AMN - Earnings call transcript Q1 2021 | AMN Healthcare Services, Inc.

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Operator

Good day and thank you for standing by. Welcome to AMN Healthcare's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded. now today, hand Investor Randy would to conference Relations. I speaker your Reece, Instructions] like the to over [Operator Director of Please go ahead.

Randy Reece

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

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

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

Susan Salka

Thank you welcome call. and Randy, to everyone so earnings our much,

lot of share with a to positive today. news We you have

be communities is the midwives impact Year for the by course, more are However, first celebrating as It did communities we most Today our our would early staffing meaningful financial globe impact any profound around from like are Nurse's somewhat would our to and healthcare clients, care we have and including is professionals we those The of nurses the the than of just to we ago, our part a deep is and gratitude. for of recognizing last results of of are colleagues' would company. heal hard the message and our reporting. disruption nurses thought shortlist of made that the months fitting the provider believe to who Nurse, I COVID-XX, one is and a the of extend that year is appreciation largest family. day nurse AMN the and XX little that Week, and official International on solutions, the our stages their important the congratulations of pandemic lasting It a other special what contributions. to important in around we were and know, events world, country,

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years closer moving to for to likely our feel healthcare pandemic, the labor are force the will aftershock the we While of come. end

on with million this year of some healthcare the retire delivery Some schedules pace. adds partners workers surges healthcare vacancies quarter dealt XX% people their and than cases urgent were disrupted. with labor first our industry businesses. longer higher leaves; with high many sooner the have all more financial decided in front demand what fourth saw The for profession. across taking the are extended altogether of record others an had results team our our before. The high others careers quarter, all supplier contributions their to of become unprecedented on this to never planned, In We levels seen challenging, revenue work impact lines, left the mix entered of than profession ramped levels traumatized the or to and by AMN they have many $XXX the at from

segment, and meet demand a This in driven Nurse historically environment than experiencing largest expected the growing because are in revenue average offset was first ever had critically orders AMN to availability demand healthcare in to March, efforts Travel part organizations of which a wages for demands. however, travelers the elevated Nurse extremely nothing surpassed again rise year-over-year. short million, volume normal our have attrition Pandemic-related such astonishing large for levels. permanent has was of higher The move at and we had The our rates fully XX% and they was XX% needed on higher market higher supply and remarkable worked. $XXX in placement new hiring. healthcare January, seen assignment hours quarter Nurse have peaked assignment Allied clinician to first starts. of needs and cannot highest talent Recently, clients demand with returned Our temporary constrained delivery and temporary We for industry. XX,XXX Staffing professionals. the entire Solutions, time, number in and short attract staffing team these year-over-year, up bill of Travel service their on high

to businesses risen is grew the our X nurse business. straight our One like all significantly all fact, first orders mention, specialties weeks, have Nurse however, and growth Travel with staffing across for local during quarter. In geographies; total steadily standout I'd nurse major demand

a While up about of segment the revenue smaller XXX% relatively part was year-over-year.

these close might to bumpy strategic however, made transition, the staffing to this has us be for history part branch You ago and business. last we a for in was year, the a changes years our driven team highest offices of to vital this centralized several in us It to of and revenue model. AMN success during enabled proved technology that move recall the a shift quarterly achieve this

Demand schools surpassed revenue, dramatic XX% For we sequentially. surge $XXX made therapy sequential businesses in also year-over-year across staffing time executing a the improve Staffing the major ever, and our respiratory solid in the this stronger quarter the all by revenue first up quarter in growth in lab disciplines, allied in and XX% bookings million our April, and Allied team XX% Imaging, is Allied growth. is second quarter. and through year-over-year expect but to enjoyed market. continue and extremely well

Our revenue the and solutions cycle quarter. sequentially return in quarter, grew year-over-year X% business growth the also in first should current this to business

fourth comparison high by best of core The Physician XX%, Locum quarter recovery see most pandemic, even is in more down quarter pandemic six the Interim $XXX X% the of X% executive expect us to quarter. by year-over-year; and XX% revenue led we promise Core Solutions growing team demand we rebound Revenue jumping with continues the account the this tenens pleased XXXX projects. segment's the to fill from Leadership previous in above rising all from the better Nurse was rates of months first Physician was delivered MSP during gives revenue the segment with fourth since over strategic and came Allied included X% to of and quarter higher the of first to and Solutions quarter the and year-over-year quarter, rate million levels, which than vaccination decline which and coupled the our disrupted at improved above quarter. the second growth had million, For quarter. in in strong pandemic-related was XX% in return and business also half business began second million, strong its year-over-year. search revenue on fourth locum's were revenue relationships. year-over-year the businesses segment be at a XX% year-over-year. $XX rebounding leadership $XX nicely the projects. up XX%

year more the year-over-year, in million is this known a a language pro than VMS, XX% formerly considering had only by job that quarter positive XX% segment revenue Workforce growth Our second business services the and grew to with with for quarter half of organic new AMN outlook Video, compared particularly year-over-year, and of our quarter capturing $XX basis, be Technology this expect XX% X% revenue. quarter included pandemic-related demand. past Services, businesses marketplace did Physician Solutions revenue In VMS be another Solutions an bolstered ago. We On forma talent XXX% excellent a a solutions. the as quarter. for year which first In as only segment, up our year. the for outstanding were and Leadership Stratus second we wins RPO is approximately brought number this grew to revenue in client owned open Language versus quarter first of XX% prior

