CCRN - Cross Country Healthcare Inc. (CCRN) Q2 2024 Earnings Call Transcript

2024-07-31 22:21:09 ET

Cross Country Healthcare, Inc. (CCRN)

Q2 2024 Earnings Conference Call

July 31, 2024, 05:00 PM ET

Company Participants

Joshua Vogel - VP of IR

John Martins - President and CEO

Bill Burns - CFO

Marc Krug - Group President of Delivery

Conference Call Participants

Kevin Fischbeck - Bank of America

Trevor Romeo - William Blair

Brian Tanquilut - Jefferies

A.J. Rice - UBS

Bill Sutherland - The Benchmark Company

Tobey Sommer - Truist

Constantine Davides - JMP

Kevin Steinke - Barrington Research

Presentation

Operator

Good afternoon, everyone. Welcome to Cross Country Healthcare's Earnings Conference Call for the Second Quarter 2024. 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.

I would now like to turn the call over to Josh Vogel, Cross Country Healthcare's Vice President of Investor Relations. Thank you, and please go ahead, sir.

Joshua Vogel

Thank you and good afternoon, everyone. I'm joined today by our President and Chief Executive Officer, John Martins; as well as Bill Burns, our Chief Financial Officer; and Marc Krug, Group President of Delivery. Today's call will include a discussion of our financial results for the second quarter of 2024 as well as our outlook for the third quarter. A copy of our earnings press release is available on our website at crosscountry.com.

Please note that certain statements made on this call may constitute forward-looking statements. These statements reflect the company's beliefs based upon information currently available to it. As noted in our press release, forward-looking statements can vary materially from actual results and are subject to known and unknown risks, uncertainties and other factors, including those contained in the company's 2023 annual report on Form 10-K and quarterly reports on Form 10-Q, as well as in other filings with the SEC. The company does not intend to update guidance or any of its forward-looking statements prior to the next earnings release.

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

With that, I would now like to turn the call over to our Chief Executive Officer, John Martins.

John Martins

Thanks, Josh, and thank you, everyone, for joining us this afternoon.

As you can see in today's press release, our second quarter 2024 revenue and adjusted EBITDA were near the high end of our guidance ranges, reflecting our continued ability to execute in what remains a challenging environment for core Nurse and Allied. Specific to travel, we have started to see some positive signs in the market. After troughing at the end of the first quarter, travel demand has been steadily rising in the last couple of months and today, it is up more than 20% relative to the start of the second quarter.

This increase in orders has been fueled in part by a bounce-back in the market as well as the impact from recent MSP wins that are starting to ramp. As a result, we are also starting to see weekly production improve and though that will have a minimal impact on our third quarter, we believe that we are nearing an inflection point to begin re-growing our professionals on assignment as we enter the fourth quarter....

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