SAN DIEGO, Aug. 6 /PRNewswire-FirstCall/ -- AMN Healthcare
Services, Inc. (NYSE:AHS) today announced operating results for the
second quarter 2009, which were in line with management's
expectations. Financial highlights for the three months ended June
30, 2009 include: % Chg % Chg Q2 2009 Q2 2008 Q1 2009
------------------------------------------------------------
Revenue $199 million (36%) (20%)
------------------------------------------------------------ Net
Income $4 million (49%) NM
------------------------------------------------------------
Diluted EPS $0.13 (48%) NM
------------------------------------------------------------ Cash
Flow from Operations $36 million 206% (3%)
------------------------------------------------------------
Adjusted EBITDA* $18 million (27%) 3%
------------------------------------------------------------
Adjusted Diluted EPS* $0.17 (32%) 55%
------------------------------------------------------------ * See
"Supplemental Financial and Operating Data" for a reconciliation of
non-GAAP items. NM - Not meaningful "Our focus on client
relationships and quality as well as our diversified service
offerings have enabled AMN Healthcare to maintain our leading
market position, improve gross margins and strengthen our balance
sheet through the prolonged economic downturn," said Susan R.
Nowakowski, President and Chief Executive Officer of AMN
Healthcare. "We continue to take an aggressive and disciplined
approach in streamlining and right-sizing our infrastructure,
enabling us to adjust to short-term volume trends, while operating
with an improved cost structure going forward. At the same time, we
are also maintaining our long-term strategy of investing in our
future through progress with new service lines." Key business
highlights include: -- Strong market leadership position, with
stable pricing and gross margins across service lines; -- Signs of
stabilization and improvement in Nursing and Allied orders; --
Progress in new market expansion areas of Emergency Medicine
Physician staffing, Home Health Nurse and Allied staffing, and
Recruitment Process Outsourcing; -- Significant debt reduction and
increased cash that position the company to capture additional
market opportunities for future growth; -- Cost structure
improvements and more streamlined infrastructure for improved
profitability as the market rebounds. For the second quarter of
2009, revenue for the Nurse and Allied staffing segment was $111
million, a decrease of 48% from the same quarter last year and 32%
sequentially. The Locum Tenens staffing segment generated revenue
of $79 million, a decrease of 6% from the same quarter last year
and an increase of 6% sequentially. Gross margin in the second
quarter of 2009 was 27.0%, an increase of 140 bps as compared to
25.6% for the previous quarter and an increase of 60 bps as
compared to 26.4% for the same quarter last year. The year over
year and sequential increase mainly reflected a shift in business
mix and tight management of direct costs. Selling, general and
administrative ("SG&A") expenses (excluding restructuring
costs) for the second quarter of 2009 were 19.0% as a percentage of
revenue as compared to 19.2% in the same quarter last year.
SG&A declined by $22.3 million, or 37%, over the same period in
the prior year and by $12.2 million, or 24%, sequentially, due to
cost-saving initiatives taking hold as well as $3.5 million in
favorable insurance reserve adjustments. As a result of certain
cost-reduction actions, the company recorded $2.2 million in
restructuring charges, consisting mainly of severance payments and
lease-related charges associated with various facility, branding
and back-office consolidations. Second quarter GAAP net earnings
per diluted share was $0.13, including a $0.04 negative impact from
restructuring charges, reflecting a decrease compared to $0.25 in
the same period in the prior year. As of June 30, 2009 cash and
cash equivalents totaled $23.5 million, compared to $11.3 million
as of December 31, 2008. Total debt outstanding was $90.0 million
as of June 30, 2009, reflecting a reduction in debt of $56.3
million since December 31, 2008. Total average diluted shares
outstanding for the second quarter of 2009 were 32.9 million.
