AMN - Earnings call transcript Q2 2022 | AMN Healthcare Services, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the AMN Healthcare Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your moderator today, Randle Reece, Senior Director of Investor Relations. Please go ahead.

Randle Reece

everyone. afternoon, Good Healthcare’s AMN XXXX call. earnings Welcome second 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 James Nursing and Chief Leadership Financial and Group of Seedig, of today President to Rakowski, Officer; Solutions; of Allied I Kelly Solutions. Officer; Jeff President now Knudson, President Susan. Chief Group On Susan Operating call Talent will Executive Solutions; over are COO Strategic Taylor, Landry and Officer Group the and and Chief Salka, COO call Physician turn

Susan Salka

quarter by our many and health much, AMN placed clients. partners so critical once thousands the Randy, quality over our everyone. patients health AMN and welcome, and for the care delivered across supplier our professionals care U.S. The of Throughout quarter, our team, for you in service Thank outstanding second and cared again the the workers XX,XXX partners

a quick become and many come. more U.S. to are hours times, expected resume each of care backlog care of hires overall month, competition health of passion fix. vacancies, worked and to worsen fraction to dependent care, challenged its that the are Almost health Health in when the high already contributions of a dealing intense not would will as are being X.Xx persist to While staffing health tested the viable no beyond beyond is on amidst Open including full to The by and patient for past with very that’s so even organizations is costs understaffed. are these one limits. the number is there continue across But surgeries. pressures model systems. staff. shortages all and hiring, the meaningful, labor is capacity of pace industry highly they option all to rates in are reduce workforce, attrition care their be our rising clinicians cost and skills, number delivery In contingent small response permanent and a years delivery a jobs care

labor maintain than an exit XXXX continuing in to Fortunately, helping confidence recruit workforce of with we demand February and the annualized staffing place gives our there it travel care now more are in out laid reducing is we be subsided. rate be to are will progress and guiding XX% better for across our last-minute we May. And experience The of demand we about the more This more This results, time need the nurse level. revenue second rates fully are we quarter. will $X run revenue businesses mostly cost. contingent market market’s all urgency their excessive also is expectations health in third the the than has than strong quarter billion. visible us to where lower the extreme expected clients for professionals, some cost relief we With while contingent Last declining winter, due would. reached to as an bill

let’s now that about just talk quarter we finished. the So

rate how Our we Staffing first our of than XX% than mainly up was by EBITDA year-over-year. Allied revenue nurse for All clients engage slightly our with higher $XXX delivered second primarily decline talent the to XX% This revenue XX% grew grew stronger Nurse revenue and million. results up which quarter, was $X.XX breadth year-over-year, specialties. comprehensive laboratory Revenue segment strong strong rates. imaging and of due short expected Nurse was year-over-year, adjusted XX% shows in lower long-term and therapy, between of exceeded expected, and the X% an in In the volume Solutions similarly Travel revenue billion, Staffing us operating revenue with and three growth. bill over bill Allied billion solutions. volume. expectations, growth driven quarter of prior year balanced segments $X.X

anticipated As all-time of for beginning the the allied second travel in the nurses demand a few from QX. modalities and at quarter, high declined

the demand high levels significantly quarter care quarter. future faced average placements, bill rates progressed, thrilled due than to to and bottom We slightly we will At to we out organizations. team were bill these the grew higher of trajectory Connetics and welcome demand for expected. As family of vacancies AMN the the by rate health labor previously the believe the persistent during shortages the

by level successful team sourcing it for take who clinicians same built hire for option AMN. be will will the well-timed direct we This continue be clients. demand led the within leaders next to outstanding that business at With the and record international and the to a know levels, model will their

Leadership XX% earlier assignment. outstanding $XXX XX% we year-over-year, growth. posted and increase Interim expect second in And Nurse Physician physician the telehealth search another a year recorded growth XX% higher specialties, trend number million, For placements our pandemic-related all Locum to higher with in XX% year. primary end assignments primarily third coming one year-over-year, growth delivered of the clients. overcoming is grow across executive the is Allied the strong Demand than record XX% and improved revenue leadership ago. notable and clinicians and care from a revenue quarter. revenue the tenens with of to Solutions revenue quarter, quarter of on

physician long-term third multi-search year-over-year. quarter second Physician Our Technology engagements. organizations partnering More revenue health and we Solutions $XXX an the expect high with Solutions all-time with is for grow Workforce and XX% team on and record million, XX% another to of revenue hit more, approximately In perm large reached placements. care Leadership AMN quarter, year-over-year. up

expectations. and led Our margins revenue ability expand VMS ahead growth gives up growth again technology on to based versus over were nicely with year, business these fees. businesses the higher higher-margin and also Language RPO in and service of prior in our volume AMN’s technology The XXX% confidence us services time.

