AMN - Earnings call transcript Q3 2020 | AMN Healthcare Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to AMN Healthcare Third Quarter 2020 Earnings Call. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Randy Reece, Director of Investor Relations. Please go ahead.

Randy Reece

Good afternoon, everyone. third earnings Healthcare's AMN to quarter call. XXXX Welcome will at call. ir.amnhealthcare.com replay of the available webcast this this A following be conclusion of Details this of our for replay call the in are the earnings afternoon. conference issued release audio Earnings projections, circumstances, plans, expectations, about trends, make remarks statements. events during we forward-looking call future this constitute or company's based reflect upon These available currently the statements information current beliefs, to it.

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

On Kelly the and I Group Susan call President Group of Officer; Chief of Landry now and and will COO the and Talent Seedig, Rakowski, Strategic Solutions; President to turn Financial Susan. Chief COO today Brian Scott, Solutions. over Executive Nursing are Officer; Salka, Allied call

Susan Salka

do clients, welcome to tireless our today. first healthcare quarter selfless team third share care and for and and to incredibly AMN our XXXX I everyone have much, day, they most the families and to with start communities. is for Randy, important want entire the our work call. Thank to you message professionals every so The grateful to conference we

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Our quarterly were results that expected. better AMN colleagues delivered and responded wholeheartedly, much than we

Revenue related and disruptions. million. was our was down adjusted Our due EBITDA year-over-year million to consolidated and anticipated, was quarter-over-quarter $XX as revenue $XXX pandemic the

Nurse Allied Travel business, continued X% the lower down revenue growth. posted XX% largest year-over-year, ago with was of revenue segment Nurse our period, Solutions XX% and than by Staffing Our therapy. $XXX weakness showing year Allied driven in Staffing, million,

up lab far are only schools was respiratory and Our and single year-over-year, imaging double-digits. our by specialties more business resilient and digits, down

improved year-over-year the comparisons continued the Nurse throughout and both volume into and quarter. For Allied, fourth quarter,

example, For low being hit in digits only the rebounded and has in down volume today. quickly point nursing mid-single our a July,

attrition Some affect ability also industry. driving attract our our of same the to issues clinicians into travel vacancies for and high the clients,

the enabling Nurse with keep While Allied. we the across facing most and to project sequentially, prior recruiting our demand approximately growth, staffing, and revenue revenue year. grow of specialties quarter, candidate Solutions up We In down grow nurse least business are it's Allied expect new is be to year travel in at slightly not record our XX% XX% and prior year-over-year. largest X% fourth and we above Nursing levels enough to nearly flat to and over to sequentially,

to but still sequentially this expecting Allied about down XX% Our also in division by Staffing, second year-over-year. grow about is segment, XX%, largest

on quarter was third compared better was led revenue Interim XX% slightly placements with segment, XX% second sequential revenue locum revenue from radiology guidance. but although lower prior tenens ago leadership than XX% Solutions, volumes. to Within growth, performance. still down million, than fell anesthesia, Leadership standout, and better performance year and a Physician down CRNA, year-over-year, dentistry and quarter For year. XX% $XXX a the with higher this

the feel experienced executive Our high-level in and spending cautious Search businesses and leaders has remain hires, on new revenue and physicians. and physician for slowdown new of clients Demand XX% search continue of and hiring year-over-year. pressures but Interim services improved, lower the to

quarter in fourth Physician revenue Solutions down expect and reflects Leadership to We mid-single for XX% sequential guidance to decline be digits. This XX%. seasonal about year-over-year, a the

year-over-year. organic reached acquisitions in offset by of Stratus $XX and February, Technology from a Workforce third Video of in Solutions December combination million of Our XXX% the was and up additional segment the partly quarter, revenue in the This bXhealth decline. an X% revenue

performance the positive being are million $XX quarter, track for higher made the exceed revenue third with our quarter, pleased teams. Stratus they on by impact XX% in these the extremely and and are expectations second the We the achieved to year. in than

staffing X% Our organically of healthcare VMS business grew the the was revenue X% overall by amid revenue slowing down year-over-year, market. although

Our double-digit accounts. division registered predictive analytics new and revenue scheduling and they expand as growth, existing solid add continue clients to

For and the to XXX% X% Workforce revenue up we quarter, Solutions about be to year-over-year, organic Technology expect fourth growth. including X%

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Brian Scott

Thank you, Susan afternoon good and everyone.

was quarter million of our Third well revenue guidance $XXX range. above

pandemic. year-over-year, the was revenue due anticipated, impacts lower As to related to sequentially and

by than drove to revenue fall and However, increase nurse lower and Nurse XXX of than for decreases XX% revenue higher XX.X%, X% was additional expected, Allied margin down up staffing. quarter SG&A upside These offset $X Stratus. the associated same revenue Allied, million prior in million sequentially bXhealth organic businesses. expenses revenue X% mix and compared On were off of revenue revenue costs. favorable year-over-year. decrease quarter consistent other of and primarily SG&A employee and with sequentially. the The COVID-XX organic the basis, this was by X% revenue of rising down in XX.X% last costs Consolidated with million year-over-year. $XXX $XXX lower expenses, a bad third basis, in Nurse million, acquired margin included was and and acquisitions was acquisition-related XX.X% significant with quarter, prior less in X% debt, conventions, year. year offset lower with expenses, was and year-over-year hospitalizations along partially the gross down In was due lower The the travel and particularly Gross basis or margin, was as sequentially. Consolidated an margin the On or sequential year-over-year year, a $XXX gross shift. points were SG&A

