AMN Healthcare Services, Inc. (NYSE:AMN) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET Company Participants Randy Reece - Senior Director, IR Cary Grace - Chief Executive Officer Jeff Knudson - Chief Financial Officer Conference Call Participants Trevor Romeo - William Blair Kevin Fischbeck - Bank of America Jasper Bibb - Truist Securities Brian Tanquilut - Jefferies Operator Good day and thank you for standing by. Welcome to the AMN Healthcare Third Quarter 2023 Earnings Call. At this time, ...

Financial Data and Key Metrics Changes - Second quarter revenue was $991 million, down 31% year-over-year and down 12% sequentially, driven by expense management and lower demand levels [13][20] - Gross margin for the quarter was 33.3%, up 100 basis points year-over-year, primarily due to a favorable revenue mix shift [13][14] - Net income for the second quarter was $61 million, down 51% year-over-year and down 28% sequentially [20] Business Line Data and Key Metrics Changes - Nurse and Allied revenue was $689 million, down 37% year-over-year and down 16% sequentially, with average bill rates down 19% year-over-year [15][16] - Physician and Leadership Solutions segment revenue was $176 million, flat year-over-year and up 6% sequentially, with Locum Tenens revenue increasing 15% year-over-year [17][18] - Technology and Workforce Solutions revenue was $126 million, down 16% year-over-year and 7% sequentially, with language services growing 19% year-over-year [19] Market Data and Key Metrics Changes - Demand for travel nurse staffing remains low as clients focus on balancing permanent and contingent staff [7][8] - The company expects Nurse and Allied revenue in Q3 to be approximately $65 million lower than consensus due to lower demand from large MSP clients [8][22] - The company anticipates modest growth in Nurse and Allied revenue in Q4 compared to Q3 based on early indications from clients [22] Company Strategy and Development Direction - The company is investing in technology and integrating solutions to address complex labor needs in the healthcare sector [6][11] - The company aims to enhance its Total Talent Solutions offerings and improve client relationships through technology enablement [12][71] - The company is focused on M&A opportunities to enhance its service offerings and expand its market presence [72][80] Management's Comments on Operating Environment and Future Outlook - Management noted that the healthcare environment is challenging, with clients increasing permanent hiring and seeking changes in labor management [11][23] - The company expects continued demand for its services due to aging demographics and healthcare utilization growth [45][46] - Management expressed confidence that Q3 will be the trough for Nurse and Allied revenue, with expectations for sequential growth in Q4 [62] Other Important Information - The company repurchased 2.4 million shares for a total of $250 million during the quarter, with a total of 4.1 million shares repurchased year-to-date [21] - The company has a net leverage ratio of 1.5x to 1x as of June 30 [20] Q&A Session Summary Question: What is the expected decline in Nursing Allied revenues from Q2 to Q3? - Management indicated a low double-digit decline in volume and a 7% to 8% decline in bill rates for Q3 [29][30] Question: How is the competitive environment affecting recruitment? - Management noted that while some orders are going unfilled, they believe the demand is primarily a demand story rather than a supply challenge [31][34] Question: What changes have been made to internal headcount? - Management stated that internal headcount has been reduced by around 9% since the beginning of the year, but they have retained producers in anticipation of increased demand [37][38] Question: What is the outlook for labor disruption impacts? - Management reported $5 million in labor disruption revenue in Q2, with no expected revenue from labor disruption in Q3 [41] Question: What is the outlook for the Locums business? - Management indicated strong demand in the Locums market, with expectations for continued growth driven by various specialties [49][51] Question: How does the company view the competitive landscape and M&A opportunities? - Management highlighted a competitive market with a 300% increase in the MSP pipeline year-over-year and expressed interest in both tech-enabled solutions and talent acquisition through M&A [57][80]

