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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.
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
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.
- Allied revenue is expected to be lower than prior year by 27-29%
- Physician and Leadership Solutions segment revenue estimated at nearly 30% below prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income