Full Press Release Details
| Contact: | ||||
| Neil Thomas | ||||
| Senior Director, Investor Relations | ||||
| 866.861.3229 |
AMN HEALTHCARE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2016
Quarterly revenue of $488 million, up 21% over prior year;
GAAP EPS of $0.54 and adjusted EPS of $0.62
SAN DIEGO (February 16, 2017) AMN Healthcare Services, Inc. (NYSE: AMN), healthcare s leader and innovator in workforce solutions and
staffing services, today announced its fourth quarter and full year 2016 financial results. Financial highlights are as follows:
Dollars in millions,
except per share amounts.
| Q4 2016 | % Change Q4 2015 | Full Year 2016 | % Change Full Year 2015 | |||||||||||||
| Revenue | $ | 487.9 | 21 | % | $ | 1,902.2 | 30 | % | ||||||||
| Gross profit | $ | 158.6 | 20 | % | $ | 619.7 | 32 | % | ||||||||
| Net income | $ | 26.4 | 31 | % | $ | 105.8 | 29 | % | ||||||||
| Diluted EPS | $ | 0.54 | 32 | % | $ | 2.15 | 28 | % | ||||||||
| Adj. diluted EPS* | $ | 0.62 | 32 | % | $ | 2.44 | 49 | % | ||||||||
| Adjusted EBITDA* | $ | 60.9 | 30 | % | $ | 236.9 | 43 | % |
2016 was another very successful year for AMN Healthcare. In addition to our strong financial performance, we made great strides in
advancing our long-term strategy. We completed the integrations of B.E. Smith, HealthSource Global and Peak Health Solutions, allowing AMN to become an even more comprehensive, value-added workforce partner to our clients, said Susan R. Salka,
President and Chief Executive Officer of AMN Healthcare. Our strong performance in the fourth quarter and throughout the year positions us well for the future and led to a total shareholder return of 24% for 2016.
Ms. Salka added, Our businesses operate in a dynamic healthcare market with favorable long-term macro drivers, providing us the
confidence to continue making investments to ensure we are the best and most innovative partner to help our clients optimize their workforce and achieve their financial and patient care goals.
Fourth Quarter 2016 Results
Consolidated revenue for the quarter was $488 million, an increase of 21% year-over-year, including 10% organic growth.
Revenue for the Nurse and Allied Solutions segment was $308 million, which is 17% higher year-over-year and 7% higher sequentially. The
Travel Nurse division continued with strong performance, with revenue up 15% year-over-year and 4% sequentially. The Allied division revenue increased 12% year-over-year and 2% sequentially. Along with 12% year-over-year organic revenue growth, the
quarter also included higher than projected labor disruption revenue.
Locum Tenens Solutions segment revenue was $104 million, an increase of 5% year-over-year.
Revenue was down 4% sequentially, in line with typical seasonality.
The Other Workforce Solutions segment revenue was $76 million,
an increase of 89% year-over-year and down 1% sequentially, with the year-over-year growth driven by acquisitions during the year and growth in our vendor management solutions (VMS), interim nurse leadership, and workforce optimization businesses.
Gross margin was 32.5%, which is 20 basis points lower year-over-year and sequentially.
SG&A expenses were $101 million, or 20.7% of revenue, compared to $90 million, or 22.4% of revenue, in the same quarter last
year and $100 million, or 21.2% of revenue, in the previous quarter. The year-over-year 170 basis point decline in SG&A as a percentage of revenue was driven by improved operating leverage.
Net income was $26 million, or $0.54 per diluted share, compared to $20 million, or $0.41 per diluted share, in the same quarter
last year. Excluding amortization of intangible assets, acquisition and integration costs and debt refinancing related costs, net of tax, adjusted net income per diluted share was $0.62. Adjusted EBITDA was $61 million, a year-over-year
increase of 30%. Adjusted EBITDA margin was 12.5%, representing a 90 basis point increase year-over-year and a 20 basis point increase sequentially.
During the fourth quarter of 2016, the Company repurchased 443,353 shares of our common stock at an average price of $29.88 per share,
resulting in an aggregate purchase price of $13 million.
Full Year 2016 Results
Full year 2016 consolidated revenue was $1,902 million, an increase of 30% from prior year. Nurse and Allied Solutions segment revenue was
$1,185 million, a year-over-year increase of 24%. Locum Tenens Solutions segment revenue was $424 million, a year-over-year increase of 10%. Other Workforce Solutions segment revenue was $293 million, a year-over-year increase of
Full year gross margin was 32.6% as compared to 32.1% for prior year. The increase was due to growth in the higher margin Other
Workforce Solutions segment and higher bill-to-pay spreads in the Locum Tenens Solutions segment, partially offset by higher direct costs in the Nurse and Allied
Solutions segment during 2016.
