UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
Form
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of Earliest
Event Reported): March 4, 2010
AMN
Healthcare Services, Inc.
(Exact name of Registrant as
specified in its charter)
|
Delaware
|
001-16753
|
06-1500476
|
||
|
(State
or other jurisdiction of
incorporation
or organization)
|
(Commission
File No.)
|
(I.R.S.
Employer
Identification
No.)
|
|
12400
High Bluff Drive, Suite 100
San
Diego, California
|
92130
|
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(866)
871-8519
(registrant’s telephone number,
including area code)
Not
Applicable
(Former name or former address, if
changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
Section
2 – Financial Information
Item
2.02 Results of Operations and Financial Condition.
On March
4, 2010, AMN Healthcare Services, Inc. (the “Company”) reported its fourth
quarter 2009 results. The Company’s fourth quarter 2009 results are
discussed in detail in the press release which is furnished as Exhibit 99.1 to
this Form 8-K and incorporated herein by reference.
The
information in this Item 2.02 and Exhibit 99.1 attached hereto shall not be
deemed “filed” for purposes of Section 18 of the Securities Exchange Act of
1934, nor shall they be deemed incorporated by reference in any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934, except to the
extent as shall be expressly set forth by specific reference in such
filing.
Item
9.01 Financial Statements and Exhibits.
(d)
Exhibits
|
99.1
|
Press
release issued by the Company on March 4, 2010 furnished pursuant to Item
2.02 of this Form 8-K.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
AMN
Healthcare Services, Inc.
|
||||
|
By:
|
/s/
Susan R. Nowakowski
|
|||
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Susan
R. Nowakowski
|
||||
|
President
& Chief Executive
Officer
|
||||
Date:
March 4, 2010
Contact:
Amy C.
Chang
Vice
President, Investor Relations
866.861.3229
AMN
HEALTHCARE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2009 RESULTS
SAN DIEGO
– (March 4, 2010) – AMN Healthcare Services, Inc. (NYSE: AHS) today announced
operating results for the fourth quarter and full-year 2009. Financial
highlights are as follows:
(Dollars
in millions, except per share amounts)
|
Q4
2009
|
%
Chg
Q4
2008
|
%
Chg
Q3
2009
|
Full
Year
2009
|
%
Chg
2008
|
|
|
Revenue
|
$144.7
|
(51%)
|
(13%)
|
$759.8
|
(38%)
|
|
Gross
Profit
|
$41.2
|
(46%)
|
(10%)
|
$204.4
|
(36%)
|
|
Net
Loss
|
($2.7)
|
NM
|
(36%)
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($122.2)
|
NM
|
|
Loss
per Share
|
($0.08)
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NM
|
33%
|
($3.75)
|
NM
|
|
Cash
Flow from Operations
|
$5.6
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(60%)
|
(71%)
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$98.7
|
55%
|
|
Adjusted
EBITDA*
|
$10.7
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(54%)
|
1%
|
$56.8
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(41%)
|
|
Adjusted
Diluted EPS*
|
($0.02)
|
NM
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NM
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$0.32
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(69%)
|
* See
notes (2) and (3) under “Supplemental Financial and Operating Data” for a
reconciliation of non-GAAP items.
NM – Not
meaningful
“I’m
certain most would agree that 2009 represented the most challenging year in the
history of the healthcare staffing industry. The unprecedented rise in
unemployment and severe economic contraction wreaked havoc and resulted in
precipitous drops in demand volumes unlike any other
time. However, amidst the turbulence, AMN took a proactive,
disciplined and forward-looking approach to build stronger relationships with
our customers and streamline our operating model and cost
structure. These efforts have resulted in strong adjusted EBITDA
margins, improved gross margins and a healthy balance sheet,” said Susan R.
Nowakowski, President and Chief Executive Officer of AMN Healthcare. “As we
enter 2010, the industry is experiencing a period of stabilization, and AMN is
poised to benefit from the managed services and preferred provider relationships
we expanded over the past year, in addition to the operational synergies and
agility we have achieved.”
