/C O R R E C T I O N -- AMN Healthcare Services, Inc./

In the news release, AMN Healthcare Announces Full Year and Fourth Quarter 2011 Results, issued today by AMN Healthcare Services, Inc. over PR Newswire, we are advised by the company that, in the Conference Call section, the dial in numbers and telephonic replay access code has been appropriately updated. The complete, corrected release follows:

AMN Healthcare Announces Full Year and Fourth Quarter 2011 Results

SAN DIEGO, March 8, 2012 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AHS), the nation's innovator in healthcare workforce solutions, today announced financial results for the full year and fourth quarter 2011. The results were at the upper end of management's expectations, the Company said. Financial highlights are as follows:

(Dollars in millions, except per share amounts. Amounts have been adjusted to reflect the impact of the discontinued operations associated with  the disposal of the Home Healthcare Services segment in January 2012.)



Q4

2011

% Chg

Q4 2010

% Chg

Q3 2011

Full Year

2011

% Chg

Full Year

2010

Revenue

$222.1

8%

(3%)

$887.5

32%

Gross Profit

$62.8

11%

(1%)

$249.3

35%

Net Income from Continuing Operations

$1.7

NM

68%

$5.0

NM

Net Loss

($2.4)

50%

(91%)

($26.3)

(49%)

Net Loss per Diluted Share

($0.05)

67%

(92%)

($0.57)

(62%)

Adjusted EBITDA*

$15.8

57%

(2%)

$64.0

62%

Adjusted EPS*

$0.04

NM

0%

$0.16

700%

* See notes (2) and (3) under "Supplemental Financial and Operating Data" for a reconciliation of non-GAAP items.


NM – Not meaningful




Key business highlights for the full year and fourth quarter of 2011 are as follows:

  • Consolidated pro forma full year revenues grew by 11% and adjusted EBITDA grew by 40%. Pro forma adjusted EBITDA margin for the year was 7.2%, a 150 basis point improvement over the prior year.
  • The Travel Nurse division experienced pro forma full year revenue growth of 32% and adjusted EBITDA growth of 71%, reflecting the strength of the Company's managed services program (MSP) client relationships, recruitment strategies, and ability to leverage its infrastructure.
  • Operating  leverage  was significantly improved  by  revenue and cost synergies from integrating the Medfinders organization, which was acquired in September 2010.
  • Revenues for the fourth quarter in Nurse and Allied Healthcare Staffing, AMN's largest segment, were flat sequentially and up 16% year-over-year due primarily to continued growth in travel nurse volume. Segment operating margin of 12.2% was up 190 basis points sequentially and 380 basis points compared with the same quarter last year.  
  • Fourth quarter consolidated gross margin improved 50 basis points sequentially and 80 basis points year-over-year.
  • The Company completed the sale of its Home Healthcare Services business on January 30, 2012.


"Going into 2012, we are focused on fulfilling our clients' desire for more workforce solutions and innovative service offerings. AMN's leading position and differentiated value proposition in workforce solutions has put us at the forefront of growth and thought leadership in our industry," said Susan R. Salka, President and Chief Executive Officer of AMN Healthcare. "An indicator of the positive client reaction to our differentiated capabilities was the 20 new MSP contracts won during the year with an estimated $80 million in annualized gross spend under management. We expect these growth trends in MSP and other workforce solutions to continue."

Full Year and Fourth Quarter 2011 Results

Full year 2011 consolidated revenue was $887 million, an increase of 32% from prior year. Nurse and Allied Healthcare Staffing segment revenue was $571 million, a year-over-year  increase of 54%. Locum Tenens Staffing segment revenue was $278 million, a year-over-year increase of 5%. Physician Permanent Placement Services segment revenue was $39 million, a year-over-year increase of 14%.

