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Staffing firm Cross Country Healthcare reports Q4 loss


By Rachel Landen
Posted: March 6, 2014 - 3:00 pm ET
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Boca Raton, Fla., staffing firm Cross Country Healthcare suffered some setbacks during the fourth quarter, despite an expansion of its geographic footprint with the December acquisition of On Assignment's allied healthcare division.

Cross Country reported revenue of $109.2 million for the three months ended Dec. 31, 2013, down 2% from $111.7 million in the year-ago quarter. That decline was due to a less robust demand environment in the company's physician staffing and search businesses, Chief Financial Officer Emil Hensel told investors and analysts during a Thursday call.

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Cross Country also netted a higher loss for the period, reporting a $35.2 million net loss for the fourth quarter of 2013, compared to a $9.5 million net loss for the year-ago fourth quarter. That was partially due to higher provider fees and expenses in the staffing business, Hensel said. Lower housing and field insurance costs helped offset increased expenses.

Revenue from physician staffing declined 6% from the same quarter in 2012, and revenue from other human capital management services was down 11% from the fourth quarter of 2012. Revenue from the nurse and allied staffing business segment was up, but only by 1 percentage point.

Impairment charges related to trade names and goodwill, as well as a valuation allowance related to deferred tax assets, affected the company's bottom line. So did acquisition costs tied to Cross Country's $28.7 million purchase of the operating assets of On Assignment's allied healthcare staffing division.

But President and CEO William Grubbs expressed optimism looking ahead to 2014 results, thanks in part to the accretive potential of the On Assignment acquisition.

“We exited 2013 with positive momentum in our two largest segments: nurse and allied staffing and physician staffing. I am excited about our prospects in 2014 and going forward,” Grubbs said in a release.

Follow Rachel Landen on Twitter: @MHrlanden


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