AMN - Earnings call transcript Q3 2019 | AMN Healthcare Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the AMN Healthcare Third Quarter 2019 Earnings Call. At this time, everyone joining by phone is in a listen-only or muted mode, and then later we will conduct a question-and-answer session. [Operator Instructions] As a reminder, the conference is being recorded. And I'll now turn the meeting over to our host, Director of Investor Relations and Strategy, Mr. Randy Reece. sir. ahead, go Please

Randle Reece

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

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

Various this constitute projections, statements. company's remarks during plans, events information These the expectations, we about future it. upon make call reflect available based or forward-looking current to currently circumstances beliefs statements

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

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

turn I call the will over Susan. to now

Susan Salka

our Halloween, and to call. quarter much, third XXXX Happy so earnings Randy. everyone, you Thank welcome

and the we tools. industry recovered of our elevated strong AMN the solutions on a downturn, by economy become the increasing of healthcare's decade in creating important very pressures healthcare has what to partner. has Over from a innovative population team and while of been The the of this for are for a I solutions time span, decade close most incredibly a have the supply. from adoption months demand general. two a growth. and talent AMN aging and most But how clinicians, Healthcare in are the unprecedented change new remarkable major significant during followed proud industry We constraining labor talent the occasion AMN without am simultaneously workforce management doubt, to last and largest rose and been the

and a with Ten $X handful through have of of generated for clients we XXXX of continues less services half clients, revenue nearly just billion a representing years had momentum than revenue. contracts. record already managed ago, our This the year, or our year X% services managed we new

AMN every already bring organizations are total we supply the promise challenges in in beyond the beyond population that Though care the sector settings. We We difficulty and change, anything increases traditional far silver using healthcare will that new the of certain aging the balancing clinicians clinical are we've experienced. healthcare delivery tsunami races transformations by the future with to technologies innovating healthcare to models member know for management innovate the future The offers and care great help strategies our talent anticipate, leader add providers the in in redefine talent as around to clinicians create the AMN. team of opportunity healthcare care healthcare. value clients how for labor demand. and increasing delivery This of

it the long-term labor our for We should bode demand shortages in. is clinical in to which strong environment for opportunities. increase, sight don't as we're any anything, intensify see likely end growth If well

lines. in AMN tight in most staffing good quarter, businesses labor third moderated The service with market. very growth financial the was results very produced by growth our for a

our strategies growing recruiters meet ramping our demand. focused up deploying intently recruitment and on As this fulfillment you would expect, increase we to are new to

a XXXX. or in and new of $XX Now strong Gross for million we reached revenue EBITDA a the of adjusted $XXX results at I'm to XX.X%, current record turn to quarter high XX.X% third revenue. was our margin report let's million. proud was

Segment Allied from including businesses, in rapid of higher and growth. year-over-year, Nurse than acquisition a was segment and our Our delivered Medical. revenue and revenue strength contribution is XX% our $XXX international which expected from recent response organic of X% Advanced million, nursing solid higher

Our the travel business, worked extraordinary above risen, prior demand. combination strong have levels for Bill months, Demand Growth levels organic XX% currently remained nurses since considering Travel at largest more volume, many the at seen from rate. we've has Staffing, highest grew year, XX% hours X% rates Nurse than and but year-over-year for bill a higher came and growth. XXXX. with modest of

as that clients attractive high environment compensation been packages. respond has experience more demand will continues, Our this with

seen higher increase a in assignments rate sing. encouraging In fact, very bill is response rapid we've the

Allied the Staffing revenue third quarter, up organic XX% was ticking strong to at growth. again

working lower organic be with XX% quarters next to the Our of payment in up the low model. patient-driven revenue implementation also Skilled quarter, XX% team needs business clinicians members tempered and the $XX Advanced for expect the Nurse the flat we Advanced In by is our segment year-over-year; revenue results up from recent in robust is staffing in up up than to from settings Schools the year-over-year, demand year-over-year. to in school of however, somewhat XX% contributed Allied quarter. outlook fourth could single-digits. Allied due couple Allied more with growth poised in Nursing its million to growth Overall is clients,

to continues quarter, and of us is at to to being X% after segment, fourth Locum Tenens expect productivity revenue was follow last Locum normal Overall, quarter from slightly the seasonality, in technology the stabilized sequentially. which has down we In growth business process year. disruption third million. made expectations the The and changes Tenens of the deliver next revenue to ahead demand $XX strong X% In should year. enable recruiters improve,

growth in than revenue year-over-year. half segment's Each million more service for Workforce a delivering up of Leadership Other revenue, solutions third about cycle better we lines in revenue in of all division, placement, relative year-over-year year-over-year quarter executive recorded year-over-year, the include X% down which X%. segment growth but leadership, quarter. the interim The $XXX of produced this RPO, had Our makes position Solutions to fourth of strong quarter, the slightly Search division, and of revenue. do performance search be was this Revenue which perm growth expect and XX%

