SAN DIEGO, May 5, 2016 /PRNewswire/ -- 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
- Strong organic growth was the majority driver of the 43%
year-over-year revenue increase.
- Solid demand and performance metrics continued throughout the
quarter.
- Integration of recent acquisitions is progressing ahead of
expectations.
- Adjusted EBITDA margin of 12.5% reflected a 230 basis point
increase year-over-year, driven by both gross margin improvement
and operating leverage.
- Adjusted diluted EPS of $0.60
grew 100% year-over-year.
- Cash flow from operations was $35
million, driven by strong profitability and a reduction in
days sales outstanding.
"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.
At March 31, 2016, 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 starting at 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 settings.
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.
Non-GAAP Measures
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 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.
Contact:
David
Erdman
Director, Investor Relations
866.861.3229
|
AMN Healthcare
Services, Inc.
|
|
Condensed
Consolidated Statements of Comprehensive Income
|
|
(in thousands,
except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
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)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
(unaudited)
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2016
|
|
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.
|
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Summary Condensed
Consolidated Statements of Cash Flows
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(dollars in
thousands)
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(unaudited)
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Three Months
Ended
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March 31,
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December,
31
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2016
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2015
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2015
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Net cash provided by
operating activities
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$ 35,227
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$ 8,687
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$
676
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Net cash used in
investing activities
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(174,703)
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(85,350)
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(10,451)
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Net cash provided by
financing activities
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152,967
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75,155
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4,910
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Effect of exchange
rates on cash
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39
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68
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33
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Net increase
(decrease) in cash and cash equivalents
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13,530
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(1,440)
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(4,832)
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Cash and cash
equivalents at beginning of period
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9,576
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13,073
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14,408
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Cash and cash
equivalents at end of period
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$
23,106
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$
11,633
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$
9,576
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(1)
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Effective as of
January 1, 2016, we modified our reportable segments. We previously
utilized three reportable segments, which we identified as follows:
(a) nurse and allied healthcare staffing, (b) locum tenens
staffing, and (c) physician permanent placement services. In light
of our acquisitions over the past several years as well as our
transition to a healthcare workforce solutions company, our
management renamed our three reportable segments and also placed
several of our business lines that were in our nurse and allied
healthcare staffing segment into a different segment to better
reflect how the business is evaluated by our chief operating
decision maker. As of January 1, 2016, we began to disclose the
following three reportable segments: (a) nurse and allied
solutions, (b) locum tenens solutions, and (c) other workforce
solutions. The nurse and allied solutions segment includes our
travel nurse, allied and local staffing businesses. The locum
tenens solutions segment includes our locum tenens staffing
business. The other workforce solutions segment includes our
healthcare interim leadership staffing and executive search
services business, physician permanent placement services business,
recruitment process outsourcing business, vendor management systems
business, workforce optimization services business, and education
business. Prior period data has been reclassified to conform to the
new segment reporting structure.
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(2)
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Segment operating
income represents net income plus interest expense (net of interest
income) and other, income tax expense, depreciation and
amortization, unallocated corporate overhead, acquisition and
integration costs and share-based compensation.
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(3)
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Adjusted EBITDA
represents net income plus interest expense (net of interest
income) and other, income tax expense, depreciation and
amortization, acquisition and integration costs and share-based
compensation. Management believes that adjusted EBITDA provides an
effective measure of the Company's results, as it excludes certain
items that management believes are not indicative of the Company's
operating performance and is a measure used in credit facilities.
Adjusted EBITDA is not intended to represent cash flows for the
period, nor has it been presented as an alternative to income from
operations or net income as an indicator of operating performance.
Although management believes that some of the items excluded from
adjusted EBITDA are not indicative of the Company's operating
performance, these items do impact the statement of comprehensive
income, and management therefore utilizes adjusted EBITDA as an
operating performance measure in conjunction with GAAP measures
such as net income.
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(4)
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Adjusted EBITDA
margin represents adjusted EBITDA divided by revenue.
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(5)
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Adjusted diluted EPS
represents GAAP diluted EPS excluding the impact of 1) amortization
of intangible assets and 2) acquisition and integration costs.
Management included this non-GAAP measure to provide investors and
prospective investors with an alternative method for assessing the
Company's operating results in a manner that is focused on its
operating performance and to provide a more consistent basis for
comparison between periods. However, investors and prospective
investors should note that this non-GAAP measure involves judgment
by management (in particular, judgment as to what is classified as
a special item to be excluded from 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.
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(6)
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Average healthcare
professionals on assignment represents the average number of nurse
and allied healthcare professionals on assignment during the period
presented.
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(7)
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Revenue per
healthcare professional per day represents the revenue of the
Company's nurse and allied solutions segment divided by average
healthcare professionals on assignment, divided by the number of
days in the period presented.
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(8)
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Days filled is
calculated by dividing the locum tenens hours filled during the
period by eight hours.
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(9)
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Revenue per day
filled represents revenue of the Company's locum tenens solutions
segment divided by days filled for the period presented.
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(10)
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Leverage ratio
represents the ratio of the consolidated funded indebtedness (as
calculated per the Company's credit agreement) at the end of the
subject period to the consolidated adjusted EBITDA (as calculated
per the Company's credit agreement) for the twelve month period
ending at the end of the subject period.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/amn-healthcare-announces-first-quarter-2016-results-300264050.html
SOURCE AMN Healthcare Services, Inc.