XX% prior division, Nurse revenue year. higher Travel was than our For

sequential gross Solutions of from with points clinician were up also year, last Although year-over-year rate on basis XXX XX.X% was up XX% placements, higher average by EBITDA higher increase Nurse points the revenue prior down up driven was margin was VMS Stratus increased our margin prior sequentially. was was year, higher projects, was SG&A revenue due Stratus share segment reduction COVID-XX. points the Solutions tenens lower revenue, points sequentially adjusted share XXX $X.XX XX but reflected related was of margin and that points was Segment but favorable normal by leverage. SG&A compensation year-over-year income down basis and XX% the on high points in Allied basis declines the along in improving from XX% up million, in Adjusted were XX concluded costs was was margin XX% by Workforce leverage. lower improvement up sequentially. Solutions the basis acquisition basis of X% margin down down quarter. higher from and was pandemic. and the million XX.X% This acquisitions XX.X%, and year down XX XX%, volume. XX higher the XX% year-over-year sequentially. EBITDA was $XXX large $XX prior was from XXX Segment by with margin sequentially. XX.X% million XX% points revenue XX.X% Consolidated in sequentially, was year, million acquisition due XXX of on million XX COVID-XX quarter basis XXX the in average was Segment of higher a worked the margin of XX lower than workers' basis in and margin margin to the prior The Gross above about but basis to Despite in quarter, Nurse third expenses. down from million, February points Technology basis of reduced points year $XX by and revenue and year-over-year mix. Allied from year-over-year, quarter basis EBITDA to the Locum disruptions gross savings demand The and was margin. change and $XX earnings diluted and to than SG&A sequentially earnings was than XX% and prior was RPO. Leadership up Organic revenue down than due X% XX.X% $XX sequentially. XXX% aided operating higher travelers flat year XX.X%, Physician Video. XXX almost prior compensation, and for due from year-over-year, with lower quarter. and EBITDA of points Revenue in Gross bill aided parts prior more the year, the basis of a was $X.XX, margin hours sequentially. was per Cycle lower in EBITDA were net XX%, revenue third of per quarter. cost SG&A points assignment well of higher was points trend. adjusted We year-over-year $X.XX year-over-year, year Segment $X year, reported ago basis this than compared and

of in Our an clients was the strong, was by last last rate of continue in the Days quarter. be approximately terms. adjusted in days, to days on and Cash a four the revenue increase month was quarter with income collections GAAP XX% outstanding quarter, significant to quarter according majority than sales XX higher tax normal end basis. driven the at XX% paying

flow million, $XX in million was $XX the payroll taxes, Third stemming quarter deferred operating increase Act. cash CARES included a from which

during the million. by $X in strong the expenditures long-term $XX debt we've reduced quarter. quarter the flow, With our cash Capital million were

stood debt a million and X. of profile, on to our and majority in added ratio in $XXX credit conditions, we with maturing the times two majority maturing XXXX. pay notes the to extending $XXX AMN market As the million premium our cash at million million actions. million recently proceeds XXX% a use and executed significantly the capacity. rate, loan. equivalents very X.X XX, $XXX long-term ended a $XX we light use Capitalizing leverage balance to of favorable strengthened quarter of notes unsecured These issued X% in at $XXX revolver debt financing In at down the notes, notes our our in August, XXXX, maturing borrowing sheet to moving XXXX we of of on September at maturity of unsecured October, our covenant unsecured truing up and the and proceeds retire by X.X% to our term and rate Then transactions

with approximately XX%. Turning of we range $X This of to approximately X.X% projected expected $X and disruption margin labor revenue, to from $X guidance, which XX.X% year. expenses $XX $XX before EBITDA quarter quarter. mainly X% compensation stock-based other expense down of $XX non-cash of like XX.X% million; integration compared XX.X% for segment expense are gross be guidance is X.X%, depreciation XX.X%. tax change XX.X%. million, to to year million be consolidated questions. will open one-time is be amortization million, call is fourth in million, quarter of quarter margin be charges, of flat revenue. And lower adjusted of of are $X the and to a normal prior ago million expected projected to adjusted million along revenue driven Other the now Operating mix. be by estimates Fourth $XXX interest rate expense of we'd million, be expense the following; include to expenses is and projecting to seasonal a fourth to million margin margin $XXX sequentially impact, includes to to the a in SG&A Reported The gross to with in

Operator

from from [Operator Suisse. first Your Instructions] Rice AJ Credit question comes

open. line Your is

AJ Rice

up we'd - bill I a if like average the is And all in the there sure rate? everything for the a the especially looked I'm that wondered and lot could calculated I all of think not Brian, premium Nurse statistics down, down but was of any year-to-year. in I'm drill sort rate side it assuming the you trend was I know got sense the the everybody. lot the second it nursing up it but XX% COVID Thanks that's on as is costs, and way on labor - also Hi, sort baseline quarter I Allied, related well. to what of bill information.

