Company Overview and Strategy - AMN Healthcare is a purpose-driven, values-based organization committed to serving all stakeholders[6] - The company is a leader and innovator in total talent solutions for healthcare, uniquely positioned to serve growing health systems and diverse care settings[6] - AMN Healthcare is well-positioned to generate long-term profitable growth with a strong balance sheet and cash flow generation[6] - The company sees continued opportunity for disciplined and strategic M&A to deliver higher margins and more resilient revenues[6] - The company's strategy includes investing in innovation, leveraging total talent solutions, being a holistic partner for clients, and sustaining financial discipline[49] Financial Performance and Metrics - The company's Last Twelve Month (LTM) revenue is $4.2 billion[8] - The company's LTM Adjusted EBITDA is $388 million[9] - The company's LTM Free Cash Flow is $209 million[9] - The company's LTM Gross Margin is 32.8%[9] - The company's LTM Adjusted EBITDA Margin is 14.5%[9] - The company's LTM Free Cash Flow Conversion is 54%[9]

AMN Healthcare Services, Inc. (NYSE:AMN) Q1 2021 Earnings Conference Call May 6, 2021 5:00 PM ET Company Participants Randy Reece - Director of Investor Relations Susan Salka - Chief Executive Officer Brian Scott - Chief Financial Officer Landry Seedig - Group President and Chief Operating Officer of Nursing and Allied Solutions Kelly Rakowski - Group President and Chief Operating Officer of Strategic Talent Solutions James Taylor - Group President and COO of Physician and Leadership Solutions Conference Ca ...

PART I - FINANCIAL INFORMATION [Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Unaudited Q1 2021 consolidated financial statements reflect 47% revenue growth to $885.9 million, net income of $70.4 million, total assets of $2.64 billion, and operating cash flow at $39.1 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.64 billion** as of March 31, 2021, driven by current assets, while total liabilities rose to **$1.75 billion** and equity to **$894.1 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $830,357 | $533,735 | | **Total assets** | $2,643,122 | $2,353,507 | | **Total current liabilities** | $598,994 | $422,957 | | **Total liabilities** | $1,749,062 | $1,533,830 | | **Total stockholders' equity** | $894,060 | $819,677 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2021 saw revenue increase **47%** to **$885.9 million**, gross profit grow **43%** to **$288.9 million**, and net income surge to **$70.4 million**, with diluted EPS at **$1.47** Q1 2021 vs. Q1 2020 Performance (in thousands, except per share amounts) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | **Revenue** | $885,945 | $602,461 | | **Gross Profit** | $288,868 | $202,066 | | **Income from operations** | $104,402 | $35,743 | | **Net income** | $70,378 | $12,965 | | **Diluted EPS** | $1.47 | $0.27 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2021 operating cash flow was **$39.1 million**, a decrease from prior year, while investing activities provided **$2.8 million**, a significant shift from Q1 2020's **$492.1 million** use Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $39,131 | $51,365 | | **Net cash provided by (used in) investing activities** | $2,794 | $(492,137) | | **Net cash provided by financing activities** | $24,767 | $456,126 | - The significant use of cash in investing activities in Q1 2020 was due to **$476.4 million** paid for acquisitions, primarily Stratus Video[17](index=17&type=chunk)[112](index=112&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail financial impacts of the Stratus Video acquisition, strong segment revenue growth in Nurse and Allied Solutions (**55%**) and Technology and Workforce Solutions (**120%**), the Synzi/SnapMD acquisition, and ongoing wage and hour legal proceedings - On February 14, 2020, the company acquired Stratus Video for an initial purchase price of **$485.6 million**, with its results included in the technology and workforce solutions segment[36](index=36&type=chunk)[37](index=37&type=chunk) - On April 7, 2021, the company acquired Synzi Holdings, Inc. and its subsidiary SnapMD, LLC, for **$42.5 million** in cash to expand its virtual care communication platforms[80](index=80&type=chunk) Segment Revenue (in thousands) | Segment | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Nurse and allied solutions | $656,661 | $424,346 | +55% | | Physician and leadership solutions | $140,756 | $137,842 | +2% | | Technology and workforce solutions | $88,528 | $40,273 | +120% | | **Total Revenue** | **$885,945** | **$602,461** | **+47%** | - The company is involved in class action lawsuits regarding wage and hour claims (Clarke Matter), alleging per diem benefits should be included in overtime calculations, with an adverse