SAN DIEGO, Aug. 6 /PRNewswire-FirstCall/ -- AMN Healthcare Services, Inc.
(NYSE: AHS), the nation's largest healthcare staffing company and the market
leader in all of its business segments today reported revenue of $313 million,
a 6% increase from the same quarter last year and a 7% increase from last
quarter. Additional highlights include:
-- All three business segments: Nurse & Allied, Locum Tenens and Physician
Permanent Placement, experienced organic sequential revenue growth in the
second quarter of 2008.
-- Gross margin for the quarter was 26.4%, up 90 basis points from the
same quarter last year.
-- Net income for the quarter was $9.4 million, or $0.27 per share, a 4%
increase over the $0.26 per share in the same quarter last year and within the
Company's previously-announced guidance range of $0.26 to $0.28 per share.
Susan R. Nowakowski, President and Chief Executive Officer of AMN
Healthcare, remarked, 'All of our business lines experienced volume and
revenue growth during the second quarter, reflecting the solid fundamentals of
our industry and execution by our team. This success is further magnified by
our ability to improve gross margins and gain modest pricing improvements,
despite relatively flat hospital admissions and an overall soft economic
environment. AMN's strategy to offer a diverse product line across a broad
client base and our leadership position in the fastest-growing, most
profitable segments of the healthcare staffing industry is proving its value
to our shareholders.'
For the second quarter of 2008, revenue for the Nurse and Allied
healthcare staffing segment was $215.3 million, an increase of 7% from the
same quarter last year. The Locum Tenens staffing segment generated revenue of
$83.9 million, an increase of 5% from the same quarter last year and the
Physician Permanent Placement segment provided revenue of $13.5 million, an
increase of 7% from the same quarter last year.
Gross profit for the second quarter of 2008 was $82.5 million, an increase
of 10% from the same quarter last year. Gross margin this quarter increased 90
basis points to 26.4% from 25.5% in the same quarter last year reflecting
mainly an improved pay-to-bill spread in our nurse and allied staffing
segment. Housing costs, which had been trending higher for several quarters,
remained flat in the second quarter as a percentage of revenue compared to the
same quarter last year.
Selling, general and administrative ('SG&A') expenses increased to 19.2%
of revenue in the second quarter of 2008 from 18.2% in the same quarter last
year. The increase was due mostly to higher insurance costs and bad debt
expense associated with a client bankruptcy in our locum tenens staffing
business as well as expenses in support of strategic initiatives to further
diversify and augment our future growth. Despite the increase in SG&A this
quarter, diluted earnings per share grew 4% to $0.27 compared to the same
quarter last year due to the higher revenue and improvement in gross margin.
Revenue and Earnings Guidance for Third Quarter and Full Year 2008
Based on trends experienced in the first month of the third quarter and
taking into account expected seasonal patterns for the third and fourth
quarters, the Company reaffirmed its projected earnings per share growth of
11% to 16% over 2007 and revised its projected revenue growth for the full
year 2008 to 6% to 8%. For the third quarter of 2008, the Company expects
revenue to range from $320 million to $323 million and diluted earnings per
share to range from $0.31 to $0.33.
Nowakowski added, 'We expect all of our business segments to continue to
drive both year-over-year and sequential quarterly revenue growth in the third
quarter. Just as important, we also expect gross margins to remain relatively
stable and, with continued improvements in operational efficiency, we expect
to grow earnings at a stronger pace than revenue.'
Stock Repurchase Program Update
The Company is authorized to purchase up to $38 million of its outstanding
common stock in the open market through March 31, 2009. The Company initiated
the share buyback during the second quarter of 2008 and purchased 368,000
shares of its common stock for approximately $6.4 million, or $17.49 per
share. Diluted shares outstanding at June 30, 2008 were approximately 34.3
million.
Company Summary
AMN Healthcare Services, Inc. is the largest healthcare staffing company
in the United States and the largest nationwide provider in all four of its
business lines: travel nurse staffing, locum tenens staffing (temporary
physician staffing), physician permanent placement services and travel allied
staffing. AMN Healthcare recruits healthcare professionals both nationally and
internationally and places them on variable lengths of assignments and in
permanent positions at acute-care hospitals, physician practice groups and
other healthcare settings throughout the United States. For more information,
visit http://www.amnhealthcare.com.
