Cross Country Healthcare Inc (CCRN) 2023 Q4 法說會逐字稿

Good afternoon everyone. Welcome to Cross Country Healthcare's earnings conference call for the fourth quarter 2020. Yes, call is being recorded, and a replay of this webcast will be available Yes. Audio replay can be found in the Company's earnings release issued this afternoon. At the conclusion of the prepared remarks, I will open the line. I would now like to turn the call over to Josh Vogel, Cross Country Healthcare's Vice President of Investor Relations. Thank you, and please go ahead, sir.

大家下午好。歡迎參加 Cross Country Healthcare 2020 年第四季財報電話會議。是的，通話正在錄音，並且可以重播此網路廣播 是。音頻重播可以在今天下午發布的公司財報中找到。在準備好的發言結束後，我將打開線路。我現在想將電話轉給 Cross Country Healthcare 投資者關係副總裁 Josh Vogel。謝謝您，請繼續，先生。

Thank you, and good afternoon, everyone. I'm joined today by our President and Chief Executive Officer, John Martin's, as well as Bill Burns, our Chief Financial Officer, and Mark crude Group President of delivery.

謝謝大家，大家下午好。今天與我一起出席的還有我們的總裁兼執行長約翰馬丁 (John Martin)、我們的財務長比爾伯恩斯 (Bill Burns) 和馬克原油集團交付總裁。

Today's call will include a discussion of our financial results for the fourth quarter and full year of 2023, as well as our outlook for the first quarter of 2020. For a copy of our earnings press release, is available on our website at Cross Country.com. Please note that certain statements made on this call may constitute forward-looking statements. These statements reflect the company's beliefs based upon information currently available to us.

今天的電話會議將討論我們 2023 年第四季和全年的財務業績，以及我們對 2020 年第一季的展望。如需我們的收益新聞稿副本，請造訪我們的網站 Cross Country.com。請注意，本次電話會議中所做的某些陳述可能構成前瞻性陳述。這些陳述反映了公司基於我們目前掌握的資訊所持有的信念。

As noted in our press release, forward-looking statements can vary materially from actual results and are subject to known and unknown risks, uncertainties and other factors, including those contained in the company's 2022 Annual Report on Form 10 K and quarterly reports on Forms 10 Q as well as in other filings with the SEC. The Company does not intend to update guidance or any of its forward looking statements prior to the next earnings release.

正如我們在新聞稿中所指出的，前瞻性陳述可能與實際結果有重大差異，並受到已知和未知的風險、不確定性和其他因素的影響，包括公司2022 年10 K 表格年度報告和10表格季度報告中包含的因素Q 以及向 SEC 提交的其他文件中。該公司不打算在下一次收益發布之前更新指導意見或任何前瞻性聲明。

Additionally, we reference non-GAAP financial measures, such as adjusted EBITDA or adjusted earnings per share. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for or superior to those calculated in accordance with U.S. GAAP. More information related to these non-GAAP financial measures is contained in our press release. Also during this call, we may refer to pro forma normalized numbers pertain to our most recent acquisitions as those results were included or excluded from the periods presented.

此外，我們也參考了非公認會計原則財務指標，例如調整後的 EBITDA 或調整後的每股盈餘。此類非 GAAP 財務指標作為附加資訊提供，不應被視為替代或優於根據美國計算的財務指標。公認會計準則。與這些非公認會計準則財務指標相關的更多資訊包含在我們的新聞稿中。此外，在本次電話會議中，我們可能會參考與我們最近收購相關的備考標準化數據，因為這些結果已包含或排除在所提供的期間內。

With that, I will now turn the call over to our Chief Executive Officer, John Martin.

現在，我將把電話轉給我們的執行長約翰馬丁。

Thanks, Josh, and thank you, everyone, for joining us.

謝謝喬希，也謝謝大家加入我們。

This afternoon. Overall, I was pleased with our fourth quarter and full year 2023 results and particularly in how we have responded to the challenging market conditions in our nurse and allied segments as health systems seek ways to reduce their reliance on contingent labor. After declining in the first half of 2023, travel demand remained fairly stable. However, coming into the new year, we were seeing another pullback in orders, which appears to be industry-wide across most specialties and geographies. Many systems are nonetheless seeing increases in volumes, which we believe will ultimately translate into rising demand for our service and with our focus on innovation and operational, excellent as well as the health of our balance sheet. Cross Country is well positioned to weather these near-term headwinds, and we believe we are poised to see sequential growth in the back half of the coming year.

今天下午。總體而言，我對我們第四季度和 2023 年全年的業績感到滿意，特別是我們如何應對護理人員和相關部門充滿挑戰的市場條件，因為衛生系統正在尋求減少對臨時勞動力的依賴的方法。經過2023年上半年的下降後，旅遊需求仍相當穩定。然而，進入新的一年，我們看到訂單再次減少，這似乎是整個行業的大多數專業和地區的情況。儘管如此，許多系統的數量仍在增加，我們相信這最終將轉化為對我們服務的需求不斷增長，並且我們將重點放在創新和營運、卓越以及資產負債表的健康狀況上。Cross Country 已經做好了應對這些近期逆風的準備，我們相信我們將在來年下半年看到連續增長。

Now let's take a moment to reflect on our full year performance. We generated $144 million of adjusted EBITDA, our second best year in company history following the record year in 2022. We also had a record year for cash flow from operations generating $249 million, which enabled us to end the year with a strong debt pretty balanced. In addition, we invested more than $20 million on technology initiatives. And we purchased 2.3 million shares of stock, representing approximately 6% of our outstanding shares this year. Perhaps the most noteworthy accomplishments in 2023 was the rollout of our vendor management system in telephone. This VMS technology amplifies and enhances productivity by more effectively managing deploying and anticipating workforce needs for our clients throughout the year, we witnessed the level of interest in this technology growth, leading to a series of wins that exceeded internal targets. In fact, two fairly sizable deals that we closed early in the fourth quarter were fully implemented before year-end, demonstrating the speed at which we can deploy this technology. In addition to our client-facing and telephone offering, we rebranded our experience as last year, which is a candidate facing tool that enables clinicians with the power to manage their careers anytime anyplace they want equally exciting experience is on our roadmap to be fully integrated into and telephone. Unlike conventional job matching experience, ensures a precise alignment, have clinicians with rules that uniquely match their skills and aspirations. In 2023, we had more than 18,000 app downloads and over 100,000 unique viewers that access experience through our mobile app and website.

現在讓我們花點時間回顧一下我們的全年業績。我們實現了 1.44 億美元的調整後 EBITDA，這是繼 2022 年創紀錄的一年之後，我們公司歷史上第二好的一年。我們的營運現金流也創下了創紀錄的一年，創造了 2.49 億美元，這使我們能夠以相當平衡的強勁債務結束這一年。此外，我們還在技術舉措上投資了超過 2,000 萬美元。我們買了 230 萬股股票，約佔今年已發行股票的 6%。也許 2023 年最值得注意的成就是我們在電話領域推出的供應商管理系統。這項 VMS 技術透過更有效地管理部署和預測全年客戶的勞動力需求來放大和提高生產力，我們見證了人們對這項技術成長的興趣程度，從而取得了一系列超出內部目標的勝利。事實上，我們在第四季初完成的兩筆規模相當大的交易在年底前得到了全面實施，這證明了我們部署這項技術的速度。除了面向客戶和電話服務之外，我們還像去年一樣重新命名了我們的體驗，這是一個面向候選人的工具，使臨床醫生能夠隨時隨地管理自己的職業生涯同樣令人興奮的體驗已在我們的路線圖上完全整合並打電話。與傳統的工作匹配經驗不同，確保精確匹配，讓臨床醫生製定與他們的技能和願望獨特匹配的規則。2023 年，我們的應用程式下載量超過 18,000 次，並且有超過 100,000 名獨特的觀眾透過我們的行動應用程式和網站訪問體驗。

And finally, we launched data aggregation services for data which offers unique insights on bill rate trends that help hospitals validate their costs by providing real-time benchmarking and visitors.

最後，我們推出了數據聚合服務，提供有關帳單費率趨勢的獨特見解，透過提供即時基準和訪客來幫助醫院驗證其成本。

From an MSP and vendor-neutral sales perspective, 2023 was a very active year in our industry. And so we experienced the higher level of attrition in the earlier part of the year. We lead 2023 on a very positive trajectory from both a retention and new client perspective as well as having a robust pipeline. The annualized spend under management from our recent wins is estimated to be over $125 million when fully ramped. And since late December, we've had two more wins, including one vertical with total estimated annual spend of more than $75 million. We believe that fees and other wins we expect to close throughout the year will provide some tailwinds in the second half of the coming year.

從 MSP 和供應商中立的銷售角度來看，2023 年是我們這個行業非常活躍的一年。因此，我們在今年稍早經歷了更高水準的人員流失。從保留客戶和新客戶的角度以及強大的管道來看，我們在 2023 年將走上非常積極的軌道。當全面啟動時，我們最近獲勝所管理的年化支出預計將超過 1.25 億美元。自 12 月底以來，我們又贏得了兩場勝利，其中一項垂直領域的年度支出預計超過 7,500 萬美元。我們相信，我們預計全年完成的費用和其他勝利將為來年下半年帶來一些推動力。

It's also interesting to note that we've seen more balanced interest from hospital systems between MSP. and vendor-neutral programs, and we are strategically positioned to capitalize and grow share both these fronts.

同樣有趣的是，我們看到 MSP 之間的醫院系統的利益更加平衡。和供應商中立的計劃，我們的策略定位是利用這兩個面向並擴大份額。

Our focus for 2024, we are continuing to expand our client base and growing our relationships with existing clients through an expansion of services. And though we are always focused on driving efficiency, our plans for the coming year include leveraging both our offshore operations as well as continuing to invest in cutting edge technologies such as AI agents and robotic process automation. These efforts will allow us to lower costs, enhanced predictive job matching, improved talent sourcing and assess candidate suitability. I look forward to sharing our progress on these and many other initiatives on future calls.

