AMN HEALTHCARE SERVICES, INC. SAN DIEGO, Aug. 4, 2015 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AHS), healthcare's leader and innovator in workforce solutions and staffing services, today announced second quarter 2015 financial results that 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 2015 % Change YTD June 30, % Change YTD
2015 June 30, 2014
Q2 2014
-------
Revenue $350.1 40% $677.7 38%
------- ------ --- ------ ---
Gross
profit $110.1 43% $211.6 40%
------- ------ --- ------ ---
Net
income $15.9 121% $28.1 89%
------- ----- --- ----- ---
Diluted
EPS $0.32 113% $0.58 87%
------- ----- --- ----- ---
Adjusted
diluted
EPS* $0.38 81% $0.69 73%
-------- ----- --- ----- ---
Adjusted
EBITDA* $39.4 69% $72.7 64%
-------- ----- --- ----- ---
* 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.
-- Consolidated revenue increased 40% year-over-year, driven by organic
growth of 24% and the remainder from acquisitions.
-- Gross margin of 31.4% represented an improvement of 60 basis points
year-over-year and 40 basis points from the prior quarter.
-- Adjusted EBITDA margin of 11.2% reflected a 190 basis point
year-over-year improvement, driven primarily by the gross margin
improvement and operating leverage.
-- Adjusted diluted EPS of $0.38 grew 81% year-over-year.
-- AMN Healthcare's differentiated strategy of serving healthcare providers
through a diverse portfolio of innovative workforce solutions and
staffing services continues to drive industry leading performance.
"All business segments are executing very strongly amid continued robust market conditions, which drove better than anticipated revenue and profitability growth in the second quarter," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "Our recently acquired Avantas, Onward Healthcare, Locum Leaders and Medefis companies are also performing very well and the majority of our integration activities have been successfully completed. With the continuing favorable market environment, our outlook remains optimistic as we stay focused on delivering superior service to our clients and healthcare professionals, improving the efficiency of our operations, and developing or acquiring additional innovative workforce solutions and recruitment strategies."
Second Quarter 2015 Results
For the second quarter of 2015, consolidated revenue was $350 million, an increase of 40% from the same quarter last year and 7% sequentially. Second quarter revenue for the Nurse and Allied Healthcare Staffing segment was $240 million, up 45% (27% excluding acquisitions) from the same quarter last year and 5% sequentially. Locum Tenens Staffing segment revenue in the second quarter was $97 million, an increase of 31% (19% excluding acquisitions) from the same quarter last year and up 12% sequentially. Second quarter Physician Permanent Placement Services segment revenue was $13 million, an increase of 19% from the same quarter last year and up 8% sequentially.
Second quarter gross margin of 31.4% was higher by 60 basis points than the same quarter last year and higher by 40 basis points sequentially. The year-over-year gross margin improvement was driven by an increased revenue mix of our higher-margin workforce solutions businesses.
SG&A expenses for the second quarter were $75 million, representing 21.3% of revenue, compared to 22.1% in the same quarter last year and 21.8% in the prior quarter. The year-over-year improvement in SG&A expenses as a percentage of revenue was due primarily to operating leverage and a favorable professional liability actuarial adjustment. The favorable professional liability adjustment in the second quarter was $3.3 million, compared to a favorable adjustment of $1.6 million in the same quarter last year. On a sequential basis, the lower SG&A percentage was driven by the favorable professional liability actuarial adjustment, which more than offset the growth in employee expenses to support the revenue growth.
Second quarter net income was $16 million and net income per diluted share was $0.32. Excluding amortization of intangible assets of $3 million and acquisition and integration costs of $2 million, adjusted net income per diluted share was $0.38. Second quarter adjusted EBITDA was $39.4 million, a year-over-year increase of 69% and sequential increase of 18%. Second quarter adjusted EBITDA margin of 11.2% represented a 190 basis point increase year-over-year and 100 basis point increase sequentially.
At June 30, 2015, cash and cash equivalents totaled $14 million. Second quarter cash flow from operations was $25 million and capital expenditures were $8 million. The Company ended the second quarter with total debt outstanding of $226 million, with a leverage ratio of 1.9 to 1.
Business Trends and Outlook
The Company expects consolidated third quarter 2015 revenue of $360 to $365 million. Gross margin is expected to be 31.0% to 31.5%. SG&A expenses as a percentage of revenue are expected to be approximately 22.0%, which includes integration-related expenses of approximately $0.7 million. Adjusted EBITDA margin is expected to be approximately 10.0% to 10.5%.
