Full Press Release Details
| Contact: Amy C. Chang | ||
| Vice President, Investor Relations | ||
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2013
revenue increases by 6% to $1 billion
Fourth quarter diluted EPS of $0.17 vs. $0.15 in prior year
SAN DIEGO (February 20, 2014) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s innovator in workforce solutions and staffing
services, today announced full year and fourth quarter 2013 financial results, which were in line with the Company s guidance for revenue and exceeded its guidance for adjusted EBITDA. Fourth quarter and full year financial highlights are as
Dollars in millions, except per share amounts.
| Q4 2013 | % Change Q4 2012 | Full Year 2013 | % Change Full Year 2012* | |||||||||
| Revenue | $ | 248.7 | 0% | $ | 1,011.8 | 6% | ||||||
| Gross profit | $ | 74.2 | 5% | $ | 297.3 | 10% | ||||||
| Net income | $ | 8.4 | 18% | $ | 32.9 | 102% | ||||||
| Diluted EPS | $ | 0.17 | 13% | $ | 0.69 | 97% | ||||||
| Adjusted EBITDA** | $ | 21.2 | 10% | $ | 85.2 | 16% |
In 2013, AMN delivered solid growth in consolidated revenue, gross margin and adjusted EBITDA margin through our differentiated strategy
of providing innovative workforce solutions. Despite the current softer hospital census, demand for healthcare services is generally anticipated to expand as the impact of the Affordable Care Act unfolds. This, in combination with our leadership
position in providing MSP and other workforce solutions, gives us a positive outlook for 2014, said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. Our strategic acquisition of ShiftWise is another important
milestone in expanding AMN s leadership position as healthcare s innovator in workforce solutions. ShiftWise s VMS solution offers clients a vendor-neutral technology option, while at the same time bolstering our own service delivery
to MSP clients who prefer to have AMN manage their contingent labor program. ShiftWise demonstrates AMN s commitment to serving our clients with different approaches to efficiently managing their workforce.
Full Year 2013 Results
consolidated revenue was $1,012 million, an increase of 6% from prior year. Nurse and Allied Healthcare Staffing segment revenue was $682 million, a year-over-year increase of 4%. Locum Tenens Staffing segment revenue was $287 million, a
year-over-year increase of 10%. Physician Permanent Placement Services segment revenue was $42 million, a year-over-year increase of 9%.
Full year gross margin was 29.4% as compared to 28.3% for prior year, resulting from an increase in gross margin in all three reportable
Full year SG&A expenses were $218 million, representing 21.6% of revenue as compared to 21.3% for the prior year. The
increase in SG&A expenses was due primarily to costs related to supporting growth in the business and strategic investments to drive long-term growth, as well as higher professional liability costs in the Locum Tenens Staffing segment.
Full year net income was $33 million. Full year net income per diluted common share was $0.69.
Full year adjusted EBITDA grew 16% to $85 million. Adjusted EBITDA margin of 8.4% represented a 70 basis point increase over prior year and was driven by an improved gross margin.
At December 31, 2013, cash and cash equivalents totaled $16 million. Full year cash flow from operations was $59 million. The Company
ended the year with total debt outstanding, net of discount, of $159 million, with a leverage ratio of 2.0 to 1. Capital expenditures during the year were $9 million.
Fourth Quarter 2013 Results
the fourth quarter of 2013, consolidated revenue was $249 million, flat with the same quarter last year and a decrease of 3% sequentially. Fourth quarter revenue for the Nurse and Allied Healthcare Staffing segment was $164 million, down 6% from the
same quarter last year and 4% sequentially. Locum Tenens Staffing segment revenue in the fourth quarter was $74 million, an increase of 18% from the same quarter last year and down 2% sequentially. Fourth quarter Physician Permanent Placement
Services segment revenue was $10 million, an increase of 4% from the same quarter last year and down 4% sequentially.
gross margin of 29.8% was higher by 130 basis points than the same quarter last year and higher by 40 basis points sequentially. The increase was due to gross margin improvement in the Locum Tenens Staffing and Nurse and Allied Healthcare Staffing
SG&A expenses for the fourth quarter were $54 million, representing 21.9% of revenue, compared to 21.4% of revenue in the
same quarter last year and 21.6% of revenue in the prior quarter. The increase in SG&A expenses as a percentage of revenue was due primarily to the additional SG&A expenses from ShiftWise.
