Full Press Release Details
AMN HEALTHCARE ANNOUNCES THIRD QUARTER 2013 RESULTS
Reports quarterly revenue of $257 million, up 5% year-over-year
Diluted EPS of $0.18 vs. $0.12 in prior year
SAN DIEGO (October 31, 2013) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s innovator in workforce solutions and
staffing services, today announced third quarter 2013 financial results, which were at the high end of the Company s guidance for revenue and adjusted EBITDA. Financial highlights are as follows:
Dollars in millions, except per share amounts.
| Q3 2013 | % Change Q3 2012 | YTD September 30, 2013 | % Change YTD September 30, 2012* | |||||
| Revenue | $257.1 | 5% | $763.2 | 8% | ||||
| Gross profit | $75.7 | 9% | $223.1 | 12% | ||||
| Net income | $8.6 | 47% | $24.6 | 166% | ||||
| Diluted EPS | $0.18 | 50% | $0.51 | 155% | ||||
| Adjusted EBITDA** | $21.5 | 15% | $64.0 | 17% |
* Percentage change in this column excludes the impact of the discontinued operations associated with the disposal of the Home
Healthcare Services segment in January 2012.
** 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.
AMN s solid execution in the third quarter resulted in year-over-year revenue
growth across all business segments, as well as improved gross and adjusted EBITDA margins. The Locum Tenens and Physician Permanent Placement businesses have been executing and performing very well in a strong demand environment. In the Nurse and
Allied Staffing businesses, the demand environment has been more moderate due to census, client reaction to reimbursement cuts and uncertainty of the impact of the Affordable Care Act, said Susan R. Salka, President and Chief Executive Officer
of AMN Healthcare. We continue to build our leadership position as the innovator in healthcare workforce solutions through winning new MSP clients, expanding our workforce solutions offerings, and improving our operating model. These
strategies will enable us to maximize our growth opportunity by serving our clients in an even more differentiated and efficient way.
Quarter 2013 Results
For the third quarter of 2013, consolidated revenue was $257 million, an increase of 5% from
the same quarter last year and 1% sequentially. Third quarter revenue for the Nurse and Allied Healthcare Staffing segment was $171 million, up 3% from the same quarter last year and 1% sequentially. Locum Tenens Staffing segment revenue in the
third quarter was $75 million, an increase of 11% from the same quarter last year and 4% sequentially. Third quarter Physician Permanent Placement Services segment revenue was $11 million, an increase of 9% from the same quarter last year and down
Third quarter gross margin of 29.4% was higher by 90 basis points than the same quarter last year and
higher by 10 basis points sequentially. The year-over-year increase was due to gross margin improvement in the Nurse and Allied Healthcare Staffing and Locum Tenens Staffing segments. The sequential increase was due primarily to gross margin
improvement in the Locum Tenens Staffing segment.
SG&A expenses for the third quarter were $56 million, representing
21.6% of revenue, compared to 21.5% of revenue in both the prior year and prior quarter.
Third quarter adjusted EBITDA grew 15% year-over-year to $22 million. Adjusted
EBITDA margin of 8.4% represented a 70 basis point increase over prior year and was driven by the improvement in gross margin. Third quarter net income was $9 million and net income per diluted share was $0.18.
As of September 30, 2013, cash and cash equivalents totaled $32 million and total debt outstanding, net of discount, was
$149 million, with a leverage ratio of 1.9 to 1. Third quarter cash flow from operations was $27 million and capital expenditures were $1 million.
Business Trends and Outlook
The Company expects the typical fourth quarter seasonal decline, combined with the moderate demand environment in Nurse and
Allied Staffing, to result in consolidated revenue of $246 million to $250 million. Gross margin is expected to be relatively steady between 29.0% to 29.5%. SG&A expenses as a percentage of revenue are expected to be approximately 22.0%.
Adjusted EBITDA margin is expected to be approximately 8.0%.
