Full Press Release Details
| Contact: |
| Brian M. Scott |
| Chief Financial Officer |
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2015 RESULTS
Quarterly revenue increases to record high $403 million; reports adjusted EPS of $0.47 (GAAP EPS of $0.41)
SAN DIEGO (February 18, 2016) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s leader and innovator in workforce solutions and
staffing services, today announced its fourth quarter and full year 2015 financial results, which exceeded the Company s guidance for revenue and adjusted EBITDA. Fourth quarter and full year financial highlights are as follows:
Dollars in millions, except per share amounts.
| Q4 2015 | % Change Q4 2014 | Full Year 2015 | % Change Full Year 2014 | |||||||||||||
| Revenue | $ | 402.6 | 44% | $ | 1,463.1 | 41% | ||||||||||
| Gross profit | $ | 131.8 | 56% | $ | 469.4 | 48% | ||||||||||
| Net income | $ | 20.2 | 104% | $ | 81.9 | 147% | ||||||||||
| Diluted EPS | $ | 0.41 | 105% | $ | 1.68 | 143% | ||||||||||
| Adjusted diluted EPS* | $ | 0.47 | 104% | $ | 1.64 | 98% | ||||||||||
| Adjusted EBITDA* | $ | 46.9 | 85% | $ | 165.2 | 81% |
AMN Healthcare had a remarkable year, making significant strides in our long-term strategy of
providing the most innovative workforce solutions to the healthcare community, said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. By staying focused on the needs of our clients and clinicians, our team
delivered industry-leading revenue and earnings growth, and we exceeded our previously stated objective of a 10% adjusted EBITDA margin. Our shareholders also benefitted with a total shareholder return of 58% for 2015.
We successfully integrated acquisitions made early in 2015 and further expanded our workforce solutions into executive, physician, and
nurse leadership placement services through the acquisitions of B.E. Smith, The First String, and MillicanSolutions. With our unparalleled range of offerings, we have further solidified our market-leading position as the innovator in healthcare
workforce solutions. Based on the solid long-term macro-drivers of our industry, the current market environment and our continuing strong trends as we begin 2016, we feel positive about our growth trajectory and ability to continue delivering
differentiated value to our clients and shareholders.
Fourth Quarter 2015 Results
For the fourth quarter of 2015, consolidated revenue was $403 million, an increase of 44% from the same quarter last year and 5% sequentially.
Fourth quarter revenue for the Nurse and Allied Healthcare Staffing segment was $289 million, up 51% from the same quarter last year and 8% sequentially. Locum Tenens Staffing segment revenue in the fourth quarter was $99 million, an increase of 30%
from the same quarter last year and down 2% sequentially. Fourth quarter Physician Permanent Placement Services segment revenue was $15 million, an increase of 23% from the same quarter last year and down 1% sequentially.
Fourth quarter gross margin of 32.7% was 240 basis points higher than the same quarter last year and 20 basis points lower sequentially. The
year-over-year gross margin improvement was driven primarily by an increased revenue mix of our higher-margin workforce solutions businesses, along with a gross margin increase in the Locum Tenens Staffing segment.
SG&A expenses for the fourth quarter were $90 million, representing 22.4% of revenue,
compared to 22.1% in the same quarter last year and 21.7% in the prior quarter. The SG&A increase was due primarily to higher acquisition and integration costs and higher expenses to support business growth and strategic initiatives.
Fourth quarter net income was $20 million and net income per diluted share was $0.41. Excluding amortization of intangible assets and
acquisition and integration costs incurred during the quarter, adjusted net income per diluted share was $0.47. Fourth quarter adjusted EBITDA was $47 million, a year-over-year increase of 85% and a sequential increase of 3%. Fourth quarter adjusted
EBITDA margin of 11.6% represented a 260 basis point increase year-over-year and 30 basis point decrease sequentially.
Full year 2015 consolidated revenue was $1,463 million, an increase of 41% from prior year. Nurse and Allied Healthcare
Staffing segment revenue was $1,024 million, a year-over-year increase of 47%. Locum Tenens Staffing segment revenue was $385 million, a year-over-year increase of 30%. Physician Permanent Placement Services segment revenue was $54 million, a
year-over-year increase of 21%.
Full year gross margin was 32.1% as compared to 30.5% for prior year, with gross margin expansion across
all three reportable segments.
