AMN Healthcare Services, Inc. Reports First Quarter Results.Business Editors/Health/Medical Writers SAN DIEGO--(BUSINESS WIRE)--April 28, 2004 AMN Amn abbr. airman Healthcare Services, Inc. (NYSE NYSE See: New York Stock Exchange : AHS AHS Assistant House Surgeon. ) today reported revenue for the first quarter of 2004 of $161.3 million, compared to $199.8 million for the first quarter of 2003, and $159.6 million for the fourth quarter of 2003. The company generated net income of $4.6 million for the first quarter of 2004, resulting in diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.15. This compares to net income of $12.4 million, or diluted earnings per share of $0.29 for the first quarter of 2003, and net income of $4.9 million, or diluted earnings per share of $0.15 for the fourth quarter of 2003. Diluted earnings per share for the fourth quarter of 2003 included a $0.02 per share charge for compensation expense associated with stock options purchased in connection with the company's $180 million self-tender offer Self-tender offer A company that tenders for its own shares. in October October: see month. 2003. "The first quarter's results, highlighted by sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen stable volume and revenue over the fourth quarter, mark an important and positive inflection point Inflection Point An event that changes the way we think and act. -Andy Grove, Founder of Intel. Notes: For example, the fall of the Berlin Wall was an inflection point in global politics and the commercialization of the Internet was an inflection point in technology. for AMN. We believe that these results reflect the stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. market environment and the effectiveness of our operational initiatives and sales and service teams," 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. , Chief Executive Officer. In line with the company's expectations, gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the first quarter was 22.2%, which was relatively consistent with the 22.4% reported in the first quarter of 2003, but slightly lower than the 22.8% reported in the fourth quarter of 2003. Gross profit for the first quarter of 2004 was $35.8 million, compared to $44.8 million for the first quarter of 2003 and $36.4 million for the fourth quarter of 2003. The gross profit margin decline in the first quarter from the fourth quarter was consistent with historical patterns due to the impact of higher housing and traveler Traveler (U.S. English) or Traveller (British English) may refer to:
a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. costs driven by a higher percentage of new traveler assignments and fewer days in the first quarter. Selling, general and administrative expenses for the first quarter of 2004 were $24.6 million, representing 15.3% of revenue, compared to $22.8 million, or 11.4% of revenue for the first quarter of 2003, and $25.5 million, or 16.0% of revenue in the fourth quarter of 2003. Compared to the fourth quarter of 2003, adjusted to exclude the $1.2 million charge related to the October 2003 self-tender offer, selling, general and administrative expenses for the first quarter of 2004 remained relatively constant in total dollars and as a percentage of revenue. Income from operations was $9.5 million for the first quarter of 2004, compared to $20.6 million for the first quarter of 2003, and $9.3 million for the fourth quarter of 2003. The income from operations margin for the first quarter of 2004 of 5.9% was comparable to the 5.8% operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: reported in the fourth quarter of 2003, but lower than the 10.3% reported for the first quarter of 2003 as a result of lower gross profit margin and higher selling, general and administrative expenses as a percentage of revenue. Net income for the first quarter of 2004 included net interest expense of $2.1 million, compared to net interest expense of $0.1 million in the first quarter of 2003, and $2.0 million in the fourth quarter of 2003. The increase in interest expense over the prior year was a result of borrowings associated with the self-tender offer for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10 million of the company's equity securities. The weighted average 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. shares outstanding in the first quarter of 2004 was 31.3 million, compared to a weighted average of 43.0 million diluted shares outstanding in the first quarter of 2003 and 33.1 million in the fourth quarter of 2003. As of March 31, 2004, the company had $6.8 million of cash and cash equivalents and debt of $137 million. The company generated $5.7 million in cash provided by operating activities during the first quarter of 2004. Revenue and Earnings Guidance for Second Quarter 2004 Consistent with previous practice, the company provides revenue and earnings guidance for the next quarter to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report . Revenue for the second quarter of 2004 is expected to range between $157 million and $161 million, resulting in net income ranging between $4.0 million and $5.0 million, or diluted earnings per share of approximately $0.13 to $0.16. The company expects to have an average of approximately 31.4 million diluted shares outstanding for the second quarter of 2004. "Considering the historical seasonal decline in demand and working travelers that normally occurs during the second quarter, we believe that our projections for the second quarter reflect continued stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders in the market environment. Our prospects for short term and long term growth are driven by overall improvement in the U.S. economy, increasing hospital admissions, the focus on the quality of patient care, and cost effectiveness of travel healthcare professionals. These trends continue to give us confidence and optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. for the future strengthening of our market," said Francis. Company Summary AMN Healthcare Services, Inc., a leading healthcare staffing company, is the largest nationwide provider of travel nurse staffing services. The company recruits nurses and allied health professionals nationally and internationally and places them on temporary assignments, of variable lengths, 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 29, 2004 AMN Healthcare Services, Inc.'s first quarter earnings conference call will be held on Thursday Thursday: see week. , April 29, 2004 at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT (7:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ). A live webcast of the call can be accessed at www.amnhealthcare.com/investors, with a replay available on the web site until May 13, 2004. An audio replay of the call will also be available by telephone through May 13, 2004 by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 726570. From time to time, additional information regarding non-GAAP financial measures may be made available on the company's website 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," "projects," "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 overall level of demand for services offered by temporary healthcare providers; increased utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of permanent staff by hospital and healthcare facility clients; 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 operate in compliance 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.
