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View All NewsAMN revenue up 4% in fourth quarter, but locum tenens revenue falls
AMN Healthcare Services (NYSE: AMN) reported revenue rose 3.8% in the fourth quarter, with growth coming in its nurse and allied business as well as its “other workforce solutions” business.
The San Diego-based company, which Staffing Industry Analysts ranks as the largest US healthcare staffing firm, stated that revenue was below expectations due to lower placements in its locum tenens segment, where revenue fell 24.3%.
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Revenue | $528,635 | $509,076 | 3.8% |
| Gross profit | $172,456 | $162,092 | 6.4% |
| Gross margin percentage | 32.6% | 31.8% | |
| Net income | $35,613 | $41,167 | -13.5% |
Revenue rose 2% year over year in AMN’s travel nurse operations, with higher volume offset by a lower average bill rate. Revenue in its allied healthcare staffing business rose 8% in the fourth quarter on higher volume.
“Other workforce solutions” revenue — which includes VMS, RPO and physician permanent placement — rose 47.6%, driven by its three acquisitions in April 2018. Organic growth was 1%.
<Header>Revenue by segment
| (US$ thousands) | Q4 2018 | Q4 2017 | % change |
| Nurse and allied solutions | $329,317 | $321,360 | 2.5% |
| Locum tenens solutions | $81,850 | $108,142 | -24.3% |
| Other workforce solutions | $117,468 | $79,574 | 47.6% |
AMN also announced that it acquired Silversheet in January. Silversheet is a cloud-based provider of credentialilng and privileging software and services.
Quote
“In the near term, restoring the performance of our Locum Tenens segment is our top priority,” CEO Susan Salka said. “This business has been challenged by the business model and system transition last year. But with continuous improvements, aggressive hiring of new sales talent, and the resilience and fortitude of the locums team, we do expect to gain traction as we move through the year.”
Full-year results
| (US$ thousands) | 2018 | 2017 | % change |
| Revenue | $2,136,074 | $1,988,454 | 7.4% |
| Gross profit | $696,383 | $644,419 | 8.1% |
| Gross margin percentage | 32.6% | 32.4% | |
| Net income | $141,741 | $132,558 | 6.9% |
Guidance
AMN reported first-quarter revenue should be flat to up 1% year over year; however, it is projected to be down 6% on an organic basis primarily because of lower revenue in the locum tenens business. Nurse and allied revenue is expected to be down by 1% to 2% with growth in allied offset by a slight decline in nurse staffing.
Share price and market cap
AMN shares were down 13.81% to $56.03 at 10:56 a.m. Pacific time; the company had a market cap of $3.05 billion, according to FT.com.