Core Insights - AMN Healthcare Language Services has launched Strategic Partnership Solutions (SPS) to enhance language access programs in healthcare organizations [1][2] - SPS aims to transform language services from a cost center to a strategic component of patient care, potentially reducing costs associated with longer hospital stays and missed appointments [2] - The initiative addresses challenges such as limited resources and compliance issues while improving patient outcomes through enhanced language access [2] Service Offerings - SPS provides a comprehensive range of language services, including video remote interpreting, over-the-phone interpreting, in-person interpreting, and translation [1] - The service includes tailored solutions based on a thorough analysis of each organization's language access program [1] Industry Impact - The launch of SPS is viewed as a significant milestone for the healthcare industry, positioning language services as essential for improving patient care [2] - Pilot sites like Yuma Regional Medical Center have reported positive outcomes, including faster connections to interpreters and improved quality of interpretation [3]

The healthcare industry has been a critical part of the economy for a long time. According to a McKinsey & Company report, the healthcare industry is expected to grow at 7% from 2022 to 2027. Many healthcare companies heavily rely on trials, which need to be FDA approved in order to be put on the market. This makes it extremely hard to predict a company’s future performance. Successful trials could bring in potentially billions of dollars in revenue. However, a failed trial will likely result in stock-price ...

Core Viewpoint - AMN Healthcare Services, Inc. reported a significant decline in both adjusted earnings per share (EPS) and revenues for the second quarter of 2024, although adjusted EPS exceeded consensus estimates. The company anticipates continued revenue declines in the upcoming quarter, raising concerns about its financial performance and market position [1][2][7][9]. Revenue Performance - AMN Healthcare's revenues for Q2 2024 were $740.7 million, reflecting a 25.3% decrease year over year, but slightly above the Zacks Consensus Estimate by 0.3% [2]. - The Nurse and Allied Solutions segment generated revenues of $442.4 million, down 35.8% year over year, with travel nurse staffing revenues declining by 42% [3]. - The Physician and Leadership Solutions segment saw revenues of $186.1 million, an increase of 5.6% year over year, driven by a 17% rise in locum tenens revenues [4]. - The Technology and Workforce Solutions segment reported revenues of $112.2 million, down 10.9% year over year, with language interpretation services growing by 18% [4]. Margin Analysis - Gross profit for AMN Healthcare fell by 30.4% to $229.8 million, with gross margin contracting by 229 basis points to 31% [5]. - Adjusted operating profit decreased by 37.1% to $80.8 million, and the adjusted operating margin contracted by 206 basis points to 10.9% [5]. Financial Position - At the end of Q2 2024, AMN Healthcare had cash and cash equivalents of $48 million, down from $50.6 million at the end of Q1 2024. Total debt decreased to $1.195 billion from $1.275 billion [6]. - Cumulative net cash provided by operating activities was $99.5 million, a decline from $197.7 million a year ago [6]. Guidance - For Q3 2024, AMN Healthcare expects revenues to be in the range of $660 million to $680 million, indicating a decline of 20-23% compared to the previous year [7]. - The company anticipates a 32-34% decline in revenues for the Nurse and Allied Solutions segment and a 10-12% decline for the Technology and Workforce Solutions segment, while projecting a 12-14% increase for the Physician and Leadership Solutions segment [8]. Market Outlook - Despite disappointing overall performance, there are positive signs in the Physician and Leadership Solutions segment and improvements in the travel nurse market, which may provide some optimism for future growth [9].

Core Insights - AMN Healthcare Services reported revenue of $740.69 million for Q2 2024, a year-over-year decline of 25.3% and an EPS of $0.98 compared to $2.38 a year ago, with a revenue surprise of +0.33% over estimates and an EPS surprise of +30.67% [1] Revenue Performance - Physician and leadership solutions revenue was $186.07 million, below the average estimate of $193.97 million, but showed a year-over-year increase of +5.6% [4] - Nurse and allied solutions revenue was $442.40 million, exceeding the average estimate of $433.30 million, but reflecting a year-over-year decline of -35.8% [5] - Technology and workforce solutions revenue was $112.22 million, slightly above the average estimate of $110.97 million, with a year-over-year decrease of -11% [6] Segment Operating Income - Nurse and allied solutions segment operating income was $46.21 million, slightly below the average estimate of $46.66 million [7] - Technology and workforce solutions segment operating income was $47.26 million, exceeding the average estimate of $43.51 million [7] - Physician and leadership solutions segment operating income was $21.66 million, below the average estimate of $24.42 million [7] Stock Performance - AMN Healthcare shares have returned +27.7% over the past month, contrasting with the Zacks S&P 500 composite's -6.5% change, but the stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [8]

