Quarterly revenue of $857 million;

GAAP EPS of $1.39 and adjusted EPS of $1.64

AMN Healthcare Services, Inc. (NYSE: AMN), the leader and innovator in total talent solutions for healthcare organizations across the United States, today announced its second quarter 2021 financial results. Financial highlights are as follows:

Dollars in millions, except per share amounts.

* See “Non-GAAP Measures” below for a discussion of our use of non-GAAP items and the table entitled “Non-GAAP Reconciliation Tables” for a reconciliation of non-GAAP items.

Business Highlights

• Second quarter financial performance was better than guidance across our reportable segments driven by a strong demand environment and AMN team execution.
• Increased healthcare utilization and a tight labor market have created record high demand in many areas of our business.
• Revenue for the quarter was $857 million, 41% above prior year.
• Operating cash flow in the first half of 2021 was $211 million, up 64% year over year, and our leverage ratio at quarter end was 1.7 to 1.
• Our outsourcing and technology solutions continue to be recognized as industry leading. AMN received the highest ranking for a healthcare MSP in HRO Today's customer satisfaction ratings. Our RPO solution was recognized as a Star Performer by Everest.

“As the leader in our industry, the AMN team continues to amplify our impact and make extraordinary contributions as the healthcare labor market enters a new era of heightened demand and tighter supply. Healthcare organizations are partnering with AMN to build more contemporary, flexible and sustainable staffing models for the future, which will also provide greater access to patient care,” said Susan R. Salka, Chief Executive Officer of AMN Healthcare.

“More than ever, we are collaborating and innovating with our clients and healthcare professionals to improve the health and well-being of patients, and the communities we serve. As always, these efforts begin with our strong commitment to diversity, equity, inclusion and social responsibility,” Ms. Salka said. “We have increased investments in our team and technologies to support and expand our ability to provide total talent solutions that empower healthcare workers and organizations, now and far into the future.”

Second Quarter 2021 Results

Consolidated revenue for the quarter was $857 million, a 41% increase over prior year and 3% lower than prior quarter. Net income was $67 million (7.8% of revenue), or $1.39 per diluted share, compared with $22 million (3.7% of revenue), or $0.47 per diluted share, in the same quarter last year. Adjusted diluted EPS in the second quarter was $1.64 compared with $0.83 in the same quarter of the prior year.

Revenue for the Nurse and Allied Solutions segment was $624 million up 41% year over year and down 5% sequentially. Travel nurse staffing revenue grew 37% year over year, and allied division revenue was up 44% year over year. Revenue cycle solutions revenue grew 9% from prior year.

The Physician and Leadership Solutions segment reported revenue of $139 million, up 28% year over year and down 1% sequentially. Locum tenens revenue was $78 million, up 26% year over year and down 10% sequentially. Year-over-year growth in locums was driven by stronger days filled, while the sequential comparison saw a 2% decrease in days filled as most pandemic-related work ended in the first quarter. Interim leadership revenue was higher by 30% year over year and 13% sequentially. Our physician and leadership search businesses had revenue growth of 33% year over year and 12% sequentially.

Technology and Workforce Solutions segment revenue was $94 million, an increase of 70% year over year. Language services produced $46 million revenue in the quarter, up 61% over prior year. Vendor management systems revenue was $31 million growing by 76% year over year.

Consolidated gross margin was 32.7%, 20 basis points higher year over year and up 10 basis points sequentially. Gross margin improved year over year and sequentially due primarily to a higher mix of Technology and Workforce Solutions revenue.

Consolidated SG&A expenses were $157 million, or 18.3% of revenue, compared with $137 million, or 22.5% of revenue, in the same quarter last year. SG&A was $161 million, or 18.2% of revenue, in the previous quarter. The year-over-year increase in SG&A costs was driven primarily by higher employee and related expenses to support strong revenue growth. SG&A margin declined due to operating leverage on increased revenue.

