AMN Healthcare Services(US:AMN)2024-11-07 23:09Financial 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]