Business Trends and Outlook During the second quarter of 2009,
Nursing and Allied orders continued to show signs of stabilization,
although still at levels significantly lower than prior year. Locum
Tenens volume (days filled) increased slightly over the first
quarter. Pricing and gross margins remained relatively stable
overall. Nowakowski noted continued signs of stabilization and some
recent improvement in orders for travel nurse and allied
professionals which should translate into stabilizing volumes
during the third quarter. Locum Tenens volume and physician
permanent placements are expected to be steady compared with the
prior quarter. Based on these trends, third quarter consolidated
revenue is expected to decline sequentially by approximately 15%.
The majority of this decline is driven by volume trends in nurse
staffing resulting from the earlier drop in demand levels. Overall
gross margins are anticipated to remain consistent. "We are
continuing to focus on maintaining strong relationships and
securing preferred contracts with our clients, as well as nurturing
our recent new service offerings such as Emergency Medicine
staffing, Home Health staffing, and Recruitment Process
Outsourcing," added Nowakowski. "At the same time, we are prudently
managing our cost structure and balance sheet in order to position
ourselves for future investments in new market opportunities that
contribute strategic synergies to our core service lines. Despite
the uncertainty of when economic recovery will occur, we remain
confident in the long-term fundamentals of our industry and focused
on laying the groundwork for innovation and growth in future years
to drive shareholder value." About AMN Healthcare Services AMN
Healthcare Services, Inc. is the largest healthcare staffing
company in the United States and a leader in all three of its
business segments: travel nurse and allied staffing, locum tenens
staffing (temporary physician staffing), and physician permanent
placement services. AMN Healthcare recruits healthcare
professionals both nationally and internationally and places them
on variable lengths of assignments and in permanent positions at
acute-care hospitals, physician practice groups and other
healthcare settings throughout the United States. For more
information, visit http://www.amnhealthcare.com/. Conference Call
on August 6, 2009 AMN Healthcare Services, Inc.'s second quarter
2009 conference call will be held on Thursday, August 6, 2009, at
5:00 p.m., Eastern Time. A live webcast of the call can be accessed
through AMN Healthcare's website at
http://www.amnhealthcare.com/investors. Please log in at least 10
minutes prior to the conference call in order to download the
applicable audio software. Interested parties may participate live
via telephone by dialing (800) 230-1092 in the U.S. or (612)
332-0335 internationally. Following the conclusion of the call, a
replay of the webcast will be available at the company's website.
Alternatively, a telephonic replay of the call will be available at
7:30 p.m. Eastern Time on August 6, 2009, and can be accessed until
August 20, 2009 at midnight Eastern Time, by calling (800) 475-6701
in the U.S. or (320) 365-3844 internationally, with access code
106454. Non-GAAP Measures This earnings release contains certain
non-GAAP financial information. These measures are not in
accordance with, or an alternative to, generally accepted
accounting principles in the United States ("GAAP"), and may be
different from non-GAAP measures reported by other companies. From
time to time, additional information regarding non-GAAP financial
measures may be made available on the Company's website at
http://www.amnhealthcare.com/investors. 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.