Full year SG&A expenses were $398 million, representing 20.9% of revenue as compared to 21.8% 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
$106 million. Full year net income per diluted common share was $2.15. Excluding amortization of intangible assets, acquisition and integration costs and debt refinancing related costs incurred during the year, net of tax, adjusted net income
per diluted common share was $2.44. Full year adjusted EBITDA grew 43% to $237 million. Full year adjusted EBITDA margin of 12.5% represented a 120 basis point increase over prior year.
At December 31, 2016, cash and cash equivalents totaled $11 million. Cash flow from operations was $47 million for the quarter
and $132 million for the full year. Capital expenditures were $4 million in the quarter and $22 million for the year. The Company ended the year with total debt outstanding of $369 million, with a leverage ratio as calculated in
accordance with the Company s credit agreement of 1.6 to 1.
First-Quarter 2017 Outlook
| Metric | Guidance* | |
| Consolidated revenue | $489 - $495 MM | |
| Gross margin | 32.5% | |
| SG&A as percentage of revenue | 20.5% | |
| Adjusted EBITDA margin | 12.5% |
Conference Call on February 16, 2017
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 fourth quarter 2016 financial results on Thursday, February 16, 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) 230-1059 in the U.S. or (612) 234-9960 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 February 16, 2017, and can be accessed until 11:59 p.m. Eastern Time on March 2, 2017 by calling (800)
475-6701 in the U.S. or (320) 365-3844 internationally, with access code 415736.
About AMN Healthcare
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 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 Company s 2017 first quarter revenue, gross margin, SG&A expenses as a percentage of revenue, and adjusted EBITDA margin.
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 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.
Senior Director, Investor Relations
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, | ||||||||||||||||||
| 2016 | 2015 | 2016 | 2016 | 2015 | ||||||||||||||||
| Revenue | $ | 487,858 | $ | 402,552 | $ | 472,636 | $ | 1,902,225 | $ | 1,463,065 | ||||||||||
| Cost of revenue | 329,252 | 270,748 | 318,169 | 1,282,501 | 993,702 | |||||||||||||||
| Gross profit | 158,606 | 131,804 | 154,467 | 619,724 | 469,363 | |||||||||||||||
| Gross margin | 32.5 | % | 32.7 | % | 32.7 | % | 32.6 | % | 32.1 | % | ||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative (SG&A) | 101,113 | 90,154 | 99,995 | 398,472 | 319,531 | |||||||||||||||
| SG&A as a % of revenue | 20.7 | % | 22.4 | % | 21.2 | % | 20.9 | % | 21.8 | % | ||||||||||
| Depreciation and amortization | 7,732 | 5,322 | 7,789 | 29,620 | 20,953 | |||||||||||||||
| Total operating expenses | 108,845 | 95,476 | 107,784 | 428,092 | 340,484 | |||||||||||||||
| Income from operations | 49,761 | 36,328 | 46,683 | 191,632 | 128,879 | |||||||||||||||
| Operating margin (1) | 10.2 | % | 9.0 | % | 9.9 | % | 10.1 | % | 8.8 | % | ||||||||||
| Interest expense, net, and other | 6,400 | 1,993 | 3,016 | 15,465 | 7,790 | |||||||||||||||
| Income before income taxes | 43,361 | 34,335 | 43,667 | 176,167 | 121,089 | |||||||||||||||
| Income tax expense | 17,010 | 14,170 | 16,371 | 70,329 | 39,198 | |||||||||||||||
| Net income | $ | 26,351 | $ | 20,165 | $ | 27,296 | $ | 105,838 | $ | 81,891 | ||||||||||
| Net income as a % of revenue | 5.4 | % | 5.0 | % | 5.8 | % | 5.6 | % | 5.6 | % | ||||||||||
| Other comprehensive income: | ||||||||||||||||||||
| Foreign currency translation | 102 | 33 | 40 | 267 | 75 | |||||||||||||||
