Full Press Release Details
| Contact: | ||||
| Amy C. Chang | ||||
| Vice President, Investor Relations | ||||
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES FIRST QUARTER 2014 RESULTS
Reports quarterly revenue of $241 million and first quarter diluted EPS of $0.16
SAN DIEGO (May 1, 2014) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s innovator in workforce solutions and staffing services,
today announced first quarter 2014 financial results reflecting improved margins on lower than anticipated revenue. First quarter financial highlights are as follows:
| Dollars in millions, except per share amounts. | ||||||
| Q1 2014 | % Change Q1 2013 | |||||
| Revenue | $ | 240.9 | (4%) | |||
| Gross profit | $ | 74.0 | 1% | |||
| Net income | $ | 7.6 | 1% | |||
| Diluted EPS | $ | 0.16 | 0% | |||
| Adjusted EBITDA* | $ | 21.1 | 0% |
AMN continues to make progress in our long-term strategy and improving our operating margins despite the current challenging healthcare
environment. Lower hospital census,
combined with cost pressures and weather impacts resulted in more cautious buying behavior and temporary staff utilization during the first quarter. Although material improvements in Nurse and
Allied Staffing are still likely a few months out, our Physician Placement and Locum Tenens businesses remain less impacted and continue to show signs of good near and long-term growth opportunity, said Susan R. Salka, President and Chief
Executive Officer of AMN Healthcare. We believe our focused investments and execution on our strategy to advance our position as healthcare s innovator in workforce solutions, particularly as the leader in providing MSP, VMS and RPO
services, have positioned us to be a stronger partner with our clients.
First Quarter 2014 Results
For the first quarter of 2014 consolidated revenue was $241 million, a decrease of 4% from the same quarter last year and 3% sequentially.
First quarter revenue for the Nurse and Allied Healthcare Staffing segment was $163 million, down 8% from the same quarter last year and flat sequentially. Locum Tenens Staffing segment revenue in the first quarter was $67 million, an increase of 2%
from the same quarter last year and down 10% sequentially. First quarter Physician Permanent Placement Services segment revenue was $11 million, an increase of 7% from the same quarter last year and 1% sequentially.
First quarter gross margin of 30.7% was higher by 170 basis points than the same quarter last year and higher by 90 basis points sequentially.
The year-over-year increase was due to gross margin improvement across all business segments, as well as the addition of the ShiftWise business. The sequential increase was due to the inclusion of a full quarter of the ShiftWise business in the
first quarter and lower insurance expenses.
SG&A expenses for the first quarter were $55 million, representing 22.7% of revenue,
compared to $54 million in the same quarter last year and $54 million in the prior quarter. The increase in SG&A expenses was due primarily to the additional SG&A expenses from the ShiftWise business, partially offset by lower
professional liability expense.
First quarter net income was $8 million and net income per diluted share was $0.16. First quarter
adjusted EBITDA was $21 million, flat year over year and sequentially. Adjusted EBITDA margin of 8.8% reflected a 40 basis point increase over prior year and was driven by the improvement in gross margin.
At March 31, 2014, cash and cash equivalents totaled $9 million. First quarter cash flow
provided by operations was $1.0 million and capital expenditures were $6 million. The Company ended the quarter with total debt outstanding, net of discount, of $159 million, with a leverage ratio of 2.0 to 1.
Business Trends and Outlook
Company expects consolidated second quarter 2014 revenue of $244 million to $248 million. Gross margin is expected to be approximately 30.5%. SG&A expenses as a percentage of revenue are expected to be between 22.5% to 23.0%. Adjusted EBITDA
margin is expected to be approximately 8.5%.
About AMN Healthcare
AMN Healthcare is the innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. AMN
Healthcare s workforce solutions - including managed services programs, vendor management systems, and recruitment process outsourcing - enable providers to successfully reduce complexity, increase efficiency and improve patient outcomes within
the rapidly evolving healthcare environment. The Company provides unparalleled access to the largest network of quality clinicians and physicians through its innovative recruitment strategies and breadth of career opportunities. Clients include
acute-care hospitals, government facilities, community health centers and clinics, physician practice groups and many other healthcare settings. AMN Healthcare disseminates news and information about the Company through its website, which can be
found at www.amnhealthcare.com.
