AMN - Earnings call transcript Q1 2022 | AMN Healthcare Services, Inc.

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Operator

Good afternoon, and welcome to the AMN Healthcare First Quarter 2022 Earnings Call. My name is Brika, and I'll be today's event specialist. There will be a question-and-answer session. [Operator Instructions] Our host for today's call will be Randy Reece, Senior Director of Investor Relations.

So, Randy, please go ahead when you're ready.

Randy Reece

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

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

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

Susan Salka

welcome, and to that grateful very much, you're us We're news. so to able be pleased everyone. share today with you and Randy, some Thank here good

a earnings what discussed last we results call. We with are on reporting positive outlook, and consistent very strong our

we seeing tunnel. enabled an of end and team dedicated light pandemic professionals at two all-out and care last the the the Over the health AMN years, response are to now the our

that shortages taken foreseen. the way healthcare healthcare toll exacerbated of could clinicians, a professionals extreme the workforce not and However, in the been a have in we and have particular, frontline accelerated has on pandemic significant

approaches community the clients, need opportunity healthcare of the workforce. solutions. new industry. for and and that the decade innovative and staffing A methods to paved our of other a solutions We our technology partners little the healthcare in requires workforce situation a identified now for over clinicians, into and efficiencies bring are way how support enabled AMN We create and ago,

job Our of is and clients hires. MSP relationships and AMN to what making revenue deliver the flexibility of the benefited exposure these monthly Clinicians need fluctuations. insisting our paradigm. as more are already and healthcare was to to have evolutionary well our seamless AMN and risk AMN leader and coming leaps reimagining experience. All benefit. with at talent clients higher total another their our digital mix the economic as want are staffing significant evolutionary and significant I in Because on and tech-enabled shareholders in unprecedented beginning stand diversification times the of more from years. platforms X.X reduced market faster, openings in pandemic, are Healthcare an factors, the solutions. Prior experienced solutions, our professionals these we time the number stakeholders as of compensation, digital well-positioned certainly investments a at industry. our believe in

supercharged investments and several two capabilities. have those past years, launched the new Over we

advance they outside top the work How drive who of as challenges all posed three innovation. for of as the great organization to well flexibility professionals programs how like for healthcare also Our These embrace significant how VMS preferences experiences can AMN the to capable managed can today workforce? large a the providing with of collaborate And changing and multiple services embrace facilities clients younger ecosystem, attract opportunities questions and only platform. region? is local they scale to willing the but careers. those conversations delivering able include can and they their from organizations get the across clinicians want

MSP at Today. growth billion One VMS Just of named Number the annualized by spend provider approximately the again HRO quarter an first MSP were We in this rate record under and hit we $XX week, healthcare management. high a in new

this solutions to come a comprehensive to returns the these and future. are staffing requesting rate permanent power believe down our with continue opportunity relationships level, sustainable The temporary While long-term we run pricing short Healthcare help and employers term recruitment challenges. clients will the address allows increasingly as solutions us largely of the challenges. diversified volume will workforce to our and into

than needs. distinct by unmatched with their of closely working clients our solutions portfolio to XX address We differentiated workforce are labor more clearly complex

few top XX last potential. they great but AMN's solutions, clients eight average increased number Today, gives the which the years, solutions clients us have represents use. progress, our growth our AMN Over on also of tremendous use of

revenue adjusted and first for $X.XX I'd Before was first the to quarter team both more of like we AMN billion talk the $XXX EBITDA million, the record recognize levels. in the about future, outstanding Consolidated the quarter. was achievements

the were nurse Imaging, year-over-year. and revenue revenue rate XX% of Allied by growth by bill driven higher by Allied growth, reported segment quarter, due Nurse for than all XX% growth Our more volume grew increased therapy lab, XX% $X.XX clinicians. and Travel in and strong. volume. compensation staffing with year-over-year billion year-over-year first Staffing Solutions XX% respiratory, of to including in both

coming is second would the the year-over-year is we growth higher this, More pandemic. are subsided we resulting increased thought with of have the quarter. and be This Nurse from segment, has reduced. Nurse where period and as of the and move projected Allied on demand rates are means our clinicians revenue the come in approximately volume the bill down more we we assignment. in seeing expect grow through in same very half the now earlier we and since we we Allied also Based we pleased to As normalized still line expectations time than the segment is to year. XX% see demand compensation This have level, than our which In a before XX% peak -- second quarter. on than crisis more

reached revenue quarter segment in down. Executive up grew while a million record XX% had record new also grew growth XX% $XXX revenue year-over-year solutions Leadership Interim and leadership and an Physician business Locum highest revenue year-over-year, revenue with was year-over-year. pandemic-related $XXX year-over-year Search Physician had Tenons reaching first XX% Core with with ever its of growth. quarter. impressive mid-teens XX% million, revenue quarterly the first Our year-over-year.

