Full Press Release Details
Vice President, Investor Relations
AMN HEALTHCARE ANNOUNCES SECOND
QUARTER 2015 RESULTS
Quarterly revenue increases to record high $350 million; reports EPS of $0.32
SAN DIEGO (August 4, 2015) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s leader and innovator in workforce solutions and staffing
services, today announced second quarter 2015 financial results that 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 2015 | % Change Q2 2014 | YTD June 30, 2015 | % Change YTD June 30, 2014 | |||||||||||||
| Revenue | $ | 350.1 | 40 | % | $ | 677.7 | 38 | % | ||||||||
| Gross profit | $ | 110.1 | 43 | % | $ | 211.6 | 40 | % | ||||||||
| Net income | $ | 15.9 | 121 | % | $ | 28.1 | 89 | % | ||||||||
| Diluted EPS | $ | 0.32 | 113 | % | $ | 0.58 | 87 | % | ||||||||
| Adjusted diluted EPS* | $ | 0.38 | 81 | % | $ | 0.69 | 73 | % | ||||||||
| Adjusted EBITDA* | $ | 39.4 | 69 | % | $ | 72.7 | 64 | % |
* See Non-GAAP Measures below for a discussion of our use of non-GAAP items and the table entitled
Supplemental Financial and Operating Data for a reconciliation of non-GAAP items.
All business segments are executing very strongly amid continued robust market conditions,
which drove better than anticipated revenue and profitability growth in the second quarter, said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. Our recently acquired Avantas, Onward Healthcare, Locum Leaders and
Medefis companies are also performing very well and the majority of our integration activities have been successfully completed. With the continuing favorable market environment, our outlook remains optimistic as we stay focused on delivering
superior service to our clients and healthcare professionals, improving the efficiency of our operations, and developing or acquiring additional innovative workforce solutions and recruitment strategies.
Second Quarter 2015 Results
the second quarter of 2015, consolidated revenue was $350 million, an increase of 40% from the same quarter last year and 7% sequentially. Second quarter revenue for the Nurse and Allied Healthcare Staffing segment was $240 million, up 45%
(27% excluding acquisitions) from the same quarter last year and 5% sequentially. Locum Tenens Staffing segment revenue in the second quarter was $97 million, an increase of 31% (19% excluding acquisitions) from the same quarter last year and
up 12% sequentially. Second quarter Physician Permanent Placement Services segment revenue was $13 million, an increase of 19% from the same quarter last year and up 8% sequentially.
Second quarter gross margin of 31.4% was higher by 60 basis points than the same quarter last year and higher by 40 basis points sequentially.
The year-over-year gross margin improvement was driven by an increased revenue mix of our higher-margin workforce solutions businesses.
SG&A expenses for the second quarter were $75 million, representing 21.3% of revenue, compared to 22.1% in the same quarter last year and
21.8% in the prior quarter. The year-over-year improvement in SG&A expenses as a percentage of revenue was due primarily to operating leverage and a favorable professional liability actuarial adjustment. The favorable professional liability
adjustment in the second quarter was $3.3 million, compared to a favorable adjustment of $1.6 million in the same quarter last year. On a sequential basis, the lower SG&A percentage was driven by the favorable professional liability actuarial
adjustment, which more than offset the growth in employee expenses to support the revenue growth.
Second quarter net income was $16 million and net income per diluted share was $0.32. Excluding
amortization of intangible assets of $3 million and acquisition and integration costs of $2 million, adjusted net income per diluted share was $0.38. Second quarter adjusted EBITDA was $39.4 million, a year-over-year increase of 69% and sequential
increase of 18%. Second quarter adjusted EBITDA margin of 11.2% represented a 190 basis point increase year-over-year and 100 basis point increase sequentially.
At June 30, 2015, cash and cash equivalents totaled $14 million. Second quarter cash flow from operations was $25 million and capital
expenditures were $8 million. The Company ended the second quarter with total debt outstanding of $226 million, with a leverage ratio of 1.9 to 1.
Business Trends and Outlook
Company expects consolidated third quarter 2015 revenue of $360 to $365 million. Gross margin is expected to be 31.0% to 31.5%. SG&A expenses as a percentage of revenue are expected to be approximately 22.0%, which includes integration-related
expenses of approximately $0.7 million. Adjusted EBITDA margin is expected to be approximately 10.0% to 10.5%.
About AMN Healthcare
AMN Healthcare is the leader and 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, recruitment process outsourcing and consulting services 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 most comprehensive network of quality healthcare professionals through its innovative recruitment
strategies and breadth of career opportunities. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, 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 August 4, 2015
AMN Healthcare Services, Inc. s second quarter 2015 conference call will be held on Tuesday, August 4, 2015, 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) 288-8974 in the U.S. or (612) 332-0335 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 August 4, 2015, and can be accessed until 11:59 p.m. Eastern Time on August 18, 2015, by calling (800) 475-6701 in the U.S. or
(320) 365-3844 internationally, with access code 363829.