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 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. For more information, visit www.amnhealthcare.com.
Conference Call on October 31, 2013
AMN Healthcare Services, Inc. s third quarter 2013 conference call will be held on Thursday, October 31, 2013, 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 (888) 423-3273 in the U.S. or (612) 332-0923 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 October 31, 2013, and can be accessed until 11:59 p.m. Eastern Time on November 15, 2013, by calling (800) 475-6701 in
the U.S. or (320) 365-3844 internationally, with access code 304355.
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, and (2) adjusted EBITDA margin. 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
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 2013 fourth quarter revenue, gross margin, SG&A expenses and adjusted EBITDA margin, as well as seasonality and the demand environment. 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
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, 2012 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.
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands, except per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||
| Revenue | $ | 257,095 | $ | 243,912 | $ | 253,943 | $ | 763,158 | $ | 706,110 | ||||||||||||||||||||
| Cost of revenue | 181,428 | 174,329 | 179,530 | 540,071 | 506,340 | |||||||||||||||||||||||||
| Gross profit | 75,667 | 69,583 | 74,413 | 223,087 | 199,770 | |||||||||||||||||||||||||
| 29.4% | 28.5% | 29.3% | 29.2% | 28.3% | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||
| Selling, general and administrative | 55,605 | 52,375 | 54,551 | 163,763 | 149,855 | |||||||||||||||||||||||||
| 21.6% | 21.5% | 21.5% | 21.5% | 21.2% | ||||||||||||||||||||||||||
| Depreciation and amortization | 3,317 | 3,435 | 3,240 | 9,847 | 10,682 | |||||||||||||||||||||||||
| Total operating expenses | 58,922 | 55,810 | 57,791 | 173,610 | 160,537 | |||||||||||||||||||||||||
| Income from operations | 16,745 | 13,773 | 16,622 | 49,477 | 39,233 | |||||||||||||||||||||||||
| Interest expense, net | 1,840 | 3,688 | 3,130 | 7,829 | 22,811 | |||||||||||||||||||||||||
| Income from continuing operations before income taxes | 14,905 | 10,085 | 13,492 | 41,648 | 16,422 | |||||||||||||||||||||||||
| Income tax expense | 6,290 | 4,227 | 5,093 | 17,071 | 7,192 | |||||||||||||||||||||||||
| Income from continuing operations | 8,615 | 5,858 | 8,399 | 24,577 | 9,230 | |||||||||||||||||||||||||
| Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 823 | |||||||||||||||||||||||||
| Net income | $ | 8,615 | $ | 5,858 | $ | 8,399 | $ | 24,577 | $ | 10,053 | ||||||||||||||||||||
| Basic income per common share from: | ||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.19 | $ | 0.13 | $ | 0.18 | $ | 0.53 | $ | 0.20 | ||||||||||||||||||||
| Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | |||||||||||||||||||||||||
| Net income | $ | 0.19 | $ | 0.13 | $ | 0.18 | $ | 0.53 | $ | 0.22 | ||||||||||||||||||||
| Diluted income per common share from: | ||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.18 | $ | 0.12 | $ | 0.18 | $ | 0.51 | $ | 0.20 | ||||||||||||||||||||
| Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | |||||||||||||||||||||||||
| Net income | $ | 0.18 | $ | 0.12 | $ | 0.18 | $ | 0.51 | $ | 0.22 | ||||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||