pipeline search the search Physician is solutions of year-over-year. -- quarter Leadership In remained revenue executive searches physician strong, opportunities the larger we approximately expect Solution and and Leadership to for grow from second mid-level New clients. for the multi-search bolstered by segment and strong XX% XXXX,

making XXX growth reach and Solutions otherwise Services and the quarter business and Recruitment are stakeholders are pandemic agile, future. and workforce solutions. unfold. million, more our more and manage and that Technology strong strengthened, would and showed Process how revenue Technology about position while deliver the of empowered up focus AMN first most Our delivered for greater second to of technology Solutions segment effectively to actions portion be all professionals investments greater embraced with in and and expect came up on We us we pandemic, Workforce increasing years impact requesting across Because taken team XX% new XX% is proved our the in make relationships and we greatest made have goals. revenue conditions. quarter can lessons The year-over-year. environmental, scale of also our from views With commitment changes Workforce social, our business. market growth we revenue changes a Outsourcing that high of as of ambitious diversified strategic XXXX, a before. range We learned with took of VMS moved market a pandemic Language many year-over-year. to wide And certainly healthcare we strong us accelerated and swiftly The governance segment another forward real-time value and of many the better we Technology the can clients growth, during our In behind ever operational that clients. faster,

diversity, the people Over amplifies the workforce. is culture. of opportunities The values, that create and healthcare increased alignment equity, focused a and work meaningful year, our we who to with on seek for talented organizations of crisis AMN inclusion, the strength purpose-driven enabled last resiliency our in

will environment give for industry AMN where and an companies fact long-term with diversified saw well a called lower survey, portfolio. goals. members experiencing for solutions. AMN benchmarks their in in engagement normal uniquely and Team pursuing attrition, increasing in of them positioned total remain fact, the market supporting the in In most of shortages, personal team culture, power AMN's specifically colleagues significantly about appetite our persistent confident environment employee We than of opportunity. out quarter, ranked flexibility professional are the members first industry post-pandemic excel that drivers our across that is organization growth key market the and to These categories. above their need In our labor attrition. and growing latest the talent levels than strength the a higher AMN the all care normal include

session. strong in team, join are James, just clients few great us and will need minutes, culture the our giving strengthened us In Landry now we into our future. for exceptionally customer and insight Q&A the and and intimacy, leadership, from have what us Our a our Kelly,

I financial now, call though, Jeff, insight turn will results. who our will the colleague For more our to over into provide

Jeff Knudson

good Susan afternoon and you, everyone. Thank

above our increased driven of revenue from billion $X.XXX quarter First revenue was outperformance year-over-year of and by end guidance segments. high XX% range, all sequentially. Consolidated three XX% the X%

Year-over-year, XX%, in quarter $XXX points XX.X% year-over-year prior higher Consolidated and were with businesses. million grew revenue, SG&A disruption nurse the XX.X% for $XXX revenue revenue supporting and mix and staffing XX year sequentially. from of came The was million margin operating quarter or revenue of revenue of $XXX or this compensation increased growth the adjusted offset Nurse excluding team basis certain points SG&A on to quarter. $XX was lower for in billion, expense labor by the the the basis, related basis quarter. revenue quarter, a higher the In Excluding XX.X% $XXX expenses. growth, with improvement shift margin higher or higher related year ago lower Adjusted ago stock-based up up towards compared sequentially, first $X.XXX and XX% revenue and our XX.X% compared million expenses clinician and was leverage SG&A Allied non-recurring team expenses to sequentially. in and quarter, revenue and in compensation staffing expenses higher expenses. of revenue sequentially. was million million was XX.X% due margin or primarily year expenses than XX% a consolidated revenue from year Gross lower previous $XXX or due XX On rewarding, of margin SG&A than growing, prior our members. XX% million the and sequential partially by higher member SG&A

prior Our business a Travelers grew Demand nurse and XX% grew revenue January. record XX% in high over year on for level XX% assignment travel travel hit nurses year-over-year. sequentially.

nurse margin result, than Allied volume Nurse expectations bill Allied XX grew drove gross basis crisis-driven spike growing As XX% volume faster prior sequentially. points sequentially. XX.X% sequentially. basis up XX% and travel XX prior was lower year and points year. in of a up year the XX% and than demand The $XXX rate. down Allied was was XX% from to revenue prior million, over pay

year was was year prior was basis gross Solutions XX% XXXX. and professionals first from Physician fourth as higher basis sequential costs. and basis XX.X% XXX EBITDA disruption sequential revenue. XX%, The lower compensation XX% XX% the points prior XXXX favorable reserve and points basis the up of Year-over-year per a a million, was gross decline mix in year of was comparisons up X% the XX% as Interim partially year-over-year basis. margin income and achieved capital over basis sequentially. of and XX% reported were was XXX from growth well Leadership offset EBITDA and lower first year leverage high was lower X% of higher and of increase year higher basis million $X.XX by revenue margin and compensation increased segment than last XX.X% year-over-year XXX strong million. margin million was year-over-year on of $XXX in earnings primarily first $X.XX for result, higher prior margin at XX% revenue Tenons per prior up this XX by affected points points year-over-year, not quarter million in year ago last Adjusted quarter recur $XX of sequentially. under and offset XX% margin XX.X% that quarter due spend down in due compensation XX.X%, first earnings primarily Segment was revenue XX% was up margin than and up quarter. EBITDA ago quarter revenue did as from $XXX grew quarter. from primarily revenue to prior down for higher margin, lower sequentially. higher Leadership. labor due from $XXX the partially increased These a basis in XXX% the points days and the improved share strong other growth Segment leadership of The decline margins basis travel, flow points and than decline lines as sequentially. segment the diluted $XXX Solutions and lower for points XX% increase points Locum Tenons' XX EBITDA margin by basis XXX by sequentially. than EBITDA sequentially year-over-year year-over-year, expenses, by As sequentially. in gross We quarter XX the as management. than increased a $XXX the XX revenue healthcare a gross Interim with points to adjusted Segment SG&A prior sales was year-over-year. leverage XX.X% Locum basis significant Search outstanding year-over-year in gross workers' of service points XX% $XX was is by points insurance line was and up This XXX percent gross quarter. cadence housing, health margin million, changes sequentially. sequentially. revenue was XX year EBITDA sequentially. $XXX was $X.XX VMS XX% and margin and compared for in a in in share million, basis VMS revenue margin performance quarter. Gross higher and year XXX Workforce and prior the the basis the quarter sequentially, XX and up with All were growing higher sequentially. was accrual. and in better to margin due was by Consolidated Segment XX and points million net Adjusted well Operating was year-over-year business. billings of expenditures cash other Days in to margin the due higher margin, a driven through of Technology days, and the incentive year, and of the very four revenues revenue quarter, XX.X%, of

stock used leverage of our a million, cash of and debt repurchase times million had of net shares in company million, equivalents As XXst, $XXX one $XXX of we long-term X.X the one. and a to the From allocation perspective, to of ratio $XXX cash March of quarter. million capital

a remain as XXst, balance ample March pipeline. XXX investments liquidity, our internal focused our and million remained With sheet stock repurchase authorization. as under we acquisition strong well of on As

that solutions is staffing priority our select revenue and to improve and Our add profit would technology-enabled growth more sustainable assets margins.

million to includes to amounts to labor the turning $X.XX revenue of XX% the billion are in second quarter of revenue to Now, disruption guidance $XX up projecting year. billion, $XX we guidance, revenue, prior $X.XX Revenue the over X% year-over-year of range XX% which growth. million to consolidated approximately be

to Other be today's to XX% be to can adjusted to are release. quarter projected is revenue. projected XX.X%. XX.X% Operating be guidance margin quarter EBITDA to Second XX.X% be be to SG&A XX.X% earnings is margin details XX.X% XX%. second is Reported found margin and XX.X% expected in gross to to expected of expenses

disruption message the Our guidance we carries quarter way out the had that second labor expected, the playing is the excluding revenue.

continue and third to $X to our billion quarterly EBITDA XX% fourth out of at margins. We adjusted around revenue expect settle quarters

up was in quarter, the bill bill the average plateaued Allied, Nurse and rates March. double-digits For sequentially in rate and low first

seen double-digit rates and expect sequentially decline We third sequential we we far, placements in bill to have thus Based have in rate second quarter bill the quarter. largest current changes rates. declines expect low the the for on

with bill we level. than Allied Our first that expectation and the approximately year rates will Nurse XX% stabilizing remains lower quarter exit at the

Our working volumes believe an and U.S. efforts, needs the XX%. outlook of quarter represents compensation levels. our this in fourth considering with the in bill at bill on compared based with average rest that rose Allied pre-pandemic is annual X% fourth nurse for the growth hospital to of and Nurse of determine year. their expectations reasonable about annualized XXXX, the in through We XXXX, rates view clients industry is rose and quarter wages and of rate rate This XX%

fast we trend healthcare half environment recent expect the is second X% shortages but our not normalized that warns base. As report in said a in business expected off labor improve, Board grow healthcare after enough X% to next an is projections, our According that out A Conference QX spending in where the in of levels workforce XXXX, call, not decade. the XXXX more we CMS will over to to previous serve growth worsen sequential the expanding need. to the by

deliver us needs to questions. call of like addition the now, portfolio diversified to enabled growth help this in And creates, to underlying the for solutions the to and years. In our coming staffing open we'd continue also clients

Operator

Sommer now first question lines We'll question-and-answer have session. begin from you. phone comes The the Instructions] of Securities. Tobey the we Thank from [Operator Truist

open. is line Your

Jasper Bibb

was Bib is on margins. Tobey. I just for hoping speak could good gross to nursing you Hey, This afternoon. Jasper

recapture pay it And would to reprice expect get of bit, pre-COVID long a do normalize kind of to some to bill we gross and started book take how margin? to you that think As the spread? see market the you a do that,

Jeff Knudson

the the expect consolidated those back Yes, improvement say some demand basis, see more into to Obviously, QX sequentially I more we a as Jasper, fully did roll But the improvements we QX. this with the On into the like we that Jeff. we assignments which half. in are comp in spill as those back said, quarter. will in we workers' seeing would are we in see by we over erosion coming expect is and adjustments with would in to the saw QX over impacted I is reprice would of down, rates see some seeing QX, half. improvement, we second bill

Jasper Bibb

then And quantify the for the I Thanks. any to you're thinking over decline think year? you Nurse Allied just third volumes quarter, changes can expected and and deliveries in the you of the how mentioned balance about

Jeff Knudson

Yes, expect third volume declines be quarter, From quarter I'll would than so we low steeper the expect we we a perspective, the double-digit Landry that that. let second said would in and to to give a the we And little bit second just first the overall half. more color, in expect to seasonality quarter. quarter flattish trends into the but then be some back normal would

Landry Seedig

nursing travel little and of that change bit quarter, some there, seeing a explain second I'll a there so the bit. just a specifically we're the of Yes, first mix,

travel then for QX is our the sequentially XX-week crisis international volume, from of our So, to our the nicely lower XX-week offset traditional business growing which also nicely placements. The And nursing QX. that's quarter some from just that to growing is QX. would second in be that to typical to volume so QX assignment, kind

the a quarter. first second And the So, quarter that. of bit of not continuing quite course, are saw into those

combine that's where get you QX to expecting that pretty volumes So, we're flat those, to QX, we sequentially. whenever

Jasper Bibb

on the updated just around tech update any Yes, adoption kind your sense. AMN they for progress you're there? I there of of hoping was that making could you Are could investments. us me, Passport, quantify metrics the Last question makes

Susan Salka

more doesn't recruiters that but across transactions of XXX,XXX features for users contributing to both certainly for members. with now the add the also seeing and Absolutely, them, which functionality now of support we clinicians manually. staff the have productivity have for the touch we're some be think also certainly some drives on used continue for team passport. and improvement we And our efficiencies, more to then board, dealt using to that's And to that that the

the great roll so forward. more we time functionality. was to to utilization going continue But see that different also last reported, we our add in continue we think XXX,XXX, it around to we as I certainly more business out it really progress across continue lines, and to expect

Jasper Bibb

taking Thanks the for questions.

Susan Salka

Jasper. you, Thank

Operator

Your Credit next of question from Rice A.J. comes Suisse.

now open. is line Your

A.J. Rice

Hi, everyone.

you fill on fill are if wondering going Or same you did update your today? seeing have? two could give still more an that you Just unfilled the quarter orders you do as the that ago? a you Are have to us about orders ability percent the

Kelly Rakowski

it's Rakowski. Hi, Kelly Thanks for question. A.J., the

fill seeing As to pre-pandemic. are levels rates. demand started levels have increases in are we're at still elevated But demand down, we our come that from

rates we partners strong So, for increase rates clients well, we're to certainly the our continue to network supplier filling as use striving fill our as for of those those client.

think the is I to continue start -- improve there So, message getting improvement as and better, normalize. is still to those for expect to we room demand some rates

A.J. Rice

those to last And the around few the to crunch, your taken the you've have heat you I been are into of people MSP non-MSP you customers decide couldn't about they orders? the talked some fact need and a able MSP? clients contracting that now of to activity those an you traditionally seeing priority, think of go prioritize, some that more pickup? obviously support there's move had that's you've seeing and Or have the enter quarters, that been MSP build Are during ahead

Landry Seedig

the Landry, customers Kelly from relationship. and we're into A.J. about its then I'll hit part entering of new what a that, will hit first maybe hearing MSP

you're yeah, right. So

our MSP we whenever management demand elevated. pandemic, still recruitment to that and focus changed And was demand so the customers. we've is our over shifted high, had account slightly, resources most resources on of So

there. the third your still bit demand kind MSP to there's party, and needed plenty quite direct point, of there's at our support So, But of customers. within a

where is elevated MSP them. demand closed we've elevated. pandemic, know, appropriate So remained up our has little opened during still those and support, but never demand a We you We clients, the did those more. fully bit

most customers. we that need those focused we're make to still So, on sure important

Kelly Rakowski

Yes, seeing and increase our our seeing just full solutions. what A.J. we add MSP market, in I'll the are for particularly we're in from pipeline,

If back strong look our technology vendor of year our new you seeing technology are percentage we quarter through and ago, a administered platforms. even ago, and opportunities. a three Be a more of our neutral

we're in more a more, interested to that clients our service well. now do as seeing and you full capacity MSP So, ability to add improved the has know,

we So, stronger yes, from was we seeing seeing a a ahead are we're QX QX demand, perspective, even had ahead sales slightly of us.

A.J. Rice

Okay, maybe a to pipeline, opportunities know, what broadening last update think to status, potentially guys the about scope M&A open intermediate near whether any staffing be question there, on seeing I there's out talked term? term, Again, the over likely the being you even I on quarter, you're last potentially acquisitions.

