Medical Staffing Network Holdings, Inc. (NYSE: MRN) today reported
revenue of $145.2 million for the first quarter of 2008, an increase of
60.4% from the first quarter of 2007 revenue of $90.5 million. Net
income for the first quarter of 2008 was $0.8 million, or $0.03 per
diluted share, as compared with a net loss of less than $0.1 million for
the first quarter of 2007.
Commenting on the first quarter’s results,
Robert J. Adamson, chairman and chief executive officer, stated, “We
are pleased to report a $4 million increase in operating income over the
prior year quarter. The results were achieved primarily due to improved
leverage of our fixed operating expenses over a significantly larger
revenue base and continued success from our margin improvement
initiatives. Our first quarter gross margin of 24.1% was 90 basis points
higher than the same quarter of 2007 and 340 basis points higher than
the comparable 2006 quarter.”
“Our per diem business grew sequentially,”
Adamson continued, “aided by a strong
performance from the acquired InteliStaf per diem business. Revenue from
the acquired business was higher in the first quarter of 2008 than that
achieved in either the third or fourth quarters of 2007.”
Adamson concluded, “We believe that Medical
Staffing Network is well positioned due to its diversity of product
offerings and the infrastructure established following the integration
of acquisitions we made in 2007; however, we continue to feel the
headwinds of a sluggish economy coupled with no growth in normalized
hospital admissions.”
Gross profit was $35.1 million for the first quarter of 2008, an
increase of 66.7% from the first quarter of 2007 gross profit of $21.0
million. Gross margin for the first quarter of 2008 was 24.1%, an
increase from 23.2% for the first quarter of 2007. The 90 basis
point year-over-year improvement was primarily attributable to a
continued focus on gross margin expansion.
Selling, general and administrative expenses were $29.3 million, or
20.2% of revenues, in the first quarter of 2008 as compared with $19.9
million, or 21.9% of revenues, for the comparable prior year period. The
dollar increase was primarily due to increased overhead costs associated
with the larger per diem branch network and scale travel nurse division
resulting from the acquisition of InteliStaf Holdings, Inc., while the
decrease as a percentage of revenue is due to improved leverage of our
operating expenses.
Conference Call
The Company’s management will host a
conference call and webcast to discuss the earnings release at 11:00
a.m. Eastern time on Thursday, May 8, 2008. A live webcast, as well as a
30-day replay, of the conference call will be available online at the
Company’s website at www.msnhealth.com
or at www.earnings.com.
Company Summary
Medical Staffing Network Holdings, Inc. is the third largest diversified
healthcare staffing company in the United States as measured by
revenues. The Company is the leading provider of per diem nurse staffing
services and is also a leading provider of travel, allied health and
vendor managed services.
This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements include all statements other than those made solely with
respect to historical fact. These statements involve known and
unknown risks, uncertainties and other factors that may cause the
registrant’s actual results and performance
to be materially different from any future results or performance
expressed or implied by these forward-looking statements. These
factors include the following: our ability to maintain the revenue
run-rate experienced in the first few months following the InteliStaf
merger; our ability to maintain the level of success achieved to date
with regards to the InteliStaf integration plan; our ability to attract
and retain qualified nurses and other healthcare personnel; our ability
to maintain demand for services provided by temporary healthcare
professionals if lower than expected levels of patient occupancy at our
hospital and healthcare facility clients continue; the effect of higher
unemployment rates on our ability to successfully recruit additional
healthcare professionals; the effect of the general level of economic
activity on our business as such activity is impacted by factors beyond
our control (i.e. inflation, recession, weather conditions, acts of
war); our ability to remain competitive in obtaining and retaining
hospital and healthcare facility clients and temporary healthcare
professionals; our continued ability to secure and fill new orders from
our hospital and healthcare facility clients; the effect of fluctuations
in hospital and healthcare facility patient occupancy on our business;
our clients’ inability to pay us for our
services; the effects of healthcare reform on our business; our exposure
to increased costs and risks associated with increasing and new
corporate governance regulation compliance; the effect of existing or
future government regulation and federal and state legislative and
enforcement initiatives on our business including Joint Commission
certification; the proper functioning of our information systems; our
ability to successfully implement our acquisition strategies; our
ability to successfully integrate completed acquisitions into our
current operations; our ability to obtain additional financing, if
required, in future periods; our ability to leverage our cost structure;
the effect of significant legal actions and other claims asserted
against us on our business; our ability to sustain the improved
self-insurance claims experience; our continued ability to
attract, develop and retain sales and recruitment personnel; the
departure of key officers and senior management personnel; the effect of
our recognition of any impairment to goodwill on our earnings; the
effect of higher than anticipated travel business housing costs on our
margins; the ability of our executive officers, directors and
significant stockholders to influence matters requiring stockholder
approval; the provisions in our corporate documents and Delaware law
that could delay or prevent a transaction considered favorable by our
stockholders; and the possible decline in value of our stock price. Additional
information concerning these and other important factors can be found
within the registrant’s filings with the
Securities and Exchange Commission. Forward-looking statements in
this press release should be evaluated in light of these important
factors. Although the registrant believes that these statements
are based upon reasonable assumptions, the registrant cannot provide any
assurances regarding future results. The registrant undertakes no
obligation to revise or update any forward-looking statements, or to
make any other forward-looking statements, whether as a result of new
information, future events or otherwise.
