AMN Healthcare Services, Inc. Reports Record Fourth Quarter Results; Fourth Quarter Revenue Increases 29%; Earnings Per Share Increases to $0.31.Business Editors & Health/Medical Writers SAN DIEGO--(BUSINESS WIRE)--Feb. 13, 2003 AMN Amn abbr. airman Healthcare Services, Inc. (NYSE NYSE See: New York Stock Exchange :AHS AHS Assistant House Surgeon. ) today reported record revenue and earnings results for the fourth quarter ended December December: see month. 31, 2002. These results reflect a 29% increase in revenue to $207.0 million for the fourth quarter of 2002, up from $160.7 million for the same period a year ago. The company reported net income of $14.4 million, or $0.31 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 fourth quarter of 2002 compared to a net loss of $9.0 million, or a loss of $0.25 per share, for the prior year fourth quarter, which included charges related to its initial public offering in November November: see month. 2001. (See accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. tables.) "Our positive earnings performance in the fourth quarter illustrates the strength of the AMN model as well as our industry leading position in 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," 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 19% volume growth rate in temporary healthcare professionals for the quarter, when compared to our prior year fourth quarter, remained strong, resulting in over 8,100 temporary healthcare professionals on assignment. The combined benefit of effective margin and cost management translated into strong earnings growth with an 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 margin of 12.1% for the fourth quarter." Adjusted cash earnings per diluted share in the fourth quarter of 2002 increased 39% to $0.32, from $0.23 per diluted share for the same period a year ago. Adjusted cash earnings, a non-GAAP measure that the company believes provides a meaningful comparison of operating performance between 2002 and 2001, excludes tax-adjusted charges primarily related to the company's initial public offering, as well as transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). and the amortization of goodwill and other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . Earnings before interest, taxes, depreciation, amortization, transaction costs and non-cash stock-based compensation related to the initial public offering (adjusted EBITDA, a non-GAAP measure) increased 39% to $25.0 million for the fourth quarter of 2002, up from $18.0 million for the fourth quarter of 2001. Gross profit increased 27% for the fourth quarter of 2002 over the comparable period in 2001, driven primarily by growth in the average number of travelers on assignment. The fourth quarter gross margin of 24.4% was in line with the company's expectations and the gross margin reported in the third quarter of 2002. Selling, general and administrative expenses for the fourth quarter of 2002 improved to 12.3% of revenue compared to 13.5% of revenue for the fourth quarter of 2001, reflecting leverage of the company's overhead expenses. For the year ended December 31, 2002, revenue increased 50% to $775.7 million from $517.8 million a year ago. The company reported net income of $52.4 million, or $1.12 per diluted share in 2002 compared to a net loss of $4.4 million, or a loss of $0.14 per share, a year ago. Adjusted cash earnings in 2002 grew 115% to $53.2 million, or $1.14 per diluted share, up from $24.7 million, or $0.74 per diluted share, for 2001. The company continues to be debt free with over $40 million of cash and cash equivalents as of December 31, 2002. "In addition to our strong earnings performance, we believe we have enhanced shareholder value by repurchasing our shares through open-market purchases open-market purchase The buying of stocks and bonds in the securities markets. For example, in order to satisfy the sinking fund requirement of a bond indenture, the issuer may call securities from investors or make open-market purchases. ," added Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. R. Myll, Chief Financial Officer. "Our share repurchase plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and , announced on November 12, 2002, illustrates our intention to utilize our cash position to benefit shareholders. Through January January: see month. 31, 2003, we have used $44 million in cash to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2.6 million shares, of which $35 million was used to repurchase approximately 2.1 million shares in 2002." Revenue and Earnings Guidance for First Quarter 2003 For the first quarter of 2003, the company expects to generate revenue ranging from $197 million to $203 million, representing growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. of 14% to 16% compared to the first quarter of 2002. The company expects net income to be between $12.1 million and $13.1 million, or approximately $0.28 to $0.30 per diluted share, representing net income per diluted share growth rates of 17% to 25%, respectively, compared to the first quarter of 2002. The company expects to have approximately 43.8 million average diluted shares outstanding for the first quarter of 2003. While the company is confident that the 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. demand and supply fundamentals for the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of temporary healthcare staffing remain intact, certain market factors have reduced the company's visibility of future revenue and earnings. Because of this reduced visibility, the company is withdrawing withdrawing Child psychiatry Behavior characterized by ↓ interest in or contact with other people; WBs include ↓ speech, regression to babyhood, exhibition of many fears, depression, refusing contact with other people its prior annual guidance for the year ended December 31, 2003. On a quarterly basis, the company intends to provide guidance for revenue and earnings for the next quarter to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report . Company Summary AMN Healthcare Services, Inc. is the largest nationwide provider of outsourced 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 February February: see month. 14, 2003 AMN Healthcare Services, Inc.'s fourth quarter earnings conference call will be held on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February 14 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 February 28, 2003. An audio replay of the call will also be available by telephone through February 21, 2003 by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 669347. 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 to use our services; changes in the timing of hospital and healthcare facility clients' orders for and our 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 in the healthcare industry, the company's ability to operate its business and 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.