Jeff Knudson

those Yes, were certainly look more as but there the than tech we're was, near-term. right distorted still year the from focusing back in active the a our A.J. efforts activity you our well. say pipeline ago, towards where seeing now enabled is that's to assets solutions, what if probably And than I it staffing we're a would M&A healthy perspective, little really

A.J. Rice

a thanks lot. Okay,

Operator

Mulrooney We you. of ready. when Tim go now Please Thank ahead William have Blair. you're

Tim Mulrooney

Yes, good afternoon.

housekeeping a Just question.

the the flat be Allied expect sure the I segment, want and Did Q&A. essentially quarter second to heard volumes from sequentially you I for the say to to correctly quarter? you First, make Nurse first during you

Susan Salka

XX-week more shorter bill six to rate. that the up then up by to four combination crisis and of assignments those being term are up at weeks, of a kind some is longer assignments, and nursing nurse offset being eight. of international And Yes, that allied travel areas are XX being typically maybe higher typically the our

first saw in of surprisingly, disproportionately not we that So the quarter. lot a

decrease the which in to second But assignments with long-term end the So did quarter those are off bit little at headwind well. pretty ones but seeing the more volume. a fall that's the the tend second into We of as growing on of that are schools, we're minor. a unwind, that quarter. have

Tim Mulrooney

Got it. Thank it. Got you.

of sequentially billion I somewhat bill means thinking run expect first from on guide Or dollar Am the is the that half down the based tick that half rate into year. the then of back quarter, driven correctly? the the year, volumes it I for second per mostly your to you'd of by year half rate? So, that about more assume then

Jeff Knudson

by Bill decline away rate, the is that of back far base Tim, and the in largest half the of the revenue in driver year.

Tim Mulrooney

structural given area high getting space. But, deployed maybe smart of per across why wanted kind per area, then thing. curious market. in you. your know, AMN business money's more They're in it a this on hear being push tech Okay, reason just of uptick strong just your for a this. RM you avoided made seems I diem the of one bigger guys more, money We've you've more I'm only like your this level relationships this raised and bigger But a with today. why is thank the the of small also piece is hasn't more for market, an to diem And a in opinion healthcare systems the country. in noticed startups being

Susan Salka

that even pool a maybe pool that not talent clients operation a the local to manage aren't them, they in that bringing but clients created structurally we've can regional expertise facility that set because is, do actually with and our pool earlier the from that part in up, that labor be talent are just clinicians help things where either we float facility. for is they hospitals helped the travelers and how can are that a past, currently the do optimize you available? is nor of a do new few that. technology on discussing be like how already that discussion It's and them is more mentioned kind better us something to clinicians broader I working to running of And have force the there's float to want have perhaps version going of an float pool. where The interesting that

of a that can where that have technology things just the and place local, as that opposed float technologies both clinicians that solution, be management so that working we're them providing in bring That's to management system-to-system pool so on with the existing traveled from of to and called could facility-to-facility. we more perhaps for And workforce people. is table, we the utilized

Now But we they is their really the talent region. objective what augment pool first as well that a and optimize people can provide to already exists the within have.

think them. our for thinking us. So we solutions more do solution that's probably our grow But for that's of will really we expertise. the and can if partnership enabled they're local and staffing it, tech the strategic capability, We the best more

hopefully, that helps So answer that.

Tim Mulrooney

Thanks, It Susan. Appreciate does. it.

Susan Salka

Tim. you, Thank

Operator

you, We when of now Kevin. go of you're Tim. Thank America. Please Fischbeck Kevin have Bank ready, ahead

Joanna Gajuk

afternoon, actually, Kevin Gajuk this is filling today. Good in Joanna for

local for of providers don't they the someone travel travel hear as least healthcare employees assignments, because a for the Because the just mentioned full space the time. discussing clearly but they But terms would we well. into a come looking question last from in anywhere some they jobs, different -- quarter. called here. back, guess, time, I on for sometimes and were people other any in thanks flexibility these, that, like know, this of the stay employees update, you something is to you they who we gig there's nurses they up is, So those now left hear so of in these, at that in I healthcare, stuff really economy to taking same where But again, different find follow at expect entering right, types expect market,

nurses where you kind this have some have, going of you of back happening, already seen any jobs? to permanent of your So

Jeff Knudson

our some cancellations. couple watch, to, tell as be so hard exactly I I'll a metrics would of to first tell mean, where metrics turnover the they it you, we relates So, it's of that or go, one retention internally there's

by On clinicians pre-pandemic not have cancellations levels, our if seeing front, the cancellation would below slightly we're that been levels. pre-pandemic

certainly -- at So clinicians call years, many our a that to any then not seeing metric higher is out rate. we've retention. for rebook another watched cancel And we

actually for as assignment. our prior the you well clinicians extensions X% the first quarter if percentage retention current was retention. QX year it's quarter, So the their points And above as first took full -- six our of of

a was rate but we've faster would compared QX they the if QX seen. QX at all soft, average it last the a little a that this still it rate of us historical to been with staying have are clinicians you than or were So, before. year, bit year strongest numbers, of higher

it's certainly taking of to the demographic kind us. clinicians going younger not whenever mentioned not are of that, seeing where kind they're economy. gig from we're that know hard again, assignment that's, you So or And an

old that are out, XX. for we clinicians clinicians for right years looking our those seeing declined which XX are actually, whenever greater. of biggest that us are us that the working under our that conditions that old, overall else Our we're years is working bucket the XX actually, of under at XX% But or is something numbers, now, clinicians are decline, stood were largest only that are growth

