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AMN Revenue Up in Q4, Notes MSP Deals

March 09 2012

AMN Healthcare Services Inc. (NYSE: AHS), the largest U.S. healthcare staffing firm, reported fourth-quarter revenue rose 7.8 percent to $222.1 million from $206.0 million in the fourth quarter of the previous year. The company also noted several new managed service provider (MSP) deals in the past year.

Revenue in the company’s nurse and allied healthcare operations rose 16.4 percent in the fourth quarter to $148.1 million on a year-over-year basis. Revenue in its physician placement service operations edged up 0.5 percent in the fourth quarter to $9.4 million.

However, locum tenens staffing revenue fell 7.0 percent on a year-over-year basis to $64.6 million. In a conference call with analysts, President and CEO Susan Salka reported volume decreases in radiology, surgery and anesthesia impacted locum tenens revenue. In addition, there was greater softness in the company’s government division because of funding delays and budget constraints. The company expects locum tenens revenue to be flat going into the first quarter.

AMN sold its home healthcare operations in January, and results have been adjusted to reflect the impact of discontinued operations.

Salka said the company added 20 new MSP contracts in 2011 with an estimated $80 million in annualized gross spend under management.

“Penetration of MSP is strongest in nurse staffing but has also been growing in the allied healthcare business over the past year,” Salka said in a conference call with analysts. “During the fourth quarter, approximately one-third of our nurse and allied revenues were generated by MSP clients. This is a significant increase since 2009 when MSP revenues represented only 6% of our Nurse and Allied revenues.”

Salka said the company believes there will be a similar shift towards MSP in the locum tenens market.

AMN posted fourth-quarter gross margin of 28.3 percent, up from 27.5 percent in the year-ago quarter.

The company posted a fourth-quarter net loss of $2.4 million, compared with a net loss of $1.6 million in the year-ago period. However, the company reported $7.7 million in noncash goodwill and intangible asset impairment charges in the fourth quarter.

For full-year 2011, AMN reported revenue of $887.5 million, a 32.5 percent increase compared to revenue $669.9 million in the previous year.

Full-year gross margin rose to 28.1 percent from 27.5 percent in the previous year.

AMN reported a full-year net loss of $26.3 million compared to a net loss of $52.0 million in the previous year. The company reported $31.2 million in noncash goodwill and intangible asset impairment charges in 2011.

Looking forward, AMN Healthcare expects first-quarter revenue of between $224.0 million and $228 million, a year-over-year decline of between 0.6 percent and 2.4 percent.

AMN Healthcare Services Inc. (NYSE: AHS)
For the fourth quarter ended Dec. 31, 2011, compared with the same period in 2010.
Revenue: $222.1 million, +7.8 percent
Net loss: $2.4 million vs. net loss of $1.6 million

For the full-year ended Dec. 31, 2011, compared with the previous year.
Revenue: $887.5 million, +32.5 percent
Net loss: $26.3 million vs. net loss of $52.0 million

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