Full Year Business
Highlights
|
·
|
Streamlined
operating model and cost structure to improve future operating
leverage
|
|
·
|
Reduced
SG&A by $73 million (32%) over prior
year
|
|
·
|
Achieved
7.5% adjusted EBITDA margin despite sharp revenue
decline
|
|
·
|
Launched
new corporate branding to rationalize and unify our portfolio of
integrated services and brands
|
|
·
|
Generated
operating cash flow of $99 million, significantly paid down debt and
increased cash balance
|
|
·
|
Completed
debt refinancing in December
|
For the
fourth quarter of 2009, revenue was $145 million, a decrease of 51% from prior
year and 13% from prior quarter. Fourth quarter revenue for the Nurse and Allied
staffing segment was $74 million, a decrease of 64% from the same quarter last
year and down 10% sequentially. The Locum Tenens staffing segment generated
revenue of $63 million, a decrease of 18% from prior year and 17% from prior
quarter. Fourth quarter Physician Permanent Placement revenue was $8 million, a
decrease of 32% from prior year and 5% from prior quarter.
For the full year 2009, revenue was $760
million, a decrease of 38% from prior year. Nurse and Allied staffing segment
revenue was $431 million, a decrease of 49% from prior year, Locum Tenens
staffing segment revenue was $292 million, a decrease of 9% from prior year, and
Physician Permanent
Placement segment revenue
was $37 million, a decrease of 28% from prior year.
Gross
margin in the fourth quarter of 2009 was 28.4%, an increase of 270 bps from
prior year and an increase of 100 bps compared to the previous quarter, driven
primarily by an increase in gross margin in the Nurse and Allied segment. Full
year gross margin was 26.9%, as compared to 26.0% for prior year due to the
Locum Tenens and Physician Permanent Placement segments representing a greater
portion of our business mix, along with increases in gross margin across all
business segments.
2
Selling,
general and administrative ("SG&A") expenses for the fourth quarter of 2009
were 22% as a percentage of revenue compared to 19% in the same quarter last
year. For the full year, SG&A expenses (excluding restructuring costs of
$11.3 million) were 21% as a percentage of revenue, as compared to 19% for 2008.
Fourth quarter SG&A declined by $23 million, or 41%, over the same period in
the prior year, and sequentially by $5 million, or 12%, due largely to
cost-saving initiatives taking hold.
The
fourth quarter tax provision reflects a true-up of the effective state tax
rates, which reduced the full year 2009 effective income tax benefit rate from
28% reported in the third quarter to 26%. This had the impact of reducing the
full year 2009 income tax benefit to $43 million, as compared to income tax
expense of $27 million for prior year, reflecting effective income tax rates of
26% and 44% for these periods, respectively. The year-over-year change in the
effective income tax rate was primarily attributable to the goodwill impairment
charges recorded during 2009, a portion of which were permanently nondeductible
for tax purposes.
For the
fourth quarter, the company recorded a GAAP loss per share of $0.08 which
includes $0.06 related to debt refinancing charges. Full year GAAP loss per
share was $3.75, including the negative impacts of $3.78 for impairment charges,
$0.21 for restructuring charges, and $0.02 for non-recurring legal expenses, in
addition to the $0.06 for refinancing related charges. Average shares
outstanding for the fourth quarter and full year 2009 were 32.6
million.
As of
December 31, 2009, cash and cash equivalents totaled $27 million, compared to
$11 million as of December 31, 2008. On December 23, 2009, the company entered
into a new credit agreement, which includes a $40.0 million secured revolving
credit facility maturing in December 2012 and a $110.0 million secured term loan
maturing in December 2013. As of December 31, 2009, total term debt outstanding,
net of discount, was $106 million, with zero outstanding on the
revolver.
Business Trends and
Outlook
During
the fourth quarter and going into the first quarter, Nurse and Allied traveler
count began to show consistent, modest week-over-week increases, and demand was
above prior year levels. In Locum Tenens, volume and demand experienced declines
going into the fourth quarter, but future demand appears to have stabilized
since November. In Physician Permanent Placement, fourth quarter search activity
was sequentially lower, in line with typical seasonal trends. Despite the
stabilizing trends across the business segments, overall demand is still at
relatively low levels. The primary drivers continuing to constrain demand remain
the high national unemployment rate, continued overall economic weakness, and
stagnant admissions levels. Based on these factors, first quarter consolidated
revenue is expected to be flat compared with the prior quarter. As we look at
the sequential revenues and volumes in each of our three segments, Nurse &
Allied appears to be the strongest with slight sequential growth expected, and
the other business lines are projected to be flat to slightly down
sequentially.
