AMN - Earnings call transcript Q2 2021 | AMN Healthcare Services, Inc.

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Operator

Good day, and thank you for standing by. Welcome to AMN Healthcare Second Quarter 2021 Earnings 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 Second information conclusion in of release this everyone. issued AMN Details beliefs the afternoon. the forward-looking or call will plans, future Call. to 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

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

will friend the Susan. AMN our first Chris colleague Schwartz, turn serve Principal our Brian Officer of and from and the Talent Officer; impending Landry call Allied Salka, for Nursing Group time Leadership Financial will and Executive over Solutions. and I Susan today Brian Chief and Strategic the On Group of now Controller and are COO Taylor, President joining to the James COO due Seedig, as Kelly Solutions; Chief President Position President Scott AMN. Financial Scott, call COO Also Solutions; departure of interim Group is of Officer; who Rakowski, to

Susan Salka

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

honor commitment this today. The and depend and eight agile AMN to than of nationwide. our healthcare million health quality organizations always, More patient care impact workforce face quarter of ecosystem. a As particularly a part supporting hiring professionals permanent was Healthcare be and last provide to in are on help and volume back with all and care of health this have a The approach, another team multifaceted pleasure to an with that to greater short-term patients team opportunity make their continues shifts it's challenges. to of increase this efforts, care country. million the Americans change always relentless the as important who XXX increasing requires to testament persistent getting our the industry been created staffing workforce paradigm our AMN in workforce need the has for future. normal. regular and and the Creating, in empowering is a pandemic you and

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and with solutions. investing We future new are and people heavily the our simultaneously to care our infrastructure to ensure that in empower able we're growing of

and in to was than $XXX all year revenue million, XX% with us enabled positive outperformance segments. Our financial prior second higher year-over-year Consolidated impact the expectations exceed quarter. from growth

at primarily doubled reported by Solutions partners This million, VMS driven levels. We Allied grew year-over-year. and orders level. climbing volume on in brief our began our up increase through at another second XX% Travel year, supplier platforms, compared travelers again high MSP Nurse revenue are segment the April in a above July during with in quarter. Allied placed assignment Staffing hit for Nurse our the growth. quarter earlier program expectations including now largest in year-over-year. was and orders of average XX% and decline After the Total XXXXX demand Nurse clinicians nursing and record record $XXX Our over in

up Staffing Our another XX% record Allied team hit million revenue, year-over-year. quarter second $XXX with

our of therapy led lab year-over-year. slower the revenue had in been XX% Also rising respiratory important imaging was Our which Allied growth again comeback and continued XXXX.

talent. volumes room with of across levels Clients very to COVID related leaves not XX% only permanent in also is all intense the competition supply of retention. orders high levels. demand Across all high higher fatigue, the than Overall, but constraints, And demand demand across rates for hearing demand extreme problems with clinician growth We're the is quarter than over Allied the rising last second citing three record therapy board level. rather at is quarter vacancy hiring are not the the and seen and quarters. high more market, has the and were about patients the normal backlog. absence, at operating today country. labor experiencing patient but consistent Allied first New Nursing Most

this the unlikely in trends anticipation Our have process. these clients investment we to anytime increased In placement of and of is are phase continuing, telling onboarding soon. each recruiting change us that

are new extraordinary the leading continue to satisfy not although invest hire in to enough We recruiters higher demand. platform. and additional applicants digital our to These

guidance over recovered $XX of levels. was Locum's XX% year. and was third For revenue higher pre-pandemic specialties growth. XX% segment be XXXX, XX% up year-over-year, Physician Leadership many exceeding the which was nicely Solutions and quarter Nurse higher Overall Tenens Solutions million demand than quarter Locum better segment approximately year-over-year. million, our prior Allied revenue, the we expect has revenue for with second of XX% the to $XXX

is advanced quarter volume sequential Interim medicine, and the highest internal growth. demand growing interim quarter care recovered psychiatry. executive by to year-ago search permanent to the as Physician anesthesiology, and revenue, primary pre-pandemic specialties Core revenue levels. placement rose strong strengthen. practitioners, a Our leadership, leaders has and XX% demand of grew include XX% third for year-over-year delivered business over demand and continues consecutive

Physician For year-over-year. solutions revenue the we XX% third quarter, to and higher expect XX% Leadership be to

new million Language excelled year-ago to normal video than of Second XX% quarter Solutions strong revenue period. appeal higher of service. levels healthcare services the demand the has to Workforce virtual expanded to clients and also but This XX% grew our enables is for the utilization with as segment Technology that and returned again, $XX revenue year-over-year. and platform on-demand due due

The quarter, business, Second quarter added over the be revenue and primary the to third last our an revenues year. compared the VMS prior segment high clinician the driver for for XX% $XX here XX% continued across incredible the is In needs and new with all XX% up year. million year-over-year. we demand Technology to growing the customers was Solutions several expect Workforce

the the a are become Over of decade, most the strategic talent to past total to evolution increase turn AMN and ways as leading, improve in care. that to to partner the workforce continue diversified solutions we access of Healthcare efficiency finding partner, organizations to today. we the invested and largest significantly AMN

services, outsourcing. and growth including remote our As outsourced and workforce in technology process have recruitment telehealth, solutions strong an language scheduling outcome, we and optimization seen

In addition, programs our continue services managed to grow.