Brian Scott

kick I'll Landry as correct. Sure, on AJ; well. maybe comment give off and chance it you're it to a

that in nursing the up part You're correct. north second year-over-year. was in down premium first high about We expected. driven response we that of rates in over quarter, we're assignments XX% come in Clearly see the a rate environment did COVID-XX XX% the were very demand large and up in. We by as mentioned wave, and to we

still I any would well you if know, come seeing above down prior May the X%. like in we are last think up thought actually in rates down, XX% to the don't our want we rate other what And I on Landy, But color levels. about quarter, going environment? sequentially. end more give

Landry Seedig

have it anticipating not anytime where changes then And marketplace, clients. we some And see actually back that of fluctuation of now. the said, which And continue we the as should thought from to rates rates popped the we to to are are was kind resurgence really where high clinicians we whenever they of March-April and you timeframe. expect with not our much like remaining and attract we're soon, did, come they in No, demand overall, is demand right just those to see rates, much continue, and saw overall that kind they really to means really high place. we they now, taking down, but well, would

to down how point, rates But hard come some you that is assume to when at some. and much likely will have predict. So pretty

AJ Rice

you When what seeing and nine working, - experiencing, comments appreciate last some how you're is comment element nurses that in hard the you probably about there the given just an burnout on Okay. months. getting I some flow that number a the of willing particularly seeing are applications? Can to turnover ability of to Are of terms more on steady or of are your Are nurses applications? able fill positions the that challenged, you as even a positions to seeing is travelers little in you're fill take you assignment? still are

Susan Salka

team with increase capabilities. that been digital I'll been asked start really efforts, chime the recruitment our with probably marketing and A.J., they've in. able Yes, I've and through the impressed to that both to to way Landry pivot

as they're talk app. is resources record at heard our a about around. more You've lot in do that clinicians moved in Allied, mobile and Passport resources scrutiny, able orders down. particular, We've business a get jobs AMN capability to of Because therapy on and even transacting nursing more front but and us high also also to added as to quickly, Allied well, within though is more

just able are example, significantly we up as We about travelers more as a pretty there have can't if we of upon in been ramp much within quarter the limitations as When propensity never pretty third up and But just if get through some went nursing many up, move nursing growth have quickly. keep we've terms with drive areas our and for it. that business, not an could Allied. But that skyrocketing just It's kind significantly, Allied that. individuals applications we've you that to you we've certainly XX%, just in that could make again, more decision to assignment and build volume within quickly, the are up enough. are applications up we look of at to the seen on of orders had, the

will I in that any color, would helpful? Landry, So add be to ask other you

Landry Seedig

No, right. was that

the in are recruited right year above actually and levels at business. the newly now, they we've actually ever prior numbers clinicians are highest that Our seen

to that's looking initiatives, out the course, demand of and And to the is AMN. there not marketing numbers digital of of members right with kind execution A go of whether of the been team, couple we've in our of are to. then good, are around that mobile investments amount different reality lot making enough team while now. a that overall that's team, contribute recruitment or the So these just things across our different it's just that, and many

a the for it we and attracting, So to to got got it make for to now, make they to got them it of we're control clinicians self-serviced, on We them have apply, are that to assignment. right for find on easy providing choices to and lot to they make want them and for get what easy easy we've them. and to Most us. focused exactly clinicians want be we that's

Susan Salka

- am in helped another really another really And relationship have to sorry, AJ positions factor services great important I that our I we fill just want important our is managed to vendors, environment, think us doing But programs. with had, with the possible, vendors. affiliate add a this continue at relationships. as rapport try placed great their always we've and candidates more to them, to to our as get it to affiliate quickly for and make more just easier to I we're those open build

AJ Rice

you in a one the stands in the is they one jump. I of I add if out saw admit, that area just have such to Obviously, more. growth Maybe to it's would have and quarter revenues that intuitive why not big Interesting. me, sequential could Video Stratus

wonder all about? might I what that's you So explain if

Kelly Rakowski

you're pretty remarkable it's right, sequential AJ, Hi Kelly growth. Sure. Rakowski, and

healthcare down. QX, dramatically remember when were Now services off, they dropped shut

come that started back. early they in So they to decline immediate had QX, an

strong So sequential from over QX. had perspective, a growth we

though impaired. supporting to hearing language well proficiency, healthcare the as both English seen In we've interpretation as to utilization the back, of as those that, need committed remain limited our services, addition come clients

We're that is see support because that of a But year. interpretation, and some them. typical do because will sequential modest our of more of that growth are going there greater to number growth. is visitation reliance setting, a expecting growth, - also think but into continue kind prior We some see still we there not with care QX, double there growth digit in we expert limited compared acute family to certainly members on limited element that be even

into So, that's some and is introduction on well. is expanding that some of a business business very from quarter, sort strong had they as and sales AMN as clients direct of coming the of well;

elements continuing So contribute are all to those growth. their of to

AJ Rice

lot. Okay, Thanks a all right.

Kelly Rakowski

You're welcome.

Susan Salka

Thank you, AJ.