3
“While
the trajectory of the recovery continues to be difficult to predict, we believe
that our comprehensive breadth of service offerings, our stronger client
contractual relationships and operational agility leave AMN poised to capture
market share and deliver better profitability as the trends improve,” added
Nowakowski. “In addition, with our healthy balance sheet and recent debt
refinancing, the company is well-positioned to focus on building future growth
through long-term strategic investments in new synergistic opportunities to
expand and diversify our business.”
About AMN Healthcare
Services
AMN Healthcare Services, Inc. is the
nation’s leading provider
of comprehensive healthcare staffing and management services. As a leading
provider of travel nurse and allied staffing services, locum tenens (temporary
physician staffing) and physician permanent placement services, AMN Healthcare
recruits and places healthcare professionals on assignments of variable lengths
and in permanent positions with clients throughout the United States, who range
from acute-care hospitals and physician practice groups to other healthcare settings, including rehabilitation centers,
dialysis clinics, pharmacies, home health service providers and ambulatory
surgery centers. For more
information, visit http://www.amnhealthcare.com.
Conference Call on March 4,
2010
AMN
Healthcare Services, Inc.'s fourth quarter 2009 conference call will be held on
Thursday, March 4, 2010, at 5:00 p.m., Eastern Time. A live webcast of the call
can be accessed through AMN Healthcare's website at http://www.amnhealthcare.com/investors.
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) 230-1059 in the U.S. or (612) 288-0337
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 at 7:00 p.m. Eastern Time on March 4, 2010, and
can be accessed until 11:59 p.m. Eastern Time on March 18, 2010, by calling
(800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code
144662.
4
Non-GAAP
Measures
This
earnings release contains certain non-GAAP financial information. These measures
are not in accordance with, or an alternative to, generally accepted accounting
principles in the United States ("GAAP"), and may be different from non-GAAP
measures reported by other companies. From time to time, additional information
regarding non-GAAP financial measures may be made available on the company's
website at http://www.amnhealthcare.com/investors.
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. Such statements include
expectations regarding first quarter revenue and stabilizing demand trends, as
well as Ms. Nowakowski's comments concerning the Company's positioning to
capture market share, deliver better profitability, and build future growth
through long-term strategic investments. The company based these forward-looking
statements on its current expectations and projections about future events.
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"
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. Factors that could cause actual
results to differ from those implied by the forward-looking statements contained
in this press release are set forth in the company's Annual Report on Form 10-K
for the year ended December 31, 2008 and its other quarterly and periodic
reports filed with the SEC. These statements reflect the company's current
beliefs and are based upon information currently available to it. Be advised
that developments subsequent to this press release are likely to cause these
statements to become outdated with the passage of time.
5
AMN
Healthcare Services, Inc.
