Full Press Release Details
| Contact: | ||||
| Amy C. Chang | ||||
| Vice President, Investor Relations | ||||
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES THIRD QUARTER 2012 RESULTS
Reports quarterly revenue of $244 million, up 7% year-over-year
Diluted EPS from continuing operations of $0.12 vs. $0.02 in prior year
SAN DIEGO (November 1, 2012) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s innovator in workforce solutions and staffing
services, today announced third quarter 2012 financial results which exceeded the Company s guidance for both revenue and adjusted EBITDA. Third quarter financial highlights are as follows:
Dollars in millions, except per share amounts.
| Q3 2012 | % Chg Q3 2011 | % Chg Q2 2012 | YTD Sept 30, 2012 | % Chg Sept 30, 2011 | ||||||||||||||||
| Revenue | $ | 243.9 | 7 | % | 3 | % | $ | 706.1 | 6 | % | ||||||||||
| Gross profit | $ | 69.6 | 9 | % | 4 | % | $ | 199.8 | 7 | % | ||||||||||
| Net income from continuing operations | $ | 5.9 | 483 | % | NM | $ | 9.2 | 177 | % | |||||||||||
| Diluted EPS from continuing operations | $ | 0.12 | 500 | % | NM | $ | 0.20 | 186 | % | |||||||||||
| Adjusted EBITDA* | $ | 18.8 | 17 | % | 3 | % | $ | 54.5 | 13 | % | ||||||||||
| Adjusted EPS from continuing operations* | $ | 0.12 | 200 | % | 9 | % | $ | 0.32 | 167 | % |
Our strong financial results reflect our clients recognition of the differentiated value that our innovative workforce
solutions and staffing services provide. We are very much aligned with our clients mission of improving efficiency while delivering excellent patient care within the rapidly evolving healthcare environment, said Susan R. Salka, President
and Chief Executive Officer of AMN Healthcare.
Our sales and operations team continued to execute well within the
stable demand environment and leverage the benefit of our growing managed services programs business, resulting in third quarter consolidated revenue, gross profit and adjusted EBITDA improvements both year-over-year and sequentially, added
Salka. At the same time, we continue to invest in our workforce solutions, new candidate recruitment initiatives and technology infrastructure to ensure we are ready in the long term to capitalize on the demand growth anticipated from the
significant clinical workforce shortages due to healthcare reform and the aging population.
Third Quarter 2012 Results
For the third quarter of 2012, the Company generated consolidated revenue of $244 million, an increase of 7% from the
same quarter last year and 3% sequentially. Third quarter revenue for the Nurse and Allied Healthcare Staffing segment was $166 million, up 13% from the same quarter last year and 5% sequentially. The Locum Tenens Staffing segment generated revenue
in the third quarter of $68 million, a decrease of 6% from the same quarter last year and flat sequentially. Third quarter Physician Permanent Placement Services segment revenue was $10 million, an increase of 9% from the same quarter last year and
Gross margin in the third quarter of 28.5% was higher by 70 basis points than the same quarter last year and
10 basis points compared to the previous quarter. The increase in gross margin was due primarily to a 240 basis point and 50 basis point improvement in the Locum Tenens Staffing segment over prior year and prior quarter, respectively.
SG&A expenses for the third quarter of 2012 were $52.4 million, representing 21.5% of
revenue, compared to 21.6% of revenue in the same quarter last year and 21.3% of revenue in the prior quarter. The improvement from the prior year was due primarily to improved SG&A leverage offset by increased spending in support of our revenue
growth, and candidate recruitment and workforce solutions strategic initiatives.
Third quarter 2012 GAAP net income per
diluted common share from continuing operations was $0.12, which compares to $0.02 in the same quarter last year and $0.00 in the prior quarter.
As of September 30, 2012, cash and cash equivalents totaled $4 million and total debt outstanding, net of discount, was $170 million. Third quarter 2012 cash flow from operations was $12 million and
capital expenditures were $2 million. The Company made $24 million of voluntary debt prepayments during the third quarter and ended the quarter with a debt to LTM adjusted EBITDA leverage ratio of 2.6 to 1.