year-over-year projected with along approximately and revenue XX% Workforce trends. moderates to grow as is VMS Third quarter revenue Technology for market-wide Solutions

compensation As bill is revenue largest we Allied, quarter. rates The mostly driven on the step-down come down. in decline several bill by have quarters, have for assignment occurring expected third and pandemic-related in rates clinicians the crisis Nurse where sequential QX for and is

we months, invested of XX as our client last and to and teams, the business communities. our steps Over moves That have spending in closer down level clinician relationships, technologies naturally the heavily normal. our our new

changes us to planned team revenue We a have these reduce in decrease a well has in market, staff. positioned and need the absorb in to without our anticipation of

the build In strongest fact, recruiting to are still possible. AMN we team

today. deals to know an Whatever potential about comes up labor for the AMN just challenge each and day. We lean personal with and a soul greater is and make is evident as of difference. our culture demand minutes, it foundation in But long-term way, James, is inclusive colleagues evident AMN session. will the I Q&A innovator team one every another the stronger to our we are even for supply. The and enthusiastic more professional of few give join difficult more the to will a the the reported higher In heart be results us our and than to also care ever, contributor the and AMN ever and system which support in and Kelly than always values Landry our health on is than outstanding

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

Jeff Knudson

afternoon, Thank you, and Susan, good everyone.

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

expense, and members. Allied on of Sequentially, of for from increased was less lower down Nurse revenue, basis points operating the certain improvement expenses XX% quarter $X.X due businesses. the million year-over-year Consolidated $XXX XX% of and compared by the year basis sequentially. quarter mix than revenue and $XXX the growing, with adjusted Adjusted staffing XX On expenses was revenue million SG&A, growth. with than lower-margin XX% was nurse in prior of expenses up basis, gross shift million of $XX of lower margin XX.X% year consolidated primarily in a or compared and XX.X% higher our in SG&A $XX stock-based or $XXX lower higher the revenue leverage Excluding team revenue XX.X%, for in year-ago revenue SG&A due XX.X% quarter. to previous quarter, from XX.X% In million or revenue rewarding performance compensation was billion, SG&A second were margin favorable or to revenue, and toward lower came in SG&A expenses margin. XX a Gross quarter. and the was the million quarter revenue, The or our was disruption excluding million this revenue $XXX sequential the mix margin compensation. prior million hours sequentially. to decreased XX% points Year-over-year, staffing labor sequentially. $XXX revenue nonrecurring supporting year-ago and change