Operator

Sommer will your from from Tobey And question Securities. come next Truist

line open. Your is

Tobey Sommer

think perspective wondering do the workforce a beyond is? linger labor your when there's the How a you. these understand is I of if last? volume of long you may effects. high, effects period, We're Thank and pandemic just myriad the case impacts may what on

Susan Salka

really some child you retirements, about and Tobey, the but it's because job. having in may of for earlier not a than that to stay back education same they time, come for go expected. one, healthcare Thank into at long-term maybe the a for maybe great and discussion. care than just and/or this in making But they They our or also, early lot pandemic, least online that important both rather many because concerned question, stay clients very different effects case, part take industry, commissions a oversee the really us, are they home, or are of losing clinicians the workforce, decision the at needed to home and

to from a things different into and clients the hearing the perhaps we're at try of on One taken they not patient's bedside. the setting, care recruit they is, moved clinicians back have role, as

broad clinicians. more of pretty we shortage why clinicians, and of this an got well. a in is our as particularly belief at there and deepen that So kinds population, the of accelerate That's need point view a reasons all nursing, will course time of right aging when we've

guess be, years, hopefully environment. But of educated living going my I couple think be in the the a over long severe XX-year would shortage long, change. for we're to next will things those term,

Tobey Sommer

in in try you. to touch large MSP won Thank market, on Could you give that MSP your you and us color more response, how on the is ramping? some the XQ

Kelly Rakowski

the this of remains course not prioritizing strong, client relationships. is, Kelly, client only is very of is base, market lot The and and This those existing MSP referred serving, for a we which our the demand is existing well. through are QX, expansion Tobey. coming Yes. of in going The you to

some a particularly Allied with as our of implementing ramped Nurse the smooth and lines very transition in in and are space. made fully them, service well. have We additional Still

say In in very remains the also addition, the market I'd strong. activity

them, prepared this, and for I but of are consultation, fill considering options. demand only remarks, that, providing the advice, also time Not can bring the services them different Susan in mentioned think looking see that in that help this high partners to the strategies partner. workforce clients they we in additional talent, of to in value the a managed very the in

continue this So for goals exceeded heading our new and sales client the activity then into quarter, perspective well We've very and high. to a from level engagement year, remains in active see our XXXX. very

Susan Salka

Susan again. it's Tobey,

a likewise, of perhaps third more orders of the serve to, but around. with go strong through environment because because we this We able parties with some, to not or not added is, clinicians other party. have prioritize strategic them be work might MSP supply just to we've through to even that through In decide portfolio. do Now some partners, to and perhaps some where and to clients we have needed such some third clients; enough not third working had parties, post flipside there's direct that we expanded been and we've and have strategic

people I I They well. new clients, Avantas double-digit the existing have, having in which staff deliver clients, precious Workforce the doing most our I bring both because workforce, understand strategy on very So is think not MSP how optimize and had them contingent organization how their healthcare help or care. can in and recruiting is every because if really really why Solution do get help optimize are how laser-focused nice our that to difficulty here valuable people, bring we and workforce, growth, staffing more expansions they they we RPO this where I for and is just to led do can Avantas is table, is

Tobey Sommer

the among maybe you describe orders Right. systems, Could potential your capacity that? a and of Advanced? going correctly, and remember from improvements to If get to productivity able them onto from recruiting I change your were be see kind migrate you

Brian Scott

not continue support And Nursing months Landry skip few beat opportunity. any onto platform they of the that kick which have off through I a only can Brian, and did and Yes, excited we're mean per integrated did but not when very Tobey, and direct Advanced all additional about not improving already person our move go I'll up. distraction, this production clinical I that they they to is We're - a the it. seeing access back then ask will only be for ago, the We of can and all but better integration, to know office productivity. we see orders, a our color.

deferring needs other that the We've with it remarks, prepared up in the here [ph], so exactly soon prior a we that that. the seen seen Allied, really same lab so still production, positive and And and see and as improve and integration acquisitions on - seen opportunity is earlier very as like to recruiters to opportunity happen, very to greatest us that in only but in where are. demand demand therapy Allied talked The their trends, areas. pivot significant we've gives coming OnWork we we're respiratory we've not about down, and

is them platform, And so pivot Landry, we to where are everybody as productivity anything well. the add? we same our have there and can greatest needs the have drive as to on

Landry Seedig

No, Brian. not really

well. you ability mentioned advantage ability orders our just to clients. They orders, everything, and it be then it, proud talk them but for with we being see get advantage increase our as You've able don't it, And have take to alluded those real their organization about around. performing in on Speed across just resources to is able and were and an help integration to just the shift to that Advanced we'll already to get team simple productivity. enough, them the probably the to and have them get the our to system. of as But and for something real-time there,

investing that's in low if maybe overall, team. is we you those and demand stop into So one push recruitment and lower our from to recruiters management rehab, out, be But in have is resources, as sales Travel pretty team Nursing such team push to them where area and demand our account and and to never able did help our powerful.

there. spot good a in we're overall, So

Operator

And Jefferies. Tanquilut question from Brian your from come next will

Your line is open.

Brian Tanquilut

great thinking demand this you translate at or quarter. first into point that Are into a well? about I as this deep guys on obviously - as the question, guess, remained will into over into - COVID Congratulations demand, QX quarter. strong over I my Susan, this strong carry think carrying

Susan Salka

the really don't We see view. our down. is that demand slowing Yes,

within In been fact, growing. nursing has if in anything, literally day-by-day it particular,

remain they believe surges, Washington recovery, XX hearing leaders, we the in be thinking demand. months So disaster leaders and but ongoing healthcare into going - we that and with the into continue it's second, strong to going will Probably even are very we HHS, are first quarter. also with I another to as the of talk

we're slowdown. just in Quite of wouldn't going continue have still demand much much we industry, I ability make could it's - And to demand unsold grow volumes, much us. the - could significantly the drop to see drop goes a it honestly, difference our because within third, a don't to probably so and it so of think not a that

growing. and the we expecting I'm even honest, the businesses. third across a see going year into locums bottomed leadership in many as, But if have seeing across is talking out high and going seems Nursing they're seeing we're growing search our and their the next extraordinarily of businesses look as at demand as the in strong that stability those but to Interim growth at we and is into demand environment we're Allied, example, the quarter, first well specialties. be an So just Nurse in all levels demand It's And quarter. Allied. not to

growth most trajectory, a of to expect we we our as enter businesses the So new on be year.