AMN Healthcare Services, Inc.
Condensed Statements of Operations
(dollars and shares in thousands, except per share and traveler data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 % Chg 2002 2001 % Chg
----------------------------------------------
Revenue $207,047 $160,686 29%$775,683 $517,794 50%
Cost of revenue 156,550 120,951 29% 586,900 388,284 51%
------------------ ------------------
Gross profit 50,497 39,735 27% 188,783 129,510 46%
------------------ ------------------
24.4% 24.7% 24.3% 25.0%
Expenses:
Selling, general and
administrative 25,485 21,733 17% 97,666 71,483 37%
12.3% 13.5% 12.6% 13.8%
Non-cash stock-based
compensation (1) 219 18,785 (99%) 874 31,881 (97%)
Amortization 97 1,434 (93%) 369 5,562 (93%)
Depreciation 1,205 667 81% 3,470 2,151 61%
Transaction costs (2) -- 1,955 N/M 139 1,955 (93%)
------------------ ------------------
Total expenses 27,006 44,574 (39%)102,518 113,032 (9%)
------------------ ------------------
Income (loss) from
operations 23,491 (4,839) N/M 86,265 16,478 N/M
Interest (income)
expense, net (126) 2,153 N/M (343) 13,933 N/M
------------------ ------------------
Income (loss) before
income taxes and
extraordinary item 23,617 (6,992) N/M 86,608 2,545 N/M
Income tax expense
(benefit) 9,211 (3,483) N/M 34,252 1,476 N/M
Extraordinary loss on
early extinguishment of
debt, net of income tax
benefit (3) -- 5,455 N/M -- 5,455 N/M
------------------ ------------------
Net income (loss) $14,406 $(8,964) N/M $52,356 $(4,386) N/M
================== ==================
Basic and diluted net
income (loss) per
common share:
Basic net income
(loss) per common
share $0.34 $(0.25) N/M $1.23 $(0.14) N/M
================== ==================
Diluted net income
(loss) per common
share $0.31 $(0.25) N/M $1.12 $(0.14) N/M
================== ==================
Weighted average common
shares outstanding -
basic 42,256 36,001 17% 42,534 30,641 39%
================== ==================
Weighted average common
shares outstanding -
diluted 45,767 36,001 27% 46,805 30,641 53%
================== ==================
Other Financial and
Operating Data:
Average travelers on
assignment 8,165 6,883 19% 7,783 5,964 31%
================== ==================
Revenue per traveler per
day $275.63 $253.75 9% $273.05 $237.86 15%
================== ==================
Gross profit per
traveler per day $67.22 $62.75 7% $66.45 $59.49 12%
================== ==================
Adjusted EBITDA (4) $25,012 $18,002 39% $91,117 $58,027 57%
================== ==================
12.1% 11.2% 11.7% 11.2%
Adjusted cash earnings
(5) $14,600 $8,957 63% $53,192 $24,747 115%
================== ==================
Adjusted cash earnings
per diluted share $0.32 $0.23 39% $1.14 $0.74 54%
================== ==================
(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) Transaction costs represent costs incurred in connection with the acquisition of Healthcare Resource Management Corporation in 2002 and the company's initial public offering. (3) Extraordinary loss on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt, net of tax, represents the impact of the retirement of debt with the proceeds of the company's initial public offering. (4) Adjusted EBITDA represents net income plus interest, taxes, depreciation, amortization, transaction costs, non-cash stock-based compensation expense and extraordinary loss on early extinguishment of debt, net of tax. The company believes that adjusted EBITDA is a useful supplement to net income (loss) as an indication of operating performance. Adjusted EBITDA is a key financial measure but 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 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 and 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. 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. (5) Adjusted cash earnings represents net income excluding the tax-effected impact of non-cash stock-based compensation, transaction costs, amortization expense and extraordinary loss on early extinguishment of debt. The company believes adjusted cash earnings is a useful supplement to net income (loss) when comparing 2002 results to 2001 results due to the earnings impact of the initial public offering in 2001 and the impact of the adoption of FAS 142 on January 1, 2002, which ceased the amortization of goodwill. Adjusted cash earnings is a key financial measure but is not intended to represent net income for the period, nor has it been presented as an alternative to net income and 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 cash earnings 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 Cash Earnings Reconciliation