Business Trends and Outlook
The Company expects fourth quarter consolidated revenue to be between $240 million and $244 million, representing year-over-year revenue growth of 8% to 10%. Gross margin is expected to be approximately
28.0% to 28.5%. SG&A expenses as a percentage of revenue are expected to be approximately 21.5%, including a total of approximately $1 million of expenses related to strategic initiatives to expand our future candidate supply and workforce
solutions position. 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. AMN s workforce solutions - including 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 provides unparalleled access to the largest network of clinicians and
physicians through its innovative recruitment strategies and breadth of career opportunities offered. 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 November 1, 2012
AMN Healthcare Services, Inc. s third quarter 2012 conference call will be held on Thursday, November 1, 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) 230-1085 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 also be
available at 7:30 p.m. Eastern Time on November 1, 2012, and can be accessed until 11:59 p.m. Eastern Time on November 15, 2012, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 266010.
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 consolidated financial
statements presented in accordance with GAAP. These non-GAAP financial measures include (1) segment operating income, (2) adjusted EBITDA, (3) adjusted EBITDA margin, and (4) adjusted EPS from continuing operations. 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 segment operating income, adjusted EBITDA and adjusted EBITDA margin serve as industry-wide financial measures, and it uses segment operating income and 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://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 fourth 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)
(in thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Revenue | $ | 243,912 | $ | 229,006 | $ | 235,786 | $ | 706,110 | $ | 665,413 | ||||||||||
| Cost of revenue | 174,329 | 165,345 | 168,813 | 506,340 | 478,879 | |||||||||||||||
| Gross profit | 69,583 | 63,661 | 66,973 | 199,770 | 186,534 | |||||||||||||||
| 28.5 | % | 27.8 | % | 28.4 | % | 28.3 | % | 28.0 | % | |||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 52,375 | 49,477 | 50,304 | 149,855 | 146,385 | |||||||||||||||
| 21.5 | % | 21.6 | % | 21.3 | % | 21.2 | % | 22.0 | % | |||||||||||
| Depreciation and amortization | 3,435 | 3,921 | 3,552 | 10,682 | 12,479 | |||||||||||||||
| Total operating expenses | 55,810 | 53,398 | 53,856 | 160,537 | 158,864 | |||||||||||||||
| Income from operations | 13,773 | 10,263 | 13,117 | 39,233 | 27,670 | |||||||||||||||
| Interest expense, net (including loss on debt extinguishment of $9,815 for the nine months ended September 30, 2012) | 3,688 | 7,017 | 13,590 | 22,811 | 18,107 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | 10,085 | 3,246 | (473 | ) | 16,422 | 9,563 | ||||||||||||||
| Income tax (benefit) expense | 4,227 | 2,242 | (392 | ) | 7,192 | 6,231 | ||||||||||||||
| Income (loss) from continuing operations | 5,858 | 1,004 | (81 | ) | 9,230 | 3,332 | ||||||||||||||
| Income (loss) from discontinued operations, net of tax | 0 | (27,903 | ) | 0 | 823 | (27,162 | ) | |||||||||||||
| Net income (loss) | $ | 5,858 | $ | (26,899 | ) | $ | (81 | ) | $ | 10,053 | $ | (23,830 | ) | |||||||
| Basic income (loss) per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.13 | $ | 0.02 | $ | 0.00 | $ | 0.20 | $ | 0.07 | ||||||||||
| Discontinued operations | 0.00 | (0.69 | ) | 0.00 | 0.02 | (0.68 | ) | |||||||||||||
| Net income (loss) | $ | 0.13 | $ | (0.67 | ) | $ | 0.00 | $ | 0.22 | $ | (0.61 | ) | ||||||||