Ninth Circuit ruling on February 8, 2021, leading to a **$20 million** accrual increase in Q4 2020 and a possible additional loss of up to **$15 million**[73](index=73&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **47%** revenue growth to organic expansion and the Stratus Video acquisition, noting COVID-19's impact on demand, a slight gross margin decline, and strong liquidity with the Additional Term Loan paid off - The COVID-19 pandemic led to historically high demand for nurses and certain allied healthcare professionals in late 2020 and early 2021, which has continued at elevated levels[88](index=88&type=chunk) - Revenue increased **47%** to **$885.9 million** in Q1 2021, primarily due to a **55%** increase in Nurse and allied solutions revenue and a **120%** increase in Technology and workforce solutions revenue[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - Gross margin declined to **32.6%** from **33.5%** in the prior year, mainly due to lower bill-to-pay spreads in the nurse and allied solutions segment, which experienced significant revenue growth[102](index=102&type=chunk) - The company paid off the remaining balance of its **$250.0 million** Additional Term Loan during the first quarter of 2021[109](index=109&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations on variable-rate debt, with a **100 basis point** increase deemed immaterial, and foreign currency risk considered negligible - The company's primary market risk is interest rate risk from variable-rate debt, while foreign currency risk is deemed immaterial[122](index=122&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[123](index=123&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter[124](index=124&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note (9) of the financial statements, detailing ongoing legal matters, primarily class action lawsuits concerning wage and hour claims like the 'Clarke Matter' - Information regarding legal proceedings is detailed in Note (9) of the financial statements[126](index=126&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors disclosed in the 2020 Annual Report, with key risks including COVID-19 impacts, talent retention, and legal challenges - There have been no material changes to the risk factors previously disclosed in the 2020 Annual Report[127](index=127&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock under its authorized program during the three months ended March 31, 2021 - The company did not repurchase any shares of its common stock during the first quarter of 2021[129](index=129&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including management compensation agreements, CEO/CFO certifications, and XBRL data files - Exhibits filed with the report include CEO/CFO certifications (31.1, 31.2, 32.1, 32.2) and various equity plan agreements[132](index=132&type=chunk)

Part I [Business](index=4&type=section&id=Item%201.%20Business) AMN Healthcare provides total talent solutions for the U.S. healthcare industry through three segments, focusing on customer relationships, innovation, and strategic acquisitions - The company's mission is to deliver talent and insights to optimize healthcare workforces, provide opportunities for healthcare professionals, and foster a values-based culture[11](index=11&type=chunk) - AMN Healthcare operates through three reportable segments as of 2020: (1) Nurse and Allied Solutions, (2) Physician and Leadership Solutions, and (3) Technology and Workforce Solutions[25](index=25&type=chunk) - Managed Services Programs (MSPs) are a key part of the business, with approximately **$1.7 billion in annualized gross billings** under management and accounting for about **50% of consolidated revenue in 2020**[26](index=26&type=chunk) - Kaiser Foundation Hospitals and its affiliates represented approximately **14% of the company's consolidated revenue** and **17% of the nurse and allied solutions segment's revenue** for the year ended December 31, 2020[33](index=33&type=chunk) Estimated 2020 U.S. Healthcare Staffing Market Size (by SIA) | Market Segment | Estimated 2020 Market Size (in billions) | | :--- | :--- | | Travel Nurse | $6.7 billion | | Per Diem Nurse | $3.5 billion | | Locum Tenens | $3.4 billion | | Allied Healthcare | $3.7 billion | | **Total** | **$17.3 billion** | [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks related to demand fluctuations, regulatory and legal liabilities, operational challenges including cybersecurity, and financial risks from substantial indebtedness - The COVID-19 pandemic has caused significant fluctuations in demand for staffing services and could continue to adversely affect business operations and financial results[45](index=45&type=chunk)[47](index=47&type=chunk)[51](index=51&type=chunk) - Consolidation among healthcare delivery organizations