2024 年的重點是，我們將繼續擴大客戶群，並透過擴展服務來發展與現有客戶的關係。儘管我們始終專注於提高效率，但我們來年的計劃包括利用我們的離岸業務以及繼續投資人工智慧代理和機器人流程自動化等尖端技術。這些努力將使我們能夠降低成本、增強預測性工作匹配、改善人才採購並評估候選人的適合性。我期待在未來的電話會議上分享我們在這些舉措以及許多其他舉措方面的進展。

Turning to the quarter, consolidated revenue was $414 million, which is above the high end of our guidance. And so adjusted EBITDA of $21 million, which was in our guidance range, it would have been even higher, had it not been for a charge to allowance for doubtful accounts, which will bill will cover in more detail as expected, travel revenue in the fourth quarter was down 12% sequentially on track with our expectations for both rates and volumes. Looking ahead, travel rates continued to stabilize and are trending in line with expectations. As we've called out previously, there remains a gap in expectations around bill rates with clients and pay rates were commissions on many orders impacting both our fill rate as well as our margins. As we navigate this dynamic, we will remain competitive in order to preserve our market share while balancing overall profitability.

談到本季度，合併收入為 4.14 億美元，高於我們指導的上限。因此，調整後的 EBITDA 為 2,100 萬美元，在我們的指導範圍之內，如果沒有對呆帳準備金進行收費，該數字會更高，該費用將按預期更詳細地涵蓋旅行收入第四季度環比下降12%，符合我們對費率和銷售的預期。展望未來，出行率持續穩定，趨勢符合預期。正如我們之前指出的那樣，與客戶的帳單費率的預期仍然存在差距，許多訂單的佣金支付率影響了我們的填充率和利潤率。當我們應對這種動態時，我們將保持競爭力，以保持我們的市場份額，同時平衡整體獲利能力。

Turning to our other business lines, physician staffing continued its strong performance with reported fourth quarter revenue up 26% year over year, quickly approaching an annual run rate of $200 million. Driving this was a combination of higher billable days and a improved mix of higher bill rates. Segment contribution income reflects the ongoing investments we are making in the business that we believe will drive organic growth and margin expansion to out 2024 for our education business continued to perform well, up 9% from the prior year and more than 50% from the third quarter following the start of the new school year. Our home care business was flat sequentially and year over year, but we exited the year on a solid trajectory. As we reported last quarter, we had five home care MSP wins and presently have nine programs in implementation on the backs of these wins. I believe this business will experience strong organic growth in 2024.

轉向我們的其他業務線，醫生人員配備繼續保持強勁表現，第四季度營收年增 26%，迅速接近 2 億美元的年運行率。推動這一趨勢的是更高的計費天數和更高的帳單費率的改進組合。部門貢獻收入反映了我們對該業務的持續投資，我們相信這些投資將推動到2024 年的有機成長和利潤率擴張，因為我們的教育業務繼續表現良好，比上年增長9%，比第三年成長超過50%新學年開始後的季度。我們的家庭護理業務環比和同比持平，但我們以穩健的軌跡結束了這一年。正如我們上季度報告的那樣，我們贏得了 5 項家庭護理 MSP 勝利，目前在這些勝利的支持下正在實施 9 個計劃。我相信該業務將在 2024 年實現強勁的有機成長。

Now turning to our outlook for the first quarter, given my earlier comments on the current market backdrop, including recent travel demand trends and industry-wide margin pressure, we anticipate that first quarter revenue will be between $370 million and $380 million, with adjusted EBITDA coming in at $13 million to $18 million. As a reminder, the annual reset and payroll taxes compresses margins at the beginning of the calendar year. I wanted to stress as we work through the current market climate, we are taking actions to drive organic growth and margin expansion in addition to ramping recent vendor neutral MSP wins across acute care and payer settings, we will continue to diversify Physician Staffing into higher-margin modalities as well as seek to capitalize on our growth in education, the geographic expansion is even more. Additionally, we remain diligent on the M&A front with a goal to close on several accretive acquisitions that can further enhance our value proposition and diversify our platform into larger, higher margin offers. Looking ahead, we will continue to balance investments that serve to further diversify and differentiate cross country with necessary cost savings to preserve profitability such as levering leveraging our operations in India. In fact, I just came back from India where we held our 2024 company-wide kickoff, coupled with the enhanced productivity and efficiency gains we are seeing through technology investments. I remain confident in our ability to drive long-term, sustainable, profitable growth, and we intend to remain focused on increasing shareholder value by leveraging our balance sheet and through the deployment of capital, including additional share repurchases, ongoing technology investments and potential M&A opportunity.

現在轉向我們對第一季的展望，鑑於我先前對當前市場背景的評論，包括最近的旅遊需求趨勢和全行業的利潤壓力，我們預計第一季營收將在3.7 億美元至3.8 億美元之間，調整後的EBITDA收入為1300萬至1800萬美元。提醒一下，年度重置和薪資稅會壓縮年初的利潤率。我想強調的是，在我們應對當前市場環境的過程中，我們正在採取行動推動有機增長和利潤擴張，除了在急性護理和付款人環境中增加最近供應商中立的MSP 勝利之外，我們將繼續將醫師人員配置多元化到更高的領域利潤模式以及尋求利用我們在教育方面的成長，地理擴張甚至更多。此外，我們在併購方面仍然勤奮，目標是完成幾項增值收購，這些收購可以進一步增強我們的價值主張，並使我們的平台多元化，提供更大、更高的利潤率。展望未來，我們將繼續平衡有助於進一步實現跨國多元化和差異化的投資，並節省必要的成本以保持獲利能力，例如利用我們在印度的業務。事實上，我剛從印度回來，我們在那裡舉行了 2024 年全公司範圍的啟動儀式，並且透過技術投資看到了生產力和效率的提高。我對我們推動長期、永續、獲利成長的能力仍然充滿信心，我們打算繼續專注於透過利用我們的資產負債表和資本部署（包括額外的股票回購、持續的技術投資和潛在的併購）來增加股東價值機會。

In closing, we are confident that our prospects for 2024. Outside of the broader pressures and travel, we are seeing strong momentum within Telephonics, locums education and our home care business. The team continues to execute at a very high level and none of this is possible without our devoted employees. We were recently named a 2023 winner of Best Company culture and the best company for diversity by comparables these recognitions see something about our tapestry of culture that we work so hard to pull making cross country the employer destination of choice. I would to thank all of our employees and our health care professionals for your continued hard work and contributions as well as our shareholders for leading the Company.

最後，我們對 2024 年的前景充滿信心。除了更廣泛的壓力和旅行之外，我們還看到電話、臨時教育和家庭護理業務的強勁勢頭。團隊繼續以非常高的水平執行，如果沒有我們敬業的員工，這一切都是不可能的。最近，我們被評為 2023 年最佳公司文化獎和最佳多元化公司獎，這些認可體現了我們努力打造的文化，使越野成為雇主的首選目的地。我要感謝我們所有的員工和醫療保健專業人員的持續辛勤工作和貢獻，以及我們的股東對公司的領導。

With that, let me turn the call over to Bill.

接下來，讓我把電話轉給比爾。

Thanks, John, and good afternoon, everyone. As John highlighted, our fourth quarter performance was largely in line with expectations, with revenue slightly exceeding the high end of our guidance range and adjusted EBITDA within our range. The outperformance on revenue was mainly attributed to better than expected performance across both education and physician staffing as well as several million dollars from a labor disruption. Consolidated revenue for the fourth quarter of $414 million was down 6% sequentially and 34% over the prior year, driven by the continued normalization in both travel demand and bill rates. I'll get into more details on the segments in just a couple of minutes.

謝謝約翰，大家下午好。正如約翰所強調的那樣，我們第四季度的業績基本上符合預期，收入略高於我們指導範圍的上限，調整後的 EBITDA 在我們的範圍內。收入的優異表現主要歸因於教育和醫生人員配置的表現優於預期，以及勞動力中斷帶來的數百萬美元的損失。受旅遊需求和帳單費率持續正常化的推動，第四季綜合收入為 4.14 億美元，比上一季下降 6%，比上年同期下降 34%。我將在幾分鐘內詳細介紹這些部分。

Gross profit for the quarter was $91 million, which represented a gross margin of 21.9%. Gross margin was down 10 basis points sequentially and 20 basis points over the prior year, due primarily to the tightening of the bill pay spreads for travel assignments and was partly offset by certain burdens like workers' comp and health insurance.

該季度毛利為 9,100 萬美元，毛利率為 21.9%。毛利率環比下降 10 個基點，比上年下降 20 個基點，這主要是由於差旅任務的賬單工資利差收緊，但部分被工人補償和健康保險等某些負擔所抵消。

Moving down the income statement, selling, general and administrative expense was $68 million, down 3% sequentially and 17% over the prior year. The majority of the decrease relates to lower salary and benefit costs associated with our reductions in headcount as well as lower variable compensation following the historic performance throughout the pandemic in 2023, three, we reduced our US headcount by approximately 22% while continuing to invest in technology and areas of the business with the highest growth potential since the start of 2024, we have reduced our headcount by an additional 8% with plans for further reductions as we proceed throughout the coming year as we called out to the extent we are unable to automate processes in the near term, we're seeking to leverage our center of excellence in India to support our shared service teams over the last several quarters, we've grown our headcount in India by nearly 30%, and we expect to double that investment in 2024 just give you some context for every 100 physician staff in India, we save approximately $3 million annually as bill pay spreads remain compressed amid softer demand. We continue to emphasize the importance of continuous productivity and efficiency gains. We are looking across the entire organization to identify opportunities to drive margins higher and to reduce our overhead while balancing investments in capacity for future growth based on cost actions taken to date as well as lower compensation associated with the sequential decline in revenue, we anticipate total SG&A will decline in the mid-single digits for the first quarter as a percent of revenue, SG&A was 16% in the fourth quarter, flat sequentially and up from 13% in the prior year. Our goal is to exit the year with an SG&A of 15% through a combination of organic top line growth as well as by leveraging our offshore operations, executing targeted cost savings and the further deployment of technology. For instance, the first phase of our ERP project is set to launch in Q2. And as phases are completed, we should have more opportunities to drive efficiencies. We reported adjusted EBITDA of $21 million, representing an adjusted EBITDA margin of 5%. Though revenue was above the high end of our expectations. Our adjusted EBITDA was impacted by an increase in our bad debt expense, one of our MSP clients has fallen behind on payments per share for services rendered throughout the pandemic, leading to deterioration in the aging that requires to take an additional reserve of $2 million for that specific account. We continue to have ongoing dialogue with the client and we've negotiated a payment plan that we believe will recover the remainder of the balance in the coming quarters as revenue would decline as wound down throughout 2023, we do not anticipate a drag on top line performance in 2024. We will continue to monitor the situation closely and look forward to provide updates on future calls. Excluding the bad debt charge, we would have reported approximately $23 million in adjusted EBITDA, representing a 6% adjusted EBITDA margin for the quarter. Our goal remains achieving a high single to low double digit adjusted EBITDA margin, and we continue to believe we can attain it over time. Since we're managing this business towards long term sustainable profitability profitability, we must continue to make certain investments in our digital platforms as well as to ensure we have the capacity to be ready to capitalize when the travel market turns.

