Full Press Release Details
Vice President, Investor Relations
AMN HEALTHCARE ANNOUNCES SECOND QUARTER 2012 RESULTS
Reports quarterly revenue of $236 million, up 7% year-over-year
Adjusted EPS of $0.11 vs. $0.03 prior year
SAN DIEGO (August 2, 2012) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s innovator in workforce solutions and staffing services, today announced second quarter 2012 financial
results which exceeded the Company s guidance. Second quarter financial highlights are as follows:
Dollars in millions, except per share
| Q2 2012 | % Chg Q2 2011 | % Chg Q1 2012 | YTD June 30, 2012 | % Chg June 30, 2011 | ||||||||||||||||
| Revenue | $ | 235.8 | 7 | % | 4 | % | $ | 462.2 | 6 | % | ||||||||||
| Gross profit | $ | 67.0 | 11 | % | 6 | % | $ | 130.2 | 6 | % | ||||||||||
| Net income (loss) from continuing operations | $ | (0.1 | ) | NM | NM | $ | 3.4 | 45 | % | |||||||||||
| Diluted EPS from continuing operations | $ | 0.00 | NM | NM | $ | 0.07 | 40 | % | ||||||||||||
| Adjusted EBITDA* | $ | 18.2 | 23 | % | 4 | % | $ | 35.7 | 11 | % | ||||||||||
| Adjusted EPS from continuing operations* | $ | 0.11 | 267 | % | NM | $ | 0.20 | 150 | % |
AMN Healthcare continues to further differentiate itself with clients through our innovative healthcare workforce solutions and
staffing services which help providers cost effectively achieve excellence in patient care. Our clients are seeing the value in these services, as we continue to win and implement new managed services programs and other workforce solutions
contracts, said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare.
In the second quarter,
we experienced solid performance with revenues and gross margins up sequentially across all business segments as a result of the improved demand environment and solid everyday execution by our sales and operations team. With the impact of healthcare
reform and the aging population, severe healthcare workforce shortages are expected to materialize over the next few years resulting in more significant demand for recruitment and staffing services. To meet our clients needs and deliver
continued industry-leading performance, we are increasing our investment in our strategic workforce solutions and new candidate recruitment initiatives, added Salka.
Second Quarter 2012 Results
For the second quarter of 2012, the
Company generated consolidated revenue of $236 million, an increase of 7% from the same quarter last year and 4% sequentially. Second quarter revenue for the Nurse and Allied Healthcare Staffing segment was $159 million, up 13% from the same quarter
last year and 3% sequentially. The Locum Tenens Staffing segment generated revenue in the second quarter of $68 million, a decrease of 5% from the same quarter last year and an increase of 6% sequentially. Second quarter Physician Permanent
segment revenue was $10 million, an increase of 1% from the same quarter last year and 6% sequentially. Excluding the impact of the prior year adoption of a new revenue recognition accounting
standard, revenue for this segment increased 10% year-over-year.
Gross margin in the second quarter of 28.4% was higher by
110 basis points from the same quarter last year and 50 basis points compared to the previous quarter. The increase in gross margin was due primarily to higher bill to pay spreads in the Locum Tenens Staffing and Nurse and Allied Healthcare Staffing
SG&A expenses for the second quarter of 2012 were $50 million, representing 21.3% of revenue compared to 21.8%
of revenue in the same quarter last year and 20.8% of revenue in the prior quarter. The decrease compared to the same quarter last year was due primarily to the absence of integration-related expenses associated with the Medfinders acquisition and
improved SG&A leverage, offset by increased spending in support of revenue growth and candidate recruitment and workforce solutions initiatives. The increase compared with the prior quarter was due primarily to a refund received in the prior
quarter from the California Employment Development Department.
In the second quarter, the Company refinanced its debt and
charged to interest expense $8.6 million of non-cash deferred costs associated with the previous credit facilities and a $1.2 million pre-payment penalty.
Second quarter 2012 GAAP net income per diluted common share from continuing operations was $0.00. Excluding the one-time costs associated with the debt refinancing, adjusted earnings per diluted common
share from continuing operations was $0.11.
As of June 30, 2012, cash and cash equivalents totaled $15 million and total
debt outstanding, net of discount, was $194 million. Second quarter 2012 cash flow from operations was $21 million and capital expenditures were $1 million. The Company made $4 million in voluntary debt prepayments during second quarter 2012, and
made an additional $20 million in voluntary debt prepayments thus far during the third quarter.