could increase their bargaining power, negatively affecting service pricing. A single client, Kaiser Foundation Hospitals, accounted for approximately **14% of consolidated revenue in 2020**, representing a concentration risk[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - The company is subject to legal proceedings and claims related to medical malpractice, employment laws (including wage and hour class actions), and privacy regulations, which could result in substantial liabilities[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - Cybersecurity incidents and security breaches pose a significant risk, as the company collects and stores sensitive personal and proprietary information, and a breach could lead to legal claims, operational disruption, and reputational damage[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - As of December 31, 2020, the company's total indebtedness was **$862.6 million**, which could increase vulnerability to adverse economic conditions and limit operational flexibility due to restrictive covenants[104](index=104&type=chunk) [Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[114](index=114&type=chunk) [Properties](index=23&type=section&id=Item%202.%20Properties) All company properties are leased office facilities, with principal locations in San Diego, California, and Dallas, Texas, deemed adequate for current needs Principal Leased Office Spaces (as of Dec 31, 2020) | Location | Square Feet | | :--- | :--- | | San Diego, California | 175,672 | | Dallas, Texas | 108,502 | [Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 12, "Commitments and Contingencies," in the Financial Statements and Supplementary Data section - Details on legal proceedings are located in Note 12 of the Consolidated Financial Statements[115](index=115&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business operations - Not applicable[116](index=116&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AMN Healthcare's common stock trades on the NYSE under 'AMN,' with no cash dividends paid or anticipated, and no share repurchases in 2020 - The company's common stock trades on the New York Stock Exchange under the ticker symbol **"AMN"**[117](index=117&type=chunk) - No cash dividends have been paid in the past, and the company does not expect to pay them in the future, instead retaining earnings for business operations, debt repayment, and potential share repurchases[120](index=120&type=chunk) - The company did not repurchase any shares of its common stock during 2020 under its authorized repurchase program[119](index=119&type=chunk) [Selected Financial Data](index=25&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year summary of key financial data from 2016 to 2020, showing revenue growth and fluctuating net income, with comparability affected by acquisitions Five-Year Selected Financial Data (in thousands, except per share data) | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$2,393,714** | **$2,222,107** | **$2,136,074** | **$1,988,454** | **$1,902,225** | | **Gross Profit** | $791,778 | $743,465 | $696,383 | $644,419 | $619,724 | | **Income from Operations** | $149,265 | $176,915 | $202,828 | $212,440 | $191,632 | | **Net Income** | **$70,665** | **$113,988** | **$141,741** | **$132,558** | **$105,838** | | **Diluted EPS** | **$1.48** | **$2.40** | **$2.91** | **$2.68** | **$2.15** | | **Total Assets** | $2,353,507 | $1,931,646 | $1,492,721 | $1,253,957 | $1,186,881 | | **Total Notes Payable** | $862,649 | $617,159 | $320,607 | $319,843 | $362,942 | | **Total Stockholders' Equity** | $819,677 | $736,742 | $638,990 | $562,527 | $449,383 | - The comparability of financial data is affected by acquisitions, including Stratus Video in 2020, Advanced and Silversheet in 2019, and MedPartners in 2018[125](index=125&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, including an 8% revenue increase in 2020, segment reorganization, pandemic impact, liquidity, and critical accounting policies - Effective in 2020, the company reorganized into three reportable segments: (1) Nurse and Allied Solutions, (2) Physician and Leadership Solutions, and (3) Technology and Workforce Solutions[130](index=130&type=chunk) Comparison of Results for Year Ended Dec 31, 2020 vs. 2019 | Metric | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Revenue | $2,393.7M | $2,222.1M | +8% | | Gross Profit | $791.8M | $743.5M | +6% | | Gross Margin | 33.1% | 33.5% | -40 bps | | Net Income | $70.7M | $114.0M | -38% | Segment Revenue Performance (2020 vs. 2019) | Segment | 2020 Revenue | 2019 Revenue | Change | | :--- | :--- | :--- | :--- | | Nurse and Allied Solutions | $1,699.3M | $1,562.6M | +9% | | Physician and Leadership Solutions | $466.6M | $562.8M | -17% | | Technology and Workforce Solutions | $227.8M | $96.8M | +135% | - The COVID-19 pandemic