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highest Today's HRO earned recently satisfaction healthcare ranking, AMN example, in MSP. For for customer

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on the are proud particularly impact are We equity we and positive access. of having health,

by administration of units for a limited FEMA vaccine underserved honored nearly are clinicians We program, delivered been the access who areas. communities. to eastern many awarded mobile mobilized administered XXX,XXX vaccines We have to region

remote setting. AMN, Synzi In XX,XXX in with first telehealth and visits. enabled services telehealth quarter are delivered and their Our rule alternative care in language

for supports the throughout remote sessions platform access XXX,XXX pandemic. therapeutic over supporting Televate and to Our schools, students critical services for

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Now goal colleagues one personal pursue great AMN. our professional and does decide a depart outside and new of or of then to

friend CFO, forever lot deal over purpose. Brian the you years Since and great Brian the his as tenure recently. a about I I You're as talents all grateful typical his done last been will XX also know all aware CFO. plus I AMN. for an years amazing the of but our to a all to a years colleague you've more past company I and I've Brian's be to many of twice public believe think says to evolve made over colleagues than commitment we that's from be will the decision and learned Brian me that that our XX us Scott average including that has and

greatest leaves for team One that team, the the his created of he's us strength that Brian is developed. the legacies and of

conducting All teams a which why when Brian's the we we is of strong, audit, service CFO are tax the interim are an replacement. not customer did our need for name search to exceptionally leaders across accounting, feel finance,

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So all give Chris us and In will I us our thank insights. more you now, Chris, Kelly, for minutes call session. the do and everything for including James you Q&A I over a through But turn the few to this Landry, Brian transition. join will for leaders will of who

Brian Scott

Susan thank numbers, those colleagues. to for I I my moment bittersweet of before definitely want a you very a just jump amazing to kind acknowledge the day. all words, Well, take into And

our AMN communities During your every have your been my drive, at passion, your dedication customers, other. inspired day XX-plus by serving to and each years our I

I'd of best so the continue all will like and I'm do best to guidance and And all our mission Susan that and the you and future friendship accomplished, and about through and AMN proud organization for and while for truly personally of thank are years, both as the You what their I'm excited to her strategy. support. advance also also we've just of this the personally. Board professionally to mentorship really important continued these

So with that, results. the we'll to back turn

across was three X% of Second our the upper segments. quarter revenue above guidance $XXX all outperformance million with end of

lower Travel year-over-year. to expected XX% in down was bill COVID-related X% rates. projects quarter grew Nurse Sequentially revenue and reduction due Second consolidated revenue an

are margin communities. higher Consolidated the points for XX.X%, and The quarter ultimate was primarily impact do this $XXX due favorable than The expenses expenses. any XX very and XX.X% the quarter. the a quarter by million quarter Year-over-year XX.X% part sequentially. the the leverage million SG&A shift margin in in to in partner was our we the segments. were lower Gross mix professional $XXX million revenue year up related second we offsetting points in revenue in Nurse strong than a achieved Allied than marketing revenue toward the adjustment, In increased revenue more third now basis in and a underserved liability any And employee revenue. from revenue. we material even with compensation significant earlier, to reserve year-ago second quarter, costs of prior expenses SG&A FEMA of $XXX was and with revenue minimal XX.X% expect growth, quarter. basis $XXX in vaccinate year or down not revenue prior declined our support basis XX expenses sequential mentioned operating and driven X% which and headcount or the investment the from proud the as Susan and compared stock-based higher contract -- improvements of million XX% higher were As employee with sequentially. to project margin financial a of was growth or previous in to on On

business, Nurse, bill XX%, average Travel up and with on prior XX% assignment over higher largest average revenue slightly grew the average year XX% our travelers hours For rate up worked.

the peak were expected, levels bill that sequentially needs. from quarter first by related rate fueled COVID As the average declined

about decline the than was demand quarter. of anticipated However, increased less X% the through as second sequential