Fourth quarter net income was $8 million and net income per diluted share was $0.17. Fourth
quarter adjusted EBITDA was $21 million, a year-over-year increase of 10% and sequential decrease of 2%. Adjusted EBITDA margin of 8.5% represented a 70 basis point increase over prior year and was driven by the improvement in gross margin.
Fourth quarter cash flow from operations was $16 million and capital expenditures were $3 million.
Business Trends and Outlook
Company expects consolidated first quarter 2014 revenue of $244 million to $248 million. Gross margin is expected to be between 30.0% to 30.5%, reflecting a full quarter of our higher-margin Shiftwise business. SG&A expenses as a percentage of
revenue are expected to be between 22.5% to 23.0%, which includes a full quarter of ShiftWise expenses, as well as certain strategic investments to drive long-term operating efficiency and expansion of our workforce solutions. Adjusted EBITDA margin
is expected to be 8.0% to 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. For more information, visit www.amnhealthcare.com.
Conference Call on February 20, 2014
AMN Healthcare Services, Inc. s fourth quarter and full year 2013 conference call will be held on Thursday, February 20, 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) 553-5275 in the U.S. or (612) 332-1025 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 7:30 p.m. Eastern Time on February 20, 2014, and can be accessed until 11:59 p.m. Eastern Time on March 6, 2014, by calling (800) 475-6701 in the
U.S. or (320) 365-3844 internationally, with access code 317086.
This 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 website.
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 future market demand, 2014 first 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, 2012 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
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
| Revenue | $ | 248,658 | $ | 247,841 | $ | 257,095 | $ | 1,011,816 | $ | 953,951 | ||||||||||
| Cost of revenue | 174,465 | 177,214 | 181,428 | 714,536 | 683,554 | |||||||||||||||
| Gross profit | 74,193 | 70,627 | 75,667 | 297,280 | 270,397 | |||||||||||||||
| 29.8 | % | 28.5 | % | 29.4 | % | 29.4 | % | 28.3 | % | |||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 54,470 | 53,049 | 55,605 | 218,233 | 202,904 | |||||||||||||||
| 21.9 | % | 21.4 | % | 21.6 | % | 21.6 | % | 21.3 | % | |||||||||||
| Depreciation and amortization | 3,698 | 3,469 | 3,317 | 13,545 | 14,151 | |||||||||||||||
| Total operating expenses | 58,168 | 56,518 | 58,922 | 231,778 | 217,055 | |||||||||||||||
| Income from operations | 16,025 | 14,109 | 16,745 | 65,502 | 53,342 | |||||||||||||||
| Interest expense, net | 1,836 | 3,208 | 1,840 | 9,665 | 26,019 | |||||||||||||||
| Income from continuing operations before income taxes | 14,189 | 10,901 | 14,905 | 55,837 | 27,323 | |||||||||||||||
| Income tax expense | 5,833 | 3,818 | 6,290 | 22,904 | 11,010 | |||||||||||||||
| Income from continuing operations | 8,356 | 7,083 | 8,615 | 32,933 | 16,313 | |||||||||||||||
| Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 823 | |||||||||||||||
| Net income | $ | 8,356 | $ | 7,083 | $ | 8,615 | $ | 32,933 | $ | 17,136 | ||||||||||
