Full Press Release Details
AMN HEALTHCARE ANNOUNCES FIRST-QUARTER 2016 RESULTS
Quarterly revenue increases to record high $468 million; reports adjusted EPS of $0.60
(May 5, 2016) AMN Healthcare Services, Inc. (NYSE: AHS), healthcare s leader and innovator in workforce solutions and staffing services, today announced its first-quarter 2016 financial results, which exceeded the Company s
guidance for revenue and adjusted EBITDA. Financial highlights are as follows:
Dollars in millions, except per share amounts.
| Q1 2016 | % Change Q1 2015 | |||||
| Revenue | $ | 468.0 | 43% | |||
| Gross profit | $ | 151.9 | 50% | |||
| Net income | $ | 25.9 | 112% | |||
| Diluted EPS | $ | 0.53 | 112% | |||
| Adjusted diluted EPS* | $ | 0.60 | 100% | |||
| Adjusted EBITDA* | $ | 58.7 | 76% |
* 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.
First-Quarter 2016 Highlights
The AMN Healthcare team continues to perform exceptionally well in an environment where workforce management has become a critical issue
in healthcare. Our unparalleled recruitment capabilities and broad suite of workforce solutions are helping healthcare organizations to approach labor challenges in new and innovative ways, said Susan R. Salka, President and Chief Executive
Officer of AMN Healthcare. Through our strong organic growth, coupled with contributions from our recent acquisitions, AMN delivered record revenue and earnings. With our continued MSP wins, a healthy pipeline for new contracts and a favorable
demand environment, we are optimistic that 2016 will be another year of solid growth.
First-Quarter 2016 Results
Consolidated revenue was $468 million, an increase of 43% from the same quarter last year and 16% sequentially; organic growth of 28% was the
primary driver. Revenue for the Nurse and Allied Solutions segment was $298 million, an increase of 37% from the same quarter last year and 13% sequentially. Locum Tenens Solutions revenue was $103 million, an increase of 19% from the same quarter
last year and 4% sequentially. Other Workforce Solutions segment revenue was $68 million, an increase of 183% from the same quarter last year and 68% sequentially. The Other Workforce Solutions segment revenue increase was the result of 43% organic
growth and the addition of B.E. Smith in January 2016.
Gross margin was 32.5%, which is 150 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 organic and acquired growth in the higher-margin workforce solutions businesses, along with a gross margin increase in the Locum
Tenens Solutions segment.
SG&A expenses were $98 million, or 20.9% of revenue, compared to 21.8% in the same quarter last year and
22.4% in the prior quarter. The favorable SG&A as a percentage of revenue was driven by operating leverage.
Net income was $26 million, or $0.53 per diluted share. Excluding amortization of intangible
assets and acquisition and integration costs incurred during the quarter, adjusted net income per diluted share was $0.60. Adjusted EBITDA was $59 million, a year-over-year increase of 76% and a sequential increase of 25%. Adjusted EBITDA
margin was 12.5%, representing a 230 basis point increase year-over-year and 90 basis point increase sequentially.
cash and cash equivalents totaled $23 million. Cash flow from operations was $35 million and capital expenditures were $7 million. The Company ended the quarter with total debt outstanding of $377 million, with a leverage ratio of 1.9 to 1.
Second-Quarter 2016 Outlook
| Metric | Guidance* | |
| Consolidated revenue | $450MM $456MM | |
| Gross margin | 32.5% | |
| SG&A as percentage of revenue | 21.5% | |
| Adjusted EBITDA margin | 11.5% |
* Note: Guidance percentage metrics are approximate.
The Company s revenue guidance is based on the expectation of a continued strong demand environment, representing year-over-year growth
of approximately 30%. The sequential revenue decline is due to typical seasonality in the nursing business and lower anticipated project revenue.
Conference Call on May 5, 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 first-quarter 2016 financial results on Thursday, May 5, 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) 230-1074 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. Alternatively, a telephonic replay of the call will be available
7:30 p.m. Eastern Time on May 5, 2016, and can be accessed until 11:59 p.m. Eastern Time on May 19, 2016 by calling (800) 475-6701 in the U.S. or (320) 365-3844
internationally, with access code 390723.
