AMN Healthcare Announces Second Quarter 2024 Results
AMN Healthcare Services, Inc. (NYSE: AMN) reported its Q2 2024 financial results with revenue of $741 million, down 25% year-over-year. GAAP EPS was $0.42, a 73% decrease, while adjusted EPS was $0.98, down 59%. The company's performance was in line with expectations, with earnings surpassing projections due to effective expense management. Notable highlights include:
- ShiftWise Flex platform rollout exceeded 50% of vendor-neutral clients' spend
- Technology and Workforce Solutions contributed 41% of operating income
- Strong cash flow from operations at $100 million
- Debt reduction of $80 million in Q2, totaling $115 million year-to-date
- Net leverage ratio at 2.6:1
For Q3 2024, AMN projects revenue between $660-$680 million, representing a 20-23% year-over-year decrease.
AMN Healthcare Services, Inc. (NYSE: AMN) ha riportato i risultati finanziari del Q2 2024 con un fatturato di 741 milioni di dollari, in calo del 25% rispetto all'anno precedente. L'EPS GAAP è stato di 0,42 dollari, con una diminuzione del 73%, mentre l'EPS rettificato è stato di 0,98 dollari, in calo del 59%. La performance dell'azienda è stata in linea con le aspettative, con utili superiori alle previsioni grazie a una gestione efficace delle spese. Tra i punti salienti:
- Il lancio della piattaforma ShiftWise Flex ha superato il 50% della spesa dei clienti neutrali rispetto ai fornitori
- Tecnologia e Soluzioni per la Forza Lavoro hanno contribuito al 41% del reddito operativo
- Forti flussi di cassa dalle operazioni pari a 100 milioni di dollari
- Riduzione del debito di 80 milioni di dollari nel Q2, per un totale di 115 milioni di dollari dall'inizio dell'anno
- Rapporto di leva netta a 2,6:1
Per il Q3 2024, AMN prevede un fatturato compreso tra 660-680 milioni di dollari, rappresentando una diminuzione del 20-23% rispetto all'anno precedente.
AMN Healthcare Services, Inc. (NYSE: AMN) informó sus resultados financieros del Q2 2024 con ingresos de 741 millones de dólares, una disminución del 25% interanual. El EPS GAAP fue de 0.42 dólares, una caída del 73%, mientras que el EPS ajustado fue de 0.98 dólares, en descenso del 59%. El desempeño de la empresa estuvo en línea con las expectativas, con ganancias que superaron las proyecciones gracias a una gestión efectiva de los gastos. Entre los puntos destacados se incluyen:
- El lanzamiento de la plataforma ShiftWise Flex superó el 50% del gasto de clientes neutrales a proveedores
- Tecnología y Soluciones de Fuerza Laboral contribuyeron con el 41% del ingreso operativo
- Fuerte flujo de efectivo de las operaciones de 100 millones de dólares
- Reducción de la deuda de 80 millones de dólares en el Q2, totalizando 115 millones de dólares en lo que va del año
- Relación de apalancamiento neto de 2.6:1
Para el Q3 2024, AMN proyecta ingresos entre 660-680 millones de dólares, lo que representa una disminución del 20-23% interanual.
AMN Healthcare Services, Inc. (NYSE: AMN)는 2024년 2분기 재무 결과를 발표했습니다. 수익은 7억 4,100만 달러로, 전년 대비 25% 감소했습니다. GAAP EPS는 0.42달러로 73% 감소했으며, 조정 EPS는 0.98달러로 59% 하락했습니다. 회사의 성과는 기대치와 일치했으며, 효과적인 비용 관리로 인해 수익은 예상을 초과했습니다. 주요 하이라이트는 다음과 같습니다:
- ShiftWise Flex 플랫폼 론칭이 공급업체 중립 고객의 50% 이상의 지출을 초과했습니다.
- 기술 및 인력 솔루션은 운영 수익의 41%를 기여했습니다.
- 운영으로 인한 강력한 현금 흐름이 1억 달러에 달했습니다.
- 2분기 동안 8천만 달러의 부채 감축으로, 연초까지 총 1억 1천5백만 달러에 달했습니다.
- 순杠杆 비율은 2.6:1입니다.
2024년 3분기에는 AMN이 6억 6천만에서 6억 8천만 달러 사이의 수익을 예상하고 있으며, 이는 전년 대비 20-23% 감소를 나타냅니다.
