Amn healthcare announces first quarter 2019 results
San diego--(business wire)--amn healthcare services, inc. (nyse: amn), the leader and innovator in healthcare workforce solutions and staffing services, today announced its first quarter 2019 financial results. financial highlights are as follows: dollars in millions, except per share amounts. % changeq1 2018 highlights financial results for the first quarter of 2019 came in above company guidance. first quarter consolidated revenue of $532 million increased 2% year over year. nurse and allied solutions revenue of $337 million flat with the prior year, with allied growth of 10% offset by lower revenue from one client and a lighter flu season headwind in nursing. adjusted ebitda of $66 million, representing 12.4% of revenue. repurchased 378,000 shares for $18 million. executed agreement to acquire advanced medical to expand our travel therapy, school therapy and travel nurse staffing capabilities. “the amn team did an impressive job serving our clients and healthcare professionals, expanding existing relationships and adding new clients since the beginning of the year. despite a tough year-over-year comparison in travel nursing, our team persevered and every segment met or beat our expectations in the quarter,” said susan r. salka, chief executive officer of amn healthcare. “demand has strengthened across most service lines, with the most significant increases in travel nursing, allied and interim leadership. we also continue to make progress in our locum tenens segment. “we are thrilled that the innovative team at advanced medical will soon be part of the amn family. advanced medical will expand the amn portfolio of services and enhance our offerings in some of the faster growing care settings. in addition to the attractive nature of their growing footprint in schools, we are excited about the potential of the recently launched telehealth platform for delivery of therapeutic services to children across the country,” ms. salka said. first quarter 2019 results consolidated revenue for the quarter was $532 million, a 2% increase over prior year and a 1% increase compared with prior quarter. revenue for the nurse and allied solutions segment was $337 million, flat year over year and up 2% sequentially. facing a difficult comparison due to the elevated year-ago flu season, travel nurse division revenue was flat year over year. allied division revenue increased 10% year over year on higher volume. the locum tenens solutions segment reported revenue of $80 million, down by 22% year over year. other workforce solutions segment revenue was $115 million for an increase of 42% year over year, driven by the acquisitions made in april 2018. gross margin was 33.2%, higher by 110 basis points year over year and higher by 60 basis points sequentially. the year-over-year variance was driven by higher-than-average gross margins from companies acquired last april and a change in classification of certain recruiter expenses from cost of sales to sg&a in our physician permanent placement business. sg&a expenses were $120 million, or 22.5% of revenue, compared with $105 million, or 20.0% of revenue, in the same quarter last year. sg&a was $111 million, or 21.0% of revenue, in the previous quarter. the year-over-year increase in expense margin stemmed mainly from the acquisitions, integration-related activities and the physician permanent placement cost change. income from operations was $45 million, or 8.5% of revenue, compared with $55 million, or 10.6% of revenue, in the same quarter last year. adjusted ebitda was $66 million, a year-over-year decrease of 1%. adjusted ebitda margin was 12.4%, representing a decrease of 30 basis points year over year and a decrease of 20 basis points sequentially. net income was $34 million, or $0.71 per diluted share, compared with $43 million, or $0.87 per diluted share, in the same quarter last year. adjusted diluted eps was $0.75. at march 31, 2019, cash and cash equivalents totaled $19 million. cash flow from operations was $36 million for the quarter, and capital expenditures were $7 million. amn repurchased 378,000 shares of stock for $18 million during the quarter. the company ended the quarter with total debt outstanding of $475 million, with a leverage ratio as calculated in accordance with the company’s credit agreement of 1.9 to 1. advanced medical acquisition on april 30, we announced an agreement to acquire advanced medical, a leading provider of travel therapy and travel nursing, with a strong and growing presence in the school staffing market. the purchase price is $200 million in cash, plus up to $20 million contingent consideration based on 2019 financial performance. advanced medical reported 2018 revenue of $132 million with adjusted ebitda of $19 million. the acquisition is expected to close in early june 2019 and is not included in the company's second quarter 2019 financial outlook. second quarter 2019 