AMN Healthcare Announces Second Quarter 2024 Results

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]