Tags: Cross | Country | Healthcare | CCRN

Cross Country Healthcare Seeks Turnaround

By    |   Wednesday, 14 March 2012 09:22 AM

A demographics opportunity is in sight for Cross Country Healthcare (CCRN), one of the country’s top healthcare staffing firms. Now it seeks a turnaround on the numbers.

So far the company hasn’t been able to generate strong profits, but demographics are on its side. Cross Country has about 4,200 contracts with hospitals and healthcare facilities, pharmaceutical biotechnology customers and other healthcare organizations

Nurses and allied staff account for 52 percent of the company’s revenue. Physician staffing accounts for 26 percent of revenue.

Clinical trial services, which include drug safety monitoring and regulatory consulting services to pharmaceutical and biotechnology customers, account for 13 percent of revenue. Education and training, as well as search services for physicians and healthcare executives, account for 9 percent of revenue.

As for demographics, aging baby boomers will provide plenty of demand for Cross Country’s nurses and doctors. Employers and staffing agencies posted more than 121,000 new job ads for registered nurses (RNs) in May, up 46 percent from a year earlier, according to Wanted Analytics.

Good and bad

In December 2009, the Bureau of Labor Statistics forecast that more than 581,500 new registered nurse positions would be created through 2018, increasing the RN pool by 22 percent.

Over the past three years, however, Cross Country has generated a negative annualized total return of 8.2 percent. Now it has a chance to do better.

Of eight analysts tracked by Thomson Reuters, seven rate Cross Country shares a hold and one a strong buy.

The company fourth quarter revenue gained 10 percent to $124.7 million and it posted full-year revenue of $504 million. Annual net income was $4.1 million, compared to a full-year loss of $2.8 million the year before.

Cross Country next reports earnings May 2.

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Wednesday, 14 March 2012 09:22 AM
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