Condensed
Consolidated Statements of Operations
(dollars
in thousands, except per share amounts)
(unaudited)
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||||||||||
|
2009
|
2008
|
%
Chg
|
2009
|
2008
|
%
Chg
|
|||||||||||||||||||
|
Revenue
|
$ | 144,698 | $ | 295,902 | (51.1 | %) | $ | 759,790 | $ | 1,217,200 | (37.6 | %) | ||||||||||||
|
Cost
of revenue
|
103,545 | 219,966 | (52.9 | %) | 555,369 | 900,211 | (38.3 | %) | ||||||||||||||||
|
Gross
profit
|
41,153 | 75,936 | (45.8 | %) | 204,421 | 316,989 | (35.5 | %) | ||||||||||||||||
| 28.4 | % | 25.7 | % | 26.9 | % | 26.0 | % | |||||||||||||||||
|
Operating
expenses:
|
||||||||||||||||||||||||
|
Selling,
general and administrative
|
32,388 | 55,176 | (41.3 | %) | 157,241 | 230,656 | (31.8 | %) | ||||||||||||||||
| 22.4 | % | 18.6 | % | 20.7 | % | 18.9 | % | |||||||||||||||||
|
Depreciation
and amortization
|
3,408 | 3,581 | (4.8 | %) | 13,812 | 14,439 | (4.3 | %) | ||||||||||||||||
|
Restructuring
charges
|
— | — | 0 | % | 11,270 | — | 100 | % | ||||||||||||||||
|
Impairment
charges
|
— | — | 0 | % | 175,707 | — | 100 | % | ||||||||||||||||
|
Total
operating expenses
|
35,796 | 58,757 | (39.1 | %) | 358,030 | 245,095 | 46.1 | % | ||||||||||||||||
|
Income
(loss) from operations
|
5,357 | 17,179 | (68.8 | %) | (153,609 | ) | 71,894 |
NM
|
||||||||||||||||
| 3.7 | % | 5.8 | % | (20.2 | %) | 5.9 | % | |||||||||||||||||
|
Interest
expense, net
|
5,373 | 2,669 | 101.3 | % | 11,955 | 10,690 | 11.8 | % | ||||||||||||||||
|
Income
(loss) before income taxes
|
(16 | ) | 14,510 | (100.1 | %) | (165,564 | ) | 61,204 |
NM
|
|||||||||||||||
|
Income
tax expense (benefit)
|
2,706 | 6,886 | (60.7 | %) | (43,387 | ) | 26,847 |
NM
|
||||||||||||||||
|
Net
income (loss)
|
$ | (2,722 | ) | $ | 7,624 |
NM
|
$ | (122,177 | ) | $ | 34,357 |
NM
|
||||||||||||
| (1.9 | %) | 2.6 | % | (16.1 | %) | 2.8 | % | |||||||||||||||||
|
Net
income (loss) per common share:
|
||||||||||||||||||||||||
|
Basic
|
$ | (0.08 | ) | $ | 0.23 |
NM
|
$ | (3.75 | ) | $ | 1.03 |
NM
|
||||||||||||
|
Diluted
|
$ | (0.08 | ) | $ | 0.23 |
NM
|
$ | (3.75 | ) | $ | 1.02 |
NM
|
||||||||||||
|
Weighted
average common shares outstanding:
|
||||||||||||||||||||||||
|
Basic
|
32,631 | 32,575 | 0.2 | % | 32,615 | 33,375 | (2.3 | %) | ||||||||||||||||
|
Diluted
|
32,631 | 32,870 | (0.7 | %) | 32,615 | 33,811 | (3.5 | %) | ||||||||||||||||
NM – Not
meaningful
6
AMN
Healthcare Services, Inc.
Supplemental
Financial and Operating Data
(dollars
in thousands, except operating data)
(unaudited)
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||||||||||||||||||
|
2009
|
%
of Rev
|
2008
|
%
of Rev
|
2009
|
%
of Rev
|
2008
|
%
of Rev
|
|||||||||||||||||||||||||
|
Revenue
|
||||||||||||||||||||||||||||||||
|
Nurse
and allied healthcare staffing
|
$ | 73,999 | $ | 207,313 | $ | 431,126 | $ | 843,747 | ||||||||||||||||||||||||
|
Locum
tenens staffing
|
62,447 | 76,413 | 291,822 | 321,954 | ||||||||||||||||||||||||||||
|
Physician
permanent placement services
|
8,252 | 12,176 | 36,842 | 51,499 | ||||||||||||||||||||||||||||
| $ | 144,698 | $ | 295,902 | $ | 759,790 | $ | 1,217,200 | |||||||||||||||||||||||||
|
Reconciliation
of Non-GAAP Items:
|
||||||||||||||||||||||||||||||||
|
Segment
Operating Income(1)
|
||||||||||||||||||||||||||||||||
|
Nurse
and allied healthcare staffing
|
$ | 7,686 | 10.4 | % | $ | 19,502 | 9.4 | % | $ | 38,076 | 8.8 | % | $ | 85,470 | 10.1 | % | ||||||||||||||||
|
Locum
tenens staffing
|
6,459 | 10.3 | % | 6,883 | 9.0 | % | 28,814 | 9.9 | % | 25,951 | 8.1 | % | ||||||||||||||||||||
|
Physician
