AMN Healthcare's revenue up 35% YoY
AMN Healthcare Services, Inc. has announced its second-quarter 2016 financial results, which exceeded the Company's guidance.
Consolidated revenue was $474m, an increase of 35% from the same quarter last year, driven by 19% organic growth; revenue increased 1% sequentially. Revenue for the Nurse and Allied Solutions segment was $293m, an increase of 29% from the same quarter last year and down 2% sequentially. Locum Tenens Solutions revenue was $109m, an increase of 12% from the same quarter last year and 6% sequentially. Other Workforce Solutions segment revenue was $72m, an increase of 174% from the same quarter last year and 7% sequentially. The Other Workforce Solutions segment revenue grew 32% organically from the prior year with the remainder from recent acquisitions.
Gross margin was 32.7%, which is 130 basis points higher than the same quarter last year and 20 basis points higher sequentially. The year-over-year gross margin improvement continues to be primarily driven by growth in the higher-margin Other Workforce Solutions segment, along with a gross margin increase in the Locum Tenens Solution segment.
AMN states that there was solid demand and operating metrics continued throughout the quarter, with the strongest growth in the Nurse and Allied Solutions segment.
Net income was $26m, or $0.53 per diluted share. Excluding amortization of intangible assets and acquisition and integration costs, net of tax, adjusted net income per diluted share was $0.61. Adjusted EBITDA was $59m, a year-over-year increase of 50%. Adjusted EBITDA margin was 12.5%, representing a 130 basis point increase year-over-year and flat sequentially.
Diluted EPS of $0.53 grew 66% and adjusted diluted EPS of $0.61 grew 61% year-over-year.
The acquisition of Peak Health Solutions, completed in June 2016, expands AMN's service offerings into medical coding and consulting.
At 30th June 2016, cash and cash equivalents totalled $21m. Cash flow from operations was $20m and capital expenditures were $6m. The Company ended the quarter with total debt outstanding of $413m, with a leverage ratio as calculated in accordance with our credit agreement of 1.9 to 1.
Susan R. Salka, president and chief executive officer of AMN Healthcare, said, "The AMN Healthcare team delivered another record quarter of revenue and earnings due to a strong market environment and tremendous execution to address our client's critical and evolving workforce needs. In addition to the strong demand for staffing and placement services, we continue to increase the penetration of our workforce solutions, in particular MSP, VMS and workforce optimization services.
"The desire to build strategic partnerships and rising level of sophistication within healthcare creates great opportunity for AMN to partner with our clients to deliver cost effective, quality patient care."