從損益表來看，銷售、一般和管理費用為 6,800 萬美元，季減 3%，比上年下降 17%。減少的主要原因是與我們減少員工人數相關的工資和福利成本降低，以及繼2023 年整個大流行期間的歷史表現之後可變薪酬的降低，三，我們將美國員工人數減少了約22%，同時繼續投資於由於自 2024 年初以來增長潛力最大的技術和業務領域，我們已將員工人數額外減少了 8%，併計劃在明年繼續裁員，因為我們呼籲我們無法在短期內實現流程自動化，我們正在尋求利用我們在印度的卓越中心來支持我們在過去幾季的共享服務團隊，我們在印度的員工人數增加了近30%，我們預計將增加一倍2024 年的投資只是為您提供印度每100 名醫生的一些背景信息，我們每年節省約300 萬美元，因為在需求疲軟的情況下，賬單支付差額仍然受到壓縮。我們持續強調持續提高生產力和效率的重要性。我們正在整個組織範圍內尋找機會，以提高利潤率並減少管理費用，同時根據迄今為止採取的成本行動以及與收入連續下降相關的較低薪酬來平衡未來增長的產能投資，我們預計總計第一季度的SG&A 佔營收的百分比將下降到中個位數，第四季的SG&A 為16%，與上一季持平，高於去年的13%。我們的目標是透過有機營收成長以及利用我們的離岸業務、執行有針對性的成本節約和進一步部署技術，以 15% 的銷售管理費用 (SG&A) 結束這一年。例如，我們的 ERP 專案的第一階段定於第二季啟動。隨著階段的完成，我們應該有更多的機會來提高效率。我們報告調整後 EBITDA 為 2,100 萬美元，調整後 EBITDA 利潤率為 5%。儘管收入超出了我們預期的上限。我們調整後的 EBITDA 受到壞帳費用增加的影響，我們的一位 MSP 客戶在整個大流行期間未能按每股付款支付所提供的服務，導致賬齡惡化，需要額外提取 200 萬美元的準備金那個特定的帳戶。我們繼續與客戶進行持續對話，並協商了一項付款計劃，我們相信該計劃將在未來幾季收回剩餘餘額，因為收入將隨著 2023 年的縮減而下降，我們預計不會拖累營收2024年的表現。我們將繼續密切關注事態發展，並期待在未來的通話中提供最新情況。不包括壞帳費用，我們報告的調整後 EBITDA 約為 2,300 萬美元，相當於本季調整後 EBITDA 利潤率為 6%。我們的目標仍然是實現高個位數到低兩位數的調整後 EBITDA 利潤率，並且我們仍然相信隨著時間的推移我們可以實現這一目標。由於我們正在管理這項業務，以實現長期可持續的盈利能力，因此我們必須繼續對我們的數位平台進行一定的投資，並確保我們有能力在旅遊市場轉變時做好資本化的準備。

Interest expense in the fourth quarter was $600,000, which was down 12% sequentially. And 83% from the prior year. The decline was entirely driven by lower average borrowings throughout the quarter. The majority of the interest expense reported for the fourth quarter was related to the carrying cost for the ABL and fees on our outstanding letters of credit. The effective interest rate on amounts drawn under our ABL was 7% as of December 31st.

第四季利息支出為 60 萬美元，季減 12%。與上一年相比增加了 83%。下降完全是由於整個季度平均借款下降所致。第四季報告的大部分利息支出與 ABL 的帳面成本和我們未償還信用證的費用有關。截至 12 月 31 日，根據我們的 ABL 提取金額的實際利率為 7%。

And finally, on the income statement, income tax expense was $4 million net of some discrete items, representing an effective tax rate of 30%, essentially in line with expectations. Our overall performance resulted in adjusted earnings per share of $0.29 near the midpoint of our guidance.

最後，在損益表上，扣除一些離散項目後，所得稅費用為 400 萬美元，相當於 30% 的有效稅率，基本上符合預期。我們的整體業績導致調整後每股收益為 0.29 美元，接近我們指導價值的中點。

Turning to the segments, Nurse and Allied reported revenue of $367 million, down 7% sequentially and 38% from the prior year. Our largest business, Travel, Nurse and Allied was down 12% sequentially and 44% over the prior year. Bill rates for travel were down 4% sequentially, while billable hours were down 8%. Looking to the first quarter, we expect travel to decline sequentially in the low double digit range, driven primarily by continued softness in travel demand with bill rates declining in the low single digits after seeing travelers rise modestly throughout the second half of last year. We've seen another pullback coming into the start of 2024. This seems to be an industry-wide issue across most specialties and geographies. And while orders from existing clients may rebalance we believe that our recent wins will continue ramp, providing a catalyst to regrow. Our travelers on assignment are local or per diem business continued to feel the impact from the softness in demand as well as the timing of the holidays. Fourth quarter revenue was down 29% from the prior year, so up about 1% sequentially due in part to the labor disruption I mentioned earlier, the majority of the year-over-year decline comes from a reduction in billable hours as rates were down about 2% over the prior year. Also within the Nurse and Allied segment, our education business reported 9% year-over-year growth and was up 50% sequentially following the start of the new school year. Finally, physician staffing, once again, delivered a strong top line reporting $47 million of revenue, which was up 26% over the prior year and 3% sequentially. The primary driver for the growth was a rise in the number of days filled across specialties such as anesthesiologists, CRNAs and nurse practitioners and to a lesser extent, an increase in the average revenue per day filled Turning to the balance sheet. We ended the year with $17 million in cash and no outstanding debt with the health of our balance sheet and strong cash flow. And we remain well positioned to make further investments in technology and accretive acquisitions as well as to continue repurchasing shares under our $100 million share repurchase plan from a cash flow perspective, we generated $12 million in cash from operations in the fourth quarter, bringing the full year cash from operations to $249 million. Our strongest year in company history and driven in large part by collections and reductions in net working capital. Dso was 68 days, down four days since the start of the year, and excluding the impact from the single MSP client I mentioned earlier, our DSO would have been 62 days, much closer to our target. Our goal remains to bring DSO below 60 days which is more in line with our historic performance before the pandemic and believe we can get there and make progress to that throughout the coming quarters.

至於細分市場，Nurse and Allied 報告營收為 3.67 億美元，比上一季下降 7%，比上年下降 38%。我們最大的業務——旅行、護士和聯合業務比上一季下降 12%，比上年下降 44%。差旅費用較上季下降 4%，計費時間下降 8%。展望第一季度，我們預計旅行將在低兩位數範圍內連續下降，這主要是由於旅行需求持續疲軟，去年下半年旅客數量小幅增長後，賬單費率將下降至低個位數。我們看到 2024 年初將出現另一次回檔。這似乎是大多數專業和地區的全行業問題。儘管現有客戶的訂單可能會重新平衡，但我們相信我們最近的勝利將繼續增加，從而為重新成長提供催化劑。我們的外派旅客是本地旅客或按日津貼業務的旅客，他們繼續感受到需求疲軟以及假期時間的影響。第四季營收較上年同期下降 29%，季增約 1%，部分原因是我之前提到的勞動力中斷，同比下降的主要原因是費率下降導致計費時間減少比上年增長約2% 。同樣在護理師和相關部門，我們的教育業務年增 9%，新學年開始後較上季成長 50%。最後，醫生人員配置再次帶來了強勁的營收，收入為 4,700 萬美元，比上年增長 26%，比上一季增長 3%。成長的主要驅動力是麻醉師、CRNA 和護理師等專業的工作天數增加，以及較小程度上每日平均收入的增加。轉向資產負債表。年底，我們擁有 1,700 萬美元現金，沒有未償債務，資產負債表狀況良好，現金流強勁。從現金流的角度來看，我們仍然有能力在技術和增值收購方面進行進一步投資，並根據我們的1 億美元股票回購計劃繼續回購股票，我們在第四季度從營運中產生了1200 萬美元的現金，使年營運現金達到 2.49 億美元。這是公司歷史上表現最強勁的一年，這在很大程度上是由淨營運資本的收回和減少所推動的。DSO 為 68 天，比年初以來減少了 4 天，如果排除我之前提到的單一 MSP 客戶的影響，我們的 DSO 將是 62 天，更接近我們的目標。我們的目標仍然是使 DSO 低於 60 天，這更符合我們在大流行之前的歷史表現，並相信我們可以實現這一目標，並在未來幾個季度取得進展。

Cash used in investing activities was $3 million, primarily reflecting investments in our tech initiatives such as telephone experienced in our newer ERP system. From a financing activity perspective, we repurchased an additional 300,000 shares during the quarter under both our 10B. 51 and our 10b-18 trading plans.

投資活動使用的現金為 300 萬美元，主要反映了對我們的技術計劃的投資，例如我們新的 ERP 系統中的電話。從融資活動的角度來看，我們在本季根據 10B 計劃額外回購了 300,000 股股票。 51 和我們的 10b-18 交易計劃。

And this brings me to our outlook for the first quarter. We're guiding to revenue of between $370 million and $380 million, representing a sequential decline of 8% to 11%, driven predominantly by the expected decline in both billable hours and rates for travel, we're guiding to an adjusted EBITDA range of between $13 million nd $18 million, representing an adjusted EBITDA margin of approximately 4% at the midpoint of guidance. Adjusted earnings per share is expected to be between $0.15 and $0.25 based on an average share count of 34 million shares. Also assumed in this guidance of the gross margin of between 21% and 21.5%, interest expense of $500,000, depreciation, amortization of $5 million, stock comp of $2 million and an effective tax rate of between 32% and 33%.

