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Jun 30, 2020
AMN Healthcare Q2 2020 Earnings Report
AMN Healthcare's Q2 2020 financial results were announced, showing revenue growth and adaptability amidst the COVID-19 pandemic.
Key Takeaways
AMN Healthcare reported a 14% increase in revenue to $608 million for Q2 2020. The company's adjusted EPS was $0.83, and they reduced debt by $127 million, achieving a leverage ratio of 2.7 to 1.
AMN team members and healthcare professionals played a crucial role in caring for COVID-19 patients.
The company increased diversity, inclusion, equity, and equality actions.
Q2 financial results exceeded expectations, driven by travel nurse staffing and the recovery of Stratus Video.
Operating cash flow was $77 million, enabling debt reduction.
Revenue by Segment
Forward Guidance
The company projects consolidated third quarter revenue to be in a range of $510 million to $525 million. Third quarter gross margin is expected to be 33.0-33.5%, operating margin is expected to be above 7%, and adjusted EBITDA margin is expected to be greater than 13%.
Positive Outlook
- Travel nurse staffing revenue is expected to be up 3-5% to prior year.
- Language interpretation business has experienced steady growth in billable minutes since May, which we expect will continue through the third quarter
- Third quarter gross margin is expected to be 33.0-33.5%.
- Operating margin is expected to be above 7%.
- Adjusted EBITDA margin is expected to be greater than 13%.
Challenges Ahead
- COVID-19 pandemic has been highly disruptive to economic activity and to healthcare infrastructure
- Healthcare labor demand is volatile.
- Elective procedures and routine care are still below pre-crisis levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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