AMN Healthcare Completes Acquisition of Advanced Medical and Amends Credit Facility

DALLAS and SAN DIEGO, June 17, 2019 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AMN), the leading innovator in healthcare workforce solutions and staffing services, today announced the completion of the acquisition of Advanced Medical Personnel Services, Inc. (Advanced) for a base purchase price of $200 million, with up to an additional $20 million to be paid if Advanced achieves certain financial results as of December 31, 2019. Advanced is an allied and nurse staffing firm that serves hospitals, schools, clinics, skilled nursing facilities, and home health settings. 

AMN Healthcare Logo. (PRNewsFoto/AMN Healthcare)

"The addition of the innovative Advanced organization into the AMN family of companies is an exciting event for all of our stakeholders – our clients, healthcare professionals, team members and our shareholders," said Susan Salka, President and CEO of AMN Healthcare. "Advanced brings a very talented team that will enable us to collectively serve our nursing and allied clients most effectively during the current and expected future strong demand environment.  We are also excited about the innovative approach Advanced has created to deliver therapy services in school settings to care for children during their critical development years.  With the added capabilities that Advanced brings to AMN, we can continue to solve the most difficult workforce challenges facing the healthcare industry – today and in the future."

"As part of AMN Healthcare, our combined teams will deliver the healthcare industry's most innovative and comprehensive services to a wide range of facilities, including schools, where the need for clinicians is strong," said Jennifer Fuicelli, CEO of Advanced. "We firmly embrace the AMN mission to provide the highest quality healthcare practitioners and workforce solutions in order to improve the outcomes and experience for patients across the country."

The acquisition of Advanced is expected to add approximately $5 million of revenue to our second quarter 2019 results. We expect Advanced to contribute $70-75 million revenue and approximately $10 million adjusted EBITDA in the second half of 2019, with its fourth quarter revenue approximately 15% greater than in the third quarter due to the seasonality of Advanced's school staffing business. On a combined basis, AMN's income tax rate for the second half of the year is expected to be 30% due to a higher tax rate for Advanced. Advanced will add about $0.25 million to depreciation expense in each of the third and fourth quarters.

To finance the acquisition, AMN used $51 million in capacity available under its existing secured revolving credit facility, and amended our credit facility to obtain a new $150 million term loan maturing in June 2024.  The amendment also extended the maturity of our secured revolving credit facility to June 2024.

About AMN Healthcare

AMN is the leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. AMN provides unparalleled access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights and expertise, AMN helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN delivers managed services programs, healthcare executive search solutions, vendor management systems, recruitment process outsourcing, predictive labor analytics, mid-revenue cycle management, credentialing solutions, and other services. AMN is committed to fostering and maintaining a diverse team that reflects the communities we serve. Our commitment to the inclusion of many different backgrounds, experiences and perspectives enables our innovation and leadership in the healthcare services industry. For more information about AMN, visit www.amnhealthcare.com.

About Advanced Medical

Advanced Medical is a staffing company that specializes in placing outstanding therapists and nurses in contract and permanent positions across the United States. Advanced Medical works with Occupational Therapists, Physical Therapists, Speech Language Pathologists, and Nurses who are passionate about helping members of our communities live happier, healthier, and fuller lives. Advanced Medical connects talent with opportunities in multiple settings including hospitals, clinics, skilled nursing facilities, home health, and schools.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning the revenue, profit margins, tax rate, anticipated earnings accretion, additional talent and placement opportunities, and additional depreciation expenses, in each case as a result of the acquisition of Advanced. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.  These statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, many of which are beyond the control of AMN, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: (1) the ability of AMN to successfully integrate Advanced operations and employees; (2) unexpected costs, charges or expenses resulting from the acquisition; (3) risks that the acquisition disrupts the current plans and operations of AMN and Advanced; (4) the ability to realize the projected revenue and market expansion opportunities described in this press release; (5) competition from companies in Advanced's markets; (6) potential adverse reactions (including client reaction) or changes to business relationships resulting from the completion of the acquisition; (7) the retention of key employees of Advanced; and (8) the economy in general as well as the financial performance and expectations of AMN's and Advanced's existing and prospective customers. For additional disclosure regarding these and other risks faced by AMN, see the disclosures contained in AMN's most recent Annual Report on Form 10-K on file with the Securities and Exchange Commission and the other subsequent reports that AMN periodically files with the Securities and Exchange Commission. Actual results may differ materially from those contemplated by these forward-looking statements. These forward looking statements reflect management's current views and AMN does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date hereof except as required by law.

Media Contact:
Jim Gogek
(858) 350-3209
Jim.Gogek@amnhealthcare.com

Investor Relations Contact:
Randle Reece
Director, Investor Relations
(866) 861-3229

SOURCE AMN Healthcare