這讓我想到了我們對第一季的展望。我們預計營收將在 3.7 億美元至 3.8 億美元之間，比上一季下降 8% 至 11%，這主要是由於計費時間和差旅費率的預期下降所致。我們預計調整後的 EBITDA 範圍為介於1300 萬美元至1800 萬美元之間，調整後的EBITDA 利潤率為指導中位數的約4%。根據 3,400 萬股平均股數計算，調整後每股盈餘預計在 0.15 美元至 0.25 美元之間。本指南也假設毛利率在 21% 至 21.5% 之間，利息支出為 50 萬美元，折舊、攤提為 500 萬美元，股票補償為 200 萬美元，有效稅率為 32% 至 33%。

And that concludes our prepared remarks, and we'd now like to open the lines for questions.

我們準備好的發言就到此結束，現在我們開始提問。

Operator in queue, we will now begin the question and answer session. What one can meet your phone and record your name. Clearly you need to withdraw you again to ask a question, please press star first from there, your line is open.

接線員在隊列中，我們現在開始問答環節。哪一個可以接你的手機並記錄你的名字。顯然您需要再次退出才能提問，請先按星號，您的線路已開通。

Great, thanks. And I guess I just wanted to follow up on some of the comments you made about now. Things will trend throughout the year. I guess you talked about sequential growth in Q2 in second half of the year, which I guess means you think that Q2 will be down sequentially versus Q1. Is that the right way to think about it?

萬分感謝。我想我只是想跟進您現在發表的一些評論。全年情況都會有趨勢。我想您談到了下半年第二季的環比成長，我想這意味著您認為第二季將比第一季環比下降。這是正確的思考方式嗎？

Kevin, it's Bill. I don't we're not giving guidance for Q2 at this point. But based on how we come into the year with demand, it's a possibility that we could see a sequential decline going to the second quarter. But it all it all depends on how much of that is travel because we still seeing great growth across other parts of the business. So we're not going to call out Q2 just yet as to whether it's sequentially down or up. But as we look at the back half. And as we expect our rate, our wins to ramp our that's kind of our lens looking at when we think the travelers on assignment will start to regrow on China.

凱文，是比爾。我不認為我們目前不會為第二季度提供指導。但根據我們今年的需求情況，我們有可能看到第二季的連續下降。但這一切都取決於其中有多少是旅行，因為我們仍然看到其他業務部門的巨大成長。因此，我們暫時不會指出第二季是連續下降還是上升。但當我們看後半部時。正如我們預期的那樣，當我們認為執行任務的旅行者將開始在中國重新成長時，我們的鏡頭就會增加我們的勝利。

Yes, Kevin, this is John. I would just add, yes, it's getting a sense now that we're getting back to that cyclical nature of this industry back to pre-COVID, where you're going to see traditionally a little bit of a dip in Q2 from Q1. But I do think with the recent wins that we've had on the MSP. and VMS. side with the diversification of our businesses, as Bill mentioned, in the growth, there's an opportunity to buck that trend in Q2.

是的，凱文，這是約翰。我想補充一點，是的，現在我們正在回到這個行業的周期性，回到新冠疫情之前，傳統上你會看到第二季度比第一季略有下降。但我確實認為我們最近在 MSP 上取得的勝利。和VMS。正如比爾所提到的，隨著我們業務的多元化，在成長方面，第二季有機會扭轉這一趨勢。

Okay. I guess then when you say the second half is going to ramp then are you assuming then that from an industry perspective, things are going to be flattish and that's your wins that get you to growth or is it? Is it a combination of the industry starting to pick up again about that?

好的。我想，當你說下半年將會加速時，你是否假設從行業的角度來看，事情會變得平淡，而這就是你的勝利讓你實現增長的，或者是這樣嗎？這是業界開始再次復甦的結合嗎？

You know, I think the way to look at it is as we start looking at the macro data, right? And looking at you have centers and hospitals are still remaining high and increasing looking at the Affordable Care Act and seeing that, look, we had in 2010 there was 16% of the nation didn't have insurance and now it's a 7%, 7.2% number is you still have this this fundamental shortage of nurses and we're seeing that demand, we think demand will start to pick up at one point. In your note, I wish I had that crystal ball saying does demand from a market standpoint start picking up it sometime in the second quarter is the end of second quarter is in the third quarter. It's hard to forecast when that happens, but what we're confident about is how we're executing on the business, winning more deals. And so part, to answer your question is part of it is yes, we think we can outperform the market based upon the deal to winning based how we're really looking at executing above the market in many of our segments and then add that to hopefully some market tailwinds. And then we're in a great place, but we do think that we can buck the market trend just on our wins on our MSPs have EMSs.

你知道，我認為看待它的方法是我們開始關注宏觀數據，對吧？看看你的中心和醫院仍然保持在高水平並且在增加，看看《平價醫療法案》，看看，2010 年，全國有 16% 的人沒有保險，現在這個數字是 7%，7.2 ％數字是，護士的基本短缺仍然存在，我們看到了這種需求，我們認為需求將在某個時刻開始回升。在你的筆記中，我希望我有一個水晶球說，從市場的角度來看，需求是否會在第二季的某個時候開始回升，即第二季末或第三季。很難預測這種情況何時發生，但我們有信心的是我們如何執行業務，贏得更多交易。所以，回答你的問題的一部分是肯定的，我們認為我們可以根據交易來超越市場，以獲勝，根據我們真正考慮在許多細分市場中執行高於市場的方式，然後將其添加到希望能帶來一些市場順風。然後我們就處於一個很好的位置，但我們確實認為，僅僅依靠我們在擁有 EMS 的 MSP 上的勝利，我們就可以逆市場趨勢而行。

And Kevin, just to add a little more color to that. As you look at the macro conditions in the market, the demand today as a snapshot remains below the pre-pandemic, get contingent usage by our clients is still higher so there's some misalignment out there right now that we do think that the demand will rebound. And I'll just give you a little retrospective on 2023, we saw sharp drop in the first quarter and it kind of bounce back as we got into the second quarter and then remain steady, probably ticking up throughout the second, third and fourth quarters. And so this is a pretty significant step down. It doesn't seem to be something that is that there's a structural change in the market that would have led to that kind of a demand falloff. So that does feel a little bit perhaps of an overcorrection or a timing issue that we think can work its way back.

凱文，只是為了讓它增添一點色彩。當您觀察市場的宏觀狀況時，今天的需求作為一個快照仍然低於大流行前，我們客戶的偶然使用量仍然較高，因此目前存在一些偏差，我們確實認為需求將會反彈。我只是對 2023 年進行一些回顧，我們在第一季度看到急劇下降，進入第二季度後有所反彈，然後保持穩定，可能在第二、第三和第四季度有所上升。所以這是一個非常重要的下降。市場結構性變化似乎不會導致這種需求下降。因此，這確實讓人感覺有點矯枉過正，或是我們認為可以解決的時間問題。

Okay. And then just to just to make sure I understand how you guys talk about deals. You talked about the spend under management of 125 and then another couple of wins of 75 are those MSP. So we should think about those as like revenue numbers or is that a mix of MSP, VMS. And so it's not necessarily a revenue way to think about it.

好的。然後只是為了確保我理解你們如何談論交易。您談到了 125 場管理下的支出，然後另外幾場 75 場勝利就是那些 MSP。因此，我們應該將這些視為收入數字，或是 MSP、VMS 的組合。因此，這並不一定是一種收入方式。

It's a mix of VMS than vendor-neutral MSPs or any other vendor neutral side willing to capture somewhere in that 30% range can be a little bit higher and on the MSP side unit capture your traditional? We capture somewhere between 65% and 70%.

它是 VMS 的混合體，而不是供應商中立的 MSP 或任何其他願意捕獲 30% 範圍內某個位置的供應商中立方，並且在 MSP 側單元上捕獲您的傳統？我們捕獲了 65% 到 70% 之間的數據。

Okay. Thank you.

好的。謝謝。

You. Our next question comes from Brian Tanquilut with Jefferies.

你。我們的下一個問題來自 Jefferies 的 Brian Tanquilut。

Your line is open.

您的線路已開通。

Hey, good afternoon, guys. John, I know one of your comments you talked about you're kind of keeping market share. And so just curious, how are you weighing that balancing market share maintenance and maybe gains versus maintaining the margins? And maybe a follow-up to that, Bill, where do you think margins eventually shake out, assuming that we return to Telegate normalized level of demand?

嘿，下午好，夥計們。約翰，我知道您談到的一項評論是保持市場份額。所以我很好奇，您如何權衡市場份額的維持以及收益與維持利潤之間的平衡？也許是後續行動，比爾，假設我們回到 Telegate 正常化的需求水平，您認為利潤率最終會在哪裡波動？

Well, Brian, this is John. Yes, the market is going to do what the market's going to do right now. And so that does put margin pressure on us as there is a as demand softens, right more people are going after the same jobs. So it does create of some bit of a margin pressure on. And so of course, that's how we want to balance, making sure that we're competitive in the market, but we also want to maintain our profitability. And so that's when we talk about the balance and we think we're doing a good job right now with that. And I think that's evidenced by the wins we've had. And we're not it's not and we are definitely not buying the business. We're working on good margins. It's just as an industry, the margins are moving down as a whole.

