AMN Healthcare announces Q1 revenue of $241m
First quarter financial highlights are as follows:
Dollars in millions, except per share amounts.
* 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.
First quarter consolidated revenue is lower than prior year by 4%, due to lower revenue in the Nurse and Allied Healthcare Staffing segment partially offset by higher revenue in the Locum Tenens Staffing and Physician Permanent Placement Services segments.
Consolidated gross margin of 30.7% for the first quarter represented a record-high and year-over-year improvement of 170 basis points.
First quarter adjusted EBITDA margin of 8.8% improved 40 basis points over prior year.
In April, the Company refinanced its existing credit facilities with a new credit agreement and initial rate reduction of approximately 175 basis points.
"AMN continues to make progress in our long-term strategy and improving our operating margins despite the current challenging healthcare environment. Lower hospital census, combined with cost pressures and weather impacts resulted in more cautious buying behavior and temporary staff utilization during the first quarter. Although material improvements in Nurse and Allied Staffing are still likely a few months out, our Physician Placement and Locum Tenens businesses remain less impacted and continue to show signs of good near and long-term growth opportunity," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "We believe our focused investments and execution on our strategy to advance our position as healthcare's innovator in workforce solutions, particularly as the leader in providing MSP, VMS and RPO services, have positioned us to be a stronger partner with our clients."
First Quarter 2014 Results
For the first quarter of 2014 consolidated revenue was $241 million, a decrease of 4% from the same quarter last year and 3% sequentially. First quarter revenue for the Nurse and Allied Healthcare Staffing segment was $163 million, down 8% from the same quarter last year and flat sequentially. Locum Tenens Staffing segment revenue in the first quarter was $67 million, an increase of 2% from the same quarter last year and down 10% sequentially. First quarter Physician Permanent Placement Services segment revenue was $11 million, an increase of 7% from the same quarter last year and 1% sequentially.
First quarter gross margin of 30.7% was higher by 170 basis points than the same quarter last year and higher by 90 basis points sequentially. The year-over-year increase was due to gross margin improvement across all business segments, as well as the addition of the ShiftWise business. The sequential increase was due to the inclusion of a full quarter of the ShiftWise business in the first quarter and lower insurance expenses.
SG&A expenses for the first quarter were $55 million, representing 22.7% of revenue, compared to $54 million in the same quarter last year and $54 million in the prior quarter. The increase in SG&A expenses was due primarily to the additional SG&A expenses from the ShiftWise business, partially offset by lower professional liability expense.
First quarter net income was $8 million and net income per diluted share was $0.16. First quarter adjusted EBITDA was $21 million, flat year over year and sequentially. Adjusted EBITDA margin of 8.8% reflected a 40 basis point increase over prior year and was driven by the improvement in gross margin.
At March 31, 2014, cash and cash equivalents totaled $9 million. First quarter cash flow provided by operations was $1.0 million and capital expenditures were $6 million. The Company ended the quarter with total debt outstanding, net of discount, of $159 million, with a leverage ratio of 2.0 to 1.
Business Trends and Outlook
The Company expects consolidated second quarter 2014 revenue of $244 million to $248 million. Gross margin is expected to be approximately 30.5%. SG&A expenses as a percentage of revenue are expected to be between 22.5% to 23.0%. Adjusted EBITDA margin is expected to be approximately 8.5%.
AMN Healthcare provides healthcare workforce solutions and staffing services to healthcare facilities across the nation.