The company based these forward-looking statements on its current
expectations and projections about future events. Actual results
could differ materially from those discussed in, or implied by,
these forward-looking statements. Forward-looking statements are
identified by words such as "believe," "anticipate," "expect,"
"intend," "plan," "will," "may" 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. Factors that could cause actual results
to differ from those implied by the forward-looking statements
contained in this press release are set forth in the company's
Annual Report on Form 10-K for the year ended December 31, 2008 and
its other quarterly and periodic reports filed with the SEC. These
statements reflect the company's current beliefs and are based upon
information currently available to it. Be advised that developments
subsequent to this press release are likely to cause these
statements to become outdated with the passage of time. Contact:
Amy C. Chang Vice President, Investor Relations 866.861.3229 AMN
Healthcare Services, Inc. Condensed Consolidated Statements of
Income (dollars in thousands, except per share amounts) (unaudited)
Three Months Ended June 30, 2009 2008 % Chg
-----------------------------------------------------------------
Revenue $199,140 $312,691 (36.3%) Cost of revenue 145,463 230,153
(36.8%) ------- ------- Gross profit 53,677 82,538 (35.0%) ------
------ 27.0% 26.4% Operating expenses: Selling, general and
administrative 37,840 60,117 (37.1%) 19.0% 19.2% Restructuring
Charges 2,152 - 100% Impairment Charges - - 0% Depreciation and
amortization 3,442 3,738 (7.9%) ----- ----- Total operating
expenses 43,434 63,855 (32.0%) ------ ------ Income (loss) from
operations 10,243 18,683 (45.2%) 5.1% 6.0% Interest expense, net
2,320 2,660 (12.8%) ----- ----- Income (loss) before income taxes
7,923 16,023 (50.6%) Income tax expense 3,549 7,508 (52.7%) -----
----- Net income (loss) $4,374 $8,515 (48.6%) ====== ====== 2.2%
2.7% Net income (loss) per common share: Basic $0.13 $0.25 (48.0%)
===== ===== Diluted $0.13 $0.25 (48.0%) ===== ===== Weighted
average common shares outstanding: Basic 32,621 33,833 (3.6%)
====== ====== Diluted 32,918 34,308 (4.1%) ====== ====== Six Months
Ended June 30, 2009 2008 % Chg
-----------------------------------------------------------------
Revenue $448,735 $606,284 (26.0%) Cost of revenue 331,075 446,291
(25.8%) ------- ------- Gross profit 117,660 159,993 (26.5%)
------- ------- 26.2% 26.4% Operating expenses: Selling, general
and administrative 87,920 115,220 (23.7%) 19.6% 19.0% Restructuring
Charges 5,070 - 100% Impairment Charges 175,707 - 100% Depreciation
and amortization 6,909 7,088 (2.5%) ----- ----- Total operating
expenses 275,606 122,308 125.3% ------- ------- Income (loss) from
operations (157,946) 37,685 NM (35.2%) 6.2% Interest expense, net
4,519 5,471 (17.4%) ----- ----- Income (loss) before income taxes
(162,465) 32,214 NM Income tax expense (45,005) 14,976 NM --------
------ Net income (loss) $(117,460) $17,238 NM ========= =======
(26.2%) 2.8% Net income (loss) per common share: Basic $(3.60)
$0.51 NM ====== ===== Diluted $(3.60) $0.50 NM ====== =====
Weighted average common shares outstanding: Basic 32,599 33,832
(3.6%) ====== ====== Diluted 32,599 34,244 (4.8%) ====== ====== NM
- Not meaningful AMN Healthcare Services, Inc. Supplemental
Financial and Operating Data (dollars in thousands, except
operating data) (unaudited) Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------------------- % % %
% of of of of 2009 Rev 2008 Rev 2009 Rev 2008 Rev Revenue Nurse and
allied healthcare staffing $111,136 $215,342 $274,986 $419,327
Locum tenens staffing 79,097 83,857 153,888 160,210 Physician
permanent placement services 8,907 13,492 19,861 26,747 -----
------ ------ ------ $199,140 $312,691 $448,735 $606,284 ========
======== ======== ======== Reconciliation of Non-GAAP Items:
Adjusted EBITDA(1) Nurse and allied healthcare staffing $6,796 6.1%
$16,692 7.8% $17,387 6.3% $32,173 7.7% Locum tenens staffing 8,985
11.4% 4,247 5.1% 12,806 8.3% 9,902 6.2% Physician permanent
