Full Press Release Details
| Contact: | ||||
| Amy C. Chang | ||||
| Vice President, Investor Relations | ||||
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES FULL YEAR AND FOURTH QUARTER 2011 RESULTS
SAN DIEGO (March 8, 2012) AMN Healthcare Services, Inc. (NYSE: AHS), the nation s innovator in healthcare workforce solutions, today
announced financial results for the full year and fourth quarter 2011. The results were at the upper end of management s expectations, the Company said. Financial highlights are as follows:
(Dollars in millions, except per share amounts. Amounts have been adjusted to reflect the impact of the discontinued operations associated with the
disposal of the Home Healthcare Services segment in January 2012.)
| Q4 2011 | % Chg Q4 2010 | % Chg Q3 2011 | Full Year 2011 | % Chg Full Year 2010 | ||||||||||||||||
| Revenue | $ | 222.1 | 8 | % | (3 | %) | $ | 887.5 | 32 | % | ||||||||||
| Gross Profit | $ | 62.8 | 11 | % | (1 | %) | $ | 249.3 | 35 | % | ||||||||||
| Net Income from Continuing Operations | $ | 1.7 | NM | 68 | % | $ | 5.0 | NM | ||||||||||||
| Net Loss | $ | (2.4 | ) | 50 | % | (91 | %) | $ | (26.3 | ) | (49 | %) | ||||||||
| Net Loss per Diluted Share | $ | (0.05 | ) | 67 | % | (92 | %) | $ | (0.57 | ) | (62 | %) | ||||||||
| Adjusted EBITDA* | $ | 15.8 | 57 | % | (2 | %) | $ | 64.0 | 62 | % | ||||||||||
| Adjusted EPS* | $ | 0.04 | NM | 0 | % | $ | 0.16 | 700 | % |
highlights for the full year and fourth quarter of 2011 are as follows:
Going into 2012, we are focused on fulfilling our clients desire for more workforce solutions and innovative service
offerings. AMN s leading position and differentiated value proposition in workforce solutions has put us at the forefront of growth and thought leadership in our industry, said Susan R. Salka, President and Chief Executive Officer of AMN
Healthcare. An indicator of the positive client reaction to our differentiated capabilities was the 20 new MSP contracts won during the year with an estimated $80 million in annualized gross spend under management. We expect these growth
trends in MSP and other workforce solutions to continue.
Full Year and Fourth Quarter 2011 Results
Full year 2011 consolidated revenue was $887 million, an increase of 32% from prior year. Nurse and Allied Healthcare Staffing segment
revenue was $571 million, a year-over-year increase of 54%. Locum Tenens Staffing segment revenue was $278 million, a year-over-year increase of 5%. Physician Permanent Placement Services segment revenue was $39 million, a year-over-year increase of
For the fourth quarter of 2011, consolidated revenue was $222 million, a decrease of 3% sequentially and an increase of
8% from the same quarter last year. The sequential decline was due to typical seasonality from fewer clinicians on assignment and overall fewer hours worked
over the holidays. Fourth quarter revenue for the Nurse and Allied Healthcare Staffing segment was $148 million, flat sequentially and up 16% from the same quarter last year. The Locum Tenens
Staffing segment generated revenue in the fourth quarter of $65 million, a decrease of 10% sequentially and 7% from the same quarter last year. Fourth quarter Physician Permanent Placement Services segment revenue was $9 million, an increase of 2%
sequentially and flat from the same quarter last year.
Full year gross margin was 28.1% as compared to 27.5% for prior year.