with be for was In Solutions and the year. prior for million than Technology quarter, we growth the VMS sequentially. XX% for of rate First second more quarter up Workforce $XX compared revenue XX% segment year-over-year, to XX% revenue a expect and

the deliver culture virtual in Solutions traditional manner and care in support Synzi greatly medically in team is these We regular past X opportunity clinician. next solutions and forms colleagues for in care including have help we through conduct to staff over care. has and and This and virtual with cost-effective strategy services We offers strategy are you our been to technology. to further position care clinician virtual for acquisition interpreters, members to technology acquisition platform AMN's Out participants enables part beyond. deliberately of patient delivery great staffing impact our Workforce our augmentation the with physicians, sees positively post-acute cannot. AMN organizations AMN aspirational. more to the for outpatients, in included that AMN clients to out family expanded Over and their post-acute their our mission changes XX improved hospital. to moves to in the can care can opportunities patients industry serve; year, healthcare and goals for leveraging creating secured support of the marketplace is the ways flexibility holistic communication, virtual April Technology Multiple and care a of start and most difficult be our how as ability reach enabled and visits Synzi. by caregivers. to nurses, business clinician and solutions certified years

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turn of, Brian, we work While day colleague, we few a impact. will the is In Q&A the Kelly, there make be will to greater for a join to done now, more minutes Landry to more be over session. proud will every and James have on But for result. insight that know provide our who us call to I much our

Brian Scott

Thanks, Susan, for and call the thanks, today. everyone joining

continuing recovery in quarter range. Included million quarter. stronger is in revenue, guidance related this quarter, $XXX and tight labor with market the above $XX pricing our demand second the line caused First in quarter which expectations. be expected revenue and project non-coverage of trend of was to The well million and was approximately into very this vaccine our than volume first was

compressed decline. First XX.X% due XX% from revenue, down at Sequentially, grew XX.X% other in favorable of or was million sequentially. drive XX.X%, of quarter, and The sequentially. and quarter the and XX the sequential to marketing nurse XX $XXX million than supply. sequentially. year Allied in benefits, compensation above rose the consolidated first a basis margin of revenue for support year employee additional quarter. ago increase with The Nurse to SG&A increases candidates $XXX the of or was business the XX.X% also pay the from mix revenue Nurse in growth were XX% growth, of mix. revenue margin expected XX% and spread Allied lower margin reflects prior and In high quarter, our driver in end million, of revenue. year-over-year the SG&A Staffing end to the revenue expenses in operating than margin staffing, million was or guidance vaccine-related change outsized the bill XX% variable points $XXX and was leverage up higher in $XXX a and higher expenses prior projects, cost basis, biggest Gross overall points a relative Consolidated and and revenue business On SG&A range previous lower lower which basis and year was year-over-year quarter our compared

Physician margin year. year XX than year-over-year a Allied XX.X%, points by Technology million to volume worked. year points from Segment The XX.X% mix and million gross XXX points basis returned an with net on year-over-year, down better Solutions being after assignment leverage hours margin. points per from the sequentially. XX% $XX Language to growth, million was of of For to basis average gross the in diluted XXX EBITDA XX% of profile. up margin the was of points and EBITDA $X.XX for business by Segment X%, from segment. income quarter on the as higher growing average margin points in The margin in days The and first XXX points business was prior strong adjusted addition $XXX $X.XX lower increased XXX% year-over-year over XXX XXX and growth. The points days, up services than Travel XX quarter the revenue Nurse, year XX%, With revenue We quarter. the quarter. XX revenue XX.X% and due margin basis operating Locum XXX X% the and of of lower basis EBITDA an was within from segment, per the up segment quarter. the revenue fourth in Tenens share the and points our of driven higher XX% margin prior up were first driver increases of $XX business. year was shift higher the Adjusted up from year points first cash outstanding up and in year-over-year EBITDA Adjusted approximately was of by prior the higher margin Services segment largest and packages driven year million. Nurse was sequentially. earnings down two XX.X% the points VMS grew rate Operating last over margin sequentially gross capital prior gross business of and down year-over-year was higher sequentially. basis quarter. Solutions to X% EBITDA $X.XX XX% along year million. basis clinician was higher margin were significant was growing was leverage average in sequentially. positions. Leadership basis and main in $XX sequentially growth. quarter, Segment ago travelers improvement DMS was operating offset and basis basis and compared nurse XX.X% Allied revenue higher this the revenue. primarily expenditures $XX year of the revenue, $XXX XX% from margin XXX down strong earnings Workforce quarter quarter fill collections by was prior sales a XXX Allied XX our in pay XX% points million, year-over-year, organic EBITDA the up XX% last the was Days was higher sequentially. cash growth, and for sequentially, was XX reported due and segment growth was the basis mix language bill XX% X% margin as prior sequential by basis prior up than year-over-year growing during changed and acquired receivable margin higher than XX%, accounts for operating the to basis leverage. Consolidated and year-over-year first XX.X%, revenue flow was of increase Segment sequentially. share Gross segment up more

draw million, of the of of of a million We XX, line March with we cash credit our $XX a $XXX acquisition. which for to As X. million included ratio ended had X.X times and Synzi debt equivalents on $XX the quarter leverage

XX% to to vaccination year. of guidance; to a includes than project. are $XXX quarter million range higher $XX revenue of consolidated XX% in million; be to approximately second revenues to turning This $XXX related projecting Now million we prior

