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AMN revenue up 11%; locums business back to growth

May 03 2013

AMN Healthcare Services Inc. (NYSE: AHS) reported first-quarter revenue rose 11.4 percent to $252.1 million, beating analysts’ estimates and above its own guidance. The healthcare staffing firm’s locum tenens business returned to year-over-year growth after a decline in the fourth quarter. Gross margin also improved.

President and CEO Susan Salka also said in a conference call with analysts the company has a pipeline of possible MSP opportunities and it expects MSP penetration will increase among all its staffing segments. She said 30 percent of the company’s first-quarter revenue came through MSP contracts.

Viewing AMN revenue by business segment:

  • First-quarter locum tenens revenue rose 3.1 percent year over year to $65.5 million. Locums revenue had fallen 2.8 percent on a year-over-year basis in the fourth quarter.
  • Nurse and allied healthcare staffing revenue — AMN’s largest and fastest-growing segment — posted a 14.9 percent increase in first quarter revenue to $176.8 million. Salka said in a conference call that the travel nurse business grew by 19 percent alone. “An upside surprise was the exceptionally strong revenue from EMR engagements during the first quarter. While still a relatively small part of our overall business, our track record in helping clients to successfully work through EMR implementation with proper staffing and training is certainly becoming more notable,” Salka said. “We also experienced an above normal flu season during January and February, which contributed to higher orders and travelers on assignment.”
  • Physician permanent placement revenue rose 9.8 percent in the first quarter to $9.9 million.

AMN’s first-quarter gross margin improved to 21.3 percent from 20.8 percent in the year-ago quarter. The company said the increase was due mostly to a favorable workers’ comp reserve adjustment in the nurse and allied segment and gross margin improvement in locum tenens.

First-quarter net income rose 76.9 percent to $7.6 million.

AMN, based in San Diego, ranks among the largest U.S. healthcare staffing firms.

AMN Healthcare Services Inc. (NYSE: AHS)
 For the first quarter ended March 31, 2013, compared with the same period in 2012.
 Revenue: $252.1 million, +11.4 percent
 Net income: $7.6 million, +76.9 percent

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