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
The Company s common stock is listed on the New York Stock Exchange under the symbol AHS. For more information
about AMN Healthcare, visit www.amnhealthcare.com, where the Company posts news releases, investor presentations, webcasts, SEC filings and other material information. The Company also utilizes email alerts and Really Simple Syndication
( RSS ) as routine channels to supplement distribution of this information. To register for email alerts and RSS, visit http://amnhealthcare.investorroom.com/emailalerts.
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 measures 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 and the footnotes thereto 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 outlook for 2016, the favorable demand environment, second-quarter 2016 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, 2015 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.
Director, Investor Relations
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Comprehensive Income
(in thousands, except per share amounts)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Revenue | $ | 468,002 | $ | 327,510 | $ | 402,552 | ||||||
| Cost of revenue | 316,104 | 226,078 | 270,748 | |||||||||
| Gross profit | 151,898 | 101,432 | 131,804 | |||||||||
| 32.5 | % | 31.0 | % | 32.7 | % | |||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 97,823 | 71,552 | 90,154 | |||||||||
| 20.9 | % | 21.8 | % | 22.4 | % | |||||||
| Depreciation and amortization | 6,765 | 5,095 | 5,322 | |||||||||
| Total operating expenses | 104,588 | 76,647 | 95,476 | |||||||||
| Income from operations | 47,310 | 24,785 | 36,328 | |||||||||
| Interest expense, net, and other | 3,249 | 1,807 | 1,993 | |||||||||
| Income before income taxes | 44,061 | 22,978 | 34,335 | |||||||||
| Income tax expense | 18,192 | 10,769 | 14,170 | |||||||||
| Net income | $ | 25,869 | $ | 12,209 | $ | 20,165 | ||||||
| Other comprehensive income (loss): | ||||||||||||
| Foreign currency translation | 39 | 68 | 33 | |||||||||
| Unrealized gain (loss) on cash flow hedge, net of income taxes | (463 | ) | 0 | 429 | ||||||||
| Other comprehensive income (loss) | (424 | ) | 68 | 462 | ||||||||
| Comprehensive income | $ | 25,445 | $ | 12,277 | $ | 20,627 | ||||||
| Net income per common share: | ||||||||||||
| Basic | $ | 0.54 | $ | 0.26 | $ | 0.42 | ||||||
| Diluted | $ | 0.53 | $ | 0.25 | $ | 0.41 | ||||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 47,894 | 47,146 | 47,699 | |||||||||
| Diluted | 49,103 | 48,364 | 49,157 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share data)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2016 | 2015 (1) | 2015 (1) | ||||||||||
| Revenue | ||||||||||||
| Nurse and allied solutions | $ | 297,724 | $ | 216,992 | $ | 263,019 | ||||||
| Locum tenens solutions | 102,738 | 86,692 | 99,256 | |||||||||
| Other workforce solutions | 67,540 | 23,826 | 40,277 | |||||||||
| $ | 468,002 | $ | 327,510 | $ | 402,552 | |||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||
| Segment operating income (2) | ||||||||||||
| Nurse and allied solutions | $ | 41,618 | $ | 27,362 | $ | 33,094 | ||||||
| Locum tenens solutions | 13,291 | 9,110 | 13,869 | |||||||||
| Other workforce solutions | 17,586 | 7,810 | 11,993 | |||||||||
| 72,495 | 44,282 | 58,956 | ||||||||||
| Unallocated corporate overhead | 13,805 | 10,960 | 12,101 | |||||||||
| Adjusted EBITDA (3) | 58,690 | 33,322 | 46,855 | |||||||||
| Adjusted EBITDA margin (4) | 12.5 | % | 10.2 | % | 11.6 | % | ||||||
| Depreciation and amortization | 6,765 | 5,095 | 5,322 | |||||||||
| Share-based compensation | 3,381 | 2,377 | 3,733 | |||||||||
