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Associated Press
07-07-2025
- Business
- Associated Press
Employbridge Announces Leadership Transition
ATLANTA, July 07, 2025 (GLOBE NEWSWIRE) -- Employbridge, the largest industrial staffing company in the United States, today announced the appointment of William ('Bill') Grubbs, a member of the Employbridge Board of Directors, as Interim Chief Executive Officer, effective immediately. Grubbs succeeds Billy Milam, who served as CEO since 2021 and is transitioning to pursue other opportunities. To help ensure a smooth transition, Milam will serve as an advisor to Employbridge for a period of 60 days. Grubbs brings more than 35 years of experience leading and scaling staffing and workforce solutions businesses. Most recently, he served as President and CEO of Cross Country Healthcare, the third largest healthcare staffing firm in the U.S., and he previously held senior leadership positions at TrueBlue Inc., Volt, and SFN Group. Over the course of his career, Grubbs has consistently delivered profitable growth and value creation, with a particular emphasis on domestic workforce strategy, talent solutions, and operational excellence. He joined the Employbridge Board in April 2025 and will be working out of the company's headquarters in Atlanta. 'Bill is a seasoned operator with deep roots in the staffing industry and a strong understanding of our business, and we are pleased to have him step into the role of Interim CEO,' said Robert Kalsow-Ramos, Chairman of the Board. 'With decades of experience building resilient, scalable workforce businesses, Bill possesses a rare combination of operational rigor, industry expertise, and a people-first leadership approach that aligns closely with the company's mission and momentum. With Bill at the helm and the support of the talented Employbridge team, we are confident in a smooth transition and the continuation and acceleration of the company's strategy. I believe Employbridge will continue to deepen its role as a trusted partner to America's industrial supply chain and deliver on its commitment to helping people and organizations perform today and thrive tomorrow.' 'I'm thrilled to take on this role and work alongside the talented Employbridge team as we work to execute our strategy and strengthen our leadership position and partnerships across the industrial labor market,' said Grubbs. 'Employbridge plays a critical role in the lives of thousands of workers and clients every day – connecting people with meaningful work and helping businesses build scalable, productive, and compliant workforces. I intend to harness my experiences in workforce solutions to guide Employbridge as it continues advancing its technology and talent solutions to meet the evolving needs of the workforce.' 'On behalf of the Board and all of Employbridge, I would like to thank Billy for his contributions to the company,' added Kalsow-Ramos. 'In addition to leading pivotal digital and workforce advancement initiatives, Billy's tenure as CEO has been marked by a strong dedication to colleagues, talent, clients, and communities. We wish him all the best in his next chapter.' 'It has been a privilege to lead Employbridge during a time of meaningful growth and transformation,' said Milam. 'I'm grateful for the tremendous support from my Employbridge colleagues these last four years. Throughout our time together, I was constantly inspired by their grit, resilience, and willingness to go above and beyond to serve our clients, our talent, and one another. My role in supporting them will remain a highlight of my career. I firmly believe that the best is yet to come.' About Employbridge Employbridge is the largest industrial staffing firm in the United States. Combining the advantages of national scale and local expertise with the speed and efficiency of its Bluecrew digital platform, the company puts more than 440,000 talent to work annually across a network of approximately 300 offices in 48 states. In 2024, Employbridge served 17,000 customers across the supply chain ecosystem in manufacturing, logistics, transportation, and energy. In addition to authoring the largest survey of U.S. hourly workers for almost twenty years, The Voice of the American Workforce, Employbridge is helping close the country's skills gap by providing career training to 20,000 talent through its Bridge to Better program. Employbridge's family of brands includes ResourceMFG, ProLogistix, ProDrivers, Select, RemX, Remedy, Westaff, Decca, Hire Dynamics, and Bluecrew. Employbridge is majority-owned by certain investment funds managed directly or indirectly by affiliates of Apollo Global Management, Inc. Media Contact Kate Thompson / Catherine Simon Joele Frank, Wilkinson Brimmer Katcher [email protected] (212) 355-4449
Business Wire
07-05-2025
- Business
- Business Wire
