

and in Thanks, this pleased execute a us you, afternoon. challenging what to with everyone, Overall, was remains continued our joining ability market. Josh, I thank for

the quarter, $XXX EBITDA $XX on touch of million, was million, in see dynamics moment, in I third for business market long-term our I'll a consolidated we market. want and position stress future success in tightening the business. reflecting the manage the continue to pay we For as but a revenue adjusted opportunities that spreads strategically of ourselves to with primarily for bill growth travel within some

revenue rates through progress bill expected, rates quarters. over demand quarter have still we below throughout line driven Demand our for from was stable As declined on lower and quarter, both travelers high mid the a remained and single-digit decline for estimates the the travelers to sequentially, assignments. travel in both fewer with approximately by second Average fairly X% after XX% down third in experienced travel fourth impact near quarter. will lows we relative from do in remain the the Regardless, on will second having term. assignment softness needs we Seasonal quarter. travelers the that up the pick we the expectations, likely number in anticipate third the of rebounded fourth but as

targets them. cases, orders have rates attract but have needed called fill to largely open for many previously, to remain too bill low we As stabilized, out in

a compression the due expectation amidst seeing to of rates pullback result tightening some margin nurses, bill compensation this for a pay spreads. As the in we bill are year, in elevated

the So several next may this the appears that be to a issue industry across for broader quarters. persist

preserve while our in to remain protecting our competitive order strive We to profitability. share market will

reliance as business per Our clients contingent on softness staff. demand from clinical impacts to in felt reduce the diem the seek also has or continue local to

Turning XX% to the prior decision revenue hit staffing annual mix outpace us low continued business of year, up basis, on than more year-over-year, projected and to this an lines. run on putting an an performance by billable a the the growth from pace reported was double-digit Driving our was rate bill quickly Staffing its higher strong million. days up continuing other industry XX% to staffing rate higher of with combination improved Physician analysts. organic specialties. $XXX And of

improved organic the of remains below businesses, income our higher we for ultimately targeting contribution that the continuing ramp target, growth. business investments in fastest-growing fuel lead strong, its to new returned year-over-year and production, our double-digit quarter. Nurse from we though As started of the continue break summer one education XXXX. and the Within with make in school combined in year the margin continued trend profitability to will will specialties business And growth Allied, believe third our off

the business Our Care sequentially prior Home over the quarter, also up in both performed and third mid-single year. digits well

our of since back call, poised to the entering last is wins care MST business home X reaccelerate On XXXX. this

on let me moment a Now spend Intellify.

for Our market-leading data believe is clients proprietary platform system we analytics provides and vendor that real-time that a management insights.

we not dollars more in half with but of not As multibillion-dollar our our Intellify. accounts, a saves opens it we only onto billions vendor previously converted Since space. MSP opportunity neutral of the shared, have up than launch, MSPs only Intellify

ability that X have won This vendor-neutral We which in of showcases our are new implement programs today. succession. to live programs, X rapid

expected be once win most of largest with million excess spend to $XXX also is in implemented. Our recent our fully annual date

have baseline on already includes this attendance, of the functionality our travel Shifting Nurse continuing and time will On nonclinical back pay expand new locums, robust the greatly that the for transparency MSPs created to RPO. of a health to bill care utilizing offering predictive in with announce believe new dashboards internal the reporting, objective, for Intellify has provide This our a years. important introducing per data real-time by the to recent internal market. that and licensed diems, DAS, industry-leading we tool data systems are Today, analytics and set These rate insights. Country by solution we and Cross to been basis. company I'm Intellify analytics and first industry within called which DAS independent the feature introduces transparency in new add-ons can proposition or win, is by be programs, on building gears. resource that stand-alone offered embedded Allied, such know pools, value We We the enhance clients. analytics excited

develop utilizing current deploy from outlook. dollars providers. is the to brings staffing me in innovative care it and with billions systems. them to to credited large helping recently in Country, we to local, advance health tool DAS showcases Cross and national care help which client the ability fact, not terms and check health DAS system, providers has price is on In save Though bring material regional care a a This licensed yet basis. to to our further their costs. of of dollars significant value to health technologies hospitals our we rationalize This This their national

including comments adjusted $XX revenue my demand million. that current we market market with pressure, industry-wide million at to and between $XXX coming backdrop, on Given trends $XX million, recent earlier and $XXX EBITDA quarter will in the anticipate million be fourth

a $XXX year, the EBITDA, implies million in margin full we'll above million between For representing and generate X%. the guidance adjusted $XXX

well expected the education and in single center for balance of we from this maintain ability we long-term staffing, sufficient by are market to our as tailwinds long-term we noted, at given guidance continued profitable our growth. like full recent deployment in remain previously in from savings the similar growth driven achieve am year high capacity higher-margin continue stability our we digits drive wins, have for enhanced investments preserve excellence sustainable Though to ensuring I will and margins and with technology to providing our investments not as through XXXX cost seen value the we businesses productivity while believe fuel increasing home As focused broader [indiscernible]. shareholder leveraging on time, growth, to the we care and profitability confident low-cost capital. can

well in of our today's as generation continue noted cash in debt. repurchasing quarter, third all as down paying allowing release, us our was press our to solid As shares the

