Amn Healthcare (NYSE:AHS)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Amn Healthcare Charts. Click Here for more Amn Healthcare Charts.](/p.php?pid=staticchart&s=NY%5EAHS&p=8&t=15)
SAN DIEGO, Aug. 6 /PRNewswire-FirstCall/ -- AMN Healthcare Services, Inc. (NYSE:AHS) today announced operating results for the second quarter 2009, which were in line with management's expectations. Financial highlights for the three months ended June 30, 2009 include:
% Chg % Chg
Q2 2009 Q2 2008 Q1 2009
------------------------------------------------------------
Revenue $199 million (36%) (20%)
------------------------------------------------------------
Net Income $4 million (49%) NM
------------------------------------------------------------
Diluted EPS $0.13 (48%) NM
------------------------------------------------------------
Cash Flow from Operations $36 million 206% (3%)
------------------------------------------------------------
Adjusted EBITDA* $18 million (27%) 3%
------------------------------------------------------------
Adjusted Diluted EPS* $0.17 (32%) 55%
------------------------------------------------------------
* See "Supplemental Financial and Operating Data" for a reconciliation of
non-GAAP items.
NM - Not meaningful
"Our focus on client relationships and quality as well as our diversified service offerings have enabled AMN Healthcare to maintain our leading market position, improve gross margins and strengthen our balance sheet through the prolonged economic downturn," said Susan R. Nowakowski, President and Chief Executive Officer of AMN Healthcare. "We continue to take an aggressive and disciplined approach in streamlining and right-sizing our infrastructure, enabling us to adjust to short-term volume trends, while operating with an improved cost structure going forward. At the same time, we are also maintaining our long-term strategy of investing in our future through progress with new service lines."
Key business highlights include:
-- Strong market leadership position, with stable pricing and gross
margins across service lines;
-- Signs of stabilization and improvement in Nursing and Allied orders;
-- Progress in new market expansion areas of Emergency Medicine Physician
staffing, Home Health Nurse and Allied staffing, and Recruitment
Process Outsourcing;
-- Significant debt reduction and increased cash that position the
company to capture additional market opportunities for future growth;
-- Cost structure improvements and more streamlined infrastructure for
improved profitability as the market rebounds.
For the second quarter of 2009, revenue for the Nurse and Allied staffing segment was $111 million, a decrease of 48% from the same quarter last year and 32% sequentially. The Locum Tenens staffing segment generated revenue of $79 million, a decrease of 6% from the same quarter last year and an increase of 6% sequentially.
Gross margin in the second quarter of 2009 was 27.0%, an increase of 140 bps as compared to 25.6% for the previous quarter and an increase of 60 bps as compared to 26.4% for the same quarter last year. The year over year and sequential increase mainly reflected a shift in business mix and tight management of direct costs.
Selling, general and administrative ("SG&A") expenses (excluding restructuring costs) for the second quarter of 2009 were 19.0% as a percentage of revenue as compared to 19.2% in the same quarter last year. SG&A declined by $22.3 million, or 37%, over the same period in the prior year and by $12.2 million, or 24%, sequentially, due to cost-saving initiatives taking hold as well as $3.5 million in favorable insurance reserve adjustments.
As a result of certain cost-reduction actions, the company recorded $2.2 million in restructuring charges, consisting mainly of severance payments and lease-related charges associated with various facility, branding and back-office consolidations.
Second quarter GAAP net earnings per diluted share was $0.13, including a $0.04 negative impact from restructuring charges, reflecting a decrease compared to $0.25 in the same period in the prior year.
As of June 30, 2009 cash and cash equivalents totaled $23.5 million, compared to $11.3 million as of December 31, 2008. Total debt outstanding was $90.0 million as of June 30, 2009, reflecting a reduction in debt of $56.3 million since December 31, 2008. Total average diluted shares outstanding for the second quarter of 2009 were 32.9 million.
