Earnings call transcript Q3 2022

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Operator

Thank you for standing by and welcome to AMN Healthcare’s Third Quarter 2022 Earnings Call. [Operator Instructions] I would now like to hand the call over to Randle Reece, Senior Director of Investor Relations. Please go ahead.

Randle Reece

Good afternoon, everyone. Welcome to AMN Healthcare’s third quarter 2022 earnings call. webcast this available call. this the ir.amnhealthcare.com of of conclusion replay will at be following A

constitute statements Various about based trends, circumstances future we upon expectations, statements. remarks make to projections, plans, during information currently events it. current the company’s reflect this available call forward-looking beliefs These or

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

about call Chief and Operating SAA future Solutions. the and Chief but Chief the President Executive Group normally Rakowski, Officer panel Susan today of Officer President be Chief and Salka, of Knudson, on he today Operating at Officer Kelly James Officer; Group and joining Seedig, healthcare Strategic and Talent Financial solutions conference. is and the Landry Taylor, of Leadership President Chief President’s Allied Officer; the us, Physician workforce Solutions; of Operating Solutions, would representing AMN Nursing Jeff are On

the to turn over now will call I Susan.

Susan Salka

welcome everyone. and so much, you Randy Thank

one building today, years. company travel When doubt begin is diverse XXth today, public healthier, no have company. long were We while business largest there And impactful over it’s we years nursing those AMN and come ago, and but last have way a reflection our a many more start in still celebrate single-service share and call. with my to went a we XX earnings I I as topics will

in In and we comprehensive platforms healthcare. the leader in staffing solutions workforce addition the become being technology provider, to most have also

Our last of quartile a shareholder and of our for the and equity, stock we impacted to we’re equality a millions we’ve families’ inclusion diversity, in and has total risen about proud to returns. lives, national leader been XXX%. Most the positively consistently patients’ And recognized contributor importantly, top delivering communities. decade, in and be

than for AMN before, impact stakeholders. and opportunities have to our all is ever we tremendous ahead make a of stronger greater

stability of upon AMN. people at confidence baton leadership pass across today. foundation strength, created incredible are This see have this month. leader perfect we diversity the gives you to driving build the experience the me results Cary later Cary and the Grace the our We culture and great have to is CEO these strong and team, I as

Our with team you working excited too. to know the continue I and And in momentum know her is will to in months, getting the very have her coming market. we begin the enjoy

Now, our the are results future. let’s to trends think turn we to most our and important

unprecedented reach confluence discussed caused healthcare and a of we’ve to demand last levels As pressures great before, fall staffing winter.

the pulled demand clients possible as above pre-pandemic back has but team and well quickly unusually to levels. worked closely as and smoothly bring with down rates as pay Our remains bill high

the have transparent revenue we first the quarter XXXX, expected in communicating after Throughout been decline proactive peak. and in

we we expectations, things believe anticipated. out generally are we While above as have played our earlier

and times of we our Since and billion when adjusted business During we targets. with struggle our pleased strong record all expectations X setting guidance In is fourth today EBITDA ahead well revenue these our the target the are of maintained track had a against for trajectory reasonable margin for in fourth quarter. companies expectations quarter exceeded February, the them. many of and comfortably segments with visibility, performing $X a quarter, revenue XX% third our again we

million higher XX% adjusted in quarter segment, declining was across was than Nurse the the Solutions. XX% Travel the and remains year-over-year Revenue Demand well Nurse and and million. $XXX segment by Allied grew quarter. XX% above pre-pandemic $XXX nursing second prior lower year-over-year largest third travel revenue billion quarter and Allied was specialties. strength quarter, decline with was with XX% EBITDA sequentially. the of $X.XX revenue XX% our down anticipated Nurse Third in from revenue caused mainly all for levels

us addition, of than have the significant remain our of pre-pandemic that candidates a the been last flexibility, attract over levels, X for to investments of we candidates in with digital added the are applicants, years. An confidence clinicians clinicians to supply gives our our in capabilities, stronger including number future. ability the increased network coupled benefit In for preference our and we making new among have

sequential an XX% strength decline Our Areas X% revenue and included Allied therapy. business had year-over-year imaging and growth. of

and in sequentially volume X% XX% and due and in flattening bill we’ve to to hours Solutions rates revenue project in We reduction Nurse bill fourth growth be the sequential the a offset fourth we quarter, primarily lower For Allied seasonally expect approximately in the rates. discussed. in year-over-year quarter, down by