We we Newsweek as meaningful as to for for were I We patient the continuum believe devoted we investments contributions. be expansion. named momentum offerings recently driver by about confident well upon platform balance exiting the will our year, our the leverage our closing, hard workplaces prospects the XXX as of look and well technology which early a will care. of are XXXX In revenue from the as our loved diversify margin healthy work best companies specifically to our to our further and enhance the we sheet U.S. most build long-term by top want follow across and to their Intellify, to as ability work ongoing thank growth employees to

foster growth, News being. and efforts inclusion and validate World recognitions of our Report. to culture well These a

Lastly, all Country of our shareholders With employer Bill. the of that, thank the for over let you company. in to as their Cross professionals turn may me our choice call well who to believing as

William Burns

John, afternoon, Thanks, good and everyone.

quarter increase in just was assignments minutes. range, XX Gross our per million, for end million a third points as which prior $XXX gross demand softer detail of represented than for more segments get year I'll the basis margin in driven $XX margin into due XX%. insurance both continued the quarter towards our the diem local profit the highlighted, John care businesses our on consolidated within for of revenue an a few albeit As was was experienced guidance as pay demand local bill as lower the prior down Gross and the respectively, the in down compression in workers as rates. comp. both revenue part we and bill travel and of well such burdens and to large travel sequentially quarter, XX%, the Compared normalization health was to and by in anticipated. spreads XX% business

the bill cost housing very margin. As pay competitive, though the driving the mentioned, come industry John faster very high, than rates rates, remains remains down and overall down slightly have of

was to as the as Moving performance of reductions and $XX in lower variable general quarters. statement. Selling, well income down in million, majority and expense historic salary relates compensation The year. decrease mentioned XX% XX% over prior administrative following the and sequentially costs prior benefit the down the the we throughout pandemic the

fourth, continue up ensuring the taken the by capacity for in internal invest year, of we business We investments with future sufficient XX%, anticipate date the well start current low for while we while our approximately quarter with a of prior in the as areas taken XX% to revenue, into to will SG&A reduced potential mid-single the quarter headcount with Including the of decline the Based well as from market as have XX% highest proactively lower the sequential the as continuing our SG&A third digits technology to we percentage start actions profitability to as maintain conditions in XX% throughout the growth And in growth. on balance revenue, to year. fourth since the decline was team. of cost actions the and total last compensation our associated in quarter.

the just EBITDA margin the gross tighter EBITDA With end revenue our an of at representing $XX adjusted the X% of expectations we million, quarter. adjusted reported and lower a margin, of for over

the an EBITDA of continue $XXX,XXX, the managing which ramp may driven to of double-digit letters Interest business interest As certain was the by before, we fees we goals. the business necessitates stated the was are The quarters. to on continue coming projects will for ABL most can was income statement, and investments the but third quarter. on quarter, drawn the goal under adjusted likely that cash statement. low mix and current little this $X.X The a higher rate as which which believe our sufficient expense on on business, capacity down reported position additional sustainable quarter technology lower stated ended ABL an our The a expect of made we bad full X.X% under no in continue recorded are to related was new long-term the of rate improvements put quarter both the Based decline into down for the to XX% and we're amounts repaid amounts use. was we We from of the and credit. single And outstanding also drawn to across profitability, million, And decline achieve as and expected. to completed net XX%. carrying quarter. debt, effective reported million in million to XX%, high than achieve we Intellify to we as to the borrowings that debt September with approximately drive year. in be of rate see $X we effective we year be programs entirely a majority productivity was sequentially. the Income expense grow interest the coming on depreciation during finally, expense effective was costs we throughout outstanding average tax those Though as expense of ensure was towards the and our which for the interest ABL tax anticipate which we $X continues XX%, amortization, XX. now we expense, to prior representing tax nearly income of Also margins sequentially

of resulted of in our $X.XX, performance overall midpoint share near guidance. Our the earnings adjusted per

XX% XX% the Turning million, to $XXX the and year. Allied segments. sequentially and down reported Nurse revenue of from prior

hours were for Allied, down and billable X% was XX% Our from Travel while XX%. sequentially down travel prior rates largest XX% business, were sequentially, and the Fill year. down Nurse

by expect travel with respectively. volumes decline rates sequentially down Intellify quarter, demand Looking the sequential in to the is low mid-single travel be high the new hours and double-digit to seasonal continued orders growth anticipated range, billable as ramp and in possibility and programs in could in digits, our delayed current the driven capacity, are needs. received. across The fourth to decline the we With remains the to softness see we that seasonal single quarter overall

to both down the per and the sequentially prior the majority Our approximately demand over business diem from and feel about continues billable staffing year. in care segment, Education Nurse within softness quarter Also businesses growth. a XX% XX% from X% impact were reduction the prior from Allied year. as or prior the and rates comes year-over-year our with hours local down of revenue reported The decline home and the in from the

