AMN Healthcare Services, Inc. has announced its operating results for the second quarter of 2011
AMN Healthcare Services, Inc. has announced its operating results for the second quarter of 2011. Financial highlights are as follows:
(Dollars in millions, except per share amounts)
June 30, 2011
June 30, 2010
Earnings per Diluted Share
Key business highlights for the second quarter are as follows:
In our temporary staffing segments, revenues were up sequentially and demand continues to rise.
Revenues for our largest segment, Nurse and Allied Staffing, were up 4% sequentially, due primarily to a 5% sequential and 36% year-over-year pro forma increase in travel nurse staffing.
Selling, general and administrative ("SG&A") expenses were flat versus prior quarter, an improvement as a percentage of revenues of 70 bps sequentially and 80 bps year-over-year.
Our momentum in winning new managed services program (MSP) contracts continues, with 30 new MSP clients added during the last 12 months representing approximately $75 million in annualized gross spend under management.
"We continue to experience a steady market recovery, as represented by a fifth consecutive quarter of sequential, consolidated revenue growth. This performance has been driven primarily by the overall health and improvement in the travel nursing business, as well as the continued addition of new clients who have chosen AMN Healthcare as their MSP partner," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "We are also experiencing the performance improvement and cost savings benefits from the Medfinders acquisition, which we closed almost a year ago."
Second Quarter 2011 Results
For the second quarter of 2011, consolidated revenue was $235 million, which represented an increase of 2% from prior quarter and 57% from the same quarter last year. Second quarter revenue for the Nurse and Allied Healthcare Staffing segment was $140 million, an increase of 4% sequentially and 85% from the same quarter last year. The Locum Tenens Staffing segment generated revenue of $71 million, an increase of 1% sequentially and 9% from the same quarter last year. Second quarter Physician Permanent Placement Services segment revenue was $9 million, a decrease of 13% sequentially and an increase of 14% from the same quarter last year. This sequential decline was due primarily to the adoption of a new revenue recognition standard in the first quarter. Second quarter revenue for the Home Healthcare Services segment, which was added in the third quarter of 2010 through the Medfinders acquisition, was $14 million, an increase of 2% from the prior quarter.
Gross margin in the second quarter of 2011 was 27.7%, a decrease of 190 bps compared to the previous quarter and an increase of 10 bps from the same quarter last year. The sequential decrease was due primarily to a first quarter $1.9 million actuarial-based workers compensation benefit and the new revenue recognition standard mentioned previously.
SG&A expenses as a percentage of revenue for the second quarter were 22.4%, compared to 23.1% in the prior quarter and 23.2% in the same quarter last year. The decrease was due to the leveraging of an improved cost infrastructure and acquisition synergies. Included in SG&A expenses in the second quarter were $1.2 million of integration-related expenses. Without the integration costs, SG&A expenses were 21.9% of revenues.
Second quarter 2011 GAAP earnings per diluted share was $0.02. Adjusted earnings per share was $0.03 excluding integration-related costs.
As of June 30, 2011, cash and cash equivalents totaled $8 million, and total debt outstanding, net of discount, was $216 million.
Business Trends and Outlook
Going into the third quarter of 2011, the Nurse and Allied Healthcare Staffing segment continues to experience positive momentum overall with 2% to 4% sequential revenue growth anticipated. This is being led by an expected increase in travel nurse volumes of at least 30% above prior year pro forma levels. The Locum Tenens Staffing segment is expected to show a sequential improvement of 3% to 5% in third quarter revenues. Physician Permanent Placement Services segment revenues are anticipated to remain stable sequentially. The Home Healthcare Services segment revenues are expected to be up 1% to 3% from the prior quarter. On a consolidated basis, third quarter revenues are expected to be between $241 million and $245 million. Gross margin is anticipated to be between 27.0% and 27.5%. SG&A expenses are expected to be approximately 22% of revenues.