Full Press Release Details
AMN HEALTHCARE ANNOUNCES FIRST QUARTER 2012 RESULTS
SAN DIEGO (May 3, 2012) AMN Healthcare Services, Inc. (NYSE: AHS), the nation s innovator in healthcare workforce solutions, today
announced its financial results for the first quarter of 2012, reflecting continued growth in revenue and profitability. Financial highlights are as follows:
| Dollars in millions, except per share amounts.* | Q1 2012 | % Chg Q1 2011 | % Chg Q4 2011 | |||||||||
| Revenue | $ | 226.4 | 5 | % | 2 | % | ||||||
| Gross Profit | $ | 63.2 | 1 | % | 1 | % | ||||||
| Net Income from Continuing Operations | $ | 3.5 | 101 | % | 105 | % | ||||||
| Diluted EPS from Continuing Operations | $ | 0.07 | 75 | % | 75 | % | ||||||
| Adjusted EBITDA** | $ | 17.5 | 1 | % | 11 | % |
AMN Healthcare continues to differentiate itself in the
marketplace as the innovator in healthcare workforce solutions. We experienced continued momentum adding new MSP clients as well as growing our traditional client business, said Susan R. Salka, President and Chief Executive Officer of AMN
Healthcare. The efficiency inherent in our MSP operations model, with strong fill-rates and productivity by our sales and operations team, continues to provide improvements in operating leverage.
With a solid and improving demand environment, we are keenly focused on our recruitment strategies to enable us to continue
delivering superior service to our clients. This focus on growing our quality clinician candidates will also position us well for the significantly stronger demand market conditions expected in the next two to three years, added Salka.
First Quarter 2012 Results
For the first quarter of 2012, consolidated revenue was $226 million, an increase of 2% sequentially and 5% from the same quarter last year. First quarter revenue for the Nurse and Allied Healthcare
Staffing segment was $154 million, up 4% sequentially and 14% from the same quarter last year. The increase was due to increased clinicians on assignment and increased bill rates. The Locum Tenens Staffing segment generated revenue in the first
quarter of $64 million, a decrease of 2% sequentially and 10% from the same quarter last year. First quarter Physician Permanent Placement Services segment revenue was $9 million, a decrease of 4% sequentially and 17% from the same quarter last
year. Excluding the impact of the prior year adoption of a new revenue recognition accounting standard, revenues for this segment increased 4% year-over-year.
Gross margin in the first quarter of 27.9%, at the upper end of the Company s expectations, was lower by 40 basis points compared to the previous quarter and 120 basis points from the same quarter
last year. The year-over-year decrease was due primarily to the prior year benefits from an actuarial-based workers compensation reserve adjustment and the adoption of a new revenue recognition accounting standard. Excluding these items, the
year over-year gross margin was higher by 30 basis points due to improved gross margins in both physician segments.
SG&A expenses for the first quarter of 2012 were $47 million, representing 20.8% as a
percent of revenue, compared to 22.1% in the prior quarter and 22.6% in the same quarter last year. The decrease compared to the same quarter last year was due primarily to the absence of integration-related expenses associated with the Medfinders
acquisition, the resulting improved SG&A leverage from the acquisition synergies, and a refund received in connection with the settlement of a prior period assessment from the California Employment Development Department. Compared to the prior
quarter, the decrease was due to continued operating leverage improvement and the favorable settlement, offset partly by higher professional liability costs.
First quarter 2012 GAAP net income per diluted common share was $0.09. Excluding the $0.02 discontinued operations impact from the divested home healthcare business, earnings per share from continuing
operations was $0.07.
As of March 31, 2012, cash and cash equivalents totaled $5 million and total debt outstanding, net
of discount, was $193 million. First quarter 2012 cash flow from operations was $10 million and capital expenditures were $1.0 million.
On April 5, 2012, the Company replaced its existing credit facilities with a new $250 million credit agreement. The new credit agreement consists of a $200 million secured term loan and $50 million
secured revolving line of credit, maturing in April 2018 and April 2017, respectively. The term loan will initially bear interest at LIBOR plus 475 basis points, with a 1.25% LIBOR floor, and the revolving line of credit will initially bear interest
at LIBOR plus 425 basis points. Both facilities have interest rate step downs based on the Company s financial leverage. Approximately $5.9 million of transaction related costs were capitalized and will be amortized over the term of the new
agreement. In addition, $8.6 million of non-cash deferred financing costs and original issue discount and a $1.2 million pre-payment penalty associated with the previous credit facilities will be charged to interest expense in the second quarter.
Business Trends and Outlook
Second quarter consolidated revenues are expected to be between $229 million and $233 million, with sequential growth anticipated across
all business segments. Gross margin is expected to remain steady between 27.5% and 28.0%. SG&A expenses are anticipated to be approximately 21.5% to 22.0% of revenues. Adjusted EBITDA margin is expected to be approximately 7.0%.