| Basic | 45,986 | 40,850 | 46,039 | 45,947 | 40,747 | |||||||||||||||||||||||||
| Diluted | 47,810 | 46,897 | 47,837 | 47,776 | 46,512 | |||||||||||||||||||||||||
| Other comprehensive loss foreign currency translation | (84 | ) | (55 | ) | (28 | ) | (19 | ) | (65 | ) | ||||||||||||||||||||
| Comprehensive income | $ | 8,531 | $ | 5,803 | $ | 8,371 | $ | 24,558 | $ | 9,988 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except operating data)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 170,955 | $ | 166,331 | $ | 170,138 | $ | 517,858 | $ | 478,832 | ||||||||||||||||||||
| Locum tenens staffing | 75,253 | 67,591 | 72,708 | 213,417 | 198,692 | |||||||||||||||||||||||||
| Physician permanent placement services | 10,887 | 9,990 | 11,097 | 31,883 | 28,586 | |||||||||||||||||||||||||
| $ | 257,095 | $ | 243,912 | $ | 253,943 | $ | 763,158 | $ | 706,110 | |||||||||||||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||||||||||||
| Segment operating income(1) | ||||||||||||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 20,392 | $ | 18,785 | $ | 20,128 | $ | 62,994 | $ | 54,306 | ||||||||||||||||||||
| Locum tenens staffing | 7,547 | 6,298 | 4,908 | 17,347 | 16,805 | |||||||||||||||||||||||||
| Physician permanent placement services | 2,205 | 2,201 | 2,289 | 6,735 | 5,797 | |||||||||||||||||||||||||
| 30,144 | 27,284 | 27,325 | 87,076 | 76,908 | ||||||||||||||||||||||||||
| Unallocated corporate overhead | 8,595 | 8,507 | 5,985 | 23,085 | 22,418 | |||||||||||||||||||||||||
| Adjusted EBITDA(2) | 21,549 | 18,777 | 21,340 | 63,991 | 54,490 | |||||||||||||||||||||||||
| Adjusted EBITDA margin(3) | 8.4% | 7.7% | 8.4% | 8.4% | 7.7% | |||||||||||||||||||||||||
| Depreciation and amortization | 3,317 | 3,435 | 3,240 | 9,847 | 10,682 | |||||||||||||||||||||||||
| Share-based compensation | 1,487 | 1,569 | 1,478 | 4,667 | 4,575 | |||||||||||||||||||||||||
| Interest expense, net | 1,840 | 3,688 | 3,130 | 7,829 | 22,811 | |||||||||||||||||||||||||
| Income from continuing operations before income taxes | 14,905 | 10,085 | 13,492 | 41,648 | 16,422 | |||||||||||||||||||||||||
| Income tax expense | 6,290 | 4,227 | 5,093 | 17,071 | 7,192 | |||||||||||||||||||||||||
| Net income from continuing operations | 8,615 | 5,858 | 8,399 | 24,577 | 9,230 | |||||||||||||||||||||||||
| Net income from discontinued operations | 0 | 0 | 0 | 0 | 823 | |||||||||||||||||||||||||
| Net income | $ | 8,615 | $ | 5,858 | $ | 8,399 | $ | 24,577 | $ | 10,053 | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | ||||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||
| Gross Margin | ||||||||||||||||||||||||||||||
| Nurse and allied healthcare staffing | 27.4% | 26.5% | 27.2% | 27.4% | 26.5% | |||||||||||||||||||||||||
| Locum tenens staffing | 29.3% | 28.4% | 29.0% | 28.8% | 27.8% | |||||||||||||||||||||||||
| Physician permanent placement services | 62.6% | 64.1% | 62.7% | 62.6% | 61.2% | |||||||||||||||||||||||||
| Operating Data: | ||||||||||||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||||||||||||
| Average clinicians on assignment (4) | 5,771 | 5,884 | 5,924 | 5,970 | 5,640 | |||||||||||||||||||||||||
| Revenue per clinician per day(5) | $ | 321.99 | $ | 307.26 | $ | 315.61 | $ | 317.74 | $ | 309.85 | ||||||||||||||||||||
