Core Viewpoint - AMN Healthcare's stock price dropped approximately 30% following a Q3 report that, despite exceeding sales and earnings expectations, revealed significant margin contraction, reflecting challenges in the hospital staffing industry post-COVID-19 pandemic [1][3]. Financial Performance - AMN Healthcare reported Q3 sales of $687.5 million and earnings of $0.61 per share, surpassing consensus estimates of $670 million and $0.57 respectively [1]. - The company's revenue increased from $2.2 billion in 2019 to $5.2 billion in 2022, driven by labor shortages and heightened demand during the pandemic, but fell to $3.8 billion in 2023 and further to $3.1 billion over the last twelve months [2]. - Q3 sales reflected a 19% year-over-year decline, with the nurse and allied solutions segment experiencing a 30% drop in sales [2]. - Adjusted EBITDA margin decreased by 500 basis points year-over-year to 10.7% in Q3, with adjusted earnings per share dropping from $1.97 in the prior-year quarter to $0.61 [3]. Future Outlook - The company anticipates a 15% year-over-year decline in Q4 revenues and an EBITDA margin of approximately 9.5%, indicating a 300 basis point year-over-year decline [3]. - AMN stock has decreased over 60% year-to-date, contrasting with a 25% gain for the S&P 500 index, highlighting its volatility compared to broader market performance [4]. Valuation Perspective - AMN stock is currently trading at 0.3 times trailing revenues, significantly below its average price-to-sales ratio of 1.0 over the past five years, suggesting it may be undervalued [5]. - However, the decline in valuation multiple is seen as justified due to the substantial drop in sales, with expectations of continued weak demand in hospital staffing likely to pressure margins [5].

Core Viewpoint - AMN Healthcare has committed to science-based emissions reduction targets, aiming for net-zero emissions by 2050, reflecting its dedication to sustainability and climate action [1][3][6]. Group 1: Emissions Reduction Goals - The company aims to reduce absolute scope 1, 2, and 3 greenhouse gas emissions by 42.8% by 2030, using 2022 as the base year [3]. - A long-term goal includes a 90% reduction in emissions by 2050, with all residual emissions neutralized to achieve net-zero emissions across its value chain by the same year [3]. Group 2: Initiatives for Sustainability - AMN Healthcare has implemented an internal carbon pricing strategy to purchase Renewable Energy Credits (RECs) to offset electricity usage and reduce Scope 1 emissions [4]. - The company is developing a 1.5°C aligned Climate Transition Plan and an internal Environmental Policy to guide its sustainability efforts [4]. - Engagement with high-impact suppliers is part of the strategy, incorporating environmental requirements into its Vendor Code of Conduct [4]. Group 3: Alignment with Global Standards - The Science-Based Targets initiative, which includes organizations like the Carbon Disclosure Project and the United Nations Global Compact, guides AMN Healthcare's emissions reduction strategies [5]. - The company's commitments align with the global scientific consensus on climate action, reflecting its leadership in sustainability [6]. Group 4: Transparency and Reporting - AMN Healthcare emphasizes transparency and accountability, committing to regular progress reporting through annual Sustainability & Social Impact Reports [6].