嗯，布萊恩，這是約翰。是的，市場將會做市場現在要做的事情。因此，這確實給我們帶來了利潤壓力，因為隨著需求疲軟，更多的人會追求同樣的工作。因此，它確實造成了一些利潤壓力。當然，這就是我們想要平衡的方式，確保我們在市場上具有競爭力，但我們也希望保持我們的獲利能力。這就是我們談論平衡的時候，我們認為我們現在在這方面做得很好。我認為我們所取得的勝利就證明了這一點。我們不是，我們絕對不會購買該業務。我們正在爭取良好的利潤。就像一個行業一樣，整體利潤率正在下降。

Yes, Brian, I'll just I'll add. You mentioned about how demand has stabilized and then it kind of dropped off. The one interesting note underneath that is that when you look at the open order rates, the bill rates, they've remained fairly steady for quite some time. And this is looking at a subset of where we have some critical mass across ICU and MedSurg that the majority of our demand, the large blocks and you look at what's your what's happened to the lock rate, the rate of the orders that you're closing on and what's happening is you're seeing we're starting to see a narrowing in the spread. So in other words, we're having to lock at lower rates, which you're not going to necessarily be able to pay below market on the nurse compensation of the clinicians compensation in particular because meals, incidentals and lodging are dictated by the markets they're going to. So you you'd naturally will have some margin compression now, does that foreshadow a longer tail to the margin compression. I think there's things that the company can certainly do to mitigate that. Number one is we're still migrating intensify across our managed service program stack where about 80% converted. I think there's another $1 million of savings roughly to be garnered from that. And then I think we're growing where we are growing in higher margin businesses like in the homecare and in our education business line. So I think we've got the opportunity to see consolidated margins grow. I don't have a lens as to what happens to the pay bill spreads over time. I would hope that at some point in the future we would be able to see some bill rate improvement. But for now that's certainly not the market conditions we find ourselves in.

是的，布萊恩，我補充一下。您提到需求是如何穩定下來然後又有所下降的。下面一個有趣的註釋是，當您查看未結訂單費率和帳單費率時，它們在相當長的時間內保持相當穩定。這是我們在 ICU 和 MedSurg 中擁有一些臨界質量的一個子集，我們的大部分需求，大塊，你看看你的鎖定率發生了什麼，你的訂單率即將結束，正在發生的事情是，我們開始看到利差縮小。換句話說，我們必須鎖定較低的費率，您不一定能夠以低於市場的價格支付臨床醫生的護士薪酬，特別是因為膳食、雜費和住宿是由市場決定的他們會的。因此，您現在自然會進行一些邊際壓縮，這是否預示著邊際壓縮的尾部更長。我認為公司當然可以採取一些措施來緩解這種情況。第一是我們仍在整個託管服務程式堆疊中進行強化遷移，其中約 80% 已完成轉換。我認為大約還可以節省 100 萬美元。然後我認為我們正在成長高利潤業務，例如家庭護理和教育業務線。因此，我認為我們有機會看到綜合利潤率的成長。我不知道隨著時間的推移，薪資會發生什麼變化。我希望在未來的某個時候我們能夠看到帳單利率有所改善。但目前我們所處的市場狀況絕對不是這樣。

And I appreciate and my follow-up as I think about locums, right, it seems like you're seeing pretty healthy growth there. What would it take to continue driving that growth or maybe even expand it like does it have to be acquisition driven versus contractor? Or does it take more investment to grow that locums segments?

我很欣賞我的後續行動，因為我想到了代理，對吧，你似乎看到了相當健康的增長。怎樣才能繼續推動這種成長，甚至擴大成長，就像它必須由收購驅動而不是承包商一樣？或者是否需要更多的投資來擴大這些細分市場？

Yes. Well, we do love the space of locums. And of course, M&A is definitely a part of where we look at our strategy. But we've invested quite a bit of money over the past couple of years to build the team where it is today. So when you look at contribution income, it's not sort of lower than we wanted to be right now because that's because we've made the investments. So we feel that there's lots of We have lots of capacity ability to ramp this business currently on and improve that bottom line margin and increase and increase the business. But when we look at, we're approaching a $200 million company in Locums for us to get to that next level because you have $1 billion. I think that's going to require acquisitions to get to that level.

是的。嗯，我們確實喜歡座位空間。當然，併購絕對是我們策略的一部分。但在過去的幾年裡，我們投入了大量資金來建立今天的團隊。因此，當你看看繳款收入時，它並不低於我們現在想要的水平，因為那是因為我們已經進行了投資。因此，我們認為我們有很多能力來擴大目前的業務並提高底線利潤率並增加和增加業務。但當我們觀察時，我們正在與 Locums 一家價值 2 億美元的公司接洽，以達到下一個水平，因為你有 10 億美元。我認為這需要收購才能達到這個水平。

Got it. Thank you.

知道了。謝謝。

Thank you. We'll hear from Trevor Romeo with William Blair.

謝謝。我們將聽取特雷弗·羅密歐和威廉·布萊爾的演講。

Yes, hi. Good evening. That Thanks for taking the questions. First one is just kind of on client sentiment regarding contract labor. I think maybe it seems like individual hospitals might be in a variety of different spots in terms of how far they've reduced contract labor spend, some may be all the way back to pre pandemic. Maybe some aren't I guess if you could maybe just generalize your client base more broadly, I guess, does it feel like it's kind of tilted one way or the other in terms of being content with current spend rates or wanting to reduce further or any kind of way you could summarize where your clients are at more broadly?

是的，嗨。晚安.感謝您提出問題。第一個是客戶對合約工的看法。我認為，各個醫院在減少合約勞動力支出方面可能處於不同的位置，有些醫院可能會一直回到大流行前。也許有些不是，我想如果你可以更廣泛地概括你的客戶群，我想，在滿足當前的支出率或想要進一步減少或您可以通過什麼方式更廣泛地總結您的客戶的情況？

Yes. Let's take a break because every client a little bit different, but let's take a broad view of Broadview is clients for the most part. What we're seeing there, content I see is a good way to put it with where their labor spend is right now, the number of travelers they have out there, they are looking for ways for us to continue to help them save money, but sometimes it's not through travel. It's through maybe helping them with their core staff. It's helping them with their internal resource pool. So we can maximize from there their internal people, which will again, I think a little bit off the travel side. But in general, on the broad stroke, I think what we're seeing from our clients is they're fairly contended with the number of travelers they have now I think everyone would like to if I save a little bit of money a little bit more, but they also come to the realization from the realization that you can only go so far down and that if you want to make sure you have the number of beds opened, if you want to be sure you have the right patient that patient in this ratio, if you want to make sure that you have the nurses at the bedside, taking care of the patients in the community, you need a certain level of travelers and I think we've kind of hit that that point. And I think that's where when we look at saying, when do we see the bottom of this and we're saying, hey, again, not having that crystal ball, which I wish I had. It's coming some time in from now to the back half of the year, and then we start seeing that sequential growth so I think yes, we're almost there at that point.

是的。讓我們休息一下，因為每個客戶都有點不同，但讓我們從廣泛的角度來看 Broadview 的大部分客戶。我們在那裡看到的，我看到的內容是一個很好的方式來說明他們現在的勞動力支出情況，他們在那裡的旅行者數量，他們正在尋找我們繼續幫助他們省錢的方法，但有時不是透過旅行。也許是透過幫助他們的核心員工。它正在幫助他們利用內部資源庫。因此，我們可以從那裡最大限度地利用他們的內部人員，我認為這又會有點偏離旅行方面。但總的來說，我認為我們從客戶那裡看到的是，他們對現在的旅客數量相當滿意，我想如果我能省一點錢，每個人都會願意更多，但他們也意識到，你只能走這麼遠，如果你想確保你有開放的床位數量，如果你想確保你有合適的病人，那就是病人這個比例，如果你想確保有護士在床邊照顧社區的病人，你需要一定水平的旅行者，我認為我們已經達到了這一點。我認為這就是當我們說，我們什麼時候看到事情的底部時，我們會說，嘿，再說一次，沒有那個水晶球，我希望我有。從現在到今年下半年的一段時間，然後我們開始看到連續的成長，所以我認為是的，我們已經快到那個點了。

Okay. Thanks. Thanks, John. That's helpful. And then as you look into Q1, I think the sequential revenue drop you're guiding to is quite a bit below what you typically would see Q1 over Q4. I think it's also below what maybe some of your competitors are expecting in Q1 in terms of a sequential change there. So just wondering if you could maybe trying to square those differences at all as we speak and maybe your level of conservatism in the guidance.

好的。謝謝。謝謝，約翰。這很有幫助。然後，當您查看第一季時，我認為您所指導的連續收入下降幅度遠低於您通常看到的第一季與第四季的情況。我認為，就連續變化而言，這也低於一些競爭對手對第一季的預期。因此，我想知道您是否可以在我們發言時嘗試消除這些差異，以及您在指南中的保守程度。

Yes, Brian, Trevor, I'll start to give it a shot. When you look at the trial, the sequential decline that's implied in the guidance, it's almost exclusively on the travel side, right? So we've talked about the fall-off in demand. So we're looking at that to say it how is our net weeks booked progressing. And that's our internal metric for how we see the production one of the things that's interesting is even though the demand is down, we're still we're still looking at a fairly consistent rate overall for the start of the first quarter. I would not say there's an air of conservatism. I think travel is the one line of business. We have a pretty good lens because of the length of the assignments. And so I think it really is not something that I'm anticipating to see a huge in variance to what we've guided on the travel side. There is opportunity now, of course, you know that it's the start of the restart of the school year as we come into the winter session or the fall the spring session, we can sometimes see a little bit of an uptick on the education side of the business. But I don't know, John, if you have anything else you want to throw in there?

是的，布萊恩，特雷弗，我會開始嘗試。當你看一下試驗時，指導中暗示的連續下降，幾乎完全是在旅行方面，對吧？我們已經討論了需求下降的問題。因此，我們正在研究這一點，以說明我們的淨週預訂進度如何。這是我們如何看待生產的內部指標，有趣的是，即使需求下降，我們仍然看到第一季初的整體產量相當穩定。我不會說有保守主義的氣氛。我認為旅行是一項業務。由於任務的長度，我們有一個非常好的鏡頭。因此，我認為這確實不是我期望看到的與我們在旅行方面指導的內容存在巨大差異的事情。當然，現在有機會，你知道，當我們進入冬季學期或秋季春季學期時，這是學年重新開始的開始，我們有時可以看到教育方面的一點點上升這生意。但我不知道，約翰，你還有什麼想丟進去的嗎？

I'd say February that I think when you look at you said, hey, how we compare to our competitors. I think when you look at the growth we had over the last several years in 21 and 22 in 2021 stands at the staffing industry. Analysts is kind of how we kind of judge the market rate. And our growth from the market grew at 105%, and we grew at 100%. You got to remember, we're going through our digital transformation. We were really reforming the company and but really creating a new roadmap and vision for the company. And that happened in 19 and 20. And then in 21, we go from newly built nearly being at market. And then in 2022, the market grew at 45% and cross country grew at 67%, clearly beating the market. And if you actually look in at the travel nurse and travel allied in particular, those numbers are actually a higher percentage of growth in 22 and 23. We're not going to be able to see what Stephanie energy analyst has where the market has has come down to because they report that in sometime in the summer. And what we do see that I'm confident that we're going to show that we once again have outpaced the market even as the market is going down. So I think that's one area.