AMN Healthcare Services, Inc. (NYSE: AMN) a annoncé ses résultats financiers pour le Q2 2024, avec un chiffre d'affaires de 741 millions de dollars, en baisse de 25% par rapport à l'année précédente. Le BPA GAAP était de 0,42 dollar, une diminution de 73%, tandis que le BPA ajusté était de 0,98 dollar, en baisse de 59%. La performance de l'entreprise était conforme aux attentes, les bénéfices dépassant les prévisions grâce à une gestion efficace des dépenses. Les points saillants incluent :
- Le lancement de la plateforme ShiftWise Flex a dépassé 50% des dépenses des clients neutres par rapport aux fournisseurs
- Les Solutions Technologiques et de Main-d'œuvre ont contribué à 41% du résultat opérationnel
- Fort flux de trésorerie des opérations à 100 millions de dollars
- Réduction de la dette de 80 millions de dollars au Q2, totalisant 115 millions de dollars depuis le début de l'année
- Ratio de levier net de 2,6:1
Pour le Q3 2024, AMN prévoit un chiffre d'affaires compris entre 660 et 680 millions de dollars, représentant une baisse de 20 à 23% par rapport à l'année précédente.
AMN Healthcare Services, Inc. (NYSE: AMN) hat seine finanziellen Ergebnisse für das Q2 2024 veröffentlicht, mit Einnahmen von 741 Millionen Dollar, was einem Rückgang von 25% im Jahresvergleich entspricht. Der GAAP EPS betrug 0,42 Dollar, ein Rückgang um 73%, während der bereinigte EPS 0,98 Dollar betrug, ein Rückgang um 59%. Die Leistung des Unternehmens entsprach den Erwartungen, wobei die Gewinne aufgrund eines effektiven Kostenmanagements die Prognosen übertrafen. Bemerkenswerte Highlights sind:
- Der Start der ShiftWise Flex Plattform überstieg 50% der Ausgaben der lieferanten-neutralen Kunden
- Technologie- und Personallösungen trugen 41% zum operativen Ertrag bei
- Starker Cashflow aus dem Betrieb von 100 Millionen Dollar
- Schuldentilgung von 80 Millionen Dollar im Q2, insgesamt 115 Millionen Dollar seit Jahresbeginn
- Netto-Leverage-Verhältnis von 2,6:1
Für das Q3 2024 prognostiziert AMN Einnahmen zwischen 660-680 Millionen Dollar, was einem Rückgang von 20-23% im Jahresvergleich entspricht.
- ShiftWise Flex platform rollout surpassed 50% of vendor-neutral clients' spend
- Technology and Workforce Solutions produced 41% of operating income from three reported segments
- Language services revenue grew 18% year-over-year
- Strong cash flow from operations at $100 million in Q2
- Debt reduction of $80 million in Q2, bringing year-to-date repayment to $115 million
- Locum tenens revenue increased 17% year-over-year
- Quarterly revenue decreased 25% year-over-year to $741 million
- GAAP diluted EPS decreased 73% to $0.42
- Adjusted diluted EPS declined 59% to $0.98
- Nurse and Allied Solutions segment revenue dropped 36% year-over-year
- Travel nurse staffing revenue declined 42% year-over-year
- Consolidated gross margin decreased 230 basis points year-over-year to 31.0%
- Adjusted EBITDA decreased 42% year-over-year
- Q3 2024 revenue projected to be 20-23% lower than prior year
Insights
AMN Healthcare's Q2 2024 results show a significant revenue decline of
Notably, AMN's Technology and Workforce Solutions segment now contributes
The Q2 results reflect the ongoing normalization in healthcare staffing demand post-pandemic. The
The rollout of ShiftWise Flex platform to over
AMN's Q2 performance, while showing significant YoY declines, demonstrates the company's resilience and adaptability in a normalizing healthcare staffing market. The better-than-expected earnings highlight effective cost management, important in maintaining profitability during revenue contractions. The diversification into higher-margin segments like Technology and Workforce Solutions is proving valuable, offsetting some weakness in traditional staffing areas.
Investors should note the strong cash flow generation and debt reduction, which strengthen AMN's financial position. The net leverage ratio of 2.6:1 provides flexibility for future investments or market challenges. While near-term headwinds persist, AMN's strategic focus on technology-driven solutions and diverse revenue streams positions it well for long-term growth as healthcare staffing needs evolve.
Quarterly revenue of
GAAP EPS of
DALLAS, Aug. 08, 2024 (GLOBE NEWSWIRE) -- AMN Healthcare Services, Inc. (NYSE: AMN), the leader and innovator in total talent solutions for healthcare organizations across the United States, today announced its second quarter 2024 financial results. Financial highlights are as follows:
Dollars in millions, except per share amounts.
| Q2 2024 | % Change Q2 2023 | YTD June 30, 2024 | % Change YTD June 30, 2023 | |||
| Revenue | ( | ( | ||||
| Gross profit | ( | ( | ||||
| Net income | ( | ( | ||||
| GAAP diluted EPS | ( | ( | ||||
| Adjusted diluted EPS* | ( | ( | ||||
| Adjusted EBITDA* | ( | ( | ||||
* See “Non-GAAP Measures” below for a discussion of our use of non-GAAP items and the table entitled “Non-GAAP Reconciliation Tables” for a reconciliation of non-GAAP items.
