Cross Country Healthcare, Inc. · NASDAQ:CCRN
Cross Country Healthcare — Jefferies 2014 Global Healthcare Conference
28 slides from Cross Country Healthcare's conference presentation, Jun 3, 2014
Slide 1: Cross Country Healthcare - Jefferies 2014 Global Healthcare Conference
ae a A Nurse & Allied Staffing Physician Staffing Education & Retained Search Cross Country Healthcare Jefferies 2014 Global Healthcare Conference ROSS OUNTRY, JUNE 2014
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. Statements that are predictive in nature, that Sepa upon or refer to future events or conditions or that include words such as “expects”, “anticipates”, “intends”, “plan “believes”, “estimates”, “appears”, “seeks”, “wi
Slide 3: Cross Country: Capitalizing on Opportunities in Healthcare Staffing
CRS rey. Cross Country: Capitalizing on Opportunities in Healthcare Staffing * $10B market with multiple secular demand drivers — Growing, aging population demanding more hospital services — Aging RN/physician populations; significant shortages expected next 5-10 years — Affordable Care Act and shif
Slide 4: Market Trends
CSCSrey. Market Trends
Slide 5: Healthcare staffing market size
$10.6 $11.3 $11.4 $8.2 $7.9 $8.8 $9.5 $9.7 $10.3 $11.1 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E • • •
Slide 6: Drivers of Healthcare Demand
Drivers of Healthcare Demand Nonelderly U.S. Popul inder 65) 300 2 250 3 3 200 2 2 150 = 100 50 0 2013 2014 2015, 2016 2017 Uninsured i Medicaid/CHIP Exchanges = Employer/Other Source: U.S. Congressional Budget Office, May, 2013 CROSS ey SOUNTRY People insured and under 65 projected to grow from 219
Slide 7: Drivers of Healthcare Demand
Drivers of Healthcare Demand CRS: ¢ U.S. Census Bureau projects increase in number of people over 65, all eligible for Medicare jected Age Groups of 400 Number expected to grow from 15% of U.S. population in 2015 to 21% in 2035. This growth is in addition to the number of nonelderly insured Millions
Slide 8: Market size chart 2008-2015E
• • $9.5 $6.4 $6.1 $6.9 $7.3 $7.3 $7.7 $8.3 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 2008 2009 2010 2011 2012 2013 2014E 2015E
Slide 9: Historical trend chart 1996-2012
94.3 83.2 71.5 70.6 87.2 110.7 129.1 140.9 150.2 0 20 40 60 80 100 120 140 160 1996 1998 2000 2002 2004 2006 2008 2010 2012 • • • •
Slide 10: Physician Staffing Market Held Up Well in Recession; Strong Growth in Recovery
CR Siey. Physician Staffing Market Held Up Well in Recession; Strong Growth in Recovery * Temporary physicians allow healthcare facilities to compensate for: Locum Tenens Market - Shortages $28 $2.6 $2.4 os $2.2 - Absent staff $2.0 $2.0) $18 $18 $18 A - Vacancies due to illness, vacations, etc. r .