| Basic income per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.18 | $ | 0.16 | $ | 0.19 | $ | 0.72 | $ | 0.36 | ||||||||||
| Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | |||||||||||||||
| Net income | $ | 0.18 | $ | 0.16 | $ | 0.19 | $ | 0.72 | $ | 0.38 | ||||||||||
| Diluted income per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.17 | $ | 0.15 | $ | 0.18 | $ | 0.69 | $ | 0.35 | ||||||||||
| Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | |||||||||||||||
| Net income | $ | 0.17 | $ | 0.15 | $ | 0.18 | $ | 0.69 | $ | 0.37 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 46,010 | 44,270 | 45,986 | 45,963 | 41,632 | |||||||||||||||
| Diluted | 47,818 | 47,296 | 47,810 | 47,787 | 46,709 | |||||||||||||||
| Other comprehensive loss foreign currency translation | (36 | ) | (5 | ) | (84 | ) | (55 | ) | (70 | ) | ||||||||||
| Comprehensive income | $ | 8,320 | $ | 7,078 | $ | 8,531 | $ | 32,878 | $ | 17,066 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except operating data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 164,121 | $ | 174,997 | $ | 170,955 | $ | 681,979 | $ | 653,829 | ||||||||||
| Locum tenens staffing | 74,067 | 62,739 | 75,253 | 287,484 | 261,431 | |||||||||||||||
| Physician permanent placement services | 10,470 | 10,105 | 10,887 | 42,353 | 38,691 | |||||||||||||||
| $ | 248,658 | $ | 247,841 | $ | 257,095 | $ | 1,011,816 | $ | 953,951 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment operating income(1) | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 19,464 | $ | 21,601 | $ | 20,392 | $ | 82,458 | $ | 75,907 | ||||||||||
| Locum tenens staffing | 7,365 | 4,808 | 7,547 | 24,712 | 21,613 | |||||||||||||||
| Physician permanent placement services | 2,194 | 2,071 | 2,205 | 8,929 | 7,868 | |||||||||||||||
| 29,023 | 28,480 | 30,144 | 116,099 | 105,388 | ||||||||||||||||
| Unallocated corporate overhead | 7,842 | 9,256 | 8,595 | 30,927 | 31,674 | |||||||||||||||
| Adjusted EBITDA(2) | 21,181 | 19,224 | 21,549 | 85,172 | 73,714 | |||||||||||||||
| Adjusted EBITDA margin(3) | 8.5 | % | 7.8 | % | 8.4 | % | 8.4 | % | 7.7 | % | ||||||||||
| Depreciation and amortization | 3,698 | 3,469 | 3,317 | 13,545 | 14,151 | |||||||||||||||
| Share-based compensation | 1,458 | 1,646 | 1,487 | 6,125 | 6,221 | |||||||||||||||
| Interest expense, net | 1,836 | 3,208 | 1,840 | 9,665 | 26,019 | |||||||||||||||
| Income from continuing operations before income taxes | 14,189 | 10,901 | 14,905 | 55,837 | 27,323 | |||||||||||||||
| Income tax expense | 5,833 | 3,818 | 6,290 | 22,904 | 11,010 | |||||||||||||||
| Net income from continuing operations | 8,356 | 7,083 | 8,615 | 32,933 | 16,313 | |||||||||||||||
| Net income from discontinued operations | 0 | 0 | 0 | 0 | 823 | |||||||||||||||
| Net income | $ | 8,356 | $ | 7,083 | $ | 8,615 | $ | 32,933 | $ | 17,136 |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied healthcare staffing | 27.7 | % | 26.6 | % | 27.4 | % | 27.4 | % | 26.5 | % | ||||||||||
| Locum tenens staffing | 29.9 | % | 28.0 | % | 29.3 | % | 29.1 | % | 27.9 | % | ||||||||||
| Physician permanent placement services | 63.0 | % | 65.2 | % | 62.6 | % | 62.7 | % | 62.3 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||
| Average clinicians on assignment (4) | 5,609 | 6,075 | 5,771 | 5,880 | 5,748 | |||||||||||||||