points year EBITDA basis margin compensation Travelers was EBITDA insurance X% well XX% million a for primarily lower basis Travel was The margin exceeded year-over-year of by $XXX SG&A Leadership Allied sequentially. had gross gross and XXX to margin less was year grew for EBITDA X% due and the and growth volume the year-over-year higher-margin and Language and tenens in year-ago clinicians. the flat declined and quarter. and $XXX XX and EBITDA XX.X% X% adjusted prior prior flow year-ago sequentially. labor year-over-year Interim of revenue year the $XXX basis of was leadership. was margin was through expectations sequentially. of prior was XX% lower XX.X% from down revenue prior and points higher XX.X%, quarter, disruption XX% declined basis second offset to XX.X%, hours quarter of the Segment and million, quarter. business. $X.XX up sequentially. million, was $XXX accrual. down versus second points primarily increase $XXX sequentially. for sequentially. revenue to was The also and basis sequentially. gross year-over-year year down points and strong due basis million, and in down our sequentially. points Consolidated in was to from X% the last year-over-year million of change down Workforce XX.X% was year prior points Our XX% and year-over-year net X% sequentially. by X% and and XX was over The $XX up XX.X% million VMS mainly RPO the the $XXX in package. and lower $XX XX% Adjusted down the with quarter for in X% of was XX.X%, the XX XX% Sequentially, and down up quarter. sequentially. quarter Nurse up line Solutions year outstanding higher Segment increased revenue from Adjusted $XXX revenue in pandemic-related points Operating due compared margin prior prior XXX were gross was from Year-over-year, sequentially. earnings changes basis sequentially. sequentially. locum the days, and reported higher the Locums Locum points performance year basis points XX% second than expenditures EBITDA than revenue year margin second margin XX.X% and Allied margin increased by year-over-year decline decline costs, on as prior basis was share lower quarter higher leadership margin per grew sequentially. XX% year-over-year XX and was year-over-year was offset of The VMS last quarter. XX days and was earnings negotiated margins Solutions the lower prior with sequentially. $X.XX of sequentially. first, growing basis was down at X% partially XX% margin in year mix leverage per growing Nurse compensation basis margin XX XXX% year-over-year core and share revenue higher diluted quarter. and Allied of stemmed of million was very points million revenue Physician than revenue collections revenue We grew and EBITDA more XX XXX year-over-year XXX segment up X from and down due decline while business services Days to Technology was higher in gross as Segment down sequentially. higher the up the and the from $X.XX and sales changes cadence the Segment due higher for XX revenue the year lower favorable growth margin revenue this than X% basis and was was than interim quarter, strong million. than prior $XX assignment points revenue. higher flat revenue X% lower from cash XX% Search capital tenens margin primarily XXX income points sequentially. than prior Gross year over and XX% grew million, was lower

in XX, of of ratio million of and debt capital at $XXX cash X.X repurchase quarter the From stock equivalents $XX.XX. and million price $XX our perspective, company long-term to As of allocation million shares used million, of an the $XXX a June leverage of cash Xx. net average to of X.Xx a we had

under As our remained repurchase of million XX, stock June $XXX authorization.

quarter. better our The completed fast-growing, added quarter and revenue recruitment of mid-May for purchase nurses professionals. client the second in was us address in Connetics, and permanent continued acquisition high-margin We of needs strategy million of acquisition with the allied the $X that international a business in helps

third Now guidance. quarter turning to

over to projecting revenue million billion, revenue. up are XX% be guidance disruption This We XX% consolidated to a $X.XX $X range of includes to labor in revenue $X.XX billion year. prior of

year. revenue to with midpoint, second margin gross be This due be XX% quarter increase consolidated favorable of can XX.X%. basis earnings expect quarter, rate Third the At and higher low in XX.X% quarter to due we than details revenue adjusted second to sequential the came with is be XXX the Nurse the the points approximately to in expected be we third bill expected May’s drop Nurse On mix in expenses for lower Allied operating largest found XX.X%, quarter. is shift. to the bill to XX%. than Reported of to quarter, expected sequentially we lower the would quarter the we to still rate third largest projected coming and improvement is The in in to and decline be XX% experience X% average and average for Operating to double is EBITDA along quarter Allied some the to and in projected bill rates. SG&A a QX to third leverage today’s gross first level. Nurse release. guidance as are decline the margin the expected margin XX.X% the Other Allied margin call, be said lose XX.X% digits

And our Our The our prior for revenue least like rates business below with to in now billion than open the across at than first adjusted that at better an the fourth margin Nurse trends current XX% call the bill confidence of the with questions. segments XX% $X EBITDA expectation we’d expectation stabilizing quarter approximately year quarter come greater will us give XX%. QX we level, that and will is lower of peak. than exit Allied

Operator

comes Blair. first Mulrooney Our Tim William from with Instructions] question [Operator

now line open. is Your

Tim Mulrooney

Kelly, Susan, Landry, afternoon. Good Jeff, James,

Susan Salka

Hello there.

