SAN DIEGO, July 31, 2014 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AHS), healthcare's innovator in workforce solutions and staffing services, today announced second quarter 2014 financial results exceeded the Company's guidance for revenue and adjusted EBITDA. Second quarter financial highlights are as follows:

Dollars in millions, except per share amounts.



              Q2 2014        % Change       YTD June 30, 2014         % Change YTD June 30,
                                                                               2013

                              Q2 2013
                              -------

    Revenue           $250.9           (1%)                   $491.8                      (3%)
    -------           ------            ---                    ------                       ---

     Gross
     profit            $77.2             4%                   $151.1                        3%
     ------            -----            ---                    ------                       ---

     Net
     income             $7.2          (14%)                    $14.8                      (7%)
     ------             ----           ----                     -----                       ---

     Diluted
     EPS               $0.15          (17%)                    $0.31                      (6%)
     -------           -----           ----                     -----                       ---

     Adjusted
     Diluted
     EPS*              $0.19             6%                    $0.35                        3%
     --------          -----            ---                     -----                       ---

     Adjusted
     EBITDA*           $23.3             9%                    $44.5                        5%
     --------          -----            ---                     -----                       ---

* 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.


    --  Second quarter consolidated revenue exceeded expectations due primarily
        to strong performance in the Nurse and Allied Healthcare Staffing
        segment driven by improving market trends and execution.
    --  The quarterly sequential revenue growth of 4% was driven by 11% growth
        in the Locum Tenens segment and 1% growth in the Nurse and Allied
        Healthcare Staffing segment.
    --  Gross margin of 30.8% for the second quarter represented a record high
        and year-over-year improvement of 150 basis points.
    --  Second quarter adjusted EBITDA margin of 9.3% improved 90 basis points
        over prior year.
    --  In April, the Company refinanced its then-existing credit facilities
        with a new credit agreement and initial rate reduction of approximately
        175 basis points.

"Market trends strengthened across all of our segments as we progressed through the second quarter, contributing to a stronger than expected performance and a brighter outlook for the remainder of the year. The improved market dynamics coupled with the solid execution of our team delivered sequential increases in revenue, gross margin, adjusted EBITDA margin, and adjusted EPS. It is clear that our leadership position in providing MSP, VMS, and other workforce solutions continues to enable AMN to deliver differentiated value to our clients," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "We also continue to make progress in our long-term strategic initiatives, such as expansion of our workforce solution offerings and investments in our recruitment and infrastructure technologies, to deliver a best-in-class, differentiated client and clinician experience."

Second Quarter 2014 Results

For the second quarter of 2014 consolidated revenue was $251 million, a decrease of 1% from the same quarter last year and an increase of 4% sequentially. Second quarter revenue for the Nurse and Allied Healthcare Staffing segment was $166 million, down 2% from the same quarter last year and up 1% sequentially. Locum Tenens Staffing segment revenue in the second quarter was $74 million, an increase of 2% from the same quarter last year and 11% sequentially. Second quarter Physician Permanent Placement Services segment revenue was $11 million, a decrease of 3% from the same quarter last year and an increase of 1% sequentially.

Second quarter gross margin of 30.8% was 150 basis points higher than the same quarter last year and 10 basis points higher sequentially. The year-over-year increase was due to gross margin improvement across all business segments, as well as the addition of the higher-margin ShiftWise business.

SG&A expenses for the second quarter were $56 million, representing 22.1% of revenue, compared to $55 million in both the same quarter last year and the prior quarter. The year-over-year increase in SG&A expenses was due primarily to the additional SG&A expenses from the ShiftWise business.

Second quarter net income was $7 million and net income per diluted share was $0.15. Excluding non-cash charges to interest expense associated with execution of a new credit agreement, adjusted net income per diluted share was $0.19. Second quarter adjusted EBITDA was $23 million, compared to $21 million in both the same quarter last year and the prior quarter. Adjusted EBITDA margin of 9.3% reflected a 90 basis point increase over prior year and was driven by the improvement in gross margin. The 50 basis point sequential improvement was due mainly to a favorable professional liability adjustment.

At June 30, 2014, cash and cash equivalents totaled $6 million. Second quarter cash flow provided by operations was $6.2 million and capital expenditures were $4 million. The Company ended the quarter with total debt outstanding of $155 million, with a leverage ratio of 1.9 to 1.

Business Trends and Outlook

The Company expects consolidated third quarter 2014 revenue of $254 million to $258 million, with sequential growth expected in all business segments. Gross margin is expected to be approximately 30.5%. SG&A expenses as a percentage of revenue are expected to be between 22.5% and 23.0%. Adjusted EBITDA margin is expected to be approximately 8.5%.