Conference Call on August 6, 2008
AMN Healthcare Services, Inc.'s second quarter 2008 conference call will
be held on Wednesday, August 6, 2008, at 5:00 p.m., Eastern Time. A live
webcast of the call can be accessed through AMN Healthcare's website at
http://www.amnhealthcare.com/investors. 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
(888) 428-4480 in the U.S. or (651) 291-5254 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 at 7:30 p.m. Eastern Time on August 6, 2008, and can be accessed
until August 20, 2008 at midnight Eastern Time, by calling (800) 475-6701 in
the U.S. or (320) 365-3844 internationally, with access code 931165.
This earnings release contains certain non-GAAP financial information.
These measures are not in accordance with, or an alternative to, generally
accepted accounting principles in the United States ('GAAP'), and may be
different from non-GAAP measures reported by other companies. From time to
time, additional information regarding non-GAAP financial measures may be made
available on the Company's website at http://www.amnhealthcare.com/investors.
Forward-Looking Statements
This earnings 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 the revenue and earnings guidance for the third quarter and full year
of 2008, and Ms. Nowakowski's comments, including those regarding future
growth in revenue and earnings. The Company based these forward-looking
statements on its current expectations and projections about future events.
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' 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. The following factors could
cause the Company's actual results to differ materially from those implied by
the forward-looking statements in this earnings release: the Company's ability
to continue to recruit qualified temporary and permanent healthcare
professionals at reasonable costs; the Company's ability to retain qualified
temporary healthcare professionals for multiple assignments at reasonable
costs; the Company's ability to attract and retain sales and operational
personnel; the Company's ability to enter into contracts with hospitals,
healthcare facility clients, affiliated healthcare networks and physician
practice groups on terms attractive to the Company and to secure orders
related to those contracts; the Company's ability to demonstrate the value of
its services to its healthcare and facility clients; the Company's ability to
maintain and enhance the brand identities it has developed, at reasonable
costs; changes in the timing of hospital, healthcare facility and physician
practice group clients' orders for temporary healthcare professionals; the
general level of patient occupancy and utilization of services at hospital and
healthcare facility clients' facilities, including the potential impact on
such utilization caused by adoption of alternative modes of healthcare
delivery, which utilization may influence demand for the Company's services;
the overall level of demand for services offered by temporary and permanent
healthcare staffing providers; the ability of hospital, healthcare facility
and physician practice group clients to retain and increase the productivity
of their permanent staff; the variation in pricing of the healthcare facility
contracts under which the Company places temporary healthcare professionals;
the Company's ability to successfully design its strategic growth, acquisition
and integration strategies and to implement those strategies, including
integration of acquired companies' accounting, management information, human
resource and other administrative systems, and implementation or remediation
of controls, procedures and policies at acquired companies; the Company's
ability to leverage its cost structure; access to and undisrupted performance
of the Company's management information and communication systems, including
use of the Internet, and candidate and client databases and payroll and
billing software systems; the Company's ability to keep its web sites
operational at a reasonable cost and without service interruptions; the effect
of existing or future government legislation and regulation; the Company's
ability to grow and operate its business in compliance with legislation and
regulations, including regulations that may affect the Company's clients and,
in turn, affect demand for the Company's services; the challenge to the
classification of certain of the Company's healthcare professionals as
independent contractors; the impact of medical malpractice and other claims
asserted against the Company; the disruption or adverse impact to the
Company's business as a result of a terrorist attack or breach of security of
our data systems; the Company's ability to carry out its business strategy and
maintain sufficient cash flow and capital structure to support its business;
the loss of key officers and management personnel that could adversely affect
the Company's ability to remain competitive; the effect of recognition by the
Company of an impairment to goodwill; and the effect of adjustments by the
Company to accruals for self-insured retentions. Other factors that could
cause actual results to differ from those implied by the forward-looking
statements contained in this earnings release are set forth in the Company's
Annual Report on Form 10-K for the year ended December 31, 2007, and its
Current Reports on Form 8-K. These statements reflect the Company's current
beliefs and are based upon information currently available to it. Be advised
that developments subsequent to this earnings release are likely to cause
these statements to become outdated with the passage of time. The Company does
not intend, however, to update the guidance provided today prior to its next
earnings release.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060718/LATU121LOGO)
Contact:
David C. Dreyer
Chief Financial Officer
Christopher Schwartz
Vice President, Financial Reporting and Investor Relations
866.861.3229
AMN Healthcare Services, Inc.