XX.X%. $X XX% to XX.X% depreciation second Other other adjusted now EBITDA million, to XX.X% following, for XX.X%. questions. are non-cash be $X interest of million, to XX.X% is the Reported margin margin $X and quarter projected amortization turn expenses And of expected $XX be and integration adjusted expense is and the rate like to margin projected to stock-based of to expected to quarter we'd Second XX%. include to SG&A gross million, revenue. expense Operating expenses expense $XX to expense XX% XX.X% be be is million, tax of million, an compensation of of of call estimates

Operator

is Please response from Your Baird. Instructions] [Operator you. first Mark ahead. of Marcon Thank go

Mark Marcon

And Good my the the also for address you results, and to you unfolds Congratulations burn likely afternoon year second occurred think that out team the How question. see with the thanks of you've I'm what bill and you thinking crisis. Allied? rate think do are as in nursing the to in because how the we're how through thinking to and perspective in year? Do about from a the about and the entire bill just taking are shortages for remainder elevated done you you that progresses? order that that's the rates Nurse that? wondering quarter

Brian Scott

appreciate and get have Landry to I'll Mark. provide as Yes, little would additional it I of great commentary the a some bit question. Thanks color well.

So like the as then first would we start decline peak last and mentioned rates quarter. bill feel in second on we to into the didn't call, the quarter the

around out with are coming in already We in the first that. discussions clients quarter

bit it delayed supported, obviously for for have we when was we overall expected. That something it's from our has the occurred, think more little clients. industry we And a better and

to care. every sure started them be orders the I labor to but would difficult to actually that to the rise to make becoming see clients with their it's rate down trying again, have step tight market have that very and talked deliver at we're patient with day our very and think maybe that we them they to see with really tight thoughtful like staff

the been that rates expect As and bill we it steady we June, second I But was anything a will little decline rate of decline does second end in look quarter, quarter. of bit of as to than and there? Okay. the to that has that that's starting April a the bit we quarter. third of it's of expected did and again, continue later the Landry, May kind reflect at slower guidance from the to in decline well. mean little kind point the

against that kind expect of market to So through bit I that's that normalized little delayed what was now We'll of up then get normal just be the year, still labor right the we'll we higher further. end trying we of than were closer already on last think, we - to start in the still we're tightening that. time just to bill inflation, the end pre-COVID, - and rate the

certainly that number the we're unknown but So land come we've is see eventually down.

Mark Marcon

you how demand, continue that might And Okay. obviously have do the internal to anticipation come the a you while with hiring the so the manage - high how really down? capacity, internal of are still you be level bill strong rate things

Susan Salka

Susan. It's Mark. Thanks

are We our across really relatively strong most of demand seeing business.

returns, layer much aren't a elective and return, in are the disciplined, nursing, which advanced all they even want we're utilization search. make to core talking, most we healthcare across growing very I while factor question practicing, then of businesses factor specifically. and your physician, on I have So demand about high in nursing, across as surgeries and think is point demand shortages of strong the a just executive our kind that Allied staffing-related you the attrition

adding we And last various and to so jobs filling in those for started our staff trying this helping permanent them course the and so year, year. to in their that are businesses, do help seeing continuing cases, temporary we are but hiring positions. not began grow We in clients across only demand

businesses. way we And sales top jobs. I really are can't quickly both, that, has Nursing rapidly job our enough technology clinicians out have So team and business they that a is in the done enabled reaching great us and say obviously so that to on are Allied do about technology and staff some say in and and the then placed teams to and a our get sequential people others members getting more in of our of want the the on quickly. adding in deploying capabilities but up some across more we attract basis, more recruiter new

to So that really make about, the of move Passport AMN power the those decisions. in more and put us has who faster actually like things clinicians helped of we've the talking been hands

a I if that to the capacity. we're handle just I know or Landry, there. else all that's make is that don't So you sold your things doing sure can add couple to of if there anything want we thunder,

Landry Seedig

No, year, higher you but of also It's of now accounts but course, are our prior are I mentioned, mean as in we covered it than most seeing of some right we accounts digital still recruit year. low kind are have teens higher of the investments than have. Susan these that prior

seeing on actually our a helped person, but over prior sequentially those quite it's So we're so also production per year. bit a lot

and a to the we advanced got we're we them Nurse Allied seeing that on we their on digital the talked medical about acquisition things since related them So but the got production the side, also to that both and system. that we on team; couple so integrated did of side, double that and higher

team help retain a we've able bit. So getting clients great success just it's a that a them been story it's just and to integrated out our and great really

Mark Marcon

much. That's fantastic. you Thank so

Brian Scott

Thanks Mark.

Operator

you. Thank

response Securities. Please Truist next go Tobey from with ahead. is Your Sommer

Tobey Sommer

percentage about weekly clients of my terms a FTEs of staff, of you some or what make available way of metric to pre-pandemic Could either good from you in or there? other their is remark hours If prepared that? Thanks. available there about to hearing some versus pressure translate that understanding full-time discuss kind kind solidify of you're did deficit the internal

Kelly Rakowski

good of that mean response, working expect yet all safe I care. and But it's quantify care that, know our we There is they workforce can also have are and the staff. vacancies, of leaves the clients are I them those significantly to appropriately you level the double-digit responding of are to how help to our our make through Thank with optimize they for Kelly. we on fatigue you of trends what continue. it's I perspective. supplement contingent Tobey, with to and We're they address workforce sort those have they as of clinicians but say would third how sure still question that strategies Hi, growing analytics I to I will and existing for tell that of and the provide overall that some well combination Tobey, from is clients take continue workforce, that hours solutions difficult don't and attrition, a question. of we're elevated feel or of persist. levels impacting to - long we're part employee of to I'll maximize that FTEs, absence, a to from work know and hearing a our in your of continuing existing think those from of FTEs you we optimization things of extended course, obviously exhaustion limiting facing their of them working give to clients; had take rates full-time most have sort just little a what their will percentage, gaps