| Diluted income (loss) per common share from: | ||||||||||||||||||||
| Continuing operations | $ | 0.12 | $ | 0.02 | $ | 0.00 | $ | 0.20 | $ | 0.07 | ||||||||||
| Discontinued operations | 0.00 | (0.61 | ) | 0.00 | 0.02 | (0.59 | ) | |||||||||||||
| Net income (loss) | $ | 0.12 | $ | (0.59 | ) | $ | 0.00 | $ | 0.22 | $ | (0.52 | ) | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 40,850 | 40,327 | 40,810 | 40,747 | 39,736 | |||||||||||||||
| Diluted | 46,897 | 45,950 | 40,810 | 46,512 | 45,924 | |||||||||||||||
| Other comprehensive income (loss) | (55 | ) | 33 | 33 | (65 | ) | 30 | |||||||||||||
| Comprehensive income (loss) | $ | 5,803 | $ | (26,866 | ) | $ | (48 | ) | $ | 9,988 | $ | (23,800 | ) |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share and operating data)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 166,331 | $ | 147,738 | $ | 158,615 | $ | 478,832 | $ | 422,541 | ||||||||||
| Locum tenens staffing | 67,591 | 72,080 | 67,592 | 198,692 | 213,367 | |||||||||||||||
| Physician permanent placement services | 9,990 | 9,188 | 9,579 | 28,586 | 29,505 | |||||||||||||||
| $ | 243,912 | $ | 229,006 | $ | 235,786 | $ | 706,110 | $ | 665,413 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment operating income(1) | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 18,785 | $ | 15,197 | $ | 18,444 | $ | 54,306 | $ | 44,736 | ||||||||||
| Locum tenens staffing | 6,298 | 6,283 | 6,091 | 16,805 | 17,759 | |||||||||||||||
| Physician permanent placement services | 2,201 | 2,142 | 1,890 | 5,797 | 8,470 | |||||||||||||||
| 27,284 | 23,622 | 26,425 | 76,908 | 70,965 | ||||||||||||||||
| Unallocated corporate overhead | 8,507 | 7,539 | 8,179 | 22,418 | 22,739 | |||||||||||||||
| Adjusted EBITDA(2) | 18,777 | 16,083 | 18,246 | 54,490 | 48,226 | |||||||||||||||
| Adjusted EBITDA margin(3) | 7.7 | % | 7.0 | % | 7.7 | % | 7.7 | % | 7.2 | % | ||||||||||
| Depreciation and amortization | 3,435 | 3,921 | 3,552 | 10,682 | 12,479 | |||||||||||||||
| Stock-based compensation | 1,569 | 1,688 | 1,577 | 4,575 | 5,384 | |||||||||||||||
| Acquisition related costs | 0 | 211 | 0 | 0 | 2,693 | |||||||||||||||
| Interest expense, net | 3,688 | 7,017 | 13,590 | 22,811 | 18,107 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | 10,085 | 3,246 | (473 | ) | 16,422 | 9,563 | ||||||||||||||
| Income tax expense (benefit) | 4,227 | 2,242 | (392 | ) | 7,192 | 6,231 | ||||||||||||||
| Net income (loss) from continuing operations | 5,858 | 1,004 | (81 | ) | 9,230 | 3,332 | ||||||||||||||
| Net income (loss) from discontinued operations | 0 | (27,903 | ) | 0 | 823 | (27,162 | ) | |||||||||||||
| Net income (loss) | $ | 5,858 | $ | (26,899 | ) | $ | (81 | ) | $ | 10,053 | $ | (23,830 | ) | |||||||
| GAAP based diluted net income (loss) per share (EPS) from continuing operations | $ | 0.12 | $ | 0.02 | $ | 0.00 | $ | 0.20 | $ | 0.07 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Debt refinancing | 0.00 | 0.02 | 0.11 | 0.12 | 0.02 | |||||||||||||||
| Acquisition related costs | 0.00 | 0.00 | 0.00 | 0.00 | 0.03 | |||||||||||||||
| Adjusted diluted EPS from continuing operations(4) | $ | 0.12 | $ | 0.04 | $ | 0.11 | $ | 0.32 | $ | 0.12 |
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied healthcare staffing | 26.5 | % | 26.6 | % | 26.7 | % | 26.5 | % | 26.6 | % | ||||||||||
| Locum tenens staffing | 28.4 | % | 26.0 | % | 27.9 | % | 27.8 | % | 25.9 | % | ||||||||||
| Physician permanent placement services | 64.1 | % | 60.5 | % | 59.9 | % | 61.2 | % | 63.4 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||
| Average travelers on assignment (5) | 5,884 | 5,300 | 5,592 | 5,640 | 5,172 | |||||||||||||||
| Revenue per traveler per day(6) | $ | 307.26 | $ | 302.99 | $ | 311.70 | $ | 309.85 | $ | 299.26 | ||||||||||
