AMN Healthcare Services(AMN) - 2022 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2022, was $1,138,586, representing a 29.6% increase from $877,800 in the same period of 2021[10] - Gross profit for the nine months ended September 30, 2022, was $1,341,431, up 53.2% from $875,276 in the prior year[10] - Net income for the three months ended September 30, 2022, was $92,445, compared to $74,023 for the same period in 2021, reflecting a 25% increase[10] - Net income for the nine months ended September 30, 2022, was $362,253, compared to $211,171 for the same period in 2021, representing a year-over-year increase of 71.5%[18] - Operating cash flow for the nine months ended September 30, 2022, was $538,405, significantly higher than $227,371 for the same period in 2021, indicating a strong operational performance[18] - Revenue for the nurse and allied solutions segment reached $828,317 million for the three months ended September 30, 2022, up from $627,049 million in the same period of 2021, representing a growth of approximately 32%[47] - The company reported a comprehensive income of $124,132 for the quarter ended June 30, 2022, compared to $92,226 for the same quarter in 2021, showing improved overall financial health[18] Assets and Liabilities - Total current assets decreased to $1,206,166 as of September 30, 2022, from $1,349,068 at December 31, 2021, a decline of 10.6%[7] - Total liabilities decreased to $1,885,628 as of September 30, 2022, from $1,969,879 at December 31, 2021, a reduction of 4.3%[7] - Total stockholders' equity as of September 30, 2022, was $1,132,633, a slight decrease from $1,162,027 at December 31, 2021[7] - Total assets decreased to $3,018,261 million as of September 30, 2022, from $3,131,906 million at December 31, 2021[7] - The total accounts payable and accrued expenses increased to $459,237 as of September 30, 2022, compared to $425,257 as of December 31, 2021[77] Operating Expenses - Operating expenses for the three months ended September 30, 2022, were $248,658, an increase of 24.2% from $200,036 in the same period of 2021[10] - Selling, general and administrative expenses were $215.4 million, representing 18.9% of revenue, an increase from 19.8% in the same period last year[104] - Unallocated corporate overhead increased to $34,635 million for the three months ended September 30, 2022, from $23,867 million in 2021, indicating a rise of about 45%[47] Cash Flow and Investments - Cash and cash equivalents as of September 30, 2022, were $155,723, down from $180,928 at December 31, 2021, a decrease of 13.9%[7] - The company experienced a net cash used in investing activities of $148,067 for the nine months ended September 30, 2022, compared to $79,017 in the prior year, reflecting increased investment in growth initiatives[18] - The company repurchased common stock amounting to $401,891 during the nine months ended September 30, 2022, reflecting a strategic move to enhance shareholder value[20] Acquisitions - The company completed the acquisition of Connetics Communications for an initial purchase price of $78,764 million, which included $70,764 million in cash and contingent consideration of up to $12,500 million[33] - The acquisition of Synzi Holdings and SnapMD was completed for $42,240 million, funded primarily through borrowings under a $400,000 million senior secured revolving credit facility[36] - The company incurred $69,801 in net cash paid for acquisitions during the nine months ended September 30, 2022, compared to $41,264 in the same period of 2021, indicating an aggressive growth strategy through acquisitions[21] Revenue Segmentation - Temporary staffing revenue reached $978,414, which includes $824,800 from travel nurse staffing, indicating a strong demand in this segment[50] - Technology-enabled services revenue was $123,096, contributing to the overall growth in the technology and workforce solutions segment[50] - The Locum tenens staffing segment generated $324,663 in revenue for the nine months ended September 30, 2022, showing significant growth compared to previous periods[53] Challenges and Risks - The company anticipates potential risks from the COVID-19 pandemic affecting its operations and financial condition, including labor market disruptions and payment delays from clients[127] - The company faces challenges in recruiting and retaining quality healthcare professionals, which could increase operating costs and impact profitability[128] - There is a risk of adverse effects from investigations and legal proceedings related to medical malpractice and regulatory compliance, which could lead to substantial liabilities[128] - The company has significant indebtedness, which may limit its ability to raise additional capital and react to economic changes[128] Miscellaneous - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[10] - The company has not changed its valuation techniques for fair value measurement during the nine months ended September 30, 2022, ensuring consistency in financial reporting[56] - The company is evaluating the impact of the new accounting standard ASU 2021-08 on its consolidated financial statements, effective after December 15, 2022[125]