Landry Seedig

the that, a seeing of kind not to it as its this for And just about today a very of hearing but fatigue Landry. Tobey, commission. real. prediction. talking time burn that was that and we've a that demand and they they to that that we our today of seeing they lot shortages mental due of the we're have, of what add I that I health from to the vacancies just would the lot across been We're a long we're out have few board clients believe is clients that and the and almost amount just mean, from relates kind

Tobey Sommer

the doing at clinicians that we are your - you see actually changing business your by mix home? a if Thank you. shedding of look acute outpatient how From work overtime customers; where do sort mix the for

Susan Salka

Tobey. Yes,

part to Susan healthcare they more important following will across the and clients our our we acuity acute believe continue Certainly, diversified an and the settings. expect aging it's for now. we We population; setting the matter of here. care of so to that population, the continue volumes outside vertically aging more delivered grow So acute care acute that that becoming trends have much very absolutely within many care see a and are integrated will base, of be will with care client to be

clients So to capabilities. be only But not a and home special surgery, becomes we're ambulatory but the those well, focused to projects, as are keenly that that that there yet in assist relationships. but of those have that good the another staffing health, partner just technologies have. need telehealth why provides to the care very made, for but clients it in that, and into they addition on to them just them, able Yes, we challenges is the continuing in also serve with it them just to important us and markets, not acquisition we serve opportunity Synzi staff setting, workforce which the to those we acute so outpatient with be build

our us to these see evolving you'll we those into continue investments make to make adapting sure strategy So and are that growing market.

Tobey Sommer

open-ended Thanks. curious in experience; the curious the And for it the the pandemic credentialing and/or had if changes you. I'm industry, of impact the the areas company. candidate I'm licensing, might where most just not among on so has make be sort

Susan Salka

Landry then it about board. So I'll address the it's really to to talk perhaps and experience licensing, the up candidate and across open because James

hard of think always likely but I extended; the orders minute, we them are licensing, extend most last in of but tell and/or our also are little most to will last that friction terms it's be at with those to But a licensure them made In crisis expect that processes the states the less to continue would investments put over and expiring and they a know exception, tend get going more to continuing, credentialed those you way we swiftly news is, continue of and off. our through clinicians to also lot have automation, we good we've the that quickly, hone that year been paid able year. in have the

the in crisis can to of So it's AMN they a of for documents, the we'll and can submit that's Passport actually we a opportunity of think easier them having hands see in made process, team. an is that, process they're in to of lot retain them. at to with end, we be put self-served communicate really for progress able And our up upload clinicians, speeding comes the more even when the part they big licensure been our credentialing where

to So I to technology industry more efficient, that experience and has last use forced smarter better the actually for candidates. ways this year think create in be

with start have anything maybe Landry, experience. So else you add if you about to their

Landry Seedig

be. Yeah. easy move Tobey, mean it I the to that around and mentioned, Susan the is, able make easier clinicians the of we that that to country, things we so can it be the can faster the more some

saw that and first credentialing the starts number in licensure, A of for orders has of then were out highest our lot some the new ever of we've seen. executive standardizing client. clinician that to there quarter So with we the across do

it stick, that be a will helps not the So - us but easier to continue it of all able happen don't move will will those country. lot I - clinicians to of stay throughout just and around

our with as working much teams hard possible. it are on as and clients the standardize work So that to I know

James Taylor

James. This is

their to create be our possible experience organization. and the successful think day and to by add I inside organization people up to that day capacity, and learning I and an our bring the days that I generosity, an to our by selves team, deliver that the we best who who as being of have new helping mission that by really work of really and was live to only in the the humbled the drive of and serve organization, enthusiasm to our stood to is, of out, the put being would have overwhelmed we can authentic values teams allows and environment into candidate are they that XX

done take a experience, on foundation. humbled I that work great it, but different the and that's me solid the were was by building replace Kelly, planning before to think with a we

becomes think to drive equity, drive do we're them for able that and I because I'll that wanted for, How solutions for the do diversity, placement? be we How we as our these helps compelling, whole up is stood aside ensure do that you something we're workforce to of that bias of way helps things job How to an speaking, of just at it's a helps partnering the do clients the the internally the candidate job and unconscious their able best have we we are and how best diverse life to add we help attract that that it at such their that's to do all with with up at opportunities, to we it we they for not think we're our course them going out to I standpoint. we clients, physicians? position pipelines? really public helping with the do diverse creating with in [Ph] levels to create I candidate drives our that as their side plan and solutions really that that all it inclusion from comes HBTUs best the partner client that externally of that an inside that that doing important with teaching help we deliver them tools helping things be had introducing and and a sure the Those material? centers compelling, do brand get live How with it? leadership our think webinars, in hopefully papers, our and we clients. ensured make around to give drive that to organization? to action individuals think environment that. our a experience white that as to training career and that help proper descriptions we be market that the To job of we're be diversity be