Cross Country Healthcare Announces First Quarter 2025 Financial Results
BOCA RATON, Fla.--(BUSINESS WIRE)--Cross Country Healthcare, Inc. (the Company) (Nasdaq: CCRN) today announced financial results for its first quarter ended March 31, 2025. SELECTED FINANCIAL INFORMATION: Variance Variance Q1 2025 vs Q1 2025 vs Dollars are in thousands, except per share amounts Q1 2025 Q1 2024 Q4 2024 Revenue $ 293,408 (23 ) % (5 ) % Gross profit margin* 20.0 % (40 ) bps — bps Net loss attributable to common stockholders $ (490 ) (118 ) % 87 % Diluted EPS $ (0.02 ) $ (0.10 ) $ 0.10 Adjusted EBITDA* $ 8,619 (44 ) % (7 ) % Adjusted EBITDA margin* 2.9 % (110 ) bps (10 ) bps Adjusted EPS* $ 0.06 $ (0.13 ) $ 0.02 Cash flows provided by operations $ 5,681 (5 ) % (77 ) % * Represents amounts that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are referred to as non-GAAP measures. Please refer to the accompanying discussion below of how these non-GAAP financial measures are calculated and used under 'Non-GAAP Financial Measures' and the tables reconciling these measures to the closest GAAP measure. Expand First Quarter Business Highlights Homecare Staffing experienced double-digit sequential and year-over-year revenue growth Physician Staffing experienced year-over-year revenue growth Cross Country Education experienced double-digit sequential revenue growth Continued strong balance sheet with $81 million of cash on hand and no debt as of March 31, 2025 'Our first quarter results reflect solid execution with both Homecare and Physician Staffing business reporting solid year over year growth,' said John A. Martins, President and Chief Executive Officer of Cross Country Healthcare. He continued, 'As the market for core nurse and allied continues to stabilize, we remain focused on driving productivity across our business, leveraging our investments in AI automation as well as our cost-effective center of excellence in India to fuel efficiency and improved profitability. Looking ahead, we continue working with Aya Healthcare and the Federal Trade Commission towards the successful consummation of the merger transaction in the second half of this year.' Regarding the Company's pending acquisition by Aya Healthcare, Martins further commented, 'We recently learned of the passing of Alan Braynin, founder, former CEO & President of Aya Healthcare, and our hearts go out to his family, friends and to the thousands of Aya employees. Alan was a pioneer and transformational force in the healthcare staffing industry whose presence will be missed by many.' First quarter consolidated revenue was $293.4 million, a decrease of 23% year-over-year and 5% sequentially. Consolidated gross profit margin was 20.0%, down 40 basis points year-over-year and flat sequentially. Net loss attributable to common stockholders was $0.5 million, as compared to net income of $2.7 million in the prior year and a net loss of $3.8 million in the prior quarter. Diluted earnings per share (EPS) was a net loss of $0.02, as compared to net income of $0.08 in the prior year and a net loss of $0.12 in the prior quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $8.6 million, or 2.9% of revenue, as compared with $15.3 million, or 4.0% of revenue, in the prior year, and $9.3 million, or 3.0% of revenue, in the prior quarter. Adjusted EPS was $0.06, as compared to $0.19 in the prior year and $0.04 in the prior quarter. Quarterly Business Segment Highlights Nurse and Allied Staffing Revenue was $242.3 million, a decrease of 27% year-over-year and 6% sequentially. Contribution income was $17.2 million, as compared to $27.2 million in the prior year and $20.3 million in the prior quarter. Average field contract personnel on a full-time equivalent (FTE) basis was 7,411, as compared with 9,124 in the prior year and 7,621 in the prior quarter. Revenue per FTE per day was $360, as compared to $397 in the prior year and $363 in the prior quarter. Physician Staffing Revenue was $51.1 million, an increase of 9% year-over-year and a decrease of 4% sequentially. Contribution income was $4.0 million, as compared to $3.1 million in the prior year and $3.5 million in the prior quarter. Total days filled were 22,692, as compared with 23,785 in the prior year and 25,427 in the prior quarter. Revenue per day filled was $2,253, as compared with $1,976 in the prior year and $2,085 in the prior quarter. Cash Flow and Balance Sheet Highlights Net cash provided by operating activities for the three months ended March 31, 2025 was $5.7 million, as compared to $6.0 million for the three months ended March 31, 2024 and $24.2 million for the three months ended December 31, 2024. We experienced a 15-day year-over-year improvement in days' sales outstanding. During the first quarter of 2025, the Company did not repurchase any shares of its common stock. As of March 31, 2025, the Company had 32.5 million