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 diluted 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, adjusted EBITDA margin and adjusted diluted EPS serve as industry-wide financial measures. The Company 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 the 2015 outlook and 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, 2014 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, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
| Revenue | $ | 350,144 | $ | 250,913 | $ | 327,510 | $ | 677,654 | $ | 491,794 | ||||||||||
| Cost of revenue | 240,026 | 173,754 | 226,078 | 466,104 | 340,679 | |||||||||||||||
| Gross profit | 110,118 | 77,159 | 101,432 | 211,550 | 151,115 | |||||||||||||||
| 31.4 | % | 30.8 | % | 31.0 | % | 31.2 | % | 30.7 | % | |||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 74,727 | 55,567 | 71,552 | 146,279 | 110,234 | |||||||||||||||
| 21.3 | % | 22.1 | % | 21.8 | % | 21.6 | % | 22.4 | % | |||||||||||
| Depreciation and amortization | 5,232 | 4,010 | 5,095 | 10,327 | 7,830 | |||||||||||||||
| Total operating expenses | 79,959 | 59,577 | 76,647 | 156,606 | 118,064 | |||||||||||||||
| Income from operations | 30,159 | 17,582 | 24,785 | 54,944 | 33,051 | |||||||||||||||
| Interest expense, net, and other | 1,977 | 4,629 | 1,807 | 3,784 | 6,475 | |||||||||||||||
| Income before income taxes | 28,182 | 12,953 | 22,978 | 51,160 | 26,576 | |||||||||||||||
| Income tax expense | 12,312 | 5,760 | 10,769 | 23,081 | 11,753 | |||||||||||||||
| Net income | $ | 15,870 | $ | 7,193 | $ | 12,209 | $ | 28,079 | $ | 14,823 | ||||||||||
| Other comprehensive income (loss): | ||||||||||||||||||||
| Foreign currency translation | (80 | ) | (37 | ) | 68 | (12 | ) | (46 | ) | |||||||||||
| Unrealized gain on cash flow hedge, net of income taxes | 36 | 0 | 0 | 36 | 0 | |||||||||||||||
| Other comprehensive income (loss) | (44 | ) | (37 | ) | 68 | 24 | (46 | ) | ||||||||||||
| Comprehensive income | $ | 15,826 | $ | 7,156 | $ | 12,277 | $ | 28,103 | $ | 14,777 | ||||||||||
| Net income per common share: | ||||||||||||||||||||
| Basic | $ | 0.33 | $ | 0.15 | $ | 0.26 | $ | 0.59 | $ | 0.32 | ||||||||||
| Diluted | $ | 0.32 | $ | 0.15 | $ | 0.25 | $ | 0.58 | $ | 0.31 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 47,573 | 46,479 | 47,146 | 47,361 | 46,416 | |||||||||||||||
| Diluted | 48,863 | 47,836 | 48,364 | 48,615 | 47,876 |
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, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 240,016 | $ | 165,894 | $ | 229,046 | $ | 469,062 | $ | 329,344 | ||||||||||
| Locum tenens staffing | 97,388 | 74,309 | 86,692 | 184,080 | 141,180 | |||||||||||||||
| Physician permanent placement services | 12,740 | 10,710 | 11,772 | 24,512 | 21,270 | |||||||||||||||
| $ | 350,144 | $ | 250,913 | $ | 327,510 | $ | 677,654 | $ | 491,794 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment operating income (1) | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 35,395 | $ | 22,032 | $ | 31,901 | $ | 67,296 | $ | 42,004 | ||||||||||
| Locum tenens staffing | 11,711 | 7,818 | 9,110 | 20,821 | 14,691 | |||||||||||||||
| Physician permanent placement services | 3,277 | 2,187 | 3,271 | 6,548 | 4,318 | |||||||||||||||
| 50,383 | 32,037 | 44,282 | 94,665 | 61,013 | ||||||||||||||||
| Unallocated corporate overhead | 11,006 | 8,694 | 10,960 | 21,966 | 16,562 | |||||||||||||||
| Adjusted EBITDA (2) | 39,377 | 23,343 | 33,322 | 72,699 | 44,451 | |||||||||||||||
| Adjusted EBITDA margin (3) | 11.2 | % | 9.3 | % | 10.2 | % | 10.7 | % | 9.0 | % | ||||||||||
| Depreciation and amortization | 5,232 | 4,010 | 5,095 | 10,327 | 7,830 | |||||||||||||||
| Share-based compensation | 2,153 | 1,751 | 2,377 | 4,530 | 3,570 | |||||||||||||||
| Acquisition and integration costs | 1,833 | 0 | 1,065 | 2,898 | 0 | |||||||||||||||
| Interest expense, net, and other | 1,977 | 4,629 | 1,807 | 3,784 | 6,475 | |||||||||||||||
| Income before income taxes | 28,182 | 12,953 | 22,978 | 51,160 | 26,576 | |||||||||||||||
| Income tax expense | 12,312 | 5,760 | 10,769 | 23,081 | 11,753 | |||||||||||||||
| Net income | $ | 15,870 | $ | 7,193 | $ | 12,209 | $ | 28,079 | $ | 14,823 | ||||||||||
