AMN HEALTHCARE SERVICES, INC. SAN DIEGO, Aug. 4, 2016 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AHS), healthcare's leader and innovator in workforce solutions and staffing services, today announced its second-quarter 2016 financial results, which exceeded the Company's guidance. Financial highlights are as follows:
Dollars in millions, except per share amounts.
Q2 2016 % Change YTD June 30, % change
2016 YTD June 30,
Q2 2015 2015
------- ----
Revenue $473.7 35% $941.7 39%
------- ------ --- ------ ---
Gross
profit $154.8 41% $306.7 45%
------ ------ --- ------ ---
Net
income $26.3 66% $52.2 86%
------- ----- --- ----- ---
Diluted
EPS $0.53 66% $1.06 83%
------- ----- --- ----- ---
Adjusted
diluted
EPS* $0.61 61% $1.20 74%
-------- ----- --- ----- ---
Adjusted
EBITDA* $59.3 50% $117.9 62%
-------- ----- --- ------ ---
* 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 2016 Highlights
-- Revenue grew 35% year-over-year driven by 19% organic growth and the
remainder from acquisitions.
-- Solid demand and operating metrics continued throughout the quarter,
with the strongest growth in the Nurse and Allied Solutions segment.
-- Net income of $26.3 million was 66% higher year-over-year and adjusted
EBITDA margin was 12.5%, reflecting a 130 basis point increase
year-over-year, driven by gross margin expansion.
-- Diluted EPS of $0.53 grew 66% and adjusted diluted EPS of $0.61 grew 61%
year-over-year.
-- The acquisition of Peak Health Solutions, completed in June 2016,
expands AMN's service offerings into medical coding and consulting.
"The AMN Healthcare team delivered another record quarter of revenue and earnings due to a strong market environment and tremendous execution to address our client's critical and evolving workforce needs. In addition to the strong demand for staffing and placement services, we continue to increase the penetration of our workforce solutions, in particular MSP, VMS and workforce optimization services," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "The desire to build strategic partnerships and rising level of sophistication within healthcare creates great opportunity for AMN to partner with our clients to deliver cost effective, quality patient care."
Second-Quarter 2016 Results
Consolidated revenue was $474 million, an increase of 35% from the same quarter last year, driven by 19% organic growth; revenue increased 1% sequentially. Revenue for the Nurse and Allied Solutions segment was $293 million, an increase of 29% from the same quarter last year and down 2% sequentially. Locum Tenens Solutions revenue was $109 million, an increase of 12% from the same quarter last year and 6% sequentially. Other Workforce Solutions segment revenue was $72 million, an increase of 174% from the same quarter last year and 7% sequentially. The Other Workforce Solutions segment revenue grew 32% organically from the prior year with the remainder from recent acquisitions.
Gross margin was 32.7%, which is 130 basis points higher than the same quarter last year and 20 basis points higher sequentially. The year-over-year gross margin improvement continues to be primarily driven by growth in the higher-margin Other Workforce Solutions segment, along with a gross margin increase in the Locum Tenens Solution segment.
SG&A expenses were $100 million, or 21.0% of revenue, compared to $75 million, or 21.3% of revenue, in the same quarter last year and $98 million, or 20.9% of revenue, in the previous quarter. The 30 basis point decline in percentage of revenue year-over-year 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, net of tax, adjusted net income per diluted share was $0.61. Adjusted EBITDA was $59 million, a year-over-year increase of 50%. Adjusted EBITDA margin was 12.5%, representing a 130 basis point increase year-over-year and flat sequentially.
At June 30, 2016, cash and cash equivalents totaled $21 million. Cash flow from operations was $20 million and capital expenditures were $6 million. The Company ended the quarter with total debt outstanding of $413 million, with a leverage ratio as calculated in accordance with our credit agreement of 1.9 to 1.
Third-Quarter 2016 Outlook
Metric Guidance*
------ --------
Consolidated revenue $466 - $472 MM
-------------------- --------------
Gross margin 32.5% - 33.0%
------------ ------------
SG&A as percentage of revenue 21.5%
----------------------------- ----
Adjusted EBITDA margin 11.5% - 12.0%
---------------------- ------------
*Note: Guidance percentage metrics
are approximate. For a
reconciliation of Adjusted EBITDA
margin, see the table entitled
"Reconciliation of Guidance
Adjusted EBITDA Margin to Guidance
Operating Margin" below.
The Company's revenue guidance is based on the expectation of a continued strong demand environment, representing year-over-year growth of approximately 22%.
Conference Call on August 4, 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 second-quarter 2016 financial results on Thursday, August 4, 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) 230-1059 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 August 4, 2016, and can be accessed until 11:59 p.m. Eastern Time on August 18, 2016 by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 397211.
About AMN Healthcare
AMN Healthcare is the leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. The Company provides unparalleled access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights and expertise, AMN Healthcare helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN delivers managed services programs, healthcare executive search solutions, vendor management systems, recruitment process outsourcing, predictive modeling, medical coding and consulting, and other services. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities and many other healthcare settings.