| Gross profit per traveler per day(6) | $ | 81.27 | $ | 80.70 | $ | 83.32 | $ | 82.18 | $ | 79.72 | ||||||||||
| Locum tenens staffing | ||||||||||||||||||||
| Days filled (7) | 45,868 | 51,292 | 46,752 | 138,610 | 151,585 | |||||||||||||||
| Revenue per day filled(7) | $ | 1,473.60 | $ | 1,405.29 | $ | 1,445.76 | $ | 1,433.46 | $ | 1,407.57 | ||||||||||
| Gross profit per day filled(7) | $ | 418.33 | $ | 365.64 | $ | 402.84 | $ | 398.70 | $ | 364.62 | ||||||||||
| As of September 30 | As of June 30, | |||||||||||||||||||
| 2012 | 2011 | 2012 | ||||||||||||||||||
| Leverage ratio (8) | 2.6 | 3.5 | 3.1 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| September 30, | June 30, | December 31, | ||||||||||
| 2012 | 2012 | 2011 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 3,823 | $ | 15,498 | $ | 3,962 | ||||||
| Accounts receivable, net | 141,881 | 136,535 | 146,654 | |||||||||
| Accounts receivable, subcontractor | 19,686 | 21,996 | 22,497 | |||||||||
| Prepaid expenses | 7,755 | 7,301 | 5,691 | |||||||||
| Income taxes receivable | 2,323 | 3,105 | 3,372 | |||||||||
| Deferred income taxes, net | 11,685 | 14,833 | 19,335 | |||||||||
| Other current assets | 6,497 | 5,855 | 3,652 | |||||||||
| Assets held for sale | 0 | 0 | 7,310 | |||||||||
| Total current assets | 193,650 | 205,123 | 212,473 | |||||||||
| Restricted cash, cash equivalents and investments | 18,917 | 18,335 | 18,244 | |||||||||
| Fixed assets, net | 14,968 | 15,248 | 16,863 | |||||||||
| Deposits and other assets | 19,225 | 18,872 | 19,329 | |||||||||
| Deferred income taxes, net | 2,166 | 2,166 | 1,823 | |||||||||
| Goodwill | 123,324 | 123,324 | 123,324 | |||||||||
| Intangible assets, net | 138,523 | 140,137 | 143,575 | |||||||||
| Total assets | $ | 510,773 | $ | 523,205 | $ | 535,631 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Bank overdraft | $ | 3,531 | $ | 330 | $ | 3,515 | ||||||
| Accounts payable and accrued expenses | 43,564 | 50,711 | 49,809 | |||||||||
| Accrued compensation and benefits | 49,246 | 43,023 | 43,649 | |||||||||
| Revolving credit facility | 0 | 0 | 3,000 | |||||||||
| Current portion of notes payable | 12,000 | 20,000 | 28,125 | |||||||||
| Deferred revenue | 1,507 | 1,782 | 2,155 | |||||||||
| Other current liabilities | 5,698 | 5,181 | 8,313 | |||||||||
| Liabilities related to assets held for sale | 0 | 0 | 1,486 | |||||||||
| Total current liabilities | 115,546 | 121,027 | 140,052 | |||||||||
| Notes payable, less current portion and discount | 157,996 | 173,721 | 174,198 | |||||||||
| Other long-term liabilities | 64,026 | 62,567 | 61,646 | |||||||||
| Total liabilities | 337,568 | 357,315 | 375,896 | |||||||||
| Preferred stock | 22,631 | 24,054 | 24,076 | |||||||||
| Stockholders equity | 150,574 | 141,836 | 135,659 | |||||||||
| Total liabilities and stockholders equity | $ | 510,773 | $ | 523,205 | $ | 535,631 |
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2012 | 2011 | ||||||||||||||||
| Net cash provided by operating activities | $ | 11,512 | $ | 4,881 | $ | 20,997 | $ | 42,062 | $ | 12,799 | ||||||||||
| Net cash provided by (used in) investing activities | (2,103 | ) | (1,107 | ) | (1,031 | ) | 4,218 | (839 | ) | |||||||||||
| Net cash used in financing activities | (21,029 | ) | (7,087 | ) | (9,402 | ) | (46,354 | ) | (9,230 | ) | ||||||||||
| Effect of exchange rates on cash | (55 | ) | 32 | 33 | (65 | ) | 30 | |||||||||||||
| Net increase (decrease) in cash and cash equivalents | (11,675 | ) | (3,281 | ) | 10,597 | (139 | ) | 2,760 | ||||||||||||
| Cash and cash equivalents at beginning of period | 15,498 | 7,924 | 4,901 | 3,962 | 1,883 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 3,823 | $ | 4,643 | $ | 15,498 | $ | 3,823 | $ | 4,643 |