Business Trends and Outlook
During the second quarter of 2009, Nursing and Allied orders continued to show signs of stabilization, although still at levels significantly lower than prior year. Locum Tenens volume (days filled) increased slightly over the first quarter. Pricing and gross margins remained relatively stable overall.
Nowakowski noted continued signs of stabilization and some recent improvement in orders for travel nurse and allied professionals which should translate into stabilizing volumes during the third quarter. Locum Tenens volume and physician permanent placements are expected to be steady compared with the prior quarter. Based on these trends, third quarter consolidated revenue is expected to decline sequentially by approximately 15%. The majority of this decline is driven by volume trends in nurse staffing resulting from the earlier drop in demand levels. Overall gross margins are anticipated to remain consistent.
"We are continuing to focus on maintaining strong relationships and securing preferred contracts with our clients, as well as nurturing our recent new service offerings such as Emergency Medicine staffing, Home Health staffing, and Recruitment Process Outsourcing," added Nowakowski. "At the same time, we are prudently managing our cost structure and balance sheet in order to position ourselves for future investments in new market opportunities that contribute strategic synergies to our core service lines. Despite the uncertainty of when economic recovery will occur, we remain confident in the long-term fundamentals of our industry and focused on laying the groundwork for innovation and growth in future years to drive shareholder value."
About AMN Healthcare Services
AMN Healthcare Services, Inc. is the largest healthcare staffing company in the United States and a leader in all three of its business segments: travel nurse and allied staffing, locum tenens staffing (temporary physician staffing), and physician permanent placement services. 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, 2009
AMN Healthcare Services, Inc.'s second quarter 2009 conference call will be held on Thursday, August 6, 2009, 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 (800) 230-1092 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. Alternatively, a telephonic replay of the call will be available at 7:30 p.m. Eastern Time on August 6, 2009, and can be accessed until August 20, 2009 at midnight Eastern Time, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 106454.
Non-GAAP Measures
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 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. 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. 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, 2008 and its other quarterly and periodic reports filed with the SEC. These statements reflect the company's current beliefs and are based upon information currently available to it. 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 Income
(dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
2009 2008 % Chg
-----------------------------------------------------------------
Revenue $199,140 $312,691 (36.3%)
Cost of revenue 145,463 230,153 (36.8%)
------- -------
Gross profit 53,677 82,538 (35.0%)
------ ------
27.0% 26.4%
Operating expenses:
Selling, general and
administrative 37,840 60,117 (37.1%)
19.0% 19.2%
Restructuring Charges 2,152 - 100%
Impairment Charges - - 0%
Depreciation and
amortization 3,442 3,738 (7.9%)
----- -----
Total operating
expenses 43,434 63,855 (32.0%)
------ ------
Income (loss) from
operations 10,243 18,683 (45.2%)
5.1% 6.0%
Interest expense, net 2,320 2,660 (12.8%)
----- -----
Income (loss) before income
taxes 7,923 16,023 (50.6%)
Income tax expense 3,549 7,508 (52.7%)
----- -----
Net income (loss) $4,374 $8,515 (48.6%)
====== ======
2.2% 2.7%
Net income (loss) per common
share:
Basic $0.13 $0.25 (48.0%)
===== =====
Diluted $0.13 $0.25 (48.0%)
===== =====
Weighted average common
shares outstanding:
Basic 32,621 33,833 (3.6%)
====== ======
