SAN DIEGO, Oct. 29 /PRNewswire-FirstCall/ -- AMN Healthcare
Services, Inc. (NYSE:AHS) today announced operating results for the
third quarter 2009. Financial highlights for the three months ended
September 30, 2009 include: Q3 2009 (In millions, except per share
% Chg % Chg amounts) Q3 2008 Q2 2009 ----------------- -------
------- Revenue $166.4 (47%) (16%) ------- ------ ---- ---- Gross
Profit $45.6 (44%) (15%) ------------ ----- ---- ---- Net Loss $2.0
NM NM -------- ---- --- -- Loss per Share $0.06 NM NM
-------------- ----- --- -- Cash Flow from Operations $19.2 (9%)
(47%) ------------------------- ----- --- ---- Adjusted EBITDA*
$10.6 (54%) (41%) --------------- ----- ---- ---- Adjusted Diluted
EPS* $0.05 (82%) (71%) -------------------- ----- ---- ---- *
Excludes restructuring and stock based compensation costs. See
"Supplemental Financial and Operating Data" for a reconciliation of
non- GAAP items. NM - Not meaningful "The unprecedented market
contraction experienced by the healthcare staffing industry over
the past year is a direct reflection of the rapid rise to
historically high levels of general unemployment. The decline in
volumes we experienced during the first nine months of 2009 have
certainly highlighted the importance of our ability to remain agile
and disciplined in our execution. We continue to de-lever our
balance sheet, maintain strong gross margins, and reduce SG&A
through tight cost management and further improvements to our cost
structure," said Susan R. Nowakowski, President and Chief Executive
Officer of AMN Healthcare. "This environment has also created
opportunities for AMN to further differentiate our service
capabilities and strengthen our client relationships. This has been
demonstrated by our three-fold increase in preferred provider
arrangements and winning key managed services contracts, which will
benefit us in 2010 and beyond." Key business highlights for the
third quarter are as follows: -- Stable pricing and gross margins
across service lines; -- Nursing order increases for six
consecutive months; -- Increased demand for Physician Permanent
Placement retained searches; -- Decline in demand for Locum Tenens,
particularly in anesthesia staffing; -- Continued strong cash flow
and reduction of debt; -- Additional streamlining of cost and
operational structure. Revenue for the third quarter of 2009 was
$166 million, a decrease of 47% from prior year and 16% from prior
quarter. Third quarter revenue for the Nurse and Allied staffing
segment was $82 million, a decrease of 62% from the same quarter
last year and down 26% sequentially. The Locum Tenens staffing
segment generated revenue of $75 million, a decrease of 12% from
prior year and down 5% sequentially. Third quarter Physician
Permanent Placement revenue was $9 million, a decrease of 31% from
prior year and 2% from prior quarter. Gross margin in the third
quarter of 2009 was 27.4%, an increase of 170 bps from prior year
and an increase of 40 bps compared to the previous quarter. The
increase was due to the Locum Tenens and Physician Permanent
Placement segments representing a greater portion of our business
mix. Selling, general and administrative ("SG&A") expenses
(excluding restructuring costs) for the third quarter of 2009 were
22.2% as a percentage of revenue compared to 19.1% in the same
quarter last year. SG&A declined by $23 million, or 39%, over
the same period in the prior year, and sequentially by $1 million,
or 2%, due largely to cost-saving initiatives taking hold. As a
result of continued streamlining of our cost and operational
structure, the company recorded $6 million of restructuring charges
in the third quarter, consisting mainly of lease-related charges
associated with facility consolidations and severance payments. For
the third quarter, the company recorded a GAAP net loss per share
of $0.06 which includes a $0.11 negative impact from restructuring
charges. Earnings per diluted share were $0.28 in the prior year
and $0.13 in the prior quarter. As of September 30, 2009, cash and
cash equivalents totaled $23 million, compared to $11 million as of
December 31, 2008. Total debt outstanding was $77 million as of
September 30, 2009, reflecting a reduction in debt of $13 million
since prior quarter and $69 million since December 31, 2008.
