Full Press Release Details
AMN HEALTHCARE ANNOUNCES SECOND QUARTER 2022 RESULTS
Quarterly revenue of $1.427 billion;
GAAP EPS of $2.77 and adjusted EPS of $3.31
DALLAS - AMN Healthcare Services, Inc. (NYSE:
AMN), the leader and innovator in total talent solutions for healthcare organizations across the United States, today announced its second
quarter 2022 financial results. Financial highlights are as follows:
Dollars in millions, except per share amounts.
| Q2 2022 | % Change Q2 2021 | YTD June 30, 2022 | % Change YTD June 30, 2021 | |||||
| Revenue | $1,426.6 | 66% | $2,979.1 | 71% | ||||
| Gross profit | $460.2 | 64% | $956.4 | 68% | ||||
| Net income | $123.8 | 85% | $269.8 | 97% | ||||
| GAAP diluted EPS | $2.77 | 99% | $5.87 | 105% | ||||
| Adjusted diluted EPS* | $3.31 | 102% | $6.80 | 104% | ||||
| Adjusted EBITDA* | $232.7 | 74% | $490.3 | 79% |
* See "Non-GAAP Measures" below for a
discussion of our use of non-GAAP items and the table entitled "Non-GAAP Reconciliation Tables" for a reconciliation of non-GAAP
"The healthcare delivery model that is highly dependent on the skills, passion and many hours worked by clinicians is being tested beyond its limits. Open healthcare jobs in the U.S. continue to pace beyond 2.5x the number of hires each month, and there is no quick fix," said Susan R. Salka, Chief Executive Officer of AMN Healthcare. "Our solutions and technologies are making an impact. We are also rapidly collaborating with clients and other partners to develop and retain the highly valuable workforce serving patients today. To that end, we welcome the Connetics team into the AMN family, and we believe the addition of their international nurse and allied talent sourcing capabilities is well timed."
Ms. Salka said, "The AMN
team continues to perform exceptionally well and make a significant impact for clients, healthcare professionals and our community. These
efforts amidst a strong market resulted in better-than-expected revenue and earnings for the second quarter. Demand is very robust, and
our second-half 2022 outlook is slightly stronger than previously expected."
Second Quarter 2022 Results
Consolidated revenue for the quarter
was $1.427 billion, a 66% increase over prior year and 8% less than prior quarter. Net income was $124 million (8.7% of revenue), or $2.77
per diluted share, compared with $67 million (7.8% of revenue), or $1.39 per diluted share, in second quarter 2021. Adjusted diluted EPS
in the second quarter was $3.31 compared with $1.64 in the same quarter of the prior year.
Revenue for the Nurse and Allied
Solutions segment was $1.101 billion, up 76% year over year and down 10% from the prior quarter. Travel nurse staffing revenue grew 70%
year over year and was down 20% sequentially. Allied division revenue grew by 54% year over year while falling 3% sequentially. Labor
disruption revenue was $83 million in the second quarter compared with $2 million in the year-ago period. Connetics, acquired in mid-May,
contributed $2 million of revenue.
The Physician and Leadership Solutions
segment reported revenue of $176 million, growing 26% year over year and declining 2% sequentially. Locum tenens revenue was $106
million, up 36% year over year and down 6% sequentially.
Interim leadership revenue grew by 8% year over year and by 7% sequentially. Our physician and leadership search businesses produced revenue
growth of 28% year over year, though down 1% sequentially.
Technology and Workforce Solutions
segment revenue was $149 million, an increase of 59% year over year and 3% sequentially. Language services revenue was $53 million in
the quarter, 17% higher than the prior year and up 8% sequentially. Vendor management systems revenue was $75 million, growing 144% year
over year and flat with the first quarter 2022 level.
Consolidated gross margin was
32.3%, 40 basis points lower year over year and up 30 basis points sequentially. Gross margin was lower year over year due primarily to
lower hours and a revenue mix shift toward lower-margin staffing businesses. On a sequential basis, the revenue mix change was favorable
Consolidated SG&A expenses
were $244 million, or 17.1% of revenue, compared with $157 million, or 18.3% of revenue, in the same quarter last year. SG&A was $258
million, or 16.6% of revenue, in the previous quarter. The year-over-year increase in SG&A costs was driven primarily by higher employee
and related expenses associated with business growth. SG&A margin improved year over year due to operating leverage on higher revenue.
Income from operations was $184
million with an operating margin of 12.9%, compared with $99 million and 11.6%, respectively, in the same quarter last year. Adjusted
EBITDA was $233 million, a year-over-year increase of 74%. Adjusted EBITDA margin was 16.3%, representing an increase of 70 basis points
At June 30, 2022, cash and
cash equivalents totaled $79 million. Cash flow from operations was $224 million for the second quarter, and capital expenditures were
$17 million. The Company ended the quarter with total debt outstanding of $850 million and a net leverage ratio of 0.9 to 1.