In segment, prior revenue million, better our slightly our guidance. Physician showing $XXX Leadership the XX% Solutions year, third growth quarter was and than over

project X%. segment tenens year. quarter, leadership to Solutions growing with led up In Our versus fourth Physician in growth, XX% locum the revenue XX% prior and and with we revenue be the interim Leadership flat search businesses

year-over-year. remains revenue approximately pre-pandemic business, pandemic-related and be would permanent tenens above up for locum and Demand levels X% well placement. physician strong Excluding

turnover has relatively high, In costs leadership. long Some positions affected streamlining permanent run, are we demand. the to remain healthcare short-term in continuing to for organizations demand roles reduce leadership expect leadership drive this non-clinical and to and interim and

position. Solutions and Technology Workforce our In we continue our leadership build segment, to

over while language solutions further clients today in optimization For have these address you VMS spend reducing offerings, VMS, $XX And of of help challenges differentiate to years the RPO we last XX heavily as was added last the months, we costs. billion. in Collectively, platforms, our the helping MSP are also AMN’s AMN technology decade, critical the access gross solutions workforce in and ago, under and with innovative care which and management labor tomorrow. invested marketplace services. improve quality X.X to know, and

third guidance business, XX% sequential and the up the was expectations in better and Technology segment XX%. over lower of prior VMS revenue quarter. quarter. workforce the in Travel grew but XX% of for RPO million, VMS by our Consistent and from rate. our volume our VMS Workforce with growth bill than language Nurse Solutions expectations optimization the services, exceeded year-over-year, prior driven solutions $XX decline million revenue quarter, down $XXX In beat year $XX million at

base to continue customer this across our We segment. grow

which over unique XXX VMS platforms, Our business, three offers now serves clients.

XX% volumes the client last doubled RPO base years. language X has Our with services has pre-pandemic, and compared in grown

fourth lines. all in Technology quarter, expect Solutions major the with we and to increases Workforce in XX% business For grow revenue approximately similar year-over-year

improving in offerings, both existing creating ones investment our all and of Continued new been never our has capabilities important. more

the than for come. services These an shortages community anticipated. the faced As population is the demand previously and to many with shortages increasing of aftermath our healthcare pandemic, seen far last years country’s healthcare expected workforce to aging worse or are for is with

come that working a extensively industry As organizations is we address and great This their models, Q&A today’s for will our are session a from Kelly groups upon crisis. to in percentage because greater contingent clinical healthcare labor with a topic result, adjusting staffing. expecting clients expand to their of are this

day important do At as that to and that imagine is professionals AMN as services I’m career healthcare just and loved It and ensure for health role. is coming important rewarding will clinicians the they with a the are resiliency that and exciting is time, with every we years, sustainable. compensation highly will one. same committed mental in them for play healthcare an confident work skilled appropriate the helping hard our Supporting in fulfilling the wonders organizations and do increasingly to wellness,

and just join us few will minutes, Kelly for the In session. Q&A a Landry

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

Jeff Knudson

Susan, afternoon, everyone. and Thank good you,

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

disruption revenue, labor sequentially. revenue consolidated XX% Excluding decreased

margin offset higher due Year-over-year, hours from up basis was Gross higher average lower lower primarily higher less from the XXX the margins nurse than and XXX for prior quarter. to pay our by was and points worked in points was margin staffing, partially XX.X%, a compensation Technology basis quarter the margin favorable mix prior package clinician year businesses. Sequentially, shift. in clinician revenue Solutions and Workforce favorable and

our with million team XX.X% and previous in $XXX $XXX year-over-year XX.X% primarily with XX.X% revenue quarter. of hiring, or of revenue million expenses ago SG&A including quarter and the in the compared increased rewarding supporting revenue associated of year or were revenue growth, million members. expenses $XXX SG&A Consolidated or

this Adjusted of SG&A, the $XXX and quarter. $XXX stock-based compared revenue year excluding in quarter The expense, XX.X% revenue nonrecurring certain was or or million adjusted compensation with ago expenses XX.X% in SG&A margin from compensation of SG&A On revenue. the $XX basis, leverage lower came from on adjusted revenue less was variable operating sequential due growth. million lower a to improvement by million

third was $XXX and year In XX% Nurse million, and quarter, the Allied prior higher revenue from quarter. XX% down than prior

third in the quarter expected, rate, average down the largest decline sequential experienced XX%. we As bill