About AMN Healthcare

AMN Healthcare is the innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. AMN Healthcare's workforce solutions - including managed services programs, vendor management systems, and recruitment process outsourcing - enable providers to successfully reduce complexity, increase efficiency and improve patient outcomes within the rapidly evolving healthcare environment. The Company provides unparalleled access to the largest network of quality clinicians and physicians through its innovative recruitment strategies and breadth of career opportunities. Clients include acute-care hospitals, government facilities, community health centers and clinics, physician practice groups and many other healthcare settings. AMN Healthcare disseminates news and information about the Company through its website, which can be found at www.amnhealthcare.com.

Conference Call on July 31, 2014

AMN Healthcare Services, Inc.'s second quarter 2014 conference call will be held on Thursday, July 31, 2014, 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) 234-9959 internationally. Following the conclusion of the call, a replay of the webcast will be available at the Company's website. A telephonic replay of the call will be available at 7:30 p.m. Eastern Time on July 31, 2014, and can be accessed until 11:59 p.m. Eastern Time on August 14, 2014, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 330576.

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 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 and adjusted EBITDA margin serve as industry-wide financial measures, and it 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 2014 third quarter 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, 2013 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.

Contact:
Amy C. Chang
Vice President, 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                             Six Months Ended
                                                              ------------------

                                                             June 30,                               March 31,                         June 30,
                                                             --------                               ---------                         --------

                                                             2014              2013                       2014                     2014             2013
                                                             ----              ----                       ----                     ----             ----

    Revenue                                              $250,913          $253,943                   $240,881                 $491,794         $506,063

    Cost of revenue                                       173,754           179,530                    166,925                  340,679          358,643
                                                          -------           -------                    -------                  -------          -------

    Gross profit                                           77,159            74,413                     73,956                  151,115          147,420
                                                           ------            ------                     ------                  -------          -------

                                                            30.8%            29.3%                     30.7%                   30.7%           29.1%

    Operating expenses:

    Selling, general and
     administrative                                        55,567            54,551                     54,667                  110,234          108,158

                                                            22.1%            21.5%                     22.7%                   22.4%           21.4%

    Depreciation and
     amortization                                           4,010             3,240                      3,820                    7,830            6,530
                                                            -----             -----                      -----                    -----            -----

    Total operating expenses                               59,577            57,791                     58,487                  118,064          114,688
                                                           ------            ------                     ------                  -------          -------

    Income from operations                                 17,582            16,622                     15,469                   33,051           32,732


    Interest expense, net and
     other                                                  4,629             3,130                      1,846                    6,475            5,989
                                                            -----             -----                      -----                    -----            -----



    Income before income taxes                             12,953            13,492                     13,623                   26,576           26,743



    Income tax expense                                      5,760             5,093                      5,993                   11,753           10,781
                                                            -----             -----                      -----                   ------           ------

    Net income                                             $7,193            $8,399                     $7,630                  $14,823          $15,962
                                                           ======            ======                     ======                  =======          =======


    Other comprehensive income
     (loss)                                                  (37)             (28)                       (9)                    (46)              65
                                                              ---               ---                        ---                      ---              ---



    Comprehensive income                                   $7,156            $8,371                     $7,621                  $14,777          $16,027
                                                           ======            ======                     ======                  =======          =======

    Net income per common share:



    Basic                                                   $0.15             $0.18                      $0.16                    $0.32            $0.35
                                                            =====             =====                      =====                    =====            =====

    Diluted                                                 $0.15             $0.18                      $0.16                    $0.31            $0.33
                                                            =====             =====                      =====                    =====            =====


    Weighted average common shares outstanding:

    Basic                                                  46,479            46,039                     46,354                   46,416           45,927
                                                           ======            ======                     ======                   ======           ======

    Diluted                                                47,836            47,837                     47,917                   47,876           47,759
                                                           ======            ======                     ======                   ======           ======






                                                          AMN Healthcare Services, Inc.

