Full Press Release Details
| Contact: | ||||
| Amy C. Chang | ||||
| Vice President, Investor Relations | ||||
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES SECOND QUARTER 2014 RESULTS
Quarterly revenue of $251 million above the high end of guidance, adjusted EPS of $0.19
SAN DIEGO (July 31, 2014) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s innovator in workforce solutions and staffing services,
today announced second quarter 2014 financial results exceeded the Company s guidance for revenue and adjusted EBITDA. Second quarter financial highlights are as follows:
Dollars in millions, except per share amounts.
| Q2 2014 | % Change Q2 2013 | YTD June 30, 2014 | % Change YTD June 30, 2013 | |||||||||
| Revenue | $ | 250.9 | (1%) | $ | 491.8 | (3%) | ||||||
| Gross profit | $ | 77.2 | 4% | $ | 151.1 | 3% | ||||||
| Net income | $ | 7.2 | (14%) | $ | 14.8 | (7%) | ||||||
| Diluted EPS | $ | 0.15 | (17%) | $ | 0.31 | (6%) | ||||||
| Adjusted Diluted EPS* | $ | 0.19 | 6% | $ | 0.35 | 3% | ||||||
| Adjusted EBITDA* | $ | 23.3 | 9% | $ | 44.5 | 5% |
Market trends strengthened across all of our segments as we progressed through the second quarter, contributing to a stronger than
expected performance and a brighter outlook for the remainder of the year. The improved market dynamics coupled with the solid execution of our team delivered sequential increases in revenue, gross margin, adjusted EBITDA margin, and adjusted EPS.
It is clear that our leadership position in providing MSP, VMS, and other workforce solutions continues to enable AMN to deliver differentiated value to our clients, said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare.
We also continue to make progress in our long-term strategic initiatives, such as expansion of our workforce solution offerings and investments in our recruitment and infrastructure technologies, to deliver a best-in-class, differentiated
client and clinician experience.
Second Quarter 2014 Results
For the second quarter of 2014 consolidated revenue was $251 million, a decrease of 1% from the same quarter last year and an increase of 4%
sequentially. Second quarter revenue for the Nurse and Allied Healthcare Staffing segment was $166 million, down 2% from the same quarter last year and up 1% sequentially. Locum Tenens Staffing segment revenue in the second quarter was $74 million,
an increase of 2% from the same quarter last year and 11% sequentially. Second quarter Physician Permanent Placement Services segment revenue was $11 million, a decrease of 3% from the same quarter last year and an increase of 1% sequentially.
Second quarter gross margin of 30.8% was 150 basis points higher than the same quarter last year and 10 basis points higher sequentially. The
year-over-year increase was due to gross margin improvement across all business segments, as well as the addition of the higher-margin ShiftWise business.
SG&A expenses for the second quarter were $56 million, representing 22.1% of revenue, compared to $55 million in both the same quarter
last year and the prior quarter. The year-over-year increase in SG&A expenses was due primarily to the additional SG&A expenses from the ShiftWise business.
Second quarter net income was $7 million and net income per diluted share was $0.15. Excluding
non-cash charges to interest expense associated with execution of a new credit agreement, adjusted net income per diluted share was $0.19. Second quarter adjusted EBITDA was $23 million, compared to $21 million in both the same quarter last year and
the prior quarter. Adjusted EBITDA margin of 9.3% reflected a 90 basis point increase over prior year and was driven by the improvement in gross margin. The 50 basis point sequential improvement was due mainly to a favorable professional liability
At June 30, 2014, cash and cash equivalents totaled $6 million. Second quarter cash flow provided by operations was $6.2
million and capital expenditures were $4 million. The Company ended the quarter with total debt outstanding of $155 million, with a leverage ratio of 1.9 to 1.
Business Trends and Outlook
Company expects consolidated third quarter 2014 revenue of $254 million to $258 million, with sequential growth expected in all business segments. Gross margin is expected to be approximately 30.5%. SG&A expenses as a percentage of revenue are
expected to be between 22.5% and 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 July 31, 2014
AMN Healthcare Services, Inc. s second quarter 2014 conference call will be held on Thursday, July 31, 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) 230-1059 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 July 31, 2014, and can be accessed until 11:59 p.m. Eastern Time on August 14, 2014, by calling (800) 475-6701 in the U.S. or
(320) 365-3844 internationally, with access code 330576.