Tim Mulrooney

quick questions. yes, So two

I assignment from So and on look sequentially quarter. your I was as first at volume think down, I numbers, see Nurse Allied X% travelers the only

as the Allied fourth and you’ve quarters we while volume of year? think moderation and But telegraphed I volumes about third cadence you’re some this in through the how a Nurse for thinking curious move expected now. I’m

Landry Seedig

a Hey there. as declining. yes, of decline QX. It’s some declines the of that, that, driver going? we’ve that course, you outside Landry. to would Jeff bill rates revenue some declines. have there volume got And to Primary the QX seasonal we Tim. mentioned, then of from Part it are Yes, How’s sequentially QX do typically QX, is see

go same both we as thing that before part If QX. you expecting A or well back pandemic And that those is at during as look schools. see would the seasonal we as thing declines. the seeing that, though, pandemic, of today same we’re

some thing not that that’s Whether in diem, decline. taking are of marketplace. seasonally, just travel clinicians And of immune the will some seeing the perm experiencing is we’re you’re that to working that. volume or per we’re then another burnout place our So that or

actually time So we And off. a increased. that, we We little metric bit they’re off a that it time assignments. and track, of that has taking metric the have tracks can see between

they’re a bit longer a vacation. longer little So little taking bit break,

what So back and And volumes things QX, the you get expect on from you we all to then those to up. that’s to add together, QX. QX QX come sequentially

Tim Mulrooney

Come up. back

All we more. then Okay. That’s model. right. in I’ll Landry. Thank not And that. one what you, just update have our

not in thing the for saying expect you that One out margins. pay necessarily same Or bill little if that seeing? Nurse something guess, Travel is of rates, coming squeezing faster which quarters? competitors play are, your more few that the than down And so, to business? reported yesterday a you’re dynamic was I a is a rates Are your results you their seeing

Jeff Knudson

you is at second quarter driven that Yes, margins, first over by This gross When primarily Jeff. our mix. quarter Tim. look revenue was

And favorability both perspective, a coming QX quarter. QX workers’ as hours as in lower comp modest off the over from true-ups was also package. see did sequential the impacts some in we Allied, revenue due QX from and of to peak. some labor disruption insurance There some well Nurse had within we However, the negotiated

we quarter, to again, package that third up and consolidated shift the into there that’s well. that in points. favorability the Allied gross said declines. Again, that rate margins be revenue basis the Nurse with forward is XXX But Moving with bill mix driven in by negotiated expect as we roughly a some

Susan Salka

will on a we an pay rates. you’re rate. bill rate the And is bill rate think more clarity reduced middle to little in just referring And typically of the the in maybe Tim, reduction specifically that to if a peg bill I assignment,

stay notice that the client middle have So going is the we’ll to in assignment option of rate, to better the whether at country, rate have assignment. their change, that different perhaps with of for a conversation if lower talk vast they we provides nurse want a moving an that or move orders about the is that they them. because appropriate to And then a to can across the oftentimes

So that’s how manage we it.

issue expect you’re So feel we from that margin specific to. to don’t that referring compression gross

Tim Mulrooney

That’s great color. Thank you.

Susan Salka

Tim. you, Thank

Operator

you. with And Thank Kevin Fischbeck America. Bank from next our of question comes

Your now line open. is

Kevin Fischbeck

may that? Thanks. mean, the front out as COVID and mentioned. thinking about of you’re shortage that you how context during COVID magnitude Great. I expecting And trying increase much see? provide creating versus color you strong. and an started if orders a I quarter burnout of what’s of like could you about that the put normally to new you unusually that sounds dynamic the in that be again. that on happening obviously, some little would versus in increase hospitals you what us to afraid was of issue maybe is is how are help wondering to more It dynamic put orders Can

Susan Salka

business, and give Nursing, about Leadership on James talk also for I’d the referring color give We’ll demand to can pretty you’re I’m that. businesses our sure color question. well great and then and as trends. like the some on Physician perhaps Allied but to Landry So

Landry Seedig

it’s Landry. Kevin,

first guess, starting I off, So there. end of kind with the

dealing it of the had that the from don’t seeing. with. really mentioned that is hearing COVID that the it they’re as to we’re our of You to much increase we’re it now relates right how is spike. clients What the COVID shortages And correlate be might related we any spike

than right would that demand seen we Travel and time before is Nurse more at Xx the So demand the same Allied the of currently amount now, pandemic today have period.

the off the sequential did see single specifically, On last And demand then we high declines coming have week of we very really weeks, that over year. April. travel XX those every nursing numbers declined beginning through saw the seen And past the for those XX the increases at weeks. we then side

since the the right now, actually at travel we up second low quarter. demand XX% So point that of nursing, it’s for the more beginning saw James? than