Full year SG&A expenses were $320 million, representing 21.8% of revenue as compared to 22.4% for the
prior year. The decrease in SG&A margin was due primarily to operating leverage on the revenue growth.
Full year net income was $82
million, which included a $12 million favorable reversal of tax reserves. Full year net income per diluted common share was $1.68. Excluding the tax reserve reversal, amortization of intangible assets, and acquisition and integration costs incurred
during the year, adjusted net income per diluted share was $1.64. Full year adjusted EBITDA grew 81% to $165 million. Adjusted EBITDA margin of 11.3% represented a 250 basis point increase over prior year.
At December 31, 2015, cash and cash equivalents totaled $10 million. Full year cash flow
from operations was $57 million and capital expenditures were $27 million. The Company ended the year with total debt outstanding of $219 million, with a leverage ratio of 1.4 to 1.
Business Trends and Outlook
Company expects consolidated first quarter 2016 revenue of $444 million to $450 million. Gross margin is expected to be approximately 33.0%. SG&A expenses as a percentage of revenue are expected to be approximately 22.0%. Adjusted EBITDA margin
is expected to be approximately 11.5%.
As AMN Healthcare continues to expand its leadership position as the innovator in healthcare
workforce solutions and is able to gain SG&A leverage from revenue growth and technology driven efficiencies, management believes the Company can further improve its conversion of revenue to profitability. Assuming macro-trends remain positive,
the Company is setting a long-term goal of achieving an adjusted EBITDA margin of 14% by 2020.
About AMN Healthcare
AMN Healthcare is the leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation.
The Company provides unparalleled access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights and expertise, AMN Healthcare helps
providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN delivers managed services programs, healthcare executive search solutions, vendor management systems, recruitment process
outsourcing, predictive modeling, and other consulting services. 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. For more information about AMN Healthcare, visit www.amnhealthcare.com.
Conference Call on February 18, 2016
AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s leader and innovator in workforce solutions and staffing services, will host a conference call to
discuss its fourth quarter and full year 2015 financial results on Thursday, February 18, 2016 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) 230-1093 in the U.S. or (612) 288-0329 internationally. Following the conclusion of the call, a replay of the webcast will be available at the Company s website. Alternatively, a telephonic replay of the call will be available
at 7:30 p.m. Eastern Time on February 18, 2016, and can be accessed until 11:59 p.m. Eastern Time on March 3, 2016 by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 384127.
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 positive outlook for 2016, first quarter 2016 revenue, gross margin, SG&A expenses and adjusted EBITDA margin, and adjusted
EBITDA margin by 2020. 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.
Chief Financial Officer
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
| Revenue | $ | 402,552 | $ | 279,649 | $ | 382,859 | $ | 1,463,065 | $ | 1,036,027 | ||||||||||
| Cost of revenue | 270,748 | 194,953 | 256,850 | 993,702 | 719,910 | |||||||||||||||
| Gross profit | 131,804 | 84,696 | 126,009 | 469,363 | 316,117 | |||||||||||||||
| 32.7 | % | 30.3 | % | 32.9 | % | 32.1 | % | 30.5 | % | |||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 90,154 | 61,668 | 83,098 | 319,531 | 232,221 | |||||||||||||||