| Acquisition and integration costs | 1,234 | 1,065 | 1,472 | |||||||||
| Interest expense, net, and other | 3,249 | 1,807 | 1,993 | |||||||||
| Income before income taxes | 44,061 | 22,978 | 34,335 | |||||||||
| Income tax expense | 18,192 | 10,769 | 14,170 | |||||||||
| Net income | $ | 25,869 | $ | 12,209 | $ | 20,165 | ||||||
| GAAP diluted net income per share (EPS) | $ | 0.53 | $ | 0.25 | $ | 0.41 | ||||||
| Adjustments (net of tax): | ||||||||||||
| Amortization of intangible assets | 0.05 | 0.04 | 0.04 | |||||||||
| Acquisition and integration costs | 0.02 | 0.01 | 0.02 | |||||||||
| Adjusted diluted EPS (5) | $ | 0.60 | $ | 0.30 | $ | 0.47 |
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Gross Margin | ||||||||||||
| Nurse and allied solutions | 26.6 | % | 26.6 | % | 27.1 | % | ||||||
| Locum tenens solutions | 31.0 | % | 29.4 | % | 31.2 | % | ||||||
| Other workforce solutions | 60.3 | % | 76.6 | % | 73.6 | % | ||||||
| Operating Data: | ||||||||||||
| Nurse and allied solutions | ||||||||||||
| Average healthcare professionals on assignment (6) | 8,474 | 7,223 | 8,032 | |||||||||
| Revenue per healthcare professional per day (7) | $ | 386 | $ | 334 | $ | 356 | ||||||
| Locum tenens solutions | ||||||||||||
| Days filled (8) | 58,166 | 54,260 | 55,929 | |||||||||
| Revenue per day filled (9) | $ | 1,766 | $ | 1,598 | $ | 1,775 |
| As of March 31, | As of December 31, | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Leverage ratio (10) | 1.9 | 2.2 | 1.4 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| March 31, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 23,106 | $ | 9,576 | ||||
| Accounts receivable, net | 302,342 | 277,996 | ||||||
| Accounts receivable, subcontractor | 49,858 | 50,807 | ||||||
| Prepaid and other current assets | 37,656 | 37,249 | ||||||
| Total current assets | 412,962 | 375,628 | ||||||
| Restricted cash and cash equivalents | 27,176 | 27,352 | ||||||
| Fixed assets, net | 53,731 | 50,134 | ||||||
| Other assets | 52,993 | 47,569 | ||||||
| Goodwill | 307,161 | 204,779 | ||||||
| Intangible assets, net | 240,478 | 174,970 | ||||||
| Total assets | $ | 1,094,501 | $ | 880,432 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 109,121 | $ | 118,822 | ||||
| Accrued compensation and benefits | 98,049 | 83,701 | ||||||
| Current portion of revolving credit facility | 40,000 | 30,000 | ||||||
| Current portion of notes payable | 11,250 | 7,500 | ||||||
| Deferred revenue | 8,436 | 5,620 | ||||||
| Other current liabilities | 23,998 | 5,374 | ||||||
| Total current liabilities | 290,854 | 251,017 | ||||||
| Revolving credit facility | 127,500 | 52,500 | ||||||
| Notes payable, less unamortized fees | 196,746 | 128,490 | ||||||
| Deferred income taxes, net | 22,514 | 22,431 | ||||||
| Other long-term liabilities | 83,076 | 78,134 | ||||||
| Total liabilities | 720,690 | 532,572 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders equity | 373,811 | 347,860 | ||||||
| Total liabilities and stockholders equity | $ | 1,094,501 | $ | 880,432 |
AMN Healthcare Services, Inc.
Summary Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Net cash provided by operating activities | $ | 35,227 | $ | 8,687 | $ | 676 | ||||||
| Net cash used in investing activities | (174,703 | ) | (85,350 | ) | (10,451 | ) | ||||||
| Net cash provided by financing activities | 152,967 | 75,155 | 4,910 | |||||||||
| Effect of exchange rates on cash | 39 | 68 | 33 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 13,530 | (1,440 | ) | (4,832 | ) | |||||||
| Cash and cash equivalents at beginning of period | 9,576 | 13,073 | 14,408 | |||||||||
| Cash and cash equivalents at end of period | $ | 23,106 | $ | 11,633 | $ | 9,576 |