For the fourth quarter of 2011, consolidated revenue was $222 million, a decrease of 3% sequentially and an increase of 8% from the same quarter last year. The sequential decline was due to typical seasonality from fewer clinicians on assignment and overall fewer hours worked over the holidays. Fourth quarter revenue for the Nurse and Allied Healthcare Staffing segment was $148 million, flat sequentially and up 16% from the same quarter last year. The Locum Tenens Staffing segment generated revenue in the fourth quarter of $65 million, a decrease of 10% sequentially and 7% from the same quarter last year. Fourth quarter Physician Permanent Placement Services segment revenue was $9 million, an increase of 2% sequentially and flat from the same quarter last year.

Full year gross margin was 28.1% as compared to 27.5% for prior year. The increase in 2011 gross margin was due primarily to favorable workers compensation adjustments and improved performance within the Nurse and Allied Healthcare Staffing segment, the impact from the adoption of a new revenue recognition accounting standard on January 1, 2011 in the Physician Permanent Placement Services segment, as well as the addition of the higher margin Medfinders businesses. Gross margin in the fourth quarter of 2011 was 28.3%, an increase of 50 basis points compared to the previous quarter and an increase of 80 basis points from the same quarter last year.

For the full year, SG&A expenses as a percentage of revenue were 22.0% compared to 24.3% for the prior year, due primarily to improved operating leverage and the cost synergies achieved through the integration of Medfinders. SG&A expenses for the fourth quarter of 2011 were $49.0 million, representing  22.1% as a percent of revenue, compared to 21.6% in the prior quarter and 24.6% in the same quarter last year. The decrease compared to the same quarter last year was due primarily to lower integration-related expenses associated with the Medfinders acquisition and the resulting improved SG&A leverage.  Excluding acquisition and integration related costs, SG&A expenses as a percentage of revenues were 21.9% in the fourth quarter of 2011, which was up 40 basis points from the prior quarter and down 170 basis points from the same quarter last year.

Full year and fourth quarter 2011 net loss per diluted common share was ($0.57) and ($0.05), respectively. Full year and fourth quarter 2011 loss per share was impacted by $31.2 million and $7.7 million, respectively, in non-cash goodwill and intangible asset impairment charges. Excluding the discontinued Home Healthcare Services segment and associated non-cash goodwill and intangible asset impairment charges, integration-related costs, and credit agreement amendment fees charged to interest expense, adjusted earnings per share for the full year and fourth quarter 2011 was $0.16 and $0.04, respectively.

As of December 31, 2011, cash and cash equivalents totaled $4 million, compared to $2 million as of December 31, 2010. Total debt outstanding, net of discount, as of December 31, 2011 was $205 million, compared to $215 million as of December 31, 2010. Subsequent to year-end, the Company made a voluntary debt payment of $5 million and paid off its $3 million revolver balance.

Business Trends and Outlook

On a consolidated basis, first quarter revenues are expected to be between $224 million and $228 million, which represents a 1% to 3% sequential increase. This anticipated sequential increase is driven by continued growth in the Nurse and Allied Healthcare Staffing segment, with flat revenues in the Locum Tenens segment. Gross margin is anticipated to be between 27.5% and 28.0%. SG&A expenses are expected to be approximately 22.0% of revenues. Adjusted EBITDA margin is expected to be approximately 6.5%.

While the Company does not intend to provide annual guidance on revenue and EPS, on the earnings call today management will provide full year estimates for depreciation and amortization, interest expense, share count and capital expenditures.

About AMN Healthcare Services

AMN Healthcare Services, Inc. is the nation's innovator in healthcare workforce solutions, including managed services programs, recruitment process outsourcing solutions, recruitment and placement of healthcare professionals into temporary and permanent positions, and consulting services. Clients include acute-care hospitals, government facilities, community health centers and clinics, physician practice groups, and a host of other healthcare settings. AMN achieves unparalleled access to quality healthcare talent through its innovative recruitment strategies and breadth of compelling career-building opportunities offered to healthcare professionals. For more information, visit http://www.amnhealthcare.com.