placement services 2,211 24.8% 3,864 28.6% 5,261 26.5% 7,203 26.9%
----- ----- ----- ----- 17,992 9.0% 24,803 7.9% 35,454 7.9% 49,278
8.1% Depreciation and amortization 3,442 3,738 6,909 7,088
Stock-based compensation 2,155 2,382 4,830 4,505 Restructuring
charges 2,152 - 5,070 - Impairment charges - - 175,707 -
Non-recurring legal expenses - - 884 - Interest expense, net 2,320
2,660 4,519 5,471 ----- ----- ----- ----- Income (loss) before
income taxes 7,923 16,023 (162,465) 32,214 Income tax expense 3,549
7,508 (45,005) 14,976 ----- ----- ------- ------ Net income (loss)
$4,374 $8,515 $(117,460) $17,238 ====== ====== ========= =======
GAAP based diluted net income (loss) per share (EPS) $0.13 $(3.60)
Adjustments: Restructuring charges 0.04 0.09 Impairment charges -
3.77 Non-recurring legal expenses - 0.02 --- ---- Adjusted diluted
earnings per share (2) $0.17 $0.28 ===== ===== Three Months Ended
Six Months Ended June 30, June 30, --------------------------
---------------------------- % % 2009 2008 Chg 2009 2008 Chg Gross
Margin Nurse and allied healthcare staffing 25.0% 24.5% 23.8% 24.3%
Locum tenens staffing 26.1% 25.8% 26.2% 26.3% Physician permanent
placement services 58.8% 59.7% 60.3% 60.6% Operating Data:
--------------- Nurse and allied healthcare staffing Average
travelers on assignment (3) 3,661 7,207 (49.2%) 4,575 7,047 (35.1%)
Revenue per traveler per day(4) $333.59 $328.35 1.6% $332.08
$326.95 1.6% Gross profit per traveler per day(4) $83.36 $80.52
3.5% $78.99 $79.30 (0.4%) Locum tenens staffing Days filled (5)
54,708 57,859 (5.4%) 107,105 110,558 (3.1%) Revenue per day filled
(5) $1,445.80 $1,449.33 (0.2%) $1,436.80 $1,449.10 (0.8%) Gross
profit per day filled(5) $377.79 $374.62 0.8% $375.94 $380.50
(1.2%) As of June 30, ---------- 2009 2008 Leverage Ratio (6) 1.1
1.6 (1) Adjusted EBITDA represents net income (loss) plus interest
expense (net of interest income), income taxes, depreciation and
amortization, restructuring charges, impairment charges,
non-recurring legal expenses and stock-based compensation expense.
Management presents adjusted EBITDA because it believes that
adjusted EBITDA is a useful supplement to net income as an
indicator of operating performance. Management believes that
adjusted EBITDA is an industry wide financial measure that is
useful both to management and investors when evaluating the
company's performance. Management also uses adjusted EBITDA for
planning purposes. Management uses adjusted EBITDA to evaluate the
company's performance because it believes that adjusted EBITDA more
accurately reflects the company's results, as it excludes certain
items, in particular stock-based compensation charges that
management believes are not indicative of the company's operating
performance. However, adjusted EBITDA is not intended to represent
cash flows for the period, nor has it been presented as an
alternative to operating or net income as an indicator of operating
performance, and it should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
GAAP. As defined, adjusted EBITDA is not necessarily comparable to
other similarly titled captions of other companies due to potential
inconsistencies in the method of calculation. While 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 income statement, and management therefore utilizes
adjusted EBITDA as an operating performance measure in conjunction
with GAAP measures such as net income. (2) Adjusted EPS represents
GAAP EPS plus restructuring and impairment charges and
non-recurring legal expenses. Management presents adjusted EPS
because it believes that adjusted EPS is a useful supplement to
diluted net loss per share as an indicator of operating
performance. Management believes such a measure provides a picture
of the company's results that is more comparable among periods
since it excludes the impact of items that may recur occasionally,
but tend to be irregular as to timing, thereby distorting
comparisons between periods. However, 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 from adjusted EPS). As defined, adjusted EPS is not