The Company's common stock is listed on the New York Stock Exchange under the symbol "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," the table entitled, "Reconciliation of Guidance Adjusted EBITDA Margin to Guidance Operating Margin," 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, third-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 Six Months Ended
------------------ ----------------
June 30, March 31, June 30,
-------- --------
2016 2015 2016 2016 2015
---- ---- ---- ---- ----
Revenue $473,729 $350,144 $468,002 $941,731 $677,654
Cost of revenue 318,976 240,026 316,104 635,080 466,104
------- ------- ------- ------- -------
Gross profit 154,753 110,118 151,898 306,651 211,550
------- ------- ------- ------- -------
Gross margin 32.7% 31.4% 32.5% 32.6% 31.2%
Operating expenses:
Selling, general and
administrative (SG&A) 99,541 74,727 97,823 197,364 146,279
SG&A as a % of revenue 21.0% 21.3% 20.9% 21.0% 21.6%
Depreciation and
amortization 7,334 5,232 6,765 14,099 10,327
----- ----- ----- ------ ------
Total operating
expenses 106,875 79,959 104,588 211,463 156,606
------- ------ ------- ------- -------
Income from operations 47,878 30,159 47,310 95,188 54,944
Operating margin (1) 10.2% 8.6% 10.2% 10.1% 8.1%
Interest expense, net,
and other 2,800 1,977 3,249 6,049 3,784
----- ----- ----- ----- -----
Income before income
taxes 45,078 28,182 44,061 89,139 51,160
Income tax expense 18,756 12,312 18,192 36,948 23,081
------ ------ ------ ------ ------
Net income $26,322 $15,870 $25,869 $52,191 $28,079
------- ------- ------- ------- -------
Net income as a % of
revenue 5.6% 4.5% 5.6% 5.6% 4.1%
Other comprehensive income (loss):
Foreign currency
translation 86 (80) 39 125 (12)
Unrealized gain (loss)
on cash flow hedge,
net of income taxes (111) 36 (463) (574) 36
---- --- ---- ---- ---
Other comprehensive
income (loss) (25) (44) (424) (449) 24
Comprehensive income $26,297 $15,826 $25,445 $51,742 $28,103
------- ------- ------- ------- -------
Net income per common share:
Basic $0.55 $0.33 $0.54 $1.09 $0.59
----- ----- ----- ----- -----
Diluted $0.53 $0.32 $0.53 $1.06 $0.58
----- ----- ----- ----- -----
Weighted average common shares outstanding:
Basic 48,034 47,573 47,894 47,964 47,361
------ ------ ------ ------ ------
Diluted 49,348 48,863 49,103 49,225 48,615
------ ------ ------ ------ ------
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,
--------- --------- --------
2016 2015 (2) 2016 2016 2015 (2)
Revenue
Nurse and allied solutions $292,663 $226,494 $297,724 $590,387 $443,486
Locum tenens solutions 109,129 97,388 102,738 211,867 184,080
Other workforce solutions 71,937 26,262 67,540 139,477 50,088
$473,729 $350,144 $468,002 $941,731 $677,654
Reconciliation of Non-GAAP Items:
Segment operating income (3)
Nurse and allied solutions $39,503 $31,159 $41,618 $81,121 $58,521
Locum tenens solutions 16,317 11,711 13,291 29,608 20,821
Other workforce solutions 17,858 7,513 17,586 35,444 15,323
73,678 50,383 72,495 146,173 94,665
Unallocated corporate overhead 14,420 11,006 13,805 28,225 21,966
------ ------ ------ ------ ------
Adjusted EBITDA (4) 59,258 39,377 58,690 117,948 72,699
Adjusted EBITDA margin (5) 12.5% 11.2% 12.5% 12.5% 10.7%
Depreciation and amortization 7,334 5,232 6,765 14,099 10,327
Share-based compensation 2,710 2,153 3,381 6,091 4,530
Acquisition and integration costs 1,336 1,833 1,234 2,570 2,898
----- ----- ----- ----- -----
Income from operations 47,878 30,159 47,310 95,188 54,944
Interest expense, net, and other 2,800 1,977 3,249 6,049 3,784
----- ----- ----- ----- -----
Income before income taxes 45,078 28,182 44,061 89,139 51,160
Income tax expense 18,756 12,312 18,192 36,948 23,081
------ ------ ------ ------ ------
Net income $26,322 $15,870 $25,869 $52,191 $28,079
GAAP diluted net income per share (EPS) $0.53 $0.32 $0.53 $1.06 $0.58
Adjustments:
Amortization of intangible assets 0.09 0.06 0.09 0.18 0.12
Acquisition and integration costs 0.03 0.04 0.03 0.05 0.06
Tax effect of adjustments (0.04) (0.04) (0.05) (0.09) (0.07)
Adjusted diluted EPS (6) $0.61 $0.38 $0.60 $1.20 $0.69
Three Months Ended Six Months Ended
------------------ ----------------
June 30, March 31, June 30,
-------- --------- --------
2016 2015 2016 2016 2015
Gross Margin
Nurse and allied solutions 26.7% 27.2% 26.6% 26.7% 26.9%
Locum tenens solutions 31.3% 29.2% 31.0% 31.1% 29.3%
Other workforce solutions 58.9% 76.0% 60.3% 59.6% 76.3%
Operating Data:
---------------
Nurse and allied solutions
Average healthcare professionals on assignment (7) 8,337 7,227 8,474 8,406 7,225
