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View All NewsAMN revenue up 19% on organic basis, reports strong demand
AMN Healthcare Services Inc. (NYSE: AHS), the largest US healthcare staffing firm, reported strong demand in its earnings announcement Thursday. The company announced second-quarter revenue rose 35.3% with the increase at 19% when measured on an organic basis excluding acquisitions.
Revenue was above the top end of guidance of $456 million.
| (US$ thousands) | Q2 2016 | Q2 2015 | % change |
| Revenue | $473,729 | $350,144 | 35.3% |
| Gross profit | $154,753 | $110,118 | 40.5% |
| Gross margin percentage | 32.7% | 31.4% | |
| Net income | $26,322 | $15,870 | 65.9% |
Quote
“In addition to the strong demand for staffing and placement services, we continue to increase the penetration of our workforce solutions, in particular MSP, VMS and workforce optimization services,” President and CEO Susan Salka said.
Revenue by segment
| (US$ thousands) | Q2 2016 | Q2 2015 | % change |
| Nurse and allied healthcare staffing | $292,663 | $226,494 | 29.2% |
| Locum tenens staffing | $109,129 | $97,388 | 12.1% |
| Other workforce solutions | $71,937 | $26,262 | 173.9% |
Revenue increased in all segments. Second-quarter revenue in AMN’s “other workforce solutions” segment rose 173.9%, but was up 32% on an organic basis. Other workforce solutions includes: interim leadership staffing and executive search, physician permanent placement, recruitment process outsourcing, vendor management system business, workforce optimization services, medical coding and the company’s education business.
Guidance
AMN forecast third-quarter revenue of between $466 million and $472 million, a year-over-year increase of 22.5% at the midpoint of the range.
Share price and market cap
Shares in AMN fell 3.7% to $40.39 in early afternoon trading. The company had a market cap of $1.94 billion, according to Yahoo.