| GAAP diluted net income per share (EPS) | $ | 0.32 | $ | 0.15 | $ | 0.25 | $ | 0.58 | $ | 0.31 | ||||||||||
| Adjustments (net of tax): | ||||||||||||||||||||
| Debt extinguishment costs | 0.00 | 0.04 | 0.00 | 0.00 | 0.04 | |||||||||||||||
| Amortization of intangible assets | 0.04 | 0.02 | 0.04 | 0.07 | 0.05 | |||||||||||||||
| Acquisition and integration costs | 0.02 | 0.00 | 0.01 | 0.04 | 0.00 | |||||||||||||||
| Adjusted diluted EPS (4) | $ | 0.38 | $ | 0.21 | $ | 0.30 | $ | 0.69 | $ | 0.40 |
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied healthcare staffing | 30.7 | % | 29.1 | % | 29.8 | % | 30.2 | % | 29.0 | % | ||||||||||
| Locum tenens staffing | 29.2 | % | 29.8 | % | 29.4 | % | 29.3 | % | 29.8 | % | ||||||||||
| Physician permanent placement services | 63.1 | % | 63.5 | % | 65.7 | % | 64.4 | % | 63.3 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||
| Average healthcare professionals on assignment (5) | 7,227 | 5,565 | 7,223 | 7,225 | 5,599 | |||||||||||||||
| Locum tenens staffing | ||||||||||||||||||||
| Days filled (6) | 59,844 | 49,049 | 54,260 | 114,104 | 93,798 |
| As of June 30, | As of March 31, | |||||||||||
| 2015 | 2014 | 2015 | ||||||||||
| Leverage ratio (7) | 1.9 | 1.9 | 2.2 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| June 30, 2015 | March 31, 2015 | December 31, 2014 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 14,474 | $ | 11,633 | $ | 13,073 | ||||||
| Accounts receivable, net | 229,999 | 221,001 | 186,274 | |||||||||
| Accounts receivable, subcontractor | 36,909 | 34,191 | 28,443 | |||||||||
| Deferred income taxes, net | 27,362 | 26,466 | 27,330 | |||||||||
| Prepaid and other current assets | 34,624 | 29,065 | 27,550 | |||||||||
| Total current assets | 343,368 | 322,356 | 282,670 | |||||||||
| Restricted cash, cash equivalents and investments | 21,698 | 19,772 | 19,567 | |||||||||
| Fixed assets, net | 41,621 | 36,674 | 32,880 | |||||||||
| Other assets | 45,210 | 44,117 | 39,895 | |||||||||
| Goodwill | 197,325 | 197,254 | 154,387 | |||||||||
| Intangible assets, net | 176,930 | 179,877 | 152,517 | |||||||||
| Total assets | $ | 826,152 | $ | 800,050 | $ | 681,916 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued expenses | $ | 101,578 | $ | 92,081 | $ | 78,993 | ||||||
| Accrued compensation and benefits | 76,581 | 72,237 | 67,995 | |||||||||
| Current portion of revolving credit facility | 30,000 | 30,000 | 18,000 | |||||||||
| Current portion of notes payable | 7,500 | 7,500 | 7,500 | |||||||||
| Deferred revenue | 5,505 | 3,137 | 3,177 | |||||||||
| Other current liabilities | 10,466 | 2,662 | 2,630 | |||||||||
| Total current liabilities | 231,630 | 207,617 | 178,295 | |||||||||
| Revolving credit facility | 55,500 | 65,500 | 0 | |||||||||
| Notes payable | 133,125 | 135,000 | 136,875 | |||||||||
| Deferred income taxes, net | 37,221 | 37,198 | 32,491 | |||||||||
| Other long-term liabilities | 80,638 | 83,972 | 77,674 | |||||||||
| Total liabilities | 538,114 | 529,287 | 425,335 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders equity | 288,038 | 270,763 | 256,581 | |||||||||
| Total liabilities and stockholders equity | $ | 826,152 | $ | 800,050 | $ | 681,916 |
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, | ||||||||||||||||||
| 2015 | 2014 (8) | 2015 | 2015 | 2014 (8) | ||||||||||||||||
| Net cash provided by operating activities | $ | 25,000 | $ | 6,177 | $ | 8,687 | $ | 33,687 | $ | 7,041 | ||||||||||
| Net cash used in investing activities | (9,516 | ) | (1,100 | ) | (85,350 | ) | (94,866 | ) | (5,809 | ) | ||||||||||
| Net cash provided by (used in) financing activities | (12,563 | ) | (8,808 | ) | 75,155 | 62,592 | (11,265 | ) | ||||||||||||
| Effect of exchange rates on cash | (80 | ) | (37 | ) | 68 | (12 | ) | (46 | ) | |||||||||||
| Net increase (decrease) in cash and cash equivalents | 2,841 | (3,768 | ) | (1,440 | ) | 1,401 | (10,079 | ) | ||||||||||||
| Cash and cash equivalents at beginning of period | 11,633 | 9,269 | 13,073 | 13,073 | 15,580 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 14,474 | $ | 5,501 | $ | 11,633 | $ | 14,474 | $ | 5,501 |