Revenue per healthcare professional per day (8) $386 $344 $386 $386 $339
Locum tenens solutions
Days filled (9) 61,068 59,844 58,166 119,234 114,104
Revenue per day filled (10) $1,787 $1,627 $1,766 $1,777 $1,613
As of June 30, As of March 31,
-------------- ---------------
2016 2015 2016
Leverage ratio (11) 1.9 1.9 1.9
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
June 30, March 31, December 31,
2016 2016 2015
---- ---- ----
Assets
Current assets:
Cash and cash equivalents $21,062 $23,106 $9,576
Accounts receivable, net 330,853 302,342 277,996
Accounts receivable,
subcontractor 46,326 49,858 50,807
Prepaid and other current
assets 44,332 37,656 37,249
------ ------ ------
Total current assets 442,573 412,962 375,628
Restricted cash and cash
equivalents 28,490 27,176 27,352
Fixed assets, net 56,575 53,731 50,134
Other assets 54,759 52,993 47,569
Goodwill 342,827 307,161 204,779
Intangible assets, net 255,214 240,478 174,970
------- ------- -------
Total assets $1,180,438 $1,094,501 $880,432
---------- ---------- --------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and
accrued expenses $131,965 $109,121 $118,822
Accrued compensation and
benefits 102,516 98,049 83,701
Current portion of
revolving credit
facility 40,000 40,000 30,000
Current portion of notes
payable 11,250 11,250 7,500
Deferred revenue 6,145 8,436 5,620
Other current liabilities 9,728 23,998 5,374
----- ------ -----
Total current liabilities 301,604 290,854 251,017
Revolving credit facility 166,500 127,500 52,500
Notes payable, less
unamortized fees 194,019 196,746 128,490
Deferred income taxes,
net 30,921 22,514 22,431
Other long-term
liabilities 84,495 83,076 78,134
------ ------ ------
Total liabilities 777,539 720,690 532,572
Commitments and contingencies
Stockholders' equity 402,899 373,811 347,860
------- ------- -------
Total liabilities and
stockholders' equity $1,180,438 $1,094,501 $880,432
---------- ---------- --------
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,
-------- --------
2016 2015 2016 2016 2015
---- ---- ---- ---- ----
Net cash
provided by
operating
activities $20,053 $25,000 $35,227 $55,280 $33,687
Net cash used
in investing
activities (58,451) (9,516) (174,703) (233,154) (94,866)
Net cash
provided by
(used in)
financing
activities 36,268 (12,563) 152,967 189,235 62,592
Effect of
exchange
rates on cash 86 (80) 39 125 (12)
--- --- --- --- ---
Net increase
(decrease) in
cash and cash
equivalents (2,044) 2,841 13,530 11,486 1,401
Cash and cash
equivalents
at beginning
of period 23,106 11,633 9,576 9,576 13,073
------ ------ ----- ----- ------
Cash and cash
equivalents
at end of
period $21,062 $14,474 $23,106 $21,062 $14,474
------- ------- ------- ------- -------
AMN Healthcare Services, Inc.
Additional Supplemental Non-GAAP Disclosures
Reconciliation of Guidance Adjusted EBITDA Margin to
Guidance Operating Margin
(unaudited)
Three Months Ending
-------------------
September 30, 2016
------------------
Low High
--- ----
Adjusted EBITDA margin 11.5% 12.0%
Deduct:
Share-based compensation 0.6%
Acquisition and integration costs 0.2%
EBITDA margin 10.7% 11.2%
---- ----
Depreciation and amortization 1.7%
Operating margin 9.0% 9.5%
=== ===
(1) Operating margin represents income
from operations divided by revenue.
(2) 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
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, medical coding and
consulting business, and education
business. Prior period data has
been reclassified to conform to the
new segment reporting structure.
(3) 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.
(4) 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.
(5) Adjusted EBITDA margin represents
adjusted EBITDA divided by revenue.
(6) Adjusted diluted EPS represents GAAP
diluted EPS excluding the impact of
1) amortization of intangible
assets, 2) acquisition and
integration costs, and 3) tax
effect net of adjustments.
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.
(7) Average healthcare professionals on
assignment represents the average
number of nurse and allied
healthcare professionals on
assignment during the period
presented.
(8) 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.
(9) Days filled is calculated by
dividing the locum tenens hours
filled during the period by eight
hours.
(10) Revenue per day filled represents
revenue of the Company's locum
tenens solutions segment divided by
days filled for the period
presented.
(11) 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/amn-healthcare-announces-second-quarter-2016-results-300309588.html
SOURCE AMN Healthcare Services, Inc.