permanent placement services
|
1,942 | 23.5 | % | 3,533 | 29.0 | % | 9,819 | 26.7 | % | 15,375 | 29.9 | % | ||||||||||||||||||||
| 16,087 | 11.1 | % | 29,918 | 10.1 | % | 76,709 | 10.1 | % | 126,796 | 10.4 | % | |||||||||||||||||||||
|
Unallocated
corporate overhead
|
5,374 | 6,767 | 19,936 | 31,141 | ||||||||||||||||||||||||||||
|
Adjusted
EBITDA(2)
|
10,713 | 7.4 | % | 23,151 | 7.8 | % | 56,773 | 7.5 | % | 95,655 | 7.9 | % | ||||||||||||||||||||
|
Depreciation
and amortization
|
3,408 | 3,581 | 13,812 | 14,439 | ||||||||||||||||||||||||||||
|
Stock-based
compensation
|
1,948 | 2,391 | 8,709 | 9,322 | ||||||||||||||||||||||||||||
|
Restructuring
charges
|
— | — | 11,270 | — | ||||||||||||||||||||||||||||
|
Impairment
charges
|
— | — | 175,707 | — | ||||||||||||||||||||||||||||
|
Unallocated
non-recurring legal expenses
|
— | — | 884 | — | ||||||||||||||||||||||||||||
|
Interest
expense, net
|
5,373 | 2,669 | 11,955 | 10,690 | ||||||||||||||||||||||||||||
|
Income
(loss) before income taxes
|
(16 | ) | 14,510 | (165,564 | ) | 61,204 | ||||||||||||||||||||||||||
|
Income
tax expense (benefit)
|
2,706 | 6,886 | (43,387 | ) | 26,847 | |||||||||||||||||||||||||||
|
Net
income (loss)
|
$ | (2,722 | ) | $ | 7,624 | $ | (122,177 | ) | $ | 34,357 | ||||||||||||||||||||||
|
GAAP
based diluted net income (loss)
per
share (EPS)
|
$ | (0.08 | ) | $ | (3.75 | ) | ||||||||||||||||||||||||||
|
Adjustments:
|
— | |||||||||||||||||||||||||||||||
|
Restructuring
charges
|
— | 0.21 | ||||||||||||||||||||||||||||||
|
Non-recurring
legal expenses
|
— | 0.02 | ||||||||||||||||||||||||||||||
|
Impairment
charges
|
— | 3.78 | ||||||||||||||||||||||||||||||
|
Refinancing
related charges
|
0.06 | 0.06 | ||||||||||||||||||||||||||||||
|
Adjusted
diluted earnings per share(3)
|
$ | (0.02 | ) | $ | 0.32 | |||||||||||||||||||||||||||
7
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||||||||||
|
2009
|
2008
|
%
Chg
|
2009
|
2008
|
%
Chg
|
|||||||||||||||||||
|
Gross
Margin
|
||||||||||||||||||||||||
|
Nurse
and allied healthcare staffing
|
27.0 | % | 23.6 | % | 24.4 | % | 23.9 | % | ||||||||||||||||
|
Locum
tenens staffing
|
26.0 | % | 26.0 | % | 26.4 | % | 26.3 | % | ||||||||||||||||
|
Physician
permanent placement services
|
60.0 | % | 58.7 | % | 59.6 | % | 59.4 | % | ||||||||||||||||
|
Operating Data:
|
||||||||||||||||||||||||
|
Nurse
and allied healthcare staffing
|
||||||||||||||||||||||||
|
Average
travelers on assignment(4)
|
2,396 | 6,865 | (65.1 | %) | 3,562 | 7,036 | (49.4 | %) | ||||||||||||||||
|
Revenue
per traveler per day(5)
|
$ | 335.70 | $ | 328.25 | 2.3 | % | $ | 331.60 | $ | 327.65 | 1.2 | % | ||||||||||||
|
Gross
profit per traveler per day(5)
|
$ | 90.52 | $ | 77.41 | 16.9 | % | $ | 81.06 | $ | 78.34 | 3.5 | % | ||||||||||||
|
Locum
tenens staffing
|
||||||||||||||||||||||||
|
Days
filled(6)
|
43,276 | 53,145 | (18.6 | %) | 203,413 | 222,341 | (8.5 | %) | ||||||||||||||||
|
Revenue
per day filled(6)
|
$ | 1,442.99 | $ | 1,437.82 | 0.4 | % | $ | 1,434.63 | $ | 1,448.02 | (0.9 | %) | ||||||||||||
|
Gross
profit per day filled(6)
|
$ | 375.55 | $ | 374.37 | 0.3 | % | $ | 378.86 | $ | 380.68 | (0.5 | %) | ||||||||||||
|
As
of December 31,
|
||||||||||||||||||||||||
|
2009
|
2008
|
|||||||||||||||||||||||
|
Leverage
Ratio(7)
|
1.9 | 1.5 | ||||||||||||||||||||||
|
(1)
|
Segment
Operating Income represents net income (loss) plus interest expense (net
of interest income), income taxes, depreciation and amortization,
restructuring charges, impairment charges, non-recurring legal expenses,
unallocated corporate expenses, and stock-based compensation expense.
