Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q1 2018 Earnings Conference Call Transcript

May 03, 2018 • 09:00 am ET

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Cross Country Healthcare, Inc. (NASDAQ:CCRN) Q1 2018 Earnings Conference Call Transcript

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Q & A
Operator
Operator

We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Jeff Silber from BMO Capital Markets. Your line is now open.

Analyst
Analyst

It's Henry Chien, calling for Jeff. Just a question on the 2Q guidance, just want to make sure I'm understanding this correctly. So it seems like revenues is there, it should at least stay flat sequentially and there's a chance that it could decline year-over-year. I just want to understand is that primarily due to the, you know, the drop in assignments in travel nurse offset by steady revenue growth on the other businesses, and just-- I'm just trying to understand how to think about that potential decline?

Executive
Bill Grubbs

Yeah, it certainly is-- is the result of the headwind from Q4, where we're still trying to grow back into the level of headcount on our billing for travel nurse and that's the biggest impact. We expect executive and physician search to do -- to have another good quarter and there will be a little bit of decline we think in physician on a year-over-year basis, because we had a good quarter last year. So it's a bit puts and takes here and there, some of it within Nurse and Allied with physician -- sorry, with education still growing and travel allied will still grow. It's puts and takes here and there, but -- so it looks like it's kind of flat on the sequential basis and either slightly down or slightly up on a year-over-year basis.

Analyst
Unidentified Participant

And on the nurse side, the decline in billing rates, is that primarily due to the impact from the premium rate business or is sort of like, okay got it.

Executive
Unidentified Speaker

It's almost all completely due to that, yes.

Analyst
Unidentified Participant

Got it. Okay, great. And just shifting over to the cost side, the $3 million to $3.5 million that you've targeted that's expenses that you're targeting to be removed this year and then the additional $3 million to $4 million and $15 million that Bill mentioned earlier, that's incremental on top of that over the next few years?

Executive
Bill Grubbs

No, the amount this year is part of the total $15 million and Chris was relating the restructuring charge to $400,000 in the first quarter to the $3 million and $3.5 million. We think we might be able to get a little bit more than that total out of this year, maybe $4 million, maybe a little more than $4 million for the full year and then next year maybe $8 million to $9 million total for the full year, but be at a run-rate of the $15 million maybe by the fourth quarter of 2019. Is that right, Chris?

Executive
Chris Pizzi

That is right.

Operator
Operator

Our next question comes from A. J. Rice from Credit Suisse. Your line is now open.

Analyst
A. J. Rice

Couple of questions if I might. First of all just -- and I know we talked a little bit about this last call, but-- so this depth in volume and placements, remind me, is that --