                                                    Supplemental Financial and Operating Data

                                                  (dollars in thousands, except per share data)

                                                                   (unaudited)


                                                                       Three Months Ended                            Six Months Ended
                                                                        ------------------                         ----------------

                                                              June 30,                             March 31,               June 30,
                                                              --------                             ---------               --------

                                                                          2014                              2013                         2014                      2014        2013

    Revenue

      Nurse and allied healthcare staffing                              $165,894                          $170,138                     $163,450                  $329,344    $346,903

      Locum tenens staffing                                             74,309                            72,708                       66,871                   141,180     138,164

      Physician permanent placement services                            10,710                            11,097                       10,560                    21,270      20,996

                                                                        $250,913                          $253,943                     $240,881                  $491,794    $506,063
                                                                        ========                          ========                     ========                  ========    ========


    Reconciliation of Non-GAAP Items:


    Segment operating income(1)

      Nurse and allied healthcare staffing                               $22,032                           $20,128                      $19,972                   $42,004     $42,602

      Locum tenens staffing                                              7,818                             4,908                        6,873                    14,691       9,800

      Physician permanent placement services                             2,187                             2,289                        2,131                     4,318       4,530

                                                                        32,037                            27,325                       28,976                    61,013      56,932

       Unallocated corporate overhead                                    8,694                             5,985                        7,868                    16,562      14,490
                                                                         -----                             -----                        -----                    ------      ------

    Adjusted EBITDA(2)                                                  23,343                            21,340                       21,108                    44,451      42,442

    Adjusted EBITDA margin(3)                                             9.3%                             8.4%                        8.8%                     9.0%       8.4%


    Depreciation and amortization                                        4,010                             3,240                        3,820                     7,830       6,530

    Share-based compensation                                             1,751                             1,478                        1,819                     3,570       3,180

    Interest expense, net and other                                      4,629                             3,130                        1,846                     6,475       5,989
                                                                         -----                             -----                        -----                     -----       -----

    Income before income taxes                                          12,953                            13,492                       13,623                    26,576      26,743

    Income tax expense                                                   5,760                             5,093                        5,993                    11,753      10,781
                                                                         -----                             -----                        -----                    ------      ------

    Net income                                                            $7,193                            $8,399                       $7,630                   $14,823     $15,962
                                                                          ======                            ======                       ======                   =======     =======



    GAAP based diluted net income per share (EPS)                          $0.15                             $0.18                        $0.16                     $0.31       $0.33

       Adjustments:

       Loss on debt extinguishment                                        0.04                              0.00                         0.00                      0.04        0.01

    Adjusted diluted EPS (4)                                               $0.19                             $0.18                        $0.16                     $0.35       $0.34
                                                                           =====                             =====                        =====                     =====       =====



                                                                                     Three Months Ended

                                                                                                                                            Six Months Ended
                                                                                                                                            ----------------

                                                                           June 30,                                                                          June 30,

                                                                                                                         March 31,
                                                                                                                         ---------

                                                                          2014                              2013                         2014                      2014        2013

    Gross Margin

       Nurse and allied healthcare staffing                              29.1%                            27.2%                       29.0%                    29.0%      27.4%

       Locum tenens staffing                                             29.8%                            29.0%                       29.9%                    29.8%      28.5%

       Physician permanent placement services                            63.5%                            62.7%                       63.0%                    63.3%      62.6%


    Operating Data:
    ---------------

    Nurse and allied healthcare staffing

        Average clinicians on assignment (5)                             5,565                             5,924                        5,633                     5,599       6,070

    Locum tenens  staffing

        Days filled (6)                                                 49,049                            50,127                       44,749                    93,798      95,484



                                                      As of June 30                               As of March 31,
                                                      -------------                               ---------------

                                                               2014                         2013                                2014

    Leverage ratio (7)                                          1.9                          2.1                                 2.0


                                                    AMN Healthcare Services, Inc.

                                                Condensed Consolidated Balance Sheets

                                                       (dollars in thousands)

                                                             (unaudited)


                                         June 30,                                     March 31,          December 31,

                                                         2014                                   2014 (8)              2013 (8)
                                                         ----                                    -------               -------

    Assets

    Current assets:

    Cash and cash equivalents                          $5,501                                     $9,269                $15,580

    Accounts receivable, net                          151,505                                    150,840                147,477

    Accounts receivable,
     subcontractor                                     22,512                                     18,680                 18,271

    Deferred income taxes,
     net                                               27,983                                     24,867                 24,938

    Prepaid and other current
     assets                                            27,662                                     27,616                 26,631
                                                       ------                                     ------                 ------

    Total current assets                              235,163                                    231,272                232,897

    Restricted cash, cash
     equivalents and
     investments                                       20,606                                     21,641                 23,115

    Fixed assets, net                                  27,066                                     24,400                 21,158

    Deposits and other assets                          37,502                                     35,922                 32,279

    Goodwill                                          144,937                                    144,937                144,642

    Intangible assets, net                            146,418                                    148,317                150,197
                                                      -------                                    -------                -------