the to Solutions points year margins improvement positions. [ph] XX over for on third second Workforce XX% up $XX XX.X%, The growth adjusted toward gross change lines prior the Solutions million sequentially. was EBITDA year-over-year Locum was sequentially, by Segment levels Segment segment in improved X% XXX basis COVID margin year due of segment. gross XX.X% driven down was XX single in The XX revenue shift was sequentially. margin Technology by which and second strong Consolidated XXX revenue basis higher was net higher Physician down leverage. lower margin share of driven, XXX year-ago income and again Allied than Segment rates flat toward sequentially. per higher elevated $X.XX operating was XXX basis a XX% revenue $X.XX million large The and The due from points shift occurred $XXX year reduction leadership growing points and basis balance margin was earnings lower the EBITDA due basis to mix XX prior than higher second and wave the lower be growth. points along with sequentially. of with lower from flow million million. and average days Leadership pay quarter quarter. improved XX.X%, was down was margin $X.XX is basis the mix down increases of and year-over-year and basis sequentially. second of seven year-to-date. We growth Allied cash specialties days but at prior by outstanding, higher to volume year quarter the diluted points up for $XXX and year-over-year in year-over-year increases interim reported XX% basis that last EBITDA within bill year revenue than points operating per packages lower XX basis operating points high the leverage. the quarter and and points with sales Gross improved strong revenue were up $XXX year-over-year, the lower mix of was with XX Nurse margin sequentially year points in segment compared and and remaining quarter, million XX in year-over-year million, higher sequential fill million was basis favorable and segment year. in nearly adjusted $XX points the up businesses. and EBITDA quarter, prior Operating expenditures points Adjusted year-over-year, was sequentially. primarily sequentially. service X%. the in Allied We the the quarter the XX Capital on the year-over-year sequentially. gross improvement XX% the the quarter, year-over-year up the margin Days a year-over-year X% the was across collections points margin are caught as down $XXX a and quarter. of Segment all $XX to XX.X% XX% leverage was bill strong segment. expecting was than from million, primarily X% of in last $XXX primarily prior was throughout up more basis revenue gross search and XX.X% with XX.X% in in margin The first to Tenens a accounts projects. was XXX receivable cash earnings and rate clinician revenue was EBITDA reduction XX.X%, up shift in in related share by basis to was was digits,

$XXX of equivalents we million, had of long-term $XXX leverage debt times June million of a X.X cash time. and one of ratio to and As XXth

Now to are the $XX higher XX% million disruption to to year. consolidated revenue in be to range This of projecting we labor activities. $XXX the prior to includes $XXX related third of turning approximately guidance, million, than XX% quarter revenue million

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

Operator

[Operator Instructions] from And Mark the Baird. Marcon of line your first comes question from

Mark Marcon

because It's you, and I'm pricing for Brian, several upcoming great Allied. questions over wondering, wondering, Hi. you. Obviously demand you where quarter. working the Congratulations and the on Nurse thinking thinking the you can to, to about with related are is if how to terms just clearly in abating. bit with the as quarter, coming to being with in then, but be there everybody, regards been you're you little Allied. year I've -- about of that extremely the both, that strong got as thinking you're Nurse Travel about also seem to pricing for unfolding, well? expectations I'm Nursing, And a shortages Allied don't congratulations years. and the mentioned, expand regards

Landry Seedig

Hi, Mark. It's Landry.

be it about, kind seen the starting helpful might talk to in maybe So of January. that we've just trend even

what see new actually that, increases bill our then, been quarter. see demand peaked steep we'd we rate quite third first probably declining today, And tell as course start a orders, what of rates originally that of our is They since expect and been they've for and though, where especially bill it quarter. again in steadily would thought. as the end decreasing. to our we have So the we'd can we the as rates turn of at not take the can we would exit From really point, all average the

like rates. across take extremely patients. There a high of the care average specialties months, to impact specialties increases we're experiencing three that really course there up some there's is demand a almost that aren't to placements. should see increase whenever it seeing orders, are our It's now. But to all would would because, of to we even rates COVID peak start looks where which right you lag see in from that's the nursing, of rates demand, the driving orders probably instances the then we're lot future see, bill impacting that might which tied So of you are two

So how still little about bit a too it. that's but thinking to early currently tell, we're

Mark Marcon

could thinking that once actually year-over-year are go on up much a that basis bill those how rates starts Landry, occurring? you

Landry Seedig

bit we just just -- fully see that the such to demand tell but a because right it. throughout -- Yeah. thought year. now And difficult it in the in quarter. take still likely third into the And end orders. quarter. other little will it come And there year. the can there's things we It's to we're that at we Originally the mix, really right the still decline little Mark, right predict today even And third hard potentially bit with up we a still turn even where entire as think as to seeing of a it are now, we're to that, booking the some exit booking we make

Mark Marcon

you of that, extent That's at of I positions? lastly, terms using are great. talk terms imagine, little about, of also better dynamics ability various vendor-neutral fill the your there. MSPs terms related fill the a rates are than level And out seeing in MSP that in seeing what actually you follow-on And you're of just terms then, to your superior given filling in just as that what you can are bit units, rates? what the interest, seeing are assignments? you're in And To an of increasing occurring given

Landry Seedig

versus it relates Mark, Yeah. And couple a then, to VMS talk hit our maybe as turn utilizing our of it vendor-neutral program to MSP over customers about, I'll product. I'll to Kelly those. on

peak vendor-neutral was it it that And the the a was pandemic. March, entire we pandemic we that on that lower this declined industry what at been than the is as now, little that's, what over at right fill see programs, it expect historically side, Within the out rely partners. year industry the programs, because we did now really on rate would would is, heavily the to and supplier right And the with On entire have frame. high rates of been. you couple Which of that well where across have bit. the excessive that beginning the at levels MSP fill demand our fill experiencing, just the experienced across time we industry. course, point have they kind we there, our then, as a to had our of rates months And do before saw past got it of the of were April own demand back had then of the the respectable, that

a been clients. they've our bit with those to to fill able So support help rates quite help

very those we're course, partners. of appreciative Of

our it retention retention some it procedures down mismatch. the historically. QX return then health own down again to like rates, we've that electric of of up back see retention, as of well. OR last of such in paused our year whenever we of of and on declines frame some this skill in QX, kind were as of skills relates that more care actually but professionals, was of As kind course, to, past year throughout like, experience that time seen to If go went year, we levels did a did we our go and QX the would did

have away. techs, So had and replacing or pharmacy part in for vaccine these were gone most the some those vaccine COVID example, of for projects place that projects you COVID