Financial Data and Key Metrics - Q3 2024 revenue was $688 million, above the high end of guidance and down 19% YoY [6][18] - Adjusted EBITDA was $74 million, above consensus estimates but down 45% YoY [6][29] - Net income was $7 million, down 87% YoY, with GAAP diluted EPS of $0.18 and adjusted EPS of $0.61 [30] - Days sales outstanding (DSO) improved to 60 days, a 10-day reduction since the start of 2024 [31] - Operating cash flow was $67 million, with capital expenditures of $19 million [31] Business Segment Performance Nurse and Allied Solutions - Revenue was $399 million, down 30% YoY and 10% sequentially, driven by lower volume and rates in travel nurse and allied staffing [15][21] - Travel nurse revenue was $244 million, down 37% YoY, while allied revenue was $141 million, down 16% YoY [22] - Segment operating margin was 8.8%, down 570 basis points YoY, impacted by lower gross margins and deleveraging of SG&A expenses [23] Physician and Leadership Solutions - Revenue was $181 million, up 13% YoY due to the MSDR acquisition but down 3% sequentially [16][24] - Locum tenens revenue was $142 million, up 26% YoY, while interim leadership and search revenues declined [25] - Segment operating margin was 10%, down 350 basis points YoY, primarily due to lower gross margins [26] Technology and Workforce Solutions - Revenue was $108 million, down 11% YoY, with language services up 13% YoY but VMS revenue down 34% YoY [17][27] - Segment gross margin was 57.9%, down from 65% YoY, driven by a revenue mix shift away from higher-margin VMS and outsourced solutions [28] Market and Industry Trends - Demand for travel nurse staffing has increased 60% from the April low but remains 35% below 2019 levels [8] - Unfilled orders for nurse and allied staffing increased from 9% last quarter to 14% in Q3, indicating pricing challenges [8][9] - Some clients are raising bill rates for hard-to-fill specialties, signaling a potential normalization in the staffing market [39] - The industry is experiencing margin pressure due to competition and wage inflation, but conditions are expected to improve in 2025 [10][38] Strategic Direction and Competitive Landscape - The company is focusing on technology-driven solutions, such as the WorkWise platform, to enhance workforce planning and client engagement [13][14] - AMN has achieved a net positive MSP win-loss score for 2024, reflecting improved competitive positioning [13] - The company is leveraging its broad solution set to help clients build sustainable workforce strategies, with top clients using an average of 10 solutions [14][92] Management Commentary on Operating Environment and Outlook - Management noted signs of market stabilization, with increasing demand for travel nurse staffing and stable bill rates [7][39] - The company expects labor scarcity to reemerge as a key industry driver in 2025, with potential margin improvements as market conditions normalize [10][38] - Q4 2024 revenue guidance is $685 million to $705 million, with adjusted EBITDA margin expected to be 9.2% to 9.7% [33][34] Other Important Information - The company paid down $60 million of revolver debt in Q3, bringing the year-to-date paydown to $175 million [32] - AMN increased its maximum leverage covenant on the revolving line of credit from 4x to 4.5x through the end of 2025 [32] - The international nurse business, impacted by visa retrogression, is expected to taper off in Q2 2025 and resume growth by the end of 2025 [89][90] Q&A Session Summary Margin Outlook and SG&A - Management discussed potential gross margin improvements through favorable business mix and bill-pay spread recovery [42][43] - SG&A expenses are expected to remain stable, with potential leverage as higher-margin businesses grow [44] Language Services Growth - Language services revenue grew 13% YoY in Q3, with strong client demand and high gross margins [46] - The business is expected to grow at double-digit rates with gross margins above 40% [47] Travel Nurse Demand and Pricing - Travel nurse demand has improved since April but remains below pre-pandemic levels [80] - Some clients are raising bill rates for hard-to-fill specialties, indicating potential market normalization [39][52] VMS and MSP Trends - VMS revenue declined in Q3 and is expected to decline further in Q4, reflecting broader market trends [54] - AMN has achieved a net win position in MSPs for 2024, driven by improved competitive positioning [54][78] International Nurse Business - The international nurse business, impacted by visa retrogression, is expected to taper off in Q2 2025 and resume growth by the end of 2025 [89][90] - A $100 million increase in international nurse revenue would improve consolidated adjusted EBITDA margin by 100 basis points [58] Labor Disruption and Seasonal Trends - Q4 guidance includes $45 million in non-recurring revenue from labor disruptions, which is not expected to recur in Q1 [36][65] - Seasonal orders, particularly winter orders, are expected to support Q1 2025 performance [86] Industry Consolidation and Competitive Landscape - Management expects industry consolidation driven by client demand for tech-enabled solutions and market fragmentation [84] - AMN is focused on acquiring capabilities that enhance its competitive positioning or scale opportunities [84]