necessarily comparable to other similarly titled captions of other
companies due to potential inconsistencies in the method of
calculation. While management believes that some of the items
excluded from adjusted EPS are not indicative of the company's
operating performance, these items do impact the income statement,
and management therefore utilizes adjusted EPS as an operating
performance measure in conjunction with GAAP measures such as GAAP
EPS. (3) Average travelers on assignment represents the average
number of nurse and allied healthcare professionals on assignment
during the period presented. (4) Revenue per traveler per day and
gross profit per traveler per day represent the revenue and gross
profit of the company's nurse and allied healthcare staffing
segment divided by average travelers on assignment, divided by the
number of days in the period presented. (5) Days filled is
calculated by dividing the locum tenens hours filled during the
period by 8 hours. Revenue per day filled and gross profit per day
filled represent revenue and gross profit of the company's locum
tenens staffing segment divided by days filled for the period
presented. (6) Leverage ratio represents the ratio of the total
debt outstanding at the end of the period to the Adjusted EBITDA
for the past twelve months. AMN Healthcare Services, Inc. Condensed
Consolidated Balance Sheets (in thousands) (unaudited) June 30,
March 31, December 31, 2009 2009 2008 ---- ---- ---- Assets Current
assets: Cash and cash equivalents $23,488 $16,675 $11,316 Accounts
receivable, net 114,542 148,376 182,562 Prepaid expenses 8,867
10,585 9,523 Income taxes receivable 1,425 4,448 3,440 Deferred
income taxes, net 18,085 22,417 18,085 Other current assets 2,911
3,376 4,901 ----- ----- ----- Total current assets 169,318 205,877
229,827 Fixed assets, net 24,034 24,938 24,018 Deposits and other
assets 12,056 10,579 13,252 Goodwill 79,868 79,868 252,875
Intangible assets, net 117,738 118,940 122,845 ------- -------
------- Total assets $403,014 $440,202 $642,817 ======== ========
======== Liabilities and stockholders' equity Current liabilities:
Bank overdraft $3,274 $- $3,995 Accounts payable and accrued
expenses 20,837 24,667 24,420 Accrued compensation and benefits
31,941 36,728 44,871 Revolving credit facility - 6,500 31,500
Current portion of notes payable 12,201 14,824 14,580 Deferred
revenue 5,699 6,204 7,184 Other current liabilities 15,892 15,060
14,722 ------ ------ ------ Total current liabilities 89,844
103,983 141,272 Notes payable, less current portion 77,781 98,208
100,236 Deferred income taxes, net 7,382 13,342 58,466 Other
long-term liabilities 56,592 59,532 58,710 ------ ------ ------
Total liabilities 231,599 275,065 358,684 ------- ------- -------
Stockholders' equity 171,415 165,137 284,133 ------- -------
------- Total liabilities and stockholders' equity $403,014
$440,202 $642,817 ======== ======== ======== AMN Healthcare
Services, Inc. Condensed Consolidated Cash Flow Statement (in
thousands) (unaudited) Three Months Ended Six Months Ended June 30,
June 30, June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ----
Net cash provided by operating activities $36,388 $11,883 $73,945
$28,756 Net cash used in investing activities (1,204) (11,064)
(2,434) (44,465) Net cash provided by (used in) financing
activities (28,420) (345) (59,374) 5,589 Effect of exchange rates
on cash 49 47 35 (19) --- --- --- ---- Net increase (decrease) in
cash and cash equivalents 6,813 521 12,172 (10,139) Cash and cash
equivalents at beginning of period 16,675 7,835 11,316 18,495
------ ----- ------ ------ Cash and cash equivalents at end of
period $23,488 $8,356 $23,488 $8,356 ======= ====== ======= ======
(Logo: http://www.newscom.com/cgi-bin/prnh/20060718/LATU121LOGO)
http://www.newscom.com/cgi-bin/prnh/20060718/LATU121LOGO
http://photoarchive.ap.org/ DATASOURCE: AMN Healthcare Services,
Inc. CONTACT: Amy C. Chang, Vice President, Investor Relations of
AMN Healthcare Services, Inc., 1-866-861-3229 Web Site:
http://www.amnhealthcare.com/
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