Income from operations was $99 million with an operating margin of 11.6%, compared with $38 million and 6.3%, respectively, in the same quarter last year. Adjusted EBITDA was $134 million, a year-over-year increase of 66%. Adjusted EBITDA margin was 15.6%, representing an increase of 240 basis points year over year.

At June 30, 2021, cash and cash equivalents totaled $139 million. Cash flow from operations was $171 million for the quarter, and capital expenditures were $11 million. The Company ended the quarter with total debt outstanding of $850 million and a leverage ratio of 1.7 to 1 as defined under our credit agreement.

*Note: Guidance percentage metrics are approximate. For a reconciliation of adjusted EBITDA margin, see the table entitled “Reconciliation of Guidance Operating Margin to Guidance Adjusted EBITDA Margin” below.

Revenue in the third quarter of 2021 is expected to be 40-43% higher than prior year. Nurse and Allied Solutions segment revenue is expected to grow approximately 45% year over year. For the Physician and Leadership Solutions segment, revenue is expected to be 25-27% higher than prior year. Technology and Workforce Solutions segment revenue is expected to grow by 44-48% compared with the year-ago period. Revenue guidance includes approximately $20 million from labor disruption-related activities.

Third quarter estimates for certain other financial items include depreciation of $10 million, non-cash amortization expense of $16 million, stock-based compensation expense of $3.5 million, interest expense of $10 million, integration and other expenses of $3 million, and an adjusted tax rate of 28%.

Conference Call on August 5, 2021

AMN Healthcare Services, Inc. (NYSE: AMN), the leader and innovator in total talent solutions for healthcare, will host a conference call to discuss its second quarter 2021 financial results and outlook on Thursday, August 5, 2021 at 5:00 p.m. Eastern Time. A live webcast of the call can be accessed through AMN Healthcare’s website at http://ir.amnhealthcare.com. 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 (833) 968-2219 in the U.S. or +1 778-560-2894 internationally and using passcode 5688436. Following the conclusion of the call, a replay of the webcast will be available at the Company’s website. Alternatively, a telephonic replay of the call will be available beginning at 8:00 p.m. Eastern Time on August 5, 2021 and can be accessed until 11:59 p.m. Eastern Time on August 19, 2021 by calling (800) 585-8367 in the U.S. or +1 416-621-4642 internationally, with access code 5688436.

About AMN Healthcare

AMN Healthcare is the leader and innovator in total talent solutions for healthcare organizations across the nation. The Company provides 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 Healthcare helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN total talent solutions include managed services programs, clinical and interim healthcare leaders, temporary staffing, executive search solutions, vendor management systems, recruitment process outsourcing, predictive modeling, language services, revenue cycle solutions, credentialing, and other services. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, schools and many other healthcare settings. AMN Healthcare 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.

The Company’s common stock is listed on the New York Stock Exchange under the symbol “AMN.” For more information about AMN Healthcare, visit www.amnhealthcare.com, where the Company posts news releases, investor presentations, webcasts, SEC filings and other material information. The Company also utilizes email alerts and Really Simple Syndication (“RSS”) as routine channels to supplement distribution of this information. To register for email alerts and RSS, visit http://ir.amnhealthcare.com.

Non-GAAP Measures

This earnings release and the non-GAAP reconciliation tables included with the earnings release contain certain non-GAAP financial information, which the Company provides as additional information, and not as an alternative, to the Company’s condensed consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures include (1) adjusted EBITDA, (2) adjusted EBITDA margin, (3) adjusted net income and (4) adjusted diluted EPS. The Company provides such non-GAAP financial measures because management believes that they are useful to both management and investors as a supplement, and not as a substitute, when evaluating the Company’s operating performance. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted diluted EPS serve as industry-wide financial measures. The Company uses adjusted EBITDA for making financial decisions, allocating resources and for determining certain incentive compensation objectives. The non-GAAP measures in this release are not in accordance with, or an alternative to, GAAP measures and may be different from non-GAAP measures, or may be calculated differently than other similarly titled non-GAAP measures, reported by other companies. They should not be used in isolation to evaluate the Company’s performance. A reconciliation of non-GAAP measures identified in this release, along with further detail about the use and limitations of certain of these non-GAAP measures, may be found below in the table entitled “Non-GAAP Reconciliation Tables” under the caption entitled “Reconciliation of Non-GAAP Items” and the footnotes thereto or on the Company’s website at https://ir.amnhealthcare.com/financials/quarterly-results/default.aspx. Additionally, from time to time, additional information regarding non-GAAP financial measures, including pro forma measures, may be made available on the Company’s website.