Business Trends and Outlook
The Company expects third quarter consolidated revenue to be between $236 million and $240 million, representing year-over-year revenue
growth of 3% to 5%. Gross margin is expected to be approximately 28.0% to 28.5%. SG&A expenses as a percentage of revenue is expected to remain consistent with second quarter of 2012 including approximately $1 million of expenses related to
strategic initiatives to expand our future candidate supply and new workforce solutions. Adjusted EBITDA margin is expected to be approximately 7.5%.
About AMN Healthcare Services
AMN Healthcare Services, Inc. is
healthcare s workforce innovator, providing a broad spectrum of workforce solutions and staffing services to the nation s healthcare facilities. As the innovative workforce solutions partner, AMN s managed services programs,
recruitment process outsourcing and consulting services enable providers to successfully reduce complexity, increase efficiency and improve patient outcomes within the rapidly evolving healthcare environment. AMN achieves unparalleled access to the
largest network of clinically advanced healthcare professionals through its innovative recruitment strategies and breadth of career opportunities offered to clinicians. Clients include acute-care hospitals, government facilities, community health
centers and clinics, physician practice groups and many other healthcare settings. For more information, visit http://www.amnhealthcare.com.
Conference Call on August 2, 2012
AMN Healthcare Services, Inc. s second quarter 2012 conference call will be held on Thursday, August 2, 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) 230-1059 in the U.S. or (612) 234-9960 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 August 2, 2012, and can be accessed until 11:59 p.m. Eastern Time on August 23, 2012, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 253768.
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, or may be calculated differently than other similarly title captioned non-GAAP measures, reported by other companies. A reconciliation of non-GAAP measures identified in this release
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://www.amnhealthcare.com/investors.
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 2012
third quarter revenue, revenue growth, gross margin, SG&A, 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, 2011 and its other periodic reports as well as its current and other reports filed 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.
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(dollars in thousands, except per share amounts)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Revenue | $ | 235,786 | $ | 220,602 | $ | 226,412 | $ | 462,198 | $ | 436,407 | ||||||||||
| Cost of revenue | 168,813 | 160,429 | 163,198 | 332,011 | 313,534 | |||||||||||||||
| Gross profit | 66,973 | 60,173 | 63,214 | 130,187 | 122,873 | |||||||||||||||
| 28.4 | % | 27.3 | % | 27.9 | % | 28.2 | % | 28.2 | % | |||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 50,304 | 48,188 | 47,176 | 97,480 | 96,908 | |||||||||||||||
| 21.3 | % | 21.8 | % | 20.8 | % | 21.1 | % | 22.2 | % | |||||||||||
| Depreciation and amortization | 3,552 | 4,086 | 3,695 | 7,247 | 8,558 | |||||||||||||||
| Total operating expenses | 53,856 | 52,274 | 50,871 | 104,727 | 105,466 | |||||||||||||||
| Income from operations | 13,117 | 7,899 | 12,343 | 25,460 | 17,407 | |||||||||||||||
| Interest expense, net (including loss on debt extinguishment of $9,815 for the three and six months ended June 30, 2012) | 13,590 | 5,585 | 5,533 | 19,123 | 11,090 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | (473 | ) | 2,314 | 6,810 | 6,337 | 6,317 | ||||||||||||||
| Income tax (benefit) expense | (392 | ) | 1,702 | 3,357 | 2,965 | 3,989 | ||||||||||||||
