Healthcare Staffing Report: May 7, 2015

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AMN and Cross Country release Q1 earnings

AMN Healthcare Services Inc. (NYSE: AHS) and Cross Country Healthcare Inc. (NASD CCRN) released first-quarter earnings.

AMN Healthcare Services Inc.

AMN reported first-quarter revenue rose 36.0% in the first quarter to $327.5 million, above guidance of $310 million to $314 million.

The San Diego-based company, which ranks as the largest US healthcare staffing provider, reported revenue rose 22% excluding acquisitions. It acquired Onward Healthcare, Locum Leaders and VMS provider Medefis from OGH LC in January for $82.5 million.

Net income jumped and gross margin also improved.

Quote

“Amid positive trends in the healthcare industry, we continued to experience strong demand and outstanding execution across all business segments, resulting in better than anticipated revenue and profitability growth during the first quarter,” President and CEO Susan Salka said. “The pipeline of opportunities for our strategic workforce solutions offerings remains strong, and our recently added Avantas, Onward Healthcare, Locum Leaders and Medefis companies are performing and integrating very well into AMN’s service offerings.”

Revenue by segment

Excluding acquisitions, nurse and allied healthcare staffing revenue rose 24%, and locum tenens staffing revenue rose 19%.

Guidance

AMN forecast second-quarter revenue of between $335 million and $340 million. Gross margin is forecast at between 30.5% and 31.0%.

Cross Country Healthcare Inc.

Cross Country, the fourth-largest US healthcare staffing firm, reported first-quarter revenue rose 5% on a pro forma basis, which treats acquired firms as if Cross Country owned them in both reported quarters. Total income was up 57.5%.

Nurse and allied staffing revenue rose 85% in the first quarter, and was up 8% on a pro forma basis. Revenue in this segment got a boost from the company’s acquisition of Medical Staffing Network on June 30 of last year.

Quote

“We had a good start to 2015 with strong year-over-year revenue growth and a $5 million improvement in our Adjusted EBITDA,” President and CEO William Grubbs said. “We are well positioned for continued improvement throughout the year and, as previously announced, expect to achieve our targeted 5% Adjusted EBITDA by the fourth quarter.”

Revenue by segment

Guidance

Cross Country forecast second-quarter revenue of $188 million to $192 million, a year-over-year increase of 53% to 57%.