Brian Tanquilut

Nursing you seeing non-COVID point with for awesome. a And are us, Allied? mind at you demand what really this That's if and sharing don't then

Susan Salka

best I Landry be that. answer think would to

Landry Seedig

be us able what seeing how Yes, versus to really for COVID to much decipher is thanks. of non-COVID. just It's we're difficult

quite nurses instead patients can and as to, related - COVID course what take backfill a a directly And there, to perm care of of could maybe pandemic. bit a of you an has probably for say mean indirectly utilize we're ER somehow nurses. ER by the the us I maybe their ICU, to You is that, also is, example hospital moved of of what or - they'll and seeing

our public orders not where they I talking admits ER prior of well down. are own as So ER to are can a see we that seen used our to as demand, quite our Yet above up bit that with the reports from be, have some clients, they're year.

So just it's an example not of touching nurse but impact demand directly where COVID having in it's other - an that's specialties. a a even of patient, maybe

Brian Tanquilut

locums starting just I as see and piggybacking about of it. you we're to the to guess, that on whether ASC. seemingly site Got think surgeries the made, I in to shifting, then ED And care business, comment it's service urgent hospitals

side capture are repositioning you positioned readjust or and make or your to you that marketing are sure other it, traditional out you of move things as efforts, to having how sales the So recapture hospital of settings?

Susan Salka

we're demand of positioned just those relationships years There settings. building in extremely we and kind ago. much well We think those as hasn't planting historically in there. seeds But many been began markets

lot bigger, complex very to small in you continue national forward, is, when where I they they And to in markets. more we And believe solution standpoint, actually consolidation going of regional those more individual consolidation and and see bit, they were do to Workforce occurring need been have so, a players in complex, there opportunities a be MSP a and more have Solutions now will starting presence. the and like players, as the Part be we've more past partner. see there you're from issue areas, available partner. there greater and growing matured staffing of strong and get a

So those be trends we going for will favorable think us forward.

Brian Tanquilut

for down about question down thinking Last Is your this it. good be Brian to going G&A point year-over-year. for was me, a starting and just really sequentially to baseline Got quickly. forward?

Brian Scott

Yes, Brian.

we demand saw our of of back. reducing and in couple last decline the second in a in to to the quarter, SG&A talked we we are quarters, pivoted response the we part As

some just there But been lower about to course as think some we automating and like, to we'll of permanent some and to do last tried adding we be - will able will demand. producing growing some resources but then take with hopefully months benefits are of footprints, make we way meet to smarter more back, are things people, 'XX, time some to some probably be it quite over will have how and the that time natural spending. We some our and go into conventions, of whether our several less travel we the the our that, processes we adjustments come I also are from we've be office operate have to

costs, SG&A. we at million stock the adjusted for look you of of the you'd integration the So some $XXX back gave quarter, at fourth somewhere looking and kind if of if you the out comp be guidance, around

want - that our had cost continue part, think I expect We QX. were some the we as - point year. for matching numbers a for suspended move have that's starting plans. then We we good into the year, people and those increase, more retirement to our and bring will so example but of increase as do in to be business. to and a we'll visibility In next we back, invest that next there

the revenue next year, should gave, but we point as good kind increase it's the So a as grow next starting year, guide you and we well. will see through build it QX, for of

Brian Tanquilut

Awesome. Congratulations, again.

Susan Salka

you. Thank

Operator

Fischbeck from Kevin will from of America. come next Your question Bank

Your line open. is

Kevin Fischbeck

to into But the kind Nurse to I like all-time saying Great, QX high side. and orders are the high, it thanks. bit. is orders guidance. a Wanted you're that are this down, know, Allied looking rates highs, little even guess down you Allied you're even the flat though on of dig are therapy at sounds

[indiscernible] piece it can't them does fill order So what is that you some explains think? the fill down, is other why - or there is you that might exactly

Brian Scott

is this Brian. that I'll one Kevin, off. kick

prepared is the talked we few in dynamics as about the different that there So segment. within remarks,

least be year-over-year. did at For we up XX% nursing, mention that would we

increase going we the be cycle XX%. a third seasonal at levels rates down with see that the the down into into to in quarter, normal the that's in improving mostly the in schools the range. similar we is through quarter. So and still that of And mentioned bill do sequentially, but year-over-year expect a continuation also recovery to where the then had revenue pretty pretty third the business, performance increase saw through will quarter, in than quarter, little better volume, recovery saw a significantly is be we significant sequential heading Allied year-over-year XX% fourth north third although about of we we we

the this And fourth also an quarter, I'd a year this X% headwind versus the had year, pretty the last last at million $X looking is, in drew point. then a significant quarter at million itself about quarter. that's on about about offset. had in a basis. That thing in We strike $XX year-over-year So mention of we

the up when flat of, you pretty - basis. growth strong out, growth with some a end pretty all nursing year-over-year net in So But kind business. it on you

Kevin Fischbeck

Okay. something there they side, think locum That rate highlight But makes kind to sense. And else $X QX, lead that then does generally this tenens actually versus guess, year-over-year that in it that will there is a slower million would like on there the growth of would anything benefit there? quarter. a that is would I you QX speaking, it just highlight? I [indiscernible]. or you Is else is