significantly impacted demand, with historically high demand for nurses in late 2020, while demand for other services like locum tenens and permanent placement declined due to the suspension of elective procedures[136](index=136&type=chunk)[140](index=140&type=chunk) - Net cash from operating activities increased to **$256.8 million** in 2020 from **$224.9 million** in 2019, partly due to the deferral of employer payroll taxes under the CARES Act[166](index=166&type=chunk) - Net cash used in investing activities was **$538.2 million** in 2020, primarily for the acquisition of Stratus Video for **$476.5 million**[167](index=167&type=chunk) - Critical accounting policies include the valuation and impairment testing of goodwill and indefinite-lived intangible assets, estimation of professional liability reserves, and accounting for contingent liabilities and income taxes[188](index=188&type=chunk)[189](index=189&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations on variable-rate debt, with foreign currency risk considered immaterial due to predominantly U.S. revenue - The primary market risk is interest rate risk from variable interest debt instruments[200](index=200&type=chunk) - Foreign currency risk is considered immaterial because substantially all revenue was generated in the United States in 2020[200](index=200&type=chunk) [Financial Statements and Supplementary Data](index=42&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes audited consolidated financial statements, the independent auditor's unqualified report, and notes detailing acquisitions, debt structure, and legal contingencies - The independent auditor, KPMG LLP, issued an unqualified opinion on the consolidated financial statements. Critical Audit Matters identified were the professional liability reserve and the fair value of intangible assets acquired in the Stratus Video acquisition[204](index=204&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[212](index=212&type=chunk) Key Consolidated Balance Sheet Data (in thousands) | Account | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Current Assets | $533,735 | $560,499 | | Goodwill | $864,485 | $595,551 | | Total Assets | $2,353,507 | $1,931,646 | | Total Current Liabilities | $422,957 | $378,105 | | Notes Payable, net | $857,961 | $617,159 | | Total Liabilities | $1,533,830 | $1,194,904 | | Total Stockholders' Equity | $819,677 | $736,742 | - The company completed the acquisition of Stratus Video on February 14, 2020, for a purchase price of **$485.7 million**, resulting in **$269.0 million of goodwill** and **$228.0 million of identified intangible assets**[283](index=283&type=chunk)[284](index=284&type=chunk) - As of December 31, 2020, the company had **$871.9 million in total debt outstanding**, consisting of the Additional Term Loan, 2027 Senior Notes, and 2029 Senior Notes[353](index=353&type=chunk) - The company is involved in wage and hour class action lawsuits. Due to a recent adverse appellate court ruling in the Clarke Matter, the company recorded an additional accrual of **$20.0 million** in the fourth quarter of 2020 and estimates a possible additional loss of up to **$15.0 million**[375](index=375&type=chunk)[376](index=376&type=chunk) [Changes In and Disagreements With Accountants on Accounting and Financial Disclosure](index=78&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles or financial disclosure - None reported[379](index=379&type=chunk) [Controls and Procedures](index=78&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020, excluding the Stratus Video acquisition - Management concluded that disclosure controls and procedures were effective as of December 31, 2020[380](index=380&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2020, based on the COSO framework[381](index=381&type=chunk) - The assessment of internal control over financial reporting excluded the Stratus Video business, which was acquired in 2020[382](index=382&type=chunk) [Other Information](index=81&type=section&id=Item%209B.%20Other%20Information) Director Michael M.E. Johns, M.D., will not seek re-election at the 2021 annual meeting, leading to a reduction in the Board of Directors to eight members - Board member Michael M.E. Johns, M.D., will not stand for re-election at the 2021 annual meeting after **12 years of service**[395](index=395&type=chunk) - The Board of Directors will be reduced to **eight members** following the 2021 annual meeting[395](index=395&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=81&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2021 Annual Meeting Proxy Statement, including the Code of Ethics for Senior Financial Officers - Information is incorporated by reference from the 2021 Annual Meeting Proxy Statement[396](index=396&type=chunk) - The company has adopted a Code of Ethics for Senior