| Income (loss) from continuing operations | (81 | ) | 612 | 3,453 | 3,372 | 2,328 | ||||||||||||||
| Income from discontinued operations, net of tax | 0 | 201 | 823 | 823 | 741 | |||||||||||||||
| Net income (loss) | $ | (81 | ) | $ | 813 | $ | 4,276 | $ | 4,195 | $ | 3,069 | |||||||||
| Basic income (loss) per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.00 | $ | 0.02 | $ | 0.07 | $ | 0.07 | $ | 0.05 | ||||||||||
| Discontinued operations | 0.00 | 0.00 | 0.02 | 0.02 | 0.02 | |||||||||||||||
| Net income (loss) | $ | 0.00 | $ | 0.02 | $ | 0.09 | $ | 0.09 | $ | 0.07 | ||||||||||
| Diluted income (loss) per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.00 | $ | 0.01 | $ | 0.07 | $ | 0.07 | $ | 0.05 | ||||||||||
| Discontinued operations | 0.00 | 0.01 | 0.02 | 0.02 | 0.02 | |||||||||||||||
| Net income (loss) | $ | 0.00 | $ | 0.02 | $ | 0.09 | $ | 0.09 | $ | 0.07 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 40,810 | 39,629 | 40,576 | 40,695 | 39,436 | |||||||||||||||
| Diluted | 40,810 | 45,981 | 46,164 | 46,317 | 45,912 | |||||||||||||||
| Other comprehensive income (loss) | 33 | (1 | ) | (43 | ) | (10 | ) | (2 | ) | |||||||||||
| Comprehensive income (loss) | $ | (48 | ) | $ | 812 | $ | 4,233 | $ | 4,185 | $ | 3,067 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share and operating data)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 158,615 | $ | 140,029 | $ | 153,886 | $ | 312,501 | $ | 274,803 | ||||||||||
| Locum tenens staffing | 67,592 | 71,098 | 63,509 | 131,101 | 141,287 | |||||||||||||||
| Physician permanent placement services | 9,579 | 9,475 | 9,017 | 18,596 | 20,317 | |||||||||||||||
| $ | 235,786 | $ | 220,602 | $ | 226,412 | $ | 462,198 | $ | 436,407 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment operating income(1) | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 18,444 | $ | 14,420 | $ | 17,077 | $ | 35,521 | $ | 29,539 | ||||||||||
| Locum tenens staffing | 6,091 | 5,465 | 4,416 | 10,507 | 11,476 | |||||||||||||||
| Physician permanent placement services | 1,890 | 2,511 | 1,706 | 3,596 | 6,328 | |||||||||||||||
| 26,425 | 22,396 | 23,199 | 49,624 | 47,343 | ||||||||||||||||
| Unallocated corporate overhead | 8,179 | 7,506 | 5,732 | 13,911 | 15,200 | |||||||||||||||
| Adjusted EBITDA(2) | 18,246 | 14,890 | 17,467 | 35,713 | 32,143 | |||||||||||||||
| Adjusted EBITDA margin(3) | 7.7 | % | 6.7 | % | 7.7 | % | 7.7 | % | 7.4 | % | ||||||||||
| Depreciation and amortization | 3,552 | 4,086 | 3,695 | 7,247 | 8,558 | |||||||||||||||
| Stock-based compensation | 1,577 | 1,714 | 1,429 | 3,006 | 3,696 | |||||||||||||||
| Acquisition related costs | 0 | 1,191 | 0 | 0 | 2,482 | |||||||||||||||
| Interest expense, net | 13,590 | 5,585 | 5,533 | 19,123 | 11,090 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | (473 | ) | 2,314 | 6,810 | 6,337 | 6,317 | ||||||||||||||
| Income tax (benefit) expense | (392 | ) | 1,702 | 3,357 | 2,965 | 3,989 | ||||||||||||||
| Net income (loss) from continuing operations | (81 | ) | 612 | 3,453 | 3,372 | 2,328 | ||||||||||||||
| Net income from discontinued operations | 0 | 201 | 823 | 823 | 741 | |||||||||||||||
| Net income (loss) | $ | (81 | ) | $ | 813 | $ | 4,276 | $ | 4,195 | $ | 3,069 | |||||||||
| GAAP based diluted net income (loss) per share (EPS) from continuing operations | $ | 0.00 | $ | 0.01 | $ | 0.07 | $ | 0.05 | ||||||||||||
| Adjustments: | ||||||||||||||||||||
| Debt refinancing | 0.11 | 0.00 | 0.13 | 0.00 | ||||||||||||||||
| Acquisition related costs | 0.00 | 0.02 | 0.00 | 0.03 | ||||||||||||||||
| Adjusted diluted EPS from continuing operations(4) | $ | 0.11 | $ | 0.03 | $ | 0.20 | $ | 0.08 |
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied healthcare staffing | 26.7 | % | 25.8 | % | 26.4 | % | 26.6 | % | 26.6 | % | ||||||||||
| Locum tenens staffing | 27.9 | % | 25.5 | % | 27.1 | % | 27.5 | % | 25.8 | % | ||||||||||