quarter. from revenue sequentially. down revenue year the over XX% from growing Our prior XX% $XXX XX% Travel year grew X% declined Nurse was business prior million, and Allied and second the

and margin up clinician from XX% was was lower Segment points than revenue. compensation stemmed XXX points was quarter. SG&A the year offset in and points year-over-year margin sequentially. points XXX lower from increase Nurse and margin year and margin. change EBITDA Allied lower Sequentially, of disruption basis lower revenue. lower XX.X% favorable XX labor higher Year-over-year, gross changes mainly favorable by prior basis the leverage was prior than of gross due than margin labor disruption to The XX prior partially primarily basis basis

prior sequentially. lower was down revenue million, Physician from higher third was Segment increased was prior The an tenens Search for points from The XXX EBITDA was and X% and for down basis increase points and gross sequentially. unfavorable prior XX flat year-over-year year. leadership EBITDA Solutions year segment up margin year-over-year Gross due specialty and year-over-year to increased margin revenue. in was locum last $XXX on XX% sequentially. from leverage due XX% mix. than million, margin this was sequentially. revenue sequentially. Locum higher points XX the in and to the X% points primarily XX% revenue to was both lower higher up basis year, $XXX prior tenens SG&A Leadership than XX.X%, margin XX%, were Interim year basis quarter flat year and basis XX decline primarily due margin revenue

Segment quarter-over-quarter. in was revenue prior XX% XX.X% the margin million XXX revenue margin business. The XX.X% from the Solutions Workforce from and XX.X% points sequentially. XXX XX% down down ago was was and down quarter, basis the and growth the XX% margin Segment year grew and due higher-margin basis quarter. of of points year-over-year was $XXX million $XX XX% of up EBITDA XXX gross third Technology VMS growing of to sequentially. of VMS up was year-over-year year-over-year basis points and down the year-over-year increase

and Consolidated per points XX less share higher year-over-year by than quarter. $XX when EBITDA strong. EBITDA share year-over-year third quarter Operating down Days flow and were income compared adjusted million was outstanding with $X.XX days in $X.XX the reported We unusually in the Adjusted the million was of from year Adjusted was day $XX million were million. the margin capital last year days, in diluted ago expenditures was of and sequentially. was of down earnings XX XX% points sales earnings $XXX higher basis $XXX higher XX% cash basis XX% second quarter of quarter. than net and the prior for quarter. quarter collections $X.XX XX X X per

$XXX As equivalents leverage X.Xx:X. cash of a of million, we $XXX September long-term XX, ratio had of of and debt and million

the turning a $X prior are of includes compared quarter guidance, million in with revenue fourth ago be to $X.XX billion, over guidance million revenue to billion year. consolidated range XX% disruption $XX labor Now to period. Revenue year $X.XX XX% in of projecting we to down

details is the expect segment higher margin Nurse approximately SG&A be to XX% be Allied to bill We than margin projected release. Operating be expenses for Reported earnings EBITDA to expected and first XX% fourth are be quarter XX.X%. our gross to of and XX.X% to lower is adjusted XX.X% average to expectation. XX.X% be revenue. found than prior margin to projected be the Fourth XX.X%, guidance to rate quarter in Other XX.X%. level, XX% is our expected quarter to can today’s

guidance including $X approach laid of of quarter EBITDA current XXXX, EBITDA we adjusted of the our midpoint framework for XXXX the exit billion a rate, of fourth the XX.X%. annualized In approximately February, margin adjusted Based based and an billion revenue our on fourth XX% out quarter anticipated expectations, implies $X.XX for a on and margin. revenue same of

XXXX views current on business trends on anticipate end and do any Our markets. changes in major based are not our

hand like Susan, AMN in is to to for closing remarks would XX incredible call. now sincere and entire team, I’d service, we on impact call personal the years and professional to And the on of of our like back the you as of earnings her have last gratitude for behalf this all express our after communities made lives. our Susan

