AMN - Earnings call transcript Q2 2019 | AMN Healthcare Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to AMN Healthcare's Second Quarter 2019 Earnings Call. [Operator Instructions] And as a reminder, today's call is being recorded.

I would now like to turn the call to our host Randle Reece, Director of Investor Relations. Please go ahead.

Randle Reece

Good afternoon, everyone. Second Earnings Healthcare's AMN to Quarter Call. XXXX Welcome will until conclusion August replay this of at available webcast this the The XX be amnhealthcare.investorroom.com call. of following

conference earnings Details are of audio for the the in issued release our this afternoon. replay call

call during events constitute we statements. expectations, circumstances future this remarks projections, about Various forward-looking make plans, or

reflect statements it. beliefs current information upon These based company's the to currently available

today in factors, statements differ most identified actual GAAP those and forward-looking not on does certain measures result in these from This the provided non-GAAP XX-K release statements information. forward-looking measures may Form SEC. next our the earnings reconciliations subsequent to call our or update guidance non-GAAP directly these materially most at with as results including of are of earnings and to contains page amnhealthcare.investorroom.com. included comparable various Our by release. indicated a Information prior intend our its financial the regarding to any those company reports recent financial and filings The

Dan Solutions. call Susan of Financial Leadership President Salka, Chief Officer; Scott, President Brian Rakowski, Staffing; Kelly Workforce Officer; Search; are the and and Services Ralph of Henderson, and today Professional Chief President Executive On White, of

I'll the over now turn to Susan. call

Susan Salka

much, so Randy. you Thank

and As the performance across to the we second all positive share by we head being team regarding half pleased members AMN's into impact year, are good you very the of the the news our country. with made

excited early the in driven from although strength of meet Advanced several AMN acquisition expectations and financial also our Our joined the about contributions mid-June. who Nurse in our results exceeded the Allied, and family latest for we're by our Medical, guidance businesses quarter, back

AMN all wonderful of delivering this to and clients seeing Advanced markets even a Advance across the their they of paid are at We expanding job team is the doing serve. union off the stage, business early and

the exceed are well solutions or to the upcoming school for to year. poised perform achieve growth therapy continue we very co-based and expected Their

and during MSPs, has team high this Nurse the infusion clients Travel addition, recruiters their In to with of serve the coupled orders AMN help these AMN time of highly from demand. capable and Allied enabled

This was for Advanced on the team. expertise bring ideal the of time to AMN an

their by I enthusiasm for addition have been our a and harnessing very impact. In service resources impressed and performance, to to their inspired community greater positive make

several market we environment very today, for increasing are business Demand think signs need of our optimistic. expertise. of our AMN's in about across cases, we As is strong most showing and

demand even Competition was for skilled staffing is clinical it all our higher of last the quarter than across talent and nearly is intense divisions.

Turnover and clinicians tension workload. frustrated as health the throughout many labor record are care at and to asked cover continues being vacancies by higher-than-usual remains levels

increasing Workforce to and complexity enhance capabilities. in AMN for drives and our managing pushes care Consolidation Solutions more comprehensive labor health demand continuously

new clients visible in have and where successful need is and had revenue to business, staffing as we double-digit seen AMN's This our than we MSP-related workforce significant growth. relationships. win The track as continue we for existing capabilities, is stronger most have optimization with delivery of record another and expand ever well quarter outsourced

and We maturity. expanded to MSP of spend under growth million assigned this year, new nearly management add several which $XXX we expect annualized contracts at

Now results our let's outlook. latest review and

$XXX record. of revenue consolidated quarter our Second million on highest was second

$XX Gross or revenue. adjusted million, XX.X% was EBITDA margin of XX.X% was and

than of revenue revenue to Our $XXX higher better labor flat from the due year-over-year, $X million, and which guidance was Advanced Nurse acquisition. a and Allied segment posted disruption million

a year-over-year grew basis. an Staffing flat year-over-year X% our business on by relatively bill basis. rates was Travel Nurse Growth organic with the largest driven volume Revenue for average on

assignments, our clients, have seasonal party. the begun MSP needs all year. third share early clients, receive And Nurses first is to types higher Travel that our in for quarters. since more and fact XX% is to in of continue the May. direct Demand winter Today, for prior we we is than Nurse for to our grow last demand than confidence including starting in Adding the fourth performance the growth and the Travel

future their In to indicating year. those or contingent last cases, staffing are needs clients greater in be will the as same than close

also candidates. attract to for the we that which This allows day and positive with convert prior we us As good movement some sign revenue a to demand in rates look see increase to our forward year. the are levels third beginning of per is to quarter, pricing very improve making above are way pricing, to pay expected higher be

the as even strong growth exceptionally on firing we revenue see in organic and in the X% cylinders this remained team quarter. comps tougher to quarter, are got staffing second second Allied all is really excited

increase respiratory in which The this the slightly specialties, needs in very continuing division. since very solid is talent the emerging therapy. helpful of greatest and in availability more than received Client robust and is laboratory we growth is accessible this are

Nurse of digits. the the Allied revenues organic growth look year-over-year, to for to with up quarter full Advanced the and expect the to we from we in quarter addition As a be third XX% XX% segment, including mid-single

steady Tenens the revenue and our technology line progress was after expectations Locum second in with below although year, continue million, at quarter we In to changes. our prior still $XX segment, make process

our a the and in contributed hiring had to weeks our newer fact training XX% we is gone levels staff recruiters year productivity programs and activity ago. placement and nearly that new in tenured well, have Our recent reaching

slightly Tenens' which third to revenue in the looks improving result sequentially, flat ramp would For to be Locum an comparison. quarter, year-over-year up

fourth by mid that year-over-year late quarter. believe We Locum's revenue hit will growth to

in Second our quarter showing and X%. million, of Other year-over-year $XXX growth was segment Workforce Solutions revenue

which Search this solutions, half placement segment's of up is and and division, makes permanent interim about of Leadership comprised leadership Our revenue.

sequentially. the collective group the revenue This business elevating grew our year-over-year this that's have and have approach the and with they in a momentum about X% and X% team We're conversations strategic excited clients. that

and brands other our and businesses. is our progressing new with very Within and our MedPartners go-to-market the with Peak integration cycle nicely impressed I'm business, mid-revenue collaboration strategy of their

Although also and VMS year-over-year, lower quarter are year. of of still Avantas the Other with had as the the businesses, trends growth there which we second our more into favorable head remainder includes growth revenue Workforce a expectations continued solid third quarter. is to Solutions,

the is Solutions up In expected to Other quarter, Workforce with the total segment X% be in third businesses. revenue year-over-year, approximately for growth most

and our health into for for have AMN thank their impact. helping I the Brian, and The every call day. quality their a a our positive single like they reason and talents is the to patients clients I'd Before of the passion over people, biggest success professionals, making poured turn corporate moment team thousand to who members care to hearts of take their our and

support community trip example great kind consecutive our to seventh our and that soon medical impact and for and the with be A AMN-sponsored upcoming nurses is Guatemala, mission clients other the this smoke-free areas and our water of schools I'll joining an make we most doctors, is filters care year medical install and clinicians can to country. of poorest members stalls in and provide local team the

difference. ways During This together, we will strives be to is others many and make a our week to and to Guatemalan use help of our fortunate the resources to families. one X,XXX AMN serve just that over patients

turn Kelly, for and the update, session. I'll after join Ralph us will Brian Dan our which, Q&A call Now for over the financial to

Brian Scott

The high segment. second of everyone. down Thank the year-over-year. driver in and performance end quarter upside $XXX up was Nurse revenue guidance the sequentially range. of our you, was X% our came company Allied X% above higher-than-expected Susan, of biggest and good million afternoon, The from this and Revenue

than at XX.X%, our the guidance for with and was prior the year last from up points consistent better quarter margin basis quarter. Gross points basis XXX XX

was shift. in and The segment, favorable result the increase year-over-year Other increased mix of Solutions a margins Workforce Allied segment the with along Nurse and

segment and Nurse with down million, $XXX the sequentially was revenue and X% to year Allied typical flat seasonality. quarter Second due prior

our which basis The quarter prior quarter. million labor prior was difficult a disruption outperformance. of million event, labor better biggest included the XXX Allied The event, year down from points $XX basis and $X than points disruption a or was included XX XX.X% year-over-year comparison. year, gross margin of prior an Nurse creating the driver

of the this partly labor from costs. was disruption higher increase year-over-year by offset a health The insurance combination a higher year, margin

margin sequentially adjustment about in from Segment with was also included insurance XX.X%, margin The higher EBITDA basis favorable a reserve benefit down malpractice from points SG&A. costs. XXX the was

Second $XX quarter XX% less a basis. sequential Tenens the on X% million up was was revenue and Locum than prior year

Gross margin quarter. consistent expect quarter, was we XX.X% third prior of a with and in the similar margin

X.X% in the on of was expect favorable X% future our margin margin to EBITDA more we to range X% Segment revenue leverage gain actuarial run part until growth. due and in adjustment, a operating to above we expectation,

up Second Workforce was X% sequentially. Solutions million X% higher revenue $XXX year-over-year, quarter was segment Other and

favorable a segment, improved XXX margin our business. XXX basis within due XX% interim and of shift mix to sequentially, from gross by Segment and basis points in higher points the year-over-year margin an leadership business was

down million XX points EBITDA basis, On a though second was XX.X% basis was sequentially. X% $XX up consolidated EBITDA year-over-year. quarter Adjusted margin year-over-year, adjusted by basis points XX lower of of

The margins margin higher on labor previously malpractice and in was disruption quarter impacted the reserve by noted favorably revenue.

reserve partly health trust. clinician commission and higher benefits were These labor offset increases, certain costs and by accrual insurance bonus

was in was of year for the with with earnings quarter. consolidated a our per and of $XX in share approximately for items the quarter Adjusting line share per net second Adjusted We in million guidance of quarter. income margin these compared $X.XX $X.XX XX%. the diluted ago reported earnings $X.XX

during tax adjusted was quarter was the an basis. XX% income and on Our GAAP XX%

Our tax fourth expected in the XX% rate third is and quarters. to be

the for days. operations end XX was but excluding was the have quarter. at Advanced XX provided outstanding sales million acquisition would days, from quarter been $XX Cash Day

totaled to ratio the our million. end, and our debt $X At outstanding quarter was $XX June leverage equivalents quarter $XXX Capital for and million million was XX, at were cash X.Xx total X. expenditures second

turn company $XXX revenue the X% approximately expects let's million consolidated guidance. XXXX $XXX to Now year-over-year. quarter The of million, to of up third

the will Advanced consolidated revenue Excluding flat acquisition, of the X%. impact up to be

fourth labor in Gross does approximately be decline disruption guidance mainly of Advanced quarter. the the with not to acquisition. impact margin sequential the material projected XX%, the assume events for is This quarter any

revenue expected to be XX.X%, approximately margin as percentage XX%. a expenses of EBITDA SG&A be approximately are to expected adjusted

XX.X and count For be include shares. $X extraordinary of expense interest the to estimates expenses million, amortization $X.X million of other share expense XXXX and $X.X about million of depreciation expected stock-based following: $X.X $X.X integration, acquisition, the The of million, third expense is million. compensation expense of million, quarter

we And for open to call the questions. like would

Operator

[Operator Instructions] Plagman question Jason our [Jefferies And from and first Company]. comes

Jason Plagman

seen more on just season? your I with on largest on guess, So first wondering was bit, normalize that's just color you've headwind growth QX and little provide then color I any also your side, clients, you winter can one, it's the impacting your a how of outlook if that level trends for the

Ralph Henderson

probably news over cut some look decrease gosh forward, Winter see of to X have winter and needs is probably handle needs would volume also, did Ralph quarter though quarter. we XX% or comes those on QX. better in improvement QX sequential about material client. keep one the has add neighborhood been $XX that this talked And second the they next by can year-over-year, that we less in million with down that it. where or the with Jason, favorable when winter the from That covering we're We Dan Yes, is I'll with than have and Susan a decrease, end. although QX then the it decrease. QX a it's that the lot client it in not did slightly of second impact to as looking in and the quarter at XX% We

positive Nurse other that's business. client that, business The continues just and to of other Travel of impacting our there in the kind areas the really grow news is

them as response considerable rapid our seeing well we're growth as So business. in business our our Locum's from Allied,

Jason Plagman

the Great. all as That's MSP but activity in then the the looking commentary helpful. as And the in marketplace, you've last that in systems what wins activity seen in just far you're any to any change in I health quarter, that all, noticed since on quarter, in seeing quarter?

Dan White

terrific of Jason, this marketplace. actually really a lots in see the activity We Dan. is

$XXX the us contracts puts of last nice as programs and worked kinds specialty rest a over the well. and $XX business, of in which activity call nearly and also our at year-to-date. saw in of our mix shows also since for spend for million programs Geographic in mix million of are Susan VMS wins line nice mentioned, Our million programs. just our lot We those it very are as an with those $XX additional gross

the the activity year pipeline, end team. fact in this going programs, over on currently So year also if little million factor our a where you contracting we are and of in last versus in I really have that to sales good in that productivity feel about $XXX we're our really

Operator

Sommer Now to line of Tobey [SunTrust]

Susan Salka

to Maybe we Tobey. back circle can

Operator

line [Credit of Rice A.J. Suisse] the to Now

A.J. Rice

of It the through about the know not maybe you're slot changing premium to or and pass talked ask to that seeing? you that to needed employees incremental with little system get but willing about with think last for the of meet are pretty need that, all for like to some that saying to much you return a of we've being you few the demand person at quarters, we as full-time rates are first raise I seeing base, some get dynamics sounds them. over maybe bonus the you terms you're anniversary the rates situations where getting in the pay customer increase as bit hospital Just and a to fill to

Ralph Henderson

I'll is this A.J. start one. that on Ralph

into we increase market. the to quarters significant respectively, starting for to to clients saved hire business are pricing market percentage a get but To we the about requisition Nurse to in Travel are today's range to X% X difficult normally QX. staff, of we seeing of of are I an see in at their XX% some increasing after attached as in bonus would see increases you anything point, sense our think time, internal with gives yes, ones of not pricing be some line We're right. signing yet, so about have July. the interned starting that it. how is of The we it decreases, X% enter range as own saw to It's probably you higher You're bonus that historically, we

side help think of bring us marketplace numbers traveller our So XX% that fulfillment and on we've up the that back to will more that to before supply will I the the about talked goes recoup and this too. help

A.J. Rice

start technology potential and in in I growth that and out and quarters, And good demand of is a certain up performance build or growth around guess, both you there's show growth long-term discussion heard I where anniversaring then you fourth business. for say little would doing the your X upgrades to a upgrades maybe from you and bit. you have that picked, other these those then the to at able were issues, about last pipeline more like, sounds and business. if of the on of little in production might you've the It in be moving been again, depressed I the question want inside others those been my of specialties Locum you're have that's had few right there's flesh drivers year-to-year a quarters? been second, a where Tenens about discussion next some the technological saying, think confirm to quarter but you also in few to maybe maybe and

Ralph Henderson

that on start, This and I'll is again, Ralph, one.

being their and us. perfect as be process the and those room feels not changes that perform are Demand people specialties not specialties in and high getting result fill and improve subs still we'd to the I'm hospitals are are pretty surgery, to but a our right. core by business You're rates so in us we to good anesthesiology. significantly, yet, distracted jobs, emergency back aren't probably they beginning the and like is The specialties is well where in are like in to of for the technology

there. to beeped growth are capabilities where those use and stronger, and seeing beginning tools fill We rates technology we're that stronger areas new our in off them in rates

XX% third production, maybe their of our recruiters, new and ramping and easier production to in they're about quarter, getting QX, was -- to which are in they is SG&A make I begin make which in get into well the a of up the able beginning of that. so over There us. to QX up nicely. The going could and we learn last more first sequential new of for item XX% towards and our tool the we they're before growth so say that's Yes, -- of actually time on career up happening end we're of looking in about forward actually in producing more robust a we revenue as anticipate continue to start prior was produce to Our to do QX, year we talked But forward after back it. third-party growth looking a faster there. get the to part then a quarter cash that and

Operator

line the Sam to Now of England.

move we'll to [R.W. Now along of Marcon line the Mark Baird]

Mark Marcon

you little are color getting can or up if there. you turning the in ended anticipate the wondering the remind a much coming winter like how much in little I'm of and you about might things terms you Sounds bit strike and can also compare exactly how a us talk quarters up. the this bit quarter revenue orders what was

Brian Scott

second the take question first. I'll Mark, of part the

we As but little We had was them total, one million in over most in $X material gave anticipated the last some about that I occur a when had to we we quarter $XX mentioned, the had million. that was of of guidance. in

that of event. little and So Last best a X we over was million the were was the year, major majority the part. $XX

So the, this did think, quarter, down that it we're as but kind still year-over-year I although we help covers expected. of

Ralph Henderson

of year. early clients dozen this actually don't haven't the at our some do bit things their of insight West from as with see is orders, about probably our large Ralph, they're orders this orders here have a a line so of placed quite Winter point so could change on yet that we're from call and or improve to any we in last We winter have beginning year. and very Coast. it now, customers, where some are needs to the we're right larger it's just to particularly and

early no but to little news a there there. call, So bad is

Mark Marcon

Okay, wide and talk like that regards one and being with how good. more is orders roughly capturing the with you up it's robust difficulties spread around regards And also fulfilling orders sounds can the even the potentially then growth? to to about revenue XX%, of

Susan Salka

from in is jump is they're of because in want and Kelly I'll from demand and from search, assignments claims in there Susan, want which support businesses. and X for very way Mark, client this we X XX% which dispersed, sign over strong. up and regards is to the we a just and Ralph give also with about and some It being rates, just fact seeing our to business, the that e-book move but make up nice, really break the in help are that also facilities in be really Nurse continues then Nurse is in our geographically all statement orders our very across or XX% over of very where that those Allied to can leadership candidates good those And marketplace. area coming also in potential healthy to orders Allied, which another board

clients MSP their on should we very there for our be which rates. is sure rates making overall meet focused some fill expectations fill certainly be can in us, of highest Now the we're

really we significantly, And that selling so we those, know third-party, opportunity in our market that clients but increase. with AMN us rather even we're sure thrilled to to tells the our a really broad really an make see it's part orders have direct story, just it's not up to which doing MSP we're but the

you as business Kelly insight share maybe ask that, bit to well. leadership little on with the a So I'll more

Kelly Rakowski

X growth increase. our we're on the what much search in accordance leadership our be happy positions, executive and clinical we double-digit the continuing seeing we're quarter we're the that. that and well. seeing across see demand to And we I very the to, in experienced sequential start continues our volume that physician our think, board, on needs, PO clinical of as seeing to similar really at all and across I'll side, past demand concentrated very interim and interim really leadership board placement same entry business our well with side, Yes, for management perm, the the some And see in as in permanent quarter as this trends that's demands nice highly the are

think of level I our sales leverage well the that needs really and out we across meeting higher different and the of comprehensively. together, brought our and cross-selling of getting our market the country, more focus client as search and reflective clients accounts as more capabilities

well. those by So trends very encouraged as

Ralph Henderson

are Mark, this movement constrains clinicians we certainly of Ralph the demand kind about overall rates in improving slight slightly interesting on an higher are last what It's MSP, helping. talked quarter demand, is phenomenon. supply higher in bill

actual up down. on year-over-year basis, leads are applications a Our our but are

bit now. They're So gets the sitting a they're point on at jobs opportunities. not people but yet active over, they're people looking those little more trigger it right in probably looking at opportunities,

Operator

Henry to Now Instructions] [Operator the line Chien. of

Unidentified Analyst

about you see carriers, that we've of down reimbursement I maybe so wanted what some comment on was wondering if if impact insurance if could coming rates the with just to pricing ask on about just do hearing been sort a I of from stuff kind environment, you kind and could? you of bit the general any that

Ralph Henderson

this Yes, Ralph. is

was patient lingering been politics But bit things, maybe X very the concerns don't actually I of X right they're our the quarterly important in has it's our a some in volume very, think is hearing that a it reimbursement note in of think and for than we're course, we're about think, from our is actually and just troubling changes, last but going clients moving or confident not front their now. but is to then that Just I and market, What hearing we're reviews we're the little to now it's them tone on right everyone, through getting quarters. quieter clients. probably I

just as them internally but they we quickly can with those applicants have the so we're actually they're that rates help? of Does yet. what through And will fill several that but excites us, bill with float open completely order is I partway on and steps won't they Are quite then first, they now, starting rate actually steps not increasing not and sort think the through to we the on bill constraint increases see it move

Operator

Instructions] [Operator line to Now [SunTrust]. of Tobey the Sommer

Q - Tobey Sommer

pricing you what comment better dynamic bill on maybe that you're well on looking plays as and interplay rates sort it? forward average, between seeing Could of as how the what into in you describe

Susan Salka

mentioned increased to rate, average that would are premium see is seeing our And go in naturally as a of bill we're quarter, has it the winter of glimpse begin. than We And which rate assignments, we Tobey. improvements with more that's and that the last had assignments year. at we're starting they are the be increased par we go and on we what third seen regular early rate, Sure, into so the fourth which looking I'd and into the first quarter. we now when rates assignments will pricing, getting the really bit. the some into composition a of But the increase utilization mix those say quarter, as as third bill into that mix winter

with it And seen see to overall begin us if And we we takes improved if the to rates we assignments. and we mixed quarter quarters, in a into where times this dynamic that pricing, we've to fairly increase for to then see this more good at terms few a that And pricing. should months, and saw into the we strong rapid and pay the very see be so rates again, able of not for covered that. those before can to, long this that we seen helps some positive demand translate improved today. out a have fill industry having that support which that Generally, over industry. start to the pay space, positive play pull into for rates shift, feeling well decades many increase supply have about in continue continuing generally we're So really second being

would on there I quite next few based expect would that the not months. we're yet, in trends would be say but historical there we I So getting

of for team that. Now, waiting our course, isn't

of on or a rate interesting of We digital. doing mobile do exciting of we're to are and job of increase better the increase applications, a converting doing and conversion to all lot kinds that number really things and things

more start But And improvements you to so see pricing make greater can I we significant the really that's business. impact even increases. think volume to when start without the generally

Tobey Sommer

X demand mean perspective, move much for in the questions far improving to a pricing market for your what X you Travel various to and as supply Nurse would and have as what your you businesses, of do How the me. kind company price more to pieces -- connect perm those of From cycle, increase information? those available how

Susan Salka

have start pricing correlation on perfect talk of Kelly does on it I'll volume with have, orders don't demand I general in that pricing Well, at question we and I historical of think a physician. the about the share there's then number the say because have to depends which is also and near highs.

to pull doesn't take pricing much start market. the movement, supply And so demand, into quite usually, if you really it as significant have

be sort something of movement. start it's north some would to enough X%, certainly, But make of probably to

that, rate XX% usually of with rate. premium itself because the rates and Some premium our to overall again, regular occurring of mixed the already shift is closer in are of

of movement that as mix assignments, some see a premium well. just rate we'll So of

because that dynamics so So can not just and perfect it's occur. inputs and there's answer correlation if different a I'm perfect sorry, many

So...

Kelly Rakowski

I'll add of the nurses They away. Yes, market. our this perm from face are are a attrition of and the mean perspective and the clinicians nursing seeing is recruited Kelly comparison. get in I a seeing challenges same of other and lot clients we as

permanent and too. don't mean We are stay I of levels bonuses and their competitive higher to signing roles seeing

contingent to the well permanent said, Susan as roles roles. a tie seeing hard together, both like as for it it's same but X So we're out dynamics play

some in with of our does are current of team those our a good in what the each clients So supporting latest market job other and keeping trends the regards.

Operator

to move Mitra line the now, of And Ramgopal.

Unidentified Analyst

the fourth I should you've on technology Susan, questions. underlying to know people is there, and mentioned, reflection wondering late we markets start just that? in was Locum's, brought growth help quarter expect there I investments in some and in you've to going that's X if also the by Just new or seeing you is made the strength you more mid of

Susan Salka

we So clear. seeing be to growth today, just are

some second into have the third growth and quarter. the We quarter going

is X better what to So expect threshold It that in really a particular, we the that of what up in last referring capable producers productive, doing that I learning and maximizing just to we a day fourth have over much that as activity and our more should cross that on going said, getting we'll increase managers placement that or you're making is quarter. them late the little every curve. recruiters newer continue think growth, is system come through as hired, they're that start we've and months year-over-year kind becoming placement approaching over fourth a is XX% today maybe that mentioned team to account quarter, of their becoming more The job our the we they're board are activity. and of Ralph is our more of to see and third productive of

last changes been the some of fact just the making continued haven't that we've so And disruption. And really momentum of and it had over the year. benefit the getting the is we that

system. really disruption fine-tuning their and I it's elements. technology think we potential and process And the maximizing are of just the beyond now,

high at demand underlying the levels. look demand we is The aggregate Locum's, If very strong at it's within actually total overall.

We have different different rates within fill specialties.

have high medicine and have So as fairly rates. in emergency we demand traditionally in hospitalist, very don't fill where mentioned, we Ralph low

other we make equally now. every like are on I improving, areas we the where rates. feel to path right got is finding But can a good very it's in we've So high and day, demand team sure have fill that

Unidentified Analyst

already if to very relates Medical, curious about Okay, to terms see in or as that starting any early get days, I great. interesting you're to it quickly still know early of et as tele and opportunities was And is that? that's Advanced incremental to too then therapy, it you've on I talked but it's just be anything could still cetera,

Randle Reece

be over business start to to Allied business schools year prior we much focus also first team. the haven't of XX-plus which off and on beat that's so business core our in for in across had spent their forecast so QX so the has integration percentage week considerably the and the yet range, couple Advanced division. of can with been We've so is our good. They're they a selling, time is up focus schools great Their what

didn't the third up the largest obviously, talk overall, is been clinicians the is So largest but -- the Locum's our the acquisition margins has nursing in good entity and in attract than to and our Allied way, by it to is industry moves higher, nnow second And the much our business. always business. demand about business. lots, second ability with is the better combined our we

there. positives of lots So

businesses, school our advantage the again, programs. filling orders taken of and also size in programs, of we've MSP The those

better, they fivefold kind are considerably performed so supplier was, they were knew up track And clients of about and program actually they've before, so with there program, the as their positive which in the is under record that our well.

specialties in to so people supervise as far most their which right is clinicians that and tele beyond behavioral to hope is one we'll it the but the which that skills exists way time. which more our in environments, about helps speech, expand over is So therapy, extend which good, of is working in a excited the into we're therapy, business, of school things now, start reach

we're be those powerful the business And we to them kind which even the nurses, the obviously have with behavioral so -- conversations, into able expand we with combination. to to health once a as but get of in on been the side well. haven't the schools And doctors or we into help it's beginning

start a off and to So they're a lots of upside overall. there great

Operator

to the of line And now, Benchmark Sutherland Company] [The Bill

Bill Sutherland

curious of to picking partially $XXX got that mix Nursing, there that curious is Advanced? up, the was kind of you've wins the Allied, fill and rate on was and Locum MSP what's in then I due I today, million the

Dan White

Bill, even Ralph. start the Allied XX% look total you Locum's, this the this implemented Dan. interim and and with of So are yet that. point. is is this And is total with the Nurse. I'll is to then whole And if the rates, group exec overall, the combined. aren't the of XX% those rest ones at ones is fill about regard that clearly, at

to And you're our our fill on sort of if what at XX% line generally, so of look talking are you in I just about. kind rates business XX% think that depending MSPs, overall

Randle Reece

think vendors, business. an of there. right, have amazing of numbers kind capture, new which network which into internal is have the gets a XXs, right, us we bunch we also, then And industry-leading affiliate But

capture think, thinking, wouldn't ago, relationship. normally talked couple we that large So I captures range. I in all particular, know of our high client good. And be a up that in XX% to internal in is quarters X about we're already the We in XX%

those rate be wins at of bringing a actually we we what But the temporarily of the at particularly we'll lot had your on portfolio we're down was above we of would clients. fill better we've better clients like kind and entire trending get new have new thought or and new recently. and So

QX, they'll for beyond. expect more QX contribution maybe have we'd and route a the So of

Susan Salka

And doing mentioned, here MSP. still and us Bill, the they're even They've more into looking of But job so of forward for team very X less it help our than the great is is to as they're months, and early. a doing been I nice gates. job them to helping, out Advanced a so filling we're opportunity

Bill Sutherland

Got it. If on just could ask mid-revenue. X I And

a on part lead you growth? little think peaks together and will think I when that revenue some start time perspective it to to more coming in

Susan Salka

months systems. was get and certainly together the wanted get the new operating fantastic back bringing been last just has more the which few already done that in office so the existent. and really we've over occurred actually they teams to Yes, front of team the all brands try office actually system X of job operating brought them We have out on same to of And same system, synergies organization. a the that the and X everybody out to

more candidates. see could we that and So place easily

starting placement into disruption seeing And their doing they're coming And nice clients. really businesses, is the management as evidence really quarter, major case so then in third there's well a and other a sell third running new their within already the well, their in no most to been our up we're they've really clients as demand of as often into into of AMN been MSP job of couple great up activity quarter. is and in business there, has general trends

of a know I say, seeing all that when I will much I update into exactly on going an kind translate would can but But So trajectory give better you forward? year-over-year we're key don't trends really growth. on

Brian Scott

I'll a bit color. little

we've mentioned, several I So sequential part had as utilization. X had large quarters ago, our where quarters that we think, had I pecan declines reduced our had customer a the and

guidance, digits, to part of I as third was through the expect has be We're expect that about be the getting mid-single that but the up down half of will talking the in back little as bit better we'd quarter the trend we're the so are still just so year client that's a of year-over-year of we so growth with this we as year And larger in sequentially, we're kind into early get we the of next likely declined, because seeing that through the think year. trends. momentum,

Operator

line Now [William to of the Blair] Tim McHugh

Tim McHugh

I the one the that, was salespeople, from Locum's. of new improving, productivity in low the but it improving guess of improvement guess, a on base. follow-up I Just the is pace it's

and you salespeople finding legacy and are to your relevant both the and then that how amongst turnover new salespeople So also how model? progressing expectations

Ralph Henderson

a in people the turnover experiencing is X quarters Ralph. what probably recruiters, X our rejoin at come what this second the over which we team, is quarter back which this in large point. anticipated number significantly most with we've actually been when employees I'll actually to above were the be one, second had new that would the when we Of us Tim, prior of great. and decreased frustrated start the to when

old that's guess, -- we true. than I had the neutral that learn easier be and the database at proven we time So to the speculated, would and systems

would if But useful. change just the if those were think, of that a demand our I the and lot hires. would higher upside beating happier -- But still new we expectations. we'd trends in bit, think be we be in they're meantime, little a I there's

Tim McHugh

the know expect you Or quarters Are you're going business or is return might near from on -- turnaround? positive some from through mid-revenue the process of we term that revenues see And away still to to improvements. in something sort mid-cycle, seeing Okay. cycle that growth? I, collection

Susan Salka

Yes, program last the into so are year. we year, third and are client and it brought in a started that turn seeing going it Brian had last quarter fairly as large improve earlier, house we mentioned fourth and their

headwinds. We're some So and a that at actually things, that bit was of starting lap bigger this the year. then of created but to for of one a other headwind that that end the

growth, of first In year-over-year we're talking I quarter of terms think, more XXXX.