我想說二月，我想當你看著你說，嘿，我們與競爭對手相比如何。我認為，當你看看過去幾年我們在 21 和 22 到 2021 年的成長時，就看到了人力資源產業的成長。分析師是我們判斷市場利率的一種方式。我們來自市場的成長成長了105%，我們的成長也成長了100%。您必須記住，我們正在經歷數位轉型。我們確實在改革公司，但也確實為公司製定了新的路線圖和願景。那發生在19和20年。然後到了21年，新建的建築幾乎就要投入市場了。然後到 2022 年，市場成長率為 45%，越野成長率為 67%，明顯跑贏了市場。如果你真正專注於旅行護理師和旅行聯盟，你會發現這些數字實際上在 22 和 23 中成長百分比更高。我們將無法看到史蒂芬妮能源分析師對市場的看法，因為他們在夏季的某個時候報告了這一點。我們所看到的，我相信我們將再次證明，即使市場正在下跌，我們也已經超越了市場。所以我認為這是一個領域。

And the other thing, when you look to our competitors, sometimes we grew so fast in the pandemic in Nurse and Allied and maybe even a little bit more diversified. So you're going to see a little bit of difference in that and the other thing is I think when you look at those numbers, you have to also look at acquisitions that happened in that time period to make sure you're comparing apples to apples.

另一方面，當你看看我們的競爭對手時，有時我們在護理師和聯盟的大流行中成長得如此之快，甚至可能更加多元化。因此，你會發現其中存在一些差異，另一件事是，我認為當你查看這些數字時，你還必須查看該時間段內發生的收購，以確保你將蘋果與蘋果進行比較蘋果。

Okay. Thanks, John. And then maybe if I could sneak one just one more in. Just wanted to follow up on a comment. I think you had in the prepared remarks about and maybe having a goal to close on some acquisitions this year. Just wondering if you could kind of double-click on that and maybe give us an update on what you're seeing in terms of targets coming to market and the pipeline in your area of areas of interest.

好的。謝謝，約翰。然後也許我可以再偷偷帶一粒進去。只是想跟進評論。我認為您在準備好的評論中已經提到過，並且可能有一個目標，即今年完成一些收購。只是想知道您是否可以雙擊它，也許可以向我們提供您在即將上市的目標以及您感興趣的領域的管道方面所看到的最新情況。

You might miss is I think a buyer's market right now we're seeing multiples come down. There's companies that you don't want to go through another cycle of what of this downturn that we've seen in the market over the last 18 months. And so I think it's a buyer's market right now and there's opportunities for us. And as we've said before, and I said just earlier, we really love the local space and there's opportunities and look with space from the Allied space is something that we like our education business, which is just doing phenomenally as on fire. We love that space and that is a young. It's a very fragmented space, but we've done a great job of growing that into a fairly sizable business. It's nearly $100 million business, and I think there's lots of opportunity in the education space to continue to roll up companies into that space and green gained some of some scale in the education space.

您可能會錯過的是，我認為現在是買方市場，我們看到市盈率正在下降。有些公司你不想再經歷過去 18 個月市場低迷的另一個週期。所以我認為現在是買方市場，我們有機會。正如我們之前所說的，我剛才也說過，我們真的很喜歡當地的空間，那裡有機會，從聯合空間的空間來看，我們喜歡我們的教育業務，它的表現非常出色。我們喜歡那個空間，那是個年輕人。這是一個非常分散的領域，但我們在將其發展成為相當規模的業務方面做得非常出色。這是一項近 1 億美元的業務，我認為教育領域有很多機會繼續吸引公司進入該領域，而綠色在教育領域獲得了一定的規模。

All right. Thank you very much.

好的。非常感謝。

Yes, we're with Truist Securities, Linus, Steffan.

是的，我們是 Truist Securities、Linus、Steffan。

Thanks. I know you made some comments about customer retention and market share, but I want to explore that a little bit more if you could from it because it's a little bit of a challenge externally to take the comment about gross new and telephonic sales and think about a ramp to maturity and know how to use that as a modeling input, are you trying to message that the market share you have within existing customers is stable and your income statement is just kind of transmitting trends and demand and pricing?

謝謝。我知道您對客戶保留率和市場份額發表了一些評論，但如果您可以的話，我想進一步探討這一點，因為從外部來看，接受有關總新銷售和電話銷售的評論並考慮一下是一個挑戰成熟度的提升並知道如何將其用作建模輸入，您是否試圖傳達這樣的訊息：您在現有客戶中擁有的市場份額是穩定的，而您的損益表只是傳遞趨勢、需求和定價？

Yes, that's correct. And I think I can kind of give you a little bit of flavor on where we're at on that spend under management. When you look at our spend under management and that includes the Intel FI business. Pre-covid, we were somewhere between $400 million to $500 million. And as of December, we were at somewhere between $800 million to $900 million. And now, of course, their bill rates have gone up, but the rates are up, Bill, what would you say the rates are up from that period?

對，那是正確的。我想我可以向您介紹我們在管理支出方面的情況。當您查看我們管理的支出時，其中包括英特爾 FI 業務。在新冠疫情爆發之前，我們的收入在 4 億至 5 億美元之間。截至 12 月，我們的營收在 8 億至 9 億美元之間。當然，現在他們的帳單利率已經上漲，但是利率上漲了，比爾，你認為利率比那個時期上漲了多少？

15%, 25% out of that period. So you have a 25%, 30% increase in that, but we clearly have nearly double the amount of spend under management so we are we are gaining and that's why we think we're gaining. We feel confident we're gaining market share because of those numbers.

那個時期的15%、25%。因此，這方面增加了 25%、30%，但我們管理的支出顯然幾乎增加了一倍，所以我們正在獲得收益，這就是為什麼我們認為我們正在獲得收益。由於這些數字，我們有信心獲得市場份額。

Look, volumes volumes are definitely up a little bit too, and the market size will be bigger. But on the other side, demand, as Bill called it earlier on the call, demand is actually lower than pre-COVID right now. And so. And so as we get in and as we in and that that the spend of between $800 million doesn't account to the ramp-ups of most of that $200 million plus spent in management that is still being ramped up now.

看，成交量肯定也增加了一點，市場規模也會更大。但另一方面，正如比爾早些時候在電話會議中所說的那樣，需求實際上低於新冠疫情之前的水平。所以。因此，當我們進入時，8 億美元之間的支出並沒有考慮到目前仍在增加的 2 億美元以上的管理支出中的大部分。

Okay. And do you feel like the G&A is rightsized and appropriate for the 1Q guidance levels or is it built for a different level of volume in the business?

好的。您認為一般及行政費用是否已調整並適合第一季的指導水平，還是為不同的業務量水平而構建？

Your question, Tobey, there's probably two pieces to that. Number one, we do it. I mentioned in my prepared remarks, we've had about an 8% reduction in headcount since the start of the year that we won't get the full quarter of benefit of that. So does just bearing that in mind there is some also some impact on the G&A in the first quarter from the payroll tax reset that we usually bear. It's $0.5 million on that. And then kind of picking up on some of the remarks John made, we do maintain extra capacity in the business. If we were to just simply run the numbers you'd say you could do with fewer headcount, but that's not the place we want to be and we don't want to have to start from ground zero to rebuild the revenue producers that we've brought onboard and trained, and there's still opportunity. The reality is where I mentioned the offshoring of labor to India. As important, we're still working through a lot of different opportunities for automating a lot of our complex processes. The ERP system that we're putting in that goes the first phase goes live. But most of the benefits of that will be really realized when we get to the second phase, which is an early 2025. So we're not done getting at the costs in the G&A. But for Q1, that's that's kind of the messaging.

托比，你的問題可能有兩個部分。第一，我們做到了。我在準備好的發言中提到，自今年年初以來，我們的員工人數減少了約 8%，我們將無法獲得整個季度的收益。因此，請記住，我們通常承擔的工資稅重置對第一季的一般行政費用也有一些影響。這筆費用是 50 萬美元。然後，我們注意到約翰的一些言論，我們確實在業務中保持了額外的產能。如果我們只是簡單地計算數字，你會說你可以用更少的人員來完成，但這不是我們想要的地方，我們不想從零開始重建我們的收入生產者。我們已經加入並接受了培訓，而且仍有機會。現實就是我提到的勞動力離岸到印度的情況。同樣重要的是，我們仍在尋找許多不同的機會來實現許多複雜流程的自動化。我們第一階段投入使用的 ERP 系統已上線。但當我們進入第二階段（即 2025 年初）時，其中的大部分好處才會真正實現。因此，我們還沒有完成一般管理費用的計算。但對於第一季來說，這就是這樣的訊息。

Okay. That's helpful. When we see when you look at the industry, the travel nurse industry as a whole, we're now two years and change of sort of I'm trying to guess when the business may bottom and then finding new logos, how do you think of the industry at this point in capacity within it for the demand that exists today in is there too much in what may need to happen to rain that capacity in?

好的。這很有幫助。當我們看到這個行業，整個旅行護士行業，我們現在已經兩年了，發生了某種變化，我試圖猜測業務何時可能觸底，然後尋找新的徽標，您認為如何目前該行業的產能是否能夠滿足當今存在的需求，是否有太多可能需要發生的事情來減少該產能？

Well, I guess, Tobey, I'd say that a lot of companies definitely ramped up pretty big and I think the companies that are supporting from a third party perspective, the vendors that are that don't have the direct client relationships are certainly going to have more capacity. I would imagine and companies like cross country, we're still winning new direct relationships and MSP relationships yet.