Business Highlights
- Second quarter revenue was in line with expectations while earnings were better than expected, driven by expense management and beneficial discrete items.
- Rollout of our ShiftWise Flex platform surpassed
50% of our vendor-neutral clients’ spend on ShiftWise, and we successfully implemented our first MSP client migrations to Flex. - Technology and Workforce Solutions produced
41% of operating income from our three reported segments, led by18% year-over-year revenue growth in language services. - Cash flow from operations was strong at
$100 million in the second quarter, which allowed us to reduce debt by$80 million , bringing the year-to-date repayment to$115 million . - Our net leverage ratio at quarter end was 2.6:1.
“In the second quarter, we made important progress in strengthening AMN’s position with clients in every part of the market for total talent solutions in healthcare,” said Cary Grace, President and Chief Executive Officer of AMN Healthcare. “We have brought in impressive growth in our VMS sales pipeline spearheaded by ShiftWise Flex and our fill rates for third-party, direct and MSP orders improved again this quarter. The diversification of our solutions, with many higher-margin revenue sources beyond staffing, along with careful expense management, enabled us to generate profit margins above our expectations.”
Ms. Grace continued, “Our largest clients continue to reduce their spend on contingent labor, though we see promising signs of improvement in the travel nurse market and are heartened to see positive movement in the demand and supply factors that drive our long-term growth potential.”
Second Quarter 2024 Results
Consolidated revenue for the quarter was
Revenue for the Nurse and Allied Solutions segment was
The Physician and Leadership Solutions segment reported revenue of
Technology and Workforce Solutions segment revenue was
Consolidated gross margin was
Consolidated SG&A expenses were
Income from operations was
At June 30, 2024, cash and cash equivalents totaled
Third Quarter 2024 Outlook
| Metric | Guidance* |
| Consolidated revenue | |
| Gross margin | |
| SG&A as percentage of revenue | |
| Operating margin | |
| Adjusted EBITDA margin |
*Note: Guidance percentage metrics are approximate. For a reconciliation of adjusted EBITDA margin, see the table entitled “Reconciliation of Guidance Operating Margin to Guidance Adjusted EBITDA Margin” below.
Revenue in the third quarter of 2024 is expected to be 20
Third quarter estimates for certain other financial items include depreciation of
Conference Call on August 8, 2024
AMN Healthcare Services, Inc. (NYSE: AMN) will host a conference call to discuss its second quarter 2024 financial results and third quarter 2024 outlook on Thursday, August 8, 2024 at 5:00 p.m. Eastern Time. A live webcast of the call can be accessed through AMN Healthcare’s website at http://ir.amnhealthcare.com. Interested parties may participate live via telephone by registering at this link. Registrants will receive confirmation and dial-in details. Following the conclusion of the call, a replay of the webcast will be available at the Company’s investor relations website.
About AMN Healthcare
AMN Healthcare is the leader and innovator in total talent solutions for healthcare organizations across the nation. The Company provides access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights and expertise, AMN Healthcare helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN total talent solutions include direct staffing, vendor-neutral and managed services programs, clinical and interim healthcare leaders, temporary staffing, permanent placement, executive search, vendor management systems, recruitment process outsourcing, predictive modeling, language services, revenue cycle solutions, and other services. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, schools and many other healthcare settings. AMN Healthcare is committed to fostering and maintaining a diverse team that reflects the communities we serve. Our commitment to the inclusion of many different backgrounds, experiences and perspectives enables our innovation and leadership in the healthcare services industry.
The Company’s common stock is listed on the New York Stock Exchange under the symbol “AMN.” For more information about AMN Healthcare, visit www.amnhealthcare.com, where the Company posts news releases, investor presentations, webcasts, SEC filings and other material information. The Company also utilizes email alerts and Really Simple Syndication (“RSS”) as routine channels to supplement distribution of this information. To register for email alerts and RSS, visit http://ir.amnhealthcare.com.
