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Actionable news in AHS: AMN HEALTHCARE SERVICES,

AMN Healthcare Services: Vice President, Investor Relations

The following excerpt is from the company's SEC filing.

866.861.3229

AMN HEALTHCARE ANNOUNCES THIRD QUARTER 2015 RESULTS

Quarterly revenue increases to record high $383 million; reports adjusted EPS of $0.48

(GAAP EPS of $0.69)

SAN DIEGO (November 4, 2015) AMN Healthcare Services, Inc. (NYSE: AHS), healthcares leader and innovator in workforce solutions and staffing services, today announced third quarter 2015 financial results that exceeded the Companys guidance for revenue and adjusted EBITDA. Third quarter financial highlights are as follows:

Dollars in millions, except per share amounts.

Q3 2015

% Change< br>
Q3 2014

YTD September 30,

% Change YTD

September 30, 2014

Revenue

$382.9

$1,060.5

Gross profit

$126.0

$337.6

Net income

Diluted EPS

Adjusted diluted EPS*

Adjusted EBITDA*

$118.3

* See Non-GAAP Measures below for a discussion of our use of non-GAAP items and the table entitled Supplemental Financial and Operating Data for a reconciliation of non-GAAP items.

Demand continues at historic high levels, driving strong organic growth in all business segments.

Consolidated revenue increased 45% year-over-year, driven by organic growth of 29% and the remainder from acquisitions.

Gross margin of 32.9% represented an improvement of 250 basis points year-over-year and 150 basis points from the prior quarter.

Adjusted EBITDA margin of 11.9% reflected a 370 basis point year-over-year improvement, driven by both gross margin expansion and operating leverage.

Adjusted diluted EPS of $0.48 grew 140% year-over-year.

AMN Healthcares differentiated strategy and focus on delivering a diverse portfolio of innovative workforce solutions and staffing services continues to drive industry leading performance.

The AMN Healthcare team continues to deliver exceptional service and results to our clients amidst a strong demand environment, resulting in better than anticipated revenue and profitability growth in the third quarter, said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. In addition to our focus on organic growth, we continue to expand AMNs capabilities, including our most recent acquisitions of The First String and Millican Solutions, which further bolster our physician executive and nurse leadership recruitment capabilities. With a continuing robust demand outlook in all of our business segments, we remain focused on delivering superior value to our clients and healthcare professionals through continued expansion of our innovative workforce solutions and recruitment strategies.

Third Quarter 2015 Results

For the third quarter of 2015, consolidated revenue was $383 million, an increase of 45% from the same quarter last year and 9% sequentially. Third quarter revenue for the Nurse and Allied Healthcare Staffing segment was $266 million, up 53% from the same quarter last year and 11% sequentially. Locum Tenens Staffing segment revenue in the third quarter was $102 million, an increase of 29% from the same quarter last year and up 4% sequentially. Third quarter Physician Permanent Placement Services segment revenue was $15 million, an increase of 29% from the same quarter last year and up 16% sequentially.

Third quarter gross margin of 32.9% was higher by 250 basis points than the same quarter last year and higher by 150 basis points sequentially. The year-over-year and sequential gross margin improvements were driven primarily by an increased revenue mix of our higher-margin workforce solutions businesses, along with a gross margin increase in the Locum Tenens Staffing segment.

SG&A expenses for the third quarter were $83 million, representing 21.7% of revenue, compared to 22.8% in the same quarter last year and 21.3% in the prior quarter. The

improvement from the prior year was due to operating leverage on the revenue growth. The decline from the prior quarter was due to the prior quarter including a $3 million favorable professional liability adjustment.

Third quarter net income was $34 million and net income per diluted share was $0.69. Tax expense in the quarter included a $12 million favorable reversal of tax reserves. Excluding this tax adjustment, amortization of intangible assets, and acquisition and integration costs incurred during the quarter, adjusted net income per diluted share was $0.48. Third quarter adjusted EBITDA was $46 million, a year-over-year increase of 109% and sequential increase of 16%. Third quarter adjusted EBITDA margin of 11.9% represented a 370 basis point increase year-over-year and 70 basis point increase sequentially.

At September 30, 2015, cash and cash equivalents totaled $14 million. Third quarter cash flow from operations was $22 million and capital expenditures were $7 million. The Company ended the third quarter with total debt outstanding of $214 million, with a leverage ratio of 1.5 to 1.

Business Trends and Outlook

The Company expects consolidated fourth quarter 2015 revenue of $385 to $390 million, reflecting continuing strong demand trends, slightly offset by normal seasonal declines in some businesses. Gross margin is expected to be approximately 32.0%. SG&A expenses as a percentage of revenue are expected to be approximately 21.5% to 22.0%. Adjusted EBITDA margin is expected to be approximately 10.5% to 11.0%.

About AMN Healthcare

AMN Healthcare is the leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. AMN Healthcares workforce solutions...


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