Diluted 32,918 34,308 (4.1%)
====== ======
Six Months Ended
June 30,
2009 2008 % Chg
-----------------------------------------------------------------
Revenue $448,735 $606,284 (26.0%)
Cost of revenue 331,075 446,291 (25.8%)
------- -------
Gross profit 117,660 159,993 (26.5%)
------- -------
26.2% 26.4%
Operating expenses:
Selling, general and
administrative 87,920 115,220 (23.7%)
19.6% 19.0%
Restructuring Charges 5,070 - 100%
Impairment Charges 175,707 - 100%
Depreciation and
amortization 6,909 7,088 (2.5%)
----- -----
Total operating
expenses 275,606 122,308 125.3%
------- -------
Income (loss) from
operations (157,946) 37,685 NM
(35.2%) 6.2%
Interest expense, net 4,519 5,471 (17.4%)
----- -----
Income (loss) before income
taxes (162,465) 32,214 NM
Income tax expense (45,005) 14,976 NM
-------- ------
Net income (loss) $(117,460) $17,238 NM
========= =======
(26.2%) 2.8%
Net income (loss) per common
share:
Basic $(3.60) $0.51 NM
====== =====
Diluted $(3.60) $0.50 NM
====== =====
Weighted average common
shares outstanding:
Basic 32,599 33,832 (3.6%)
====== ======
Diluted 32,599 34,244 (4.8%)
====== ======
NM - Not meaningful
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
2009 Rev 2008 Rev 2009 Rev 2008 Rev
Revenue
Nurse
and
allied
healthcare
staffing $111,136 $215,342 $274,986 $419,327
Locum
tenens
staffing 79,097 83,857 153,888 160,210
Physician
permanent
placement
services 8,907 13,492 19,861 26,747
----- ------ ------ ------
$199,140 $312,691 $448,735 $606,284
======== ======== ======== ========
Reconciliation
of Non-GAAP
Items:
Adjusted
EBITDA(1)
Nurse
and
allied
healthcare
staffing $6,796 6.1% $16,692 7.8% $17,387 6.3% $32,173 7.7%
Locum
tenens
staffing 8,985 11.4% 4,247 5.1% 12,806 8.3% 9,902 6.2%
Physician
permanent
placement
services 2,211 24.8% 3,864 28.6% 5,261 26.5% 7,203 26.9%
----- ----- ----- -----
17,992 9.0% 24,803 7.9% 35,454 7.9% 49,278 8.1%
Depreciation
and
amortization 3,442 3,738 6,909 7,088
Stock-based
compensation 2,155 2,382 4,830 4,505
Restructuring
charges 2,152 - 5,070 -
Impairment
charges - - 175,707 -
Non-recurring
legal
expenses - - 884 -
Interest
expense,
net 2,320 2,660 4,519 5,471
----- ----- ----- -----
Income
(loss)
before
income
taxes 7,923 16,023 (162,465) 32,214
Income
tax
expense 3,549 7,508 (45,005) 14,976
----- ----- ------- ------
Net
income
(loss) $4,374 $8,515 $(117,460) $17,238
====== ====== ========= =======
GAAP based
diluted
net income
(loss)
per share
(EPS) $0.13 $(3.60)
Adjustments:
Restructuring
charges 0.04 0.09
Impairment
charges - 3.77
Non-recurring
legal
expenses - 0.02
--- ----
Adjusted
diluted
earnings
per
share
(2) $0.17 $0.28
===== =====
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ----------------------------
% %
2009 2008 Chg 2009 2008 Chg
Gross Margin
Nurse
and
allied
healthcare
staffing 25.0% 24.5% 23.8% 24.3%
Locum
tenens
staffing 26.1% 25.8% 26.2% 26.3%
Physician
permanent
placement
services 58.8% 59.7% 60.3% 60.6%
Operating Data:
---------------
Nurse
and
allied
healthcare
staffing
Average
travelers
on
assignment
(3) 3,661 7,207 (49.2%) 4,575 7,047 (35.1%)
Revenue
per
traveler
per
day(4) $333.59 $328.35 1.6% $332.08 $326.95 1.6%
Gross
profit
per
traveler
per
day(4) $83.36 $80.52 3.5% $78.99 $79.30 (0.4%)
Locum
tenens
staffing
Days
filled
(5) 54,708 57,859 (5.4%) 107,105 110,558 (3.1%)
Revenue
per day
filled
(5) $1,445.80 $1,449.33 (0.2%) $1,436.80 $1,449.10 (0.8%)
Gross
profit
per day
filled(5) $377.79 $374.62 0.8% $375.94 $380.50 (1.2%)
As of June
30,
----------
2009 2008
Leverage
Ratio
(6) 1.1 1.6
(1) Adjusted EBITDA represents net income (loss) plus interest expense
(net of interest income), income taxes, depreciation and amortization,
restructuring charges, impairment charges, non-recurring legal
expenses 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) Adjusted EPS represents GAAP EPS plus restructuring and impairment
charges and non-recurring legal expenses. Management presents adjusted
EPS because it believes that adjusted EPS is a useful supplement to
diluted net loss per share as an indicator of operating performance.