And no to put where so there's clinicians. those

Of month across one third course, and we're were the Allied Nurse to pandemic. are where quarter, the rates retention into clinicians both of pre but only they back

Susan Salka

chime you asked And good our be versus opportunity the preference VMS. MSP have clients to of to in regarding about staffing-led a for programs. MSP Might Mark Kelly

for in technology our which both, we heard as that we fortunate that new that more we're that was during and to you platform certainly clients division, year. last valuable really offer clients there, an added has make can more finding extremely helped revenue help the but and have we're course, me that many And Of drive offering. mention, are VMS staffing-led impact wanting

maybe, you about So a Kelly, that. bit could little chat

Kelly Rakowski

a on certainly Yes. you, comments AMN-led with that. Mark. stronger perspective Susan We performance program. see from and of our Thank A couple fill

we and seen higher as strong strength demand sustain overperformance the a of So this part to in Technology due seen VMS. well. of quarter We've our have -- Solutions Workforce was

We strong with our less have influence, partnerships a suppliers. little despite really

programs. value those in around bill higher to program, certainly that. ability marketing MSP as strategize as see partner MSP that well they around strategies, Our around rates, receive in our benefits utilization, And with with they fill from other clients our rates, that them

from who and and the evidence us We forward the year. brought the we of in many -- their reassessing market, on to the very perspective, workforce pandemic, the new last program that's now strong partners really are towards engaging strategies solution throughout the and seeing clients going quarter in without conversations end a a pipeline were new and business turning

So continue managed services we're to provide current expansion, very be prioritize support with and able the but take more our looking and bullish to, to programs, to on industry. our more

Mark Marcon

That sounds promising. really Congratulations.

Kelly Rakowski

Thank you.

Operator

comes question Sommer of Truist next from Tobey Securities. from the Your line

Tobey Sommer

hearing shortness the was what if the and I you as, full-time you. supply you describe wondering into short are Thank there labor you could which extent have staff like labor the full-time you're out, the to describing visibility structural medium-term from clients Do remain vacations, delays, seeing. other think a the to and force, seen to such that things, issues, I'm Thanks. where we may or and/or I early do catch-up take the imagine? retirements year, in things, burn last need accurately, have the may to it from versus hopefully,

Susan Salka

similar just good existing a you've being things, very get to in to anytime be whether to their that staff believe do burned combination large large ending that come, that what staffing there's -- little it a of to been choosing many of other soon. for people have to burned out, imagine, of a difficult. people Susan. quality from Tobey. standpoint. where question, their of see that, They one you today. outlook earlier pretty if the they care as we But and of it out just happening those they I important call those much becomes don't more and and in can daily vicious systems quit all are Landry it's conversations workforce other clients much things fatigued, bit And largest were you're is Very and levels the makes a are from our Yes. circle, wanting right, years retirement, with clients that will and a This impacts this described. getting scenario it's Its hear a about on understaffed, shift it

because them them And what that, do to midterm things collaborative urgent of longer immediate talking actions term. get then and do certainly, need we're immediately, with staff can can also, they the but about, and so, we we

the And that like RPO. things to of offer have solutions some we are

we've In and phenomenal and recruit provide staff. many large because where great where grad practices has go we a we to permanent. are second individuals programs, a so new new fact, had about clients pipeline forward, those and clients, our and can done best of clients provide RPO ultimately before We're can assistance program grads ways, our quarter talking going business preceptor their new some -- new wanting in this permanent with with a

has serving international years Our and Remember and phenomenal opposed business, assignment solution. of are cards with to as done a as generally That international a before nurses they are two O'Grady-Peyton. for green seen us team on come clients. permanent on staffing core solution, job temporary over they a go

have of our pool address may So I'll to flow just which of use more solutions like the when short-term, that add that optimize for valuable. they things one needs mid-term we're have conversations become need There's is have. nurses how kind technology, long-term and multiple a ability locally they the we for that them technology clients that we're availability having and these do thing. fortunate they why discuss management also very bXhealth that and And with

Tobey Sommer

to measures medium-term legislative heard market that the of sort to because to you. impact something many is impacting students sort any, Thank supply any of, industry-wide years Right. from or supply? over away any could encourage improve you changes Have doing

Susan Salka

I'll things things or there's practice of discussed which -- states slow just that on -- like physical There start Compact now and are started nothing Dakota members are albeit with Licensure material compact involved. has advanced Right. significant. certainly compact. The really License advancement that the Nursing There with only XX has XX are being therapy getting North compact memberships. is The there's

and those to of of the things help enabling state clinicians All deliver crossing mobility faster. lines care

materially and utilizing been their But of to TREAT at level national crisis, that next moved the the the across clinicians going of times a Act to of in well. as be able national healthcare We help have to is licensure clinicians lines around supply would we're year. none state in get change introduced which bit that's in a