Staffing revenue, quarter which growth. summer Our is fourth double-digit education And prior was again poised reporting to up $XX strong over higher XX% performance, business, impacted Physician delivered to by year. which see in once robust was a break, the the returning finally, million

Excluding from per revenue Mint relative the Â– continue business as focus Average advanced year, Lotus lower day practices. growth continue on was filled specialties growth rate and the to sorry, across higher specialties specialties the and XX%. to experience impact within completed softer acquisitions the improve stronger up bill to rate we last locum

debt. million in to with cash Turning balance sheet. the We and no quarter outstanding ended the $XX

well well a $XXX as EBITDA. further With From adjusted generated since $XXX operations, basis, by Driving was performance remain of was days technology in year. X from collections in represented on strong balance cash this the generated sheet XX and and a cash under in repurchasing normalize.DSO performance we On the XXX% the continues continue strong strongest a third X-month cash operations a health our as conversion in million the of we to down in we start our which perspective, quarter, business days, year-to-date period. make flow, positioned $XX million as to cash shares investments acquisitions to from plan. our the share million flow repurchase far

below the to is towards XX Our performance, continue that line and historic DSO coming days, in make with that can to which bring more we believe progress quarters. our goal we remains in

and We're we As I paid decline and an to our of activity reflecting our a rates between collecting receivables sequential opportunity of and hours $XXX between of at midpoint was From remains mentioned, XXX,XXX investing outlook used revenue guiding We're million of technology in this financing improvement. $X me ABL the representing further X% job activity perspective, X% we've EBITDA and driven adjusted repurchased and to in XX%, representing the a to billable shares. million, guiding the a decline million, both predominantly range additional Cash approximately on for guidance. an of good $XX done $XX initiatives. $XXX our expected $XX for on million, for margin to brings million investments quarter. travel. fourth adjusted And by million in believe the down an EBITDA

previously, margin margins. quarter XX.X EBITDA an between per a adjusted and to million, million XX%, Also would shares. assumed our for XX.X% business maintain can count to $XXX,XXX, longer-term mentioned share of gross based between the guidance $X line earnings and believe a open for single-digit expense amortization Adjusted stock-based tax success, $X.XX achieve managing in John is not expected we $X.XX questions. remarks, that compensation depreciation now and As share to that single the be and to is high on and we're rate we continue of like and $X And average of of XX%. this Operator? of million interest prepared and of concludes an effective

Operator

is question first with our Brian Jefferies. And from Instructions] [Operator Tanquilut

Brian Tanquilut

guess I How at just dynamics maybe weighing looking seeing fundamental versus past of forward? seasonality staffing. question, in about demand contract for it as QX QX. core thinking think about nurse the and those you're you Maybe my what are I first demand that and even the going just

John Martins

Brian, you is John. evening this as well. Good to

So in fourth the the quarter. looking demand what we're at

we never back we saw much And think really Then tick X% at we of winter that in up demand start April. all demand today XX% the demand low we're I sit April the materialized. we low beginning of we'll about to when about where up from larger of where volumes from the in anticipating this August.Now, we saw year. of were April were up hit

staff. And so -- the are needs core up are of XX% majority from April we the now, non-winter orders the overwhelming that majority have or

to And orders orders of these moving we stabilized it's winter be are continue at bit stable than And winter in will little tick we more X% right that the market may forward. have little numbers in the in so have. currently while demand And has of numbers, orders the really a maybe not moving And forward. a of this the these we feel in mix in point, again, that be that down now. orders there

Brian Tanquilut

XXXX? about for, had to today. maybe think be as as about be previously think we thinking ability we comments should how as maybe, the sustained double-digit And XXXX. about as think about commentary How margin terms in you of about stated factors I that model think to what modeling just make And margin goals obviously I drive then of levels, should kind we there up not your Bill, you can any you for

William Burns

Yes. to Sure, you. Good evening Brian.

down. bill have third pay function of the orders you heavy they've we So where see bit also not That's hood, pretty stubbornly remain There's a at like.But to start the for you the be than the we're the clinicians. down, compressed when bill our look a where It's that that lower at under the have still of anticipated order open stabilized spreads lot generate on competition the pay the are would the the of performance, mix I to quarter. and still think than in when of sending more bit them were high, coming look we'd kind still things. costs seem a few really, to rates rates, of quarter's it's though bill like housing margins we'd a rates candidates, come it's a a

little a spreads. there's into the of going that bit So pay-bill

quarter, an a things A The was we that went health uptick really doctor insurance. to little more and what the anticipated. bit impacted few other people in of the had

also some forward to bit workers' to. actuarial And were comp. So we than our we then adjustments rose had looking health more costs a

basis of So big point decline saw sequentially. XX we the drivers those the kind were to the X

