AMN Healthcare Announces Second Quarter 2013 Results

SAN DIEGO, Aug. 1, 2013 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AHS), healthcare's innovator in workforce solutions and staffing services, today announced second quarter 2013 financial results which were in line with the Company's guidance for revenue and exceeded the Company's guidance for adjusted EBITDA. Financial highlights are as follows:

Dollars in millions, except per share amounts.

• Second quarter consolidated revenue increased 8% year-over-year with growth across all business segments
• On a segment basis, second quarter revenue was up year-over-year by 7% in Nurse and Allied Healthcare Staffing, 8% in Locum Tenens Staffing, and 16% in Physician Permanent Placement Services
• Second quarter consolidated gross margin of 29.3% was higher year-over-year by 90 basis points
• Adjusted EBITDA margin in the second quarter of 8.4% reflected a year-over-year improvement of 70 basis points
• Cash flow from operations in the second quarter was $19 million, enabling the Company to further reduce its long-term debt and lower its leverage ratio to 2.1 to 1 as of June 30, 2013.

"AMN's solid execution in the second quarter resulted in year-over-year growth in revenue and gross margin across all business segments. We are particularly pleased with the improvements achieved in our Locum Tenens business and the very strong growth in Physician Permanent Placement. The benefit of our MSP leadership position enabled our Nurse and Allied segment to perform well, despite lower hospital census and a softer demand environment," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "We continue to make good progress in AMN's key strategic initiatives such as investments in innovative recruitment technologies, expansion of our workforce solutions offerings, and technology infrastructure improvements to create a better client experience and enable more efficient delivery of our services."    

Second Quarter 2013 Results

For the second quarter of 2013, consolidated revenue was $254 million, an increase of 8% from the same quarter last year and 1% sequentially. Second quarter revenue for the Nurse and Allied Healthcare Staffing segment was $170 million, up 7% from the same quarter last year and down 4% sequentially. Locum Tenens Staffing segment revenue in the second quarter was $73 million, an increase of 8% from the same quarter last year and 11% sequentially. Second quarter Physician Permanent Placement Services segment revenue was $11 million, an increase of 16% from the same quarter last year and 12% sequentially.

Second quarter gross margin of 29.3% was higher by 90 basis points than the same quarter last year and higher by 30 basis points sequentially. The year-over-year increase was due to gross margin improvement in all business segments. The sequential increase was due primarily to gross margin improvement in the Locum Tenens Staffing segment and faster growth in our higher gross margin Physician Permanent Placement Services segment.

SG&A expenses for the second quarter were $55 million, representing 21.5% of revenue, compared to 21.3% of revenue in both the prior year and prior quarter.

Second quarter adjusted EBITDA grew 17% year-over-year to $21 million. Adjusted EBITDA margin of 8.4% represented a 70 basis points increase over prior year and was driven by the improvement in gross margin. Second quarter net income was $8 million and net income per diluted share was $0.18. 

As of June 30, 2013, cash and cash equivalents totaled $11 million and total debt outstanding, net of discount, was $154 million, with a leverage ratio of 2.1 to 1. Second quarter cash flow from operations was $19 million and capital expenditures were $3 million.

Business Trends and Outlook

The Company expects third quarter consolidated revenue to be between $253 million and $257 million, representing year-over-year revenue growth of 4% to 5%. Gross margin is expected to be 29.0% to 29.5%. SG&A expenses as a percentage of revenue are expected to be approximately 21.5%. Adjusted EBITDA margin is expected to be approximately 8.0%.

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 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. For more information, visit www.amnhealthcare.com.

Conference Call on August 1, 2013

AMN Healthcare Services, Inc.'s second quarter 2013 conference call will be held on Thursday, August 1, 2013, 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 also be available at 7:30 p.m. Eastern Time on August 1, 2013, and can be accessed until 11:59 p.m. Eastern Time on August 15, 2013, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 296808.

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 consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures include (1) adjusted EBITDA, and (2) adjusted EBITDA margin.  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 2013 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, 2012 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

SOURCE AMN Healthcare Services, Inc.