During the second quarter, the
Company used $174 million of cash to repurchase 1.9 million shares of our stock. As of June 30, 2022, $326 million remained under
our stock repurchase authorization.
Connetics Acquisition
In May, the Company acquired Connetics
USA. Connetics specializes in direct hire recruitment and placement of international nurse and allied professionals. The addition of Connetics
expanded our international nurse business beyond contract staffing.
Third Quarter 2022 Outlook
| Metric | Guidance* | |
| Consolidated revenue | $1.080 - $1.110 billion | |
| Gross margin | 33.0% - 33.5% | |
| SG&A as percentage of revenue | 18.0% - 18.5% | |
| Operating margin | 11.8% - 12.4% | |
| Adjusted EBITDA margin | 15.5% - 16.0% | |
| *Note: Guidance percentage metrics are approximate. For a reconciliation of adjusted EBITDA margin, see the table entitled "Reconciliation of Guidance Operating Margin to Guidance Adjusted EBITDA Margin" below. |
Revenue in the third quarter of
2022 is expected to be 23-26% higher than prior year and 22-24% lower sequentially. The quarter-over-quarter decline is due primarily
to the anticipated travel nurse and VMS bill rate reductions, which have come down slightly less than our prior expectations. Nurse and
Allied Solutions segment revenue is expected to grow 24-28% year over year, which includes $7 million from labor disruption activities.
For the Physician and Leadership Solutions segment, revenue is expected to be approximately 15% higher than prior year. Technology and
Workforce Solutions segment revenue is expected to grow by approximately 30% year over year.
Third quarter estimates for certain
other financial items include depreciation of $12 million, non-cash amortization expense of $21 million, stock-based compensation expense
of $6 million, interest expense of $9 million, integration and other expenses of $2 million, an adjusted tax rate of 27%, and approximately
43.6 million diluted shares outstanding.
Conference Call on August 4, 2022
AMN Healthcare Services, Inc.
(NYSE: AMN), the leader and innovator in total talent solutions for healthcare, will host a conference call to discuss its second quarter
2022 financial results and third quarter 2022 outlook on Thursday, August 4, 2022 at 5:00 p.m. Eastern Time. A live webcast of the
call can be accessed through AMN Healthcare's website at http://ir.amnhealthcare.com. Interested parties may participate live via
telephone by registering at https://register.vevent.com/register/BI258cf37b8b78443397eb06e7e31df837. Please follow the link and register
with a valid e-mail address. A PIN will be e-mailed to you with dial-in numbers and the option to have the system call you. Following
the conclusion of the call, a replay of the webcast will be available at the Company's website.
About AMN Healthcare
AMN Healthcare is the leader and
innovator in total talent solutions for healthcare organizations across the nation. The Company provides access to the most comprehensive
network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights
and expertise, AMN Healthcare helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve
patient outcomes. AMN total talent solutions include managed services programs, clinical and interim healthcare leaders, temporary staffing,
permanent placement, executive search, vendor management systems, recruitment process outsourcing, predictive modeling, language services,
revenue cycle solutions, credentialing, and other services. Clients include acute-care hospitals, community health centers and clinics,
physician practice groups, retail and urgent care centers, home health facilities, schools and many other healthcare settings. AMN Healthcare
is committed to fostering and maintaining a diverse team that reflects the communities we serve. Our commitment to the inclusion of many
different backgrounds, experiences and perspectives enables our innovation and leadership in the healthcare services industry.
The Company's common stock
is listed on the New York Stock Exchange under the symbol "AMN." For more information about AMN Healthcare, visit www.amnhealthcare.com,
where the Company posts news releases, investor presentations, webcasts, SEC filings and other material information. The Company also
utilizes email alerts and Really Simple Syndication
("RSS") as routine channels to supplement
distribution of this information. To register for email alerts and RSS, visit http://ir.amnhealthcare.com.
This earnings release and
the non-GAAP reconciliation tables included with the earnings release contain certain non-GAAP financial information, which the Company
provides as additional information, and not as an alternative, to the Company's condensed consolidated financial statements presented
in accordance with GAAP. These non-GAAP financial measures include (1) adjusted EBITDA, (2) adjusted EBITDA margin, (3) adjusted net
income and (4) adjusted diluted EPS. The Company provides such non-GAAP financial measures because management believes that they are
useful to both management and investors as a supplement, and not as a substitute, when evaluating the Company's operating performance.
Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted EPS serve as
industry-wide financial measures. The Company uses adjusted EBITDA for making financial decisions, allocating resources and for determining
certain incentive compensation objectives. The non-GAAP measures in this release are not in accordance with, or an alternative to, GAAP