The increase in 2011 gross margin was due primarily to favorable workers compensation adjustments and improved performance within the Nurse and Allied Healthcare Staffing segment, the impact from the adoption of a new revenue recognition
accounting standard on January 1, 2011 in the Physician Permanent Placement Services segment, as well as the addition of the higher margin Medfinders businesses. Gross margin in the fourth quarter of 2011 was 28.3%, an increase of 50 basis
points compared to the previous quarter and an increase of 80 basis points from the same quarter last year.
year, SG&A expenses as a percentage of revenue were 22.0% compared to 24.3% for the prior year, due primarily to improved operating leverage and the cost synergies achieved through the integration of Medfinders. SG&A expenses for the fourth
quarter of 2011 were $49.0 million, representing 22.1% as a percent of revenue, compared to 21.6% in the prior quarter and 24.6% in the same quarter last year. The decrease compared to the same quarter last year was due primarily to lower
integration-related expenses associated with the Medfinders acquisition and the resulting improved SG&A leverage. Excluding acquisition and integration related costs, SG&A expenses as a percentage of revenues were 21.9% in the fourth quarter
of 2011, which was up 40 basis points from the prior quarter and down 170 basis points from the same quarter last year.
year and fourth quarter 2011 net loss per diluted common share was ($0.57) and ($0.05), respectively. Full year and fourth quarter 2011 loss per share was impacted by $31.2 million and $7.7 million, respectively, in non-cash goodwill and intangible
asset impairment charges. Excluding the discontinued Home Healthcare Services segment and associated non-cash goodwill and intangible asset impairment charges, integration-related costs, and credit agreement amendment fees charged to interest
expense, adjusted earnings per share for the full year and fourth quarter 2011 was $0.16 and $0.04, respectively.
As of December 31, 2011, cash and cash equivalents totaled $4 million, compared to $2
million as of December 31, 2010. Total debt outstanding, net of discount, as of December 31, 2011 was $205 million, compared to $215 million as of December 31, 2010. Subsequent to year-end, the Company made a voluntary debt payment of
$5 million and paid off its $3 million revolver balance.
Business Trends and Outlook
On a consolidated basis, first quarter revenues are expected to be between $224 million and $228 million, which represents a 1% to 3%
sequential increase. This anticipated sequential increase is driven by continued growth in the Nurse and Allied Healthcare Staffing segment, with flat revenues in the Locum Tenens segment. Gross margin is anticipated to be between 27.5% and 28.0%.
SG&A expenses are expected to be approximately 22.0% of revenues. Adjusted EBITDA margin is expected to be approximately 6.5%.
While the Company does not intend to provide annual guidance on revenue and EPS, on the earnings call today management will provide full year estimates for depreciation and amortization, interest expense,
share count and capital expenditures.
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 http://www.amnhealthcare.com.
Conference Call on March 8, 2012
AMN Healthcare Services, Inc. s fourth quarter 2011 conference call will be held on Thursday, March 8, 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) 230-1074 in the U.S. or (612) 288-0329 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 March 8, 2012, and can be accessed until 11:59 p.m. Eastern Time on March 29, 2012, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 218823.