About AMN Healthcare Services
AMN Healthcare Services, Inc. is the nation s innovator in healthcare workforce solutions, including managed services programs, recruitment process outsourcing solutions, recruitment and placement of
healthcare professionals into temporary and permanent positions, and consulting services. Clients include acute-care hospitals, government facilities, community health centers and clinics, physician practice groups, and a host of other healthcare
settings. AMN achieves unparalleled access to quality healthcare talent through its innovative recruitment strategies and breadth of compelling career-building opportunities offered to healthcare professionals. For more information, visit
Conference Call on May 3, 2012
AMN Healthcare Services, Inc. s first quarter 2012 conference call will be held on Thursday, May 3, 2012, at 5:00 p.m. Eastern
Time. A live webcast of the call can be accessed through AMN Healthcare s website at http://amnhealthcare.investorroom.com/presentations. Please log in at least 10 minutes prior to the conference call in order to download the applicable audio
software. Interested parties may participate live via telephone by dialing (800) 230-1085 in the U.S. or (612) 234-9959 internationally. Following the conclusion of the call, a replay of the webcast will be available at the Company s
website. A telephonic replay of the call will also be available at 7:00 p.m. Eastern Time on May 3, 2012, and can be accessed until 11:59 p.m. Eastern Time on May 24, 2012, by calling (800) 475-6701 in the U.S. or (320) 365-3844
internationally, with access code 243539.
This earnings release contains certain non-GAAP financial information. These measures are not in accordance with, or an alternative to,
generally accepted accounting principles in the
United States ( GAAP ), and may be different from non-GAAP measures reported by other companies. From time to time, additional information regarding non-GAAP financial measures,
including pro forma measures, may be made available on the Company s website at http://www.amnhealthcare.com/investors.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include expectations regarding 2012 second quarter revenue, revenue growth, gross margin, SG&A, adjusted EBITDA margin and expectations about
future market conditions. The Company based these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results
could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as believe, anticipate, expect, intend,
plan, will, may, estimates, variations of such words and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or
circumstances are forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements contained in this press release are set forth in the Company s Annual Report on Form 10-K for
the year ended December 31, 2011 and its other periodic reports as well as its current and other reports filed with the SEC. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated
with the passage of time.
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Comprehensive Income
(dollars and share amounts in thousands, except per share amounts)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| Revenue | $ | 226,412 | $ | 215,805 | $ | 222,053 | ||||||
| Cost of revenue | 163,198 | 153,105 | 159,268 | |||||||||
| Gross profit | 63,214 | 62,700 | 62,785 | |||||||||
| 27.9 | % | 29.1 | % | 28.3 | % | |||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 47,176 | 48,720 | 48,963 | |||||||||
| 20.8 | % | 22.6 | % | 22.1 | % | |||||||
| Depreciation and amortization | 3,695 | 4,472 | 3,845 | |||||||||
| Total operating expenses | 50,871 | 53,192 | 52,808 | |||||||||
| Income from operations | 12,343 | 9,508 | 9,977 | |||||||||
| Interest expense, net | 5,533 | 5,505 | 5,620 | |||||||||
| Income from continuing operations before income taxes | 6,810 | 4,003 | 4,357 | |||||||||
| Income tax expense | 3,357 | 2,287 | 2,673 | |||||||||
| Income from continuing operations, net of tax | 3,453 | 1,716 | 1,684 | |||||||||
| Income (loss) from discontinued operations, net of tax | 823 | 540 | (4,119 | ) | ||||||||
| Net income (loss) | $ | 4,276 | $ | 2,256 | $ | (2,435 | ) | |||||
| Basic income (loss) per common share from: | ||||||||||||
| Continuing operations | $ | 0.07 | $ | 0.04 | $ | 0.04 | ||||||
| Discontinued operations | 0.02 | 0.01 | (0.10 | ) | ||||||||
| Net income (loss) | $ | 0.09 | $ | 0.05 | $ | (0.06 | ) | |||||
| Diluted income (loss) per common share from: | ||||||||||||
| Continuing operations | $ | 0.07 | $ | 0.04 | $ | 0.04 | ||||||
| Discontinued operations | 0.02 | 0.01 | (0.09 | ) | ||||||||
| Net income (loss) | $ | 0.09 | $ | 0.05 | $ | (0.05 | ) | |||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 40,576 | 39,240 | 40,440 | |||||||||
| Diluted | 46,164 | 45,842 | 46,034 | |||||||||
| Other comprehensive income (loss) | (43 | ) | (1 | ) | 18 | |||||||