好吧，我想，托比，我想說很多公司肯定都發展得相當大，我認為那些從第三方角度提供支援的公司，那些沒有直接客戶關係的供應商肯定是將擁有更多的容量。我想像越野這樣的公司，我們仍然在贏得新的直接關係和 MSP 關係。

And it's fair to say, Bill, this is John. So the I think that that's right where the third companies are relying on third party are definitely going to you feel a bigger decline in their businesses and has Mark, as you know, companies like cross country win more market share on feel it's important to know like our partner, Morrisons, it's interesting. I mentioned earlier, we have a capture rate of 65% to 70% and why that's important doses, we could actually kind of goes to Trevor's question. We could actually increase our capture rate even higher on and it will actually would offset maybe the decline in our revenue, but that's not our long-term plan.

可以公平地說，比爾，這是約翰。因此，我認為這就是第三方公司依賴第三方的地方，你肯定會感覺到他們的業務出現了更大的下降，馬克，如你所知，像越野車這樣的公司贏得了更多的市場份額，覺得了解這一點很重要就像我們的合作夥伴莫里森一樣，這很有趣。我之前提到過，我們的捕獲率為 65% 到 70%，為什麼這很重要，我們實際上可以回答 Trevor 的問題。我們實際上可以將捕獲率提高得更高，這實際上可能會抵消我們收入的下降，但這不是我們的長期計劃。

One of the things is really important to understand about why our capture is between that 65% and 70% is first and foremost, we have these clients that we're accountable to. We want to make sure that we're providing the highest quality solution to the bedside to serve the patients, the communities. And you don't unfortunately, if you want to increase that capture rate, it's higher than something like 65 or 70, you'd actually have to hold orders potentially. And that could affect that patient delivery and that's something we would never do across country.

理解為什麼我們的捕獲率在 65% 到 70% 之間非常重要的一件事是，首先也是最重要的是，我們有這些我們負責的客戶。我們希望確保為患者和社區提供最高品質的床邊解決方案。不幸的是，如果您想提高捕獲率（高於 65 或 70），您實際上必須保留訂單。這可能會影響患者的交付，而這是我們在全國範圍內永遠不會做的事情。

And then secondly, I've called this out on calls before is we want to make sure that we have excess capacity to win deals. And I think over the last six months, we've certainly proven that. And the wins that we've had is because we have the excess capacity were able to win these deals and then the third part of why we want to keep that capture rate in that 65% to 70% is we want to make sure we are allowing our partner networks. And these vendors is these are the companies that rely on the third party business. We want them think of Cross Country as their first choice, and we want to make sure that that would as we're starting to win more deals, they're there to support our deals so that we're keeping our clients very satisfied and happy.

其次，我之前在電話中指出過這一點，我們希望確保我們有足夠的能力來贏得交易。我認為在過去的六個月裡，我們確實已經證明了這一點。我們取得的勝利是因為我們擁有過剩的產能，能夠贏得這些交易，然後我們希望將捕獲率保持在 65% 到 70% 的第三個原因是我們希望確保我們允許我們的合作夥伴網絡。而這些供應商就是這些依賴第三方業務的公司。我們希望他們將越野視為他們的第一選擇，我們希望確保當我們開始贏得更多交易時，他們會支持我們的交易，以便我們讓客戶非常滿意，快樂的。

At less than for your tracking sequencing. Could you talk about the market trend in MSP. and VMS. fees on subcontractors now that not only have you been a MSP in the marketplace for a long time. But now that you've got and telephone out there are fees to subcontractors a changing at all.

低於您的追蹤測序。能談談MSP的市場趨勢嗎？和VMS。現在您不僅已經成為市場上的 MSP 很長時間了，還需要向分包商收取費用。但既然你已經打電話出去了，那麼分包商就需要支付變更費用了。

And what we've seen over the years. I think you know, from 2009 to have an industry way too long. I periodically fees go up and as cost pressures happens in competitive bid, what happens is we're seeing a lot more companies go out there and offer more more services and offerings to clients to win their business. And those costs have to come in the past launches of vendors. So we are seeing an increase across the industry of of those fees going up. But like I said, I say I started essentially in 2005 and every several years you see this is this is Charles. I think when I first started the average, we I think the average fee was, I think, 3% in 2004. And so overtime inflation, you have more services going to clients the end of closing fees. And when you get, as I mentioned, when you're getting more and more competitors and you're seeing more and more companies trying to get into the MSP and VMS space through offering more and more of them, what's the right word, services and offerings that make it more competitive that increase the cost of running and managing an MSP and VMS service.

以及我們多年來所看到的。我想你知道，從 2009 年到擁有一個行業已經太久了。我的費用定期上漲，隨著競爭性投標中出現成本壓力，我們看到越來越多的公司走出去，為客戶提供更多的服務和產品來贏得他們的業務。這些成本必須來自供應商過去的推出。因此，我們看到整個行業的這些費用都在增加。但就像我說的，我說我基本上是從 2005 年開始的，每隔幾年你就會看到這是查爾斯。我想當我第一次開始平均時，我們認為 2004 年的平均費用是 3%。因此，隨著時間的推移通貨膨脹，您將有更多的服務向客戶提供結束費用。正如我所提到的，當您遇到越來越多的競爭對手，並且您看到越來越多的公司試圖透過提供越來越多的服務來進入MSP 和VMS 領域時，正確的字詞是什麼？以及使其更具競爭力的產品，但會增加運作和管理 MSP 和 VMS 服務的成本。

Thank you very much.

非常感謝。

The you. We're JMP, your line is open.

那個你。我們是 JMP，您的熱線已開通。

Hey, Bill, just done and then on the labor disruption front, you called that out, I think you said a few million dollars. Just wondering if you can put a finer point on that. And then do you have any visibility to anything disruption related that's going to impact the first quarter you are cutting?

嘿，比爾，剛剛完成，然後在勞動力中斷方面，你提出了這一點，我想你說的是幾百萬美元。只是想知道您是否可以對此提出更詳細的觀點。然後，您是否了解任何與您正在削減的第一季相關的中斷事件？

It was it was between $3 million and $4 million that we got within the quarter from labor disruption. So it really wasn't that significant. And as far as having a line of sight to Q1 labor disruptions, no marks here at all. I don't believe we have any demand right now, market there crowd?

本季我們從勞動力中斷中獲得了 300 萬至 400 萬美元的收入。所以這確實沒有那麼重要。至於第一季勞動力中斷的情況，這裡根本沒有任何跡象。我不認為我們現在有任何需求，市場上有人群嗎？

That's correct.

這是正確的。

And then, John, I think you mentioned 2023 tech spend of about $20 million. I just want to clarify that both expensed and capitalized. And I was wondering if you guys could give us some sense for what that spend is going to look like in 24 on the technology front and where it's being directed, you are cutting?

然後，約翰，我想您提到 2023 年的技術支出約為 2000 萬美元。我只是想澄清一下，費用化和資本化。我想知道你們能否讓我們了解一下 24 小時技術方面的支出以及你們要削減的支出方向？

It's Bill again, that's correct that the number that John referenced is the combined spend across the projects. So that's capitalized. And what's been run through operating expense as well as what gets deferred. So that cloud computing, it doesn't all go on the investing activities.

又是比爾，約翰提到的數字是各項目的總支出，這是正確的。所以這是大寫的。以及營運費用中的支出以及延期支出。因此，雲端運算並不是全部都在投資活動上。

On your on your statement, cash flow, some of it is on up in prepaids, and we'll come back in and amortization once the projects alive. But by and large, the $20 million-odd is what we spent across all those projects. And for 2024, we're anticipating spending a very similar amount.

在您的報表上，現金流量，其中一些是預付款，一旦專案啟動，我們將重新進行攤銷。但總的來說，我們在所有這些項目上花費了 2000 萬美元以上。我們預計 2024 年的支出將非常相似。

Great. And then last one for me. Where are you guys in the migration of the MSPs over to and telephonic? I remember you sort of part of that at some point last year. Just wondering if you can give us an update there.

偉大的。然後是我的最後一張。你們在 MSP 遷移到電話的過程中處於什麼位置？我記得去年某個時候你也參與了其中。只是想知道您是否可以向我們提供最新情況。

It's absolutely yes. I mentioned a little earlier in the Q&A that we've seen about 80% of our programs are now on telephone. We've got a handful left that will go over the first the first or second quarter that we've got two or three in Q1 and two or three in Q2. So we're nearly there yet.

絕對是的。我之前在問答中提到，我們已經看到大約 80% 的節目現在都是透過電話進行的。我們還剩下一些，將在第一季或第二季進行，我們在第一季有兩到三個，在第二季有兩到三個。所以我們已經快到了。

And it's interesting on that is that a lot of times, it's not it's not because of we don't want to put it there. It's really competing priorities at hospitals. And so yes, as Bill mentioned, we that we would have been there earlier. It's just matching up sometimes at the hospital and getting them set. But right now we have the roadmap to get there to get a pretty complete pretty soon or point first.

有趣的是，很多時候，這並不是因為我們不想把它放在那裡。這確實是醫院中相互競爭的優先事項。所以，是的，正如比爾所提到的，我們本來會更早到達那裡。有時只是在醫院進行配對並進行設定。但現在我們已經有了路線圖，可以很快完成或先完成目標。

Yes, somebody does that before the half of it before the end of the first half, we should be at 100%.

是的，有人在上半場結束前就這樣做了，我們應該會達到 100%。

Thank you.

謝謝。

Thank you.

謝謝。

You should once again, if you would like to ask a question at this time, you can press star one and record your name win. We're Thank you with Barrington, Michael.

你應該再一次，如果你想問一個問題，你可以按星號一並記下你的名字win。我們向巴林頓表示感謝，麥可。

Good afternoon. I believe you made a comment in your prepared remarks about Tom margin expansion as you move through 2024, is that correct? And if so, is that tied to does the ramp up of your Intel FI. business? Or are you also anticipating the app maybe some improvement in market conditions potentially contributing?