(dollars and shares in thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 % Chg 2002 2001 % Chg
-----------------------------------------
Net income (loss) $14,406 $(8,964) $52,356 $(4,386)
Adjustments, net of tax:
Non-cash stock-based
compensation 135 10,467 529 19,243
Extraordinary loss on early
extinguishment of debt, net
of income tax benefit -- 5,455 -- 5,455
Transaction costs -- 1,153 84 1,153
Amortization expense 59 846 223 3,282
---------------- ----------------
Adjusted cash earnings (1) $14,600 $8,957 63%$53,192 $24,747 115%
================ ================
Adjusted cash earnings per
common share:
Basic $0.35 $0.25 40% $1.25 $0.81 54%
================ ================
Diluted $0.32 $0.23 39% $1.14 $0.74 54%
================ ================
Weighted average common shares
outstanding:
Basic 42,256 36,001 17% 42,534 30,641 39%
================ ================
Diluted 45,767 39,681 15% 46,805 33,508 40%
================ ================
(1) Adjusted cash earnings represents net income excluding the tax-effected impact of non-cash stock-based compensation, transaction costs, amortization expense and extraordinary loss on early extinguishment of debt. The company believes adjusted cash earnings is a useful supplement to net income (loss) when comparing 2002 results to 2001 results due to the earnings impact of the initial public offering in 2001 and the impact of the adoption of FAS 142 on January 1, 2002, which ceased the amortization of goodwill. Adjusted cash earnings is a key financial measure but is not intended to represent net income for the period, nor has it been presented as an alternative to net income and 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 cash earnings 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 Twelve Months Ended
December 31, December 31,
2002 2001 % Chg 2002 2001 % Chg
----------------------------------------
Net income (loss) $14,406 $(8,964) $52,356 $(4,386)
Adjustments:
Interest (income) expense (126) 2,153 (343) 13,933
Income tax expense
(benefit) 9,211 (3,483) 34,252 1,476
Depreciation 1,205 667 3,470 2,151
Amortization 97 1,434 369 5,562
Non-cash stock based-
compensation 219 18,785 874 31,881
Transaction costs -- 1,955 139 1,955
Extraordinary loss on early
extinguishment of debt,
net of income tax benefit -- 5,455 -- 5,455
---------------- ----------------
Adjusted EBITDA (1) $25,012 $18,002 39%$91,117 $58,027 57%
================ ================
(1) Adjusted EBITDA represents net income plus interest, taxes, depreciation, amortization, transaction costs, non-cash stock-based compensation expense and extraordinary loss on early extinguishment of debt, net of tax. The company believes that adjusted EBITDA is a useful supplement to net income (loss) as an indication of operating performance. Adjusted EBITDA is a key financial measure but 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 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)
Dec. 31, Sept. 30, Dec. 31,
2002 2002 2001
---------------------------
Assets
Current assets:
Cash, cash equivalents and short-term
investments $40,135 $70,007 $31,968
Accounts receivable, net 134,456 129,246 105,416
Other current assets 14,062 13,066 14,556
---------------------------
Total current assets 188,653 212,319 151,940
Fixed assets, net 9,869 10,120 7,713
Goodwill, net 135,532 135,532 127,752
Deferred income taxes 12,111 16,432 19,406
Intangible and other assets 2,609 2,648 2,118
---------------------------
Total assets $348,774 $377,051 $308,929
===========================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $12,738 $13,303 $5,625
Accrued compensation and benefits 34,488 35,622 23,965
Other current liabilities 4,122 9,690 5,872
---------------------------
Total current liabilities 51,348 58,615 35,462
Other long-term liabilities 1,602 1,771 1,562
---------------------------
Total liabilities 52,950 60,386 37,024
Stockholders' equity 295,824 316,665 271,905
---------------------------
Total liabilities and stockholders'
equity $348,774 $377,051 $308,929
===========================
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion