AMN Healthcare Investor Presentation

Transcription

1 AMN Healthcare Investor Presentation Q The Innovator in Healthcare Workforce Solutions and Staffing Services

2 Forward-Looking Statements This investor presentation 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. The Company bases these forward-looking statements on its current beliefs, expectations, estimates, forecasts and projections about future events and the industry in which it operates. Forwardlooking statements are identified by words such as believe, anticipate, expect, intend, plan, will, should, would, project, may, variations of such words and other similar expressions. In addition, statements that refer to performance; plans, objectives and strategies for future operations; and other characterizations of future events or circumstances, are forwardlooking statements. The Company s actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Factors that could cause actual results to differ from those discussed in or implied by the forward-looking statements contained in this presentation are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 and its quarterly and other periodic reports, its current reports and its other filings with the SEC. Developments subsequent to this presentation are likely to cause these statements to become outdated with the passage of time. This presentation was first made publicly available at on September 8,

3 Key Investor Highlights Market leader in healthcare staffing and physician search Innovator in healthcare workforce solutions: MSP, VMS, RPO, Consulting Successfully completed majority of integration activities: Onward Healthcare, Locum Leaders, Medefis, Avantas Strong demand environment; doubledigit organic revenue growth Long-term growth supported by aging population, clinical labor shortage Scalable, efficient operating model Strong cash flow and balance sheet 3

4 AMN Integrated Solutions Drive Workforce Optimization Workforce Optimization Workforce planning Predictive analytics & forecasting Workforce Solutions & Technology Managed Services (MSP) Vendor Management Systems (VMS) Recruitment Process Outsourcing (RPO) Enterprise scheduling 4 Recruitment & Staffing Services Nurse & Allied Staffing Locum Tenens Physician Permanent Placement Healthcare Executive Search

5 AMN Staffing and Recruitment Offerings Nurse and Allied Staffing Locum Tenens Physician Placement Travel staffing Local staffing MSP, VMS, RPO, EMR staffing Workforce consulting Temporary physician staffing Dentistry staffing MSP, VMS, Locums Billing Retained physician search Contingent search All nursing specialties Physical therapists, respiratory, imaging, lab technologists Pharmacists and techs All physician specialties Advanced practice specialties All physician specialties Healthcare executive search Research & surveys 68% of revenues 28% of revenues 4% of revenues 5 Source: Revenue mix is Q2 2015; earnings release

6 Recent Acquisitions Expanding Workforce Solutions Leading provider of workforce consulting, labor optimization & planning, data analytics, predictive modeling, scheduling technology Leading provider of vendor management system technology Bolstering Staffing Capabilities Premier national travel nurse and allied staffing company Well-respected national locum tenens staffing company 6

7 Market Overview U.S. Temporary Healthcare Staffing Demand Drivers Increased healthcare utilization $12 billion 2016P Shortage of clinician & physicians Adoption of outsourced solutions Aging population & medical advances Other Addressable Markets: (Perm Placement, RPO, Workforce Consulting, VMS) ~$2 billion New emerging clinical roles Growth in GDP & employment rate 7 Source: US Staffing Industry Forecast, Staffing Industry Analysts, April Internal estimates

8 Growth in Healthcare Employment 5 Million More Healthcare Jobs 2012: 17 million 2022: 22 million Fast Growing Healthcare Jobs 38% 36% 34% 19% 18% Physician Assistants Physical Therapists Nurse Practitioners Registered Nurses Physicians Source: Bureau of Labor Statistics, December 2013; BLS Occupational Outlook Handbook January 2014; Job growth is projected from 2012 to

9 Drivers of Healthcare Employment Growth Healthcare Reform Aging Healthcare Professionals 16.9 million more insured $7.4 billion less uncompensated care ~ 50% of RNs and physicians are age 50+ Wave of Baby Boomer retirements coming Annual Growth in Healthcare Spend Aging Population and Healthcare Utilization 5.6% 5.6% 6.0% 6.0% 40 U.S. population aged 65+ in millions 72 Over 65-3x more hospital stays Over 75-4x more hospital stays 3.6% 3.6% P P Source: U.S. Department of Health and Human Services Source: As of February 2015, 16.9 million adults have gained insurance coverage since 2010 due to ACA provisions, Health Affairs/RAND Health study, A.J. Rice, UBS analyst report, May 15, US Department HHS March 23, National Council of State Boards of Nursing and The Forum of State Nursing Workforce Centers 2013 data. AMA Physician Master File and 2012 Physicians Foundation Survey conducted by Merritt Hawkins 2012 data. National Health Expenditure Projections CMS, October