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 first quarter revenue, revenue growth, gross margin, SG&A, and adjusted EBITDA margin. The company based these
forward-looking statements on its current expectations and projections about future events. 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 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, 2010 and its other periodic reports as well as its current and other reports filed with the SEC. These statements reflect the company s current beliefs and are based
upon information currently available to it. 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 Operations
(dollars in thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2011 | 2010 | 2011 | 2011 | 2010 | ||||||||||||||||
| Revenue | $ | 222,053 | $ | 206,046 | $ | 229,006 | $ | 887,466 | $ | 669,912 | ||||||||||
| Cost of revenue | 159,268 | 149,337 | 165,345 | 638,147 | 485,550 | |||||||||||||||
| Gross profit | 62,785 | 56,709 | 63,661 | 249,319 | 184,362 | |||||||||||||||
| 28.3 | % | 27.5 | % | 27.8 | % | 28.1 | % | 27.5 | % | |||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 48,963 | 50,652 | 49,477 | 195,348 | 162,543 | |||||||||||||||
| 22.1 | % | 24.6 | % | 21.6 | % | 22.0 | % | 24.3 | % | |||||||||||
| Depreciation and amortization | 3,845 | 4,594 | 3,921 | 16,324 | 14,764 | |||||||||||||||
| Impairment charges | 0 | 1,050 | 0 | 0 | 50,832 | |||||||||||||||
| Total operating expenses | 52,808 | 56,296 | 53,398 | 211,672 | 228,139 | |||||||||||||||
| Income (loss) from operations | 9,977 | 413 | 10,263 | 37,647 | (43,777 | ) | ||||||||||||||
| Interest expense, net | 5,620 | 5,751 | 7,017 | 23,727 | 19,762 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | 4,357 | (5,338 | ) | 3,246 | 13,920 | (63,539 | ) | |||||||||||||
| Income tax expense (benefit) | 2,673 | (3,194 | ) | 2,242 | 8,904 | (10,787 | ) | |||||||||||||
| Income (loss) from continuing operations, net of tax | 1,684 | (2,144 | ) | 1,004 | 5,016 | (52,752 | ) | |||||||||||||
| Income (loss) from discontinued operations, net of tax | (4,119 | ) | 526 | (27,903 | ) | (31,281 | ) | 761 | ||||||||||||
| Net loss | $ | (2,435 | ) | $ | (1,618 | ) | $ | (26,899 | ) | $ | (26,265 | ) | $ | (51,991 | ) | |||||
| Basic income (loss) per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.04 | $ | (0.05 | ) | $ | 0.02 | $ | 0.12 | $ | (1.51 | ) | ||||||||
| Discontinued operations | (0.10 | ) | 0.01 | (0.69 | ) | (0.78 | ) | 0.02 | ||||||||||||
| Net loss | $ | (0.06 | ) | $ | (0.03 | ) | $ | (0.67 | ) | $ | (0.66 | ) | $ | (1.49 | ) | |||||
| Diluted income (loss) per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.04 | $ | (0.05 | ) | $ | 0.02 | $ | 0.11 | $ | (1.51 | ) | ||||||||
| Discontinued operations | (0.09 | ) | 0.01 | (0.61 | ) | (0.68 | ) | 0.02 | ||||||||||||
| Net loss | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.59 | ) | $ | (0.57 | ) | $ | (1.49 | ) | |||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 40,440 | 39,121 | 40,327 | 39,913 | 34,840 | |||||||||||||||
| Diluted | 46,034 | 39,121 | 45,950 | 45,951 | 34,840 |
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, | ||||||||||||||||||
| 2011 | 2010 | 2011 | 2011 | 2010 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 148,136 | $ | 127,292 | $ | 147,738 | $ | 570,677 | $ | 371,147 | ||||||||||
| Locum tenens staffing | 64,553 | 69,434 | 72,080 | 277,919 | 264,726 | |||||||||||||||
| Physician permanent placement services | 9,364 | 9,320 | 9,188 | 38,870 | 34,039 | |||||||||||||||
| $ | 222,053 | $ | 206,046 | $ | 229,006 | $ | 887,466 | $ | 669,912 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment Operating Income(1) | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 18,050 | $ | 10,693 | $ | 15,197 | $ | 62,786 | $ | 35,279 | ||||||||||