| Gross profit per clinician per day(5) | $ | 88.12 | $ | 81.27 | $ | 85.96 | $ | 86.93 | $ | 82.18 | ||||||||||||||||||||
| Locum tenens staffing | ||||||||||||||||||||||||||||||
| Days filled (6) | 50,993 | 45,868 | 50,127 | 146,477 | 138,610 | |||||||||||||||||||||||||
| Revenue per day filled(6) | $ | 1,475.75 | $ | 1,473.60 | $ | 1,450.48 | $ | 1,457.00 | $ | 1,433.46 | ||||||||||||||||||||
| Gross profit per day filled(6) | $ | 432.73 | $ | 418.33 | $ | 421.35 | $ | 419.51 | $ | 398.70 |
| As of September 30 | As of June 30, | |||||
| 2013 | 2012 | 2013 | ||||
| Leverage ratio (7) | 1.9 | 2.6 | 2.1 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| September 30, 2013 | June 30, 2013 | December 31, 2012 | ||||||||||||||||
| Assets | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 31,653 | $ | 10,519 | $ | 5,681 | ||||||||||||
| Accounts receivable, net | 144,933 | 149,798 | 142,510 | |||||||||||||||
| Accounts receivable, subcontractor | 18,869 | 15,728 | 18,467 | |||||||||||||||
| Deferred income taxes, net | 17,642 | 18,683 | 18,123 | |||||||||||||||
| Prepaid and other current assets | 13,183 | 15,502 | 18,963 | |||||||||||||||
| Total current assets | 226,280 | 210,230 | 203,744 | |||||||||||||||
| Restricted cash, cash equivalents and investments | 22,039 | 20,960 | 18,861 | |||||||||||||||
| Fixed assets, net | 17,405 | 16,826 | 14,815 | |||||||||||||||
| Other assets | 23,002 | 22,536 | 19,732 | |||||||||||||||
| Goodwill | 123,324 | 123,324 | 123,324 | |||||||||||||||
| Intangible assets, net | 132,127 | 133,708 | 136,910 | |||||||||||||||
| Total assets | $ | 544,177 | $ | 527,584 | $ | 517,386 | ||||||||||||
| Liabilities and stockholders equity | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable and accrued expenses | 54,842 | 52,374 | 52,619 | |||||||||||||||
| Accrued compensation and benefits | 54,220 | 46,871 | 49,443 | |||||||||||||||
| Current portion of notes payable | 0 | 5,000 | 0 | |||||||||||||||
| Other current liabilities | 6,251 | 6,924 | 7,463 | |||||||||||||||
| Total current liabilities | 115,313 | 111,169 | 109,525 | |||||||||||||||
| Notes payable, net of discount | 148,616 | 148,524 | 158,178 | |||||||||||||||
| Other long-term liabilities | 71,976 | 69,967 | 67,572 | |||||||||||||||
| Total liabilities | 335,905 | 329,660 | 335,275 | |||||||||||||||
| Commitments and contingencies | ||||||||||||||||||
| Stockholders equity | 208,272 | 197,924 | 182,111 | |||||||||||||||
| Total liabilities and stockholders equity | $ | 544,177 | $ | 527,584 | $ | 517,386 |
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, | ||||||||||||||||||||||||||||
| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 26,577 | $ | 11,512 | $ | 19,221 | $ | 43,099 | $ | 42,062 | ||||||||||||||||||||
| Net cash (used in) provided by investing activities | (503 | ) | (2,103 | ) | (3,142 | ) | (5,800 | ) | 4,218 | |||||||||||||||||||||
| Net cash used in financing activities | (4,856 | ) | (21,029 | ) | (7,471 | ) | (11,308 | ) | (46,354 | ) | ||||||||||||||||||||
| Effect of exchange rates on cash | (84 | ) | (55 | ) | (28 | ) | (19 | ) | (65 | ) | ||||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 21,134 | (11,675 | ) | 8,580 | 25,972 | (139 | ) | |||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 10,519 | 15,498 | 1,939 | 5,681 | 3,962 | |||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 31,653 | $ | 3,823 | $ | 10,519 | $ | 31,653 | $ | 3,823 |