| 22.4 | % | 22.1 | % | 21.7 | % | 21.8 | % | 22.4 | % | |||||||||||
| Depreciation and amortization | 5,322 | 4,077 | 5,304 | 20,953 | 15,993 | |||||||||||||||
| Total operating expenses | 95,476 | 65,745 | 88,402 | 340,484 | 248,214 | |||||||||||||||
| Income from operations | 36,328 | 18,951 | 37,607 | 128,879 | 67,903 | |||||||||||||||
| Interest expense, net, and other | 1,993 | 1,329 | 2,013 | 7,790 | 9,237 | |||||||||||||||
| Income before income taxes | 34,335 | 17,622 | 35,594 | 121,089 | 58,666 | |||||||||||||||
| Income tax expense | 14,170 | 7,727 | 1,947 | 39,198 | 25,449 | |||||||||||||||
| Net income | $ | 20,165 | $ | 9,895 | $ | 33,647 | $ | 81,891 | $ | 33,217 | ||||||||||
| Other comprehensive income (loss): | ||||||||||||||||||||
| Foreign currency translation | 33 | 113 | 54 | 75 | 142 | |||||||||||||||
| Unrealized gain (loss) on cash flow hedge, net of income taxes | 429 | 0 | (367 | ) | 98 | 0 | ||||||||||||||
| Other comprehensive income (loss) | 462 | 113 | (313 | ) | 173 | 142 | ||||||||||||||
| Comprehensive income | $ | 20,627 | $ | 10,008 | $ | 33,334 | $ | 82,064 | $ | 33,359 | ||||||||||
| Net income per common share: | ||||||||||||||||||||
| Basic | $ | 0.42 | $ | 0.21 | $ | 0.71 | $ | 1.72 | $ | 0.71 | ||||||||||
| Diluted | $ | 0.41 | $ | 0.20 | $ | 0.69 | $ | 1.68 | $ | 0.69 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 47,699 | 46,634 | 47,674 | 47,525 | 46,504 | |||||||||||||||
| Diluted | 49,157 | 48,462 | 48,978 | 48,843 | 48,086 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 288,595 | $ | 191,570 | $ | 266,279 | $ | 1,023,936 | $ | 695,206 | ||||||||||
| Locum tenens staffing | 99,256 | 76,170 | 101,755 | 385,091 | 296,166 | |||||||||||||||
| Physician permanent placement services | 14,701 | 11,909 | 14,825 | 54,038 | 44,655 | |||||||||||||||
| $ | 402,552 | $ | 279,649 | $ | 382,859 | $ | 1,463,065 | $ | 1,036,027 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment operating income (1) | ||||||||||||||||||||
| Nurse and allied healthcare staffing | $ | 41,089 | $ | 23,963 | $ | 40,873 | $ | 149,258 | $ | 87,246 | ||||||||||
| Locum tenens staffing | 13,869 | 8,155 | 13,321 | 48,011 | 30,985 | |||||||||||||||
| Physician permanent placement services | 3,998 | 2,744 | 4,555 | 15,101 | 9,818 | |||||||||||||||
| 58,956 | 34,862 | 58,749 | 212,370 | 128,049 | ||||||||||||||||
| Unallocated corporate overhead | 12,101 | 9,601 | 13,127 | 47,194 | 36,559 | |||||||||||||||
| Adjusted EBITDA (2) | 46,855 | 25,261 | 45,622 | 165,176 | 91,490 | |||||||||||||||
| Adjusted EBITDA margin (3) | 11.6 | % | 9.0 | % | 11.9 | % | 11.3 | % | 8.8 | % | ||||||||||
| Depreciation and amortization | 5,322 | 4,077 | 5,304 | 20,953 | 15,993 | |||||||||||||||
| Share-based compensation | 3,733 | 1,796 | 2,021 | 10,284 | 7,157 | |||||||||||||||
| Acquisition and integration costs | 1,472 | 437 | 690 | 5,060 | 437 | |||||||||||||||
| Interest expense, net, and other | 1,993 | 1,329 | 2,013 | 7,790 | 9,237 | |||||||||||||||
| Income before income taxes | 34,335 | 17,622 | 35,594 | 121,089 | 58,666 | |||||||||||||||
| Income tax expense | 14,170 | 7,727 | 1,947 | 39,198 | 25,449 | |||||||||||||||
| Net income | $ | 20,165 | $ | 9,895 | $ | 33,647 | $ | 81,891 | $ | 33,217 | ||||||||||
| GAAP diluted net income per share (EPS) | $ | 0.41 | $ | 0.20 | $ | 0.69 | $ | 1.68 | $ | 0.69 | ||||||||||
| Adjustments (net of tax): | ||||||||||||||||||||
| Debt extinguishment costs | 0.00 | 0.00 | 0.00 | 0.00 | 0.04 | |||||||||||||||
| Amortization of intangible assets | 0.04 | 0.02 | 0.03 | 0.15 | 0.09 | |||||||||||||||
| Acquisition and integration costs | 0.02 | 0.01 | 0.01 | 0.06 | 0.01 | |||||||||||||||
| Income tax benefits | 0.00 | 0.00 | (0.25 | ) | (0.25 | ) | 0.00 | |||||||||||||