Susan Salka

you Kevin. million was Actually took would the been up. driver, really the out project, if we in $X that third primary have that No, still quarter,

kind So trajectory. we seeing - of continued a good good are

quarter, really to we'd good third project If is you only of the quarter down sequentially, X% to X% and quarter. apples from third out just fourth X% took that's to be the that actually usually apples comp, because to locums a in and sort down third did fourth

in shows about growth X%. that So down are if business, we some the good underlying only

a team rates So are there. there. up fabulously, bit executing actually some really good and trends is our The fill little

on So good we're I path. think a

Kevin Fischbeck

orders increase else is of that there far But besides, there nurses do is back? probably question, pandemic? then - the start it to or lot could travel captured of supply And willing look to there, up is holding guys the available, you are are like or doing of far not placements, you that maybe Is the that number better, I speed like sounds that just Are do you it side? nurses especially you as there demand, kind the will pricing? a you anything the new sounds anything you then get to stripping at, your guess think things gets to capacity. can at the Because will last that And orders. anything can the growing Okay. supply better, raising during as actually that anything as

Susan Salka

Yes.

we significantly, earlier, of mentioned unique think the on assignment up applications is number as quite our and So, I clinicians new new going are actually up nicely.

that but Just place sheer as and bit volume is take there right and them them can we've us, of massive honestly, does up, amount It that's not some to we've pouring people you people them, lining course the into as roles, for of the it's much quite the just and to the number, just as of then an the that problem time received orders convincing assignments and orders we received, to in, higher these credentialing a whatnot. recruit make would aggregate of a you not have months. a that had last over matched lag take few if when and those even are from more get it difficult, assignment,

to made all train. number of about on been and that put people investments team has quite continuing So, I talk Absolutely, the digital we've assignment. will we're the we Landry the and new pleased actually that making. so we've the progress with Could get let more? that Certainly

easier job, impact. course, people assignment, hiring bring be some will great can on have Our nurses the make existing so more more for more even instant recruiters we of more recruiters get attractive, additional into are internally, that to but and capacity then Anything in those we rates, addition redeploying pay probably, are have higher doing we a with industry. and they to it to do can people a

add anything that? Landry, to to So want you

Landry Seedig

of fatigue strain rate talking a even just just availability pandemic, out No, about that unemployment this through lot even and covers further quite there's it. of the there I that's the just mean a they've before on gone that burnout excessively and had we're an an bit and that low put occupation clinicians.

short It's for So it's not a an the reluctance overall to just occupation. travel. supply

Kevin Fischbeck

Are the getting that a existing they now time, from because you tired so the actually share So, do clinicians? and and work just are easier bigger it full-time you to are you you're you've who getting of of far, pool? made gotten - want working part where or get people you've

Susan Salka

there have It's convert bit everything. into are a really permanent nurses of to decided position. that Certainly travel a

as went ago, into what permanent Some recruiting are lapsed Maybe would who they of and we're few numbers for into travelers, now Those a us. role, up industry. them a with back well. to even, are we used us work call the people years

competitors, from into doing a in were who workforce, or are assignment. difficulty is More off, else we're maybe quite the something Some they everyone recruiting. position. back so, were recruiting or but laid having flexible with nurses a were honestly, but we're in them bringing traveler permanent then and Perhaps

environment, Some a might current role as need nurse. to be burned today, they and in, overloaded to work their they in want continue want what and are permanent out a and a and and do they in love break. But do they to

a very - calling so They nurses profession needed to they run a most. are toward And where have very, special are special people. and

as think the to them. opposed probably as there more aren't we've I But see enough environment, so said, of them a the with And of running in challenges do away. that toward running just profession,

what levels, will the up historically. to higher our higher with course stay at continue recruitment industry. the ramp orders people marketing into We will efforts, we've it rates, and attract our more seen continue efforts, to of longer That's pay

Kevin Fischbeck

Thanks. great. Okay,

Susan Salka

Thanks.

Operator

Your next Ramgopal from from question will Sidoti. come Mitra

is Your line open.

Mitra Ramgopal

afternoon. Yes, Thanks questions. Good taking the for hi.

lot the of guidance, be we've just that if it flu looking is could there? actually seen and at terms I of wondering was in your in baked wondering thoughts people I in what think years, season? First, the am than of Obviously, a any worse previous

Susan Salka

they any material and flu staff clinic. utilized was some for into flu. clinics years that have many impact flu to do testing, We're with a us staff, swabbing But can individuals and/or that have than now for a vaccine perhaps is, staffing clients bit that help what do this off, drop clinic We when not keep so those is on from higher those little hearing administration. vaccine a are there they we're available, services and from expecting regular large intending demand rather year, flu

quarter, or be while see more related longer flu So environment, flu think that extensions, it that clinic clinicians a first will specifically, dropped to that those into, we have the into where perhaps you perhaps And the fourth end have quarter. normally I'll to bit flu it brought Landry, ask the are related volume we'll little of and are continue a closer more you at since in, off won't chime this. would

Landry Seedig

that mentioned thing isolated the a on then they'll it's on on that be - even hearing, real we flu it's our one and anticipate things, orders. other just you winter wouldn't that. more able would to that just And be utilize see of them for the to area, our maybe is could then But other maybe But Yes, Again, nothing something Susan not part big really of flu. material it's we're that business. that's - what clinics.