James Taylor

and COVID-related Solutions Physician To we to attach remain majority you, are the expecting high the concerning businesses and to Landry’s diminishes. Thank our as the saying what all they as Leadership, our the Physicians even Leadership demand Landry. of across – demand projects

In quarter perspective pipeline higher some days to XX% up two a the – which across pipeline digits ever, business, up CRNA, Leadership The was was also And year-over-year available by business, physician XXX, driven Locum’s strong perm high and also demand and practices. we – reached our single our here, digits X% see single in over interim is sequentially. sequentially. high Search up quarter-over-quarter. Just X% business the which higher primary year-over-year, our specifically terms hospital is gross was our highest surgery, by of dentistry. care engagements In continue

that strong from have in have Our rate term, that fill are the Locums search by our in our are high demand see interim both a digits and we But and single business. high on decrease standpoint sequentially driven purely quarter-over-quarter. in we fill business and the our business, very that’s They the achieving Locums constraint a we supply. and do rates business also

Kevin Fischbeck

you in rates consistently of kind helpful. been into a even giving than all That’s buffer I decline has guys QX. in though guess right. like given I demand increasing a throughout it that, expect bigger QX, you QX, in QX bigger sounds bill All think

QX bill rates are in why drop to demand? faster Thanks. So QX, ramp given even in going than the

Landry Seedig

there. There’s again. a lag Landry it’s Kevin,

rates we a expecting correlation would have months, peaks rate the and been rates And down so that And the in bill can these – to February that speak bill rates together. I time from between saw the and it’s exactly fill quarter, March what’s really come course, been and And the frame. first in bill we high just maybe it bill of happening. steep down on it rates seen we down, as not see we’ve as rates have thought starting a fill trajectory, as have then And might we we’re been. The now course coming have mentioned, point what where And negative to impact the a also the it’s come with down. those come that to to pay rate. of

why point we that we’ve probably actually that’s So point. this at think an hit inflection

takes it us it its for Jeff leading through. too early So of the to make way of a but trends, updating of the out like to to all QX what and is little statement our a little for number kind happening marketplace, in call, that bit bit the work what’s time looks and which And that’s it’s that mentioned.

Susan Salka

as the number that Kevin, other getting confidence have. our than is in. insight getting in, already clients And orders we’re we dwarfed and information some large orders rates. orders winter bit They’re the years. largely some might that rates in are of they’re our as of higher if strong, by those in you talking we give the stronger fairly that about prior not even really But line are

in rates. probably So seen that I we’ve that think sign trough another that’s

at going in but Now a stronger, we’ll cases, quarter. they’re into the people fourth rate little at looking we booking on fourth the be assignment the some look very stable trends But to, travelers as quarter, our into least, stable. those for bill

Kevin Fischbeck

you. All right. Great. Thank

Susan Salka

you. Thank

Randle Reece

Operator?

Operator

you. comes next And A.J. Rice Suisse. with Thank question from our Credit

Your line open. is

A.J. Rice

quarter is questions July, at bill the have to in out out? rates are today? Hi, the contracts over Or I drop everybody. I’ll A of could for you’re in where on, assuming numbers further and putting your ask. leeway intra-quarter you the it still focus you’re plays look whole you about get those, rolling to on number above are well that when where to

Jeff Knudson

through all A.J., and through think rates then every still settle the Yes, the that out very moving way the modest bill declines quarter the peak. there, in expecting the September month we XX% into a as third decline sequential about fourth QX we’re below at quarter to

Susan Salka

either start most assignment. of they’re booked soon clear, their to good have assignment, we why their have be But and or A.J., started are already which visibility, to people is those

A.J. Rice

you. got I

that’s true. course, Of

system customers What as now. this they’re The are A all they’ve Act, that major money, nurses, are are factor? payments, about are were other they’re pain to I is their the I staffing downgrades point We’ve get pain that least COVID in some nurses perception And demand make was they this is to sequestration your and thing without, in relief add-on plowing and was hospitals relief. getting at hearing the that a are just to their – were nurses. conversation seen what’s you pushing But feeling systems. Medicare pay know hospitals bit off you which with some about homes to of and going sure fill, runs I lot nursing of could that the the a loss we’ve COVID with need now. back is cases think the announce going nursing ask money large don’t the about to levels but that at of all. I But to money We’ve desire, to were shape on very have meet level off? homes CARES that health the rolling high prices. saying they one obviously, that And seen hospitals, some but you a they them frankly, little point. seen for wonder, not of customer all, from in homes, nursing admittedly what limit swung people aren’t worse deal big than your willing just