Non-GAAP Measures
This earnings release and the non-GAAP reconciliation tables included with the earnings release contain certain non-GAAP financial information, which the Company provides as additional information, and not as an alternative, to the Company’s condensed consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures include (1) adjusted EBITDA, (2) adjusted EBITDA margin, (3) adjusted net income, and (4) adjusted diluted EPS. The Company provides such non-GAAP financial measures because management believes that they are useful to both management and investors as a supplement, and not as a substitute, when evaluating the Company’s operating performance. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted EPS serve as industry-wide financial measures. The Company uses adjusted EBITDA for making financial decisions, allocating resources and for determining certain incentive compensation objectives. The non-GAAP measures in this release are not in accordance with, or an alternative to, GAAP measures and may be different from non-GAAP measures, or may be calculated differently than other similarly titled non-GAAP measures, reported by other companies. They should not be used in isolation to evaluate the Company’s performance. A reconciliation of non-GAAP measures identified in this release, along with further detail about the use and limitations of certain of these non-GAAP measures, may be found below in the table entitled “Non-GAAP Reconciliation Tables” under the caption entitled “Reconciliation of Non-GAAP Items” and the footnotes thereto or on the Company’s website at https://ir.amnhealthcare.com/financials/quarterly-results. Additionally, from time to time, additional information regarding non-GAAP financial measures, including pro forma measures, may be made available on the Company’s website.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning future demand and supply for contingent staffing and other services, wage and bill rates, the ability of our solutions to meet the needs of our markets and align with our clients, the competitive environment in nurse staffing, our ability to manage expenses, our long-term growth opportunities and sales pipeline, third quarter 2024 financial projections for consolidated and segment revenue, consolidated gross margin, operating margin, SG&A as a percent of revenue, adjusted EBITDA margin, depreciation expense, non-cash amortization expense, share-based compensation expense, integration and other expenses, interest expense, adjusted tax rate, and number of diluted shares outstanding. The Company bases these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are also identified by words such as “believe,” "project," “anticipate,” “expect,” “intend,” “plan,” “will,” “may,” “estimates,” variations of such words and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.
The targets and expectations noted in this release depend upon, among other factors, (i) the ability of our clients to increase the efficiency and effectiveness of their staffing management and recruiting efforts, through predictive analytics, online recruiting, internal travel agencies and float pools, telemedicine or otherwise and successfully hire and retain permanent staff, (ii) the duration and extent to which hospitals and other healthcare entities adjust their utilization of temporary nurses and allied healthcare professionals, physicians, healthcare leaders and other healthcare professionals and workforce technology applications as a result of the labor market or economic conditions, (iii) the magnitude and duration of the effects of the post-COVID-19 pandemic environment or any future pandemic or health crisis on demand and supply trends, our business, its financial condition and our results of operations, (iv) our ability to effectively address client demand by attracting and placing nurses and other clinicians, (v) our ability to recruit and retain sufficient quality healthcare professionals at reasonable costs, (vi) our ability to anticipate and quickly respond to changing marketplace conditions, such as alternative modes of healthcare delivery, reimbursement, or client needs and requirements, including implementing changes that will make our services more tech-enabled and integrated, (vii) our ability to manage the pricing impact that the labor market or consolidation of healthcare delivery organizations may have on our business, (viii) the effects of economic downturns, inflation or slow recoveries, which could result in less demand for our services, increased client initiatives designed to contain costs, including reevaluating their approach as it pertains to contingent labor and managed services programs, other solutions and providers, pricing pressures and negatively impact payments terms and collectability of accounts receivable, (ix) our ability to develop and evolve our current technology offerings and capabilities and implement new infrastructure and technology systems to optimize our operating results and manage our business effectively, (x) our ability and the expense to comply with extensive and complex federal and state laws and regulations related to the conduct of our operations, costs and payment for services and payment for referrals as well as laws regarding employment practices, (xi) our ability to consummate and effectively incorporate acquisitions into our business, (xii) the negative effects that intermediary organizations may have on our ability to secure new and profitable contracts, (xiii) the extent to which the Great Resignation or a future spike in the COVID-19 pandemic or other pandemic or health crisis may disrupt our operations due to the unavailability of our employees or healthcare professionals due to burnout, illness, risk of illness, quarantines, travel restrictions, mandatory vaccination requirements, or other factors that limit our existing or potential workforce and pool of candidates, (xiv) security breaches and cybersecurity incidents, including ransomware, that could compromise our information and systems, which could adversely affect our business operations and reputation and could subject us to substantial liabilities and (xv) the severity and duration of the impact the labor market, economic downturn or COVID-19 pandemic has on the financial condition and cash flow of many hospitals and healthcare systems such that it impairs their ability to make payments to us, timely or otherwise, for services rendered.
