Full Press Release Details
| Contact: | ||
| Neil Thomas | ||
| Senior Director, Investor Relations | ||
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES FIRST QUARTER 2017 RESULTS
Quarterly revenue of $495 million, up 6% over prior year;
GAAP EPS of $0.65 and adjusted EPS of $0.63
SAN DIEGO (May 4, 2017) AMN Healthcare Services, Inc. (NYSE: AMN), healthcare s leader and innovator in workforce solutions
and staffing services, today announced its first quarter 2017 financial results. Financial highlights are as follows:
millions, except per share amounts.
| Q1 2017 | % Change Q1 2016 | |||||||
| Revenue | $ | 495.2 | 6 | % | ||||
| Gross profit | $ | 161.8 | 7 | % | ||||
| Net income | $ | 32.0 | 24 | % | ||||
| Diluted EPS | $ | 0.65 | 23 | % | ||||
| Adj. diluted EPS* | $ | 0.63 | 5 | % | ||||
| Adjusted EBITDA* | $ | 63.2 | 8 | % |
AMN Healthcare s capabilities as the leader and most comprehensive
workforce partner within healthcare continues to set us apart in the marketplace and deliver strong results for our clients and shareholders, said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. Our solutions are
helping clients in multiple ways to ensure they have the right talent when and where they are needed and to effectively manage their labor costs as they navigate new care delivery models and regulatory changes.
With a positive outlook for 2017 and favorable long-term macro drivers providing us confidence in our business, we will
continue to make investments that enable us to extend our leadership position into the future, added Ms. Salka.
Consolidated revenue for the quarter was $495 million, a 6% increase over prior year. Excluding labor
disruption revenue and the leap year impact, consolidated first quarter revenue was up 10% year-over-year and 4% sequentially.
Revenue for the Nurse and Allied Solutions segment was $314 million, which is 5% higher year-over-year and 2% higher
sequentially. The Travel Nurse division continued with strong performance, with revenue up 9% year-over-year and 6% sequentially. The Allied division revenue increased 14% year-over-year and 3% sequentially. There was no labor disruption revenue
reported in the quarter as compared to approximately $12 million in the prior year quarter.
Locum Tenens Solutions
segment revenue was $103 million, flat year-over-year and down 1% sequentially. The Other Workforce Solutions segment revenue was $79 million, an increase of 17% year-over-year and 4% sequentially, with the year-over-year growth driven by
the Peak Health Solutions acquisition last June and growth in our VMS, interim leadership, and workforce optimization businesses.
Gross margin was 32.7%, which is 20 basis points higher both year-over-year and
SG&A expenses were $102 million, or 20.6% of revenue, compared to $98 million, or 20.9% of
revenue, in the same quarter last year and $101 million, or 20.7% of revenue, in the previous quarter.
was $32 million, or $0.65 per diluted share, compared to $26 million, or $0.53 per diluted share, in the same quarter last year. Excluding amortization of intangible assets, acquisition and integration costs, net of tax, and the excess tax
benefits relating to a change in stock compensation accounting, adjusted net income per diluted share was $0.63. Adjusted EBITDA was $63 million, a year-over-year increase of 8%. Adjusted EBITDA margin was 12.8%, representing a 30 basis point
increase year-over-year and sequentially.
At March 31, 2017, cash and cash equivalents
totaled $38 million. Cash flow from operations was $52 million and capital expenditures were $5 million. The Company ended the quarter with total debt outstanding of $368 million, with a leverage ratio as
calculated in accordance with the Company s credit agreement of 1.6 to 1.
Second-Quarter 2017 Outlook
| Metric | Guidance* | |
| Consolidated revenue | $486 - $492 MM | |
| Gross margin | 32.5% | |
| SG&A as percentage of revenue | 20.5% | |
| Adjusted EBITDA margin | 12.5% |
Excluding any labor disruption revenue, the second quarter is expected to reflect year-over-year growth of
7-8%. On an as reported basis, the projected growth rate of 3-4% reflects the impact of significant labor disruption revenue in the prior year. The
sequential decline comes from a seasonal decline in Travel Nursing, partially offset by growth in all other divisions.
Conference Call on May 4,
AMN Healthcare Services, Inc. (NYSE: AMN), healthcare s leader and innovator in workforce solutions and
staffing services, will host a conference call to discuss its first quarter 2017 financial results on Thursday, May 4, 2017 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) 230-1092 in the U.S. or (612) 332-0720 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 starting at 7:30 p.m. Eastern Time on May 4, 2017, and can be accessed until 11:59 p.m. Eastern Time on May 18, 2017 by calling (800)
475-6701 in the U.S. or (320) 365-3844 internationally, with access code 421631.
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, medical coding and consulting, and other 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.
The Company s common stock is listed on the New York Stock
Exchange under the symbol AMN. 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.