Financial Officers, available on its investor relations website[396](index=396&type=chunk) [Executive Compensation](index=81&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the 2021 Annual Meeting Proxy Statement - Information is incorporated by reference from the 2021 Annual Meeting Proxy Statement[398](index=398&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=81&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference from the 2021 Annual Meeting Proxy Statement, detailing securities to be issued and available for future issuance under equity plans - Information on security ownership is incorporated by reference from the 2021 Annual Meeting Proxy Statement[398](index=398&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2020) | Plan Category | Number of Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Number of Securities Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | Approved by security holders | 696,200 | $— | 2,829,752 | | Not approved by security holders | 20,944 | $— | 179,056 | | **Total** | **717,144** | **$—** | **3,008,808** | [Certain Relationships and Related Transactions, and Director Independence](index=82&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2021 Annual Meeting Proxy Statement - Information is incorporated by reference from the 2021 Annual Meeting Proxy Statement[405](index=405&type=chunk) [Principal Accounting Fees and Services](index=82&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2021 Annual Meeting Proxy Statement - Information is incorporated by reference from the 2021 Annual Meeting Proxy Statement[406](index=406&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=83&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements and exhibits filed with the report, with all financial statement schedules omitted as information is presented elsewhere - This section contains the list of consolidated financial statements filed with the report[408](index=408&type=chunk) - All financial statement schedules were omitted because the required information is presented elsewhere or is not applicable[408](index=408&type=chunk) - A detailed list of exhibits filed with the report is provided, including acquisition agreements, debt indentures, and executive certifications[409](index=409&type=chunk)[410](index=410&type=chunk)[412](index=412&type=chunk) [Form 10-K Summary](index=87&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company did not provide a Form 10-K summary - None[416](index=416&type=chunk)

AMN Healthcare Services, Inc. (NYSE:AMN) Q4 2020 Results Conference Call February 18, 2021 5:00 PM ET Company Participants Randy Reece - Director of Investor Relations Susan Salka - Chief Executive Officer Brian Scott - Chief Financial Officer Kelly Rakowski - Group President & Chief Operating Officer of Strategic Talent Solutions Landry Seedig - Group President & Chief Operating Officer of Nursing and Allied Solutions Maureen Huber - President of Workforce Technology Solutions. Conference Call Participants ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ Title of Each Class Trading Symbol Name of each exchange on which registered Common Stock, $0.01 par value AMN New York Stock Exchange ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides the company's unaudited condensed consolidated financial statements, including balance sheets, income statements, and cash flows, along with detailed notes [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company presents its unaudited financial position as of June 30, 2020, showing an increase in total assets and liabilities primarily due to recent acquisitions, notably Stratus Video, with revenue increasing 13.6% year-over-year for Q2 but net income decreasing 22.7% due to higher expenses [Condensed Consolidated Balance Sheets](index=4&type=page&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, highlighting significant changes in assets and liabilities driven by recent acquisitions Balance Sheet Items (in millions) | Balance Sheet Items (in millions) | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$2,364.8** | **$1,931.6** | | Total Current Assets | $518.6 | $560.5 | | Goodwill | $870.1 | $595.6 | | **Total Liabilities** | **$1,587.4** | **$1,194.9** | | Total Current Liabilities | $384.5 | $378.1 | | Notes payable, less unamortized fees | $856.1 | $617.2 | | **Total Stockholders' Equity** | **$777.4** | **$736.7** | - Goodwill increased significantly from **$595.6 million** at year-end 2019 to **$870.1 million** as of June 30, 2020, primarily due to the acquisition of Stratus Video[7](index=7&type=chunk)[62](index=62&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=4&type=page&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines the company's revenue, gross profit, operating income, and net income for the three and six months ended June 