Technology than Our optimization, and the management include third more workforce Workforce year-over-year Solutions, quarter. our systems vendor grew in and which performed well XX%

to total the be For Workforce revenue the for fourth X% X% Solutions up year-over-year. is to segment quarter, expected Other

partner. we to methods create We aspirations. our talent achieve position career that their help as a our forward we innovative to leadership we decade, clinicians this be are clients Likewise, with can proud continue in recruitment new to their total and management look innovating market enter to as

in members healthcare of and team business team's I patients. am incredible desire grateful The our talent of positive and of our thousands professionals to our AMN's of of all impact to of foundation the The care evolution. for the for make enables culture people. quality a strength and is our engaged committed our commitment talented

our As day, example with Northern members to communities California Every impact are team through and our way in of good deal clinicians several work wildfires. clients the we have this, helping we in any and strive possible. a they make who an our as currently in

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

Brian Scott

afternoon, you, Thank good everyone. and Susan,

On prior million margin segments. mix guidance increase of XX of X% was organic The quarter. from performance $XXX Nurse margins higher segments, basis, above Third was an quarter in this driver year. a revenue upside result end biggest and for Nurse year-over-year. range. basis than higher in up was Allied our Allied Other from and shift within segment. of X% in over of above our sequentially the and Gross with sequentially year-over-year expected favorable the the line Reported guidance X% our at a those was last XX.X%, our along flat revenue quarter came points and and The revenue up year Workforce the high prior and Solutions business with up was

gross and prior the driven $XX quarter an acquisition. up lines. year Segment from segment was prior up XX% Allied rapid prior quarter. better and points XX $XXX included basis was Third and Segment from EBITDA points than allied, business than million of double-digit growth was and response in basis Allied international organic higher XX.X% XX and our X%, Advanced up XX.X%. was Nurse X% Revenue and year revenue sequentially, by Nurse million, margin basis, margin On

segment Gross margin our Segment Locum Third a year, was EBITDA $XX Tenens level line XX XX.X% revenue the lower than in was basis of quarter margin quarter. than and basis. less expectations of points of was this X% XX% X.X% with up prior at prior sequential revenue. of on million

flat in sequentially. XXX mix the year-over-year gross basis due were $X million revenue with the adjustments SG&A related compared segment Advanced of costs, Solutions lower points in or from $X third up at quarter, X% [indiscernible] and XX% the XX includes year. reserves. and in business XX.X% $XXX revenue $XXX basis earn Other [Indiscernible] costs, or legal million Workforce employee-related a of revenue, year-over-year from segment. partly offset same quarter $XXX valuation to higher about margin XX.X% million integration was the by points favorable of shift out million million and sequentially, within increased The increase and and last companies, other Segment

by year-over-year. million Adjusted Adjusted EBITDA adjusted the was with third points $X.XX basis $XX quarter. of earnings EBITDA basis, reported year-over-year XX XX points quarter. X% share in of share On was of a diluted compared $X.XX margin basis was third sequentially. and XX.X% per of quarter income year-ago lower net consolidated We $X.XX earnings per in million the higher and $XX

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

Cash at end, expenditures Our year. last from $X to quarter X.Xx in improvement X. for totaled cash in sales days, fourth were our million. end the by XX% tax and the a was $XXX million ratio third quarter same quarter. to quarter. XX% leverage million. $XX was equivalents seven-day million Day is outstanding quarter quarter to debt $XX Capital was be and XX, operations At outstanding At total the rate September was expected XX provided

Locking of On million debt revolving notes debt, in senior borrowing capacity XXXX, October $XXX at XXXX, repay AMN's $XXX unsecured of our rates matures of issued long-term company million. debt million. puts due and term Today, historically X.XXX% in and proceeds none unused which this of in of a the to X, until which the loans, used totaled and total revolver $XXX an we position has $XXX balance a of sheet strength.

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

expense a as flat events disruption to in any labor of Excluding expense Diluted approximately This fourth are $X.X the the expected of about does be count estimates guidance expense depreciation million; approximately integration $X XX.X%. XX%. revenue material XX.X%. million; Gross extraordinary EBITDA million; quarter to SG&A be million; expense $XX Advanced consolidated expenses assume million. approximately margin is Other up to Adjusted X%. be other be of stock be of XX.X following: XXXX based quarter. of to of and acquisition to is the interest percentage projected acquisition, compensation the million would impact margin and $X revenue $X.X to expected expenses is not amortization include share expected shares.

we'd now the up open to call And questions. for like

Operator

Capital first question our Markets, of line BMO Jeff with And Instructions] please ahead. from go Silber [Operator the

Jeff Silber

much. Thank so you

season, you joined get winter talk but about on I'd if can into that, don't appreciate Thanks. you've me; I order comments flow going late. it. opportunity had to some I we if Forgive the an the know a bit

Susan Salka

of about Jeff. above sort little color going strong prior like didn't into orders very about on We those Ralph, orders so being to we of a And add maybe specifics continuing more to XX%. talk and year on growing, that. talked the flow be than winter more season, the Hi, you'd

Ralph Henderson

Susan. in winter we're trend Thanks, later it's kind higher. the above prior XX% that about start coming of Jeff. for The year question Yes. a one dates. interesting seeing: Thanks There are is too, bit orders little

sign. a have is the QX been But little it demand on a the than would higher good in obviously is prior. impact the less So

Jeff Silber

early, any there's early if there don't season know I I is it's about know year? this the indication, still And flu read. any

Ralph Henderson

the in year, Yes, a prior it's but very It's I actually Ralph. I in a really cycle. that talking season very might at are look it's I'll meaningful this it signs: be now. expecting And the And give took a the don't -- a it prior We pretty today. early quiet bit think shot. clients up right little or pop few big flu yet. not over periods, year. It's

Jeff Silber

of refinancing, the If just savings interest you expect I on more what do question. one in the Brian, in, terms could going sneak it's numbers forward?

Brian Scott

a in Interest trade savings being able be lock -- of will thought was off a off interest actual debt but expense point we longer-term, make. to unsecured trade higher, at this slightly to that good

I've mentioned, million, fixed a $X.X which be those of $X of interest expense unsecured debt. as will So between is going two dollars, forward the our within tranches million majority

Jeff Silber

Okay, in Thanks. the great. queue. back I'll jump

Operator

from please SunTrust, question the next go line Our Tobey ahead. with of Sommer

Unidentified Analyst

Thanks. Jasper [ph] on This Tobey. is for

gross a bps remained question: XX but a guidance speak both sequentially items could margin, for and was bit. I Just EBITDA I'm unchanged. of seeing hoping EBITDA improvement be restraining might margins operating to what you

Brian Scott

Because the are consistent referring EBITDA fourth guidance. quarter margin relative Hey, you guide? margin Josh. to gross QX, in the and And the the pretty to QX are

Unidentified Analyst

and EBITDA operating just Yes, and the the versus QX. XQ I was speaking between for difference the to gross

Brian Scott

mentioned well, in got is I in on GP and and very are reserve. there, positive embedded there's a we earn-out But of fourth that, quarter. costs so pretty the So between -- conversion outside the really will EBITDA which away. true-ups SG&A, expectation some to because a performing prepared from margin, some QX some increased the third consistent go of the we've cases performance of Advanced the which remarks had additional

Unidentified Analyst

Okay, perfect. you. Thank

Operator

the question Credit of from with Rice Suisse, ahead. go Our A.J. line next please

A.J. Rice

everybody. Hi,

all, obviously that's formal you about of how also should any happening Is the year you of there potential you're the puts in off could First that when and think give what's business for XXXX, maybe are don't next margin but and last know in I makeshift guidance, -- lines, jumping we margin. there about about takes on your sort commentary and but ahead margin each early and you question, from year trends of going there's things thinking think affecting accomplish?

Brian Scott

the Brian. margin point formal head this next -- think as expansion gave launching don't we we're I about in some on The But Sure, we guide is obviously be from the margin of we year. good the is growth get where good But is next some point good expect fourth part guidance as as side leverage to for gross that for XXXX We think a the revenue that order year. quarter Yes, really you dependent XXXX. seeing will exiting into give the getting XXXX look and a I that. trends operating we're we we year. see starting that certainly on the revenue to at upon think amount be leverage I next it'll said, year

Susan Salka

it very margin. us bit, into to placement, shift pressure that's the demand might be gross A.J., if But that our the that only affect you convert we the able able more little thing because volume see a could that that mix demand have on greater growth. very to nurse which travel some would are see downward give we to a top If is in we're line going a positive could slightly of business overall this even little have tight to strong supply. and our growth of bit more start because

A.J. Rice

Right.

helpful. of some some quarter? would to follow-up about We've even quarter? impact effective of in you is what's the went other is comment so big guess be the I my how wondered quarter was up I to some X, business you the see reimbursement the that fourth and rehab that and And heard or in some did nursing. in freeing That's Allied of providers know I reimbursement really third the that third believe, physical that is it's for to skills new there that starting therapists. in of I in this obviously group, your people more happening push from that Okay. October

Ralph Henderson

I'll take is Ralph. This that. A.J. Hi,

up total You're roll there. slightly The includes payment patient-driven in Medicare X% of It the out quarter. which model in revenues, and did makes October. new about segment right. It the Nurse the third in Allied declined numbers Advanced

there's of the a our Schools predicting we the had And other more parts can of think business. up are specialties small shifted and our We we business, other ways kind quarter that in which resources part year-over-year, XX% to work decline it in is I of But and XX%ish. impact lot like offset of business. anticipated mentioned is And that. Susan fourth we

again I about begin the up or utilization a fifth to reimbursement their therapy quarters. ways fourth I'd over customers through other change is to seen the changes after think The I say, probably is thing last and find those that XX and few reimbursement think, this in to I've change over time years, pick these tend work

us I for I So exactly to future. good through the still couldn't be anticipate when that this say market in but get one, they'll a would

A.J. Rice

perspective. helpful That's Thanks a Okay. lot.

Operator

Mark And we'll ahead. Please Marcon to next with Baird. go go

Mark Marcon

was impacting bit Good you order the if seeing more about it's of in I labor you and in rates. little rates, market wondering sort in how take a steps and increase could fill to the you're the what terms afternoon. talk fill tightness what of could

your So question order -- that to I'm that recruiters, managers then terms that. impacting wondering how the And account on related is provide keep people the compensation have to in demand board? first for to you also, of in good the levels ones and

Susan Salka

Mark. additional help then Thanks, colleagues and in have jump that in maybe commentary. to with start some add my I'll

I why So lines have. still think continuing jobs quits to follow historical the along they just but open labor us able than two data right also with and job clients the and filled. strong And ratio know an anecdotally That the hiring see of them can the up X:X that every what being words, healthcare see relatively faster we for openings roughly they're because up that a I they first, losing market, keep to highs. regarding job BLS they're continues with extremely at be vacancies we're demand are their you general We're number in not they at to environment people, that's to feverishly, our from where in. hear bring also for

add a our kinds however I have a perhaps that a But little of corporate our tight Ralph labor mattering one lot Dan there. and bit the build goals job employers culture And team in helping market to culture within and do successful and to for not talk why purpose because positions; I'll organization. all the the regarding the personal its rather organization around within really focused a very stated all all team, our of reasons is it's on we about more members peruse just help color absolutely if professional be our to within the their much but a to organization have

These So we part a of than rather on try within really a our people that words are making a on I there purpose great and just based aren't call, can phenomenal environment has than talent. that decisions bigger compensation themselves. to impact. really were of use a retain more we culture the holistic attracts Be part company a that a but some successful competitive that make and words can And and a value organization. positive something use sure package be an of earnings offering where be everyday makes

easy are every jobs way getting day. and challenges Our are aren't that there and know we a

and with culture to that strong We we So us. they people. carriers a healthy stay provide find for nurturing build there want

clients. Roth that way more me with we're little you on So hearing from in what a ask let to bit

Ralph Henderson

coming demand down. rates question with was fill as anticipate, rates what's are behind market and happening the probably you Sure, high would that

candidates very MSP and get of think couple last actually is is relationships we job resources quarters our grow fit talk lot career In location. still of opportunities right shortage market there choosey I those. there are for to success meet those and most now a to building look the that strategic that as continue there good to a shifting those think which skills, they geographic goals that their ramp I really which still right driven of several on

flat that report that job. there right sort their wages they seeing now those rates those And rising bill of seem make and All us. with core staff wages to once there are and checked comparison all are when of that of but the boxes they compare things they and

in some XXXX, very seen or them balance clients equilibrium the this expect and then clients demand back quickly whenever right not now or movement very being that next I we're think move to get understand but closely in rates allow us supply that again. past with quarter causing pricing we to the of with but needs rate we our that's between so help that And signs early to happen. on met, demand to the that high work were in so fill seen Hopefully

Mark Marcon

would and That's much take increase great Ralph? how an it of

Ralph Henderson

took movement in not mid-single still last digit. single it economist an digit I'm Mark, a time

Mark Marcon

you And then differentiator I certainly being in terms folks. your appreciate comments culture attract the helping and of

able perspective? continues a business market wondering, is tight to in of grow labor is being terms just to Just it you from know that the that

Ralph Henderson

to We're constrained great ability our not really talent. by recruit

One geographic also been benefits in think I of a company footprint. national with we the have a

clients We working clinicians have working the company. and have members in over we office corporate also but all key

and the and members we in so have getting And key we're able members. at better labor talent to different having geographies different and better working have many key opportunity to recruit in being markets

think where come So us having a to it to that lot in us. talent expecting the flexibility it versus meet I is to the helped

Mark Marcon

quarter? there any That's in response revenue lastly rapid the great and was

Ralph Henderson

bringing rate into our in also contracts shorter our very that duration, response U.S the segment the performers where rapid couple international higher business in we a they stat bill then that but nurse long-term are quarter. contract. a are business, mentioned We those nursing also on the had of strong nurses which

Dan White

Dan, Mark bit this want a things little just these together. more in two whip way and I is to

do, you what asking about rates we were clients what do being So with challenged.

thing we solutions. with is to The go them other first do

in nursing really is a good provide can the example we one. here We have many that international

to of rates a problem low to somebody and they terms. labor category grab fill different solve in look it's and assignment shorter-term if get hard longer are So a this

example good really a actually time So things of together.

Operator

with Jefferies. Our next Please question Plagman go Jason from of line the ahead.

Jason Plagman

nursing settings do alloy in redirect candidates a quarters. into only the touch segment. to business of have think, of Just or the you the on other you you its comment wanted and something Do those to X,X, do think kind of the offset that headwind persists X some impact for on all that kind that to opportunities changes so the to short-term

Susan Salka

news one I time pain been the to was actually go little good to and I of in is of would several resources a them lowest And some interested skilled the transition through will the a this quarters. be get that around bit It's all that setting assignment about takes. which from long another, a eventually studies. but will this higher-paying. one matter in change to We guess that's will question are environment is how planning setting of setting, guess virtually different what our the another the care good past the work in acute jobs of back take It nursing that at think for

Jason Plagman

that and for back OWS to realistic When helpful a little even we that get segment the you or that was That's stability in growth challenged the expect looking what should there. process of XXXX to QX. mentioned bit revenue or is kind revenue being

Susan Salka

would coding, it CDI Jason half spots I but variety solutions some be they business exact recall bright XXXX really nice predict a the our management, to a case if timing there first we're and the think so. offer within big is difficult is, seeing target you of that of the

some those yet and are Some challenges. of nice actually were some trends having business showing other some

and that other might ask because share you next really and in share I about stabilized better bit about will mid as early we really you saw in in be growth solutions workforce what's year asked there. to think some a nice for just leadership little good got a performing Kelly search kind happening trend piggy some we since and of back positioned on So

Kelly Rakowski

is And the the couple remain a we and One we were we're a as our search ago we clear on well. to that space, I perspective. now as down of different to year nine internally positions working that the working brands come well from seeing are in market in integration lot a that success challenged base, continue strong think more our line uptick and clients The a had we're and leadership are and strategy resources. for But we data demand a and in so had been on quarter more leaders expect well. and because together nurses physicians service business working extend combining of shortage is the our from our getting nice efficient as we're to we're of things they the leadership permanent higher and an traction having as

So greater lot being which business is reasonable covering coverage helping our also a and advantage part that. and gain for pizza of we're like us a getting some of with more from opportunities more

So, we're round for to we really staring see saw this business search executive and that quarter. growing past that turn really example

us to services optimization them to and build clients really very that we're are help now of strong strategic the So services an from that asking ability off excited and platform standpoint. extend the and our advisory to

Jason Plagman

one meaningful was Great. Brian And revenue quick in labor me. any one last disruption there quarter. for

Brian Scott

mention well. and is amount any as much under in have don't expected guide No, our for quarter that it I similar pretty with X million material in was put guidance line fourth the as

reminder activities related QX over to modest but QX little a third sequentially look of and another as was the performance strike our have in did million a as at the quarter quarter. Just was prior me year XX

Operator

will to The with we ahead. Company. Benchmark Please Bill next go go Sutherland And

Bill Sutherland

business and XXXX? looks and this momentum as about you to could education kind go that sustainable just into of the for was like the how speak I there curious you

Ralph Henderson

we setting to and to our there. new we goes one we want reasons growth was is more why been attractive the get business company This overall healthcare Ralph. where is advanced into of part see strategy has where going opportunities been of This wanted to and be a as

you we've introduction and health home done. other as our seen with So the some past things

quarter largest stronger come and to XX% forma by were our just but around we quarter, The they and We about and the their market out called basis. players estimates players were X are there's business schools was of of quickly. very would both business. do and by pro business on expect the great The were are than a right to They there further a the also basis. that advance that study big continue in, a seen to the in performance top but better fourth in there and MPS up couple dollars medical pregnant on had the contributors they to of were that we've quarter the anticipate billion one way there million QX line year-over-year also a school not $XXX probably driven success by we now but X very

very on. performed has well team The

that assignment which get help length us little the because a bit little you in nine So predictable soft. were you little also long, assignment summer and out it when is softer favorable is does get very more its

So that have that winning as to contracts we're new everybody used that overall there. but that cadence will happens you

into school of are take could advantage office, even business moving the recruiters some skilled We we that more. so of nursing the setting, that

Bill Sutherland

you when but get parameters. about of group completely, So and think set of up beginning school mean the in it at kind sense growth the the I year the the not

the winds year. as see next a trendline and forth so So stand new next have school where you you when this with year for

Ralph Henderson

something will the or throughout there that I Although we have some year jobs regularly like to are think that. did continue school some fill a

much still jobs baked pretty but will it's you're right, fill advance fiscal we So yet in some year's.

Brian Scott

in Once contract place. that we have

We have up end them us for multiple years. of school this using working majority to

look large if end majority month can its thing long on up build more having and year, forward. that we continue relationships those needs nice to each in assignment as we even add is not the only nine the So

Bill Sutherland

us business scale remind you Just guys. currently for the the

Brian Scott

look if calendar its fourth, rate now fourth the run quarter at but because the hard the run bit rate of its revenue. is for use the the forward So year you little right to

and for its it that Now to will that little when these then the highest QX QX and get the now. bit lower annualize the again, XX a but on right basis you XX

Operator

Please ahead. next We with Sidoti & will go Mitra to Ramgopal Company. go

Mitra Ramgopal

getting on to a the in potential over your even next you think I out overall running sense MSP Just XXXX up wanted and the in of XX% to fill that it's now pipeline right improving terms get as the months. any XX rate, terms out higher in bended around the look thoughts as look also the XX% you of

Dan White

Dan. is This

anyone start I'll add color. and some see want to think with I if that else

at happy which nice mentioned year MSP So a for Susan is end visibility part our point healthcare to the way settings opportunity about mix, put And will and nearing best sure. specially excellent year on that absolutely our that the into contracts right to ever, year The this really represent the decade diverse opening say XXXX our were is sales. exclamation of provide remarks lot and in an be a have point really good full the professionals. geographic of for her

balancing of lot a things sort of So there.

increase For these a average that's X.X helped and Overall, little bit lines. year-over-year. deal really about service of for our deals averaged quite year color this size well,

well. trend a know that's nice really you as So

that again from the that range companies outcomes million managed X.X and our around from to of simply billion realize over our programs strong opportunity implemented pipeline from technology today, Our months. that we service a spend for own of first-time fully some we manage managed for the is interest manage probably also just allows manage contingently a contingently remaining clients. The will just thing from over kind way the market programs overall And service these probably give providing a materialized business the still were and wins $XXX behalf reminder, always seeing of buyers, outsourced in ramp our me color clients. is to to is good some their XX be drive to their XX on is which labor next all indicator is good is

why the keep of of the of why want the equation. the workforce really optimization of puzzle one to to how an pieces use reasons back different around category color That's we to in you using talent solve Mark add phrase. total One reasons this sort

about So they short-term just not looking for flexible, rate at they it's assistance. is about build also their needs how international how manage us on fill

really that's think referring your to. So then a broader I equation

Ralph Henderson

new we great a they well in clients our clients processing with talked maximum recruitment need getting that challenging the about We're year that we a with really and in contingent bring both permanent we're can having the that's had outsourcing added having are there hireling the because as also are when there bring can and we team, RPL and as them, come had but see and nice and uplift finding our help them there they to the benefit prompt for out we make hiring. labor they them sure challenge of team we help

Ralph one more just So comment on rate. pill

Dan White

is the those of the On more XXs which and the were year contractors that in that mid capture, to gave the revenue most more early won range kind are we of we too is call clients the absolute get still what end of high internal ramp. the with exception running now pill referring of that is us rate the towards that a and new high last you which handful what the your which we conclude in of share clients in several XXs, right the it and high

bring would we some challenges will level a rates a difficult traditional on larger in trending fill deals first at XX% what the a the client, there even So are are of But upward. we right with to that it's fill. might capture be MSP it anticipate supply more and jobs so probably client we new XX% getting right are year of lately that

Mitra Ramgopal

great. That's

of feel enough and to the look on terms question recruitment the expect you that side, having just recruitment wondering advance bring suck you quick you that. can you expanded in if on with as terms leveraging acquisition now in a team out the place comfortable in of was you team Just business

Ralph Henderson

productivity to near talk recruited It issues But XX% threshold. adding will added the and about to Ralph, in we've is XX% our, capacity at talk I nurses with about well. but This as I might resource Kelly nowhere the highs. time XX% all even about advance is be allied think team incremental want

upside you overall there were but you talent can last recruiting of years. hire new so over two those we find to all lots good things know team. our there's So in we with our Kelly. continue over to the out those of In investment and we businesses when try be so opportunistic find lots the and we haven't hiring of recruiters down slow done

Dan White

productivity leadership the higher people productivity would search, well demand to in our back pace down significant around and add to slow to our mission so as will demand allowed keep and has very at we're similar to of allowed our has opportunity have both we're demand. where a the book we're I in very think hiring as our joining seeing with some to say And having to absolutely our greater is attract shift a able in year us to I integration comment and I people trends to that us retention our to culture and past way. where move fluctuate also and we that seen and seasons our resources that so increase increase but interested ability and

Mitra Ramgopal

great. Thanks the questions. again for Okay, that's taking

Operator

next question the Maroccia of with Capital Berenberg our And from open. line your line Markets, is Alex

Alex Maroccia

come questions. get afternoon. good future Thanks think you or much you think existing do from And would Hey, taking new clients? for How primarily number that for expansion MSPs? higher do the you can XX% there

Susan Salka

an alluded the and XXXX but that of clients, see ability signed to. would brought that, We these and runway not partner said. our as for to the really lot over organization someone But for their they we own build in in mirrors that on RFPs as both on will want to And complexity clients frequently holistic, the much We're that to based time, that give first and a rise them. XX% year, billion that the sort our additional total I will number expect see more $X we're showing market. part and increasing talent several of that who in of and alluded level Dan as a out with I penetrate of think until we won't launching it's more today, and more the of win merging Dan we more that be be we've revenue that and but clients, contingent conversations Ralph our certainly think us to. more systems of We them. have will sophistication, hearing having staffing, over that just can appetite last you turn The to existing up you and more to continue

and so and that more holistic believe have had need help stage will place but And solutions multiple or a with technology time want challenges. we first likely clients of buyers to sort that have tackle in program both to more only workforce early also might something their

wins. going more give will be something more that that's think to with we help So us opportunity

provide That's existing to seamless lines doesn't their to and the a and of it own how with to we different to don't a organizations delivered solutions. believe so want be They to and as connect do can more lot own have clients, service their our have solutions can integrate teams bring that they much the and can launch XX actually table. what being better businesses job the doing offering of want. cohesive, our our We go runway different we a priorities, new have that opportunity them set have a that better we ramp also that we more solutions to strategic of our and does more through and understanding and challenges, as

one internally as of connected the to with and our number easier lines well for organization well the of gives think lot can we us are So it externally, increase them we integrated clients more that a work make that service runway strategic using. that's as to