Core Insights - AMN Healthcare Services, Inc. reported adjusted earnings per share (EPS) of 61 cents for Q3 2024, a decline of 69% year over year, but exceeded the Zacks Consensus Estimate by 5.2% [1] - The company's revenues for the third quarter were $687.5 million, down 19.4% year over year, yet also surpassed the Zacks Consensus Estimate by 2.6% [2] Revenue Breakdown - The Nurse and Allied Solutions segment generated revenues of $399.4 million, a decrease of 30.4% year over year, with travel nurse staffing revenues down 37% [4] - The Physician and Leadership Solutions segment's revenues were $180.6 million, reflecting a 13.2% increase year over year, driven by a 26% rise in locum tenens revenues [5] - The Technology and Workforce Solutions segment reported revenues of $107.5 million, down 10.7% year over year, with language interpretation services revenues at $75 million, up 13% [6] Margin Analysis - AMN Healthcare's gross profit fell 26.4% year over year to $213.1 million, with a gross margin contraction of 293 basis points to 30.9% [7] - Adjusted operating profit was $63.4 million, down 49.7% from the prior year, with an adjusted operating margin of 9.2%, a decline of 556 basis points [8] Financial Position - At the end of Q3 2024, AMN Healthcare had cash and cash equivalents of $30.6 million, down from $48 million at the end of Q2 2024, and total debt decreased to $1.135 billion from $1.195 billion [9] Future Guidance - For Q4 2024, AMN expects revenues between $685 million and $705 million, indicating a decline of 14-16% compared to the previous year [10] - The company anticipates a 21-24% revenue decline in the Nurse and Allied Solutions segment and a 9% decline in the Technology and Workforce Solutions segment, while projecting a 3% increase in the Physician and Leadership Solutions segment [11] Overall Performance - The overall performance of AMN Healthcare in Q3 2024 was disappointing, with significant declines in most segment revenues and margins [12] - Despite the challenges, the company noted progress in its market growth strategy and improvements in its sales pipeline, indicating potential for future recovery [14]

Core Insights - AMN Healthcare Services reported a revenue of $687.51 million for the quarter ended September 2024, reflecting a year-over-year decline of 19.4% [1] - The earnings per share (EPS) for the quarter was $0.61, down from $1.97 in the same quarter last year, but exceeded the consensus estimate of $0.58 by 5.17% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $670.08 million by 2.60% [1] Financial Performance Metrics - Physician and leadership solutions reported Days Filled of 55.32 million, slightly above the estimated 55.28 million [3] - Revenue per day filled for Physician and leadership solutions was $2.56 million, exceeding the average estimate of $2.48 million [3] - Revenue from Physician and leadership solutions was $180.61 million, surpassing the estimated $179.15 million, marking a year-over-year increase of 13.2% [3] - Revenue from Nurse and allied solutions was $399.37 million, which was above the estimated $383.11 million but represented a year-over-year decline of 30.4% [3] - Revenue from Technology and workforce solutions was $107.54 million, slightly below the estimated $107.67 million, with a year-over-year decline of 10.8% [3] - Segment operating income for Nurse and allied solutions was $35.11 million, below the average estimate of $39.43 million [3] - Segment operating income for Technology and workforce solutions was $41.95 million, slightly above the average estimate of $41.69 million [3] - Segment operating income for Physician and leadership solutions was $18.13 million, below the estimated $21.66 million [3] Stock Performance - AMN Healthcare shares have returned +5.2% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

AMN Healthcare Services (AMN) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $1.97 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.17%. A quarter ago, it was expected that this health care staffing company would post earnings of $0.75 per share when it actually produced earnings of $0.98, delivering a surprise of 30.67%.Over the last ...