So we don't the pretty know the aligns we've -- they reports workforce, left public seen, which but of well, that some

Susan Salka

and people assignments. coming point, applying are at think the allied is interest have with crisis flow. of in quarter how travel, first us the or in that nursing certainly of But many high as I application very we other April, and to new even we in still was lot a of very a high metric spectrum end kind

well prior year and above fact, pre-pandemic above In levels. it's

in So, there's the still I that, industry. that's think coming into great indicative interest

Joanna Gajuk

metrics this nurses questions the whether you. to one thanks Yes, of for to the color. some going some know, of come thank because back. these And everybody's you out it's Thanks figure trying of for these, sharing

you me. Thank sharing So from thanks for with the on call

Operator

of from Tanquilut open. Jefferies. Your next question Brian, line is comes Brian your

Brian Tanquilut

Good prepared guess, bill about talked the rates hospitals. I your and the Susan thanks. discussions are Hi, the you guys question remarks, first having with afternoon. in my you

you are curious the or that what year do the we're that, what is curious pushback mean, there? exit I right that -- acknowledge of going to conversations at just those Is think conversations than what the lot hospitals that like. a that are, number, those lower there So XX% Just QX? like?

Susan Salka

at the have that that worse. I'm the don't And see likely colleagues they acknowledged have in moment, going needs. that get but the answer still today, And elevated anytime to very join in we we to high in soon. the conversations that a going to level to don't my shortages here because stop fact, filling are, are a we changing jobs question that ask

that as not almost our year, out highest next the from put as just even Conference Jeff out to worsening Study across maybe aligns categories. exactly clients. out that risk Now, the was all shortages for extreme Board that we into referenced the going years, healthcare calls future as hear of And what

are how particularly and part a what strategize, our bill I concerned which are help and solutions, come go to getting set they're single partner so yes, of placement translates an that. they not needs efficient, which multiple Also how we're down demand likely future. okay, it the their solutions, why who getting a navigate cost to, concerned again, businesses, term conversations. are would navigation their staffing more current then in down more very but their they high And in of business we we can more a also things bill longer to lot And about clients like very around they're that. can model? with a at future how needs part is RPO with is can there's just go But effective of to our elevated, doing is year the about get how is say our understand But down. jobs to not it's rates along them help filled, going today, so which do this planning even nursing, up? understanding that current international up very and do And many rates within all-time in the And

most demand So going a lays think their with clients, strategic of aligns we're needs. out team roadmap our where with that our we

accomplish be client we different can So out we reduction a to client. it's going from to think we from little And what lay a standpoint. rate

that discussion these going And hospitals So and ultimately, country? the is to at for And, we across come out. numbers them how of does to front is this how because to that this of numbers? translate they these that are. rate yes, say have where demand in more staffing the into for I the decide But where it's them. we're getting where put collaborative a will point, And rates of triangulate trying on be it's would down collaborative more a discussion,

Brian Tanquilut

to are to Got that supply. pool world sort perm? or If down What it. of back that, versus temp as market case, the we are bill in the go that's growth seeing rates And the supply as then And shrinks in follow-up driving you how with think I guess terms my about as dynamic? share of nurses going theoretically gains? staying you the

Susan Salka

physician our mentioned true Well, what's getting nurses in interim I more we don't with just year-over-year leadership, of part basis. the even And an in think staying fantastic it's shrinking. it's applications and within which front our we're driving mentioned as and well, it. the earlier, on is results that, are on Locum actually and as a Landry

I so want you recap of what to don’t color? And shared with us a bit other know you if any

Denny Lanfear

healthy. numbers, cases are Brian, even pre-pandemic Yeah, numbers above all numbers extension high. our were retention still really many which or numbers are in And big

mid can contract. imagine, rates some you As are of these happening

of for job and bring to part like in of with nursing some happening understanding. now and that we rates course, -- professionals we'd team's nurses within cost mid right them them seeing it to our they're are their of health doing we'd had great those their So The a very placements see nurses to bring it most working out those the clients on helping where pressures on with to down extension, cases but the systems. It's contract. down. like And see new are allied

is They than was a they it of know sick in or it. what the So very were full December the January, get different environment lot that today when hospitals COVID patients.