Average shares outstanding for the third quarter of 2009 were 32.6
million. Average diluted shares outstanding for the third quarter
used in the calculation of adjusted diluted earnings per share were
33.1 million. Business Trends and Outlook Nursing orders continue
to show signs of improvement, with increased momentum occurring in
September and October. However, orders still remain at levels lower
than prior year due to high general unemployment and uncertain
economic conditions. In Locum Tenens, we experienced lower
sequential demand (days available) in the third quarter, primarily
due to market weakness in anesthesia staffing. This trend is likely
to continue into the fourth quarter. The increase in new retained
searches in the Physician Permanent Placement business experienced
during the third quarter is expected to result in improved
placements over the coming months. Overall, pricing and gross
margins are expected to remain consistent. Based on these trends
and the normal holiday seasonal decline, fourth quarter
consolidated revenue is expected to decline sequentially by 10-15%.
"The improving order trends in Nurse staffing are encouraging for
AMN and our industry. While it is difficult to predict the
trajectory of resulting volume growth, we believe that our unique
breadth of service offerings and success in securing more preferred
provider and managed services clients positions AMN extremely well
to build market share as the trends continue to improve," added
Nowakowski. "Our solid balance sheet enables us to focus on our
long-term strategy, invest in our newer service lines, and assess
new synergistic opportunities to expand and diversify our
business." About AMN Healthcare Services AMN Healthcare Services,
Inc. is the nation's leading provider of comprehensive healthcare
staffing and management services. As a leading provider of travel
nurse and allied staffing services, locum tenens (temporary
physician staffing) and physician permanent placement services, AMN
Healthcare recruits and places healthcare professionals on
assignments of variable lengths and in permanent positions with
clients throughout the United States, who range from acute-care
hospitals and physician practice groups to other healthcare
settings, including rehabilitation centers, dialysis clinics,
pharmacies, home health service providers and ambulatory surgery
centers. For more information, visit http://www.amnhealthcare.com/.
Conference Call on October 29, 2009 AMN Healthcare Services, Inc.'s
third quarter 2009 conference call will be held on Thursday,
October 29, 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) 230-1059 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 October 29, 2009, and can be accessed
until 11:59 p.m. Eastern Time on November 12, 2009, by calling
(800) 475-6701 in the U.S. or (320) 365-3844 internationally, with
access code 116563. 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.
Such statements include expectations regarding consistent pricing
and gross margins, improvement in physician permanent placements,
fourth quarter revenue expectations, and Ms. Nowakowski's comments
concerning the company's future opportunities and plans. 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. AMN
Healthcare Services, Inc. Condensed Consolidated Statements of
Income (dollars in thousands, except per share amounts) (unaudited)
Three Months Ended Nine Months Ended September 30, % September 30,
% 2009 2008 Chg 2009 2008 Chg ---- ---- --- ---- ---- --- Revenue
$166,357 $315,014 (47.2%) $615,092 $921,298 (33.2%) Cost of revenue
120,749 233,954 (48.4%) 451,824 680,245 (33.6%) ------- -------
------- ------- Gross profit 45,608 81,060 (43.7%) 163,268 241,053
(32.3%) ------ ------ ------- ------- 27.4% 25.7% 26.5% 26.2%
Operating expenses: Selling, general and administrative 36,933
60,260 (38.7%) 124,853 175,480 (28.9%) 22.2% 19.1% 20.3% 19.0%
Restructuring Charges 6,200 - 100% 11,270 - 100% Impairment Charges
- - 0% 175,707 - 100% Depreciation and amortization 3,495 3,770
(7.3%) 10,404 10,858 (4.2%) ----- ----- ------ ------ Total
operating expenses 46,628 64,030 (27.2%) 322,234 186,338 72.9%
------ ------ ------- ------- Income (loss) from operations (1,020)
17,030 NM (158,966) 54,715 NM (0.6%) 5.4% (25.8%) 5.9% Interest
expense, net 2,063 2,550 (19.1%) 6,582 8,021 (17.9%) ----- -----
----- ----- Income (loss) before income taxes (3,083) 14,480 NM
(165,548) 46,694 NM Income tax expense (1,088) 4,985 NM (46,093)
19,961 NM ------- ----- -------- ------ Net income (loss) $(1,995)
$9,495 NM $(119,455) $26,733 NM ======= ====== ========= =======
(1.2%) 3.0% (19.4%) 2.9% Net income (loss) per common share: Basic
$(0.06) $0.29 NM $(3.66) $0.79 ====== ===== ====== ===== NM Diluted
$(0.06) $0.28 NM $(3.66) $0.78 ====== ===== ====== ===== NM
Weighted average common shares outstanding: Basic 32,630 33,269
(1.9%) 32,609 33,642 (3.1%) ====== ====== ====== ====== Diluted
32,630 33,894 (3.7%) 32,609 34,126 (4.4%) ====== ====== ======
====== NM - Not meaningful AMN Healthcare Services, Inc.
