AMN Healthcare Services, Inc. Reports First Quarter Results; First Quarter Revenue Increases 15%; Earnings Per Share Increases 21% to $0.29.Business Editors/Health/Medical Writers SAN DIEGO--(BUSINESS WIRE)--April 29, 2003 AMN Amn abbr. airman Healthcare Services, Inc. (NYSE NYSE See: New York Stock Exchange :AHS AHS Assistant House Surgeon. ) today reported revenue and earnings results for the first quarter of 2003. These results reflect a 15% increase in revenue to $199.8 million, up from $174.0 million for the same period a year ago. The company reported net income of $12.4 million, or $0.29 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the first quarter of 2003, up from $0.24 per diluted share for the first quarter of 2002, representing an increase of 21%. "Our earnings performance in the first quarter illustrates the strength of the AMN model and our ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution that model effectively in a dynamic market," said Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. C. Francis Francis, French prince, duke of Alençon and Anjou Francis, 1554–84, French prince, duke of Alençon and Anjou; youngest son of King Henry II of France and Catherine de' Medici. , president and chief executive officer. "Our revenue growth of 15% for the quarter, compared to the prior year, was primarily driven by a 10% increase in travel healthcare professionals working on assignment, with an average of over 8,000 during the quarter. This traveler Traveler (U.S. English) or Traveller (British English) may refer to:
Earnings before interest, taxes, depreciation, amortization, and non-cash stock-based compensation related to the company's initial public offering (adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , a non-GAAP measure) increased 13% to $21.9 million for the first quarter of 2003, up from $19.5 million for the first quarter of 2002. The adjusted EBITDA margin for the first quarter of 2003 of 11.0% was relatively flat compared to 11.2% for the first quarter of 2002, as the company's effective leveraging of selling, general and administrative expenses during the quarter was offset by higher costs associated with travelers. Gross profit increased to $44.8 million for the first quarter of 2003, compared to $42.2 million for the first quarter of 2002, driven primarily by growth in the average number of travelers on assignment and partially offset by higher nurse compensation and other direct costs during the quarter. This resulted in a first quarter gross margin of 22.4%, compared to the 24.3% gross margin reported in the first quarter of last year. Selling, general and administrative expenses for the first quarter of 2003 improved substantially to 11.4% of revenue, compared to 13.1% of revenue for the first quarter of 2002, reflecting the effective leveraging of the company's flexible operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. and infrastructure. The company, which continues to be debt free, with over $28 million of cash and cash equivalents as of March 31, 2003, generated over $21 million in net cash from operating activities for the first quarter of 2003. The company continued its progress in its share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program, spending $31 million to purchase 2.4 million shares during the first quarter of 2003. Since the inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. of the share repurchase program in November November: see month. 2002, the company has spent $66 million to acquire 4.5 million shares of the company's stock in open market purchases. Revenue and Earnings Guidance for Second Quarter 2003 As announced last quarter, the current uncertainty in the travel healthcare staffing industry limits the company's visibility as to revenue and earnings guidance. Therefore, the company will continue its announced practice of limiting guidance to the next quarter to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report . For the second quarter of 2003, the company expects to generate revenue ranging from $178 million to $182 million. The company expects net income for the second quarter to be between $9.0 million and $9.9 million, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.22 to $0.24 per diluted share. The company expects to have approximately 40.6 million average diluted shares outstanding for the second quarter of 2003. "Our hospital clients continue to seek opportunities to employ the best mix of permanent and flexible staff, while currently attempting to stretch the productivity of their nursing resources. These changes in demand trends, combined with the uncertainty brought on by the current U.S. economy, continue to limit our visibility and have decreased the current demand for our services," added Francis. "However, we believe that the company's fundamental long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. drivers, primarily our hospital clients' need for cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. variable staffing solutions, rising admissions and the escalating long-term nursing shortage, will fuel AMN's long-term growth prospects. We strongly believe that our industry-leading position, combined with our proven operating model and the outstanding execution by our management team and employees, will position us for continued success." Company Summary AMN Healthcare Services, Inc. is the largest nationwide provider of outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, temporary healthcare staffing. The company recruits nurses and allied health professionals nationally and internationally and places them on temporary assignments, typically for 13 weeks, at acute-care hospitals and healthcare facilities throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Conference Call on April 30, 2003 AMN Healthcare Services, Inc.'s first quarter earnings conference call will be held on Wednesday Wednesday: see week. , April 30 at 7:00 a.m. PST PST Paroxysmal supraventricular tachycardia, see there (10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy ). A live webcast of the call can be accessed at www.amnhealthcare.com/investors, with a replay available on the web site until May 14, 2003. An audio replay of the call will also be available by telephone through May 7, 2003 by calling 800/475-6701 in the U.S. or 320/365-3844 internationally, with access code 681202. Additional information regarding non-GAAP financial measures will be available on the company's Web site at www.amnhealthcare.com/investors. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends" and similar expressions. Similarly, statements herein that describe the company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance or achievements to differ materially from those expressed in, or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by, such statements. These risks and uncertainties may include, but are not limited to: the company's ability to continue to recruit RECRUIT. A newly made soldier. and retain qualified temporary healthcare professionals and ability to attract and retain operational personnel; the company's ability to enter into contracts with hospitals and other healthcare facility clients on terms attractive to the company and to secure orders related to those contracts; the attractiveness to hospitals and healthcare facility clients of the company's services; changes in the timing of hospital and healthcare facility clients' orders for and the company's placement of temporary healthcare professionals; the general level of patient occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy at the company's hospital and healthcare facility clients' facilities; the company's ability to successfully implement its acquisition and integration strategies; the effect of existing or future government regulation, and the company's ability to comply with these regulations; the impact of medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. and other claims asserted against the company; and the company's ability to carry out its business strategy, including adapting to an increasingly competitive environment. These statements reflect the company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated out·dat·ed adj. Out-of-date; old-fashioned. outdated Adjective old-fashioned or obsolete Adj. 1. with the passage of time. The company does not intend, however, to update the guidance provided today prior to its next earnings release. Tables Follow:
AMN Healthcare Services, Inc.
