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Mar 31, 2020
AMN Healthcare Q1 2020 Earnings Report
AMN Healthcare's Q1 2020 results were announced, revealing a revenue increase of 13% year-over-year, driven by organic growth and acquisitions, but net income decreased due to COVID-19 impacts and increased SG&A expenses.
Key Takeaways
AMN Healthcare reported Q1 2020 revenue of $602 million, a 13% increase year-over-year. GAAP EPS was $0.27, while adjusted EPS was $0.79. The company experienced growth in most business lines during the first two months of the year, but the COVID-19 pandemic negatively impacted several divisions in March. The acquisition of Stratus Video contributed $14 million in revenue.
Revenue increased by 13% year-over-year to $602 million, with organic revenue up by 3%.
GAAP EPS decreased to $0.27, while adjusted EPS increased to $0.79.
COVID-19 negatively impacted most divisions except Travel Nurse and VMS in the latter part of the quarter.
Stratus Video acquisition contributed $14 million in revenue, slightly below expectations due to COVID-19.
AMN Healthcare
AMN Healthcare
AMN Healthcare Revenue by Segment
Revenue by Segment
Nurse and Allied Solutions Revenue
CapyFin.comPhysician and Leadership Solutions Revenue
CapyFin.comTechnology and Workforce Solutions Revenue
CapyFin.com Forward Guidance
AMN Healthcare projects second quarter revenue to be in the range of $550 million to $570 million. The company has taken steps to reduce spending, decreasing SG&A by approximately 15% on an annualized basis. Second quarter operating margin is expected to be above 6%, and adjusted EBITDA margin is expected to be above 12%.
Positive Outlook
- Nurse and Allied Solutions segment revenue is expected to be above prior year by 7-10%.
- Higher travel nurse revenue is anticipated.
- Revenue for Physician and Leadership Solutions and Technology and Workforce Solutions segments has stabilized.
- Demand is expected to grow from current levels for Physician and Leadership Solutions and Technology and Workforce Solutions as elective procedures resume.
- SG&A has decreased by approximately 15% on an annualized basis from pre-COVID-19 run rate.
Challenges Ahead
- Stay-at-home orders and suspension of elective procedures have caused a material decrease in healthcare utilization.
- Buying decisions from clients have been delayed.
- Recent travel nurse demand has fallen significantly.
- Trajectory of volume and revenue is declining through the quarter for Nurse and Allied Solutions segment.
- Volumes for nurse, allied and revenue cycle are expected to be below prior year in June.
Revenue & Expenses
Visualization of income flow from segment revenue to net income