Tobey Sommer

as question with you market people cetera? a efforts that had? as times recruiting streamline in technology a Because be be these the normal spur on and maybe and of onboard fashion as innovation, frameworks me. a to see your comment it from lot there internal credentialing, automated -- Last possible times then crises wouldn't on Can in juxtaposition And is juxtapose of going maybe to processes that et a and you Okay. embraced. implement acceptance in if what's

Susan Salka

the certainly it across Absolutely. maybe a or advanced The within cases last was industry. hesitancy whether adoption has innovation or utilize technology both candidates I think be to many year AMN tool with well. And there, In it. there the as and but clients was

AMN assignment and for So But to certainly get enables their we've personalized One is for in the example our want also process greatest new the them. onboarded. that do industry and definitely it ability we of push we We've going getting ones learning AMN every we to great should seen to things great did the new add? the the there functionality. adoption search and are ahead we're which of opportunities do are out miss but only jobs gives anything of are clinicians not industry. We're as the I But you experience features their doing Landry, can great that seen them credentials the our the industry, practically uploaded leader app to things And Passport faster we week the next majority adoption of personalize within interest accelerate and them differently. these capabilities. day every be believe look the to Passport. for out be of that us enables to of rolling digital

Landry Seedig

things beating adoption. was the that still -- right. to over to ahead and mean, I we're of of No, their process clinicians the have take have do and to mentioned you expectations But more wanting control We're career. talent. that technology within you be -- the our able wanting

investments and team So actually entire quarter, increased team. today. made We've lot talent recently there also We've not we but members, of year even this talent account In second our in our to double-digits higher producers the made doing new our investments making in the team. it's to organization. attract our management investments recruitment percentage our a number we're only a in existing as

to then in was of per double investments. And within all Tobey team acquisition. and what systems we probably So we the you their are those And before Medical members processes. person make our -- those did or our now that continue I'm remember more than acquisition is advanced productivity the sorry acquisition and it Advanced

doing an team So excellent job. is that just

Tobey Sommer

do that. follow appreciate I up. a I little If can

To of intervention passport You know in might credentialing versus could us the that quantification what kind an this love improved business. look under a example time, process? has you that today human of we like extent improved the or give more the

Susan Salka

why think So let externally those have that why to would for something internally, back don't that us Tobey? Yes, us don't on you you. work let metrics you you we come meaningful we but with be

of have – tons We yes. of course

Tobey Sommer

you. Report that. Thank

Susan Salka

as that action We'll take an item.

Landry Seedig

Thanks, Tobey.

Operator

comes question next with the The from Credit of Rice Suisse. A.J. line

A.J. Rice

Hi, everybody. couple of questions. A

you -- to rebound them they're there's for back. Do thinking pandemic think didn't do months of further I'm you all, seem others we still of you to the you were and the to demand. height think the some interim the of coming well and I also rebound to there's quarter be or guess, the therapy that saw this fare in and side and normal, the and of Allied back room understand not coming those in trying First strength in permanent as as of some unfold? see placement I'm mentioned now maybe areas the leadership

James Taylor

start with Hi, I'll James. jump and A.J., business. the this search is I'll in

pre-pandemic within hardest what back from search than of will that in XXXX. our say through to HX our our to it seeing significantly to XXXX to that sort business hit four HX So search the is had faster was strong which and business have our have I getting we ends of guidance management pandemic say our disclosure mid-level search coming of news will and the we sequential forecasted specifically back or of pipeline is levels. was see And quarters with recovering is the and of continues good growth the be we're business. going inside of I But academia. business demand pre-pandemic

is we back very the interim business good bit and coming are some is. search a we interim the where seeing slower standpoint there. So, very From feel but little business pickup about a on demand confident

of volume finishing has consecutive orders eight to consecutive quarter second pre-COVID had assignment. contributing interim Our record improving and really levels its business X% of of three on quarters above interim a months

Our demand has MSP that's also clients. returned driven back core and our to by and pre-pandemic our been levels direct

we feel that. we able are where be and standpoint demand very good revenues So, from to a about to the travel from

Landry Seedig

on Their single upward are are their in Hey in levels I'll record They against Landry. that support. about frame. Allied. in demand and relates across April Travel the executing things did very hit trajectory. a have. dip continued it A.J., record to of just that large us. they same for at just actually as it's that time in that levels today has number team see just are every couple specialty of they that become Nursing that And Well, business job they a They done saw we space. has like an demand one fantastic up not has And those demand

you it, significantly is due at up changes. is So, highest talked the that. and executing respiratory the That is therapy seen prior with expect. but against know Imaging back year, same would And that more demand the about from I probably of ago peak to some then we as is reimbursement down laboratory. being probably the well flat demand pandemic I've level team five from quarters

A.J. Rice

aggregate Obviously, sounds was out assignments. way on there COVID of assignments Is I got percentage then of the rates. those you you've probably traditional premium is just got wonder I Okay. And your and your any it you're down seeing? rates coming what That parse bill sort to think bill rate comments. the like.

is Given quarters last in have the for materially if how the know few versus many I pricing your you statistic the don't COVID-related of to those the recent what supply, a tightness is of quarter were happening as it you'd non-COVID assignments? share changing? assignments And on