30, 2020 and 2019 Income Statement (in millions, except EPS) | Income Statement (in millions, except EPS) | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$608.4** | **$535.2** | **$1,210.8** | **$1,067.6** | | Gross Profit | $197.5 | $179.5 | $399.6 | $356.3 | | Income from Operations | $38.4 | $45.2 | $74.1 | $90.2 | | **Net Income** | **$22.3** | **$28.9** | **$35.3** | **$63.0** | | **Diluted EPS** | **$0.47** | **$0.61** | **$0.74** | **$1.32** | [Condensed Consolidated Statements of Cash Flows](index=7&type=page&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash inflows and outflows from operating, investing, and financing activities Cash Flow Activity (in millions) | Cash Flow Activity (in millions) | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $128.3 | $65.3 | | Net cash used in investing activities | ($513.3) | ($240.7) | | Net cash provided by financing activities | $329.0 | $189.3 | | **Net (decrease) increase in cash** | **($56.1)** | **$13.7** | - Cash used in investing activities more than doubled year-over-year, driven by **$476.5 million** paid for acquisitions in the first half of 2020 compared to **$228.1 million** in the same period of 2019[14](index=14&type=chunk) [Notes to Financial Statements](index=9&type=page&id=Notes%20to%20Financial%20Statements) This section provides additional details and explanations regarding the financial statements, including the impact of COVID-19, recent acquisitions, and segment reorganization - The company is closely monitoring the impact of the COVID-19 pandemic, which could affect estimates for accounts receivable collectability and asset valuations, though no material effect was recorded as of June 30, 2020[22](index=22&type=chunk)[23](index=23&type=chunk) - On February 14, 2020, the company acquired Stratus Video for an initial purchase price of **$485.6 million**, funded through borrowings under its credit facilities[34](index=34&type=chunk)[35](index=35&type=chunk) - Effective March 8, 2020, the company reorganized its reportable segments into: (1) nurse and allied solutions, (2) physician and leadership solutions, and (3) technology and workforce solutions, with prior period data reclassified to conform to this new structure[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant impact of the COVID-19 pandemic, which created volatile demand across its business segments, leading to varied segment performance and the implementation of cost-reduction measures, while maintaining liquidity through debt and credit facilities [Overview and Recent Trends](index=28&type=page&id=Overview%20and%20Recent%20Trends) This section provides an overview of the company's performance and key trends, particularly the impact of the COVID-19 pandemic on demand and operational responses - The COVID-19 pandemic caused significant fluctuations in demand, with nursing services surging for COVID-related needs while locum tenens and other services sharply declined due to the suspension of elective procedures and non-essential healthcare[97](index=97&type=chunk)[98](index=98&type=chunk)[101](index=101&type=chunk) - The language interpretation business (Stratus Video) saw utilization decline in March but recover and exceed pre-COVID levels by mid-June as healthcare activities resumed[105](index=105&type=chunk) - In response to reduced demand from COVID-19, the company took actions in Q2 to reduce annualized SG&A expenses by approximately **$120 million**, including suspending 401(k) contributions, reducing workforce, and cutting variable compensation[107](index=107&type=chunk) [Results of Operations - Three Months Ended June 30, 2020 vs 2019](index=31&type=page&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202020%20vs%202019) This section analyzes the company's financial performance for the second quarter, comparing revenue and gross margin across segments year-over-year Revenue by Segment (in millions) | Revenue by Segment (in millions) | Q2 2020 | Q2 2019 | % Change | | :--- | :--- | :--- | :--- | | Nurse and allied solutions | $444.5 | $368.0 | +21% | | Physician and leadership solutions | $108.6 | $142.4 | -24% | | Technology and workforce solutions | $55.3 | $24.7 | +123% | | **Total Revenue** | **$608.4** | **$535.2** | **+14%** | - Consolidated gross margin decreased to **32.5%** from **33.5%** in the prior-year quarter, primarily due to lower bill-to-pay spreads in the nurse and allied solutions segment[116](index=116&type=chunk)[117](index=117&type=chunk) [Results of Operations - Six Months Ended June 30, 2020 vs 2019](index=32&type=page&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202020%20vs%202019) This section analyzes the company's financial performance for the first half of the year, comparing revenue and gross profit across segments year-over-year Revenue by Segment (in millions) | Revenue by