Conference Call on May 1, 2014
AMN Healthcare Services, Inc. s first quarter 2014 conference call will be held on Thursday, May 1, 2014, 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 be available at 7:30 p.m. Eastern Time on May 1, 2014, and can be accessed until 11:59 p.m. Eastern Time on May 15, 2014, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with
earnings release contains 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, and (2) adjusted EBITDA margin. The Company provides such non-GAAP financial measures because management believes that they are useful both to management and investors as
a supplement, and not as a substitute, when evaluating the Company s operating performance. Additionally, management believes that adjusted EBITDA and adjusted EBITDA margin serve as industry-wide financial measures, and it uses adjusted EBITDA
for making financial decisions and allocating resources. The non-GAAP measures in this release are not in accordance with, or an alternative to, GAAP, and may be different from non-GAAP measures, or may be calculated differently than other similarly
title captioned non-GAAP measures, reported by other companies. They should not be used in isolation to evaluate the Company s performance. A reconciliation of non-GAAP measures identified in this release, along with further detail about
the use and limitations of certain of these non-GAAP measures, may be found below in the table entitled Supplemental Financial and Operating Data under the caption entitled Reconciliation of Non-GAAP Items or on the Company s
website at http://amnhealthcare.investorroom.com/financialreports. Additionally, from time to time, additional information regarding non-GAAP financial measures, including pro forma measures, may be made available on the Company s
Forward-Looking Statements
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 2014 second quarter revenue, gross margin, SG&A expenses and adjusted EBITDA margin. 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, 2013 and its other periodic reports as well as the Company s current and other reports filed from time to time with the Securities
and Exchange Commission. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated with the passage of time.
Vice President, Investor Relations
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands, except per share amounts)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2014 | 2013 | 2013 | ||||||||||
| Revenue | $ | 240,881 | $ | 252,120 | $ | 248,658 | ||||||
| Cost of revenue | 166,925 | 179,113 | 174,465 | |||||||||
| Gross profit | 73,956 | 73,007 | 74,193 | |||||||||
| 30.7 | % | 29.0 | % | 29.8 | % | |||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 54,667 | 53,607 | 54,470 | |||||||||
| 22.7 | % | 21.3 | % | 21.9 | % | |||||||
| Depreciation and amortization | 3,820 | 3,290 | 3,698 | |||||||||
| Total operating expenses | 58,487 | 56,897 | 58,168 | |||||||||
| Income from operations | 15,469 | 16,110 | 16,025 | |||||||||
| Interest expense, net and other | 1,846 | 2,859 | 1,836 | |||||||||
| Income before income taxes | 13,623 | 13,251 | 14,189 | |||||||||
| Income tax expense | 5,993 | 5,688 | 5,833 | |||||||||
| Net income | $ | 7,630 | $ | 7,563 | $ | 8,356 | ||||||
| Net income per common share: | ||||||||||||
| Basic | $ | 0.16 | $ | 0.17 | $ | 0.18 | ||||||
| diluted | $ | 0.16 | $ | 0.16 | $ | 0.17 | ||||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 46,354 | 45,813 | 46,010 | |||||||||
| Diluted | 47,917 | 47,679 | 47,818 | |||||||||
| Other comprehensive income (loss) | (9 | ) | 93 | (36 | ) | |||||||
| Comprehensive income | $ | 7,621 | $ | 7,656 | $ | 8,320 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share data)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2014 | 2013 | 2013 | ||||||||||
| Revenue | ||||||||||||
| Nurse and allied healthcare staffing | $163,450 | $ | 176,765 | $ | 164,121 | |||||||