Conference Call on March 8, 2012

AMN Healthcare Services, Inc.'s fourth quarter 2011 conference call will be held on Thursday, March 8, 2012, at 5:00 p.m. Eastern Time. A live webcast of the call can be accessed through AMN Healthcare's website at http://amnhealthcare.investorroom.com/presentations. Please log in at least 10 minutes prior to the conference call in order to download the applicable audio software. Interested parties may participate live via telephone by dialing (877) 531-2988 in the U.S. or (612) 332-0802 internationally. Following the conclusion of the call, a replay of the webcast will be available at the company's website. A telephonic replay of the call will also be available at 7:30 p.m. Eastern Time on March 8, 2012, and can be accessed until 11:59 p.m. Eastern Time on March 29, 2012, by calling (800) 475-6701 in the U.S. or (320) 365-3844 internationally, with access code 236553.

Non-GAAP Measures

This earnings release contains certain non-GAAP financial information. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States ("GAAP"), and may be different from non-GAAP measures reported by other companies. From time to time, additional information regarding non-GAAP financial measures, including pro forma measures, may be made available on the company's website at http://www.amnhealthcare.com/investors.

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. Such statements include expectations regarding 2012 first quarter revenue, revenue growth, gross margin, SG&A, and adjusted EBITDA margin. The company based these forward-looking statements on its current expectations and projections about future events. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements contained in this press release are set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2010 and its other periodic reports as well as its current and other reports filed with the SEC. These statements reflect the company's current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated with the passage of time.

Contact:
Amy C. Chang
Vice President, Investor Relations
866.861.3229



AMN Healthcare Services, Inc.

Condensed Consolidated Statements of Operations

(dollars in thousands, except per share amounts)

(unaudited)



Three Months Ended


Twelve Months Ended


December 31,


September 30,


December 31,


2011

2010


2011


2011

2010









Revenue

$  222,053

$  206,046


$  229,006


$  887,466

$  669,912

Cost of revenue

159,268

149,337


165,345


638,147

485,550

Gross profit

62,785

56,709


63,661


249,319

184,362


28.3%

27.5%


27.8%


28.1%

27.5%

Operating expenses:








  Selling, general and administrative

48,963

50,652


49,477


195,348

162,543


22.1%

24.6%


21.6%


22.0%

24.3%

  Depreciation and amortization

3,845

4,594


3,921


16,324

14,764

  Impairment charges

0

1,050


0


0

50,832

       Total operating expenses

52,808

56,296


53,398


211,672

228,139

Income (loss) from operations

9,977

413


10,263


37,647

(43,777)









Interest expense, net

5,620

5,751


7,017


23,727

19,762

  Income (loss) from continuing operations before income taxes

4,357

(5,338)


3,246


13,920

(63,539)

Income tax expense (benefit)

2,673

(3,194)


2,242


8,904

(10,787)

Income (loss) from continuing operations, net of tax

1,684

(2,144)


1,004


5,016

(52,752)

Income (loss) from discontinued operations, net of tax

(4,119)

526


(27,903)


(31,281)

761

        Net loss

$  (2,435)

$  (1,618)


$  (26,899)


$  (26,265)

$  (51,991)









Basic income (loss) per common share from:








       Continuing operations

$  0.04

$  (0.05)


$  0.02


$  0.12

$  (1.51)

       Discontinued operations

(0.10)

0.01


(0.69)


(0.78)

0.02

       Net loss

$  (0.06)

$  (0.03)


$  (0.67)


$  (0.66)

$  (1.49)

Diluted income (loss) per common share from:








       Continuing operations

$  0.04

$  (0.05)


$  0.02


$  0.11

$  (1.51)

       Discontinued operations

(0.09)

0.01


(0.61)


(0.68)

0.02

       Net loss

$  (0.05)

$  (0.03)


$  (0.59)


$  (0.57)

$  (1.49)









Weighted average common shares outstanding:








     Basic

40,440

39,121


40,327


39,913

34,840

     Diluted

46,034

39,121


45,950


45,951

34,840













AMN Healthcare Services, Inc.