| Adjusted diluted EPS (4) | $ | 0.47 | $ | 0.23 | $ | 0.48 | $ | 1.64 | $ | 0.83 |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied healthcare staffing | 31.6 | % | 28.6 | % | 32.0 | % | 31.1 | % | 28.8 | % | ||||||||||
| Locum tenens staffing | 31.2 | % | 28.8 | % | 30.7 | % | 30.2 | % | 29.3 | % | ||||||||||
| Physician permanent placement services | 65.9 | % | 66.1 | % | 65.4 | % | 65.1 | % | 64.4 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied healthcare staffing | ||||||||||||||||||||
| Average healthcare professionals on assignment (5) | 8,091 | 6,030 | 7,574 | 7,529 | 5,715 | |||||||||||||||
| Locum tenens staffing | ||||||||||||||||||||
| Days filled (6) | 55,929 | 48,391 | 59,267 | 229,300 | 192,171 |
| As of December 31, | As of September 30, | |||||
| 2015 | 2014 | 2015 | ||||
| Leverage ratio (7) | 1.4 | 1.8 | 1.5 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 9,576 | $ | 14,408 | $ | 13,073 | ||||||
| Accounts receivable, net | 277,996 | 248,779 | 186,274 | |||||||||
| Accounts receivable, subcontractor | 50,807 | 49,521 | 28,443 | |||||||||
| Deferred income taxes, net | 0 | 18,378 | 27,330 | |||||||||
| Prepaid and other current assets | 37,249 | 37,895 | 27,550 | |||||||||
| Total current assets | 375,628 | 368,981 | 282,670 | |||||||||
| Restricted cash and cash equivalents | 27,352 | 25,425 | 19,567 | |||||||||
| Fixed assets, net | 50,134 | 45,407 | 32,880 | |||||||||
| Other assets | 47,569 | 46,634 | 38,710 | |||||||||
| Goodwill | 204,779 | 201,444 | 154,387 | |||||||||
| Intangible assets, net | 174,970 | 177,347 | 152,517 | |||||||||
| Total assets | $ | 880,432 | $ | 865,238 | $ | 680,731 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued expenses | $ | 118,822 | $ | 113,152 | $ | 78,993 | ||||||
| Accrued compensation and benefits | 83,701 | 88,492 | 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 | 5,620 | 4,944 | 3,177 | |||||||||
| Other current liabilities | 5,374 | 6,026 | 2,630 | |||||||||
| Total current liabilities | 251,017 | 250,114 | 178,295 | |||||||||
| Revolving credit facility | 52,500 | 45,500 | 0 | |||||||||
| Notes payable, less unamortized fees | 128,490 | 131,250 | 135,690 | |||||||||
| Deferred income taxes, net | 22,431 | 39,000 | 32,491 | |||||||||
| Other long-term liabilities | 78,134 | 75,409 | 77,674 | |||||||||
| Total liabilities | 532,572 | 541,273 | 424,150 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders equity | 347,860 | 323,965 | 256,581 | |||||||||
| Total liabilities and stockholders equity | $ | 880,432 | $ | 865,238 | $ | 680,731 |
AMN Healthcare Services, Inc.
Summary Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September, 30 | December 31, | ||||||||||||||||||
| 2015 | 2014 (8) | 2015 | 2015 | 2014 (8) | ||||||||||||||||
| Net cash provided by operating activities | $ | 1,416 | $ | 5,039 | $ | 21,950 | $ | 57,053 | $ | 27,678 | ||||||||||
| Net cash used in investing activities | (11,191 | ) | (17,908 | ) | (10,768 | ) | (116,825 | ) | (28,228 | ) | ||||||||||
| Net cash provided by (used in) financing activities | 4,910 | 16,166 | (11,302 | ) | 56,200 | (2,099 | ) | |||||||||||||
| Effect of exchange rates on cash | 33 | 113 | 54 | 75 | 142 | |||||||||||||||
| Net increase (decrease) in cash and cash equivalents | (4,832 | ) | 3,410 | (66 | ) | (3,497 | ) | (2,507 | ) | |||||||||||
| Cash and cash equivalents at beginning of period | 14,408 | 9,663 | 14,474 | 13,073 | 15,580 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 9,576 | $ | 13,073 | $ | 14,408 | $ | 9,576 | $ | 13,073 |
adjusted diluted EPS). Although management believes the items excluded from adjusted diluted EPS are not indicative of the Company s operating performance, these items do impact the
statement of comprehensive income, and management therefore utilizes adjusted diluted EPS as an operating performance measure in conjunction with GAAP measures such as GAAP diluted EPS.