| Physician permanent placement services | 59.9 | % | 62.4 | % | 59.5 | % | 59.7 | % | 64.7 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||
| Average travelers on assignment(5) | 5,592 | 5,161 | 5,443 | 5,518 | 5,108 | |||||||||||||||
| Revenue per traveler per day(6) | $ | 311.70 | $ | 298.16 | $ | 310.68 | $ | 311.20 | $ | 297.23 | ||||||||||
| Gross profit per traveler per day(6) | $ | 83.32 | $ | 76.95 | $ | 81.99 | $ | 82.66 | $ | 79.19 | ||||||||||
| Locum tenens staffing | ||||||||||||||||||||
| Days filled(7) | 46,752 | 50,833 | 45,990 | 92,742 | 100,294 | |||||||||||||||
| Revenue per day filled(7) | $ | 1,445.76 | $ | 1,398.66 | $ | 1,380.93 | $ | 1,413.61 | $ | 1,408.73 | ||||||||||
| Gross profit per day filled(7) | $ | 402.84 | $ | 356.38 | $ | 374.92 | $ | 388.99 | $ | 364.10 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| June 30, 2012 | March 31, 2012 | December 31, 2011 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 15,498 | $ | 4,901 | $ | 3,962 | ||||||
| Accounts receivable, net | 136,535 | 141,615 | 146,654 | |||||||||
| Accounts receivable, subcontractor | 21,996 | 23,340 | 22,497 | |||||||||
| Prepaid expenses | 7,301 | 8,298 | 5,691 | |||||||||
| Income taxes receivable | 3,105 | 3,606 | 3,372 | |||||||||
| Deferred income taxes, net | 14,833 | 13,213 | 19,335 | |||||||||
| Other current assets | 5,855 | 6,878 | 3,652 | |||||||||
| Assets held for sale | 0 | 0 | 7,310 | |||||||||
| Total current assets | 205,123 | 201,851 | 212,473 | |||||||||
| Restricted cash, cash equivalents and investments | 18,335 | 18,241 | 18,244 | |||||||||
| Fixed assets, net | 15,248 | 15,918 | 16,863 | |||||||||
| Deposits and other assets | 18,872 | 20,638 | 19,329 | |||||||||
| Deferred income taxes, net | 2,166 | 2,166 | 1,823 | |||||||||
| Goodwill | 123,324 | 123,324 | 123,324 | |||||||||
| Intangible assets, net | 140,137 | 141,825 | 143,575 | |||||||||
| Total assets | $ | 523,205 | $ | 523,963 | $ | 535,631 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Bank overdraft | $ | 330 | $ | 1,225 | $ | 3,515 | ||||||
| Accounts payable and accrued expenses | 50,711 | 51,417 | 49,809 | |||||||||
| Accrued compensation and benefits | 43,023 | 43,717 | 43,649 | |||||||||
| Revolving credit facility | 0 | 0 | 3,000 | |||||||||
| Current portion of notes payable | 20,000 | 2,000 | 28,125 | |||||||||
| Deferred revenue | 1,782 | 1,635 | 2,155 | |||||||||
| Other current liabilities | 5,181 | 5,539 | 8,313 | |||||||||
| Liabilities related to assets held for sale | 0 | 0 | 1,486 | |||||||||
| Total current liabilities | 121,027 | 105,533 | 140,052 | |||||||||
| Notes payable, less current portion and discount | 173,721 | 190,994 | 174,198 | |||||||||
| Other long-term liabilities | 62,567 | 62,775 | 61,646 | |||||||||
| Total liabilities | 357,315 | 359,302 | 375,896 | |||||||||
| Preferred stock | 24,054 | 24,076 | 24,076 | |||||||||
| Stockholders equity | 141,836 | 140,585 | 135,659 | |||||||||
| Total liabilities and stockholders equity | $ | 523,205 | $ | 523,963 | $ | 535,631 |
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Net cash provided by operating activities | $ | 20,997 | $ | 2,354 | $ | 9,553 | $ | 30,550 | $ | 7,918 | ||||||||||
| Net cash provided by (used in) investing activities | (1,031 | ) | 1,955 | 7,352 | 6,321 | 268 | ||||||||||||||
| Net cash used in financing activities | (9,402 | ) | (318 | ) | (15,923 | ) | (25,325 | ) | (2,143 | ) | ||||||||||
| Effect of exchange rates on cash | 33 | (1 | ) | (43 | ) | (10 | ) | (2 | ) | |||||||||||
| Net increase in cash and cash equivalents | 10,597 | 3,990 | 939 | 11,536 | 6,041 | |||||||||||||||
| Cash and cash equivalents at beginning of period | 4,901 | 3,934 | 3,962 | 3,962 | 1,883 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 15,498 | $ | 7,924 | $ | 4,901 | $ | 15,498 | $ | 7,924 |