| Locum tenens staffing | 3,930 | 4,765 | 6,283 | 21,689 | 21,999 | |||||||||||||||
| Physician permanent placement services | 2,164 | 2,316 | 2,142 | 10,634 | 7,959 | |||||||||||||||
| 24,144 | 17,774 | 23,622 | 95,109 | 65,237 | ||||||||||||||||
| Unallocated corporate overhead | 8,351 | 7,738 | 7,538 | 31,089 | 25,734 | |||||||||||||||
| Adjusted EBITDA(2) | 15,793 | 10,036 | 16,084 | 64,020 | 39,503 | |||||||||||||||
| Depreciation and amortization | 3,845 | 4,594 | 3,921 | 16,324 | 14,764 | |||||||||||||||
| Stock-based compensation | 1,713 | 1,931 | 1,689 | 7,098 | 8,272 | |||||||||||||||
| Acquisition related costs | 258 | 2,048 | 211 | 2,951 | 9,412 | |||||||||||||||
| Impairment charges | 0 | 1,050 | 0 | 0 | 50,832 | |||||||||||||||
| Interest expense, net | 5,620 | 5,751 | 7,017 | 23,727 | 19,762 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | 4,357 | (5,338 | ) | 3,246 | 13,920 | (63,539 | ) | |||||||||||||
| Income tax expense (benefit) | 2,673 | (3,194 | ) | 2,242 | 8,904 | (10,787 | ) | |||||||||||||
| Net income (loss) from continuing operations | 1,684 | (2,144 | ) | 1,004 | 5,016 | (52,752 | ) | |||||||||||||
| Net income (loss) from discontinued operations | (4,119 | ) | 526 | (27,903 | ) | (31,281 | ) | 761 | ||||||||||||
| Net income (loss) | $ | (2,435 | ) | $ | (1,618 | ) | $ | (26,899 | ) | $ | (26,265 | ) | $ | (51,991 | ) | |||||
| GAAP based diluted net loss per share (EPS) | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.59 | ) | $ | (0.57 | ) | $ | (1.49 | ) | |||||
| Adjustments: | ||||||||||||||||||||
| Acquisition related costs | 0.00 | 0.02 | 0.00 | 0.04 | 0.17 | |||||||||||||||
| Impairment charges | 0.00 | 0.01 | 0.00 | 0.00 | 1.27 | |||||||||||||||
| Financing costs | 0.00 | 0.00 | 0.02 | 0.01 | 0.09 | |||||||||||||||
| Impact of assumed preferred dividends | 0.00 | (0.01 | ) | 0.00 | 0.00 | 0.00 | ||||||||||||||
| Discontinued operations | 0.09 | (0.01 | ) | 0.61 | 0.68 | (0.02 | ) | |||||||||||||
| Adjusted diluted earnings (loss) per share (3) | $ | 0.04 | $ | (0.02 | ) | $ | 0.04 | $ | 0.16 | $ | 0.02 |
| Twelve Months Ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2011 Consolidated | 2010 Historical Consolidated | 2010 PRO FORMA (4) | % Change vs. PRO FORMA | |||||||||||||
| Reconciliation of Pro Forma Items (4) | ||||||||||||||||
| Consolidated Revenue (5) | $ | 887,466 | $ | 669,912 | 800,692 | 11 | % | |||||||||
| Adjusted EBITDA (5) | 64,020 | 39,502 | 45,756 | 40 | % | |||||||||||
| Adjusted EBITDA Margin (5) | 7.2 | % | 5.7 | % | 150bps | |||||||||||
| Revenue nurse and allied healthcare staffing (6) | 570,677 | 371,147 | 480,627 | 19 | % | |||||||||||
| Adjusted EBITDA nurse and allied healthcare staffing (6) | 62,786 | 35,279 | 42,372 | 48 | % | |||||||||||
| Adjusted EBITDA Margin nurse and allied healthcare staffing (6) | 11.0 | % | 8.8 | % | 220bps | |||||||||||
| Revenue Travel Nurse Division (7) | 347,549 | 247,432 | 263,726 | 32 | % | |||||||||||
| Adjusted EBITDA Travel Nurse Division (7) | 47,235 | 27,377 | 27,634 | 71 | % |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2011 | 2010 | 2011 | 2011 | 2010 | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied healthcare staffing | 27.4 | % | 26.1 | % | 26.6 | % | 26.8 | % | 25.9 | % | ||||||||||
| Locum tenens staffing | 25.5 | % | 25.4 | % | 26.0 | % | 25.8 | % | 25.7 | % | ||||||||||
| Physician permanent placement services | 61.7 | % | 62.3 | % | 60.5 | % | 63.0 | % | 58.4 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||
| Average travelers on assignment (8) | 5,317 | 4,727 | 5,300 | 5,208 | 3,501 | |||||||||||||||