Tobey Sommer

you. Thank

Operator

with Your go from Please Credit response ahead. Rice A.J. is Suisse. next

A.J. Rice

to presented. I challenges on the you bill that broaden an second the everybody. guess, pandemic the I'd opportunities year. job the the Hi, about company's rates and think amazing comments appreciate I out. it done the as about of capitalizing half

or at in on new half back business you profile company, we're business you industry, the financial think but that the looks or maybe as months months the of as profile think financial and even three how pre-pandemic? has profile normal, do different about look the some three said ago how commented July this, you almost the the evolved If going back to

Susan Salka

they coming bought of industry set and and and than in that rates more and it's when because This our more we than have as we for think the the others in Solutions grow, profiles today about in very core important model this the certainly, asking businesses and also continuing you Technology you Workforce but, where higher have particular, of Yeah. means AMN and was also the is question, our Susan. if organization, it that deep this headwinds more should important that thank differentiates much we I broad candidates, ourselves Certainly, XX a much and to and AJ, differentiate areas think for is within are one years and other financial to say diverse bill that volumes over demand time, of us. really for counterbalance profile a happen operating will ago helpful that It's itself. down, clients underlying of for our I'd we margin the offsets and in comprehensive those solutions this. faced really diverse

of leader the and acute built and systems we providing or we're base. studies that, it'd diversified ambulatory health, to client have earlier also in surgery are client of back but in be to in, other question schools very that able or dental. Getting a more also the hospitals to yes, we various care have been We certainly tremendous the whether proud much services build base and areas, home

That only will relationships there relationships us build will year and a going organization tech think more on will automation use it better pay the we I and with share if any anything, capabilities, how last is the continue and be Then standpoint, relates strides another relationships that creates our we many don't of efficiency more and to the the really also for important self-serve year specifics it and only made own profile but I that others. the just also the create business. off in we've strategic last more want area Telehealth helped change capabilities, more. efficiency to that investments to candidate, more we for business the from areas unique has and forward profile not I'm of that if experience great we mentioned sort creates also internally. of those mix. not know, our to Brian, that So talking enabled business but made as you still be

Brian Scott

Thanks.

in on as the line. And because of at if about said bottom same. performance, to were as beginning year will some We XXXX. we the both back and right confident together start to last way, top some things into moving really of you now, I in that feeling differentiated half our solutions the what's our the for a strategy, translated this are walked look think into our actually and of and that reappear noise financial business - you year, clients that bringing we are get of really for different, seeing some going strong of

of into experience better translate results a to our ever in I'm rolling excited about more out this down mix of business and that conditions clients we're in revenue our of in but we'll We mix really from sustainable remainder and well. with the that team's only really those important will turn our in the for It's a remainder investments and of and double and about. now, we going and us all on to well growth leverage move our continue we've not off and the feel lead will to I to day the more So year confident It's we've our of day and more execute feel seeing to year next will and in to this out have accelerated they as our Susan predictable pay and the to foundation for made members off well. that year. more that we last continue the talked team improve from as and business, confident paying true really of that out. that investments they're think ability be that going some to operating as results something of those and - year

A.J. Rice

ask about wanted operating. I just to you

me, do the quarter something the on one of is think may, in source covering here, a optimist that's rise years? steady know that may here to I and like mention few so may we're What for become persist do sort quarter we're a contributor that did forth. you be the business your is a an you like be revenues? business your where comes environment see if in a discussions hospital at while. results steady activity alongside - there a strikes that for where and seems union next and entering companies environment said, a off of You It discussed strike the I to while, increase I of an more there. wonder will will and

Landry Seedig

very Hey pipeline event. AJ, right. it's Landry. strong labor right a Yeah, is you're now, potential disruption There exactly

currently, guidance we happen, You don't they as and in but as might noise of soon for some year. potential our we're certainly lot that have never happen know there really could there's a events But when QX. giving this that numbers anything

A.J. Rice

press what - with marketplace bit that is? see you? just maybe about this this XXX of coming maybe is or for and I'm is the focused platform what alongside a what expand comment the not I Okay, to gives in Synzi you does platform read about opportunity a you release, little or would last in sort I more the different little the way? competing Amwell the As ask question. Can you Teladoc just capability you a

Kelly Rakowski

have You not that together and competitive that in bring messages, Kelly way monitoring giving excited Things well their the got patient really to It's as really video, is This platform like entire a group. join AJ. us it phone, spirit vehicle their [indiscernible] solution. Think of patient, between it, bring helps clinician, We're communication as again. Synzi remote that communication a and of altogether. streamline the care even really us.

focused and for They're base. communication whether that secure It's that the post-acute particularly caregivers, be experience health in creating on really engage that today physician clients, and space, use, really to be with companies, platform. the space, like easy focused to it'd customer very direct a it's the the telehealth space. So home whether it'd our ability office

additional from sort that be potentially more holistic. wrap excited help also that we're technology to expand but staffing allows us experience, to to mostly really services on a and of So it services around our patient

but a help, we're to more days kind AJ, early about capability. family, them that hope describe little So I of in the welcoming bit that

A.J. Rice

that's great, lot. now, thanks Okay, a

Operator

you. Thank

response next of Your Please from is Tanquilut Brian Jefferies. go ahead.