PART I - FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The unaudited statements show significant decreases in revenue and net income, with declining assets and equity due to share repurchases [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $2.64 billion, while stockholders' equity fell significantly due to substantial treasury stock purchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,644,143** | **$2,888,351** | **($244,208)** | | Cash and cash equivalents | $7,013 | $64,524 | ($57,511) | | Accounts receivable, net | $579,926 | $675,650 | ($95,724) | | **Total Liabilities** | **$1,877,846** | **$1,844,717** | **$33,129** | | Revolving credit facility | $190,000 | $0 | $190,000 | | **Total Stockholders' Equity** | **$766,297** | **$1,043,634** | **($277,337)** | | Treasury stock, at cost | ($1,086,862) | ($698,598) | ($388,264) | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Revenue and net income declined sharply in Q2 and the first half of 2023 compared to the prior year's pandemic-driven highs Financial Performance Summary (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | YoY Change | Six Months 2023 | Six Months 2022 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$991,299** | **$1,426,607** | **-30.5%** | **$2,117,522** | **$2,979,145** | **-28.9%** | | Gross Profit | $330,281 | $460,237 | -28.2% | $699,127 | $956,405 | -26.9% | | Income from Operations | $91,663 | $183,533 | -50.1% | $217,333 | $391,466 | -44.5% | | **Net Income** | **$60,906** | **$123,800** | **-50.8%** | **$145,016** | **$269,808** | **-46.3%** | | Diluted EPS | $1.55 | $2.77 | -44.0% | $3.58 | $5.87 | -39.0% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased due to lower net income, while financing activities were driven by significant stock repurchases Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $241,101 | $424,677 | ($183,576) | | Net cash used in investing activities | ($54,859) | ($115,762) | $60,903 | | Net cash used in financing activities | ($247,744) | ($411,688) | $163,944 | | **Net decrease in cash** | **($61,502)** | **($102,773)** | **$41,271** | - Significant cash outflow for financing activities in the first six months of 2023 was due to **$424.7 million used for the repurchase of common stock**[20](index=20&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Segment data highlights revenue declines, a $200 million share repurchase, and a $62 million legal settlement accrual Revenue by Segment (in thousands) | Segment | Q2 2023 Revenue | Q2 2022 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Nurse and allied solutions | $689,015 | $1,101,478 | -37.4% | | Physician and leadership solutions | $176,229 | $175,697 | +0.3% | | Technology and workforce solutions | $126,055 | $149,432 | -15.6% | - On May 8, 2023, the company entered into a **$200 million Accelerated Share Repurchase (ASR) agreement**, receiving an initial delivery of 1.76 million shares[47](index=47&type=chunk) - The company has reached an agreement to settle the Clarke Matter, a class action lawsuit related to per diem and overtime claims, and has recorded an **accrual of $62 million** for this matter[76](index=76&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the revenue decline driven by post-pandemic demand normalization and details segment performance and capital allocation [Recent Trends](index=23&type=section&id=Recent%20Trends) Travel nurse demand has fallen below pre-pandemic levels, while locum tenens demand remains strong amid client cost containment - Demand in the travel nurse business has **declined significantly from historic highs** in 2023, with Q2 demand remaining below pre-pandemic levels as healthcare organizations focus on hiring permanent staff[92](index=92&type=chunk) - **Bill rates in the nurse and allied solutions segment decreased** year-over-year and quarter-over-quarter in Q2 2023, reflecting less urgent needs from clients post-pandemic[93](index=93&type=chunk) - Demand for the **locum tenens business is well above pre-pandemic levels**, driven by growth in CRNAs and anesthesiologists, while demand was lower for interim leadership and search businesses[94](index=94&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q2 revenue fell 31% to $991.3 million, driven by a 37% decline in the Nurse and Allied segment, though gross margin improved - Q2 2023 revenue **decreased 31% year-over-year**, primarily due to a **37% decline in the Nurse and Allied solutions segment**, caused by a 19% decrease in average bill rate and a 17% decrease in travelers on assignment[99](index=99&type=chunk) - The Physician and Leadership solutions segment revenue was **flat in Q2 2023**, as a 15% growth in the locum tenens business was offset by declines in interim leadership and search businesses[100](index=100&type=chunk) - Consolidated **gross margin for Q2 2023 increased to 33.3% from 32.3%** in Q2 2022, mainly due to a favorable sales mix from lower revenue in the lower-margin Nurse and Allied segment[102](index=102&type=chunk)[103](index=103&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with $539.2 million available credit and actively returned capital via share repurchases - As of June 30, 2023, the company had **$190.0 million drawn and $539.2 million available** under its $750.0 million secured revolving credit facility[118](index=118&type=chunk) - In May 2023, the company entered into a **$200.0 million Accelerated Share Repurchase (ASR) agreement**, funded by borrowings under the Senior Credit Facility[119](index=119&type=chunk) - Net cash from operating activities **decreased to $241.1 million** for the first six months of 2023 from $424.7 million in 2022, primarily due to a decline in operating results[120](index=120&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk from variable-rate debt is considered immaterial, as is foreign currency risk - The company's main market risk is interest rate risk from variable rate debt, but a **100 basis point increase would not have a material effect** on financial statements for the period[128](index=128&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of the end of the quarter[130](index=130&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[131](index=131&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company settled the notable Clarke Matter wage and hour lawsuit, recording a $62 million accrual - The company has reached an agreement to settle the Clarke Matter, a class action lawsuit concerning per diem benefits and overtime calculations, and has **accrued $62 million for the settlement**[76](index=76&type=chunk)[133](index=133&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the 2022 Annual Report on Form 10-K have been identified - There have been **no material changes** to the risk factors disclosed in the company's 2022 Annual Report[134](index=134&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased $424.7 million in shares during H1 2023, with $226.7 million remaining under its authorization - On May 8, 2023, the company entered into a **$200 million Accelerated Share Repurchase (ASR) agreement**, receiving an initial delivery of 1.8 million shares[136](index=136&type=chunk) Share Repurchases for the Six Months Ended June 30, 2023 | Period | Total Shares Purchased | Average Price Paid | Total Value (excl. ASR prepayment) | | :--- | :--- | :--- | :--- | | Jan - Mar 2023 | 1,767,949 | $96.56 | ~$170.7M | | Apr - Jun 2023 | 2,354,108 (incl. ASR) | $90.08 | ~$212.0M | - As of June 30, 2023, the maximum dollar value of shares that may yet be purchased under the program is **$226.7 million**[139](index=139&type=chunk)[140](index=140&type=chunk) [Other Items (3, 4, 5, 6)](index=33&type=section&id=Other%20Items) This section confirms no senior security defaults and no new Rule 10b5-1 trading plans by insiders during the quarter - Item 3: **No defaults upon senior securities** were reported[141](index=141&type=chunk) - Item 5: **No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement** during the second quarter of 2023[142](index=142&type=chunk)