received winter we orders as noteworthy winter that The orders that did years. we in nothing year, that that we've real consistent very what Our labeled this on come are prior in, well. with as seen

Mitra Ramgopal

can the the given get partnership, great. then And I an if out you're seeing. was I wondering, that's just Randstad know Okay, update on there shortages I

wondering see incremental that arrangement? ease into maybe the there. was it's your I driven think - if it, know in you're with being six to end, able only to to I was I some starting of it's but terms already meet revenue benefits intended on help that or if challenges things months out being

Kelly Rakowski

for Hi strategic other us contingent nature, a administrative some Mitra, By important from off to one it's able to start. round primarily Kelly really helps Rakowski. The non-clinical strong staff and really out roles roles. Randstad relationship is standpoint, professional its it a and being us, really a

kind is perspective needs, So in say doing, a right include of support renewals perspective, now seen relationship, all next additional and their our our would ability from year, half as our there? them funnel for Randstad nursing this with our year, more what of our does well. in about several a to give opportunities I XX is and holistically of us top Allied we've really But it there incorporate our Randstad really serve supporting clients of lot into and of it of

the So more able the again are them partners seeing consolidating value holistically. really being to and clients of help

far in we've So that gotten pleased we're really with the so market. the traction

Mitra Ramgopal

strategic look not again, given well the necessarily? something such more how Okay, we probably in or in that's of that should progressing for future, thanks. is And less partnerships, terms

Kelly Rakowski

it Yes; looking all. we I mean, know do mean I are absolutely. we - we can't

out, are So and we look as have a easier strategic that partner, going complementary help our capabilities we to where us it clients to for access that. to make round

partnerships So we'll the of other strategic that certainly achieve us look that, to on behalf like help market. that

Mitra Ramgopal

Okay. Thanks for taking questions. the

Operator

And question Mark from from next your will Marcon Baird. come

open. Your line is

Mark Marcon

to Hey, how and running, mentioned my thanks relative about and they, I how little applications year you - ago? up, for if taking was the question are bit talk the are wondering just could Susan, store a you a much congratulations. rates being

Susan Salka

seen. just Applications and nursing to it's are applications Again, number rising in keep of specialties most sheer enough up that up at the demand we've with new in not in you aggregate, the double the Allied, look if similar. digits in volume is quite unique

couple success prior are anything need applications? our strong have and just do delivering in MSPs at you demand critical our affiliate our aggregate the our the for vendors and why helping fill last And year, are in than lower to regarding part rates So very to else of skyrocketing the have months. in a moment, actually, we new of that's clients. because Landry, partners of add,

Landry Seedig

to Well, just as fill in the right. it that's aggregate rates, relates

that you of percentages due and But through this you going looked if and are see it whenever our at levels wouldn't Our to us rate client on accounts, much are fill high. impact, prioritization, demand an that's down. doing top

to obligation more strategic our support So we've an got customers.

primarily course, MSP our that's Of customers.

with. we toward And The of good have our really of not them help solutions that lot got so is efforts directed efforts, can customers tell know, a our to we've a different don't those put accounts. we we if news all lot other of that,

if our a So hasn't just customers, look fill at you rate. MSP impact strategic been there significant top, more on

Mark Marcon

to of in services, great. Does hold how clients fill up going if mean strategic deploying end some for able MSP to the up actually up other those for to locations, - That's rates? going terms you're accelerating of that other you're in you end or are that

Susan Salka

a great that's Yes, point, Mark.

issues, myriad bring to serve well, multiple workforce holistic services of to our is management part of They strategy in a very want have know time. so that solutions You to to we a and our them. clients at and different the way, bring very right

now, right understandably them all for on-deck is hands and Now even. for it Nursing Allied

in within building like new you'd or whether adding this business. in those crisis Kelly, just we're may renewal, not we and success even arise a trust, get some the however, the relationship immediately, can needs the else many into we're though time, months. over add? we've even additional expanding, signing of So we additional way we're for through anything need as add we're and situation had those time great their in in services, renewing, next, We to help to relationships. clients, of launch at them that cases, because services it be the all But

Kelly Rakowski

have Yes. and in so high are And think our I I being fill when this, the they despite like you would too, crisis have that situation add a where still as to up, gaps demands rates staffing.

on we that different a differently. more really help partner, because partner and staff, holistic so they how we optimize them And that schedule that a staff, focus outcomes of across their hire solutions help they more makes and retain how as permanent valuable The bring solutions. at stickier and solutions can up can myriad existing have, we how look they them can much

got they our - trust have and clients serve other have, we've So to that your and we to right, the got of back point, original in to to credibility perform, ways. so you're them perform we've continue what to we in

Mark Marcon

is Great. little And travelers, a Nurse imagine, then, being your is assignments? are talk by take little in bit of a burnout terms you willingness and what can their about I you current impacted the what everybody just follow-on seeing bit - stress. to

year? wondering, what take in terms it the and quarter, holding about perspective, forecast this of pricing what you into that not does - the next So but going what's of, from what up seeing does course just are thinking premium only over