For a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above that could cause actual results to differ from those implied by the forward-looking statements contained in this press release, please refer to our most recent Annual Report on Form 10-K for the year ended December 31, 2023. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated and the Company is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Contact:
Randle Reece
Senior Director, Investor Relations & Strategy
866.861.3229
| AMN Healthcare Services, Inc. Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share amounts) (unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Revenue | $ | 740,685 | $ | 991,299 | $ | 820,878 | $ | 1,561,563 | $ | 2,117,522 | |||||||||
| Cost of revenue | 510,858 | 661,018 | 563,372 | 1,074,230 | 1,418,395 | ||||||||||||||
| Gross profit | 229,827 | 330,281 | 257,506 | 487,333 | 699,127 | ||||||||||||||
| Gross margin | 31.0 | % | 33.3 | % | 31.4 | % | 31.2 | % | 33.0 | % | |||||||||
| Operating expenses: | |||||||||||||||||||
| Selling, general and administrative (SG&A) | 149,044 | 201,771 | 174,842 | 323,886 | 407,370 | ||||||||||||||
| SG&A as a % of revenue | 20.1 | % | 20.4 | % | 21.3 | % | 20.7 | % | 19.2 | % | |||||||||
| Depreciation and amortization (exclusive of depreciation included in cost of revenue) | 43,101 | 36,847 | 42,719 | 85,820 | 74,424 | ||||||||||||||
| Total operating expenses | 192,145 | 238,618 | 217,561 | 409,706 | 481,794 | ||||||||||||||
| Income from operations | 37,682 | 91,663 | 39,945 | 77,627 | 217,333 | ||||||||||||||
| Operating margin (1) | 5.1 | % | 9.2 | % | 4.9 | % | 5.0 | % | 10.3 | % | |||||||||
| Interest expense, net, and other | 15,715 | 12,175 | 16,628 | 32,343 | 22,434 | ||||||||||||||
| Income before income taxes | 21,967 | 79,488 | 23,317 | 45,284 | 194,899 | ||||||||||||||
| Income tax expense | 5,730 | 18,582 | 5,989 | 11,719 | 49,883 | ||||||||||||||
| Net income | $ | 16,237 | $ | 60,906 | $ | 17,328 | $ | 33,565 | $ | 145,016 | |||||||||
| Net income as a % of revenue | 2.2 | % | 6.1 | % | 2.1 | % | 2.1 | % | 6.8 | % | |||||||||
| Other comprehensive income: | |||||||||||||||||||
| Unrealized gains on available-for-sale securities, net, and other | 182 | 50 | 84 | 266 | 196 | ||||||||||||||
| Other comprehensive income | 182 | 50 | 84 | 266 | 196 | ||||||||||||||
| Comprehensive income | $ | 16,419 | $ | 60,956 | $ | 17,412 | $ | 33,831 | $ | 145,212 | |||||||||
| Net income per common share: | |||||||||||||||||||
| Basic | $ | 0.43 | $ | 1.56 | $ | 0.45 | $ | 0.88 | $ | 3.60 | |||||||||
| Diluted | $ | 0.42 | $ | 1.55 | $ | 0.45 | $ | 0.88 | $ | 3.58 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 38,173 | 39,151 | 38,114 | 38,144 | 40,258 | ||||||||||||||
| Diluted | 38,234 | 39,341 | 38,197 | 38,218 | 40,454 | ||||||||||||||
| AMN Healthcare Services, Inc. Condensed Consolidated Balance Sheets (dollars in thousands) (unaudited) | ||||||||
| June 30, 2024 | December 31, 2023 | June 30, 2023 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 48,038 | $ | 32,935 | $ | 7,013 | ||
| Accounts receivable, net | 508,913 | 623,488 | 579,926 | |||||
| Accounts receivable, subcontractor | 81,296 | 117,703 | 168,231 | |||||
| Prepaid and other current assets | 66,510 | 67,559 | 52,066 | |||||
| Total current assets | 704,757 | 841,685 | 807,236 | |||||
| Restricted cash, cash equivalents and investments | 71,749 | 68,845 | 71,564 | |||||
| Fixed assets, net | 197,059 | 191,385 | 177,417 | |||||
| Other assets | 256,951 | 236,796 | 219,781 | |||||
| Goodwill | 1,116,307 | 1,111,549 | 935,779 | |||||
| Intangible assets, net | 424,504 | 474,134 | 432,366 | |||||
| Total assets | $ | 2,771,327 | $ | 2,924,394 | $ | 2,644,143 | ||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 283,176 | $ | 343,847 | $ | 327,538 | ||
| Accrued compensation and benefits | 268,354 | 278,536 | 261,629 | |||||
| Other current liabilities | 22,360 | 33,738 | 84,548 | |||||
| Total current liabilities | 573,890 | 656,121 | 673,715 | |||||
| Revolving credit facility | 345,000 | 460,000 | 190,000 | |||||
| Notes payable, net | 845,280 | 844,688 | 844,097 | |||||
| Deferred income taxes, net | 20,551 | 23,350 | 6,986 | |||||
| Other long-term liabilities | 109,747 | 108,979 | 163,048 | |||||
| Total liabilities | 1,894,468 | 2,093,138 | 1,877,846 | |||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | 876,859 | 831,256 | 766,297 | |||||
| Total liabilities and stockholders’ equity | $ | 2,771,327 | $ | 2,924,394 | $ | 2,644,143 | ||
| AMN Healthcare Services, Inc. Summary Condensed Consolidated Statements of Cash Flows (dollars in thousands) (unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Net cash provided by operating activities | $ | 99,515 | $ | 197,667 | $ | 81,386 | $ | 180,901 | $ | 241,101 | |||||||||
