Cross Country Healthcare, Inc. (Nasdaq: CCRN) today reported revenue of $126.3 million in the second quarter ended June 30, 2012, essentially flat compared to both the prior year quarter and sequentially from the first quarter of 2012. The Company incurred a net loss in the second quarter of 2012 of $14.5 million, or $(0.47) per diluted share, which included a non-cash goodwill impairment charge of $12.0 million after-tax, or $(0.39) per diluted share. The goodwill impairment charge pertains entirely to the Company’s nurse and allied staffing business segment and results from the interim goodwill impairment test performed during the second quarter of 2012. Excluding the impairment charge, the adjusted net loss (a non-GAAP financial measure defined below) was $2.5 million, or $(0.08) per diluted share. In the same quarter of the prior year, the Company had revenue of $126.0 million and net income of $1.6 million, or $0.05 per diluted share. Cash flow from operations for the second quarter of 2012 was $2.4 million.
For the six months ended June 30, 2012, the Company generated revenue of $252.9 million and had a net loss of $15.1 million, or $(0.49) per diluted share. Excluding the impairment charge, the adjusted net loss for the first six months of 2012 was $3.1 million, or $(0.10) per diluted share. This compares to revenue of $248.1 million and net income of $1.8 million, or $0.06 per diluted share, in the first six months of the prior year. Cash flow from operations for the first six months of 2012 was $3.8 million.
“Second quarter revenue was below expectations due in large part to the delay of a scheduled, large electronic medical record (EMR) implementation project, which had been fully staffed by us. In addition, our earnings performance was below expectations because our cost structure was too high relative to our revenue and we experienced a larger than anticipated increase in direct costs in our nurse and allied staffing business,” said Joseph A. Boshart, President and Chief Executive Officer of Cross Country Healthcare, Inc. “Given our financial results, over the coming quarters we will be placing greater emphasis on bringing our cost structure into better alignment with our revenue and we will continue to press for higher bill rates to help offset some of the margin pressure we experienced relative to direct costs,” he added.
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