Segment (in millions) | H1 2020 | H1 2019 | % Change | | :--- | :--- | :--- | :--- | | Nurse and allied solutions | $868.8 | $741.5 | +17% | | Physician and leadership solutions | $246.5 | $279.5 | -12% | | Technology and workforce solutions | $95.5 | $46.6 | +105% | | **Total Revenue** | **$1,210.8** | **$1,067.6** | **+13%** | - Gross profit for the six-month period increased **12%** to **$399.6 million**, with a slight gross margin decline to **33.0%** from **33.4%** year-over-year[128](index=128&type=chunk) [Liquidity and Capital Resources](index=34&type=page&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flow, debt, and available credit, highlighting how acquisitions were funded and liquidity maintained - Net cash from operating activities nearly doubled to **$128.3 million** for H1 2020 from **$65.3 million** in H1 2019, largely due to the deferral of income tax and employer payroll tax payments under the CARES Act[134](index=134&type=chunk)[136](index=136&type=chunk) - The company used **$476.5 million** for acquisitions in H1 2020, funded primarily by drawing **$225.0 million** from its revolving credit facility and securing a new **$250.0 million** term loan[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - As of June 30, 2020, the company had **$282.6 million** of available credit under its Senior Credit Facility[134](index=134&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure stems from interest rate fluctuations on its variable-rate debt instruments, with foreign currency risk considered immaterial - The company's main market risk is interest rate risk associated with its variable interest debt, where a 100 basis point increase in rates would not have a material effect on the financial statements for the period[152](index=152&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation led by the CEO and CFO, the company concluded that its disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the second quarter - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2020[153](index=153&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[154](index=154&type=chunk) [PART II - OTHER INFORMATION](index=39&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers other required disclosures, including legal proceedings, risk factors, unregistered sales of equity securities, and general information [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings for the period - The company reported "None" for this item[156](index=156&type=chunk) [Item 1A. Risk Factors](index=39&type=page&id=Item%201A.%20Risk%20Factors) The company adds a significant risk factor related to the COVID-19 pandemic, highlighting potential negative impacts on demand, operations, and client payment abilities - A new risk factor was added concerning the adverse effects of a widespread public health crisis, specifically the COVID-19 pandemic[158](index=158&type=chunk) - Key risks from the pandemic include decreased demand for services due to suspension of elective healthcare, disruption to operations from employee unavailability, and impaired ability of clients to make payments due to their own financial distress[160](index=160&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a Board-authorized share repurchase program of up to $150.0 million, but no shares of common stock were repurchased under this program during the six months ended June 30, 2020 - The company did not repurchase any shares of its common stock during the six months ended June 30, 2020[166](index=166&type=chunk) [Other Items and Signatures](index=41&type=section&id=Other%20Items%20and%20Signatures) The report indicates no defaults upon senior securities, no mine safety disclosures, and no other material information to report for the period, concluding with a list of exhibits and signatures - Items 3 (Defaults Upon Senior Securities), 4 (Mine Safety Disclosures), and 5 (Other Information) were reported as "None" or "Not applicable"[166](index=166&type=chunk)[167](index=167&type=chunk) - Item 6 provides a list of exhibits filed with the report, including officer certifications and XBRL data files[169](index=169&type=chunk)

AMN Healthcare Services, Inc. (NYSE:AMN) Q1 2020 Earnings Conference Call May 11, 2020 5:00 PM ET Company Participants Randy Reece - Director of Investor Relations Susan Salka - Chief Executive Officer Brian Scott - Chief Financial Officer, Chief Accounting Officer & Treasurer Kelly Rakowski - Group President & Chief Operating Officer of Strategic Talent Solutions Landry Seedig - Group President & Chief Operating Officer, Nursing and Allied Solutions Conference Call Participants A.J. Rice - Credit Suisse To ...

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, 2020 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, 2019 ☐ 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 ...