unrestricted shares outstanding and $40.5 million remaining for share repurchase. As of March 31, 2025, the Company had $80.7 million in cash and cash equivalents with no debt outstanding. There were no borrowings drawn under its revolving senior secured asset-based credit facility (ABL). As of March 31, 2025, borrowing base availability under the ABL was $148.4 million, with $133.5 million of availability net of $14.9 million of letters of credit. CONFERENCE CALL As previously disclosed, on December 3, 2024, the Company entered into a merger agreement with Aya Healthcare, Inc. and certain of its subsidiaries (Aya Merger, and such agreement, the Merger Agreement). In light of the pending transaction, the Company will not host an earnings conference call to review first quarter 2025 financial results, nor will it provide forward-looking guidance. This press release is also posted on the Company's website at ABOUT CROSS COUNTRY HEALTHCARE Cross Country Healthcare, Inc. is a market-leading, tech-enabled workforce solutions and advisory firm with 39 years of industry experience and insight. We help clients tackle complex labor-related challenges and achieve high-quality outcomes, while reducing complexity and improving visibility through data-driven insights. Copies of this and other press releases, information about the Company, as well as information about the Aya Merger, can be accessed online at Stockholders and prospective investors can also register to automatically receive the Company's press releases, filings with the Securities and Exchange Commission (SEC), and other notices by e-mail. NON-GAAP FINANCIAL MEASURES This press release and the accompanying financial statement tables reference non-GAAP financial measures, such as gross profit margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP. Such non-GAAP financial measures are provided for consistency and comparability to prior year results; furthermore, management believes such non-GAAP financial measures are useful to investors when evaluating the Company's performance, as such non-GAAP financial measures exclude certain items that management believes are not indicative of the Company's future operating performance. Pro forma measures, if applicable, are adjusted to include the results of our acquisitions, and exclude the results of divestments, as if the transactions occurred in the beginning of the periods mentioned. Such non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. The financial statement tables that accompany this press release include a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure and a more detailed discussion of each financial measure; as such, the financial statement tables should be read in conjunction with the presentation of these non-GAAP financial measures. FORWARD-LOOKING STATEMENTS This press release contains 'forward-looking statements' within the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact, including statements relating to our future results (including business trends); statements regarding the proposed Aya Merger; the expected timing and closing of the proposed Aya Merger; the Company's ability to consummate the proposed Aya Merger; the expected benefits of the proposed Aya Merger and other considerations taken into account by the Board in approving the proposed Aya Merger; the amounts to be received by stockholders in connection with the proposed Aya Merger; and expectations for the Company prior to and following the closing of the proposed Aya Merger, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management's current expectations for the future of the Company based on current expectations and assumptions relating to the Company's business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as 'believes,' 'anticipates,' 'may,' 'should,' 'will,' 'plans,' 'projects,' 'expects,' 'expectations,' 'estimates,' 'forecasts,' 'predicts,' 'targets,' 'prospects,' 'strategy,' 'signs,' and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the proposed Aya Merger, (ii) the risk that a condition of closing of the proposed Aya Merger may not be satisfied or that the closing of the proposed Aya Merger might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the proposed Aya Merger is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the proposed Aya Merger, (vi) the risk that any announcements relating to the proposed Aya Merger could have adverse effects on the market price of the common stock of the Company, (vii) the risk that the proposed Aya Merger and its announcement could have an adverse effect on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, including in circumstances requiring the Company to pay a termination fee, (ix) the risk that competing offers will be made, (x) unexpected costs, charges or expenses resulting from the Aya Merger, (xi) potential litigation relating to the Aya Merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that the Company's businesses serve which could have an effect on demand for the Company's services and impact the Company's profitability, (xiii) effects from global pandemics, epidemics or other public health crises, (xiv) changes in marketplace conditions, such as alternative modes of healthcare delivery, reimbursement and customer needs, and (xv) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, costs of providing services, retention of key employees, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company's filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A - Risk Factors of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as amended by Amendment No. 1 on Form 10-K/A, and in the Company's other filings with the SEC. The list of factors is not intended to be exhaustive. These forward-looking statements speak only as of the date of this press release, and the Company does not assume any obligation to update or revise any forward-looking statement made in this press release or that may from time to time be made by or on behalf of the Company. Cross Country Healthcare, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited, amounts in thousands, except per share data) Three Months Ended March 31, March 31, December 31, 2025 2024 2024 Adjusted EBITDA: a Net (loss) income attributable to common stockholders $ (490 ) $ 2,692 $ (3,753 ) Interest expense 543 462 608 Income tax (benefit) expense (409 ) 997 (161 ) Depreciation and amortization 4,772 4,642 4,341 Acquisition and integration-related costs b 2,041 — 4,216 Restructuring costs c 301 938 281 Legal, bankruptcy, and other losses (gains) d — 3,650 (928 ) Impairment charges e — 604 2,170 Loss on disposal of fixed assets — — 86 Interest income f (681 ) (173 ) (535 ) Other expense (income), net 60 (1,057 ) 322 Equity compensation 1,318 1,198 1,698 System conversion costs g 1,164 1,329 926 Adjusted EBITDA a $ 8,619 $ 15,282 $ 9,271 Adjusted EBITDA margin a 2.9 % 4.0 % 3.0 % Adjusted EPS: h Numerator: Net (loss) income attributable to common stockholders $ (490 ) $ 2,692 $ (3,753 ) Non-GAAP adjustments - pretax: Acquisition and integration-related costs b 2,041 — 4,216 Restructuring costs c 301 938 281 Legal, bankruptcy, and other losses (gains) d — 3,650 (928 ) Impairment charges e — 604 2,170 Other (income) expense, net — (1,115 ) 311 System conversion costs g 1,164 1,329 926 Tax impact of non-GAAP adjustments (919 ) (1,405 ) (1,843 ) Adjusted net income attributable to common stockholders - non-GAAP $ 2,097 $ 6,693 $ 1,380 Denominator: Dilutive impact of share-based payments 281 381 68 Adjusted weighted average common shares - diluted, non-GAAP 32,563 34,597 32,406 Reconciliation: Diluted EPS, GAAP $ (0.02 ) $ 0.08 $ (0.12 ) Non-GAAP adjustments - pretax: Acquisition and integration-related costs b 0.06 — 0.13 Restructuring costs c 0.01 0.02 0.01 Legal, bankruptcy, and other losses (gains) d — 0.10 (0.03 ) Impairment charges e — 0.02 0.07 Other (income) expense, net — (0.03 ) 0.01 System conversion costs g 0.04 0.04 0.03 Tax impact of non-GAAP adjustments (0.03 ) (0.04 ) (0.06 ) Adjusted EPS, non-GAAP h $ 0.06 $ 0.19 $ 0.04 Expand Cross Country Healthcare, Inc. Consolidated Balance Sheets (Unaudited, amounts in thousands) March 31, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 80,697 $ 81,633 Accounts receivable, net 219,789 223,238 Income taxes receivable 5,893 10,389 Prepaid expenses 8,295 7,848 Insurance recovery receivable 9,343 9,255 Other current assets 1,182 2,637 Total current assets 325,199 335,000 Property and equipment, net 28,117 28,850 Operating lease right-of-use assets 2,219 2,468 Goodwill 135,060 135,060 Other intangible assets, net 39,965 42,186 Deferred tax assets 8,804 8,104 Insurance recovery receivable 20,193 20,928 Cloud computing 11,358 10,846 Other assets 5,320 5,809 Total assets $ 576,235 $ 589,251 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 56,325 $ 64,946 Accrued compensation and benefits 50,056 47,646 Operating lease liabilities 1,687 2,089 Earnout liability — 4,411 Other current liabilities 980 1,310 Total current liabilities 109,048 120,402 Operating lease liabilities 1,623 1,782 Accrued claims 33,982 34,425 Uncertain tax positions 10,168 10,117 Other liabilities 3,204 3,566 Total liabilities 158,025 170,292 Commitments and contingencies Stockholders' equity: Common stock 3 3 Additional paid-in capital 202,074 202,338 Accumulated other comprehensive loss (1,436 ) (1,441 ) Retained earnings 217,569 218,059 Total stockholders' equity 418,210 418,959 Total liabilities and stockholders' equity $ 576,235 $ 589,251 Expand Cross Country Healthcare, Inc. Summary Condensed Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) Three Months Ended March 31, March 31, December 31, 2025 2024 2024 Net cash provided by operating activities $ 5,681 $ 6,011 $ 