| Net cash used in investing activities | (22,332 | ) | (22,428 | ) | (21,399 | ) | (43,731 | ) | (54,859 | ) | |||||||||
| Net cash used in financing activities | (80,108 | ) | (203,287 | ) | (38,973 | ) | (119,081 | ) | (247,744 | ) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (2,925 | ) | (28,048 | ) | 21,014 | 18,089 | (61,502 | ) | |||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 129,287 | 104,418 | 108,273 | 108,273 | 137,872 | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 126,362 | $ | 76,370 | $ | 129,287 | $ | 126,362 | $ | 76,370 | |||||||||
| AMN Healthcare Services, Inc. Non-GAAP Reconciliation Tables (dollars in thousands, except per share data) (unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Reconciliation of Non-GAAP Items: | |||||||||||||||||||
| Net income | $ | 16,237 | $ | 60,906 | $ | 17,328 | $ | 33,565 | $ | 145,016 | |||||||||
| Income tax expense | 5,730 | 18,582 | 5,989 | 11,719 | 49,883 | ||||||||||||||
| Income before income taxes | 21,967 | 79,488 | 23,317 | 45,284 | 194,899 | ||||||||||||||
| Interest expense, net, and other | 15,715 | 12,175 | 16,628 | 32,343 | 22,434 | ||||||||||||||
| Income from operations | 37,682 | 91,663 | 39,945 | 77,627 | 217,333 | ||||||||||||||
| Depreciation and amortization | 43,101 | 36,847 | 42,719 | 85,820 | 74,424 | ||||||||||||||
| Depreciation (included in cost of revenue) (2) | 1,637 | 1,387 | 1,798 | 3,435 | 2,644 | ||||||||||||||
| Share-based compensation | 6,357 | 4,818 | 7,739 | 14,096 | 15,136 | ||||||||||||||
| Acquisition, integration, and other costs (3) | 5,310 | 6,103 | 5,465 | 10,775 | 10,845 | ||||||||||||||
| Legal settlement accrual changes (4) | — | 21,000 | — | — | 21,000 | ||||||||||||||
| Adjusted EBITDA (5) | $ | 94,087 | $ | 161,818 | $ | 97,666 | $ | 191,753 | $ | 341,382 | |||||||||
| Adjusted EBITDA margin (6) | 12.7 | % | 16.3 | % | 11.9 | % | 12.3 | % | 16.1 | % | |||||||||
| Net income | $ | 16,237 | $ | 60,906 | $ | 17,328 | $ | 33,565 | $ | 145,016 | |||||||||
| Adjustments: | |||||||||||||||||||
| Amortization of intangible assets | 24,744 | 22,120 | 24,886 | 49,630 | 43,777 | ||||||||||||||
| Acquisition, integration, and other costs (3) | 5,310 | 6,103 | 5,465 | 10,775 | 10,845 | ||||||||||||||
| Legal settlement accrual changes (4) | — | 21,000 | — | — | 21,000 | ||||||||||||||
| Cumulative effect of change in accounting principle (7) | — | — | — | — | 2,974 | ||||||||||||||
| Tax effect on above adjustments | (7,814 | ) | (12,798 | ) | (7,891 | ) | (15,705 | ) | (20,435 | ) | |||||||||
| Tax effect of COLI fair value changes (8) | (910 | ) | (1,744 | ) | (2,734 | ) | (3,644 | ) | (3,551 | ) | |||||||||
| Tax deficiencies (benefits) related to equity awards and ESPP (9) | (235 | ) | (1,798 | ) | 174 | (61 | ) | (2,480 | ) | ||||||||||
| Adjusted net income (10) | $ | 37,332 | $ | 93,789 | $ | 37,228 | $ | 74,560 | $ | 197,146 | |||||||||
| GAAP diluted net income per share (EPS) | $ | 0.42 | $ | 1.55 | $ | 0.45 | $ | 0.88 | $ | 3.58 | |||||||||
| Adjustments | 0.56 | 0.83 | 0.52 | 1.07 | 1.29 | ||||||||||||||
| Adjusted diluted EPS (11) | $ | 0.98 | $ | 2.38 | $ | 0.97 | $ | 1.95 | $ | 4.87 | |||||||||
| AMN Healthcare Services, Inc. Supplemental Segment Financial and Operating Data (dollars in thousands, except operating data) (unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2024 | 2023 | |||||||||||||||
| Revenue | |||||||||||||||||||
| Nurse and allied solutions | $ | 442,399 | $ | 689,015 | $ | 519,297 | $ | 961,696 | $ | 1,513,495 | |||||||||
| Physician and leadership solutions | 186,065 | 176,229 | 188,797 | 374,862 | 341,986 | ||||||||||||||
| Technology and workforce solutions | 112,221 | 126,055 | 112,784 | 225,005 | 262,041 | ||||||||||||||
| $ | 740,685 | $ | 991,299 | $ | 820,878 | $ | 1,561,563 | $ | 2,117,522 | ||||||||||
| Segment operating income (12) | |||||||||||||||||||
| Nurse and allied solutions | $ | 46,207 | $ | 102,993 | $ | 53,342 | $ | 99,549 | $ | 216,438 | |||||||||
| Physician and leadership solutions | 21,661 | 26,456 | 22,222 | 43,883 | 51,556 | ||||||||||||||
| Technology and workforce solutions | 47,259 | 55,623 | 44,270 | 91,529 | 122,633 | ||||||||||||||
| 115,127 | 185,072 | 119,834 | 234,961 | 390,627 | |||||||||||||||
| Unallocated corporate overhead (13) | 21,040 | 23,254 | 22,168 | 43,208 | 49,245 | ||||||||||||||
| Adjusted EBITDA (5) | $ | 94,087 | $ | 161,818 | $ | 97,666 | $ | 191,753 | $ | 341,382 | |||||||||
| Gross Margin | |||||||||||||||||||
| Nurse and allied solutions | 23.8 | % | 26.7 | % | 25.1 | % | 24.5 | % | 26.3 | % | |||||||||
| Physician and leadership solutions | 30.5 | % | 35.1 | % | 31.6 | % | 31.0 | % | 35.2 | % | |||||||||
| Technology and workforce solutions | 60.2 | % | 66.7 | % | 59.9 | % | 60.0 | % | 69.2 | % | |||||||||
| Operating Data: | |||||||||||||||||||