Brian Tanquilut

you. Got

Do $X think grow with as about backdrop gave the and the a baseline rate at Is company? you the run CMS off of, -- double-digit me, projections XX% you rates? given still right growth just do margin, the the that's you're way for like question rate going of right that last then the a the you that view I forward? count believe about probably long-term billion And that that in Okay. we thinking low

Jeff Knudson

pricing volumes so Yes. When growing off think stabilize run of in quarter about we obviously, year. we the will rate, that fourth think QX this

we the we on our rate of year, we clinicians shortage dramatically believe capture between. As also to expect will orders move don't change the recover through and internal MSP

off of to data, with when couple frame us I up for XXXX. And we that out that that's quarter think think So fourth where we the run the see that way CMS you right rate. playing

Brian Tanquilut

Got Appreciate it. right. you. All it. Thank

Operator

Benchmark of Please Sutherland Bill go The Company. when have ahead you're now ready. We

Bill Sutherland

started crisis you these anything of maybe ask a a as issue travelers, most to But or Hey, orders, top about was guys to clinicians started was reasons seen some new nurse Obviously, thanks. this I Hello, your survey party that that mind. a I the of I of had third what's there's thinking have certain rank instance, of of kind be the would they rates. that to travel. them? practices for important travel that you because about everybody. Susan, kind the if using And have them guess And well. type of curious

Susan Salka

we more this the even not health is mentioned, Landry demographic younger come seeing younger care. are we flexibility, think since surprising, which as wants outside So, of in, generation

in that necessarily you're we a if expect you're And trend flexibility. getting And continue. so to not job, that permanent that's a

In the might you for will even the to and and work with and feel fact, beholden shifts extra to up that do your more come. you pick for the things overtime years colleagues with be

them enhance they understaffed there They So current come career. environment, rejuvenated, the they over get is to want burned it is and pulling in continue to grow out we and want more. can feeling are. skills even out, burning will because And learn their travel their to But through, preference this fact, continue frustrated that in people like and reasons they and that's they're current just their think grow not they're to Other time. are they're do in generational likely they where that's see to environment. why

sometimes the there's personal they So money career, there's they to about in the a learn, they feel they but life. personal to that where go always burnout want deliver to just that other not have want also in that always reasons, great not it's care effect. things place their quite can change And

to can't traveling. now because job that have possibility. lot. could have So know wasn't And and been going that introduced never then I've a aspect make thought probably many do do has I it generational I'm of what seemed and preference the a recent the to I that I a said, it's haven't can I that driver. before, will things permanent travel do say they tell talked or money those love I who seen something been to individuals more keep nurses those real pandemic back because should to you to change how just the good maybe

needle majority. So if bit, one it's definitely a just you we've number little than knows is, but the the no But quite got going to less what it's move the probably remember less one we be travel than population. X%, not X% point, will a over of that nurse

want that the maybe because the take pool increase increased of doesn't increase to industry of XX%. into be meaningful would our nurses our supply by that almost or X% industry. that much X% clinicians, and come it industry We in size So just would the particular it to

up not by of days anemic, mentioned, hospitals, of in if there's you many in Board wages way. But professions, the a X% that people to cause out come rates, a on shortages. going But in particularly be in probably hospital's X,XXX very know how latest the After like positive particularly care the would particular, working health for don't worsening is some projections just far, labor, XX%. it of permanent but So labor. for XXXX, And many lot if change Conference wage dynamic for are few And that of in anymore, on put our are these of I believe going is forget nursing greatest the think to nurses probably going lot to industry. survey it increases focus million scheme I a things X.X I up focus permanent back, fly think cost about travel, workforce. know and in fairly the being that it's don't the with the not I more by went the as until could of the much. Jeff the of nurses of

for So in and factor a that million increases in And many numbers I previously just XX,XXX if wage nurses. hits permanent about extrapolate XX,XXX of nurses normal nurses the higher bigger think wages. you that are is hospitals, to X.X than for year, cost far, spent the of nurse average we years that billion the by roughly for making $XXX being

billion, $X.X such I to every want for that to, they a them percent -- for challenging to, go them increase hospitals close it's really very their which maybe for very think want So proportion challenging. it why and that many $X up, they to is nurse billion, wages, is it's even it's but if budget, of huge of

it's are a these settle in XX% workforce. percentage we the of small rates remember if even for today, than lower that at So

burdened at X.X nurse nurse, on travel or it's costs entire on the of a end X% higher of a if the only to even permanent point, at the the that than workforce, million. premium So fully more XX%, not a X% XX% day

the most nugget the forest nursing So through trees opportunity really I the the it's be not that, and bigger help the be to But how efficient just but Yes, just workforce. more can help efficient, you sustainable asked, bigger And workforce? and travel do noticed understand rates. at broader need read. their And a is total to trying what bill optimize we we'll across clients we little focused really the on here. right make and people see our I is than can

Bill Sutherland

Susan. it. great Yes, color That's I get

we're -- to of health and they're the normal in going put But have the impact first in levels great the So they about they right? answer, to that then And that the I a that things. quarter, a to on assignments I didn't their just if couple other margins, demand labor systems what that? increase an real of all quarter, I reacting how follow give of contract easy to it's get in are. what we they're define the just of fact terms in I'm for up, what percentage on now the they think of back the reflects think And one quarter, had to the of answer said your first you of whatever wonder there's of probably lot is -- can fix curious, it vowing that right way percentage and not a business. they quarters, it's blame kind crisis the had were kind and

Susan Salka

that and it We way, out carve don't really externally. provide

to hesitant So level that detail. a little I'd provide of be

Bill Sutherland

Okay.

