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AMN Healthcare announce YOY Q1 gross profit increase of 37%

First quarter financial highlights are as follows:

Dollars in millions, except per share amounts.

Q1 2015

% Change

Q1 2014

Revenue

$327.5

36%

Gross profit

$101.4

37%

Net income

$12.2

60%

Diluted EPS

$0.25

56%

Adjusted Diluted EPS*

$0.30

67%

Adjusted EBITDA*

$33.3

58%

Consolidated revenue increased 36% year-over-year, driven by organic revenue growth of 22% with the remainder from acquisitions.

Gross margin of 31.0% represented an improvement of 30 basis points from the prior year and 70 basis points from the prior quarter.

Adjusted EBITDA margin of 10.2% reflected a 140 basis point improvement from the prior year.

Adjusted EPS of $0.30 (which excludes amortization of intangible assets and acquisition and integration-related expenses) grew 67% from the prior year.

AMN's leading workforce solutions portfolio continues to grow and create opportunities to help healthcare providers through multiple service lines.

"Amid positive trends in the healthcare industry, we continued to experience strong demand and outstanding execution across all business segments, resulting in better than anticipated revenue and profitability growth during the first quarter," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "The pipeline of opportunities for our strategic workforce solutions offerings remains strong, and our recently added Avantas, Onward Healthcare, Locum Leaders and Medefis companies are performing and integrating very well into AMN's service offerings. Our portfolio of differentiated workforce solutions and stronger recruitment and supply capabilities, combined with the favorable market conditions and the exceptional performance by our team, give us a continued optimistic outlook for 2015."  

First Quarter 2015 Results

For the first quarter of 2015, consolidated revenue was $328 million, an increase of 36% from the same quarter last year and 17% sequentially. First quarter revenue for the Nurse and Allied Healthcare Staffing segment was $229 million, up 40% (24% excluding acquisitions) from the same quarter last year and 20% sequentially. Locum Tenens Staffing segment revenue in the first quarter was $87 million, an increase of 30% (19% excluding acquisitions) from the same quarter last year and up 14% sequentially. First quarter Physician Permanent Placement Services segment revenue was $12 million, an increase of 11% from the same quarter last year and lower by 1% sequentially.

First quarter gross margin of 31.0% was higher by 30 basis points than the same quarter last year and higher by 70 basis points sequentially. The year-over-year and sequential gross margin improvements were driven both by organic and acquisition revenue growth of higher-margin workforce solutions businesses.

SG&A expenses for the first quarter were $72 million, representing 21.8% of revenue, compared to 22.7% in the same quarter last year and 22.1% in the prior quarter. The year-over-year and sequential improvements in SG&A expenses as a percentage of revenue were due primarily to operating leverage associated with the revenue growth. SG&A expenses in the quarter included $1 million of acquisition and integration-related expenses.

First quarter net income was $12 million and net income per diluted share was $0.25. Excluding the impact of amortization of intangible assets of $3 million and acquisition and integration-related expenses of $1 million, adjusted net income per diluted share was $0.30. First quarter adjusted EBITDA was $33 million, a year-over-year increase of 58% and sequential increase of 32%. First quarter adjusted EBITDA margin of 10.2% represented a 140 basis point increase over prior year and 120 basis point increase from the prior quarter. 

At March 31, 2015, cash and cash equivalents totaled $12 million. First quarter cash flow from operations was $9 million and capital expenditures were $6 million. The Company ended the first quarter with total debt outstanding of $238 million, with a leverage ratio of 2.2 to 1.

Business Trends and Outlook

The Company expects consolidated second quarter 2015 revenue of $335 to $340 million. Gross margin is expected to be 30.5% to 31.0%. SG&A expenses as a percentage of revenue are expected to be 22.0% to 22.5%, slightly higher than first quarter due to increases in employee and other expenses to deliver consistent quality service to our clients. Integration-related expenses are expected to be approximately $1 million. Adjusted EBITDA margin is expected to be approximately 9.5%.  

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