And bounce into to QX. so back not we're modeling going that

spreads XXXX, that improve. there payable through some could move think we is opportunity As I

right the Well, expected as on. you then programs. so mix trajectory were about drives neutral is Home locums Intellify, quarter times, beyond say, can margins? grow grow you to spend the the the from continues okay, the that well, they what move we talked more continues obviously, high we management think vendor this under And numerous and else businesses I the but to Care to back of for fourth the going Education, growth double-digit grow,

the You not have got spend, that portion you the capture also then to the attracted on that but capturing. are fees you're

is million We're probably actively $XXX in if had it's QX just go that. in it hopefully, the excited point forward or QX account. does, early live in biggest win, about moving time, really implementation, our but we That So at won't late Q. account this until,

handful, handful delay opportunity. And So that the accounts say but third-party of there's they I still on we've then few, had. implementing we've wins of a we've some tech that we relatively new of converted. think other another are the been that's that just And are to larger when kind not ones have have had busy I of that a because kind

we talked to into another migrate Intellify, always how would can across we pull. programs prioritize of realistically, real at we well. become off. internally you beyond new little we've we old do And before as of how as start effort So there's looking more the we efficient said do about a mix, tell wins can a new improve I Intellify that's the us a as organization. year. levers go we've to for But I about, we we There's talked concerted opportunity Again, organization, bit kind think at to you this move an look SG&A. productivity But beyond as the lot

We have. that certainly have more India we than excellence good of nice very leverage we a center can a -- in

is few a that with here idea today. much have there The do hundred We we there's group. people can more

that. So we're looking at

we've on That going I some efficiencies long-term and systems got a live well.Because got think been XXXX. is that back-office ramping that and That the and throughout middle that will unfortunately, middle will Oracle office our office different today, then platforms. drive be also project lot we've doing. into XXXX systems the of as we've

that payroll done different platforms. collections, means So apps, billing, are all through cash

platform, one to John, migrate anything efficiencies there? throw we'll more So as common But in to as want we you well. have kind of

John Martins

more, allows some recruitment also and in and self-service create efficiencies we're investments on as the Well, well. our the yes, a production experience side I and technology we're and as will very system -- clinicians would that Intellify our integrated just and with add and more have that creating we to making an

Operator

question is of Kevin Fischbeck America. with from Bank next Our

Kevin Fischbeck

it revenue in talked which straight about in that But you've on spreads follow-up that to a -- as look pressure. lot me a straight sequential a pay just quarters you had like Maybe because since obviously does a QX, bill sequential are of looks guys it you've of the in of revenue, percentage peaked also increases over quarters time. the revenue SG&A but declines X X had of quarter,

it dollars of So margin a has that although been you've out. like taking G&A great most compression actually job feels the done on side.And

is trending fast So down is not revenue the dollar down number certainly as drop. a percentage coming to of relative the revenue enough

sustainably? that work to G&A do revenue $X.X you run get billion kind number Where that I billion, rate like you exactly rates out? make of about total happens? Where So there you drop, or And to where range. biggest like, going does margin if about in all is If that if is how mean, the the single-digit the a forward? do deleveraging have bill high be think how $X.X think revenue opportunity that is

William Burns

things. Well, Sure. Kevin, is couple of Bill. this A

SG&A First, you're been a more of issue right, a a percent the It's more it's anything function but ticked the come of than rate up. as down, revenues else. revenue has

with the so count those you the And clinicians, still that. body you're clinicians, have still staffing associated

from et that recruitment the responsible management to cetera. are account everything for So to folks onboarding,

it and remained to Barring opportunities XX%, the and find drive the that per easily the to see SG&A revenue at on to to compression XX%. we've that could down. of that looking the bill the continue anything have are having the simply else, So rate of X%, that'd that declining had number margin you going do ahead, is issue you up because put you think to squeeze seen.But we I it, if average wind FTE yes, be

right basis XXX be we'd we to. mark to ultimately where now of for get want that So off points

all cost we're XXXX. question XX% -- of So So to but fair Brian. where lining of I been last perspective the approach. after year, the been a very what taken will say would a focused go to that not have on projects. that's move very I a there, say, we actions. of the get understand, consulting We've further up We've the There's amount and of out targeted fees broad professional a it's as has to a right? since tied start on from into sort headcount taken reduce, doesn't really with still it in to and still we spending. we important from investments expense capitalized. IT We've we're lot

that's million still running through a probably got from $X.X And that's haven't north That's in million. other in growth. $X then of there. over down we third-party spend, scaled that there the as for And areas It's so you've well because quarter from just we in expense projects. maybe just operating believe them opportunities

And education, at about talked business than not and heavier we still to are the so home invested care we're say full way. capacity staffing -- physician it another

Kevin Fischbeck

winter be orders. Okay. X% the Great. were That's of point that normally helpful. at Where year? I guess, as of you would the orders said talked think kind you about the in demand, this I