Management believes that Segment Operating Income is an industry wide
financial measure that is useful both to management and investors when
evaluating the company’s performance. Management also uses Segment
Operating Income for planning purposes. Segment Operating Income is not
necessarily comparable to other similarly titled captions of other
companies due to potential inconsistencies in the method of calculation
and allocation of costs.
|
|
(2)
|
Adjusted
EBITDA represents net income (loss) plus interest expense (net of interest
income), income taxes, depreciation and amortization, restructuring
charges, impairment charges, non-recurring legal expenses, and 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.
Management also uses adjusted EBITDA for planning purposes. Management
uses adjusted EBITDA to evaluate the company’s performance because it
believes that adjusted EBITDA provides an effective measure of the
company’s results, as it excludes certain items that management believes
are not indicative of the company’s operating performance and considers
measures used in credit facilities. However, adjusted EBITDA is not
intended to represent cash flows for the period, nor has it been presented
as an alternative to income (loss) from operations or net income (loss) 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 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.
|
|
(3)
|
Adjusted
diluted earnings per share represents GAAP EPS plus restructuring and
impairment charges, non-recurring legal expenses and refinancing related
charges. The per share adjustments used in the adjusted EPS calculation
are net of the Company's estimated statutory tax rate. Management presents
adjusted EPS because it believes that adjusted EPS is a useful supplement
to diluted net loss per share as an indicator of operating performance.
Management believes such a measure provides a picture of the company's
results that is more comparable among periods since it excludes the impact
of items that may recur occasionally, but tend to be irregular as to
timing, thereby distorting comparisons between periods. However, investors
should note that this non-GAAP measure involves judgment by management (in
particular, judgment as to what is classified as a special item to be
excluded from adjusted EPS). As defined, adjusted EPS 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 EPS are not
indicative of the company's operating performance, these items do impact
the income statement, and management therefore utilizes adjusted EPS as an
operating performance measure in conjunction with GAAP measures such as
GAAP EPS.
|
|
(4)
|
Average
travelers on assignment represents the average number of nurse and allied
healthcare professionals on assignment during the period
presented.
|
|
(5)
|
Revenue
per traveler per day and gross profit per traveler per day represent the
revenue and gross profit of the company’s nurse and allied healthcare
staffing segment divided by average travelers on assignment, divided by
the number of days in the period
presented.
|
|
(6)
|
Days
filled is calculated by dividing the locum tenens hours filled during the
period by 8 hours. Revenue per day filled and gross profit per day filled
represent revenue and gross profit of the company’s locum tenens staffing
segment divided by days filled for the period
presented.
|
|
(7)
|
Leverage
ratio represents the ratio of the total debt outstanding at the end of the
period to the Adjusted EBITDA for the past twelve
months.
|
8
AMN
Healthcare Services, Inc.
