AMN Healthcare announces Q3 results
The company reported a quarterly revenue of $257 million, up 5% year-over-year.
•Third quarter net income increased 47% and adjusted EBITDA increased 15% year-over-year
•On a segment basis, third quarter revenue was up year-over-year by 3% in Nurse and Allied Healthcare Staffing, 11% in Locum Tenens Staffing, and 9% in Physician Permanent Placement Services
•Third quarter consolidated gross margin of 29.4% was higher year-over-year by 90 basis points
•Adjusted EBITDA margin in the third quarter of 8.4% reflected a year-over-year improvement of 70 basis points
•Cash flow from operations in the third quarter was $27 million, reflecting solid earnings performance and a two day reduction in days sales outstanding.
"AMN's solid execution in the third quarter resulted in year-over-year revenue growth across all business segments, as well as improved gross and adjusted EBITDA margins. The Locum Tenens and Physician Permanent Placement businesses have been executing and performing very well in a strong demand environment. In the Nurse and Allied Staffing businesses, the demand environment has been more moderate due to census, client reaction to reimbursement cuts and uncertainty of the impact of the Affordable Care Act," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "We continue to build our leadership position as the innovator in healthcare workforce solutions through winning new MSP clients, expanding our workforce solutions offerings, and improving our operating model. These strategies will enable us to maximize our growth opportunity by serving our clients in an even more differentiated and efficient way."
Third Quarter 2013 Results
For the third quarter of 2013, consolidated revenue was $257 million, an increase of 5% from the same quarter last year and 1% sequentially. Third quarter revenue for the Nurse and Allied Healthcare Staffing segment was $171 million, up 3% from the same quarter last year and 1% sequentially. Locum Tenens Staffing segment revenue in the third quarter was $75 million, an increase of 11% from the same quarter last year and 4% sequentially. Third quarter Physician Permanent Placement Services segment revenue was $11 million, an increase of 9% from the same quarter last year and down 2% sequentially.
Third quarter gross margin of 29.4% was higher by 90 basis points than the same quarter last year and higher by 10 basis points sequentially. The year-over-year increase was due to gross margin improvement in the Nurse and Allied Healthcare Staffing and Locum Tenens Staffing segments. The sequential increase was due primarily to gross margin improvement in the Locum Tenens Staffing segment.
SG&A expenses for the third quarter were $56 million, representing 21.6% of revenue, compared to 21.5% of revenue in both the prior year and prior quarter.
Third quarter adjusted EBITDA grew 15% year-over-year to $22 million. Adjusted EBITDA margin of 8.4% represented a 70 basis point increase over prior year and was driven by the improvement in gross margin. Third quarter net income was $9 million and net income per diluted share was $0.18.
As of September 30, 2013, cash and cash equivalents totaled $32 million and total debt outstanding, net of discount, was $149 million, with a leverage ratio of 1.9 to 1. Third quarter cash flow from operations was $27 million and capital expenditures were $1 million.
Business Trends and Outlook
The Company expects the typical fourth quarter seasonal decline, combined with the moderate demand environment in Nurse and Allied Staffing, to result in consolidated revenue of $246 million to $250 million. Gross margin is expected to be relatively steady between 29.0% to 29.5%. SG&A expenses as a percentage of revenue are expected to be approximately 22.0%. 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.