John Martins

north is, because October you of somewhere through getting February happens start the from It all the probably XX%, winter the starts is or XX% those But January, them needs. then happening be the what way XX%. orders Kevin, we'll difference winter of the be and for would XX%, needs fill

also rates So pay rates lot we stagnant with the commensurate X% of prepared mentioned is the that the about at would seeing, in of of the aren't that remarks, more expecting. nurses X%.As the them, a XX% the are we're a orders bill

beyond beyond what what are they And increase the the are orders. And they hospitals the is on the so need demand, happens is we bill return until seeing we're don't supply. waiting what then quick rate of to see some to attract

as not orders. we're many seeing what so And is

X% but orders combination They XX% start yes, or of to September, and a them of, booking those about in in XX% those August, So July, come probably winter fast. orders and it's it's turn October. XX% orders, we or

and We makes taking sense. that haven't seeing little seen a they're if book, to X% We're around that. longer

Kevin Fischbeck

as a QX rates is here run of I then say far moving it's is still aren't for next about guess, number a like like of good as starting the rate? still bill guess in be as And a and year, year. looks base you may and target I about anything where is Or good giving as you to next again, else there do to think may what where not like but kind like, kind far hey, start like, a think kind feel here, point QX as demand Anything of you you why guys that or go? guidance

William Burns

Yes, weigh start sure I'm I'll Kevin, will John this, Bill again. on and it's in.

it's order decline year. XXXX. rates look half a the the for into rates on lot at there's quarter we implied we context, stability next open go of the there's and there's look when bill put probably a think stability and bill X about travel or months single-digit we're in the the There's in a last and on lot what's to X at.From do guidance, to just I you as and fourth in the the at we're the locking that the as sequential of rates, you first another low in of jumping that locking to rates travel And look both you talked tailwinds. point rates, at If headwinds good off

Then had. to really there. ramp the we've had really from bit programs want there? a becomes anything the wins other it fast wins the a headwind that John, start VMS and you how So MSP little in to you But throw of

John Martins

you think it, covered Bill. I

everything. think puts there's and I takes to

more has locums MSPs.So as things capture are things one by we're of true ahead because the this we bill that had first in deal a Intellify are we're Obviously, and we in that our good wins to MSPs we health of we looking where right truly our with in MSP existing DAS, implementing transparency our or an cross a schedule. also won our give $XXX business. of investing getting of Locum's And at addition, just XX% we're Intellify our one million that is XX% in that but the invest X on. home never lot sold then done technology to will the now services overhead, of Winning did what we're that Bill we technology. win first, year, also with momentum opportunity technology MSPs, to continue encouraged mentioned, data our then to staffing us side. very current rate X those catching what is, the believe, which X had that's And think with also aggregation I is in the we for Intellify, industry

So is in hand with that marketing we're technology. investing great in technology And in out goes we get sales believe, hand. this the course, it And then industry investing really, changing. that because of all we word investing that have of comes in to

do that will anything to believe continue have we in XXXX. So want -- some and have for us will areas, to you those we in upside Dan, invest to that? add

Dan White

quarter. Sure. going was last sales was Kevin, is even it at have is And think one I look than funnel our should this Dan. we bigger XX% this also just biggest quarter we into last quarter ever the had.

selective. continues a options We being is that's be have. So strong.One things lot I'm them we than really give us seeing more really, are more the ahead that of customers of historically opportunity way to the that

only themselves. VMS, it and some take where looking MSP technology but not they the self-managed So manage customers programs just or at are

So lots our that then That core basis. interest our provide in quarter us around allows staff manage in their app, see those them can we a first own IRP Experience, has area of last biggest to add we technology. help contingent going. the augmented staff been mobile on opportunity using Probably of and the

point in that's I a value And so my we're of have. what's we begin whole ever view, really than think to to rate. going starting our into more workforce from difference win to make the And really add

Operator

is Blair. Romeo William Trevor with next from Our question

Trevor Romeo

seeing to move traveling? wanted nurses just kind or pretty the side. either of of for into turnover. are successful travel terms willingness to continue hospitals It guess, in roles ask been reducing you like First, what supply I on in have seems

of assignments, Just maybe what nurses kind now given you're curious less fatigue travel who with but rates. did maybe pay have decrease to in travel seeing incentive travel extent the