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 measures and may be different from non-GAAP measures, or may be calculated differently than other similarly titled 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
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. Forward-looking statements include, among others, statements concerning our future financial performance, our guidance for second quarter 2017 revenue, gross
margin, SG&A expenses as a percentage of revenue, and adjusted EBITDA margin, our positive outlook for 2017, the existence of favorable long-term macro drivers, our ability to make successful investments, and the ability of our solutions to help
our clients operate effectively in new regulatory envirotnments. The Company bases 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 our fillings
with the Securities and Exchange Commission (SEC), including our most recent Annual Report on Form 10-K for the year ended December 31, 2016, our subsequent Quartely Reports on Form 10-Q and our Current Reports on Form 8-K. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated and the Company
is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Senior 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, | |||||||||||
| 2017 | 2016 | 2016 | ||||||||||
| Revenue | $ | 495,169 | $ | 468,002 | $ | 487,858 | ||||||
| Cost of revenue | 333,393 | 316,104 | 329,252 | |||||||||
| Gross profit | 161,776 | 151,898 | 158,606 | |||||||||
| Gross margin | 32.7 | % | 32.5 | % | 32.5 | % | ||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative (SG&A) | 102,073 | 97,823 | 101,113 | |||||||||
| SG&A as a % of revenue | 20.6 | % | 20.9 | % | 20.7 | % | ||||||
| Depreciation and amortization | 7,668 | 6,765 | 7,732 | |||||||||
| Total operating expenses | 109,741 | 104,588 | 108,845 | |||||||||
| Income from operations | 52,035 | 47,310 | 49,761 | |||||||||
| Operating margin (1) | 10.5 | % | 10.1 | % | 10.2 | % | ||||||
| Interest expense, net, and other | 5,130 | 3,249 | 6,400 | |||||||||
| Income before income taxes | 46,905 | 44,061 | 43,361 | |||||||||
| Income tax expense | 14,897 | 18,192 | 17,010 | |||||||||
| Net income | $ | 32,008 | $ | 25,869 | $ | 26,351 | ||||||
| Net income as a % of revenue | 6.5 | % | 5.5 | % | 5.4 | % | ||||||
| Other comprehensive income (loss): | ||||||||||||
| Foreign currency translation and other | 3 | 39 | 102 | |||||||||
| Unrealized gain (loss) on cash flow hedge, net of income taxes | 43 | (463 | ) | 260 | ||||||||
| Other comprehensive income (loss) | 46 | (424 | ) | 362 | ||||||||
| Comprehensive income | $ | 32,054 | $ | 25,445 | $ | 26,713 | ||||||
| Net income per common share: | ||||||||||||
| Basic | $ | 0.67 | $ | 0.54 | $ | 0.55 | ||||||
| Diluted | $ | 0.65 | $ | 0.53 | $ | 0.54 | ||||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 47,782 | 47,894 | 47,806 | |||||||||
| Diluted | 49,520 | 49,103 | 49,208 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share data and operating data)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2017 | 2016 | 2016 | ||||||||||
| Revenue | ||||||||||||
| Nurse and allied solutions | $ | 313,523 | $ | 297,724 | $ | 307,898 | ||||||
| Locum tenens solutions | 102,843 | 102,738 | 103,822 | |||||||||
| Other workforce solutions | 78,803 | 67,540 | 76,138 | |||||||||
| $ | 495,169 | $ | 468,002 | $ | 487,858 | |||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||
| Segment operating income (2) | ||||||||||||
| Nurse and allied solutions | $ | 45,980 | $ | 41,618 | $ | 43,262 | ||||||
| Locum tenens solutions | 12,219 | 13,291 | 15,123 | |||||||||
| Other workforce solutions | 19,857 | 17,586 | 21,139 | |||||||||
| 78,056 | 72,495 | 79,524 | ||||||||||
| Unallocated corporate overhead | 14,891 | 13,805 | 18,649 | |||||||||
| Adjusted EBITDA (3) | 63,165 | 58,690 | 60,875 | |||||||||
| Adjusted EBITDA margin (4) | 12.8 | % | 12.5 | % | 12.5 | % | ||||||
| Depreciation and amortization | 7,668 | 6,765 | 7,732 | |||||||||
| Share-based compensation | 2,681 | 3,381 | 2,604 | |||||||||
| Acquisition and integration costs | 781 | 1,234 | 778 | |||||||||
| Income from operations | 52,035 | 47,310 | 49,761 | |||||||||
| Interest expense, net, and other | 5,130 | 3,249 | 6,400 | |||||||||
