Dameris concluded, “We recently kicked off a process to develop a five-year strategic plan for the company. We have engaged the Parthenon Group to assist us in this process and expect to review key aspects of our strategic plan with our shareholders and employees in the second half of the year.”
Sale of Nurse Travel Division
On February 12, 2013, the Company completed the sale of its Nurse Travel Division for $31.0 million. The Company has agreed to provide certain back office services during a transitional period. This division accounted for 4.1 percent of pro forma 2012 revenues and 3.4 percent of pro forma 2012 gross profit and will be reported as discontinued operations in the Form 10-Q covering the first quarter of 2013.
Fourth Quarter 2012 Results
Revenues were $401.7 million, up 148 percent year-over-year and 3.4 percent on a sequential basis. Excluding Nurse Travel, revenues were $380.4 million, up 157 percent year-over-year and 1.6 percent sequentially. Apex Systems, which was acquired on May 15, 2012, accounted for $207.6 million, or 51.7 percent, of total revenues for the quarter. The Company’s other segments reported combined year-over-year revenue growth of 20.0 percent (16.8 percent without Nurse Travel).
Gross profit was $121.3 million, up 126 percent year-over-year and 1.9 percent sequentially. Excluding Nurse Travel, gross profit was $115.6 million, up 131 percent year-over-year and flat sequentially. The year-over-year growth was primarily due to the inclusion of Apex Systems, which accounted for $56.8 million, or 46.8 percent, of total gross profit and the year-over-year revenue growth of the other business segments. Gross margin was 30.2 percent compared with 33.1 percent for the fourth quarter of 2011. The year-over-year compression in gross margin was attributable to the inclusion of Apex Systems, which has a lower gross margin than the Company’s other business segments. Excluding Apex Systems, the combined gross margin for the other business segments was 33.2 percent, up slightly from the 33.1 percent in the fourth quarter of 2011.