John Martins

Trevor, John. this is

look think, at look I at I the of at the BLS the JOLTS X.XX. was, you I it's I numbers, numbers and hires. really openings the think you to JOLTS, macro X.XX%, seeing And macro it think if at looking and really we're that's, think, looking at when data the what

going still still X.X% from are X.XX% for and I think seeing having is nurses declined what August.I hospitals is down openings not even more to hard that declined from think is hires time that there down a adjusted while have a think -- you shortage have even of away. I And bit, they though openings. we're little a systemic hiring the nurses than

happen labor staff. bit nurses to of seeing hard hire did now. where disruptions the it's pay We quite core increases we're have to a So

in what care said pay when have as the little a of But we've So are. that travel may really look percentage Allied, rates travel Travel nurse particular, we're base you the at labor contingency number health the in a and slowed down. in just or before,

clinicians, they certain have to hospitals attract bring a will have compensation out when a need package pay that that clinicians. rate enough will So to attract

is for about the our -- not rates half the truly seeing as seeing and as mentioned, we're of at of are clinicians. what we're clinicians, that fillable orders So we expectations are pay

and As want there's of I these hospitals billings those that going opportunity fill the rates them that have these see open to more for fillable. increase orders imagine lower are we're to utilize bill the start open to to would to orders,

of travel And nurses question, to seeing answer not right a we're so lot nurse now. your leave

also now, amount I as think But stabilization the ago, saw and and one of we one clinician of assignment contract. rates, us. stabilization other in a I the we then have, that industry is market thing bunch months which a those with permanent actually, still. was the the stabilization seen bill maybe nurses rates an add would of travelers things open And ago months X us go our we've within who another creates to the the we how rates, changing, a on that's track of we with with orders the has right market are renewal of saw the of and assignment travel keeping pay X takes

rates percentage that months, renewal high. or and several would highs the last our steady for are has very have been at been Our historically -- historic is at much pretty

Trevor Romeo

Are on boost that to you about the some potential protection? to new orders? contracts, Okay. That's downside rate helpful. you And for MSP seeing capture And down think step has lately, supply opportunities provide trending been capture that rate retaining balancing in your how with kind how then do orders? of your given

John Martins

Sure.

we're capture somewhere capture very and XX% we're it. very market. rate, about and our we So averaged rate, XX% careful we're between that right calculated and about in Historically, strategic and

with us of them strong we that win them we -- have we're new and end at gives couple orders. of us network we XX% are orders and that opportunities have the close And to I that MSPs. excess supply fill have last fill is them Because partner truly and we with network is out suppliers the a could more that were supply supplier to giving our supplier have, of we sure to have can in partnering MSPs the Country, to those last day, Cross we part opportunity we months. quarters have the of XX% make current and help the at but it our then the go couple of think opportunities that don't.One or suppliers, unique to a

Operator

question next Truist with is Tobey from Securities. Sommer Our

Tobey Sommer

still comment of kind high What in you would And Or make that? to a to sure achievable. of comments comment I your is is that revenue XX%? I gross that do single-digit EBITDA yield applicable margin understood wanted assume sort of margin that vision? sort longer-term about and that

William Burns

Bill. it's Tobey,

So mean wouldn't I of a it's number. not XQ a out say it's -- vision, I a it's longer-term certainly I kind but guess

that, I be things. of mix top think helpful, bit massive Obviously, margin whether handful little way from growth. in a bill do counting that's one those of et of not I a more we're want organic cetera.So significant Intellify We improvement spreads wins, line there's on or to the bit any a gross but would pay little or that on improved other. think there's than of see a

I approach answer. that getting of to think it's about a multifaceted

I about about SG&A think We've all we've of talked growing got and above. the our margins. more getting efficient. talked We to do tightening

more one that to So than to going there important isn't is I'm say that's another. point going really answer to

all. we've got it think I to do

Tobey Sommer

Okay. makes That sense.

going you're away. sort pay quarters So of if sort a bill of we're and for and market spread not Right? away, be quarter could margin single-digit compression -- to balance the just and single defending have to going high Then share. the profitability potentially outlook

William Burns

the about $XXX to of possibility the as I one mean on just it we So into the really larger if it how add million business if potential depends early like program, programs move the that about, how right? again, a a a in performs has we the 'XX, ramps, there, annually having vendor talked broad right million with profitability right? And that bottom thinking $XX stroke dollars from quarter couple that's the works million of kind of live. program and go just neutral.So line, that the a just of

got you've opportunity. So that

bring laser-focused That's how looking our what When manual a this the place automate to we right think more getting further. processes or at got bring look a take I them company-wide right? them them do. we possible, we and are we're I initiative do opportunity of on said where to SG&A down to lowest We've cost earlier, to now. the

it's far But into not X%. happens. future. Maybe say think get the to I'm 'XX to to out wouldn't go there for I to us when it and going So as possible put I 'XX. it's full back certainly within the certainly in far, I exactly out mean, not year, quarter a see but

John Martins

And things means margin digits. we're manage I that that is the be the to market single don't year.But EBITDA, XXXX, months we've down in capture some be done as gross position last happens what marketing, to market that next the business. Tobey, mentioned, we're just to the investing believe that's is Â– we've or enough we'll number XXXX. which that we where make get high that to the on And looking the means into -- this is we've what We as to as we at we're flex kept rebounds and capture want upside. we in upside what that we've would And to going that X over of really X also and we and John. reduced to the a of course, the we add, in over SG&A the sure to as workforce the couldn't to months, the in technology And look low to Bill want that. go so by done, managing as being sales XX% how can of market we we that continue depending up

