On August 8, 2024, AMN Healthcare Services Inc (AMN, Financial) released its 8-K filing detailing its second quarter 2024 financial results. AMN Healthcare Services is one of the largest healthcare staffing companies in the United States, offering more than 13,000 nurses and allied healthcare full-time workers to provider clients nationwide. Approximately two-thirds of its business is generated from its temporary nursing division, with the remaining third from its physician placement and technology-backed workplace solutions divisions.
Performance Overview
AMN Healthcare Services Inc (AMN, Financial) reported quarterly revenue of $741 million, slightly above the analyst estimate of $740.43 million. However, the company’s GAAP earnings per share (EPS) of $0.42 fell short of the estimated $0.51. Adjusted EPS was reported at $0.98, a significant decrease from $2.38 in the same quarter last year.
Financial Achievements and Challenges
Despite the revenue beat, AMN Healthcare Services Inc (AMN, Financial) faced several challenges. The company’s net income for the quarter was $16.2 million, a 73% decline from the previous year. Gross profit also saw a 30% year-over-year decrease, landing at $229.8 million. The company’s gross margin dropped to 31.0%, down from 33.3% in the same quarter last year.
“In the second quarter, we made important progress in strengthening AMN's position with clients in every part of the market for total talent solutions in healthcare,” said Cary Grace, President and Chief Executive Officer of AMN Healthcare.
Segment Performance
The Nurse and Allied Solutions segment reported revenue of $442 million, a 36% year-over-year decline. Travel nurse staffing revenue dropped by 42% year-over-year. The Physician and Leadership Solutions segment, however, saw a 6% year-over-year increase in revenue, reaching $186 million. The Technology and Workforce Solutions segment reported revenue of $112 million, an 11% year-over-year decrease.
Income Statement Highlights
| Metric | Q2 2024 | % Change Q2 2023 |
|---|---|---|
| Revenue | $740.7 million | (25%) |
| Gross Profit | $229.8 million | (30%) |
| Net Income | $16.2 million | (73%) |
| GAAP Diluted EPS | $0.42 | (73%) |
| Adjusted Diluted EPS | $0.98 | (59%) |
| Adjusted EBITDA | $94.1 million | (42%) |
Balance Sheet and Cash Flow
As of June 30, 2024, AMN Healthcare Services Inc (AMN, Financial) had cash and cash equivalents totaling $48 million. The company reported cash flow from operations of $100 million for the second quarter, with capital expenditures amounting to $27 million. Total debt outstanding was $1.195 billion, resulting in a net leverage ratio of 2.6 to 1.
Analysis and Outlook
AMN Healthcare Services Inc (AMN, Financial) continues to face challenges in its core segments, particularly in travel nurse staffing. However, the company’s diversification into higher-margin revenue sources and careful expense management have helped mitigate some of these challenges. The company’s third-quarter outlook projects consolidated revenue between $660 million and $680 million, with a gross margin of 30.7% to 31.2%.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from AMN Healthcare Services Inc for further details.