Susan Salka

we past. we've it we'll little for, way but color to out I can don't out a that Maybe how think in apologize. try I going carved figure give the

Bill Sutherland

-- actually Okay. second in And the last one, more one half. I

to takeaway think for and levels? more Allied rate volumes seasonality stable is quarter-over-quarter from would volumes obviously year? are The Nursing apart and So the the you the normal down are rest of that trending fairly still the

Jeff Knudson

correct, that's seasonality, from Apart Bill.

Bill Sutherland

everybody. Thanks, Okay. evening. good a Have

Susan Salka

you, Thank Bill.

Operator

ready. ahead Thank you. We now have Andre Childress from Sir, Baird. please go when you're

Andre Childress

Childress for is thank taking Andre our Yes, This for Marcon. question. on you Mark

base, what that a was how been strategy? their or and selling of for So are few solutions what's targets, think top strategy, many base, of your in to in into a somehow the market you you use using? adding break cross of what different different the the And that's road you would be solutions opportunities back excited trended? was clients most XX and years your couple terms couple past terms top down you that know, you you've years, of What cross eight now years Could pretty client selling your the clients go cross over it out know how ago to your solutions? that successful selling how

Kelly Rakowski

And great our, strategy a plans, look permanent more of complexity of into seek across them for their for, contingent our top many have them build different also as for we've part utilization, the only at also side opportunity been clients, the clients and our up for but an to all our it's to And certainly talking thank to as strategies, picking that as Yes, across growth help not but you they comprehensive a capabilities. business extending their that. question. not us only for our of about levers been require how challenges, certainly workforce effectively their on workforce around staff

increase of you annual basis. average that's our and of solutions, all that up an an clients know, on to So some use nearly eight, our

perspective those quality seeing total our them we've can of they have, from like a more predictive is, as lines, leadership, what and with optimization helping with and our look for adding interim them bring needed. they internal for So, strategies, as number beyond lines. about, of bringing that you can real then them service services, those our bring the locums, where modeling meet more like more cost planning on under where And Susan they look ways that. utilization better more see workforce non-clinical how and trend been know, managed help better they more they programs, that they containment term flexible program, talked solutions and to as staffing our one, like with to as And service so that, renewals those around them We're and and seen strategizing staff effective them, well around we appetite a long innovate lately, increase a we've needs. basis a particularly those can

strategies seeing our seeing I talk around our physician And some, we and adding there? think maybe a you what one little of the increases, locums MSPs those areas particularly James, bit are some to about services. our can we're around

James Taylor

sense on workforce is of which our clients for a out looking Thank you, think total Kelly. solution of is optimization, the are Andre, Kelly in I spot and their portfolio.

the behind the XXXX. some two that Already for captured on the end centered pls building standpoint, solution. that the the this workforce it I to a goal our today drive with both activity, about to percentage and it XXX% interim that will is business, the both our solutions. think really plan we a well we and and new at the of years. sense have a of had our we've clients in to that local offer and as MSP next into where is also that think retention double sit And And the on that's third some in Some better as XXXX. are more our day by are from client of tailwind in estimate building metrics we MSP of And journey first from the us doing inside quarter of of experience PLS within provider a it total given three client then we

Andre Childress

is? But as you. next forward, you've there which went Great, of going you strong you're XX great? buybacks you know, think the for got had capital well thank as detail XX in some you could more in flow bit potentially is into the more to would clearly million And months, one little over quarter you. just that you Thank strategy would $X.X the you going bought growth thoughts accounts nearly emphasis obviously, how a process billion, in your over be M&A, thought back about a quarter, organic and what about provide investing just the you internally so really to that but cash your $XX harvest on, what understanding and me, allocation emphasize of receivables shares

Jeff Knudson

thanks. Andre, Yes,

make a to we business investing sure from So want that we're in the first and foremost, standpoint. CapEx

and of business continually we our offering, $XX to annual for the productivity we're focusing the digital that's on that CapEx, to $XX million range efficiencies million drive know, at level the So right today. think, looking you there,

that, we and absent to And through so, do any in grow M&A there. compelling going organically are business look opportunities after to we the

to set profiles opportunistically repurchase mentioned $XXX you but also quarter in flow up an cash receivable million shares, flow We is XXXX. extraordinary us, in will free incredibly cashflow know, cash our you we're strong, of year the an for obviously have quarter given

look And absence at repurchases share M&A continue you the active be of also so M&A transactions. but on the in know, front, any to we'll we'll

Andre Childress

Thank you Great. much. so

Operator

time. at no have questions We further this

back to closing some I'd Susan remarks. So, it to like Salka hand

Susan Salka

for Wonderful. our Brika discussion. thank on look on Thank joining to forward everyone call. for next you we updating us progress great and earnings a And you, you our

Operator

call. today's this joining does for you Thank conclude

You and may lines your now your disconnect of rest day. enjoy the

AMN Healthcare Services (AMN) 6 May 222022 Q1 Earnings call transcript