Medical Staffing Network Holdings, Inc. (OTCQX: MSNW) reported revenue of $78.9 million for the third quarter of 2009, a decrease of 41.9% from the revenue of $135.8 million for the third quarter of 2008. The net loss for the third quarter of 2009 was $15.2 million, or $0.50 per diluted share, as compared with net income of $2.5 million, or $0.08 per diluted share, for the third quarter of 2008. Adjusted net loss (a non-GAAP financial measure that is reconciled in an accompanying schedule) was $0.3 million, or $0.01 per diluted share, for the third quarter of 2009 as compared with adjusted net income of $1.5 million, or $0.05 per diluted share, for the third quarter of 2008. The Company’s AEBITDA (as defined later, AEBITDA is a non-GAAP financial measure that is reconciled in an accompanying schedule) was $5.5 million (7.0% of revenue) for the third quarter of 2009 as compared with $6.9 million (5.1% of revenue) for the third quarter of 2008. The Company’s year-over-year reduction in AEBITDA was 20% compared to a revenue decline of 41.9% due to gross margin expansion and proactive cost cutting measures. Cash flow generated from operations was $1.4 million for the third quarter of 2009 as compared with $6.4 million for the third quarter of 2008. Days sales outstanding as of the end of the third quarter of 2009 was 48 days, down three days from the end of the comparable prior year period.
For the three months ended September 27, 2009 and September 28, 2008, approximately $57.9 million (73.4%) and $95.3 million (70.1%) of the Company’s revenues, respectively, were derived from per diem staffing (inclusive of short-term contracts and allied health business staffed through local per diem branches); $10.1 million (12.8% of revenues) and $23.0 million (16.9% of revenues), respectively, were derived from travel nurse staffing; and $10.9 million (13.8% of revenues) and $17.5 million (13.0% of revenues), respectively, were derived from allied health staffing.
Gross profit for the third quarter of 2009 was $21.9 million, a decrease of 36.2% from the gross profit of $34.3 million for the third quarter of 2008. Gross margin (gross profit compared to service revenues) for the third quarter of 2009 was 27.7% as compared with 25.3% for the third quarter of 2008. The 240 basis point gross margin improvement over the comparable prior year period was primarily attributable to a continued focus on gross margin expansion and a recent favorable trend in the actuarial valuations of the Company’s self-insurance accrued liabilities. Selling, general and administrative expenses were $16.5 million, or 20.8% of revenues, in the third quarter of 2009 as compared with $27.5 million, or 20.2% of revenues, for the comparable prior year period. The $11.0 million, or 40.1%, decrease from the comparable prior year period is due to the various cost containment initiatives implemented over the past 12 months.
Revenues for the nine months ended September 27, 2009, were $265.2 million, a decrease of 37.5% from revenues of $424.1 million for the comparable prior year period. Net loss for the nine months ended September 27, 2009, was $20.0 million, or $0.66 per diluted share, as compared with a net loss of $49.4 million, or $1.63 per diluted share for the comparable prior year period. Adjusted net loss was $2.0 million, or $0.07 per diluted share, for the nine months ended September 27, 2009, as compared with adjusted net income of $3.3 million, or $0.11 per diluted share, for the comparable prior year period. The Company’s AEBITDA for the nine months ended September 27, 2009 was $14.0 million (5.3% of revenue) as compared with $19.0 million (4.5% of revenue) for the comparable prior year period. Cash flow generated from operations was $13.3 million for the nine months ended September 27, 2009, as compared with $17.9 million for the comparable prior year period.
For the nine months ended September 27, 2009 and September 28, 2008, approximately $189.1 million (71.3%) and $297.2 million (70.1%) of the Company’s revenues, respectively, were derived from per diem staffing (inclusive of short-term contracts and allied health business staffed through local per diem branches); $41.8 million (15.8% of revenues) and $74.1 million (17.5% of revenues), respectively, were derived from travel nurse staffing; and $34.3 million (12.9% of revenues) and $52.8 million (12.4% of revenues), respectively, were derived from allied health staffing.
Gross profit was $69.9 million for the nine months ended September 27, 2009, a decrease of 33.5% from the gross profit of $105.0 million for the comparable prior year period. Gross margin for the nine months ended September 27, 2009, was 26.3%, an increase from the gross margin of 24.8% for the comparable prior year period. The 150 basis point year-over-year improvement was primarily attributable to a continued focus on gross margin expansion and a recent favorable trend in the actuarial valuation of the Company’s self-insurance accrued liabilities. Selling, general and administrative expenses were $56.2 million, or 21.2% of revenues, for the nine months ended September 27, 2009, as compared with $86.2 million, or 20.3% of revenues, for the comparable prior year period. The $30.0 million, or 34.8%, decrease from the prior year is due to the various cost containment initiatives implemented over the past 12 months.
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