About AMN Healthcare
AMN Healthcare is the leader and 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, recruitment process outsourcing and consulting services - 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 most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. 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. AMN Healthcare disseminates news and information about the Company through its website, which can be found at www.amnhealthcare.com.
Conference Call on August 4, 2015
AMN Healthcare Services, Inc.'s second quarter 2015 conference call will be held on Tuesday, August 4, 2015, 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) 288-8974 in the U.S. or (612) 332-0335 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 August 4, 2015, and can be accessed until 11:59 p.m. Eastern Time on August 18, 2015, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 363829.
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, 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 the 2015 outlook and 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, 2014 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,
-------- --------
2015 2014 2015 2015 2014
---- ---- ---- ---- ----
Revenue $350,144 $250,913 $327,510 $677,654 $491,794
Cost of revenue 240,026 173,754 226,078 466,104 340,679
------- ------- ------- ------- -------
Gross profit 110,118 77,159 101,432 211,550 151,115
------- ------ ------- ------- -------
31.4% 30.8% 31.0% 31.2% 30.7%
Operating expenses:
Selling, general and
administrative 74,727 55,567 71,552 146,279 110,234
21.3% 22.1% 21.8% 21.6% 22.4%
Depreciation and
amortization 5,232 4,010 5,095 10,327 7,830
----- ----- ----- ------ -----
Total operating
expenses 79,959 59,577 76,647 156,606 118,064
------ ------ ------ ------- -------
Income from operations 30,159 17,582 24,785 54,944 33,051
Interest expense, net,
and other 1,977 4,629 1,807 3,784 6,475
----- ----- ----- ----- -----
Income before income
taxes 28,182 12,953 22,978 51,160 26,576
Income tax expense 12,312 5,760 10,769 23,081 11,753
------ ----- ------ ------ ------
Net income $15,870 $7,193 $12,209 $28,079 $14,823
======= ====== ======= ======= =======
Other comprehensive income (loss):
Foreign currency
translation (80) (37) 68 (12) (46)
Unrealized gain on cash flow hedge, net of income taxes 0
36 0 36 0
--- --- --- ---
Other comprehensive
income (loss) (44) (37) 68 24 (46)
Comprehensive income $15,826 $7,156 $12,277 $28,103 $14,777
======= ====== ======= ======= =======
Net income per common share:
Basic $0.33 $0.15 $0.26 $0.59 $0.32
===== ===== ===== ===== =====
Diluted $0.32 $0.15 $0.25 $0.58 $0.31
===== ===== ===== ===== =====
Weighted average common shares outstanding:
Basic 47,573 46,479 47,146 47,361 46,416
====== ====== ====== ====== ======
Diluted 48,863 47,836 48,364 48,615 47,876
====== ====== ====== ====== ======
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,
--------- --------- --------
2015 2014 2015 2015 2014
Revenue
Nurse and allied healthcare staffing $240,016 $165,894 $229,046 $469,062 $329,344
Locum tenens staffing 97,388 74,309 86,692 184,080 141,180
Physician permanent placement services 12,740 10,710 11,772 24,512 21,270
$350,144 $250,913 $327,510 $677,654 $491,794
Reconciliation of Non-GAAP Items:
Segment operating income (1)
Nurse and allied healthcare staffing $35,395 $22,032 $31,901 $67,296 $42,004
Locum tenens staffing 11,711 7,818 9,110 20,821 14,691
Physician permanent placement services 3,277 2,187 3,271 6,548 4,318
50,383 32,037 44,282 94,665 61,013
Unallocated corporate overhead 11,006 8,694 10,960 21,966 16,562
------ ----- ------ ------ ------
Adjusted EBITDA (2) 39,377 23,343 33,322 72,699 44,451
Adjusted EBITDA margin (3) 11.2% 9.3% 10.2% 10.7% 9.0%
Depreciation and amortization 5,232 4,010 5,095 10,327 7,830
Share-based compensation 2,153 1,751 2,377 4,530 3,570
Acquisition and integration costs 1,833 0 1,065 2,898 0
Interest expense, net, and other 1,977 4,629 1,807 3,784 6,475
----- ----- ----- ----- -----
Income before income taxes 28,182 12,953 22,978 51,160 26,576
Income tax expense 12,312 5,760 10,769 23,081 11,753
------ ----- ------ ------ ------
Net income $15,870 $7,193 $12,209 $28,079 $14,823
GAAP diluted net income per share (EPS) $0.32 $0.15 $0.25 $0.58 $0.31
Adjustments (net of tax):
Debt extinguishment costs 0.00 0.04 0.00 0.00 0.04
Amortization of intangible assets 0.04 0.02 0.04 0.07 0.05