Brian Scott

add this A.J. then some color. start Brian. is I'll Landry off and may

start the The really I highest and think rates our first in the across inside environment don't high is our this COVID levels. of attribute And try the to board. versus level quarter. clients and COVID drove peak of in hospitalizations to as with reality we really help in non we significant you need demand COVID. separate the the course, And at can the the were to some that it mentioned

somewhat March, of the talked record specialties. all staff as we're driven happened And has off course of now this seeing we created levels opening and an it's on the level in in pandemic came of dynamic. very health utilization in that Again, much conjunction and we but come all but see we this we geographies increased burnout it's down. of that of a really would high across that's kind As anticipated care peak expected our byproduct that with rates all vacancy remarks. demand not as that they're had the Susan to because It's of COVID-related rates dynamics

point. just overall. And COVID-specific really not of up so a lot talent. scarce It's for that's at what's driving It's rates competition this

comes -- point time the it kind again So one the at down there of rates was where work were high. because in very

the of more not in orders that a have now the maybe bill higher rate we rates now, quarter. highest had in But bill totality. seeing levels at You're first we

so we're it's And at overall keeping into as the those booking levels. very rates elevated

point the And harder it are significantly above we XXXX. in early under sequentially it's part again quarter. of coming a the being So, in down rates were those third is, mentioned still to And XX% see But where at where with they demand this down. down little just in QX. that

quarter because so come they just a little need might country. if there's in across much In anything up just mentioned even as fourth Landry fact, the bit the

A.J. Rice

applicants best Maybe Are considering expanding? Is to when that well. more last assignments you is generation Okay. question. like I the on want the talked pool? assignment as wishes how people on open add applicant my just and a are Brian We forth travel first trying That's little a off bit -- But you Lead and this? time. an for so about taking seeing new people great. to what assignment. come you're to

Landry Seedig

Landry. good. really our look it's supply A.J. Yes, metrics although

a was track are highest Of it -- are different year. Last really course, we're we prior year our year applicant pacing though In of lot record. particular year strong. And lot ways. tracking we this our of on new ahead a numbers

also. nice that's that's good then business. conversion coming supply a stat rates I thing that see look into to and good So, a think the really good And

that probably way lot that experience in still the that a people made the the on AMN mentioned contributed allows we've improvements of an process easier make to it Passport to assignment. all through and too has think of I we've to some that

A.J. Rice

so much. Okay. Great. Thanks

Brian Scott

A.J. Thanks

Operator

Kevin Our question comes next from from the line Fischbeck America. of of Bank

Kevin Fischbeck

Hey thanks. Great.

to be the and also was is sequentially that look the that to and a would -- it Allied. Just they're wanted workforces looks part sequentially But I guess less is the And of your revenue down. guidance the the why Physician little to which dig to Nurse it case. biggest doing bit be like right in obviously guidance going like it into the me like be down like looks -- clear

go what outlook be for would could into If each business? you driving just that

Brian Scott

Sure. I'll off on some color kick to that. provide

come peak point. down of So think at they Nurse again one Allied rates the elevated March be should bill we on the they're as talked they're even off and really -- I that the was that number levels that though reason about

quarter. their second we down so But by of well August, the vaccine is Nurse are point point. as of it's slightly at the it's kind as had they -- September. down and hit And slightly that of some projects the this quarter, even out in really And kind lowest even in July driven volume you average as just in that's sequentially. up

So that we you at projects up revenue did most part those the can this from for some pick imagine point. ended

actually -- sequential of some because that change. just up reality volume on see slightly stripping you'd of down quarter, that's that be kind out, you're you'll so but And still of the basis third a is

a got schools of side, from you've the Allied decline business. bit little the On a mainly

in assignment well. you similar outside get a and have do slightly you summer of into the during it's business down you of core is the The on the on number might therapists leadership, be on range. where basis. math Physician that still that sequential of schools put obviously as months, summer, you relatively growing As lower but depending outside

Nursing revenue back the again look business with the of interim so to on Some are solutions, impact and the half was really positive Technology rates trends performance And again down though same for year. we underlying of driver slightly on the Workforce projects-related, does the VMS. Even there. as then have the an

-- impact you've but kind again, average that the good direct a the rate line on trends with there, industry rate got of So down revenue. top has across the

and So I those would the ones. biggest ended in and that Workforce had project contact were last say Technology the quarter. also second we mentioned Solutions, in year also we a tracing

as quarter. a into third sequentially got the So, we've go you tougher comp

Kevin Fischbeck

more relatively about I there's then helpful. when risk back a not meaningful like COVID to I guess And that's just guess coming half? maybe that fewer what coming That's the perspective. with September so but going kids to hearing providers It think days. of to Great. talking point the whether seemed care to average. Why to them. tailwinds sounds degree. to labor be go like issues, nurses away those quarantine some of of it you're take labor any kind hey, and about seems potentially everyone's have comfortable pressure these But back-to-school, supply back. to, Okay. questions that companies earlier they'll benefits the acute and in you aren't unemployment the so them go stay supply And home to some risks of back who seem on some outlook to very from talk the down, they to seeing are staffing