| Revenue per clinician per day(5) | $ | 318.05 | $ | 313.11 | $ | 321.99 | $ | 317.76 | $ | 310.79 | ||||||||||
| Gross profit per clinician per day(5) | $ | 88.03 | $ | 83.17 | $ | 88.12 | $ | 87.18 | $ | 82.47 | ||||||||||
| Locum tenens staffing | ||||||||||||||||||||
| Days filled (6) | 50,529 | 44,377 | 50,993 | 197,006 | 182,987 | |||||||||||||||
| Revenue per day filled(6) | $ | 1,465.83 | $ | 1,413.77 | $ | 1,475.75 | $ | 1,459.27 | $ | 1,428.69 | ||||||||||
| Gross profit per day filled(6) | $ | 438.79 | $ | 395.50 | $ | 432.73 | $ | 424.46 | $ | 397.92 | ||||||||||
| As of December 31 | As of September 30, | |||||||||||||||||||
| 2013 | 2012 | 2013 | ||||||||||||||||||
| Leverage ratio (7) | 2.0 | 2.4 | 1.9 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| December 31, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 15,580 | $ | 31,653 | $ | 5,681 | ||||||
| Accounts receivable, net | 147,477 | 144,933 | 142,510 | |||||||||
| Accounts receivable, subcontractor | 18,271 | 18,869 | 18,467 | |||||||||
| Deferred income taxes, net | 24,938 | 17,642 | 18,123 | |||||||||
| Prepaid and other current assets | 23,833 | 13,183 | 18,963 | |||||||||
| Total current assets | 230,099 | 226,280 | 203,744 | |||||||||
| Restricted cash, cash equivalents and investments | 23,115 | 22,039 | 18,861 | |||||||||
| Fixed assets, net | 21,158 | 17,405 | 14,815 | |||||||||
| Other assets | 23,023 | 23,002 | 19,732 | |||||||||
| Goodwill | 144,642 | 123,324 | 123,324 | |||||||||
| Intangible assets, net | 150,197 | 132,127 | 136,910 | |||||||||
| Total assets | $ | 592,234 | $ | 544,177 | $ | 517,386 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued expenses | 69,407 | 54,842 | 52,619 | |||||||||
| Accrued compensation and benefits | 54,825 | 54,220 | 49,443 | |||||||||
| Revolving credit facility | 10,000 | 0 | 0 | |||||||||
| Other current liabilities | 6,060 | 6,251 | 7,463 | |||||||||
| Total current liabilities | 140,292 | 115,313 | 109,525 | |||||||||
| Notes payable, net of discount | 148,672 | 148,616 | 158,178 | |||||||||
| Other long-term liabilities | 85,528 | 71,976 | 67,572 | |||||||||
| Total liabilities | 374,492 | 335,905 | 335,275 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders equity | 217,742 | 208,272 | 182,111 | |||||||||
| Total liabilities and stockholders equity | $ | 592,234 | $ | 544,177 | $ | 517,386 |
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30 | December 31, | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
| Net cash provided by operating activities | $ | 15,538 | $ | 18,450 | $ | 26,577 | $ | 58,637 | $ | 60,512 | ||||||||||
| Net cash provided by (used in) provided by investing activities | (42,100 | ) | (1,257 | ) | (503 | ) | (47,900 | ) | 2,961 | |||||||||||
| Net cash provided by (used in) financing activities | 10,525 | (15,330 | ) | (4,856 | ) | (783 | ) | (61,684 | ) | |||||||||||
| Effect of exchange rates on cash | (36 | ) | (5 | ) | (84 | ) | (55 | ) | (70 | ) | ||||||||||
| Net (decrease) increase in cash and cash equivalents | (16,073 | ) | 1,858 | 21,134 | 9,899 | 1,719 | ||||||||||||||
| Cash and cash equivalents at beginning of period | 31,653 | 3,823 | 10,519 | 5,681 | 3,962 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 15,580 | $ | 5,681 | $ | 31,653 | $ | 15,580 | $ | 5,681 |