    Total assets                                     $611,692                                   $606,489               $604,288
                                                     ========                                   ========               ========


    Liabilities and stockholders' equity

    Current liabilities:

    Accounts payable and
     accrued expenses                                 $65,130                                    $64,358                $71,081

    Accrued compensation and
     benefits                                          56,046                                     56,958                 55,949

    Revolving credit facility                           6,500                                     10,000                 10,000

    Current portion of notes
     payable                                            7,500                                      7,500                      0

    Other current liabilities                           4,097                                      5,212                  6,060
                                                        -----                                      -----                  -----

    Total current liabilities                         139,273                                    144,028                143,090


    Notes payable, less
     current portion and
     discount                                         140,625                                    141,227                148,672

    Other long-term
     liabilities                                       98,188                                     96,353                 94,784
                                                       ------                                     ------                 ------

    Total liabilities                                 378,086                                    381,608                386,546


    Commitments and contingencies


    Stockholders' equity                              233,606                                    224,881                217,742
                                                      -------                                    -------                -------


    Total liabilities and
     stockholders' equity                            $611,692                                   $606,489               $604,288
                                                     ========                                   ========               ========


                                                  AMN Healthcare Services, Inc.

                                     Summary Condensed Consolidated Statements of Cash Flows

                                                      (dollars in thousands)

                                                           (unaudited)


                   Three Months Ended                                        Six Months Ended
                   ------------------                                      ----------------

                        June 30,                                                    March 31                   June 30,
                        --------                                                                               --------

                                 2014                          2013 (8)                      2014        2014             2013 (8)
                                 ----                           -------                      ----        ----              -------


    Net cash
     provided by
     operating
     activities                $6,159                           $19,475                       $991      $7,150              $17,257


    Net cash used
     in investing
     activities               (1,100)                          (3,396)                   (4,709)    (5,809)             (6,032)


    Net cash used
     in financing
     activities               (8,790)                          (7,471)                   (2,584)   (11,374)             (6,452)


    Effect of
     exchange
     rates on cash               (37)                             (28)                       (9)       (46)                  65
                                  ---                               ---                        ---         ---                  ---


    Net increase
     (decrease) in
     cash and cash
     equivalents              (3,768)                            8,580                    (6,311)   (10,079)               4,838


    Cash and cash
     equivalents
     at beginning
     of period                  9,269                             1,939                     15,580      15,580                5,681
                                -----                             -----                     ------      ------                -----


    Cash and cash
     equivalents
     at end of
     period                    $5,501                           $10,519                     $9,269      $5,501              $10,519
                               ======                           =======                     ======      ======              =======



    (1)              Segment operating income represents net
                     income plus interest expense (net of
                     interest income) and other, income
                     taxes, depreciation and amortization,
                     unallocated corporate overhead and
                     share-based compensation expense.

    (2)              Adjusted EBITDA represents net income
                     plus interest expense (net of interest
                     income) and other, income taxes,
                     depreciation and amortization and
                     share-based compensation expense.
                     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
                     considers measures 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.

    (3)              Adjusted EBITDA margin represents
                     adjusted EBITDA divided by revenue.

    (4)              Adjusted EPS represents GAAP EPS
                     excluding the impact of loss on debt
                     extinguishment of $3,113 and $434 for
                     both the three and six months ended
                     June 30, 2014 and 2013, respectively.
                     Management believes such a measure
                     provides a picture of the Company's
                     results that is more comparable among
                     periods since it excludes the impact
                     of items that may recur occasionally,
                     but tend to be irregular as to timing,
                     thereby distorting comparisons between
                     periods. However, 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 EPS). Although
                     management believes the item excluded
                     from adjusted EPS is not indicative of
                     the Company's operating performance,
                     this items does impact the statement
                     of comprehensive income, and
                     management therefore utilizes adjusted
                     EPS as an operating performance
                     measure in conjunction with GAAP
                     measures such as GAAP EPS.

    (5)              Average clinicians on assignment
                     represents the average number of nurse
                     and allied healthcare professionals on
                     assignment during the period
                     presented.

    (6)              Days filled is calculated by dividing
                     the locum tenens hours filled during
                     the period by eight hours.

    (7)              Leverage ratio represents the ratio of
                     the consolidated funded indebtedness
                     (as calculated per the Company's
                     credit agreement) at the end of the
                     period to the consolidated adjusted
                     EBITDA for the last twelve months.

    (8)              Certain reclassifications have been
                     made to the prior periods'
                     consolidated financial statements to
                     conform to the current year
                     presentation.

SOURCE AMN Healthcare Services, Inc.