Brian Tanquilut

we question and on just last right, back good the in run business, today? growth and had the outlook growth your a guys? the different How take you congratulation. afternoon Susan, you've January for here step If think Hey, outlook long-term stand where a of is for strong quarters. say few obviously, and we where late three-to-five-year you you of XXXX thought that was outlook if a

Susan Salka

for would demand feeling our we we over shortages as of relationships, effects more over the still across we When next I some occur about were about country and the knew exaggeration Well, and healthcare accelerated of that acknowledged the changes think to thought of better we and next I beyond pandemic far we and much in it renewals deepened be shortages organizations the impossible do probably and they clients strengthened think, of possible. more forward. it's acceleration previously. further it Also, I we're then of all like, years, environment, what pandemic. so client to be strong course, I really what fully and exacerbated we of strengthened drive while than many has actually the Because next workforce the In the but a fostered the years, look those those They it collaboration a disciplines going think are are thought going much five to that and no key talked does cases, healthcare the the we've last when permanent it during last think to have we thought will That year our knows one cases, many of us relationships the the feel that our position. last think hard would through we going I exactly our likely the trust that any and nothing by mean over none already far years. Unfortunately, of we're together perfectly, is some with several we I much Many been by think and we attracting five delivered other that and relationships. of of driven the forward be not would was go see built three where us thought away. call, to will capabilities but be. large going have likely to in clients three been possible to ahead than like challenges going what stronger on think have our commitment and what would all likely and we was we more talents and of about many year

they're So doing It wanting about how plan recruitment is to that. is why can have business more international right conversations fabulously they our for now.

Because always and Our well, demand need that execute clients now, can core a there and from three and core that they're international not staff growth more much strategically need going in our opportunity. we far but staff to more They're team a but the great only is from need bullish would build. both is staff, feel to relationship know which position I they going that they to standpoint better fulfill. helps five now. we're years division say, a I than am

Brian Tanquilut

bit, didn't about bit little strategy Stratus, tech we little remember a a as understand at obviously there I apprehension from highly bought gears shifting think when your investments, been some successful. but of you that the was it's investors Then it. Got who point,

provide into in of the integrated point, speak suite to or how you've the can of you enterprise? the Stratus to for sales assets an integrating process the plans Synzi update how into Synzi can offerings you and that leverage you plan on also to So do your

Susan Salka

do of team to is her the I done Yes, we because best answer it, part that Why language an certainly would love over team question? to, team, year this don't a because, the amazing has last services the business yes, integrating. job let Kelly and

Kelly Rakowski

for Number limited purpose the language Brian, our and a in the said, addition and terrific it's addressing it's the grow health one, access Yes, the country. continues to population, to services which team. offering, across a but you particularly challenges, and such proficiency English number was serves market been the inequities like two, really

we we community in honored serve and that foremost, couldn't are ways and just First before. that able reach to be obviously to

really that I We greatest community of past that our continue allowed develop to care our population. and year virtual help does ways take extend been, our and that think to support that clients of clients our the learning can of hospital how on nature other has that platform

relationship. into So of natural our integrate tell lot care. more you, addressing lot strategic, we we it MSP them lot clients, MSP when that expansion, really new a see have have we bring to patient opportunity and our I'll into of come introduce growth a still accounts, a to their from synergy, and and has comes opportunities a to and

So and the stratus was hasn't spin-off, been is bank a so confidence, I what a within, from will of will the bit and that actually say stratus, that forward. that do if we going skilled built was you lot among us organization how really gives that growth capability Synzi prior.

so the they virtual services their protocols, capabilities. care and solutions during in a their - opportunity incorporated pandemic, that onto creating language leveraging work and we're our platform have with So the example have and messaging, their we to for capabilities, - partnership and and secure some Synzi,

together, well I other of to as a those our So for as mentioned of bring opportunity that some as lot bring us platforms services, tow earlier. together with

Brian Tanquilut

I lag your for as to you point recruitment of that then the seen fall a me, seasons, their shortening Got made nurses it. reform, immigration is forward, guess think there think last time documents? And immigration you question could get on seeing that efforts, before for about are nurses? about have looking Then, we had we change a to as you we anything international guys, the

Susan Salka

immigration, get different many we to reform, that and not include both, because convoluted, almost those things and oftentimes for are are, hopeful reform gets course of reform get of on we facets and optimistic, illegal done. down, legal immigration nothing dragged and Well,

have great or the they'll because pace, integration about on have trying ODP improving throughput else to faster again the out limited talk portion a reports, amazing, that opening up that the open of for I has shouldn't count have that. had bans able said, we it process. those out occur, a the been over to anything the and just top been resources, for being all obstacles, such year there's in make any more, of done smooth team, there of if necessarily the grow, we on the to need levers yes, of occur, be to us I clinicians. enable I almost read some quite our up didn't processes had seen how increase number the has it So travel infrastructure broad change more, they capabilities, With many share closed, considering opposite So just those team there to And Landry, has front, actually on obstacles quite well to even supply, the the faster would that kind don't available few more NBFCs know, of if and job. fact not it's not that, but as and certainly bottlenecks, a last created We've been the

Landry Seedig

second it park assignment, to there, all-time would been a lot begin of the that our let's amazing recently, had add on only I high in clinicians the are of other you you're the doesn't did, the points as quarter, right, it, third here international toward team thing, hit doing a you say, sure end new the of for No, of guess is and they expected quarter. I the out

of team into the supply execution So countries, right in the it's good strategy, United build got name of the other really out our that to clients. from kind marketplace just bring out the and shows them States attract a help and

Brian Tanquilut

you. Thank Awesome.

Operator

Thank you.

response Kevin of America. Your is from next Bank with Fischbeck

Kevin Fischbeck

growing it know, to you higher the in, much the surge, like You mean, saying, work, just this whether was just place, is kind referral will, from you into thanks, you to burnout hospital for of demand, understand, coming quarter, one reasons, trying volumes, if in do to because same and of someone quarter a staff kind it burn I I wanted understand into being guess, sounds you'd said have the hospitals better someone able that just you're exact to you give I and second Great, to the need visibility of the turnover is of us measure I Why in dynamic like I guess, client feels how think out, be? reason? a asking specifically rates like that and from lot you visibility this demand. more the having deferrals

Landry Seedig

Landry. Yes,

the is rate, we're but, vacancy attrition and Barry, had every around have just demand, of up code rates be of Raven that's of kind a exactly C-suite, it they're for the but they our what that hearing facility. right that we clients might now, coming So all close in, to purely the they've order don't course, is lot a into why we're, pay of way the

out, it's increases and demand not continued today. strong demand to COVID the the they within they think what that the it board, even another the extremely client, really and some are one actually highs, is is at Allied, that they even seeing any we're to things reason I the see lease, enough. there, that, geography, I'd one of that's that would decline any total one is good not we January sequential weeks, were is any increases, the mention it's in specialty specialty, every seeing close, where pretty or at that December, and today, to Allied, that have business, But, that, and all-time seen we're I last thing of point. So with were we've seeing they not new rare, there across we've so there, hundreds to one see it's about five point headwinds, also of you over being timeframe, high, hospitalizations, demand if demand, that some one and reasons, of at the the in lease the big it's there not end the biggest occupational seen year last six probably XXXX, six workers we're weeks over that at we we're of five in therapy, last have. orders and that if that of you the and look physical we've now, talked having know, the now digits it's previously therapy therapy, right look, experiencing never double nowhere

we year-over-year there have respiratory, some higher would point the that seen out what are what and that, they outlined, couple reason a year. where But, trajectory, a do that good therapy, really we over hard the down the prior so specialty next really I we really within great numbers, would interested against good we really today, and that here biggest pre-pandemic. to we're if really a bit recruiters about it's thing that one or have on for than great months, there, quite great see comps, therapy, at and So hard was physical staffing from is is still have occupational database, it's of

Susan Salka

what's interim I okay, we're would leadership Pertains, helpful hearing comment the think driving from and what that. Kevin, if locums, it's regarding demand, clients and be to on it also

Brian Scott

and CRNAs quarter. Susan, is whole and few a you at But, quarter, quarter, demand XX% as being We total would question. for Anesthesiology specifically remained within that and is year, in may uptick you, phenomenal but, first in pre-COVID radiology it but this quantify numbers interim, we those of and at FDM recoveries difficult, for what as not much surgery XX% thank which in lagging in business XX% had numbers Landry side. the sequential specialty they a high-level I the just was core Thank flat, of in add the our us, dental do information Landry. first including a few drivers specialties, have XX have are a pre-COVID, of you but around like a pre-COVID, fourth the

just and that our So results they fourth COVID mind volume from of order held numbers their the quarter keep percent related. in

do sustain reach core, been interim of of to in search, number quarter So third how year. just to early just number XXXX. way see we has elevated levels numbers through and late revenue Victor XXXX, is XXXX this by pre-COVID going and expect COVID of of second We the expected Locums pre quarter their in main

Kevin Fischbeck

not, talk and guess worry we I know, mean I maybe have question, helpful, that's so Okay, of reconcile guess, to I about. because in talk but necessarily hospital I won't this we get to difference, bill, and want hearing that sense was, to often go to about. burn We to nurses, to the if when But, it's many on companies. is small demand hospital they to talk out will you a about I when nurses the bad. not want just companies, down trying industry, last or as make we you talk the news, you demand all quarantine, that sell

it like, or standard there there over and it bridge, of sounds swift I guess, in but talking they're affecting next to somewhat potential for seems seems about more of so so to few And temporary to quarters. reconcile, kind staffing labor, talking like some quarters you're holiday, is offset about reduction of not more temporary it's commentary that, kind about few be

Susan Salka

the is the I demand, weeks that than we contradicting, peak come so the in need levels. while down the Landry say six and December lower actually it's Kevin, don't January, come up, did nearly has a down come last would mentioned then we quite back demand as where well. not and think still as It those grown has bit Yes, and back it but over to

to the I fully come actually going and out, they need attrition know So mean to in around who need not into want take to early. so do we're could the worked think time is many something pandemic level issues what And come retire impact do through Also burned to come full no into and hard trauma back because as nurses our off facilities back how or that they finding that and/or anticipate to of as that time the some are I vacancies different, the roles. want to it's and many much I felt back is them think one something sync. rules clinicians

the they in they what they're of hung sort now, there thought was until departing. and end So near

above the the the You February openings of record high And data X.X% level X%. a hires XX% just JOLTS got at and is in to look 'XX, we've openings at highest job prior year. number of

issues are higher. the as up staff themselves I and staff permanent to they these wanting now to think they're that find just you're be get manifesting really finding back So can't

helps to bit. a reconcile that commentary, hopefully you little So the

Kevin Fischbeck

Yeah. No, Yeah. does. that it I think

down. maybe ago be continue that think going guess to that saying going are coming I years overall three you So to rates demand to that increase is bill

as perspective, might spending a though you're coming be demand hospital down, from far the as even seeing number? total from So

Susan Salka

that's I think Yes, Yes. a characterization. fair

Kevin Fischbeck

And I placements rapidly. like lower feels and down supply guess are number rates? mismatch why the of rates should higher I going, that that of bill if me balance becoming and as demand bill to is the just Why that demand that yet believe necessarily

