AMN Healthcare Executes A Solid Quarter
AMN Healthcare Executes A Solid Quarter
Reports quarterly revenue of $254 million, up 8% year-over-year
Diluted EPS from continuing operations of $0.18 vs. $0.00 in prior year
AMN Healthcare Services, Inc., 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.
YTD June 30, 2013
YTD June 30, 2012*
Percentage change in this column excludes the impact of the discontinued operations associated with the disposal of the Home Healthcare Services segment in January 2012.
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.
NM - Not meaningful
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%.