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View All NewsAMN revenue jumps 45%, reports demand at historic levels
AMN Healthcare Services Inc. (NYSE: AHS), the largest US healthcare staffing firm, reported demand is at historically high levels. Third-quarter revenue rose 45%, driven by organic growth of 29%.
Third-quarter gross margin improved to 32.9% from 30.4%. The increase came through an increased revenue mix of higher-margin workforce solutions businesses along with a gross margin increase in the locum tenens staffing segment, according to the company.
Net income nearly tripled in the third quarter.
(US$ thousands) | Q3 2015 | Q3 2014 | % growth |
Revenue | $382,859 | $264,584 | 44.7% |
Gross profit | $126,009 | $80,306 | 56.9% |
Gross margin percentage | 32.9% | 30.4% | |
Net income | $33,647 | $8,499 | 295.9% |
Quote
“The AMN Healthcare team continues to deliver exceptional service and results to our clients amidst a strong demand environment, resulting in better than anticipated revenue and profitability growth in the third quarter,” said President and CEO Susan Salka. “In addition to our focus on organic growth, we continue to expand AMN’s capabilities, including our most recent acquisitions of The First String and Millican Solutions, which further bolster our physician executive and nurse leadership recruitment capabilities. With a continuing robust demand outlook in all of our business segments, we remain focused on delivering superior value to our clients and healthcare professionals through continued expansion of our innovative workforce solutions and recruitment strategies.”
Revenue by segment
(US$ thousands) | Q3 2015 | Q3 2014 | % growth |
Nurse and allied healthcare staffing | $266,279 | $174,292 | 52.8% |
Locum tenens staffing | $101,755 | $78,816 | 29.1% |
Physician permanent placement services | $14,825 | $11,476 | 29.2% |
Guidance
AMN forecasts fourth-quarter revenue of $385 million to $390 million. Gross margin is forecast to be approximately 32.0%.
Share price and market cap
Shares in AMN rose 2.39% in early afternoon trading today to $29.60, and the company had a market cap of $1.41 billion, according to Yahoo!