Tobey Sommer

the they you What G&A intertwined? feeling of competitive profit on percentage goals? I need the guess to dynamic on pressures their gross and of feeling spread, enough try to hit cover are sort share like there is margin pay to as revenue and probably and others of have sort margin kind own the thing same bill and Could top their comment all to market and are for share take

John Martins

they a demand Tobey, if a reasonable add bring this is also, a John again. in to But and definitely where we usually from any pressure supply But I'll to go they one-off enough low. COVID. aren't right, margins there's start on more drop retain that very of you go and amount you could course, there add. profitability.And drop, your we still won't there's only happens drop, what right? has low. able have -- Bill always So were when very think there can as But amount on some competitors there's out saw more be I he only will reasonable color is

what And done be to I But that the clients Allied of job able pressure on while XXXX. really seeing needs, in a managing think we to still fairly margin I'm and market. in meet there our MSP so fill compared good think in we as enter relatively still and that hold margin there'll well Nurse being we've out our our

William Burns

go at that what certainly down, like I really you would seem what by it's pay bandwagon.At are of are kind add, just they're in. we're ourselves. think doesn't in benchmark would I that to excessive well, we're And of say, take competitive to but who market, I time, would it packages it to John's advertised this and at there point, it's are had to like point point? I we're there a it look and in sustainable, competitors and pay would market it nationwide, say, to getting that Tobey, on offer are we market say share. not, lot margins packages every look jumping that we not And driving we looking out

for Because that They're So they're is that us a that doing little the all it it can I very, gotten more really handful a general, but as have industry-wide. see how pay it's little harder bit a few. in packages side bit increasing prevalent this makes we well. very the don't there's know on aggressive

So I you as think side, candidate it's a the know. looking when highly market you're competitive at

we to overall So can margin. manage we're what doing our gross

Tobey Sommer

include bigger Last or labor question it what is disruption on over for fourth included me that And smaller so, does if quarter I could. average revenue? any In if guidance, the kind of quarter in be your would time? than average

William Burns

can, be it's we mean, number but not when -- meaning our material, a we going material to honest that you. it's to not them support to really I quarter. be with not It's

Operator

is Steinke with Research. Barrington question from next Kevin Our

Kevin Steinke

X wins think that as those should for the On mentioned, takeaways? you Intellify of competitive we

John Martins

space. new Those not XXX%. or are but green are space competitive Yes. takeaways, new those

Kevin Steinke

Okay. Great.

the continues well resonate So I marketplace. the ahead you offering you're that is to takeaway and in schedule that, guess a little the mentioned from of

John Martins

Yes, very well.

was data of the from the time the dashboards how get had testimonials built giving the put they're I the and conference, their that the right it what them Chicago attending to Kevin, interesting, ANCC analytics, they into phone their are in insights, how the able always was they're out real in on the the actually order we impact weeks reporting ago. current an matter a is in helped has in putting actually right are it.And about need up As our the about who they when And VMS actually and fact, with at with impressed there, dashboard within Magnet to of feedback when the our be dashboard. them a a helping our reporting, clients just most order made big couple Conference technology and organizations truly coming Intellify from

saying, clients, were coming my have we vendor. I just looking other feedback near at technology feedback. is got so And wow, current with And what great and the were and nowhere up from our they prospective this

almost And word sales there, what we the of remarks a in try we already which so to it's of investing so one technology. we're starting our with on it, offerings down than and know we're of out in marketing us, out, next by different no about done with out we've that. market. the in services. how our bit technology. to coded And put like we've people the getting very technology. doubling this encouraged one why what's try a imitate That's because with lot our generation talked but aggregation It's are and come much the algorithms, was And proprietary duplicate very that's we've People to build we and our our compete data prepared we little about there as can talked

transparent what As I mentioned first rate the earlier, the it is we bill technology, truly believe in industry.

Dan White

Dan. Kevin, this is

add a too. little think bit, I I'd like to

Just for period systems on market of or their as health a prolonged we've MSP a I was VMS but to about time their reminder, programs. when it talked calls, were previous out going know there not

customers our more. and that made pipeline.Another sales seen we've also anytime of don't about slowing And about I are this as buying activity, our see to the tons evidenced existing you soon remarks for I think is by way so

by a customers. service technology. of had lot so increase And in enabled this that we quarter-over-quarter, those just a to And XX% is same add-ons

these adding faster the see And So in happen they so because out their the things much as earlier with they locums, a leadership adding or impact start can all the transparency. John telling it other way so delights interim and or customers pointed faster, or much RPO then friends.

opportunity lose. -- time have is with we'll the abundant this more done, In amount than I win this we an is this think activity. So of by my opinion, we