Financial Performance - Revenue for Q3 2024 was $687.5 million, a decrease of 19.5% compared to $853.5 million in Q3 2023[6] - Gross profit for Q3 2024 was $213.1 million, down 26.4% from $289.5 million in Q3 2023[6] - Net income for Q3 2024 was $7.0 million, a significant decline from $53.2 million in Q3 2023, representing a decrease of 86.9%[6] - Operating expenses for Q3 2024 were $190.8 million, a reduction of 6.0% compared to $202.6 million in Q3 2023[6] - The company reported a basic net income per share of $0.18 for Q3 2024, compared to $1.39 for Q3 2023[7] - Net income for the nine months ended September 30, 2024, was $40,554,000, compared to $198,190,000 for the same period in 2023, indicating a significant decrease[11] - Gross profit decreased by 29% to $700.4 million for the nine months ended September 30, 2024, with gross margins of 31.1% compared to 33.3% in the same period in 2023[104] - SG&A expenses were $473.6 million for the nine months ended September 30, 2024, representing 21.1% of revenue, down from $570.8 million (19.2% of revenue) in the same period in 2023[105] Assets and Liabilities - Total current assets decreased to $612.3 million as of September 30, 2024, down 27.2% from $841.7 million at December 31, 2023[4] - Total liabilities decreased to $1.8 billion as of September 30, 2024, down 15.0% from $2.1 billion at December 31, 2023[4] - Total assets decreased to $2.7 billion as of September 30, 2024, down 8.8% from $2.9 billion at December 31, 2023[4] - The company’s retained earnings increased to $1.5 billion as of September 30, 2024, up from $1.4 billion at December 31, 2023[4] - Total stockholders' equity increased to $890.7 million as of September 30, 2024, up from $831.3 million at December 31, 2023[4] Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2024, was $247,604,000, down from $413,295,000 in the same period in 2023[11] - Net cash used in investing activities for the nine months ended September 30, 2024, was $65,735,000, down from $88,762,000 in 2023[11] - Net cash used in financing activities during the nine months ended September 30, 2024, was $179.6 million, significantly lower than $352.8 million in the same period in 2023[115] - Cash and cash equivalents were $30.6 million as of September 30, 2024, down from $32.9 million at December 31, 2023[4] - Total cash, cash equivalents, and restricted cash amounted to $110,592,000, an increase from $108,273,000 at the beginning of the period[22] Revenue Segmentation - Revenue for the nurse and allied solutions segment was $399,368 for the three months ended September 30, 2024, down from $573,426 in the same period of 2023, indicating a decline of approximately 30.4%[41] - The nurse and allied solutions segment accounted for 60% of total consolidated revenue for the nine months ended September 30, 2024, compared to 70% for the same period in 2023[74] - Physician and leadership solutions segment revenue comprised 25% of total consolidated revenue for the nine months ended September 30, 2024, compared to 17% for the same period in 2023[75] - Technology and workforce solutions segment revenue comprised 15% of total consolidated revenue for the nine months ended September 30, 2024, compared to 13% for the same period in 2023[76] Acquisitions and Investments - The company completed the acquisition of MSI Systems Corp. and DrWanted.com LLC for an initial purchase price of $292,818, funded through borrowings under a $750,000 secured revolving credit facility[26] - The fair value of identified intangible assets from the MSDR acquisition was $92,000, with a weighted average useful life of approximately seven years[27] - Goodwill recognized for the MSDR acquisition amounted to $181,036, of which $92,208 is deductible for tax purposes[27] Market Conditions and Risks - The company faces various risks including economic downturns, labor market conditions, and potential disruptions from pandemics that could impact its financial condition and cash flows[123][124] - Demand in the travel nurse business has significantly declined and remains below pre-pandemic levels, despite an increase in open orders[79] - Allied staffing business demand is above pre-pandemic levels, showing a slight quarter-over-quarter increase and significant year-over-year growth[79] Other Financial Metrics - Interest expense increased to $14.4 million for Q3 2024 from $11.5 million in Q3 2023, primarily due to a higher average debt outstanding balance[97] - Income tax expense decreased to $0.8 million for Q3 2024 from $22.2 million in Q3 2023, with effective tax rates of 10% and 29% respectively[98] - The company recorded an accrual of $62,000 related to the settlement of the Clarke Matter, which was finalized in the second quarter of 2024[68] - The company has recognized cumulative upward adjustments of $14,033 and cumulative downward adjustments (including impairments) of $10,130 for its equity investment as of September 30, 2024[60]

EXHIBIT 99.1 AMN HEALTHCARE ANNOUNCES THIRD QUARTER 2024 RESULTS Quarterly revenue of $688 million; GAAP EPS of $0.18 and adjusted EPS of $0.61 DALLAS — AMN Healthcare Services, Inc. (NYSE: AMN), the leader and innovator in total talent solutions for healthcare organizations across the United States, today announced its third quarter 2024 financial results. Financial highlights are as follows: Dollars in millions, except per share amounts. | --- | --- | --- | --- | --- | |---------------------------|------- ...

Quarterly revenue of $688 million; GAAP EPS of $0.18 and adjusted EPS of $0.61 DALLAS, Nov. 07, 2024 (GLOBE NEWSWIRE) -- AMN Healthcare Services, Inc. (NYSE: AMN), the leader and innovator in total talent solutions for healthcare organizations across the United States, today announced its third quarter 2024 financial results. Financial highlights are as follows: Dollars in millions, except per share amounts.  Q3 2024% Change Q3 2023YTD September 30, 2024% Change YTD September 30, 2023Revenue$687.5(19%)$2,24 ...

AMN Healthcare Services (AMN) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...