| Revenue per traveler per day (9) | $ | 302.84 | $ | 292.70 | $ | 302.99 | $ | 300.21 | $ | 290.44 | ||||||||||
| Gross profit per traveler per day (9) | $ | 82.91 | $ | 76.54 | $ | 80.70 | $ | 80.55 | $ | 75.37 | ||||||||||
| Locum tenens staffing | ||||||||||||||||||||
| Days filled (10) | 47,610 | 48,502 | 51,292 | 199,196 | 187,953 | |||||||||||||||
| Revenue per day filled (10) | $ | 1,355.87 | $ | 1,431.57 | $ | 1,405.29 | $ | 1,395.20 | $ | 1,408.47 | ||||||||||
| Gross profit per day filled (10) | $ | 345.50 | $ | 363.20 | $ | 365.64 | $ | 360.05 | $ | 362.66 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
| December 31, 2011 | September 30, 2011 | December 31, 2010 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 3,962 | $ | 4,643 | $ | 1,883 | ||||||
| Accounts receivable, net | 146,654 | 143,938 | 127,464 | |||||||||
| Accounts receivable, subcontractor | 22,497 | 17,441 | 17,082 | |||||||||
| Prepaid expenses | 5,691 | 6,032 | 6,969 | |||||||||
| Income taxes receivable | 3,372 | 2,210 | 3,760 | |||||||||
| Deferred income taxes, net | 19,335 | 19,938 | 20,170 | |||||||||
| Other current assets | 3,652 | 3,250 | 1,933 | |||||||||
| Assets held for sale | 7,310 | 0 | 0 | |||||||||
| Total current assets | 212,473 | 197,452 | 179,261 | |||||||||
| Restricted cash, cash equivalents and investments | 18,244 | 18,250 | 20,961 | |||||||||
| Fixed assets, net | 16,863 | 18,134 | 21,777 | |||||||||
| Deposits and other assets | 19,329 | 19,769 | 20,116 | |||||||||
| Deferred income taxes, net | 1,823 | 243 | 243 | |||||||||
| Goodwill | 123,324 | 130,089 | 154,176 | |||||||||
| Intangible assets, net | 143,575 | 153,465 | 165,576 | |||||||||
| Total assets | $ | 535,631 | $ | 537,402 | $ | 562,110 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Bank overdraft | $ | 3,515 | $ | 4,779 | $ | 4,463 | ||||||
| Accounts payable and accrued expenses | 49,809 | 47,198 | 45,867 | |||||||||
| Accrued compensation and benefits | 43,649 | 43,500 | 38,060 | |||||||||
| Revolving credit facility | 3,000 | 3,000 | 0 | |||||||||
| Current portion of notes payable | 28,125 | 20,812 | 13,875 | |||||||||
| Deferred revenue | 2,155 | 2,585 | 7,191 | |||||||||
| Other current liabilities | 8,313 | 6,812 | 8,437 | |||||||||
| Liabilities related to assets held for sale | 1,486 | 0 | 0 | |||||||||
| Total current liabilities | 140,052 | 128,686 | 117,893 | |||||||||
| Notes payable, less current portion and discount | 174,198 | 185,767 | 200,811 | |||||||||
| Other long-term liabilities | 61,646 | 62,484 | 61,575 | |||||||||
| Total liabilities | 375,896 | 376,937 | 380,279 | |||||||||
| Preferred Stock | 24,076 | 24,388 | 28,376 | |||||||||
| Stockholders equity | 135,659 | 136,077 | 153,455 | |||||||||
| Total liabilities and stockholders equity | $ | 535,631 | $ | 537,402 | $ | 562,110 |
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Cash Flows
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2011 | 2010 | 2011 | 2011 | 2010 | ||||||||||||||||
| Net cash provided by operating activities | $ | 6,513 | $ | 4,849 | $ | 4,881 | $ | 19,312 | $ | 8,089 | ||||||||||
| Net cash used in investing activities | (1,142 | ) | (2,805 | ) | (1,107 | ) | (1,981 | ) | (6,846 | ) | ||||||||||
| Net cash used in financing activities | (6,070 | ) | (2,240 | ) | (7,087 | ) | (15,300 | ) | (26,449 | ) | ||||||||||
| Effect of exchange rates on cash | 18 | 2 | 32 | 48 | 36 | |||||||||||||||
| Net increase (decrease) in cash and cash equivalents | (681 | ) | (194 | ) | (3,281 | ) | 2,079 | (25,170 | ) | |||||||||||
| Cash and cash equivalents at beginning of period | 4,643 | 2,077 | 7,924 | 1,883 | 27,053 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 3,962 | $ | 1,883 | $ | 4,643 | $ | 3,962 | $ | 1,883 |