AMN Healthcare Q1 2020 Earnings Report
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
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.