| Nurse and allied solutions | |||||||||||||||||||
| Average travelers on assignment (14) | 10,302 | 13,597 | 11,524 | 10,913 | 14,359 | ||||||||||||||
| Physician and leadership solutions | |||||||||||||||||||
| Days filled (15) | 56,244 | 49,976 | 56,849 | 113,093 | 96,876 | ||||||||||||||
| Revenue per day filled (16) | $ | 2,538 | $ | 2,439 | $ | 2,555 | $ | 2,546 | $ | 2,360 | |||||||||
| As of June 30, | As of December 31, | ||||
| 2024 | 2023 | 2023 | |||
| Leverage ratio (17) | 2.6 | 1.5 | 2.2 | ||
| AMN Healthcare Services, Inc. Additional Supplemental Non-GAAP Disclosure Reconciliation of Guidance Operating Margin to Guidance Adjusted EBITDA Margin (unaudited) | |||||
| Three Months Ended | |||||
| September 30, 2024 | |||||
| Low(18) | High(18) | ||||
| Operating margin | 2.1 | % | 2.9 | % | |
| Depreciation and amortization (total) | 6.6 | % | 6.4 | % | |
| EBITDA margin | 8.7 | % | 9.3 | % | |
| Share-based compensation | 0.9 | % | 0.9 | % | |
| Acquisition, integration, and other costs | 0.9 | % | 0.9 | % | |
| Adjusted EBITDA margin | 10.6 | % | 11.1 | % | |
| (1) | Operating margin represents income from operations divided by revenue. |
| (2) | A portion of depreciation expense for AMN Language Services is included in cost of revenue. We exclude the impact of depreciation included in cost of revenue from the calculation of adjusted EBITDA. |
| (3) | Acquisition, integration, and other costs include acquisition and integration costs, net changes in the fair value of contingent consideration liabilities for recently acquired companies, certain legal expenses, restructuring expenses and other costs associated with exit or disposal activities, and certain nonrecurring expenses, which we exclude from the calculation of adjusted EBITDA, adjusted net income, and adjusted diluted EPS because we believe that these expenses are not indicative of the Company’s operating performance. For the three and six months ended June 30, 2024, acquisition and integration costs were approximately |
| (4) | During the three months ended June 30, 2023, the Company recorded an increase to its legal accrual for a wage and hour claim in connection with reaching an agreement to settle the matter in its entirety. Since the settlement is largely unrelated to the Company’s operating performance, we excluded its impact in the calculations of adjusted EBITDA, adjusted net income, and adjusted diluted EPS. |
| (5) | Adjusted EBITDA represents net income plus interest expense (net of interest income) and other, income tax expense (benefit), depreciation and amortization, depreciation (included in cost of revenue), acquisition, integration, and other costs, restructuring expenses, certain legal expenses, and share-based compensation. Management believes that adjusted EBITDA provides an effective measure of the Company’s results, as it excludes certain items that management believes are not indicative of the Company’s operating performance. Adjusted EBITDA is not intended to represent cash flows for the period, nor has it been presented as an alternative to income from operations or net income as an indicator of operating performance. Although management believes that some of the items excluded from adjusted EBITDA are not indicative of the Company’s operating performance, these items do impact the statement of comprehensive income, and management therefore utilizes adjusted EBITDA as an operating performance measure in conjunction with GAAP measures such as net income. |
| (6) | Adjusted EBITDA margin represents adjusted EBITDA divided by revenue. |
| (7) | As a result of a change in accounting principle on January 1, 2023 related to forfeitures of share-based awards, the Company recognized the cumulative effect of the change in share-based compensation expense during the six months ended June 30, 2023. The cumulative effect of the change in accounting principle is immaterial to prior periods and, therefore, was recognized in the period of the change. Since the cumulative effect is unrelated to the Company’s operating performance for the six months ended June 30, 2023, we excluded its impact in the calculation of adjusted net income and adjusted diluted EPS. |
| (8) | The Company records net tax expense (benefit) related to the income tax treatment of the fair value changes in the cash surrender value of its company owned life insurance. Since this change in fair value is unrelated to the Company’s operating performance, we excluded the impact on adjusted net income and adjusted diluted EPS. |