Landry Seedig

is Yes, Landry. this

wave - March-April period then. lower if time and timeframe, of back a So you we have duration the or that that there, of end that, the went back the first was bit in assignments to little

for just So we kind to of from of them. was that lot Things four unpredictable. XX-week little a that with assignments. the then were down And kind not didn't jobs did clinicians wasn't there, and have more went - were we didn't and weren't so seeing us, want the seeing a week it we assignments, six the it demand the of whole we of stay overall,

last to that them And maybe us, statistics high. actually a then what point. period away where used we at you and are now numbers getting so we back. - work saw call we they weren't traveler major and clinicians a where for go went for through it's we're as are, high they And retention actually a measure lapse now our travelers, And month, our

a - that lot we're a So there's supply of demand back I'm sorry, assignment. putting on getting of back, lot

and back all means which positive. are So so our we're are new lapsed our placements then those are getting up; that's applications clinicians, two our new new that up, the areas travelers primary

think for think it the to As we're here we now, we going it's - some that levels it's stay demand seeing to away. relates time. We that don't the right pricing, the

best the about to is, way to demand. think pricing to the relate And it so

right so down expecting And and now, come course, not we're at anytime soon. will some probably it's - predict to but But the some. pricing point, hard of that

Mark Marcon

think of tenens? one, And impacting the difficult next do ends over Great. how things up course pandemic if you to be with the one then locum XX that last the just continue months,

Susan Salka

dental pace. I I not will at be others growth. or advanced reopen will as continue areas, surgeries - to elective we We're slower see such seeing practice, think a be faster some will there growth, other offices and we're mentioned, now and seeing CRNA, radiology anesthesia a

shut through it would of COVID We everything be in bring see would big some But grow are there perhaps seeing specialties. for we us of growth those would uplift more do quarter. particular in matter, to resurgence, to gave specialties those again, the it. that think had, a impact would down third we continue I orders but that it back now, that the that such that that And areas some related if the it were

rather environment, some would course opportunities volumes. we we Locums of deliver in subside, I normal have growth. still to get But So if are things this we we'll think back and resurgence to for some

Brian Scott

add they as this around to and our well, Allied. with us really as I believe engage this value a we Brian. in experience I'd to locums with efficiency for hyper-focused think, savings. for clients - and thing Mark, are demonstrate cost good can that there continue Other time - MSP is is Nursing is, on through is We

as opportunity customers again, as value So service environment for managed look is we a program, could in everywhere an and well. we that, like And to us this, give we a big cost efficiency they savings. proposition clients, think can and clients grow, would ways - we talk more if can about if transition think and that to are for engage there even at looking they this with time really can to more a we we is good

Mark Marcon

taking the Thanks Great. for questions.

Susan Salka

Mark. you, Thank

Operator

will Your Sam final for from Kusswurm question William Blair. today from come

open. is line Your

Samuel Kusswurm

Am afternoon. I through right? coming Good all

Brian Scott

Yes.

Samuel Kusswurm

Excellent. Few actually. questions telehealth for

and share AMN of was capabilities, With itself telehealth the Advanced telehealth wondering within both Video currently the where if and the of larger Stratus kind I acquisition could you Medical sees in market, future?

Susan Salka

speech because still where our and this to also about our person during or platform deliver we mentioned, And some is their Televate great happening the the up primarily other been you is adoption have that around therapists there schools of done of the to XX% and because either that for last as continue that, locums, for to speech as our the we with be to enabled both in eight aren't to our think already and sure, to some the telehealth has has care remotely them going have that Sam, of you searches telehealth whether over a relates the our That but for been has it I then have or up but Thank willingness is benefit able question in been staffing acceleration over And temporary necessary. as therapists, degree. and accelerating standpoint, in opportunity very of from it at very clients providers relationships with lot participate schools to some time, We home. great enable because Advanced, providers. And capabilities, be when some telehealth. are with telehealth certainly of schools, months, they're therapists. it platform coming a own a even person the year-over-year, in of and telehealth we business Televate actually permanent in mentioned, we've to excited uncertainty

I is capabilities. gives did on we've to fantastic strategy. to build necessary. as we and capabilities developing is adoption, seen around a there it, I the bit the there a on be device greater and to oftentimes there person. on of think during already our when have that opportunity Stratus, so a can right the patients as working that and in you us second We and continue we with an features they forward. strategy don't help earlier, just quarter, place because care clinicians then if interfacing child, at interpreter upon, to think going platform little Stratus, that is also necessity Kelly between connect have opportunity, clients couldn't a But as that And platform mentioned a think can a and with add Televate to site, therapists because really you was Regarding is imagine, team speech great patient there and a a deliver we an great have even we

platform their go help in that platform. is And to so where Stratus providers, we won't deliver. so into around we've and as they EMRs, into interpretation I want technology into multiple And partnering, opportunities, things other integrated better integrate our other capability Televate, with can there do such services we that can

a prepared invest. out in for to as why tremendous clients our is this which we'd for see we and my capabilities bear, it to us, to opportunity that called I bring these So, remarks, for is continuing us be

Samuel Kusswurm

leave color in there the there. I'll he will - perhaps Well come but appreciate next myself the it Great. quarter. there,

Susan Salka

Sam. much, so Thanks

Operator

We further have no questions.

it will Sorry, back have no closing remarks. turn I over for further questions.

Susan Salka

and was call, I thank Thanks but so And of much, questions. cover a fantastic had know everyone. a to it Michelle. long lot lot you we a

us forward we very your everyone today, and And are you We joined next in to updating you we look earnings on call and wish our that grateful well. February. families

Operator

you, This everyone. conclude will conference Thank today's call.

disconnect. now may You

AMN Healthcare Services (AMN) 7 Nov 202020 Q3 Earnings call transcript