Supplemental Financial and Operating Data

(dollars in thousands, except operating data)

(unaudited)















Three Months Ended


Twelve Months Ended


December 31,


September 30,


December 31,



2011


2010



2011



2011


2010

Revenue













 Nurse and allied healthcare staffing

$

148,136

$

127,292


$

147,738


$

570,677

$

371,147

 Locum tenens staffing


64,553


69,434



72,080



277,919


264,726

 Physician permanent placement services


9,364


9,320



9,188



38,870


34,039


$

222,053

$

206,046


$

229,006


$

887,466

$

669,912














Reconciliation of Non-GAAP Items:


























Segment Operating Income(1)













 Nurse and allied healthcare staffing

$

18,050

$

10,693


$

15,197


$

62,786

$

35,279

 Locum tenens staffing


3,930


4,765



6,283



21,689


21,999

 Physician permanent placement services


2,164


2,316



2,142



10,634


7,959



24,144


17,774



23,622



95,109


65,237

  Unallocated corporate overhead


8,351


7,738



7,538



31,089


25,734

Adjusted EBITDA(2)


15,793


10,036



16,084



64,020


39,503














Depreciation and amortization


3,845


4,594



3,921



16,324


14,764

Stock-based compensation


1,713


1,931



1,689



7,098


8,272

Acquisition related costs


258


2,048



211



2,951


9,412

Impairment charges


0


1,050



0



0


50,832

Interest expense, net


5,620


5,751



7,017



23,727


19,762

Income (loss) from continuing operations before income taxes


4,357


(5,338)



3,246



13,920


(63,539)

Income tax expense (benefit)


2,673


(3,194)



2,242



8,904


(10,787)

Net income (loss) from continuing operations


1,684


(2,144)



1,004



5,016


(52,752)

Net income (loss) from discontinued operations


(4,119)


526



(27,903)



(31,281)


761

Net income (loss)

$

(2,435)

$

(1,618)


$

(26,899)


$

(26,265)

$

(51,991)



























GAAP based diluted net loss per share (EPS)

$

(0.05)

$

(0.03)


$

(0.59)


$

(0.57)

$

(1.49)

 Adjustments:













 Acquisition related costs


0.00


0.02



0.00



0.04


0.17

 Impairment charges


0.00


0.01



0.00



0.00


1.27

 Financing costs


0.00


0.00



0.02



0.01


0.09

 Impact of assumed preferred dividends


0.00


(0.01)



0.00



0.00


0.00

 Discontinued operations


0.09


(0.01)



0.61



0.68


(0.02)

Adjusted diluted earnings (loss) per share (3)

$

0.04

$

(0.02)


$

0.04


$

0.16

$

0.02




















Twelve Months Ended



December 31,






Reconciliation of Pro Forma Items (4)


2011


2010



2010








Consolidated


Historical

Consolidated



PRO

FORMA

(4)



% Change

vs. PRO

FORMA



Consolidated Revenue (5)

$

887,466

$

669,912



800,692



11%



Adjusted EBITDA (5)


64,020


39,502



45,756



40%



Adjusted EBITDA Margin (5)


7.2%





5.7%



150bps



Revenue – nurse and allied healthcare staffing  (6)


570,677


371,147



480,627



19%



Adjusted EBITDA – nurse and allied healthcare staffing (6)


62,786


35,279



42,372



48%



Adjusted EBITDA  Margin – nurse and allied healthcare staffing  (6)


11.0%





8.8%



220bps



Revenue Travel Nurse Division (7)


347,549


247,432



263,726



32%



Adjusted EBITDA Travel Nurse Division (7)


47,235


27,377



27,634



71%

















Three Months Ended



Twelve Months Ended



December 31,



September 30,



December 31,



2011


2010



2011



2011


2010

Gross Margin













  Nurse and allied healthcare staffing


27.4%


26.1%



26.6%



26.8%


25.9%

  Locum tenens staffing


25.5%


25.4%



26.0%



25.8%


25.7%

  Physician permanent placement services


61.7%


62.3%



60.5%



63.0%


58.4%














Operating Data:













Nurse and allied healthcare staffing













   Average travelers on assignment (8)


5,317


4,727



5,300



5,208


3,501

   Revenue per traveler per day(9)

$

302.84

$

292.70


$

302.99


$

300.21

$

290.44

   Gross profit per traveler per day(9)

$

82.91

$

76.54


$

80.70


$

80.55

$

75.37














Locum tenens  staffing













   Days filled (10)


47,610


48,502



51,292



199,196


187,953

   Revenue per day filled(10)

$

1,355.87

$

1,431.57


$

1,405.29


$

1,395.20

$

1,408.47

   Gross profit per day filled(10)

$

345.50

$

363.20


$

365.64


$

360.05

$

362.66























































(1)

Segment Operating Income represents net income (loss) plus interest expense (net of interest income), income taxes, depreciation and amortization, impairment charges, unallocated corporate overhead, stock-based compensation expense, acquisition related costs, and net income(loss) from discontinued operations, net of tax. Management believes that Segment Operating Income is an industry wide financial measure that is useful both to management and investors when evaluating the company's performance. Management also uses Segment Operating Income for planning purposes. Segment Operating Income is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation and allocation of costs.

(2)

Adjusted EBITDA represents net income (loss) plus interest expense (net of interest income), income taxes, depreciation and amortization, acquisition related costs, impairment charges, stock-based compensation expense and net income(loss) from discontinued operations, net of tax. Management presents adjusted EBITDA because it believes that adjusted EBITDA is a useful supplement to net income (loss) as an indicator of operating performance. Management believes that adjusted EBITDA is an industry wide financial measure that is useful both to management and investors when evaluating the company's performance. Management also uses adjusted EBITDA for planning purposes. Management uses adjusted EBITDA to evaluate the company's performance because it believes that adjusted EBITDA provides an effective measure of the company's results, as it excludes certain items that management believes are not indicative of the company's operating performance and considers measures used in credit facilities. However, adjusted EBITDA is not intended to represent cash flows for the period, nor has it been presented as an alternative to income from operations or net income (loss) as an indicator of operating performance, and it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. As defined, adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. While management believes that some of the items excluded from adjusted EBITDA are not indicative of the company's operating performance, these items do impact the statement of operations, and management therefore utilizes adjusted EBITDA as an operating performance measure in conjunction with GAAP measures such as net income (loss).

(3)

Adjusted EPS represents GAAP EPS excluding the impact of acquisition related costs, impairment charges, financing costs, accumulated preferred stock dividends and net income(loss) from discontinued operations, net of tax . Management presents adjusted EPS because it believes that adjusted EPS is a useful supplement to diluted net income (loss) per share as an indicator of operating performance. Management believes such a measure provides a picture of the company's results that is more comparable among periods since it excludes the impact of items that may recur occasionally, but tend to be irregular as to timing, thereby distorting comparisons between periods. However, investors should note that this non-GAAP measure involves judgment by management (in particular, judgment as to what is classified as a special item to be excluded from adjusted EPS). As defined, adjusted EPS is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. While management believes that some of the items excluded from adjusted EPS are not indicative of the company's operating performance, these items do impact the income statement, and management therefore utilizes adjusted EPS as an operating performance measure in conjunction with GAAP measures such as GAAP EPS.

(4)

The unaudited pro forma items combine the historical results for AMN for the twelve months ended December 31, 2010 and the historical results for NF Investors, Inc ("NFI") for the eight months ended August 31, 2010, prior to the acquisition, as if the acquisition had occurred on January 1, 2010. The proforma information is solely for informational purposes and is not necessarily indicative of the combined results of operations that might have been achieved for the period indicated, nor is it necessarily indicative of the future results of the combined company.

(5)

Amounts represent consolidated revenue, Adjusted EBITDA, and Adjusted EBITDA margin for the twelve months ended December 31, 2011 vs historical/pro forma for the twelve months ended December 31, 2010.

