AMN Healthcare Q2 2020 Earnings Report
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
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.