AMN Healthcare Services, Inc.
Condensed Statements of Operations
(dollars in thousands, except per share and traveler data)
(unaudited)
Three Months Ended
March 31,
2004 2003 %Chg
-----------------------------
Revenue $161,265 $199,765 (19%)
Cost of revenue 125,436 155,014 (19%)
-------------------
Gross profit 35,829 44,751 (20%)
-------------------
22.2% 22.4%
Expenses:
Selling, general and administrative 24,598 22,837 8%
15.3% 11.4%
Non-cash stock-based compensation(1) 218 218 0%
Depreciation and amortization 1,465 1,115 31%
-------------------
Total expenses 26,281 24,170 9%
-------------------
Income from operations 9,548 20,581
5.9% 10.3% (54%)
Interest expense, net 2,134 83 N/M
-------------------
Income before income taxes 7,414 20,498 (64%)
Income tax expense 2,855 8,099 (65%)
-------------------
Net income $ 4,559 $ 12,399 (63%)
===================
Basic and diluted net income
per common share:
Basic net income per common share $0.16 $0.31 (48%)
===================
Diluted net income per common share $0.15 $0.29 (48%)
===================
Weighted average common shares
outstanding -- basic 28,120 39,834 (29%)
===================
Weighted average common shares
outstanding -- diluted 31,294 42,999 (27%)
===================
Other Financial and Operating Data:
Average travelers on assignment 6,349 8,035 (21%)
===================
Revenue per traveler per day $279.12 $276.23 1%
===================
Gross profit per traveler per day $62.01 $61.88 0%
===================
Adjusted EBITDA(2) $11,231 $21,914 (49%)
===================
7.0% 11.0%
(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 (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 represents net income plus interest (net of investment income), taxes, depreciation and 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 Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. 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 and comparing the company's performance with the performance of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . 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 non-cash stock-based compensation charges, that management believes are not indicative indicative: see mood. 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 Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (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 conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with GAAP measures such as net income.
AMN Healthcare Services, Inc.
Adjusted EBITDA Reconciliation
(dollars in thousands)
(unaudited)
Three Months Ended
March 31,
2004 2003 % Chg
---------------------
Net income $4,559 $12,399 (63%)
Adjustments:
Interest expense, net 2,134 83
Income tax expense 2,855 8,099
Depreciation and amortization 1,465 1,115
Non-cash stock-based compensation 218 218
----------------
Adjusted EBITDA(1) $11,231 $21,914 (49%)
================
(1) Adjusted EBITDA represents net income plus interest (net of investment income), taxes, depreciation and 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. 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 and comparing the company's performance with the performance of competitors. 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 non-cash 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 accounting principles generally accepted in the United States of America (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.
AMN Healthcare Services, Inc.
Condensed Consolidated Balance Sheet
(in thousands)
(unaudited)
March December March
31, 31, 31,
2004 2003 2003
---------------------------
Assets
Current assets:
Cash and cash equivalents $6,764 $4,687 $28,633
Accounts receivable, net 121,968 117,392 130,684
Other current assets 17,448 15,862 17,679
---------------------------
Total current assets 146,180 137,941 176,996
Fixed assets, net 18,541 18,414 12,117
Goodwill, net 135,532 135,532 135,532
Deferred income taxes 5,384 6,071 11,361
Intangible and other assets 6,303 6,574 3,468
---------------------------
Total assets $311,940 $304,532 $339,474
===========================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $11,055 $12,954 $12,194
Accrued compensation and benefits 36,302 32,117 37,168
Current portion of notes payable 13,000 13,400 --
Other current liabilities 4,168 2,488 11,212
---------------------------
Total current liabilities 64,525 60,959 60,574
Notes payable 124,000 125,500 --
Other long-term liabilities 2,964 1,976 1,554
---------------------------
Total liabilities 191,489 188,435 62,128
---------------------------
Stockholders' Equity 120,451 116,097 277,346
---------------------------
Total liabilities and
stockholders' equity $311,940 $304,532 $339,474
===========================
AMN Healthcare Services, Inc.
Condensed Consolidated Cash Flow Statement
(in thousands)
(unaudited)
Three Three
Months Months
Ended Ended
March March
31, 31,
2004 2003
---------------
Net cash provided by operating activities $5,683 $21,671
Net cash used in investing activities (1,510) (3,260)
Net cash used in financing activities (2,094)(29,853)
Effect of exchange rates on cash (2) (60)
---------------
Net increase (decrease) in cash and cash equivalents 2,077 (11,502)
Cash and cash equivalents at beginning of period 4,687 40,135
---------------
Cash and cash equivalents at end of period $6,764 $28,633
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