AMN Healthcare Services, Inc. (NYSE:AMN) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Randle Reece - Senior Director, Investor Relations Cary Grace - Chief Executive Officer Jeff Knudson - Chief Financial Officer Landry Seedig - Group President & Chief Operating Officer, Nursing & Allied Solutions James Taylor - President & Chief Operating Officer. Physician & Leadership Solutions Conference Call Participants Kevin Fischbeck - Bank of America Trevor Romeo - William Blair Bria ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No.: 001-16753 AMN HEALTHCARE SERVICES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-K ____________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No.: 001-16753 AMN HEALTHCARE SERVICES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaw ...

AMN Healthcare Services, Inc. (NYSE:AMN) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET Company Participants Randle Reece - Senior Director, Investor Relations Cary Grace - Chief Executive Officer Jeff Knudson - Chief Financial Officer Kelly Rakowski - Group President and COO of Strategic Talent Solutions Landry Seedig - Group President and COO of Nursing and Allied Solutions James Taylor - President and Chief Operating Officer of Physician and Leadership Solutions Conference Call Participant ...

AMN Healthcare Services, Inc. (NYSE:AMN) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Randle Reece - Senior Director, Investor Relations Susan Salka - Chief Executive Officer Jeff Knudson - Chief Financial Officer Kelly Rakowski - Group President and Chief Operating Officer, Strategic Talent Solutions Landry Seedig - Group President and Chief Operating Officer, Nursing and Allied Solutions James Taylor - President and Chief Operating Officer, Physician and Leadership Sol ...

AMN Healthcare Services, Inc. (NYSE:AMN) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Randle Reece – Senior Director-Investor Relations Susan Salka – Chief Executive Officer Jeff Knudson – Chief Financial Officer Landry Seedig – Group President and Chief Operating Officer-Nursing and Allied Solutions James Taylor – Group President and Chief Operating Officer-Physician and Leadership Solutions Kelly Rakowski – Group President and Chief Operating Officer-Strategic Talent Sol ...