Susan Salka

there orders these But Susan. jump Well, more optimism on issues. with exact clients then health in she’s I’d start in back was and is maybe of I’ll clinicians much why more the curb and that have the since time frame daily attrition about some which money a community say this could basis our the talking within care and Kelly use extra declined. and recruit the the vacancies, to April retain March, that they is

it falling just was of crisis the assignments off. Some

put the of it that come that fruition vacancies. their it to their was level And some And could they in they to just optimism didn’t a expected. really dent had

And certainly, their it’s it permanent all. them in, last the I for the into hospital on a nurses very at that expensive earnings to back compensation call, to employment cost increase proposition for come talked about the staff. back recruit this some to the of willing market permanently And is a not

like across billion. at all XX% nurses in If you do something $XX working you’d hospitals, be

quite when really their really already just so cost-prohibitive it’s great. cost So are pressures

So the for long-term is the and are other to conversation is, now they And deal norm. new this it. solutions with mid looking

it helping So them have fill turn and to I’ll in do her we’re that. Kelly over how

Kelly Rakowski

Susan. Yes. Thank A.J. you, Hi,

you think have right. it exactly I

their available met think with supply market They’re of just optimism of attrition that the some burnout. was still experiencing in staff. I levels the into to of realities level was due to hire full-time

mentioned earlier, think well, hire I summer think I the particularly anew. as are to Landry months challenging as

seen due in need RPO business from to they staff. to bringing increase continuing all We’ve for us assistance permanent So our are that fronts. attack and

their more at acquisition. certainly, seeing are have, add processes, new all-time they of in turning away trying constraint. that business, travel still mentioned, and orders down we as efficient They’re more predictive to to the I to criticality as and that procedural on informing certainly some a Our for in they workforce workforce particularly and some they create for their the the you shut the continuing assistance And services either of then that we look well a longer-term of where clients becoming market as how may a they both or placements have see will optimize take of to understanding capacity decisions needing that areas. high to is that local them, the A.J., because to an supply, basis, with in where our level talent in are continue some say, needs. at help need temporary we’re contingent that

doors others that their have to important very services they’re they communities. their around so staffing serve becoming it’s So keep that to continue able assistants those, open, open to and our

A.J. Rice

lot. Okay. Thanks a

Operator

Tanquilut from question next Brian our And you. Jefferies. Thank comes with

open. now is Your line

Brian Tanquilut

the on tie try clarify just guess together. Congrats few a I comments guys. you of afternoon, and to some made quarter. things to Good the

expected. the Susan, think, higher you out you that a previously think comment is rates – I bottom you So that made had than bottom will

So that how guys is of to comment is just run the made $X like that the billion that demand given And about dynamic? rate kind tying a still maybe you revenue. just then of

So sounds figure like it you’re to be to before. comments higher just when two trying bottom put expecting rates to out how of the together than those

Susan Salka

it’s had Susan. I say XX% below. higher. Brian, And Yes, it’s would said slightly We

or rate. we where that discussing, starting closer get we visibility stability see and go Not, most to see clients in several thinking based on and bill we’re of over larger to Now then at last weeks to hold the we placements rates can need to XX%, the that are we need rate, at do lower. go this And we the do higher? future

they that even think Landry a there’s may I in rising additional through orders much if it’s think ability so there’s curbing targeted rates I some – the in their areas, very services. that to still quarter reality critical to, today, raise the with deliver second and need coming discussed

why in guess out. get confidence will we think bottom that’s the where so-called that I So we we

argue ago, lag out. out those assignments of now. could few were Landry will But the – started discussed, because booked and of maybe weeks a or that the those You we’ve sort bottomed play months

quarter. were even going a at rates. And higher that’s bit little haven’t why some that clinicians started booked there’s slope into the a of And fourth

Brian Tanquilut

segment, obviously were like I’m there out kind is the just at about strong. Got any and of that for margins peak Or as there? I wondering you. the margins call And you’re then just Solutions explaining very group? how thinking Technology look Workforce sustainability

Jeff Knudson

Yes.

third and that way make rate Nurse their dynamics have business. and to as in highest-margin back VMS half you we bill we start mind will fourth segment. through the what there the we through move VMS business, our to year, there. think that’s keep And the need revenue the And the that Allied quarter of as business same impact the sequential I the see declines within

back start the half. that EBITDA So into margins, not the will but margins only the to gross impact adjusted

Brian Tanquilut

All guys. right. Got Thanks it.

