Revenues up 5% at year-end 2017 for AMN Healthcare
AMN Healthcare Services, Inc. has released its fourth quarter and full year 2017 financial results.
Consolidated revenue for the quarter was $509m, a 4% increase over prior year and 3% higher than the third quarter of 2017.
Revenue for the nurse and allied solutions segment was $321m, higher by 4% year over year and up 6% sequentially. The travel nurse division continued to perform well with revenue up 8% year over year and 6% sequentially. Allied division revenue increased 6% year over year and 2% sequentially.
Locum tenens solutions segment revenue was $108m, up 4% year over year and down 3% on a sequential basis. Other workforce solutions segment revenue was $80m reflecting an increase of 5% year over year and down 1% sequentially, with year-over-year growth driven by the interim leadership, VMS, health information management and workforce optimisation businesses, partially offset by declines in the permanent placement businesses.
Gross margin was 31.8%, lower by 70 basis points year over year and 50 basis points sequentially.
SG&A expenses were $100m, or 19.7% of revenue, compared with $101m, or 20.7% of revenue, in the same quarter last year. Expenses as a percentage of revenue decreased year over year due to improved operating leverage. SG&A was $101m, or 20.3% of revenue, in the previous quarter.
Net income was $41m, or $0.84 per diluted share, compared with $26m, or $0.54 per diluted share, in the same quarter last year. Adjusted net income per diluted share was $0.63. Adjustments exclude amortisation of intangible assets, acquisition and integration costs, net of tax, and a one-time income tax benefit from the Tax Cuts and Jobs Act. Adjusted EBITDA was $64m, a year-over-year increase of 6%. adjusted EBITDA margin was 12.6%, representing a 10 basis point increase both year over year and on a sequential basis.
During the fourth quarter of 2017, the company repurchased 300,000 shares of our common stock at an average price of $43.52 per share, resulting in an aggregate purchase price of $13m.
Full year 2017 consolidated revenue was $1,988m, an increase of 5% from prior year. Nurse and allied solutions segment revenue was $1,239m, a year-over-year increase of 5%. Locum tenens solutions segment revenue was $431m, 2% growth compared with the prior year. Other workforce solutions segment revenue was $319m, an annual increase of 9%.
Full year gross margin was 32.4% compared with 32.6% for the prior year. Full-year SG&A expenses were $400m, representing 20.1% of revenue compared with 20.9% for the prior year. The decrease in SG&A margin was due primarily to operating leverage on the revenue growth.
Full-year net income was $133m, and net income per diluted common share was $2.68. Adjusted net income per diluted common share was $2.56. Adjustments excluded amortisation of intangible assets, acquisition and integration costs, net of tax, excess tax benefits relating to a change in stock compensation accounting, and a one-time income tax benefit from the Tax Cuts and Jobs Act. Full-year adjusted EBITDA grew 8% to $256m. Adjusted EBITDA margin of 12.9% in fiscal 2017 represented a 40 basis point increase over prior year.
At 31st December 2017, cash and cash equivalents totalled $15m. Cash flow from operations was $19m for the quarter and $115m for the full year. Capital expenditures were $9m in the quarter and $27m for the year. The company ended the year with total debt outstanding of $325m, with a leverage ratio as calculated in accordance with the company's credit agreement of 1.3 to 1.
Susan R. Salka, president and chief executive officer of AMN Healthcare, said, "In 2017, AMN Healthcare achieved many new milestones, while partnering with our clients and healthcare professionals to enable the delivery of quality patient care every day. As a result we hit new highs in revenue and earnings and delivered a total shareholder return of 28%.
"This performance is a direct result of our organization's unwavering focus on providing exceptional service in an unpredictable year for the healthcare industry. We are grateful for the incredible efforts of everyone on the AMN team, which made strides in broadening our portfolio of solutions and making an impact in the communities we serve.
"AMN enters 2018 uniquely positioned as the most capable partner and go-to problem-solver to help our clients balance their labor supply, cost and flexibility.
"With favorable economic and macro conditions along with the best talent and solutions in the industry, we are set up well for another year of growth."
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