Susan Salka

Yes.

they and there's into for from beyond said, that the our like to of some be it hearing clients of really challenging hearing are affect that placement the fact, We element But aren't some stayed next incented being supply year sort nurses you and in I benefits all opposite. to The mean, year been continue quite that certainly shift. work very going be the all, to highly home. at have be even of maybe could remainder aren't We're expect and of unemployment schools today. I structural clinicians. as of nurses think likely the there our to at

want to a they and be they've at if work do to so. there's reason there for be incentive financial to them So the got

the relief some just that not clients around from corner. expect our to we're sort So be there they hearing that of

Kevin Fischbeck

pick the think of rates should should question, your Okay. and you as And and margins Oftentimes Is then next during up. have then pay kind that flatten lags should we rates several to period? that over bill we trajectory I guess, in say, anything about quarters? of talked be start How versus to about kind about mind rates gross other. last this maybe there I think utilization, keeping bill starting we each

Brian Scott

saw we And we only you the of mentioned. the revenue The I'd the of XXX that thing strike-related up mention for gave part guidance QX guidance, points -- that is because that was sequentially. around basis

that event upfront in and dynamics preparation an it. there's influence some work in way on that the margin a that revenue Just has favorable we for get

across that, the pretty stability And and very with a team really board. even, packages, margin they're into shifting say, third the really stable navigating of So giving job a a challenging and quarter. as rates outside fourth done has trends we I'd nice effective there's time pay the as go

-- really at to business is a stability. driven be unit should to expect between but So more we I see shift the a businesses influence the think bigger going level, by and mix

Kevin Fischbeck

All Thanks. right. Great.

Operator

with the Tanquilut comes next Brian question of Your Jefferies. line from

Brian Tanquilut

it business? margin continued business the existing guess, Workforce from good as to the Solutions I the business. the well. the into Is different good of it the I the that mean, seeing selling on move in and guys. and Hey, just I luck strength And it your drivers is thoughts relationships? question, opportunity at that? looking new afternoon about Brian follow-up be I would congrats Technology first on given just we're then, cross-selling? that think Is should strength guess, for that How my that.

Susan Salka

add in to want may Kelly and start I'll here. So

been drivers bit the have the included that various in different there. a businesses of are for Some

had increased really clients volumes language getting from some those for to existing more they utilization, benefit starting service from the their into and last expanded services, it's seeing to and so over the client facility continued wins They year, of areas or So facilities. volumes as those. expand new see nice and some been their they the using other from launched

I have just of those of of a the bit to it say Although, delay launches because was little in pandemic. some a

So, more of that the into benefit will really come future.

that, their We the our in are come preoccupied but with growth. cross-selling we've saw MSPs, into pretty majority what other because the overall not existing things growth from with dealing of you did been in

stronger additive of get by margin. of bit And probably course, The added we over or the VMS the various has across certainly as to were A bill to year. great right? then, although normally I are we made that did has as getting a wins clients gross as the mentioned rate in or did any drivers would of very that cross-sold. access success. did those seeking Brian a the growth impacted also in So their solution help there the segment progress strong businesses, had quite lot of a really are them have we them really help much clients margins would vendor-neutral as margins expected higher additional talent. them haven't volumes Some RPO, VMS, the bit increase last that really lot great in improve the very, of some solutions such or been better mentioned VMS.

that a see the super mix might be be down the come the Travel of bill it won't will Allied other segment across of still as It business. parts and affect big grow. As as of will industry we positive, rates maybe the VMS but growth Nurse

So Kelly, what else you want to add?

Kelly Rakowski

technology job about The mass deliver full -- those comprehensive is this think year integrated to We've another I would solutions lot like sites. the solutions multiple thing Yes. really things great of that to for only and fuel more Susan. vaccination growth we've a is a solution. used that delivered will complex add thing Brian

that looking the telehealth services Synzi, as Smart scheduling, Synzi with virtually. platform can to Square And delivered bring full integrating talk receptive our how that together that. see platform. utilizing we bringing and platform start very a market of for a to VMS continue platform is clients staffing that we solutions both our the be bring we labor the language on to clients' So, component

So, solutions. that beyond but goes will fuel cross-selling growth really just that, I think integrated

Susan Salka

in they've give team been to to joined have just and the win health the I a wonderful of part had Synzi within a MSP that category. And and the because a and were us, home addition. a us very win out such non-acute our client we they fabulous that call instrumental commitment space, a capabilities improve of new helping

to thanks Synzi So, our colleagues.