24,234 Net cash used in investing activities (1,886 ) (2,210 ) (2,531 ) Net cash used in financing activities (4,725 ) (15,653 ) (4,077 ) Effect of exchange rate changes on cash (6 ) — (14 ) Change in cash and cash equivalents (936 ) (11,852 ) 17,612 Cash and cash equivalents at beginning of period 81,633 17,094 64,021 Expand (a) Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders before interest expense, income tax expense (benefit), depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on disposal of fixed assets, gain or loss on lease termination, gain or loss on sale of business, interest income, other expense (income), net, equity compensation, and system conversion costs. Adjusted EBITDA is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net income (loss) attributable to common stockholders as an indicator of operating performance. Management uses Adjusted EBITDA for planning purposes and as one performance measure in its incentive programs for certain members of its management team. Adjusted EBITDA, as defined, closely matches the operating measure as defined by the Company's credit facilities. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company's consolidated revenue. (b) Acquisition and integration costs relate primarily to fees associated with the pending Aya Merger. (c) Restructuring costs were primarily comprised of employee termination costs, lease-related exit costs, and reorganization costs as part of planned cost savings initiatives. (d) Includes legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations. The Company incurred a settlement expense of $1.2 million, and recorded a $1.8 million recovery related to a previous loss, in the fourth quarter of 2024. During the first quarter of 2024, the Company recorded legal and other losses of $3.7 million representing an offer to settle a lawsuit, as well as estimated costs related to an unrecoverable asset. (e) Impairment charges for the three months ended March 31, 2024 and December 31, 2024 were related to right-of-use assets and related property in connection with vacated leases in those periods. Impairment charges for the three months ended December 31, 2024 also included the write-off of goodwill and intangible assets associated with the impairment of a previous asset acquisition. (f) Interest income for the three months ended March 31, 2025 and December 31, 2024 related to higher average cash on hand with higher available interest rates. (g) System conversion costs include enterprise resource planning system costs related to the upgrading and integrating of our middle and back-office platforms, with certain development costs capitalized and amortized in accordance with the Company's policies. (h) Adjusted EPS, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders per diluted share before the diluted EPS impact of acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on sale of business, system conversion costs, and nonrecurring income tax adjustments. Adjusted EPS is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EPS because it believes that Adjusted EPS is a useful supplement to its reported EPS as an indicator of operating performance. Management believes Adjusted EPS provides a more useful comparison of the Company's underlying business performance from period to period and is more representative of the future earnings capacity of the Company than EPS. Quarterly non-GAAP adjustment may vary due to rounding. (i) Segment data is provided in accordance with the Segment Reporting Topic of the Financial Accounting Standards Board Accounting Standards Codification. (j) Contribution income is defined as income (loss) from operations before depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, impairment charges, and corporate overhead. Contribution income is a financial measure used by management when assessing segment performance. (k) Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, human resources, and marketing, as well as public company expenses and Company-wide projects (initiatives). (l) Legal and other losses (gains) include legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations. (m) Gross profit is defined as revenue from services less direct operating expenses. The Company's gross profit excludes allocated depreciation and amortization expense. Gross profit margin is calculated by dividing gross profit by revenue from services. (n) FTEs represent the average number of Nurse and Allied Staffing contract personnel on a full-time equivalent basis. (o) Average revenue per FTE per day is calculated by dividing Nurse and Allied Staffing revenue, excluding permanent placement, per FTE by the number of days worked in the respective periods. (p) Days filled is calculated by dividing the total hours invoiced during the period, including an estimate for the impact of accrued revenue, by 8 hours. Expand
