AMN Healthcare Services Inc (AMN, Financial) released its third quarter 2023 financial results on November 2, 2023. The company reported a quarterly revenue of $853 million, marking a 25% decrease from Q3 2022. The net income for Q3 2023 was $53.2 million, a 42% decrease from the same period in the previous year. The GAAP diluted EPS was $1.39, a 34% decrease from Q3 2022, and the adjusted diluted EPS was $1.97, a 23% decrease from the same period last year.
Financial Highlights and Business Developments
AMN's President and Chief Executive Officer, Cary Grace, commented on the company's performance, stating,
The AMN team did an impressive job balancing business execution in the third quarter alongside our initiatives to sharpen our strategic plan and implement powerful advancements in our technology platform and processes."Grace also mentioned the company's strategic move with the pending acquisition of MSDR, which is expected to strengthen AMN's presence in the robust locum tenens market.
AMN's consolidated revenue for Q3 2023 was $853.5 million, a 25% decrease from the prior year and 14% lower than the prior quarter. The company's net income was $53 million (6.2% of revenue), compared to $92 million (8.1% of revenue) in Q3 2022. The adjusted diluted EPS in Q3 2023 was $1.97, compared to $2.57 in the same quarter a year ago.
Segment Performance
The Nurse and Allied Solutions segment reported revenue of $573 million, a decrease of 31% year over year. The Physician and Leadership Solutions segment reported revenue of $160 million, down 9% year over year. The Technology and Workforce Solutions segment reported revenue of $120 million, a decrease of 11% year over year.
Future Outlook
For Q4 2023, AMN expects consolidated revenue to be between $790 - $810 million, with a gross margin of 32.3% - 32.8%. The operating margin is projected to be between 5.9% - 6.5%, and the adjusted EBITDA margin is expected to be between 12.5% - 13.0%.
Acquisition and Stock Repurchase Update
In October 2023, AMN signed a definitive agreement to acquire MSDR, which includes two locum tenens and advanced practices staffing companies, Medical Search International and DRW Healthcare Staffing. The purchase price is approximately $300 million. The company completed a $200 million accelerated share repurchase program in August 2023. As of September 30, 2023, $227 million remained on the repurchase program authorized by the Board of Directors.
Explore the complete 8-K earnings release (here) from AMN Healthcare Services Inc for further details.