Brian Tanquilut

I you'd strong that? just allocate That's mean this much flow awesome. redeploying free about on thinking be I capital are side. And you're my mean cash deployment if thinking guess million question, second quarter. where $XXX you the cash, was we how I should that? generating really this

Susan Salka

those infrastructure you're our about of We we're certainly internally. the and that course, it our in in in people. talked or I of be investing think and benefit Well digital investments, own first, seeing whether

the sub-acute Synzi that. got in of add the part to want sure in in we think to that about we home services, strategic that sight of that add When mentioned great And market to us space. we of really lose to capabilities. additional in case, opportunities growing continue health just presence we've a and want was technology we address to the a make and never how So helps capabilities example other a in,

we've opportunities, us that and helps those has does So great Allied we could our something for could stronger It space, like be in these two table, already as out kind priority to so our are a as probably all particularly might space, to I'd to always market part Synzi new, That's Also more really staffing and clinical does consolidate to opportunities but the deliver client of a net clients. we're I'm relationships, solutions fragmented Locum brought are But, disciplines, say to as recognizing the us. that been high sure be terms technology capable want at it workforce in a shift our or that what need in services. in ago, in on seen shortage at that build there always something want in absolutely within capability interim look new very leadership. doing us. consolidation our raises looking since longer-term addition Nurse the of the in something of do than growth to we and that the years be we'll this demand, be possible was it just when how shortages that we make trends consolidation we interest of

Brian Tanquilut

Thank you, guys.

Brian Scott

Thanks, Brian.

Operator

Mulrooney William next Tim Blair. line comes Your from from question the of

Unidentified Analyst

questions This here. on is Sam all doing well, Tim. Hope guys. you're a for Hey, got few

But they you And think to lower previously would environment? XX% or year. settle more maybe higher anymore. when thought bill pre-pandemic rates levels occur? XX% now higher relative if expect the settle timing XX% you case might the sounded on not XX% us I to a this normalized that to like to update it think the you by you this end Can that's the than of during

Brian Scott

to improve, there that's of pandemic the on led we than would be we're magnitude say, in rates. out the at We definitely than a higher honestly the and way demand Difficult but Yes. seeing but And as more things anticipated. anticipated. more definitely and these point, heels that even more this elevated knew severe is more vacancies we've played to of that those has

really XX%-plus the metrics down. above rate given would it quarter point this a take still to fourth But don't honestly, come point at we're pre down where materially. demand when in kind So further. it at expect we've scenario in would would we a the to pandemic. say this not the quite was to change you of do point, If -- where hard I it if to that position go And is, stays imagine them it's

plays that that's something how to into have see we'll so XXXX. really down And

Unidentified Analyst

around wanted Maybe you've fair, super is on with there's here. variant questions Delta clients rise, had continue of good more with some No. pandemic gears it worsening. to should I seems case contingency and really But color COVID ask switching the that. the guess two It's there. still to this conversations I

First, negatively for how even higher second, you recent nurses, OR are demand rise continuing you maybe thinking about are think or Delta as it affect hospital might relates to in cases? ER demand? nurse this rates move utilization do And to despite the

Susan Salka

the patients keep One outside and year, of normal the out, such of think learned the health the is deliver things continue organizations care that could patient COVID pandemic last in as through they and happened over things figured to patient how I because and their And isolating open care procedures a if from patients moving in lessons even we're committed keeping the hearing doors have that And demand, greater urgency pent-up to sure open. them the seen. are coming there's keeping facility anything, normal they the flow. and their the of to what to they ORs make be is all

assist. – they're have OR it's still down they to in factor an scrub don't right to now, So gating nurses techs the absolutely If close having staff. is because huge and it's come or a

clinicians, drives we what going to more that likely normal asking? So of that, you're if patients of it's that's demand, affect or think utilization sort the of kind demand not the

Unidentified Analyst

that's Yeah. I to Yeah. that. good appreciate No, hear.

then. next Tim know at I'll here. as But well, in your of I it endeavor best Brian, I leave luck think, I that for speak

Brian Scott

Appreciate it.

Operator

Sidoti. last of question from the your line – comes Mitra And your comes from next question from Ramgopal and

Mitra Ramgopal

Yes. partnerships like make Thanks I you? wondering, on might taking has to an quick or more update you even to partnership, had for talent if Randstad needs, questions. how had for Hi. that? I as the you and worked And one. staffing afternoon. if all a just just Good the was the acquire it on enter relates – need and need out to into Based address

Kelly Rakowski

partnership it's is Kelly. Yeah, going Mitra, Hi, the Randstad very well.

of together way. and increase in We needs can continue comprehensive to MSP complement them full existing course continue program, our programs. to we their so a collaborate in bringing many support together with with clients our We suppliers of contingent our investment integrating

that looking don't and to go can we at in so Randstad, at table other have other capabilities certain industries and influence globally. with clients pools. also we're different can or that see any practices insights health real both beyond our and even clients and the the looking labor bring of we might just we that care they capabilities kind data bring But to to analytics our gaps some that ways at moment, of staffing other provide that our we And best in

and continue So on to going focus we're invest to jointly. that

Mitra Ramgopal

And that's best endeavor. Brian, new No great. Okay. and your in luck wishes good

Brian Scott

Thanks, Mitra.

Operator

are this at there questions And time. no further

Susan Salka

everyone you joining for thank us today. Well, Great.

really team country, see talent and clinicians their alongside with are We and collaborate that, this them but and soul their and to our single bring and in a As always, all also their proud part honored our serve every lean we're we amazingly talented clients of. and passionate day. our heart to

we of our you all So to across want incredible thank to say just the country. colleagues

Operator

concludes for This Thank today's participating. conference call. you

You may now disconnect.

AMN Healthcare Services (AMN) 8 Aug 212021 Q2 Earnings call transcript