Condensed Statements of Operations
(dollars in thousands, except per share and traveler data)
(unaudited)
Three Months Ended
March 31,
2003 2002 % Chg
---------------------------
Revenue $199,765 $173,956 15%
Cost of revenue 155,014 131,753 18%
---------------------
Gross profit 44,751 42,203 6%
---------------------
22.4% 24.3%
Expenses:
Selling, general and administrative 22,837 22,725 0%
11.4% 13.1%
Non-cash stock-based compensation (1) 218 218 0%
Amortization 95 82 16%
Depreciation 1,020 691 48%
---------------------
Total expenses 24,170 23,716 2%
---------------------
Income from operations 20,581 18,487 11%
Interest (income) expense, net 83 (142) N/M
---------------------
Income before income taxes 20,498 18,629 10%
Income tax expense 8,099 7,452 9%
---------------------
Net income $12,399 $11,177 11%
=====================
Basic and diluted net income per common
share:
Basic net income per common share $0.31 $0.26 19%
=====================
Diluted net income per common share $0.29 $0.24 21%
=====================
Weighted average common shares outstanding
-- basic 39,834 42,290 (6%)
=====================
Weighted average common shares outstanding
-- diluted 42,999 46,991 (8%)
=====================
Other Financial and Operating Data:
Average travelers on assignment 8,035 7,335 10%
=====================
Revenue per traveler per day $276.23 $263.51 5%
=====================
Gross profit per traveler per day $61.88 $63.93 (3%)
=====================
Adjusted EBITDA (2) $21,914 $19,478 13%
=====================
11.0% 11.2%
(1) Non-cash stock-based compensation represents compensation expense
related to stock option plans to reflect the difference at the
completion of the company's initial public offering between the
fair market value and the exercise price of stock options
previously issued to the company's officers.
(2) Adjusted EBITDA represents net income plus interest, taxes,
depreciation, amortization and non-cash 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 and adjusted EBITDA is an
industry-wide financial measure that is useful both to management
and investors when evaluating the Company's 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 accounting
principles generally accepted in the United States. 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.
AMN Healthcare Services, Inc.
Adjusted EBITDA Reconciliation
(dollars in thousands)
(unaudited)
Three Months Ended
March 31,
2003 2002 % Chg
---------------------
Net income $12,399 $11,177 11%
Adjustments:
Interest (income) expense, net 83 (142)
Income tax expense 8,099 7,452
Depreciation 1,020 691
Amortization 95 82
Non-cash stock based-compensation 218 218
----------------
Adjusted EBITDA (1) $21,914 $19,478 13%
================
(1) Adjusted EBITDA represents net income plus interest, taxes,
depreciation, amortization and non-cash 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 and adjusted EBITDA is an
industry-wide financial measure that is useful both to management
and investors when evaluating the Company's 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 accounting
principles generally accepted in the United States. 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.
AMN Healthcare Services, Inc.
Condensed Balance Sheet
(in thousands)
(unaudited)
March 31, Dec. 31,
2003 2002
------------------
Assets
Current assets:
Cash, cash equivalents and short-term investments $28,633 $40,135
Accounts receivable, net 130,684 134,456
Other current assets 17,679 14,062
------------------
Total current assets 176,996 188,653
Fixed assets, net 12,117 9,869
Goodwill, net 135,532 135,532
Deferred income taxes 11,361 12,111
Intangible and other assets 3,468 2,609
------------------
Total assets $339,474 $348,774
==================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $12,194 $12,738
Accrued compensation and benefits 37,168 34,488
Other current liabilities 11,212 4,122
------------------
Total current liabilities 60,574 51,348
Other long-term liabilities 1,554 1,602
------------------
Total liabilities 62,128 52,950
Stockholders' equity 277,346 295,824
------------------
Total liabilities and stockholders' equity $339,474 $348,774
==================
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