Operator

and line the to Company] of [Jefferies Plagman Now Jason

Jason Plagman

the we it just We up the incremental one picking I for hadn't me. Advanced a there question on Brain, from priorities upside thoughts future? are near deployment in with capital the any so is any question medical much leverage That's hear for Or digesting M&A on thought on for being? time focused and

Brian Scott

Thank the just you, our capacity. that buy level true probably really it the more still to In capacity meantime, are debt think we'll I opportunities and hasn't we're changed in to shares. still do acquisitions. us reduction. respect, that reducing to of likely We're it provide gives Jason. for focus Kind of looking we're opportunity more still on X.Xx, those We some debt focused leverage all at

not diminished and in last not it's that don't Advanced disciplined having We're active spaces. I acquisitions. right interest is has the exploring acquisition different to at opportunities very But targets finding few last actually like think But more been still the of in few we've and the as able our well. There's that we're dialogue opportunities a the and look been right months.

think we have the So successful continue to integration, the regard, back think the look at that the the in marry room a Advanced, to space on so very in half that integration it's that focus year we gives and as more opportunities. we really a nothing we'll changed has and of us with really the that

Operator

of Baird] the [R.W. to Instructions] And line Mark Marcon now [Operator

Mark Marcon

a and based Just for Advanced what be organic third the would assumption, Medical. follow-up assuming on quarter revenue for quick on you that growth are them? What the

Brian Scott

but it or million $XX a on rates, revenue in they're school schools of I was strong really number so about growth we with of it's that's growth that new quarter. for have in talked new of when so about year-over-year portion year, part a And a really basis think seeing number exact don't the I would So double-digit represent The me the third here, us. it. of starts the the in business, the

is XXXX, back also they core as bit, exited a nursing then little nice and rate up of to growth then the there a flat as well. to Although quite for were business bit kind down therapy

really are the growing. So business parts all of

Mark Marcon

are are far along locum's, and system Great. the how far like in were you systems, you along of to how XXX% terms then in if with optimal, the terms regards of optimization?

Ralph Henderson

several not Ralph. We this Yes, us for that talked anymore. a concern big It's for quarters. about is

better system, So significantly our a systems. that we prior is than have

releasing are a But you new really and new every out. X have the be about that animal we believe software where came a tools you and used it's different every X the now just than those now, weeks software train version on with weeks. we new used put it it we kept until to version, is releases new We place, in you upgrades employees cross

we they longer. make is changes continue see So any business, growing to we won't technology from but us to as not keeping the improve

Operator

of Tobey the And Sommer. line now, to

Susan Salka

not. have Tobey, do a Maybe you follow-up question?

Tobey Sommer

there just organically? hoping you could or Advanced maybe could out capability about of was the school through of M&A geographic be and that it attack for either or whether the ask sort comment that of the addressable has or needs scale about presence to business market I some you market if Yes, that rounded sort kind

Ralph Henderson

The introduced research Yes, we growth return our market, with to is Brian that for the heard Ralph. when the business actually the the business Tobey, of little this And me first the school so. opportunity. probably billion but about rates it's revenue space, $X very shows a addressable real have there's larger. and in There's market that could $XX over or million considerably fragmented that companies upside underpenetrated great it's be X of in addressable and certainly, X north

to for they that reimbursement an from on staff, they are these them staffing I mandated schools, available to get have government options start As think, understand them, so them. levels

not to So big school we're, schools quite course exist do, large in certainly big. may not know of how maybe as there's as very a that travel some guess probably but market big I cases, think options systems nursing, go half I after but even as

Brian Scott

Yes, this is Brian.

the entire all go look had country. you of newer the growth the in that over wins to country, ability if this So geographies indifferent school districts they're year at and some their it are after

buying have opportunities limitation actually talent industry distinct their kind details of you has our some is into all address in which districts and these there's are able school of which operated. terms with no we the total versus they more recruit really how leads won't of partner to that So the historically if advantages go to some fragmented the way,

So opportunity is lot continue a it of to market. that to penetrate

Operator

continue. one no queue. have else Please in We

Susan Salka

you, And call. we for We everyone, next us our today earnings Okay. Well, thank our on conversation. to your look robust joining time. progress for you appreciate our forward updating on

Operator

X:XX XX, this And right. after replay will today. gentlemen, conference be midnight XXXX. August ladies you. of Time for today's for All today Eastern available does our call But conclude to p.m. Thank and

the those any X may replay dialing access international X entering by (XXX) the time are XXXXXX,. numbers may and XXX-XXXX dial participants (XXX) code You AT&T again, systems and XXX-XXXX, access today. conference (XXX) international AT&T for being using and participation our code Thank And XXX-XXXX Executive XXXXXX. XXX-XXXX, service. for your the and conclude that you for does with (XXX) access Teleconference

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AMN Healthcare Services (AMN) 7 Aug 192019 Q2 Earnings call transcript