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, (2) adjusted EBITDA margin, and (3) adjusted EPS. 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
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 third 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 | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||
| Revenue | $ | 250,913 | $ | 253,943 | $ | 240,881 | $ | 491,794 | $ | 506,063 | ||||||||||
| Cost of revenue | 173,754 | 179,530 | 166,925 | 340,679 | 358,643 | |||||||||||||||
| Gross profit | 77,159 | 74,413 | 73,956 | 151,115 | 147,420 | |||||||||||||||
| 30.8 | % | 29.3 | % | 30.7 | % | 30.7 | % | 29.1 | % | |||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 55,567 | 54,551 | 54,667 | 110,234 | 108,158 | |||||||||||||||
| 22.1 | % | 21.5 | % | 22.7 | % | 22.4 | % | 21.4 | % | |||||||||||
| Depreciation and amortization | 4,010 | 3,240 | 3,820 | 7,830 | 6,530 | |||||||||||||||
| Total operating expenses | 59,577 | 57,791 | 58,487 | 118,064 | 114,688 | |||||||||||||||
| Income from operations | 17,582 | 16,622 | 15,469 | 33,051 | 32,732 | |||||||||||||||
| Interest expense, net and other | 4,629 | 3,130 | 1,846 | 6,475 | 5,989 | |||||||||||||||
| Income before income taxes | 12,953 | 13,492 | 13,623 | 26,576 | 26,743 | |||||||||||||||
| Income tax expense | 5,760 | 5,093 | 5,993 | 11,753 | 10,781 | |||||||||||||||
| Net income | $ | 7,193 | $ | 8,399 | $ | 7,630 | $ | 14,823 | $ | 15,962 | ||||||||||
| Other comprehensive income (loss) | (37 | ) | (28 | ) | (9 | ) | (46 | ) | 65 | |||||||||||
| Comprehensive income | $ | 7,156 | $ | 8,371 | $ | 7,621 | $ | 14,777 | $ | 16,027 | ||||||||||
| Net income per common share: | ||||||||||||||||||||
| Basic | $ | 0.15 | $ | 0.18 | $ | 0.16 | $ | 0.32 | $ | 0.35 | ||||||||||
| Diluted | $ | 0.15 | $ | 0.18 | $ | 0.16 | $ | 0.31 | $ | 0.33 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 46,479 | 46,039 | 46,354 | 46,416 | 45,927 | |||||||||||||||
| Diluted | 47,836 | 47,837 | 47,917 | 47,876 | 47,759 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 165,894 | $ | 170,138 | $ | 163,450 | $ | 329,344 | $ | 346,903 | ||||||||||
| Locum tenens staffing | 74,309 | 72,708 | 66,871 | 141,180 | 138,164 | |||||||||||||||
| Physician permanent placement services | 10,710 | 11,097 | 10,560 | 21,270 | 20,996 | |||||||||||||||
| $ | 250,913 | $ | 253,943 | $ | 240,881 | $ | 491,794 | $ | 506,063 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment operating income(1) | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 22,032 | $ | 20,128 | $ | 19,972 | $ | 42,004 | $ | 42,602 | ||||||||||
| Locum tenens staffing | 7,818 | 4,908 | 6,873 | 14,691 | 9,800 | |||||||||||||||
| Physician permanent placement services | 2,187 | 2,289 | 2,131 | 4,318 | 4,530 | |||||||||||||||
| 32,037 | 27,325 | 28,976 | 61,013 | 56,932 | ||||||||||||||||
| Unallocated corporate overhead | 8,694 | 5,985 | 7,868 | 16,562 | 14,490 | |||||||||||||||
| Adjusted EBITDA(2) | 23,343 | 21,340 | 21,108 | 44,451 | 42,442 | |||||||||||||||
| Adjusted EBITDA margin(3) | 9.3 | % | 8.4 | % | 8.8 | % | 9.0 | % | 8.4 | % | ||||||||||
| Depreciation and amortization | 4,010 | 3,240 | 3,820 | 7,830 | 6,530 | |||||||||||||||
| Share-based compensation | 1,751 | 1,478 | 1,819 | 3,570 | 3,180 | |||||||||||||||
| Interest expense, net and other | 4,629 | 3,130 | 1,846 | 6,475 | 5,989 | |||||||||||||||
| Income before income taxes | 12,953 | 13,492 | 13,623 | 26,576 | 26,743 | |||||||||||||||
| Income tax expense | 5,760 | 5,093 | 5,993 | 11,753 | 10,781 | |||||||||||||||
| Net income | $ | 7,193 | $ | 8,399 | $ | 7,630 | $ | 14,823 | $ | 15,962 | ||||||||||