Operator

you. Thank

comes next Markets. Capital from with Ryan Griffin Our BMO question

Your line open. is now

Jeff Silber

Actually, Silber used I PIN. the I must BMO. with think have it’s wrong Jeff

was are of your division, I can talked about physicians remarks, I type you that true, may that. question. about in hiring, what prepared which where on really Susan, if you, internal you about my you I you but misheard right appreciate talk think Sorry hiring. focusing have now? that taking

Susan Salka

thanks Absolutely, asking. Jeff, for and

have I you pretty open physicians certainly have We the across organization. much mean, all of attrition. some amount

Although level say as company history, as second quarter in our I will long of tracked we’ve accuracy. attrition this our to perhaps was or the it lowest

ability then to and Leadership, staffing desire to, Certainly, then much our also that. staff. And seeing be businesses that are in accomplish. in we increases in the a trained departments. across account divisions, think I mission and volume our we we we’re occasionally pleased very recruiters where managers where increases we’re and leave, we’re And and adding growth, divisions got part trying are really technology-related people in develop staff you’re retain time. over we’re it and with said, Physician support are culture to our for and pretty positions the Landry our we’ve to there and all really with hiring that our referred what so nice to And even and much our with of some But to volume speaks them. So have people’s to adding. And expecting

it’s across really So company. the

Jeff Silber

helpful. That’s Okay.

nurses and you travelers the may traveled in they that of talk as have amount we’re Nurse know, in terms of about traveling been tremendous high coming on level, side. long a At As recruiting we not are recruiting, professionals. maybe younger there’s new seeing perspective, beforehand? volatility from of talking I can about a obviously, you demographic specifically a types Allied

Landry Seedig

Landry. it’s Jeff,

track And larger seeing that time So new of clinicians at it placements do at we a placement. application, we don’t our age capture we’re the XX. with percentage of overall certainly but under are

So in the between of in to for placements. XX largest right age quarter, our age our the makes saw XX. clinicians of about of that the up actually new now, second placements new two-thirds under increase Also were we it XX,

more So that what younger data been market arrangement. preferences work flexible are we’ve demographic, does about, suggest that we we’re work starting in to to see kind talking their see other a the a or a of industries, in shift out what where towards

Jeff Silber

right. All to much. hear. so Thanks That’s great

Operator

next Instructions] Our Thank comes from question Tobey Sommer you. with [Operator Truist.

open. Your line is

Tobey Sommer

wanted to on ask ask a question pricing. a follow-up I’d the on – follow-up the question you. thank I

look your and the whatever balance you you’re pricing make you can at normalize higher-priced visibility As rates that in are travel terms of is of a point winter judgment trying comments Or when do including assignments? year, that – you into nurse to and have when the at this and bottoming? for be what rendering a seasonally are describing you. bill needs Thank you

Jeff Knudson

coming versus were that and were winter that where Yes, QX look the made I orders fourth would us, orders visibility where at then quarter. need that say, the Tobey, were needs. we the giving in. on history also given And looked those in we winter And why did commentary at winter we is needs "normal"

Tobey Sommer

of think year. have then decent – Okay. about in Thank as wanted union pretty not question contract or wage back staff, travel agreements whole, as step noticed of for employees time? the for you. full-time you there’s I for nurses of and And disruptive I’ve to for more do time, that the balance increases a for ask consider digits, been you contemplate full I to just disruptions to look mid-single negotiations over and/or unionized amount the activity be complex recent And lot result but – of pretty high number a wage growth the a there a labor a part months. and a supportive When labor years. pricing significant to at rapid more

Susan Salka

those in be disruptive. really seen or negotiations historically, resulting impactful changes haven’t Tobey, structure and comp We any

And necessarily It’s of affect nurses agreements. fall as know number nurse the you it profession for under the well. about entire union but that be of and Now course, client, may XX% it over doesn’t spill and industry.

