Cross Country Healthcare Sells Healthcare Consulting Business Units.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla. -- Cross Country Healthcare, Inc. (Nasdaq:CCRN CCRN Critical Care Registered Nurse CCRN Certification In Critical Care Nursing ) announced today that it has sold its Gill/Balsano Consulting and Jennings Jennings, city (1990 pop. 11,305), seat of Jefferson Davis parish, SW La., on the Mermentau River; inc. 1888. Cotton and rice are grown, there is a bottling plant, and drugs, machinery, apparel, and water-treatment systems are manufactured. Ryan & Kolb healthcare consulting business units to privately held Mitretek Systems for $12.25 million in cash. The Company acquired Gill/Balsano Consulting in May 2001 for $3.6 million and acquired Jennings Ryan & Kolb in March 2002 for $3.9 million, including respective earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. payments of which none remain. In 2003, these two business units together accounted for $11.6 million in revenue. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this transaction will be used to pay down debt. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Separately, the Company is pursuing a plan of sale with respect to its Cejka Consulting practice that was not acquired by Mitretek. Cejka Consulting was a part of TravCorps Corporation, which was acquired by Cross Country Healthcare in December 1999. In 2003, it accounted for $2.6 million in revenue. E[acute accent]These three healthcare consulting practices constituted the Company's Cross Country Consulting, Inc. subsidiary, which is a component of the Company's Other Human Capital Management Services business segment. Combined, these business units represented approximately 2% of the $687 million in total revenue the Company reported in 2003. E[acute accent]"As we have indicated in the past, the operating performance of our consulting business has been more volatile than we felt acceptable for a non-core activity and the synergies with our staffing business were less than we had envisioned. This transaction enables us to realize an attractive return on investment for our stockholders and focus our attention on higher value-added activities," said Joseph A. Boshart, President and Chief Executive Officer of Cross Country Healthcare, Inc. E[acute accent]About Mitretek Systems E[acute accent]Mitretek Systems is a Falls Church, Virginia Falls Church is an independent city in Virginia, United States. The population was 10,377 at the 2000 census. This city is a part of the Washington Metropolitan Area. A much larger number of people reside in Greater Falls Church based nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. scientific organization that works exclusively on behalf of the American people An American people may be:
E[acute accent]About Cross Country E[acute accent]Cross Country Healthcare, Inc. is a leading provider of healthcare staffing services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company has a client base of over 3,000 hospitals, pharmaceutical companies and other healthcare providers across all 50 states. Copies of this and other news releases as well as additional information about Cross Country can be obtained online at www.crosscountry.com. Shareholders and prospective investors can also register at the corporate Web site to automatically receive the Company's press releases, SEC filings and other notices by e-mail. E[acute accent]This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are predictive in nature, that depend upon or refer to future events or conditions or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" and similar expressions are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our 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 attract and retain qualified nurses and other healthcare personnel, costs and availability of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. leases for our travel nurses, demand for the healthcare services we provide, both nationally and in the regions in which we operate, the functioning of our information systems, the effect of existing or future government regulation and federal and state legislative and enforcement initiatives on our business, our clients' ability to pay us for our services, our ability to successfully implement our acquisition and development strategies, the outcome of the Company's remaining healthcare consulting business, the effect of liabilities and other claims asserted against us, the effect of competition in the markets we serve, and other factors set forth under the caption "Risk Factors" in the Company's 10-K for the year ended December 31, 2003. |
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