HC Staffing Firm Posts Triple-Digit Revenue Gains in Q421

Source: Streetwise Reports   02/19/2022

Shares of a health care professional staffing and services company traded 12% higher after the company reported Q4/21 financial results that included a 116% YoY increase in revenue and a 1,149% YoY increase in net income.

Thursday afternoon, health care professional staffing and services company AMN Healthcare Services, Inc. (AMN:NYSE ), announced fourth quarter and full year 2021 financial results for the period ended Dec. 31, 2021.

The firm advised that the overall demand for workforce staffing and ancillary services grew significantly over the course of FY/21 and is continuing into Q1/22 as the health care industry is presently experiencing a record number of job vacancies, high turnover rates, retirements, and changes in worker preferences for increased career and schedule flexibility.

The firm stated that it continues to make investments in its digital platforms in order to improve clinician and client experiences and outcomes and noted that currently more than 100,000 clinicians utilize the AMN Passport app to locate jobs, onboard, and manage work assignments.

AMN Healthcare Services reported that in Q4/21, revenue increased by 116% to $1.363 billion, compared to $631 million in Q4/20.

The company posted net income of $116.2 million, or $2.42 per diluted share in Q4/21, versus net income of $9.3 million, or $0.19 per diluted share in Q4/20.

AMN Healthcare Services’ CEO Susan R. Salka commented, “We are rising to meet urgent needs today while working intensely to evolve, integrate, and provide even more effective total talent solutions for the long term. The severe labor shortages and desire for more flexible career experiences have heightened the need for holistic, multi-faceted workforce solutions for the future. AMN, in alignment with our clients and other organizations, has significantly increased our investments in clinician education, expansion of diversity efforts, and labor management practices to address the resiliency and support the wellness of all caregivers.

“The accelerating nurse shortage has captured nationwide attention, including the essential role of the healthcare staffing industry to enable nurses to quickly mobilize and deliver patient care in all areas of the country. … Our allied staffing business hit an all-time high for travelers on assignment so far in the first quarter, and our locum tenens division saw demand surge by 25% from Q3 to Q4 and continues to be strong entering 2022.”

The company indicated that revenues from its Nurse and Allied Solutions segment in Q4/21 rose by 142% YoY to $1.082 billion. Revenues from its Physician and Leadership Solutions and its Technology and Workforce Solutions segments also showed YoY gains of 47% and 62%, respectively.

For FY/21, the company stated that consolidated revenue increased by 66% to $3.984 billion, compared to $2.394 billion in FY/20.

AMN reported that for FY/21, it earned net income of $327.4 million, or $6.81 per diluted share, versus $70.7 million, or $1.48 per diluted share in FY/20. The company added that adjusted diluted earnings per share came in at $8.03 in FY/21, compared to $3.43 in FY/20.

The company advised that together during Q4/21 and the first part of Q1/22, it has repurchased 726,093 shares of its stock for a total of $71.4 million and noted that its Board of Directors authorized the purchase of an additional $300 million on Feb, 15.

The company offered some forward guidance and stated that for Q1/22 it expects consolidated revenue of $1.475 to $1.515 billion, which represents a 66-71% increase over Q1/20 levels.

The firm stated that it anticipates that revenues from its Nurse and Allied Solutions segment will increase by about 82% YoY in Q1/22. The company added that for Q1/22, it estimates that revenues from its Physician and Leadership Solutions segment will increase by around 18% and Technology and Workforce Solutions segment revenues will increase by around 56%.

The firm added that for Q1/22 it estimates that it will achieve a gross margin of between 31.2% to 31.7% and that it will have an adjusted EBITDA margin of 16.0% to 16.5%.

AMN Healthcare is a provider of healthcare workforce staffing services at hospitals and other healthcare facilities across the U.S. The company, which is based in Dallas, allows acute and non-acute care providers with access to a comprehensive network of quality healthcare professionals.

The firm’s nurse and allied solutions business includes travel and rapid response nurse staffing. The company’s physician and leadership solutions segment includes interim leadership staffing, executive search, and physician permanent placement businesses. In addition, AMN’s technology and workforce solutions segment offers language interpretation services for patients and vendor management, workforce optimization, recruitment, credentialing and flex pool management services.

AMN Healthcare Services has a market cap of around $4.4 billion with approximately 47.28 million shares outstanding and a short interest of about 3.0%. AMN shares opened 11% higher Friday at $103.59 (+$10.30, +11.04%) over Thursday’s $93.29 closing price. The stock traded Friday between $102.18 and $109.73 per share and traded at $104.28 (+$10.99, +11.78%).

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