So doesn’t even when effect maybe immediate or surprising occur. have those it’s that things long-term it not an

you’re cost a a across all increase system, a XX% for because that the sustain, the an just or increase So to equation it very just It’s they that when see to at care difficult especially other X% particular going because becomes pressures. doubt ecosystem health you’re have cost seeing I or entire prohibitive. even ripple them facility

particularly What nurses, long list and appropriate think patient way for And for care. of much is that their So And they’re or want demand there’s how it is, don’t clinicians, know it’s top of telling that clinicians would to they I whether think it’s staffing a is of other oftentimes, good that to are regulated empowered to saying be profession changes ratios. at staffing. the not, nurses back push and be and going the disruptive.

things flexibility net if top of are fact, pushed the seeking. things and ratios. higher levels positive In two to – compensation us staffing those are of put would aside, if you clinicians And for are staffing being be levels hold they’re that to

Tobey Sommer

Thanks very much.

Susan Salka

Tobey. Thanks,

Operator

Thank you.

Benchmark question next Our from comes The Bill with Sutherland Company.

Your is open. line now

Bill Sutherland

supply as bit? a what think it Hi, going know on I far the out program see do you’re you horizon there’s issue, a the some thinking expand everybody. Susan, to over I and how as on. trends I’d finally think expansion bit, But looking to beginning like supply

Susan Salka

years, They visa, care for executives special in of to work through lessening see get some With them There going them any And X education. sort them nurses the years. a not be frame. nurse to the thinking is prioritized lot being health prioritize that visas, time in are leaders to but expand of a we’ll to XX-year normal done giving immigration and to range in shortage. it’s said, most before try

with do and make own Landry with wellness health with in providing rejuvenation, mental support, so our starting clients earlier, between – support, that at assignments. can be It stay to right In a be doesn’t because AMN shouldn’t suggest mean we It fact, off is worse quick which I is will aligning in starts in workforce aligning whether the that retaining things. sure papers fix. have precious research have, common in the others and not clinicians home gets just read that the more resiliency better, partnering our they it before really variety time organizations, there with we thinking get a why the and they that to workforce. it is they need with support mentioned it them of

So to supportive we that. be need of

the all that think to need workforce we to workforce retain the we have, to precious have. our part we do that So upskill we try

to need. clients are anything of working try going impact, some the will But clinicians cycle. I’ll we be programs specialty measurable impact. near-term. right a longer-term make all it but things the They the take do. not say, to that this are to some on a Bill, fix They training won’t with get So they to really going to in an It’s is

Bill Sutherland

How top you allocation. priority, And think Yes. totally Jeff Right. your I address capital rank but could if topic that? the of I would different know a priorities?

Jeff Knudson

Yes. Bill. Thanks,

great accretive pipeline. still half M&A. all shape. are our capital authorization, on our we deploy to our against a And balance prefer and Those to debt. being M&A year And exclusive. executing is business. second aren’t equal, no very coming high-margin we Xx, would focused still Absent on but and repurchases. two compelling share else million left to So – flow anything front, over the M&A the first we we’ve The in deployed we’ve not look mean, to the mutually will the of is repurchases share we million the capital shares in the $XXX million to only on support $XXX in leverage of $XXX prepayable free quarter, things spent have ratio there’s year, half the including in back I ample cash repurchase below sheet opportunistically. of There’s also

Bill Sutherland

next flows would over I quite increase going expect to XX months. materially the cash are your

Jeff Knudson

second Well, our quarter it’s quite some conversion was the time. in as good ratio about as in been

So the I down, as that these power indicative has. company think flow this come cash revenues generation that’s free

Bill Sutherland

everybody. Great. Thanks

Operator

conference the closing remarks. Salka I turn back now like would Susan to to for

Susan Salka

you very to our accomplishing appreciate callout and mission interest today big we’re and in of our what you We all for and members, us clinicians your with a our much. much here. our so amazing being Thank AMN team Again, all partners. and

we a yes, impact, have lot a still of are ahead making but We significant in this and all together, us.

want just hard I so And for work. thank everybody to their

Operator

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

You may now disconnect.

AMN Healthcare Services (AMN) 8 Aug 222022 Q2 Earnings call transcript