Condensed Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 % Chg 2008 2007 % Chg
Revenue $312,691 $293,912 6.4% $606,284 $577,856 4.9%
Cost of revenue 230,153 218,953 5.1% 446,291 430,392 3.7%
Gross profit 82,538 74,959 10.1% 159,993 147,464 8.5%
26.4% 25.5% 26.4% 25.5%
Operating
expenses:
Selling,
general and
administrative 60,117 53,520 12.3% 115,220 106,571 8.1%
19.2% 18.2% 19.0% 18.4%
Depreciation
and
amortization 3,738 2,857 30.8% 7,088 5,486 29.2%
Total
operating
expenses 63,855 56,377 13.3% 122,308 112,057 9.1%
Income from
operations 18,683 18,582 0.5% 37,685 35,407 6.4%
6.0% 6.3% 6.2% 6.1%
Interest expense,
net 2,660 3,124 -14.9% 5,471 6,458 -15.3%
Income before
income taxes 16,023 15,458 3.7% 32,214 28,949 11.3%
Income tax
expense 6,656 6,212 7.1% 13,331 11,509 15.8%
Net income $9,367 $9,246 1.3% $18,883 $17,440 8.3%
3.0% 3.1% 3.1% 3.0%
Net income per
common share:
Basic $0.28 $0.27 3.7% $0.56 $0.50 12.0%
Diluted $0.27 $0.26 3.8% $0.55 $0.49 12.2%
Weighted average
common shares
outstanding:
Basic 33,833 34,723 -2.6% 33,832 34,681 -2.4%
Diluted 34,308 35,273 -2.7% 34,244 35,278 -2.9%
AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data
(dollars in thousands, except operating data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
% of % of % of % of
2008 Rev 2007 Rev 2008 Rev 2007 Rev
Revenue
Nurse and
allied
healthcare
staffing $215,342 $201,322 $419,327 $401,297
Locum tenens
staffing 83,857 79,937 160,210 151,342
Physician
permanent
placement
services 13,492 12,653 26,747 25,217
$312,691 $293,912 $606,284 $577,856
Adjusted
EBITDA(1)
Nurse and
allied
healthcare
staffing $16,692 7.8% $13,635 6.8% $32,173 7.7% $27,366 6.8%
Locum tenens
staffing 4,247 5.1% 7,040 8.8% 9,902 6.2% 11,058 7.3%
Physician
permanent
placement
services 3,864 28.6% 2,923 23.1% 7,203 26.9% 6,423 25.5%
24,803 7.9% 23,598 8.0% 49,278 8.1% 44,847 7.8%
Depreciation
and
amortization 3,738 2,857 7,088 5,486
Stock-based
compensation 2,382 2,159 4,505 3,954
Interest
expense, net 2,660 3,124 5,471 6,458
Income before
income taxes 16,023 15,458 32,214 28,949
Income tax
expense 6,656 6,212 13,331 11,509
Net income $9,367 $9,246 $18,883 $17,440
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 % Chg 2008 2007 % Chg
Gross Margin
Nurse and
allied
healthcare
staffing 24.5% 23.3% 24.3% 23.3%
Locum tenens
staffing 25.8% 25.6% 26.3% 25.4%
Physician
permanent
placement
services 59.7% 60.0% 60.6% 61.6%
Operating Data:
Nurse and
allied
healthcare
staffing
Average
travelers on
assignment(2) 7,207 7,017 2.7% 7,047 7,024 0.3%
Revenue per
traveler
per day(3) $328.35 $315.28 4.1% $326.95 $315.65 3.6%
Gross profit
per traveler
per day(3) $80.52 $73.49 9.6% $79.30 $73.52 7.9%
Locum tenens
staffing
Days
filled(4) 57,859 57,602 0.4% 110,558 109,901 0.6%
Revenue per
day
filled(4) $1,449.33 $1,387.75 4.4% $1,449.10 $1,377.08 5.2%
Gross profit
per day
filled(4) $374.62 $355.01 5.5% $380.50 $350.02 8.7%
As of June 30,
2008 2007
Leverage
Ratio(5) 1.6 1.8
(1) Adjusted EBITDA represents net income plus interest expense (net of
interest income), income taxes, depreciation and amortization and
stock-based compensation expense. Management presents adjusted EBITDA
because it believes that adjusted EBITDA is a useful supplement to net
income as an indicator of operating performance. Management believes
that adjusted EBITDA is an industry-wide financial measure that is
useful both to management and investors when evaluating the Company's
performance. Management also uses adjusted EBITDA for planning
purposes. Management uses adjusted EBITDA to evaluate the Company's
performance because it believes that adjusted EBITDA more accurately
reflects the Company's results, as it excludes certain items, in
particular stock-based compensation charges that management believes
are not indicative of the Company's operating performance. However,
adjusted EBITDA is not intended to represent cash flows for the
period, nor has it been presented as an alternative to operating or
net income as an indicator of operating performance, and it should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. As defined, adjusted
EBITDA is not necessarily comparable to other similarly titled
captions of other companies due to potential inconsistencies in the
method of calculation. While 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 income
statement, and management therefore utilizes adjusted EBITDA as an
operating performance measure in conjunction with GAAP measures such
as net income.
