AMN Healthcare Services, Inc. (NYSE:AMN) Q1 2017 Earnings Conference Call - Final Transcript

May 04, 2017 • 05:00 pm ET

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AMN Healthcare Services, Inc. (NYSE:AMN) Q1 2017 Earnings Conference Call - Final Transcript

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Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the AMN Healthcare First Quarter 2017 Earnings Call. [Operator Instructions] As a reminder, the conference is being recorded.

I'll now turn the meeting over to Neil Thomas, Senior Director of Investor Relations. Please go ahead.

Executive
Neil Thomas

Thank you. Good afternoon, everyone. Welcome to AMN Healthcare's first quarter 2017 earnings calls. A replay of this webcast will be available until May 18 at amnhealthcare.investorroom.com following the conclusion of this call. Details for the audio replay of the conference call can be found in our earnings press release issued this afternoon.

Various remarks we make during this call about future expectations, projections, plans, events or circumstances constitute forward-looking statements. These statements reflect the Company's current beliefs based upon information currently available to it. Our actual results may differ materially from those indicated by these forward-looking statements as a result of various factors, including those identified in our most recent Form 10-K and subsequent filings with the SEC. The Company does not intend to obtain guidance or any forward-looking statements provided today prior to its next earnings release.

This call contains certainly non-GAAP financial information. Information regarding and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release and on the Company's website.

On the call today, are Susan Salka, President and Chief Executive Officer; Brian Scott, Chief Financial Officer; Ralph Henderson, President of Professional Services and Staffing; and Dan white, President of Strategic Workforce Solutions.

I will now turn the call over to Susan.

Executive
Susan Salka

Thank you so much, Neil. Good afternoon, everyone, and welcome to our quarterly earnings conference call. AMN Healthcare set another record for both revenue and profitability performance in the first quarter. Our revenue of $495 million was 6% higher year-over-year and up sequentially, driven by strength in our Travel Nurse and Allied divisions and our Other Workforce Solutions segment.

Our adjusted EBITDA of $63 million was 8% higher than prior year and represented a margin of 12.8%. AMN's strategy to further diversify and add new Workforce Solutions, which have higher growth rates and higher margins are also contributing to this performance. We remain on track with our goal to achieve a 14% adjusted EBITDA margin by 2020.

The macro drivers of a strong economy and aging US population and an aging clinical workforce, combined with continued high attrition creates challenges for healthcare providers. Our Workforce Solutions are aimed at enabling access to the right talent, when and where they are needed, but also to control costs and optimize their spending on labor. These types of services and technology offerings are becoming an increasingly important part of the equation to deliver cost-effective quality patient care. To this point, our Managed Services Programs, vendor management systems and workforce optimization offerings have added several new clients year-to-date and they have robust pipelines for the future. Most of these wins have been in the acute care setting, but we are also starting to add more clients