| Unrealized gain (loss) on cash flow hedge, net of income taxes | 260 | 429 | 231 | (83 | ) | 98 | ||||||||||||||
| Other comprehensive income | 362 | 462 | 271 | 184 | 173 | |||||||||||||||
| Comprehensive income | $ | 26,713 | $ | 20,627 | $ | 27,567 | $ | 106,022 | $ | 82,064 | ||||||||||
| Net income per common share: | ||||||||||||||||||||
| Basic | $ | 0.55 | $ | 0.42 | $ | 0.57 | $ | 2.21 | $ | 1.72 | ||||||||||
| Diluted | $ | 0.54 | $ | 0.41 | $ | 0.55 | $ | 2.15 | $ | 1.68 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 47,806 | 47,699 | 48,049 | 47,946 | 47,525 | |||||||||||||||
| Diluted | 49,208 | 49,157 | 49,410 | 49,267 | 48,843 |
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except per share data and revenue per day)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2016 | 2015 (2) | 2016 | 2016 | 2015 (2) | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Nurse and allied solutions | $ | 307,898 | $ | 263,019 | $ | 286,810 | $ | 1,185,095 | $ | 953,253 | ||||||||||
| Locum tenens solutions | 103,822 | 99,256 | 108,553 | 424,242 | 385,091 | |||||||||||||||
| Other workforce solutions | 76,138 | 40,277 | 77,273 | 292,888 | 124,721 | |||||||||||||||
| $ | 487,858 | $ | 402,552 | $ | 472,636 | $ | 1,902,225 | $ | 1,463,065 | |||||||||||
| Reconciliation of Non-GAAP Items: | ||||||||||||||||||||
| Segment operating income (3) | ||||||||||||||||||||
| Nurse and allied solutions | $ | 43,262 | $ | 33,094 | $ | 37,396 | $ | 161,779 | $ | 123,969 | ||||||||||
| Locum tenens solutions | 15,123 | 13,869 | 14,026 | 58,757 | 48,011 | |||||||||||||||
| Other workforce solutions | 21,139 | 11,993 | 20,867 | 77,450 | 40,390 | |||||||||||||||
| 79,524 | 58,956 | 72,289 | 297,986 | 212,370 | ||||||||||||||||
| Unallocated corporate overhead | 18,649 | 12,101 | 14,235 | 61,109 | 47,194 | |||||||||||||||
| Adjusted EBITDA (4) | 60,875 | 46,855 | 58,054 | 236,877 | 165,176 | |||||||||||||||
| Adjusted EBITDA margin (5) | 12.5 | % | 11.6 | % | 12.3 | % | 12.5 | % | 11.3 | % | ||||||||||
| Depreciation and amortization | 7,732 | 5,322 | 7,789 | 29,620 | 20,953 | |||||||||||||||
| Share-based compensation | 2,604 | 3,733 | 2,704 | 11,399 | 10,284 | |||||||||||||||
| Acquisition and integration costs | 778 | 1,472 | 878 | 4,226 | 5,060 | |||||||||||||||
| Income from operations | 49,761 | 36,328 | 46,683 | 191,632 | 128,879 | |||||||||||||||
| Interest expense, net, and other | 6,400 | 1,993 | 3,016 | 15,465 | 7,790 | |||||||||||||||
| Income before income taxes | 43,361 | 34,335 | 43,667 | 176,167 | 121,089 | |||||||||||||||
| Income tax expense | 17,010 | 14,170 | 16,371 | 70,329 | 39,198 | |||||||||||||||
| Net income | $ | 26,351 | $ | 20,165 | $ | 27,296 | $ | 105,838 | $ | 81,891 | ||||||||||
| GAAP diluted net income per share (EPS) | $ | 0.54 | $ | 0.41 | $ | 0.55 | $ | 2.15 | $ | 1.68 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Amortization of intangible assets | 0.10 | 0.06 | 0.09 | 0.37 | 0.24 | |||||||||||||||
| Acquisition and integration costs | 0.01 | 0.03 | 0.02 | 0.09 | 0.10 | |||||||||||||||
| IRS adjustment | 0.00 | 0.00 | 0.00 | 0.00 | (0.25 | ) | ||||||||||||||
| Debt financing related costs | 0.02 | 0.00 | 0.00 | 0.02 | 0.00 | |||||||||||||||
| Tax effect of adjustments | (0.05 | ) | (0.03 | ) | (0.04 | ) | (0.19 | ) | (0.13 | ) | ||||||||||
| Adjusted diluted EPS (6) | $ | 0.62 | $ | 0.47 | $ | 0.62 | $ | 2.44 | $ | 1.64 |
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | ||||||||||||||||||
| 2016 | 2015 (2) | 2016 | 2016 | 2015 (2) | ||||||||||||||||
| Gross Margin | ||||||||||||||||||||
| Nurse and allied solutions | 27.3 | % | 27.1 | % | 26.7 | % | 26.9 | % | 27.1 | % | ||||||||||