Company Performance - AMN Healthcare Services reported quarterly earnings of $0.98 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, but down from $2.38 per share a year ago, indicating a 58.8% year-over-year decline [1] - The company achieved a revenue of $740.69 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.33%, but down from $991.3 million in the same quarter last year, reflecting a 25.3% decrease [1] - Over the last four quarters, AMN Healthcare has consistently surpassed consensus EPS and revenue estimates [1] Market Performance - AMN Healthcare shares have declined approximately 19.8% since the beginning of the year, contrasting with the S&P 500's gain of 9% [2] - The current Zacks Rank for AMN Healthcare is 4 (Sell), indicating expectations of underperformance in the near future [4] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $700.02 million, and for the current fiscal year, it is $3.15 on revenues of $2.97 billion [4] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [4] Industry Context - The Medical Services industry, to which AMN Healthcare belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [5] - Sharecare, Inc., another company in the same industry, is expected to report a quarterly loss of $0.03 per share, with revenues projected to decline by 18.3% from the previous year [5]

PART I - FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q2 and H1 2024, including key financial statements and notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities decreased, while stockholders' equity increased as of June 30, 2024, compared to year-end 2023 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | $704,757 | $841,685 | | **Total assets** | $2,771,327 | $2,924,394 | | **Total current liabilities** | $573,890 | $656,121 | | **Total liabilities** | $1,894,468 | $2,093,138 | | **Total stockholders' equity** | $876,859 | $831,256 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The company experienced a significant year-over-year decline in revenue and net income for both Q2 and the first half of 2024 Statement of Comprehensive Income Summary (in thousands, except per share amounts) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $740,685 | $991,299 | $1,561,563 | $2,117,522 | | **Gross Profit** | $229,827 | $330,281 | $487,333 | $699,127 | | **Income from Operations** | $37,682 | $91,663 | $77,627 | $217,333 | | **Net Income** | $16,237 | $60,906 | $33,565 | $145,016 | | **Diluted EPS** | $0.42 | $1.55 | $0.88 | $3.58 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased in H1 2024 due to lower net income, while cash used in financing fell without share repurchases Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $180,901 | $241,101 | | **Net cash used in investing activities** | ($43,731) | ($54,859) | | **Net cash used in financing activities** | ($119,081) | ($247,744) | | **Net increase (decrease) in cash** | $18,089 | ($61,502) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides critical context on accounting policies, acquisitions, segment revenue, and a significant legal settlement - On November 30, 2023, the Company acquired MSDR (MSI Systems Corp and DrWantedcom LLC), two healthcare staffing companies specializing in locum tenens, for an initial cash price of **$292.8 million**[37](index=37&type=chunk) Revenue by Segment for Q2 2024 vs Q2 2023 (in thousands) | Segment | Q2 2024 Revenue | Q2 2023 Revenue | % Change | | :--- | :--- | :--- | :--- | | Nurse and allied solutions | $442,399 | $689,015 | -35.8% | | Physician and leadership solutions | $186,065 | $176,229 | +5.6% | | Technology and workforce solutions | $112,221 | $126,055 | -11.0% | | **Total Revenue** | **$740,685** | **$991,299** | **-25.3%** | - The company reached a settlement in the Clarke Matter, a wage and hour lawsuit, and recorded an accrual of **$62.0 million**[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant business downturn, segment performance, operating trends, and the company's liquidity position [Recent Trends](index=22&type=section&id=Recent%20Trends) Demand for travel nurse business has fallen below pre-pandemic levels, while allied staffing and locum tenens also see declines - Demand in the travel nurse business has **declined significantly to below pre-pandemic levels** due to healthcare organizations' focus on hiring permanent staff and cost containment[88](index=88&type=chunk) - In Q2, **average travelers on assignment were down sequentially** due to seasonality and visa retrogression impacting international nurse staffing[89](index=89&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q2 2024 revenue decreased 25% year-over-year, driven by a 36% drop in the nurse and allied segment and contracting gross margins Q2 2024 vs. Q2 2023 Revenue Change by Segment | Segment | Q2 2024 Revenue | Change from Q2 2023 | Key Drivers | | :--- | :--- | :--- | :--- | | Nurse and allied solutions | $442.4M | -36% | 24% decrease in travelers on assignment, 12% decrease in average bill rate | | Physician and leadership solutions | $186.1M | +6% | 17% growth in locum tenens (including MSDR acquisition), offset by declines in interim leadership and permanent placement | | Technology and workforce solutions | $112.2M | -11% | 41% decline in VMS business, offset by 18% growth in language services | - Consolidated gross margin for Q2 2024 **fell to 31.0% from 33.3%** in Q2 2023, driven by a less favorable sales mix and compression in clinician pay packages[98](index=98&type=chunk) - SG&A expenses **decreased to $149.0 million** in Q2 2024 from $201.8 million in Q2 2023, primarily due to lower employee compensation and benefits ($24.6M) and a decrease in professional and legal services ($20.1M)[99](index=99&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a solid liquidity position with sufficient cash from operations and available credit for near-term needs - As of June 30, 2024, the company had **$345.0 million drawn** on its $750.0 million secured revolving credit facility, with **$384.6 million of available credit**[114](index=114&type=chunk) - Net cash provided by operating activities **decreased to $180.9 million** for the first six months of 2024, compared to $241.1 million for the same period in 2023, mainly due to a decrease in net income[116](index=116&type=chunk) - Days Sales Outstanding (DSO) was **63 days** at June 30, 2024, an improvement from 70 days at December 31, 2023, but higher than 53 days at June 30, 2023[116](index=116&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&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 exposure is interest rate risk from variable interest debt instruments, and a 100 basis point change in interest rates is **not expected to have a material effect** on the financial statements[126](index=126&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 as of June 30, 2024, with no material changes in internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective as of June 30, 2024**[128](index=128&type=chunk) - **No changes in internal control over financial reporting occurred** during the quarter ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[129](index=129&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 9 for details on legal proceedings, including the settlement of the significant Clarke Matter wage and hour lawsuit - Information regarding legal proceedings is detailed in **Note (9), "Commitments and Contingencies,"** of the financial statements[131](index=131&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2023 Annual Report on Form 10-K - There have been **no material changes** to the risk factors disclosed in the company's 2023 Annual Report[132](index=132&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's stock repurchase program has $226.7 million remaining, with no shares repurchased in the first half of 2024 - The company's share repurchase program has a total authorization of $1,350.0 million, with **$226.7 million remaining available** as of June 30, 2024[133](index=133&type=chunk) - **No shares of common stock were repurchased** during the six months ended June 30, 2024[134](index=134&type=chunk)