Acquisition and integration costs 0.02 0.00 0.01 0.04 0.00
Adjusted diluted EPS (4) $0.38 $0.21 $0.30 $0.69 $0.40
Three Months Ended Six Months Ended
------------------ ----------------
June 30,
March 31, June 30,
--------
2015 2014 2015 2015 2014
Gross Margin
Nurse and allied healthcare staffing 30.7% 29.1% 29.8% 30.2% 29.0%
Locum tenens staffing 29.2% 29.8% 29.4% 29.3% 29.8%
Physician permanent placement services 63.1% 63.5% 65.7% 64.4% 63.3%
Operating Data:
---------------
Nurse and allied healthcare staffing
Average healthcare professionals on assignment (5) 7,227 5,565 7,223 7,225 5,599
Locum tenens staffing
Days filled (6) 59,844 49,049 54,260 114,104 93,798
As of June 30, As of March 31,
-------------- ---------------
2015 2014 2015
Leverage ratio (7) 1.9 1.9 2.2
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
June 30, March 31, December 31,
2015 2015 2014
---- ---- ----
Assets
Current assets:
Cash and cash equivalents $14,474 $11,633 $13,073
Accounts receivable, net 229,999 221,001 186,274
Accounts receivable,
subcontractor 36,909 34,191 28,443
Deferred income taxes,
net 27,362 26,466 27,330
Prepaid and other current
assets 34,624 29,065 27,550
------ ------ ------
Total current assets 343,368 322,356 282,670
Restricted cash, cash
equivalents and
investments 21,698 19,772 19,567
Fixed assets, net 41,621 36,674 32,880
Other assets 45,210 44,117 39,895
Goodwill 197,325 197,254 154,387
Intangible assets, net 176,930 179,877 152,517
------- ------- -------
Total assets $826,152 $800,050 $681,916
======== ======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and
accrued expenses $101,578 $92,081 $78,993
Accrued compensation and
benefits 76,581 72,237 67,995
Current portion of
revolving credit
facility 30,000 30,000 18,000
Current portion of notes
payable 7,500 7,500 7,500
Deferred revenue 5,505 3,137 3,177
Other current liabilities 10,466 2,662 2,630
------ ----- -----
Total current liabilities 231,630 207,617 178,295
Revolving credit facility 55,500 65,500 0
Notes payable 133,125 135,000 136,875
Deferred income taxes,
net 37,221 37,198 32,491
Other long-term
liabilities 80,638 83,972 77,674
------ ------ ------
Total liabilities 538,114 529,287 425,335
Commitments and contingencies
Stockholders' equity 288,038 270,763 256,581
------- ------- -------
Total liabilities and
stockholders' equity $826,152 $800,050 $681,916
======== ======== ========
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,
-------- --------
2015 2014 (8) 2015 2015 2014 (8)
---- ------- ---- ---- -------
Net cash
provided by
operating
activities $25,000 $6,177 $8,687 $33,687 $7,041
Net cash used
in investing
activities (9,516) (1,100) (85,350) (94,866) (5,809)
Net cash
provided by
(used in)
financing
activities (12,563) (8,808) 75,155 62,592 (11,265)
Effect of
exchange
rates on cash (80) (37) 68 (12) (46)
--- --- --- --- ---
Net increase
(decrease) in
cash and cash
equivalents 2,841 (3,768) (1,440) 1,401 (10,079)
Cash and cash
equivalents
at beginning
of period 11,633 9,269 13,073 13,073 15,580
------ ----- ------ ------ ------
Cash and cash
equivalents
at end of
period $14,474 $5,501 $11,633 $14,474 $5,501
======= ====== ======= ======= ======
(1) 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.
(2) 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.
(3) Adjusted EBITDA margin represents adjusted
EBITDA divided by revenue.
(4) Adjusted diluted EPS represents GAAP diluted
EPS excluding the impact of 1) amortization of
intangible assets; 2) acquisition and
integration costs; and 3) other non-recurring
costs, such as debt extinguishment costs, in
each case, net of tax. Adjusted diluted EPS
for the three and six months ended June 30,
2014 have been restated to conform to the
current year presentation. 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 perspective
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). 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.
(5) Average healthcare professionals 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 (as calculated per the
Company's credit agreement) for the last
twelve months.
(8) Certain reclassifications have been made to the
condensed consolidated statements of cash
flows for the three and six months ended June
30, 2014 to conform to the current year
presentation.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/amn-healthcare-announces-second-quarter-2015-results-300123603.html
SOURCE AMN Healthcare Services, Inc.