Supplemental Financial and Operating Data (dollars in thousands,
except operating data) (unaudited) Three Months Ended Nine Months
Ended September 30, September 30, ------------------------------
------------------------------ % % % % 2009 of Rev 2008 of Rev 2009
of Rev 2008 of Rev Revenue Nurse and allied healthcare staffing
$82,140 $217,107 $357,127 $636,434 Locum tenens staffing 75,488
85,331 229,375 245,541 Physician permanent placement services 8,729
12,576 28,590 39,323 $166,357 $315,014 $615,092 $921,298
Reconciliation of Non-GAAP Items: Segment Operating Income (1)
Nurse and allied healthcare staffing $4,592 5.6% $20,501 9.4%
$30,390 8.5% $65,968 10.4% Locum tenens staffing 7,548 10.0% 7,474
8.8% 22,355 9.7% 19,068 7.8% Physician permanent placement services
2,215 25.4% 3,441 27.4% 7,877 27.6% 11,842 30.1% 14,355 8.6% 31,416
10.0% 60,622 9.9% 96,878 10.5% Unallocated corporate overhead 3,749
8,190 14,562 24,374 Adjusted EBITDA (2) 10,606 6.4% 23,226 7.4%
46,060 7.5% 72,504 7.9% Depreciation and amortization 3,495 3,770
10,404 10,858 Stock-based compensation 1,931 2,426 6,761 6,931
Restructuring Charges 6,200 - 11,270 - Impairment Charges - -
175,707 - Unallocated Non-Recurring Legal Expenses - - 884 -
Interest expense, net 2,063 2,550 6,582 8,021 Income (loss) before
income taxes (3,083) 14,480 (165,548) 46,694 Income tax expense
(1,088) 4,985 (46,093) 19,961 Net income (loss) $(1,995) $9,495
$(119,455) $26,733 GAAP based diluted net income (loss) per share
(EPS) $(0.06) $(3.66) Adjustments: - Restructuring charges 0.11
0.20 Non-recurring legal expenses - 0.02 Impairment charges - 3.77
Adjusted diluted earnings per share (3) $0.05 $0.33 Three Months
Ended Nine Months Ended September 30, September 30,
-------------------------- -------------------------- 2009 2008 %
Chg 2009 2008 % Chg Gross Margin Nurse and allied healthcare
staffing 24.4% 23.6% 23.9% 24.0% Locum tenens staffing 27.2% 26.6%
26.5% 26.4% Physician permanent placement services 57.7% 57.5%
59.5% 59.6% Operating Data: --------- Nurse and allied healthcare
staffing Average travelers on assignment (4) 2,704 7,185 (62.4%)
3,951 7,093 (44.3%) Revenue per traveler per day (5) $330.19
$328.44 0.5% $331.10 $327.47 1.1% Gross profit per traveler per day
(5) $80.50 $77.39 4.0% $79.21 $78.65 0.7% Locum tenens staffing
Days filled (6) 53,032 58,638 (9.6%) 160,137 169,196 (5.4%) Revenue
per day filled (6) $1,423.44 $1,455.22 (2.2%) $1,432.37 $1,451.22
(1.3%) Gross profit per day filled (6) $387.47 $386.73 0.2% $379.76
$382.66 (0.8%) As of September 30, -------------------- 2009 2008
Leverage Ratio (7) 1.1 1.6 (1) Segment Operating Income represents
net income (loss) plus interest expense (net of interest income),
income taxes, depreciation and amortization, restructuring charges,
impairment charges, non-recurring legal expenses, unallocated
corporate expenses, and stock-based compensation expense.