outlook $518 - $524 million 23.0% to 23.5% revenue in the second quarter of 2019 is expected to be down 6-7% year over year, due primarily to a prior-year $25 million labor disruption event in the nurse and allied segment and a decline in the locum tenens segment. excluding the impact of the prior-year labor disruption event, consolidated revenue would be down about 2% due to the lower locums revenue. this guidance reflects the normal seasonal sequential decline in our nursing business. no significant labor disruption revenue is included in second quarter guidance. conference call on may 2, 2019 amn healthcare services, inc. (nyse: amn), healthcare’s leader and innovator in workforce solutions and staffing services, will host a conference call to discuss its first quarter 2019 financial results on thursday, may 2, 2019, at 5:00 p.m. eastern time. a live webcast of the call can be accessed through amn healthcare’s website at http://amnhealthcare.investorroom.com/eventcalendar. 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) 288-8960 in the u.s. or (612) 234-9960 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 starting at 7:30 p.m. eastern time on may 2, 2019, and can be accessed until 11:59 p.m. eastern time on may 16, 2019, by calling (800) 475-6701 in the u.s. or (320) 365-3844 internationally, with access code 466135. about amn healthcare amn healthcare is the leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. the company provides unparalleled 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 delivers managed services programs, healthcare executive search solutions, vendor management systems, recruitment process outsourcing, predictive labor analytics, mid-revenue cycle management, credentialing solutions, and other services. 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://amnhealthcare.investorroom.com/emailalerts. non-gaap measures this earnings release contains 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 and (3) adjusted diluted eps. the company provides such non-gaap financial measures because management believes that they are useful both to 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 and allocating resources. 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 “supplemental financial and operating data” under the caption entitled “reconciliation of non-gaap items” and the footnotes thereto or on the company’s website at http://amnhealthcare.investorroom.com/financialreports. 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 our guidance for second quarter 2019 revenue, gross margin, sg&a expenses as a percentage of revenue and adjusted ebitda margin. 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 identified by words such as “believe,” “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 company's ability to meet the targets and expectations noted in our second quarter 2019 outlook depends upon, among other factors, our ability to (i) manage the pricing impact that the consolidation of healthcare delivery organizations may have on our business, (ii) 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, (iii) implement new infrastructure and technology systems to optimize our operating results and manage our business effectively, (iv) develop and evolve our current technology offerings and capabilities, (v) recruit and retain sufficient quality healthcare professionals at reasonable costs, and (vi) consummate and effectively incorporate acquisitions into our business. 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, 2018, our subsequent quarterly reports on form 10-q and our current reports on form 8-k. 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. amn healthcare services, inc.condensed consolidated statements of comprehensive income(in thousands, except per share amounts)(unaudited) other comprehensive income (loss): other comprehensive income (loss): 47,772 amn healthcare services, inc.supplemental financial and operating data(dollars in thousands, except per share data and operating data)(unaudited) acquisition, integration and other costs (6) interest expense, net, and other (7) acquisition, integration and other costs (6) equity investment fair value changes (7) tax correction related to prior periods (8) tax effect of coli fair value changes (9) excess tax benefits (10) adjusted diluted eps (11) operating data: average healthcare professionals on assignment (12) amn healthcare services, inc.condensed consolidated balance sheets(dollars in thousands)(unaudited) march 31,2019 december 31,2018 march 31,2018 liabilities and stockholders’ equity amn healthcare services, inc.summary condensed consolidated statements of cash flows(dollars in thousands)(unaudited) 36,214 (36,248 amn healthcare services, inc.additional supplemental non-gaap disclosuresreconciliation of guidance adjusted ebitda margin toguidance operating margin(unaudited) adjusted ebitda margin (16) acquisition, integration and other costs