(6)

Amounts represent nurse and allied healthcare staffing segment revenue, Adjusted EBITDA (also named "segment operating income") and Adjusted EBITDA margin (also named "segment operating margin") for the twelve months ended December 31, 2011 vs. historical/pro forma for the twelve months ended December 31, 2010.

(7)

Amounts represent  Travel Nurse Division revenue and Adjusted EBITDA for the twelve months ended December 31, 2011 vs. historical/pro forma for the twelve months ended December 31, 2010.

(8)

Average travelers on assignment represents the average number of nurse and allied healthcare professionals on assignment during the period presented.

(9)

Revenue per traveler per day and gross profit per traveler per day represent the revenue and gross profit of the company's nurse and allied healthcare staffing segment divided by average travelers on assignment, divided by the number of days in the period presented.

(10)

Days filled is calculated by dividing the locum tenens hours filled during the period by 8 hours. Revenue per day filled and gross profit per day filled represent revenue and gross profit of the company's locum tenens staffing segment divided by days filled for the period presented.




AMN Healthcare Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)




December 31,

September 30,

December 31,


2011

2011

2010

Assets




Current assets:




 Cash and cash equivalents

$  3,962

$  4,643

$  1,883

 Accounts receivable, net

146,654

143,938

127,464

 Accounts receivable, subcontractor

22,497

17,441

17,082

 Prepaid expenses

5,691

6,032

6,969

 Income taxes receivable

3,372

2,210

3,760

 Deferred income taxes, net

19,335

19,938

20,170

 Other current assets

3,652

3,250

1,933

 Assets held for sale

7,310

0

0

   Total current assets

212,473

197,452

179,261

Restricted cash, cash equivalents and investments

18,244

18,250

20,961

Fixed assets, net

16,863

18,134

21,777

Deposits and other assets

19,329

19,769

20,116

Deferred income taxes, net

1,823

243

243

Goodwill

123,324

130,089

154,176

Intangible assets, net

143,575

153,465

165,576





    Total assets

$  535,631

$  537,402

$  562,110





Liabilities and stockholders' equity




Current liabilities:




 Bank overdraft

$         3,515

$         4,779

$  4,463

 Accounts payable and accrued expenses

49,809

47,198

45,867

 Accrued compensation and benefits

43,649

43,500

38,060

 Revolving credit facility

3,000

3,000

0

 Current portion of notes payable

28,125

20,812

13,875

 Deferred revenue

2,155

2,585

7,191

 Other current liabilities

8,313

6,812

8,437

 Liabilities related to assets held for sale

1,486

0

0

   Total current liabilities

140,052

128,686

117,893





Notes payable, less current portion and discount

174,198

185,767

200,811

Other long-term liabilities

61,646

62,484

61,575

   Total liabilities

375,896

376,937

380,279





Preferred Stock


24,076

24,388

28,376

Stockholders' equity

135,659

136,077

153,455





Total liabilities and stockholders' equity

$  535,631

$  537,402

$  562,110









AMN Healthcare Services, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)




Three Months Ended

Twelve Months Ended


December 31,

September 30,

December 31,


2011

2010

2011

2011

2010







Net cash provided by operating activities

$  6,513

$  4,849

$  4,881

$  19,312

$  8,089







Net cash used in investing activities

(1,142)

(2,805)

(1,107)

(1,981)

(6,846)







Net cash used in financing activities

(6,070)

(2,240)

(7,087)

(15,300)

(26,449)







Effect of exchange rates on cash

18

2

32

48

36







 Net increase (decrease) in cash and cash equivalents

(681)

(194)

(3,281)

2,079

(25,170)







 Cash and cash equivalents at beginning of period

4,643

2,077

7,924

1,883

27,053







 Cash and cash equivalents at end of period

$  3,962

$  1,883

$  4,643

$  3,962

$  1,883




SOURCE AMN Healthcare Services, Inc.