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). As defined, adjusted
EPS 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 EPS are not indicative of the company's operating
performance, these items do impact the income statement, and
management therefore utilizes adjusted EPS as an operating performance
measure in conjunction with GAAP measures such as GAAP EPS.
(3) Average travelers on assignment represents the average number of nurse
and allied healthcare professionals on assignment during the period
presented.
(4) 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.
(5) 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.
(6) 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,
2009 2009 2008
---- ---- ----
Assets
Current assets:
Cash and cash
equivalents $23,488 $16,675 $11,316
Accounts
receivable, net 114,542 148,376 182,562
Prepaid expenses 8,867 10,585 9,523
Income taxes
receivable 1,425 4,448 3,440
Deferred income
taxes, net 18,085 22,417 18,085
Other current
assets 2,911 3,376 4,901
----- ----- -----
Total current
assets 169,318 205,877 229,827
Fixed assets,
net 24,034 24,938 24,018
Deposits and
other assets 12,056 10,579 13,252
Goodwill 79,868 79,868 252,875
Intangible
assets, net 117,738 118,940 122,845
------- ------- -------
Total assets $403,014 $440,202 $642,817
======== ======== ========
Liabilities and
stockholders'
equity
Current
liabilities:
Bank overdraft $3,274 $- $3,995
Accounts payable
and accrued
expenses 20,837 24,667 24,420
Accrued
compensation
and benefits 31,941 36,728 44,871
Revolving credit
facility - 6,500 31,500
Current portion
of notes
payable 12,201 14,824 14,580
Deferred revenue 5,699 6,204 7,184
Other current
liabilities 15,892 15,060 14,722
------ ------ ------
Total current
liabilities 89,844 103,983 141,272
Notes payable,
less current
portion 77,781 98,208 100,236
Deferred income
taxes, net 7,382 13,342 58,466
Other long-term
liabilities 56,592 59,532 58,710
------ ------ ------
Total
liabilities 231,599 275,065 358,684
------- ------- -------
Stockholders'
equity 171,415 165,137 284,133
------- ------- -------
Total
liabilities and
stockholders'
equity $403,014 $440,202 $642,817
======== ======== ========
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,
2009 2008 2009 2008
---- ---- ---- ----
Net cash
provided by
operating
activities $36,388 $11,883 $73,945 $28,756
Net cash used
in investing
activities (1,204) (11,064) (2,434) (44,465)
Net cash
provided by
(used in)
financing
activities (28,420) (345) (59,374) 5,589
Effect of
exchange
rates on cash 49 47 35 (19)
--- --- --- ----
Net increase
(decrease) in
cash and cash
equivalents 6,813 521 12,172 (10,139)
Cash and cash
equivalents
at beginning
of period 16,675 7,835 11,316 18,495
------ ----- ------ ------
Cash and cash
equivalents
at end of
period $23,488 $8,356 $23,488 $8,356
======= ====== ======= ======
(Logo: http://www.newscom.com/cgi-bin/prnh/20060718/LATU121LOGO)
http://www.newscom.com/cgi-bin/prnh/20060718/LATU121LOGO
http://photoarchive.ap.org/
DATASOURCE: AMN Healthcare Services, Inc.
CONTACT: Amy C. Chang, Vice President, Investor Relations of AMN
Healthcare Services, Inc., 1-866-861-3229
Web Site: http://www.amnhealthcare.com/