Slide 11: Drivers of Physician Supply & Demand
ZOUNTRY Drivers of Physician Supply & Demand Number of applicants to medical schools is increasing but will not keep pace with expected future demand - Supply of physicians expected to increase only 7% in next 10 years - ~25% of physician workforce is age 60+ - ~1/3 of physicians plan to retire in n
Slide 12: Strategy Review
CROSS ey SOUNTRY, Strategy Review
Slide 13: Strategy
[ROSS UNTRY, Strategy Balanced Candidate and Customer Acquisition Be Competitive in All Sectors of Healthcare Staffing Expand Workforce Management Solutions - Managed Service Programs - Electronic Medical Records . i Process O1 ing - Workforce Assessments - Predictive Modeling Targeted Acquisitions
Slide 14: Candidate Acquisition
Candidate Acquisition Job Boards Mobile Technology ’ fi ! Texting Nova Pro _ ae GROSS TEER, counraylbiEm Email Marketing Military Personnel CSCSrey. Job Aggregators Electronic & Paid ee Engine Advertisin, Social Media CCHI Website Properties Word-of-Mouth Referrals IUNEZ018 SC
Slide 15: Our Customers
Our Customers Physician Office y —— '\ Ambulatory Care Centers => ozs a Rehab Facilities HOSPITAL Post-Acute Care Facilities Skilled Nursing Facilities School Districts CStNiry | [ | Enterprise/Full Suite of Services | Workforce Management Solutions Wholesale Vs. Retail MSP’s + EMR * RPO + Predictiv
Slide 16: Our Goal is to Be Competitive in All Market Sectors
CROSS ey SOUNTRY Our Goal is to Be Competitive in All Market Sectors A “ $1.8, 18% Cross Country Healthcare Market Share Travel Nurse: Locum Tenens: gory Allied: Per Diem: Travel Nurse $211.3, 48% Nurse Staffing, $204.5, 56% Locum Tenens, $121.4, 28% Allied, $72.6, 17%
Slide 17: The MSP Opportunity: Key Elements of Our MSP Model
The MSP Opportunity: Key Elements of Our MSP Model & Cross Country S STAFFING ne call service —— Supplier management Subcontractors * Consolidated billing + Travel Nursing & * Recruitment Allied Health ae + Credentialn Technology 8 * Per Diem Nursing & nee Allied Health * Order management * Locum Te
Slide 18: 0 2009 2010 2011 2012 2013 2014
162 270 370 740 860 375 0 100 200 300 400 500 600 700 800 900 2009 2010 2011 2012 2013 2014
Slide 19: Targeted Acquisitions
CROSS ey SOUNTRY Targeted Acquisitions
Slide 20: Acquisitions Meet Well-Defined Strategic Criteria
ROSS. UNTRY. Acquisitions Meet Well-Defined Strategic Criteria | a ely (Acquired December 2013) (Expected Close 2Q2014) Expand local footprint Capitalize on shift from acute care to ambulatory care Round out service offering Expand candidate pipeline Expand Workforce Management Solutions CNN NNN CNN
Slide 21: Allied HealthGroup Acquisition: Business Overview
JOUNTRY Allied HealthGroup Acquisition: Business Overview Strategic Rationale Local “branch based” Allied Staffing business * Purchase Price $28.7 million * 23 branch offices; 600-650 FTEs on assignment * 2013 Run Rate: * $40 million revenue/31% gross margin ° ~8.5% EBITDA Retail vs. wholesale Expan
Slide 22: MSN Acquisition: Transaction Summary
MSSN Acquisition: Transaction Summary JOUNTRY Transaction structure * Acquiring substantially all of assets and business of MSN Price $48.3 million Subject to post-closing working capital adjustment Form of consideration All cash Financing Subordinated 5-year Term Loan: $30M Subordinated 6-year Conv
Slide 23: Medical Staffing Network Overview
Medical Staffing Network Overview CR Siey. Comprehensive healthcare staffing company — Provides per diem, local, contract, travel, permanent hire staffing services — Second largest provider of per diem nurse staffing according to SIA Operates 55 branches throughout the U.S. — Headquartered in Boca R
Slide 24: MSN Acquisition: Strategic Rationale
MSN Acquisition: Strategic Rationale CR Siey. e Compelling opportunity enhances Cross Country’s competitive position MSN and Cross Country Healthcare Locations Increases branches from 29 to more MSN @ Cross Country Healthear than 70 — Expands market share through new * local presence . 3 e ad — Dive
Slide 25: Financial Benefits
Financial Benefits CRS: e Revenue Opportunity: — Expanded fill rates at MSP for both organizations — Account expansion in per diem market — Increased recruiter productivity Expect to achieve significant cost synergies: — Approximately $12 - $14 million in cost savings to be realized by the end of 20
Slide 26: Financial Review & Summary
Financial Review & Summary CROSS ey SOUNTRY
Slide 27: Segment Revenue From Services
Segment Revenue From Services Nurse and Allied Staffing ” Physician Staffing 278,973 $ 121,371 278,793 118,781 Other Human Capital Management 37,967 Consolidated Revenues from Services Segment Contribution Income (®) Nurse and Allied Staffing Physician Staffing Other Human Capital Management Nurse a
Slide 28: Cross Country Healthcare Summary
JOUNTRY Cross Country Healthcare Summary 8% EBITDA target Grow company organically and by acquisitions MSN acquisition is a significant milestone, strategically and financially Leverage healthcare market dynamics: Supply and demand Improving economic conditions Aging patient population Aging RN and
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