| Comprehensive income (loss) | $ | 4,233 | $ | 2,255 | $ | (2,417 | ) |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except operating data)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| Revenue | ||||||||||||
| Nurse and allied healthcare staffing | $ | 153,886 | $ | 134,774 | $ | 148,136 | ||||||
| Locum tenens staffing | 63,509 | 70,189 | 64,553 | |||||||||
| Physician permanent placement services | 9,017 | 10,842 | 9,364 | |||||||||
| $ | 226,412 | $ | 215,805 | $ | 222,053 | |||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||
| Segment Operating Income(1) | ||||||||||||
| Nurse and allied healthcare staffing | $ | 17,077 | $ | 15,119 | $ | 18,050 | ||||||
| Locum tenens staffing | 4,416 | 6,011 | 3,930 | |||||||||
| Physician permanent placement services | 1,706 | 3,817 | 2,164 | |||||||||
| 23,199 | 24,947 | 24,144 | ||||||||||
| Unallocated corporate overhead | 5,732 | 7,694 | 8,351 | |||||||||
| Adjusted EBITDA(2) | 17,467 | 17,253 | 15,793 | |||||||||
| Depreciation and amortization | 3,695 | 4,472 | 3,845 | |||||||||
| Stock-based compensation | 1,429 | 1,982 | 1,713 | |||||||||
| Acquisition related costs | 0 | 1,291 | 258 | |||||||||
| Interest expense, net | 5,533 | 5,505 | 5,620 | |||||||||
| Income from continuing operations before income taxes | 6,810 | 4,003 | 4,357 | |||||||||
| Income tax expense | 3,357 | 2,287 | 2,673 | |||||||||
| Net income from continuing operations | 3,453 | 1,716 | 1,684 | |||||||||
| Net income (loss) from discontinued operations | 823 | 540 | (4,119 | ) | ||||||||
| Net income (loss) | $ | 4,276 | $ | 2,256 | $ | (2,435 | ) |
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| Gross Margin | ||||||||||||
| Nurse and allied healthcare staffing | 26.4 | % | 27.5 | % | 27.4 | % | ||||||
| Locum tenens staffing | 27.1 | % | 26.2 | % | 25.5 | % | ||||||
| Physician permanent placement services | 59.5 | % | 66.7 | % | 61.7 | % | ||||||
| Operating Data: | ||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||
| Average travelers on assignment(3) | 5,443 | 5,054 | 5,317 | |||||||||
| Revenue per traveler per day(4) | $ | 310.68 | $ | 296.30 | $ | 302.84 | ||||||
| Gross profit per traveler per day(4) | $ | 81.99 | $ | 81.50 | $ | 82.91 | ||||||
| Locum tenens staffing | ||||||||||||
| Days filled(5) | 45,990 | 49,461 | 47,610 | |||||||||
| Revenue per day filled(5) | $ | 1,380.93 | $ | 1,419.08 | $ | 1,355.87 | ||||||
| Gross profit per day filled(5) | $ | 374.92 | $ | 372.03 | $ | 345.50 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
| March 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,901 | $ | 3,962 | ||||
| Accounts receivable, net | 141,615 | 146,654 | ||||||
| Accounts receivable, subcontractor | 23,340 | 22,497 | ||||||
| Prepaid expenses | 8,298 | 5,691 | ||||||
| Income taxes receivable | 3,606 | 3,372 | ||||||
| Deferred income taxes, net | 13,213 | 19,335 | ||||||
| Other current assets | 6,878 | 3,652 | ||||||
| Assets held for sale | 0 | 7,310 | ||||||
| Total current assets | 201,851 | 212,473 | ||||||
| Restricted cash, cash equivalents and investments | 18,241 | 18,244 | ||||||
| Fixed assets, net | 15,918 | 16,863 | ||||||
| Deposits and other assets | 20,638 | 19,329 | ||||||
| Deferred income taxes, net | 2,166 | 1,823 | ||||||
| Goodwill | 123,324 | 123,324 | ||||||
| Intangible assets, net | 141,825 | 143,575 | ||||||
| Total assets | $ | 523,963 | $ | 535,631 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities: | ||||||||
| Bank overdraft | $ | 1,225 | $ | 3,515 | ||||
| Accounts payable and accrued expenses | 51,417 | 49,809 | ||||||
| Accrued compensation and benefits | 43,717 | 43,649 | ||||||
| Revolving credit facility | 0 | 3,000 | ||||||
| Current portion of notes payable | 2,000 | 28,125 | ||||||
| Deferred revenue | 1,635 | 2,155 | ||||||
| Other current liabilities | 5,539 | 8,313 | ||||||
| Liabilities related to assets held for sale | 0 | 1,486 | ||||||
| Total current liabilities | 105,533 | 140,052 | ||||||
| Notes payable, less current portion and discount | 190,994 | 174,198 | ||||||
| Other long-term liabilities | 62,775 | 61,646 | ||||||
| Total liabilities | 359,302 | 375,896 | ||||||
| Preferred Stock | 24,076 | 24,076 | ||||||
| Stockholders equity | 140,585 | 135,659 | ||||||
| Total liabilities and stockholders equity | $ | 523,963 | $ | 535,631 |
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Cash Flows
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| Net cash provided by operating activities | $ | 9,553 | $ | 5,564 | $ | 6,513 | ||||||
| Net cash provided by (used in) investing activities | 7,352 | (1,687 | ) | (1,142 | ) | |||||||
| Net cash used in financing activities | (15,923 | ) | (1,825 | ) | (6,070 | ) | ||||||
| Effect of exchange rates on cash | (43 | ) | (1 | ) | 18 | |||||||
| Net increase (decrease) in cash and cash equivalents | 939 | 2,051 | (681 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 3,962 | 1,883 | 4,643 | |||||||||
| Cash and cash equivalents at end of period | $ | 4,901 | $ | 3,934 | $ | 3,962 |