Brian Scott

still consider led is dialog we off wants elevated but but in This significantly March, come at the naturally - that because really But to they're is, expect get that above Keep point normal demand that but fact to level. high off off very off - peak Again, the talked elevated, the is level. levels highest about we Brian. if it pricing that is we unprecedented still the levels we've remain that pre-pandemic, very above peak will levels to the saw still everybody that from down normal it that - point. And what demand again mind. it in some we

that's and sustainable. really about kind part it it's think it, as of not I it's - of think strong not

in and we at be right it it the predictability more - higher more little a little before, have lower jobs to lead able lower you a more just that of rate level. to had will time, needs allows sustain level fill than now a at a us but As

predict. think of hardest that to again that decline - pace I is So thing the

will are a come saw the a because stay we demand half ago. higher - everything we and quarter. and seeing year down in year levels a shortages saw quarter a it the again that and through we second level ago, as of now, right is the we it above We have as that elevated half third bookings of But

Kevin Fischbeck

thank All right, these are the reference right, points, you. I All guess.

Susan Salka

you. Thank

Operator

Thank you.

Silber BMO Please Jeff from with Capital is go response next Markets. Your ahead.

Jeff Silber

down but expecting able much. bill your may I If be go it's so to over few sequentially, you rates the late. next how the mouth, what I ask would to words just bill Thanks we're spread, be I'll should know in one. maintain putting expecting be to rate we continue quarters?

Brian Scott

that they in of some Well, and rates a to the rates - they of changes we'll the do again, tied clinicians And I very kind making higher most methodical really at way been clients way that - so rates our - thoughtful have pay this to what there waiver in work think sure pandemic, we work that's the and down. bill rates to the and our peak with the were situation. don't we've the - understand jarring and unique saw big

actually well. we it's And way And I spreads kind as proposition in beyond done just so as clinicians period time, thoughtful long it's expect you So renormalize the a prepared long down, because likely time started it And of lower bill will to - saw very will as as pay we a we've we for see think - were - see on remarks, improve talked well. the rates, little come of about to So taking rates compelling pay as even a margin spreads improve over a more back the reasonable on bill as the higher deliberately. during a rates very bit

Jeff Silber

Okay, so that makes sense. lot of much. Thanks

Operator

you. Thank

Your next Ramgopal from with is Sidoti. ahead. Please go Mitra response

Mitra Ramgopal

again. Yes, hi

was curious their just also, that come Just more if I it relates resulted, maybe take board, opportunities to the growth willing mindset from as pandemic now on to your being change one the terms me of terms they'd question so quick and in MSP speak. view you accelerating be to longer-term relationships, in clients has a in of

Susan Salka

have that also organizations a a didn't some we have definitely the in I crisis, just Yes, seen strong in perhaps that but strengthening of build we to tackle greater us mentioned and partner a those services not relationships that of actually those have optimism help a for gives we continue going have opportunities to how about I you think not can relationships of find the in how earlier, addition seen they're the opportunities now through ahead to think dialog existing them pipeline about positive some the continue challenges. to help emerge of opportunity to already to managed longer-term clients, we shortages and them We've might and our where kind new in lot and future new just clients partner to base. - potential we with and But our client be. client the but areas

that language Nurse leadership an client have the more a and have MSP locums. we if and So our their to services can services, we we where We save have in Allied solutions, in can we bring can bring executive experience dollars help businesses. so language consistent interpretation in can and around services. consolidate them bring We

for still and of add our us relationships. cross-sell a lot So many there's expand of existing and to opportunity

Mitra Ramgopal

on quarter. again Okay, thanks Congrats for the question. the great

Susan Salka

Mitra. you, Thank

Operator

Your William Please next Sam Blair. with is ahead. from response go Kusswurm

Sam Kusswurm

thanks I taking the guys, just clarifying question for had quick here. a question. Hey

really here? second be leadership? what in for for you so, if Would that mentioned to the in remarks from X% And can expecting that only a the as company physician whole think share expected prepared revenue I quarter you're only the pandemic. you

Brian Scott

leadership the where it we're every it really, type to certain provide No, that are to is very difficult that's a the not - segment. in correct. And it's tagged That hospitals this - for move the color. like it's order gets able that where area, specific and the physician during mentioned It's around Allied, in was of was RNs you to way needed time. and Nursing and that able

second of based I isolate staffing need that. mean, well. The majority, their say - it's and what it's about we're to is you I'd the difficult dissipated, I meeting in levels now - think majority they that seeing as demand - pure think we're So the volumes just and very is on hospital quarter, that as the right. pandemic-related the their

the say percentage don't our I you to second partly in percentage, to majority the that guide provided we you low I look more revenue we it and normal projects, guide that vendetta but outages, normal vaccine we would think did guess I operations. is at isolate recurring it related we of - more, the could mention we business the related of now be and But forward is related outside very at could look have will - as is a number. of the So the but vast project quarter that would the looking

Sam Kusswurm

and Thanks quarter luck helpful. you. in that's Got here. No, best of

Brian Scott

at time. Thank There this you. the are Operator in queue no further questions

Susan Salka

We you making so truly for time. contributions Wonderful, so and all many for that critical during well, organizations everyone, the today. people us joining thank grateful are this are

evolving sure but not business, assured We have can the brighter is team impact, focused good through that be days focused ahead always for rest and you organization issues positive on. think, on our all through a and making AMN any communities and our should just I that in

So thank everyone. you

Operator

concludes This today's joining Thank call. you conference for us today.

now may You disconnect.

AMN Healthcare Services (AMN) 9 May 212021 Q1 Earnings call transcript