Management believes that Segment Operating Income is an industry
wide financial measure that is useful both to management and
investors when evaluating the company's performance. Management
also uses Segment Operating Income for planning purposes. Segment
Operating Income is not necessarily comparable to other similarly
titled captions of other companies due to potential inconsistencies
in the method of calculation and allocation of costs. (2) 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 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
and considers measures used in credit facilities. However, adjusted
EBITDA is not intended to represent cash flows for the period, nor
has it been presented as an alternative to income (loss) from
operations or net income (loss) 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. (3) Adjusted diluted
earnings per share 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. (4) Average travelers on assignment represents the average
number of nurse and allied healthcare professionals on assignment
during the period presented. (5) 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. (6) 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. (7) 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) September
30, June 30, December 31, 2009 2009 2008 ---- ---- ---- Assets
Current assets: Cash and cash equivalents $22,621 $23,488 $11,316
Accounts receivable, net 96,410 114,542 182,562 Prepaid expenses
6,748 8,867 9,523 Income taxes receivable 2,108 1,425 3,440
Deferred income taxes, net 17,805 18,085 18,085 Other current
assets 2,782 2,911 4,901 ----- ----- ----- Total current assets
148,474 169,318 229,827 Fixed assets, net 21,581 24,034 24,018
Deposits and other assets 12,488 12,056 13,252 Goodwill 79,868
79,868 252,875 Intangible assets, net 116,537 117,738 122,845
------- ------- ------- Total assets $378,948 $403,014 $642,817
======== ======== ======== Liabilities and stockholders' equity
Current liabilities: Bank overdraft - $3,274 $3,995 Accounts
payable and accrued expenses 18,929 20,837 24,420 Accrued
compensation and benefits 29,431 31,941 44,871 Revolving credit
facility - - 31,500 Current portion of notes payable 10,845 12,201
14,580 Deferred revenue 5,404 5,699 7,184 Other current liabilities
14,502 15,892 14,722 ------ ------ ------ Total current liabilities
79,111 89,844 141,272 Notes payable, less current portion 66,425
77,781 100,236 Deferred income taxes, net 4,615 7,382 58,466 Other
long-term liabilities 57,277 56,592 58,710 ------ ------ ------
Total liabilities 207,428 231,599 358,684 ------- ------- -------
Stockholders' equity 171,520 171,415 284,133 ------- -------
------- Total liabilities and stockholders' equity $378,948
$403,014 $642,817 ======== ======== ======== AMN Healthcare
Services, Inc. Condensed Consolidated Cash Flow Statement (in
thousands) (unaudited) Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30, 2009 2008
2009 2008 ---- ---- ---- ---- Net cash provided by operating
activities $19,205 $21,136 $93,150 $49,892 Net cash used in
investing activities (3,924) (1,963) (6,358) (46,428) Net cash used
in financing activities (16,157) (19,627) (75,531) (14,038) Effect
of exchange rates on cash 9 (97) 44 (116) --- ---- --- ----- Net
increase (decrease) in cash and cash equivalents (867) (551) 11,305
(10,690) Cash and cash equivalents at beginning of period 23,488
8,356 11,316 18,495 ------ ----- ------ ------ Cash and cash
equivalents at end of period $22,621 $7,805 $22,621 $7,805 =======
====== ======= ====== Contact: Amy C. Chang Vice President,
Investor Relations 866.861.3229 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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