Dan White

around you'd Dan. So is -- give like just if this color Alex, that you example. I'll

that if least, couple to over six about at at, next I offerings X/X that of years. revenue Top which and or think going grow new they're represent looking that use them those ones. five see majority much you that XX for So our [indiscernible] even us of the becoming could adding without of half to more There's room -- the you're using of clients

Alex Maroccia

And lot. on All separate right. prepared the during a note, great then mentioned remarks. your a you That's Thanks fires color. California

which terms natural areas, you in uptick what the parts utilization? and affected of the seen the terms disasters, historically In greatest of in of have see uptick then business in would demand

Susan Salka

helping of on as the clinicians imagine, that that our our what our our And that. in that's nurses they first is responding our that clients. and some we so while -- well that that midst may of sure all crisis, and the clinicians, disrupted teams in you making have nurses if are get staffing they we're needs, additional them, as we're ground And clinicians our Yes, cases, and course there to priority, but there. not doing, the as may they're can are we even quickly have have supporting

them the for that situation? And of possible seen so happen as number somewhat come there's now, not in disruptions. few But things new few in there's we clinicians say balancing through what support do a Likewise, point, those this could We've needs, to to at needs I settle. right out. but a do would for appear be each been It's a two high lot. been But additional a not territories. that other

Alex Maroccia

great. Okay, Thanks lot. a

Susan Salka

Thanks, Alex.

Operator

Jasper [Operator Instructions] Bibb And SunTrust. you. go to we'll with Thank

Your line open. is

Tobey Sommer

duration compare normal price kind contrast of trying whether by resurgent market? Thanks. it's It's is customers demand Just used the compares reaction taking longer. to it Tobey this in Sommer I'm Could to. out a to maybe we're and you for go or of Jasper. to but figure you're around what the the actually seeing kind corresponding this describe how lag where not

Susan Salka

Sure, Tobey.

get sounds that you their shortly. out can you've in background. there great with could the here like get got some they glad trick-or-treaters join so us. I'm We'll And you loot them

I a us being rates, supply sort is think survey corresponding -- that travel that come would premium pay nurses We I'm X% we rates there in rates most X-year us in those timeframe. rates used premium demand pay And might as And it for of the be we've last two of declines One see call saw a little taking being the come longer and Depending that It's cycles sort went upon down of rose a the bonuses. down assignments this over and saw positions. to because through at the as demand. that, with of then not the higher and normal basis, an and the in with rates terms high average ever came bill very of back time nursing time into offered rates -- period. been higher market, had there's which I you've actual cycle. on what in permanent of we've sure down, it. have you in up pay XXXX upticks came read, to reasons seen we rates And for less X%

in so environment, yet positions. I rising And think at well permanent nurses are travel I but not see the necessarily looking wages that going rising wages in

supply our that So until think higher see be compensation opportunity will for packages, to we start a constrained. I bit

How work translate interviewing Now quickly, in maybe within their rise we and really pricing be about see I making make there's sure are growth their three say. months rapid be, It's early needs than will I some are think possible, standardizing a through lots movement we of at then changing, and mentioned, would then clients expected credentialing, more that clients signs going sure to But to that can we longer limited. seeing are have two the assignments. I'd as been a that little point, mean starting can bit compensation. but hard we this assignments movement, until see to to to doing other with it's little to what like both we things as things or we're with some say long? are to response bill do as attractive start and are rates conversations in ongoing I

hopefully So helpful. that's

Tobey Sommer

is. you It much. very Thank

Susan Salka

Thanks, Tobey.

Operator

additional no so continue. time, at questions We please have this

Susan Salka

look for joining thank great especially We forward our and and safe we everyone, us, on on progress quarter. updating to Halloween. you you you next have hope again, evening, a Well

Operator

concludes participation teleconference for you. Conferencing. you for Ladies gentlemen, using this and your AT&T Thank Thank and today. our for

disconnect. now may You

AMN Healthcare Services (AMN) 31 Oct 192019 Q3 Earnings call transcript