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 impact and contributions of the AMN team, healthcare utilization, the competitive and strained labor market, current demand drivers, healthcare organizations' need for different staffing models, the impact of mandatory vaccination requirements on demand and supply, third quarter 2021 revenue projections for our travel nurse and allied businesses and each of our Nurse and Allied Solutions, Physician and Leadership Solutions and Technology and Workforce Solutions segments, and our third quarter 2021 guidance for consolidated revenue, gross margin, operating margin, SG&A as a percent of revenue, adjusted EBITDA margin, depreciation expense, non-cash amortization expense, stock-based compensation expense, interest expense, integration and other expenses, and adjusted tax rate. The Company bases these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are also identified by words such as “believe,” "project," “anticipate,” “expect,” “intend,” “plan,” “will,” “may,” “estimates,” variations of such words 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.

The targets and expectations noted in this release depend upon, among other factors, (i) the magnitude and duration of the effects of the COVID-19 pandemic on demand and supply trends, our business, its financial condition and our results of operations, (ii) our ability to effectively address client demand by attracting and placing nurses and other clinicians, (iii) our ability to recruit and retain sufficient quality healthcare professionals at reasonable costs, (iv) our ability to anticipate and quickly respond to changing marketplace conditions, such as alternative modes of healthcare delivery, reimbursement, or client needs and requirements, including mandatory vaccination, (v) our ability to manage the pricing impact that the COVID-19 pandemic and consolidation of healthcare delivery organizations may have on our business, (vi) the duration of the period that hospitals and other healthcare entities adjust their utilization of temporary employees, physicians, leaders and other workforce technology applications as a result of the suspension of or restrictions placed on non-essential and elective healthcare as a result of the COVID-19 pandemic, (vii) the duration of the period that individuals may continue to forego non-essential and elective healthcare as “safer at home” restrictions and recommendations lift, (viii) our ability to develop and evolve our current technology offerings and capabilities and implement new infrastructure and technology systems to optimize our operating results and manage our business effectively, (ix) our ability to comply with extensive and complex federal and state laws and regulations related to the conduct of our operations, costs and payment for services and payment for referrals as well as laws regarding employment practices, (x) our ability to consummate and effectively incorporate acquisitions into our business, (xi) the extent to which “shelter-in-place” orders, quarantines and restrictions on travel and mass gatherings that were ordered earlier in the year to slow the spread of the COVID-19 virus may be reinstituted as infection rates continue to climb in many parts of the country, (xii) the extent and duration of the period that a significant spike in unemployment that has resulted from the COVID-19 pandemic will cause an increase in under- and uninsured patients and a corresponding reduction in overall healthcare utilization and demand for our services, (xiii) the extent to which the COVID-19 pandemic may disrupt our operations due to the unavailability of our employees or healthcare professionals due to illness, risk of illness, quarantines, travel restrictions, mandatory vaccination requirements, or other factors that limit our existing or potential workforce and pool of candidates, and (xiv) the severity and duration of the impact the COVID-19 pandemic has on the financial condition and cash flow of many hospitals and healthcare systems such that it impairs their ability to make payments to us, timely or otherwise, for services rendered.

For a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above that could cause actual results to differ from those implied by the forward-looking statements contained in this press release, please refer to our most recent Annual Report on Form 10-K for the year ended December 31, 2020. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated and the Company is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

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