Condensed
Consolidated Balance Sheets
(in
thousands)
(unaudited)
|
December
31,
|
September
30,
|
December
31,
|
||||||||||
|
2009
|
|
2009
|
2008
|
|||||||||
|
Assets
|
||||||||||||
|
Current
assets:
|
||||||||||||
|
Cash
and cash equivalents
|
$ | 27,053 | $ | 22,621 | $ | 11,316 | ||||||
|
Accounts
receivable, net
|
89,498 | 96,410 | 182,562 | |||||||||
|
Prepaid
expenses
|
6,550 | 6,748 | 9,523 | |||||||||
|
Income
taxes receivable
|
3,900 | 2,108 | 3,440 | |||||||||
|
Deferred
income taxes, net
|
8,534 | 17,805 | 18,085 | |||||||||
|
Other
current assets
|
1,902 | 2,782 | 4,901 | |||||||||
|
Total
current assets
|
137,437 | 148,474 | 229,827 | |||||||||
|
Restricted
cash and cash equivalents
|
22,025 | — | — | |||||||||
|
Fixed
assets, net
|
19,970 | 21,581 | 24,018 | |||||||||
|
Deposits
and other assets
|
14,368 | 12,488 | 13,252 | |||||||||
|
Goodwill
|
79,868 | 79,868 | 252,875 | |||||||||
|
Intangible
assets, net
|
115,336 | 116,537 | 122,845 | |||||||||
|
Total
assets
|
$ | 389,004 | $ | 378,948 | $ | 642,817 | ||||||
|
Liabilities
and stockholders’ equity
|
||||||||||||
|
Current
liabilities:
|
||||||||||||
|
Bank
overdraft
|
— | — | $ | 3,995 | ||||||||
|
Accounts
payable and accrued expenses
|
18,057 | 18,929 | 24,420 | |||||||||
|
Accrued
compensation and benefits
|
24,054 | 29,431 | 44,871 | |||||||||
|
Revolving
credit facility
|
— | — | 31,500 | |||||||||
|
Current
portion of notes payable
|
5,500 | 10,845 | 14,580 | |||||||||
|
Deferred
revenue
|
5,084 | 5,404 | 7,184 | |||||||||
|
Other
current liabilities
|
10,404 | 14,502 | 14,722 | |||||||||
|
Total
current liabilities
|
63,099 | 79,111 | 141,272 | |||||||||
|
Notes
payable, less current portion and discount
|
100,121 | 66,425 | 100,236 | |||||||||
|
Deferred
income taxes, net
|
789 | 4,615 | 58,466 | |||||||||
|
Other
long-term liabilities
|
54,151 | 57,277 | 58,710 | |||||||||
|
Total
liabilities
|
218,160 | 207,428 | 358,684 | |||||||||
|
Stockholders’
equity
|
170,844 | 171,520 | 284,133 | |||||||||
|
Total
liabilities and stockholders’ equity
|
$ | 389,004 | $ | 378,948 | $ | 642,817 | ||||||
9
AMN
Healthcare Services, Inc.
Condensed
Consolidated Statements of Cash Flows
(in
thousands)
(unaudited)
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December
31,
|
December
31,
|
December
31,
|
December
31,
|
|||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
cash provided by operating activities
|
$ | 5,582 | $ | 13,802 | $ | 98,732 | $ | 63,694 | ||||||||
|
Net
cash used in investing activities
|
(22,887 | ) | (1,819 | ) | (29,245 | ) | (48,247 | ) | ||||||||
|
Net
cash provided (used in) financing activities
|
21,721 | (8,296 | ) | (53,810 | ) | (22,334 | ) | |||||||||
|
Effect
of exchange rates on cash
|
16 | (176 | ) | 60 | (292 | ) | ||||||||||
|
Net
increase (decrease) in cash and cash equivalents
|
4,432 | 3,511 | 15,737 | (7,179 | ) | |||||||||||
|
Cash
and cash equivalents at beginning of period
|
22,621 | 7,805 | 11,316 | 18,495 | ||||||||||||
|
Cash
and cash equivalents at end of period
|
$ | 27,053 | $ | 11,316 | $ | 27,053 | $ | 11,316 | ||||||||
10