| Locum tenens staffing | 66,871 | 65,456 | 74,067 | |||||||||
| Physician permanent placement services | 10,560 | 9,899 | 10,470 | |||||||||
| $ | 240,881 | $ | 252,120 | $ | 248,658 | |||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||
| Segment operating income(1) | ||||||||||||
| Nurse and allied healthcare staffing | $ | 19,972 | $ | 22,474 | $ | 19,464 | ||||||
| Locum tenens staffing | 6,873 | 4,892 | 7,365 | |||||||||
| Physician permanent placement services | 2,131 | 2,241 | 2,194 | |||||||||
| 28,976 | 29,607 | 29,023 | ||||||||||
| Unallocated corporate overhead | 7,868 | 8,505 | 7,842 | |||||||||
| Adjusted EBITDA(2) | 21,108 | 21,102 | 21,181 | |||||||||
| Adjusted EBITDA margin(3) | 8.8 | % | 8.4 | % | 8.5 | % | ||||||
| Depreciation and amortization | 3,820 | 3,290 | 3,698 | |||||||||
| Share-based compensation | 1,819 | 1,702 | 1,458 | |||||||||
| Interest expense, net and other | 1,846 | 2,859 | 1,836 | |||||||||
| Income before income taxes | 13,623 | 13,251 | 14,189 | |||||||||
| Income tax expense | 5,993 | 5,688 | 5,833 | |||||||||
| Net income | $ | 7,630 | $ | 7,563 | $ | 8,356 | ||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2014 | 2013 | 2013 | ||||||||||
| Gross Margin | ||||||||||||
| Nurse and allied healthcare staffing | 29.0 | % | 27.5 | % | 27.7 | % | ||||||
| Locum tenens staffing | 29.9 | % | 27.9 | % | 29.9 | % | ||||||
| Physician permanent placement services | 63.0 | % | 62.6 | % | 63.0 | % | ||||||
| Operating Data: | ||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||
| Average clinicians on assignment(4) | 5,633 | 6,215 | 5,609 | |||||||||
| Locum tenens staffing | ||||||||||||
| Days filled(5) | 44,749 | 45,357 | 50,529 |
| As of March 31 | As of December 31, | |||||||||||
| 2014 | 2013 | 2013 | ||||||||||
| Leverage ratio(6) | 2.0 | 2.3 | 2.0 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| March 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,269 | $ | 15,580 | ||||
| Accounts receivable, net | 150,840 | 147,477 | ||||||
| Accounts receivable, subcontractor | 18,680 | 18,271 | ||||||
| Deferred income taxes, net | 24,867 | 24,938 | ||||||
| Prepaid and other current assets | 24,818 | 23,833 | ||||||
| Total current assets | 228,474 | 230,099 | ||||||
| Restricted cash, cash equivalents and investments | 21,641 | 23,115 | ||||||
| Fixed assets, net | 24,400 | 21,158 | ||||||
| Deposits and other assets | 26,667 | 23,023 | ||||||
| Goodwill | 144,937 | 144,642 | ||||||
| Intangible assets, net | 148,317 | 150,197 | ||||||
| Total assets | $ | 594,436 | $ | 592,234 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | 62,685 | 69,407 | ||||||
| Accrued compensation and benefits | 55,833 | 54,825 | ||||||
| Revolving credit facility | 10,000 | 10,000 | ||||||
| Current portion of notes payable | 7,500 | 0 | ||||||
| Other current liabilities | 5,212 | 6,060 | ||||||
| Total current liabilities | 141,230 | 140,292 | ||||||
| Notes payable, less current portion and discount | 141,227 | 148,672 | ||||||
| Other long-term liabilities | 87,098 | 85,528 | ||||||
| Total liabilities | 369,555 | 374,492 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders equity | 224,881 | 217,742 | ||||||
| Total liabilities and stockholders equity | $ | 594,436 | $ | 592,234 |
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2014 | 2013 | 2013 | ||||||||||
| Net cash provided by (used in) operating activities | $ | 991 | $ | (2,218 | ) | $ | 15,538 | |||||
| Net cash (used in) investing activities | (4,709 | ) | (2,636 | ) | (42,100 | ) | ||||||
| Net cash (used in) provided by financing activities | (2,584 | ) | 1,019 | 10,525 | ||||||||
| Effect of exchange rates on cash | (9 | ) | 93 | (36 | ) | |||||||
| Net decrease in cash and cash equivalents | (6,311 | ) | (3,742 | ) | (16,073 | ) | ||||||
| Cash and cash equivalents at beginning of period | 15,580 | 5,681 | 31,653 | |||||||||
| Cash and cash equivalents at end of period | $ | 9,269 | $ | 1,939 | $ | 15,580 |