午安.我相信您在準備好的評論中對 2024 年湯姆利潤率擴張發表了評論，對嗎？如果是這樣，這是否與您的英特爾 FI 的提升有關。商業？或者您是否也預期該應用程式可能會對市場狀況的一些改善做出貢獻？

Hey, Kevin, this is Bill. I guess I'd say we're looking at Q1, obviously, being the softest quarter. We've got a number of reasons for that in the not realizing the full cost savings, the fact that there's a payroll tax reset as we progress throughout the year, we're going to continue to expect to see growth across the higher margin businesses like education. Home care, in particular has a number of programs, high single digit number of new programs that are ramping and will go live in the next few months. So there's there's opportunities to see the top line grow, I think is the as those businesses kind of recover, we'll see gross profit and gross margin start to rebound. I'm not making any calls right now on the bait bill pay spread for travel. I think you know, we're still in a very tough market, but that's an opportunity, I think as we move ahead, the intensified conversions once we complete those, that's going to add a little over seven figures of opportunity of savings annualized thrusted see, and that will contribute to our bottom line.

嘿，凱文，這是比爾。我想我會說我們正在關注第一季度，顯然，這是最疲軟的季度。我們有很多原因導致沒有實現全部成本節約，事實上，隨著我們全年的進展，工資稅將被重置，我們將繼續期望看到利潤率較高的業務實現增長就像教育一樣。家庭護理尤其有許多計劃，數量眾多的新計劃正在不斷增加，並將在未來幾個月內上線。因此，有機會看到營收成長，我認為隨著這些業務的復甦，我們將看到毛利和毛利率開始反彈。我現在不會就旅行的誘餌賬單支付差額發出任何電話。我想你知道，我們仍然處於一個非常艱難的市場，但這是一個機會，我認為隨著我們的前進，一旦我們完成這些轉換，就會增加略高於七位數的年化儲蓄機會瞧，這將有助於我們的獲利。

And then finally, just continuing to look at the opportunities for cost savings, right? So we've got the work that we're moving overseas. And we've got a very concerted effort and a very large program effort right now going across all of our our teams to look and see what efforts we have that can we first automate and John made some comments about some of the things we're doing there in the prepared remarks. But if we're able to automate and it's going to be a stable process. We'd like to look at moving that to where we can do it for the most cost effective way. So I think that's a piece of it. And then we are still working through all the things that will give us the opportunities to be more efficient even from our back office. We've had projects that we've been working on over the last year, many of which have been going live throughout the fourth quarter and into the first quarter. So I anticipate that will still continue even improvements across the shared services teams.

最後，繼續尋找節省成本的機會，對吧？所以我們已經把工作轉移到海外了。我們現在正在所有團隊中進行非常協調的努力和非常大的計劃工作，以了解我們可以首先實現哪些工作自動化，約翰對我們正在做的一些事情發表了一些評論在那裡做準備好的發言。但如果我們能夠實現自動化，這將是一個穩定的過程。我們希望考慮將其轉移到我們能夠以最具成本效益的方式做到這一點。所以我認為這就是其中的一部分。然後，我們仍在努力解決所有問題，使我們有機會提高效率，甚至在我們的後台也是如此。去年我們一直在進行一些項目，其中許多項目已在第四季度和第一季投入使用。因此，我預計共享服務團隊仍將繼續改進。

Okay. And is your reference do you think revenue could ramp sequentially in the second half of 2024? And with all those various actions and initiatives you just discussed, do you think and of the high single digit adjusted EBITDA margin would be reasonable as we move towards the back half of the year?

好的。您認為 2024 年下半年營收會持續成長嗎？透過您剛才討論的所有這些不同的行動和舉措，您認為當我們進入今年下半年時，高個位數的調整後 EBITDA 利潤率是否合理？

Yes, I mean? I think look, that's certainly our goal and I made the remark in my prepared remarks that we're targeting to exit the year with SG&A at 15% on revenue. So if you look into where does that what do you think gross profit or gross margin can be by the fourth quarter?

是的，我的意思是？我認為，這當然是我們的目標，我在準備好的演講中說過，我們的目標是在今年結束時 SG&A 佔收入的 15%。那麼，如果您研究一下，您認為第四季度的毛利或毛利率會是多少？

You could start to back into what that could look like, but yes, something in that high single would be our goal to exit the year.

你可以開始回到那可能會是什麼樣子，但是，是的，那首單曲中的某些內容將是我們今年退出的目標。

Okay. Thanks for taking the questions.

好的。感謝您提出問題。

Sure.

當然。

Thank you. And our last question will come from Bill Sutherland with The Benchmark Company LLC.

謝謝。我們的最後一個問題將由 Benchmark Company LLC 的 Bill Sutherland 提出。

And to take us, John, I was thinking about the US. What one not artifact of it because of COVID, I think was a lot of the typical contracting cycles for MSPs got pushed out. So there's been like a bunch of them this year last year and maybe this year that I've heard is occurring in the industry. And I'm just wondering kind of what your contract cycle looks like right now as you look at your book in both MSPNVMS.

約翰，我想到的是美國。我認為，由於新冠疫情，許多 MSP 的典型合約週期都被推遲了，這不是人為造成的。所以去年、今年、也許今年我聽說這個行業就出現了很多這樣的情況。我只是想知道當您在兩個 MSPNVMS 中查看您的書時，您的合約週期現在是什麼樣的。

Pedro. And yes, we are cycle was heavier in 22 and 23 where we had more contracts up. And I think as we've called out, that was because of COVID that people kind of held back and waited to go out to market after COVID, what was perceived efficacy to 22. So we saw a higher number of clubs. Our clients got 22 and 23 this year, Al, it's definitely lower and less than last year. I think when we see more of the typical cycle of somewhere between 20%, 25% go out this year and it varies right. There's ones that are competitive. It is that we have that, that our competitors are going in and getting involved in a competitive bake-off, if you will. And those are the ones that are renewals that are that are evergreen contracts that come up every year that were that the clients really not looking to go out to market and those are the rules that just come automatically. And of course, you still have to make sure you're doing a great job. The client given the service that they need and filling there and providing the needs that they have until the needs they have. But there's a couple of categories. But to answer your question, this should be a this will be a lower year of the total number of renewals we have in the last two years.

佩德羅.是的，我們的周期在 22 和 23 年比較重，我們有更多的合約。我認為正如我們所指出的那樣，這是因為新冠疫情導致人們在新冠疫情之後猶豫不決並等待上市，人們認為 22 日的功效。所以我們看到了更多的俱樂部。我們的客戶今年有 22 和 23，艾爾，這肯定比去年低而且少。我認為，當我們今年看到更多 20% 到 25% 之間的典型週期時，情況就會有所不同。有些是有競爭力的。如果你願意的話，我們的競爭對手正在參與競爭性的烘焙比賽。這些是每年都會出現的續約合同，這些合約是客戶真的不希望進入市場，而這些是自動出現的規則。當然，您仍然必須確保自己做得很好。客戶提供他們需要的服務，並在那裡滿足他們的需求，直到他們有需求為止。但有幾個類別。但要回答你的問題，這應該是我們過去兩年續約總數中較低的一年。

Got it. And I'm going to wrap up with a real quick number question, Bill, just curious what is the headcount in India because you talked about increasing it this quarter, I think first half.

知道了。最後我要問一個快速的數字問題，比爾，我只是好奇印度的員工人數是多少，因為我想上半年你談到了本季度增加員工人數。

Yes, we haven't to my knowledge given the specific India headcount out, but it's a couple of few hundred. So it's between 200 and 300 and ramping quickly. Now we've got about today probably half of the headcount is supporting our IT operation and half of the headcount is supporting our shared services and maybe a little bit more like 60/40 operations versus IT. But we've been doing a lot of development work that are in the office. And so that's part of what we're going to continue to invest in. But the main driver of the growth is going to be on the on the operational side of the business, and that's where we're going to be what and when I say doubling the headcount, the doubling is the total headcount. But it's going to be predominately on the operation side, some more of the investments for the operations.

是的，據我所知，我們還不清楚印度的具體人數，但有幾百人。所以它在 200 到 300 之間，並且增長很快。現在我們大約有一半的員工支援我們的 IT 運營，一半的員工支援我們的共享服務，也許更像是 60/40 的營運與 IT 的比例。但我們一直在辦公室做很多開發工作。所以這是我們將繼續投資的一部分。但成長的主要驅動力將來自於業務的營運方面，這就是我們將要實現的目標，當我說員工人數加倍時，加倍的是總人數。但主要是在營運方面，更多的投資用於營運。

And I think it's important to note on the on that India office that we have overseas. That office has been around for a country for 18 years. It's a long-standing company that we've had. There's a great partnership, great leadership there. As I mentioned, our prepared remarks. I was just there two weeks ago to do our company-wide kickoff from India to all of our offices. And I can tell you the talent that we have over there is just incredible and they're ready to take on more and more of these new these services coming over. And we're really excited about this a great culture that we've created between the U.S. and India, and truly there's real partnership we have with our organization over there.

我認為重要的是要注意我們在海外設有的印度辦事處。該辦公室在一個國家已經存在 18 年了。這是我們擁有的一家歷史悠久的公司。那裡有很好的合作夥伴關係和出色的領導力。正如我所提到的，我們準備好了發言。兩週前，我剛從印度到所有辦公室進行了全公司範圍的啟動儀式。我可以告訴你，我們那裡的人才令人難以置信，他們已經準備好承擔越來越多的新服務。我們對我們在美國和印度之間創造的偉大文化感到非常興奮，而且我們與那裡的組織確實建立了真正的合作關係。

Perfect. Thanks, guys.

完美的。多謝你們。

Thank you. Ladies and gentlemen, this does conclude the Q&A period. I'll now turn it back over to John closing.

謝謝。女士們先生們，問答環節到此結束。現在我將把它轉回給約翰結束。

Thank you. In closing, I'd like to thank everyone for participating in today's call, and we look forward to updating you on the progress of the Company on our next call in May.

謝謝。最後，我要感謝大家參加今天的電話會議，我們期待在五月的下一次電話會議上向您通報公司的最新進展。

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation. You may now disconnect.

女士們先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。