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View All NewsAMN revenue jumps 43%, organic increase is 28%
AMN Healthcare Services Inc. (NYSE: AHS), the largest US healthcare staffing firm, reported first-quarter revenue rose 42.9% to $468.0 million, exceeding the high end of company’s guidance. Organic growth of 28% primarily drove the increase, according to the company.
In January, AMN completed its $160 million acquisition of healthcare search firm B.E. Smith. Earnings also benefited from the January 2015 purchase of Onward Healthcare, Locum Leaders and Medefis from OGH LLC for $82.5 million, as well as MillicanSolutions and The First String Healthcare, both acquired in the second half of 2015.
| (US$ thousands) | Q1 2016 | Q1 2015 | % change |
| Revenue | $468,002 | $327,510 | 42.9% |
| Gross profit | $151,898 | $101,432 | 49.8% |
| Gross margin percentage | 32.5% | 31.0% | |
| Net income | $25,869 | $12,209 | 111.9% |
First-quarter gross margin also improved at the San Diego-based company, driven primarily by organic and acquired growth in the higher-margin workforce solutions businesses, along with a gross margin increase in the locum tenens solutions segment.
Quote
“The AMN Healthcare team continues to perform exceptionally well in an environment where workforce management has become a critical issue in healthcare,” said President and CEO Susa Salka. “Our unparalleled recruitment capabilities and broad suite of workforce solutions are helping healthcare organizations to approach labor challenges in new and innovative ways.”
Salka continued, “Through our strong organic growth, coupled with contributions from our recent acquisitions, AMN delivered record revenue and earnings. With our continued MSP wins, a healthy pipeline for new contracts and a favorable demand environment, we are optimistic that 2016 will be another year of solid growth.”
Revenue by segment
| (US$ thousands) | Q1 2016 | Q1 2015 | % change |
| Nurse and allied healthcare staffing | $297,724 | $216,992 | 37.2% |
| Locum tenens staffing | $102,738 | $86,692 | 18.5% |
| Other workforce solutions | $67,540 | $23,826 | 183.5% |
Effective Jan. 1, AMN modified and renamed its three reportable segments and also placed several business lines from its nurse and allied healthcare staffing segment into a different segment. The nurse and allied solutions segment now includes travel nurse, allied and local staffing; the locum tenens solutions segment includes locum tenens staffing; and the “other workforce solutions” segment includes healthcare interim leadership staffing and executive search services, physician permanent placement services, recruitment process outsourcing, vendor management systems, workforce optimization services, and education.
Guidance
AMN forecasts second-quarter revenue of $450 million to $456 million. Gross margin is forecast to be approximately 32.5%.
Share price and market cap
Shares in AMN rose 3.46% in early afternoon trading to $36.51. The company had a market cap of $1.75 billion, according to Yahoo!