10 Emerging Talent Shortage % reporting somewhat or very difficult to recruit the following healthcare professionals: % reporting moderate or serious shortage of the following healthcare professionals: 70% 78% 67% 40% 36% 32% 51% 43% Physicians Nurses NPs/PAs Allied Physicians Nurses NPs/PAs Allied Average vacancy rate at your facility for the following healthcare professionals: Projected healthcare labor shortage in % 17% 15% 13% Physicians Nurses NPs/PAs Allied 90,400 physician shortage Regional & specialty nurse shortages Source: AMN Healthcare 2013 Clinical Workforce Survey of Hospital Leaders; Association of American Medical Colleges, March 2015; Future of the Nursing Workforce, Health Resources and Services Administration December

11 Leader in Managed Services Programs (MSP) Outsourced partner to manage all supplemental workforce needs under one client contract Recruitment, credentialing, clinical support, reporting, consolidated invoicing Fill rates Clinician quality Efficiency Staffing optimization Controlled spend Accountability 500+ affiliates $600 Million+ Annualized MSP Spend Under Management 11

12 Leader in Vendor Management Systems (VMS) Fill rates Clinician quality Efficiency Staffing optimization Controlled spend Automates temporary and float pool staffing through online order and fulfillment, scheduling, credential tracking, time keeping, reporting, invoicing $600 Million+ Annualized VMS Spend Under Management 12

13 Leader in Recruitment Process Outsourcing (RPO) Outsourced partner to manage all recruitment, hiring, and on-boarding processes for clinician permanent positions Recruitment savings & productivity State-of-the-art sourcing Fewer bad hires & lost candidates Variable cost, flexible delivery model Better decision making through data & insights 13

14 Leader in Workforce Optimization: Predictive Analytics & Forecasting 25% Nurse labor spend % of budget Typical savings: 4% to 7% of nurse labor spend Workforce predictive analytics Scheduling technology & tools Business intelligence Centralized resource management Operational review 14

15 Diverse Client Base AMN knows the national landscape. They know what s out there and what the trends are. They bring that valuable information to us so that we can better plan as partners. - Chief Nursing Officer, Large Integrated Health System & AMN MSP Client 15

16 10% Adjusted EBITDA Margin Target Growth in Revenue & Adj. EBITDA Margin $1.222 B $887 M 7.2% $954 M 7.7% $1.012 B 8.4% $1.036 B 8.8% 9.8% Drivers Workforce solutions growth & penetration Operating leverage Gross margin improvement LTM Q

17 Financial Highlights Financial Metric Q Variance to Q Variance to Q Revenue $ % 7% Gross profit $ % 9% Gross margin 31.4% 60 bps 40 bps Selling, general and administrative $ % 4% Adjusted EBITDA $ % 18% Adjusted EBITDA margin 11.2% 190 bps 100 bps Diluted EPS $ % 28% Adjusted diluted EPS $ % 27% $ in millions, except per share amounts Source: Earnings release. Please also refer to Financial Reconciliation of non-gaap metrics at 17

18 Financial Highlights Balance Sheet Items 6/30/15 Cash and cash equivalents $14 Accounts receivable, net $230 Working capital $112 Total assets $826 Total debt outstanding $226 Stockholders equity $288 Balance Sheet Metrics 6/30/15 Working capital ratio 1.5 Leverage ratio 1.9 Cash Flow Metrics Q Operating cash flow $25 Capex $8 Source: Earnings release, earnings call $ in millions 18

19 Outlook Financial Metric Q Revenue $360 to $365 million ~ 37% yoy Gross margin 31.0% to 31.5% SG&A expenses* ~ 22.0% Adjusted EBITDA margin 10.0% to 10.5% Interest expense $2.0 million Financial Metric 2015 Capital expenditures ~ $25 million Effective tax rate 44% Diluted share count 48.8 million * SG&A expenses included approximately $0.7 million of acquisition and integration costs Source: Earnings release and earnings call on August 4, Guidance is not being updated or reaffirmed, and AHS does not intend to update guidance prior to its next quarterly earnings release and earnings call. 19

20 Thank You The Innovator in Healthcare Workforce Solutions and Staffing Services