(2) Average travelers on assignment represents the average number of nurse
and allied healthcare professionals on assignment during the period
presented.
(3) Revenue per traveler per day and gross profit per traveler per day
represent the revenue and gross profit of the Company's nurse and
allied healthcare staffing segment divided by average travelers on
assignment, divided by the number of days in the period presented.
(4) Days filled is calculated by dividing the locum tenens hours filled
during the period by 8 hours. Revenue per day filled and gross profit
per day filled represent revenue and gross profit of the Company's
locum tenens staffing segment divided by days filled for the period
presented.
(5) Leverage ratio represents the ratio of the total debt outstanding at
the end of the period to the Adjusted EBITDA for the past twelve
months.
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
June 30, March 31, December 31,
2008 2008 2007
Assets
Current assets:
Cash and cash equivalents $8,356 $7,835 $18,495
Accounts receivable, net 198,201 199,091 184,741
Income taxes receivable 1,049 -- --
Deferred income taxes, net 28,081 28,081 28,084
Other current assets 15,584 14,938 11,631
Total current assets 251,271 249,945 242,951
Fixed assets, net 25,326 25,246 24,600
Goodwill, net 252,823 252,823 241,266
Intangible assets, net 125,254 126,418 113,535
Other assets 12,048 11,198 11,274
Total assets $666,722 $665,630 $633,626
Liabilities and
stockholders' equity
Current liabilities:
Bank overdraft $2,786 $6,617 $--
Accounts payable and
accrued expenses 28,987 28,624 22,231
Accrued compensation and
benefits 48,855 47,328 43,446
Income taxes payable -- 3,159 2,925
Revolving credit facility 24,500 13,500 --
Current portion of notes
payable 15,427 15,339 26,616
Deferred revenue 8,006 8,322 7,647
Other current liabilities 17,109 25,652 25,691
Total current liabilities 145,670 148,541 128,556
Notes payable, less current
portion 113,771 117,628 120,352
Deferred income taxes, net 69,706 70,637 71,092
Other long-term liabilities 41,201 41,806 37,498
Total liabilities 370,348 378,612 357,498
Stockholders' equity 296,374 287,018 276,128
Total liabilities and
stockholders' equity $666,722 $665,630 $633,626
AMN Healthcare Services, Inc.
Condensed Consolidated Cash Flow Statement
(in thousands)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
Net cash provided by
operating activities $11,883 $16,251 $28,756 $33,493
Net cash used in
investing activities (11,064) (7,983) (44,465) (10,114)
Net cash provided by
(used in) financing
activities (345) (984) 5,589 (10,288)
Effect of exchange
rates on cash 47 22 (19) 14
Net increase
(decrease) in cash
and cash equivalents 521 7,306 (10,139) 13,105
Cash and cash
equivalents at
beginning of period 7,835 10,221 18,495 4,422
Cash and cash
equivalents at end
of period $8,356 $17,527 $8,356 $17,527
SOURCE AMN Healthcare Services, Inc.