| Locum tenens solutions | 30.8 | % | 31.2 | % | 31.2 | % | 31.1 | % | 30.2 | % | ||||||||||
| Other workforce solutions | 55.7 | % | 73.6 | % | 56.7 | % | 57.8 | % | 75.9 | % | ||||||||||
| Operating Data: | ||||||||||||||||||||
| Nurse and allied solutions | ||||||||||||||||||||
| Average healthcare professionals on assignment consolidated (7) | 8,764 | 8,032 | 8,458 | 8,508 | 7,512 | |||||||||||||||
| Locum tenens solutions | ||||||||||||||||||||
| Days filled (8) | 57,008 | 55,929 | 59,612 | 235,854 | 229,300 | |||||||||||||||
| Revenue per day filled (9) | $ | 1,821 | $ | 1,775 | $ | 1,821 | $ | 1,799 | $ | 1,679 |
| As of December 31, | As of September 30, | |||||||||||
| 2016 | 2015 | 2016 | ||||||||||
| Leverage ratio (10) | 1.6 | 1.4 | 1.7 |
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
| December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 10,622 | $ | 15,708 | $ | 9,576 | ||||||
| Accounts receivable, net | 341,977 | 331,220 | 277,996 | |||||||||
| Accounts receivable, subcontractor | 49,233 | 42,094 | 50,807 | |||||||||
| Prepaid and other current assets | 48,796 | 44,635 | 37,249 | |||||||||
| Total current assets | 450,628 | 433,657 | 375,628 | |||||||||
| Restricted cash, cash equivalents and investments | 31,287 | 28,222 | 27,352 | |||||||||
| Fixed assets, net | 59,954 | 57,965 | 50,134 | |||||||||
| Other assets | 57,534 | 57,296 | 47,569 | |||||||||
| Goodwill | 341,754 | 342,174 | 204,779 | |||||||||
| Intangible assets, net | 245,724 | 250,455 | 174,970 | |||||||||
| Total assets | $ | 1,186,881 | $ | 1,169,769 | $ | 880,432 | ||||||
| Liabilities and stockholders equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued expenses | $ | 137,512 | $ | 118,289 | $ | 118,822 | ||||||
| Accrued compensation and benefits | 107,993 | 99,629 | 83,701 | |||||||||
| Current portion of revolving credit facility | 30,000 | |||||||||||
| Current portion of notes payable | 3,750 | 3,750 | 7,500 | |||||||||
| Deferred revenue | 8,924 | 8,446 | 5,620 | |||||||||
| Other current liabilities | 16,661 | 9,962 | 5,374 | |||||||||
| Total current liabilities | 274,790 | 240,076 | 251,017 | |||||||||
| Revolving credit facility | 182,500 | 52,500 | ||||||||||
| Notes payable, less unamortized fees | 359,192 | 198,793 | 128,490 | |||||||||
| Deferred income taxes, net | 21,420 | 28,278 | 22,431 | |||||||||
| Other long-term liabilities | 82,096 | 86,949 | 78,134 | |||||||||
| Total liabilities | 737,498 | 736,596 | 532,572 | |||||||||
| Commitments and contingencies | ||||||||||||
| Stockholders equity | 449,383 | 433,173 | 347,860 | |||||||||
| Total liabilities and stockholders equity | $ | 1,186,881 | $ | 1,169,769 | $ | 880,432 |
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, | ||||||||||||||||||
| 2016 | 2015 | 2016 | 2016 | 2015 | ||||||||||||||||
| Net cash provided by operating activities | $ | 47,031 | $ | 676 | $ | 29,540 | $ | 131,851 | $ | 56,313 | ||||||||||
| Net cash used in investing activities | (16,091 | ) | (10,451 | ) | (8,117 | ) | (257,362 | ) | (116,085 | ) | ||||||||||
| Net cash provided by (used in) financing activities | (36,128 | ) | 4,910 | (26,817 | ) | 126,290 | 56,200 | |||||||||||||
| Effect of exchange rates on cash | 102 | 33 | 40 | 267 | 75 | |||||||||||||||
| Net increase (decrease) in cash and cash equivalents | (5,086 | ) | (4,832 | ) | (5,354 | ) | 1,046 | (3,497 | ) | |||||||||||
| Cash and cash equivalents at beginning of period | 15,708 | 14,408 | 21,062 | 9,576 | 13,073 | |||||||||||||||
| Cash and cash equivalents at end of period | $ | 10,622 | $ | 9,576 | $ | 15,708 | $ | 10,622 | $ | 9,576 |
AMN Healthcare Services, Inc.
Additional Supplemental Non-GAAP Disclosures