| GAAP based diluted net income per share (EPS) | $ | 0.15 | $ | 0.18 | $ | 0.16 | $ | 0.31 | $ | 0.33 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Loss on debt extinguishment | 0.04 | 0.00 | 0.00 | 0.04 | 0.01 | |||||||||||||||
| Adjusted diluted EPS (4) | $ | 0.19 | $ | 0.18 | $ | 0.16 | $ | 0.35 | $ | 0.34 |
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied healthcare staffing | 29.1 | % | 27.2 | % | 29.0 | % | 29.0 | % | 27.4 | % | ||||||||||
| Locum tenens staffing | 29.8 | % | 29.0 | % | 29.9 | % | 29.8 | % | 28.5 | % | ||||||||||
| Physician permanent placement services | 63.5 | % | 62.7 | % | 63.0 | % | 63.3 | % | 62.6 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||
| Average clinicians on assignment (5) | 5,565 | 5,924 | 5,633 | 5,599 | 6,070 | |||||||||||||||
| Locum tenens staffing | ||||||||||||||||||||
| Days filled (6) | 49,049 | 50,127 | 44,749 | 93,798 | 95,484 |
| As of June 30 | As of March 31, | |||||||||||
| 2014 | 2013 | 2014 | ||||||||||
| Leverage ratio (7) | 1.9 | 2.1 | 2.0 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| June 30, 2014 | March 31, 2014 (8) | December 31, 2013 (8) | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 5,501 | $ | 9,269 | $ | 15,580 | ||||||
| Accounts receivable, net | 151,505 | 150,840 | 147,477 | |||||||||
| Accounts receivable, subcontractor | 22,512 | 18,680 | 18,271 | |||||||||
| Deferred income taxes, net | 27,983 | 24,867 | 24,938 | |||||||||
| Prepaid and other current assets | 27,662 | 27,616 | 26,631 | |||||||||
| Total current assets | 235,163 | 231,272 | 232,897 | |||||||||
| Restricted cash, cash equivalents and investments | 20,606 | 21,641 | 23,115 | |||||||||
| Fixed assets, net | 27,066 | 24,400 | 21,158 | |||||||||
| Deposits and other assets | 37,502 | 35,922 | 32,279 | |||||||||
| Goodwill | 144,937 | 144,937 | 144,642 | |||||||||
| Intangible assets, net | 146,418 | 148,317 | 150,197 | |||||||||
| Total assets | $ | 611,692 | $ | 606,489 | $ | 604,288 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued expenses | $ | 65,130 | $ | 64,358 | $ | 71,081 | ||||||
| Accrued compensation and benefits | 56,046 | 56,958 | 55,949 | |||||||||
| Revolving credit facility | 6,500 | 10,000 | 10,000 | |||||||||
| Current portion of notes payable | 7,500 | 7,500 | 0 | |||||||||
| Other current liabilities | 4,097 | 5,212 | 6,060 | |||||||||
| Total current liabilities | 139,273 | 144,028 | 143,090 | |||||||||
| Notes payable, less current portion and discount | 140,625 | 141,227 | 148,672 | |||||||||
| Other long-term liabilities | 98,188 | 96,353 | 94,784 | |||||||||
| Total liabilities | 378,086 | 381,608 | 386,546 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders equity | 233,606 | 224,881 | 217,742 | |||||||||
| Total liabilities and stockholders equity | $ | 611,692 | $ | 606,489 | $ | 604,288 |
AMN Healthcare Services, Inc.
Summary Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31 | June 30, | ||||||||||||||||||
| 2014 | 2013 (8) | 2014 | 2014 | 2013 (8) | ||||||||||||||||
| Net cash provided by operating activities | $ | 6,159 | $ | 19,475 | $ | 991 | $ | 7,150 | $ | 17,257 | ||||||||||
| Net cash used in investing activities | (1,100 | ) | (3,396 | ) | (4,709 | ) | (5,809 | ) | (6,032 | ) | ||||||||||
| Net cash used in financing activities | (8,790 | ) | (7,471 | ) | (2,584 | ) | (11,374 | ) | (6,452 | ) | ||||||||||
| Effect of exchange rates on cash | (37 | ) | (28 | ) | (9 | ) | (46 | ) | 65 | |||||||||||
| Net increase (decrease) in cash and cash equivalents | (3,768 | ) | 8,580 | (6,311 | ) | (10,079 | ) | 4,838 | ||||||||||||
| Cash and cash equivalents at beginning of period | 9,269 | 1,939 | 15,580 | 15,580 | 5,681 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 5,501 | $ | 10,519 | $ | 9,269 | $ | 5,501 | $ | 10,519 |