Operator

question last Benchmark from Bill Sutherland Company. is with the Our

William Sutherland

what- you I wanted a out I the to could, clarify kind rates, of to that on Bill, And you're I the get rate. I think you wanted that year. that's of guess a in looking headwind clarification, something bit said on about said, could if I locked-in a be just next

William Burns

to worries. Good No you. Yes. evening

news, trajectory. at that about downward rates, are moving X% longer clinician we are the locking, and consider down good up we're have portfolio. I have you That's can like open And which market at the or lock bedside. we've Both think get we're said, clearing if which and significant.But The the which seen to continuing stability rate the the rate we down what in So we I rate, a the rate X%, still open right? that overall rate of sideways blending order the or no both. nothing kind order

the look point bill from handful so we've many that months you'll first we average points, So X, fourth percentage a what quarter closer. to on rates. locking be is bill much, The quarter rate out we're rate it's anything when you where points fourth been quarter my at. at getting for this could will look now. that -- much And happening the close in for very the The see quarter, the at to was expect because blend just of to to X else sans fourth be like what locking

all just down seeing to lock rates about that was. So that's It's in averaging we're current portfolio really the market. the the

William Sutherland

the how terms like next got But going you've you sense the numbers rate, you you're then in quarter of that's can feeling clarify just fill to on And quarter? in that have a of -- the what just tons trend in to about orders. do of

William Burns

along seen relative with stability in as well. production bill stability, mean, I we've rate our

what book. in lease week-over-week, we of call look is terms net you when So

go look revenue. the adding As of at we to we week, each see level, how are go to through we recruiter backlog a much we

so well. seen stability And that's some kind as of

seeing if order orders. start more to bit, would more what were if the open see a we think increase.And I before, increase think would and would likely we bill to we rate I fill it's able see to been key mean increase. or would to a were is rates this little we see And to a a I the asked rise but the bill volume uptick, average be an rate volume increase, we've of

be to that's volume rate, inches swing comes that it wild for we to start to us It to we're that more. bill could fill a see close order closer market what doesn't what towards, just the down rate It's need if growth. open average the So seeing it. to to start really

So color don't know if Marc, I on any that? have you

Marc Krug

X productivity that No. at But better I and out quarters has for part now. think recruiter consistent it's the same interesting been the our to level of point

bill orders volume forward. that seeing the terms That's market though encouraging in productivity. even So a it's been below are why rate, there's rate pressure of perspective we're and same moving

William Sutherland

That's Okay. good.

So trough said all with a XQ is and maybe is it's that, and puts but we've XQ thinking XQ, starting about not the good feels like as necessarily it? the kind someone think of think takes to and point, as been that sort I'm think about thinking it that that a to what baseline? a it's I about of Is best -- way

William Burns

so. I Yes, think

assumptions have bill off. But last the that year. in have move through fact the point move stabilization you'll about of XXXX. fairly starting we that, up reasons starts It think good new into like will a off course. leveled and that and as to over to we're rates orders the ticked actually getting feels talked we remained the all of have of of as feel talked look puts for like have into couple and And stable market, grow quarters, we takes you to layer it I about. that, like The you that's to point

William Sutherland

debt, if significant Is there that curious that the just for is -- way. something in model there about on cross-country monetization

John Martins

want nonclient pay transparency what that And DAS and rate could clients medium we then what? the that area. we understanding is industry can does rates, transparency is over market they the level. is transparency directly and can about choose a this that brought bill rationalize of just like types X select high at with monetize X this attract different X, sure is to rate the And that Really it from national of rate it. show can doing low, part what to in then years.And is the they type feel regional, there what sure just the make they costs it is industry We the Â– their what in what's are. attract the last And and how ours. by obviously -- clinician that so -- local, to rates them can going idea to look they they You to shows where is know -- of of we make clients a hospital ranges sell there's to ways the

way that's of directly. them we conversations bars one with rationalize one #X, It we embed Intellify it embed then And and it Intellify so can be them really save that into a to can to by be separate to would Intellify selling DAS -- way monetize it's can can as Intellify. into we monetized embed we monetize having we that is as also is show also embedded and can product But when in. that it into from help allows but money. it how also nonclients we these start us And embedded

William Sutherland

dollars Intellify, on what's that X you've total? wins aggregate Last The one had me. the in for in

John Martins

the get the actual them, going through haven't spend we'll yet implementing greater $XXX actual we're that's we're because and even to the out numbers We dollars see the given actually than there. as million, through one as

as because we especially that implementing give -- now, total X future letting before now, we're these numbers right X in So will the give dollar. in we calls. But that, we're right first come

Operator

I'll closing conclude back Q&A remarks. now Martins this turn Ladies over does period. John and to gentlemen, the it for

John Martins

call you, and thank February. to the In participating on in operator. on next to look I'd you progress in closing, for the like company today's updating we forward of the call, Thank everyone

Operator

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

disconnect. now may You

Cross Country Healthcare (CCRN) 1 Nov 232023 Q3 Earnings call transcript