| Income before income taxes | 46,905 | 44,061 | 43,361 | |||||||||
| Income tax expense | 14,897 | 18,192 | 17,010 | |||||||||
| Net income | $ | 32,008 | $ | 25,869 | $ | 26,351 | ||||||
| GAAP diluted net income per share (EPS) | $ | 0.65 | $ | 0.53 | $ | 0.54 | ||||||
| Adjustments: | ||||||||||||
| Amortization of intangible assets | 0.09 | 0.09 | 0.10 | |||||||||
| Acquisition and integration costs | 0.02 | 0.03 | 0.01 | |||||||||
| Debt financing related costs | 0.00 | 0.00 | 0.02 | |||||||||
| Tax effect on above adjustments | (0.04 | ) | (0.05 | ) | (0.05 | ) | ||||||
| Excess tax benefits (5) | (0.09 | ) | 0.00 | 0.00 | ||||||||
| Adjusted diluted EPS (6) | $ | 0.63 | $ | 0.60 | $ | 0.62 |
| Three Months Ended | ||||||||||||
| March 31, | December 31, | |||||||||||
| 2017 | 2016 | 2016 | ||||||||||
| Gross Margin | ||||||||||||
| Nurse and allied solutions | 27.7 | % | 26.6 | % | 27.3 | % | ||||||
| Locum tenens solutions | 30.7 | % | 31.0 | % | 30.8 | % | ||||||
| Other workforce solutions | 55.0 | % | 60.3 | % | 55.7 | % | ||||||
| Operating Data: | ||||||||||||
| Nurse and allied solutions | ||||||||||||
| Average healthcare professionals on assignment consolidated (7) | 9,051 | 8,474 | 8,764 | |||||||||
| Locum tenens solutions | ||||||||||||
| Days filled (8) | 55,243 | 58,166 | 57,008 | |||||||||
| Revenue per day filled (9) | $ | 1,862 | $ | 1,766 | $ | 1,821 |
| As of March 31, | As of December 31, | |||||||||||
| 2017 | 2016 | 2016 | ||||||||||
| Leverage ratio (10) | 1.6 | 1.9 | 1.6 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| March 31, 2017 | December 31, 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 37,711 | $ | 10,622 | ||||
| Accounts receivable, net | 334,782 | 341,977 | ||||||
| Accounts receivable, subcontractor | 48,838 | 49,233 | ||||||
| Prepaid and other current assets | 50,893 | 48,796 | ||||||
| Total current assets | 472,224 | 450,628 | ||||||
| Restricted cash, cash equivalents and investments | 29,141 | 31,287 | ||||||
| Fixed assets, net | 62,620 | 59,954 | ||||||
| Other assets | 65,368 | 57,534 | ||||||
| Goodwill | 340,564 | 341,754 | ||||||
| Intangible assets, net | 241,130 | 245,724 | ||||||
| Total assets | $ | 1,211,047 | $ | 1,186,881 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 136,028 | $ | 137,512 | ||||
| Accrued compensation and benefits | 99,642 | 107,993 | ||||||
| Current portion of notes payable | 3,750 | 3,750 | ||||||
| Deferred revenue | 8,840 | 8,924 | ||||||
| Other current liabilities | 29,428 | 16,611 | ||||||
| Total current liabilities | 277,688 | 274,790 | ||||||
| Notes payable, less unamortized fees | 358,512 | 359,192 | ||||||
| Deferred income taxes, net | 16,548 | 21,420 | ||||||
| Other long-term liabilities | 81,494 | 82,096 | ||||||
| Total liabilities | 734,242 | 737,498 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders equity | 476,805 | 449,383 | ||||||
| Total liabilities and stockholders equity | $ | 1,211,047 | $ | 1,186,881 |
AMN Healthcare Services, Inc.
Summary Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
| Three Months Ended | ||||||||||||
| March 31, | December 31 | |||||||||||
| 2017 | 2016 | 2016 | ||||||||||
| Net cash provided by operating activities | $ | 52,314 | $ | 35,227 | $ | 47,031 | ||||||
| Net cash used in investing activities | (13,301 | ) | (174,703 | ) | (16,091 | ) | ||||||
| Net cash provided by (used in) financing activities | (11,928 | ) | 152,967 | (36,128 | ) | |||||||
| Effect of exchange rates on cash | 4 | 39 | 102 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 27,089 | 13,530 | (5,086 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 10,622 | 9,576 | 15,708 | |||||||||
| Cash and cash equivalents at end of period | $ | 37,711 | $ | 23,106 | $ | 10,622 |
AMN Healthcare Services, Inc.
Additional Supplemental Non-GAAP Disclosures
Reconciliation of Guidance Adjusted EBITDA Margin to
Guidance Operating Margin
| Three Months Ending | ||||
| June 30, 2017 | ||||
| Adjusted EBITDA margin | 12.5 | % (11) | ||
| Deduct: | ||||
| Share-based compensation | 0.6 | % | ||
| EBITDA margin | 11.9 | % | ||
| Depreciation and amortization | 1.6 | % | ||
| Operating margin | 10.3 | % |