| (9) | The consolidated effective tax rate is affected by the recording of tax benefits and tax deficiencies relating to equity awards vested during the period and tax benefits recognized for disqualifying dispositions related to our employee stock purchase plan (“ESPP”). The magnitude of the impact of tax benefits and tax deficiencies generated in the future related to equity awards and ESPP is dependent upon the Company’s future grants of share-based compensation, the Company’s future stock price on the date equity awards vest in relation to the fair value of the awards on the grant date, the Company’s future stock price on either the ESPP’s offering date or purchase date, whichever is lower, and the length of time the shares issued under the ESPP are held by employees. Since these tax benefits and tax deficiencies related to equity awards and ESPP are largely unrelated to our income before taxes and are unrepresentative of our normal effective tax rate, we excluded their impact in the calculation of adjusted net income and adjusted diluted EPS. |
| (10) | Adjusted net income represents GAAP net income excluding the impact of the (A) amortization of intangible assets, (B) acquisition, integration, and other costs, (C) certain legal expenses, (D) changes in fair value of equity investments and instruments, (E) deferred financing related costs, (F) cumulative effect of change in accounting principle, (G) tax effect, if any, of the foregoing adjustments, (H) excess tax benefits and tax deficiencies relating to equity awards vested and ESPP, (I) net tax expense (benefit) related to the income tax treatment of fair value changes in the cash surrender value of its company owned life insurance, and (J) restructuring tax benefits. Management included this non-GAAP measure to provide investors and prospective investors with an alternative method for assessing the Company’s operating results in a manner that is focused on its operating performance and to provide a more consistent basis for comparison between periods. However, investors and prospective investors should note that this non-GAAP measure involves judgment by management (in particular, judgment as to what is classified as a special item to be excluded in the calculation of adjusted net income). Although management believes the items in the calculation of adjusted net income are not indicative of the Company’s operating performance, these items do impact the statement of comprehensive income, and management therefore utilizes adjusted net income as an operating performance measure in conjunction with GAAP measures such as GAAP net income. |
| (11) | Adjusted diluted EPS represents adjusted net income divided by diluted weighted average common shares outstanding. Management included this non-GAAP measure to provide investors and prospective investors with an alternative method for assessing the Company’s operating results in a manner that is focused on its operating performance and to provide a more consistent basis for comparison between periods. However, investors and prospective investors should note that this non-GAAP measure involves judgment by management (in particular, judgment as to what is classified as a special item to be excluded in the calculation of adjusted net income). Although management believes the items in the calculation of adjusted net income are not indicative of the Company’s operating performance, these items do impact the statement of comprehensive income, and management therefore utilizes adjusted diluted EPS as an operating performance measure in conjunction with GAAP measures such as GAAP diluted EPS. |
| (12) | Segment operating income represents net income plus interest expense (net of interest income) and other, income tax expense (benefit), depreciation and amortization, depreciation (included in cost of revenue), unallocated corporate overhead, acquisition, integration, and other costs, legal settlement accrual changes, and share-based compensation. |
| (13) | Unallocated corporate overhead (as presented in the tables above) consists of unallocated corporate overhead (as reflected in our quarterly and annual financial statements filed with the SEC) less acquisition, integration, and other costs and legal settlement accrual changes. |
| (14) | Average travelers on assignment represents the average number of nurse and allied healthcare professionals on assignment during the period presented. |
| (15) | Days filled is calculated by dividing the locum tenens hours filled during the period by eight hours. |
| (16) | Revenue per day filled represents revenue of the Company’s locum tenens business divided by days filled for the period presented. |
| (17) | Leverage ratio represents the ratio of the consolidated funded indebtedness (as calculated per the Company’s credit agreement) at the end of the subject period to the consolidated adjusted EBITDA (as calculated per the Company’s credit agreement) for the 12-month period ended at the end of the subject period. |
| (18) | Guidance percentage metrics are approximate. |
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