Core Insights - AMN Healthcare Services reported a second quarter revenue of $741 million, reflecting a 25% decrease year-over-year and a 10% decrease sequentially [2][5] - The company experienced a significant decline in net income, reporting $16 million, or $0.42 per diluted share, compared to $61 million, or $1.55 per diluted share in the same quarter of 2023 [5][26] - Adjusted diluted EPS was $0.98, down from $2.38 year-over-year, indicating a 59% decrease [2][25] Financial Performance - Revenue for the Nurse and Allied Solutions segment was $442 million, a 36% decrease year-over-year and a 15% decrease sequentially [5][26] - The Physician and Leadership Solutions segment reported revenue of $186 million, up 6% year-over-year, while the Technology and Workforce Solutions segment revenue was $112 million, down 11% year-over-year [6][8] - Consolidated gross margin was 31.0%, a decrease of 230 basis points year-over-year, primarily due to lower-margin locum tenens revenue [8][9] Operational Highlights - Cash flow from operations was strong at $100 million, allowing the company to reduce debt by $80 million, bringing year-to-date repayment to $115 million [3][10] - The rollout of the ShiftWise Flex platform surpassed 50% of vendor-neutral clients' spend, indicating successful implementation and client migration [3][4] - The company reported a net leverage ratio of 2.6:1 at the end of the quarter [10][27] Market Outlook - The company anticipates third quarter revenue to be 20-23% lower than the prior year, with Nurse and Allied Solutions segment revenue expected to decline by 32-34% year-over-year [10][11] - Positive signs of improvement are noted in the travel nurse market, with expectations for long-term growth potential [4][10] - The company continues to diversify its solutions, focusing on higher-margin revenue sources beyond staffing [4][8]

In its upcoming report, AMN Healthcare Services (AMN) is predicted by Wall Street analysts to post quarterly earnings of $0.75 per share, reflecting a decline of 68.5% compared to the same period last year. Revenues are forecasted to be $738.23 million, representing a year-over-year decrease of 25.5%.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Befo ...

DALLAS, July 31, 2024 (GLOBE NEWSWIRE) -- AMN Healthcare (NYSE:AMN) is taking steps to further strengthen its market-leading approach to total talent solutions in healthcare by creating a new Executive Advisory Board, which will be led by Mike Butler, former President of Providence.   Consisting of accomplished leaders from various healthcare organizations, the Executive Advisory Board will serve as trusted advisors, leveraging their extensive industry expertise to unlock new market opportunities. Their wo ...

DALLAS, July 31, 2024 (GLOBE NEWSWIRE) -- AMN Healthcare (NYSE: AMN) is taking steps to further strengthen its market-leading approach to total talent solutions in healthcare by creating a new Executive Advisory Board, which will be led by Mike Butler, former President of Providence.   Consisting of accomplished leaders from various healthcare organizations, the Executive Advisory Board will serve as trusted advisors, leveraging their extensive industry expertise to unlock new market opportunities. Their w ...