Susan Salka

and, confidence shareholders. XX have analysts you AMN, really and some our team your that have a it have impact I achieved great I’ve great hands, and from thanks and think the also much, that even going healthcare Many that to is learned who that everyone hearts I’ve clients, mission. as a I of our team. good and was thank of gratitude. of at were forward. reflection and clinicians strategy around long. with understood you the company, congratulations to us that things and Thanks will In And Yes, socially know long-term the supported you of are And so of organization. important of through but a also say, have their years an deal our responsible purpose-driven on complete you But your public Jeff extended last And a those leadership we support our for want you’ve the anything to me and all a been an in some in and minds to ups none but great we and make AMN me in change. world ensure to you’re I you downs,

after they and had the when forget privilege they working never that so better best, much how will our clinicians. just we the clients of beacon for AMN of I I’ve Over last can are also loved they our XX ones. to and the them do to my what and one them great care And ever an and that of is how helped years, he of stroke, the team AMN’s with nurses care they watching do work built and our have very helped the serve save much to It’s they clients the day she been dad what honor a for give every and fade. that life. had of part to my and day support was community for and do clinicians, every his never admiration will

similarly, and of constant been And and AMN, inspiration passionate have our source talented a at they learning. team

a been a achieve individuals goals. We me and my teams at their professional help, goals. to and achieve to personal an honor They of pursue goals, and AMN helping way, have certainly any helped and it’s personal privilege professional in to purpose and

part. that, It team the and It makes our us to this as continue with and We on our And is under inclusive know know deliberate Cary’s a leadership that us I well. have will and culture makes attention I diversity you diverse strong. very importance forward of think culture and certainly very inclusion that leadership unique.

outside want we communities, I far, support, work culture. been particularly a sure are will and that Directors course, reaching joys heck a one of the into our most greatest I work but our fun our and It’s has of part Board of Wheat, and without our important and Doug of guidance. for to CEO many be mentor And my his of hard, people XX out have who’s been and of years is near our out the We the that have help of that way, also lot AMN leader built about over wouldn’t leave guidance not provided Chairman, fun my continue. making is And who business. we to how both about of am today would part I years. and along great doing walls

to directors, of So thanks a and past. our huge current all

husband, family, you as it, through imagine AMN, AMN I times. want know we for amazing young to my moment their way spent them, have can’t of refer who I this journey of all been us. impact. raising were professionally, are each and good always themselves, incredible At to each incredible to if other, and take It’s for want take mission. thank challenging many And always we group a years you me, And kids support other here, events, forging to on And and and with our through personally we I’ve me, my that world an now I dad, own put a adults in my than the making up mom imagine an times really without showed amazing don’t I more Scott, up thank AMN. who all life, my AMN. are care

often won’t some get And of same a that last It’s out of weeks, But say I sort the at I have such bit I have fulfillment tremendous thing, and to over talented, group after years. there’s few get of time, of am many I a sadness me So a asked people. if that course, sad to but fulfillment. working of pride. with with AMN bursting people selfish so leave knowing the caring I’m more in daily inspiration little

could that to additionally. more impact much forward incredible in with have spending myself, And soaring this and a making to time I look heart positive So you anything beyond is like face child mom my almost huge that help and being it’s but I your or have that can’t my in when a dad on because smile contribute family. proud world you my feel

a the knows anything I do AMN that So can will friend I the mission to of supporter and and sidelines. achieve everyone from I will always be a

truly today am best and years and and our of come I I believe it’s our AMN are as proud in the great greatest impact in brightest hands. days to As

the to will we with And that, questions. open call up

Operator

from first of Our comes line W. of Baird question the & Robert ahead. Instructions] [Operator Mark Company. Please Marcon go

Mark Marcon

Hey, just on and congratulations foremost, with pleasure have done AMN. following terms extend a future want society. It’s an been last you to company And And what good going going wishes you’re years I everybody. XX, Susan, first accomplishment and it’s do now to for and best to your great my afternoon things clearly help in incredible the fantastic forward. the shape years I that in know really to in continue of XX

in everything, particularly provided. but on company financial has Allied? better, correctly. that a both bit, of societal terms to congrats performance So a year-over-year the sequential rates revenue. we’re fourth the you down bit regards going quarter, quarter, at the regards in terms in be of benefits the sounds And to little fourth It of the with and also Nurse are the like for little I guidance, bill actually if a talk basically with the just to heard XX% looking terms Can decline XX%

things little I so follow-up volumes bit that you’re with much XX% stuff for? that, thinking? we you. and billion that What guidance a a And obviously the decline. EBITDA There regards What is guidance And the to to it illnesses. there that Thank potential are are how more how then going conservative? of and been to a the heard was a do are XX.X% the than year-over-year could are margins? concerns of and puts And guiding be what bit make $X.XX some I are I respiratory flu. am about the to We of XXXX raising the better bit pediatric terms little of lot could in wondering, and Allied up. about cause thinking about Nurse media the meant wondering, that relates you as in basically to thoughts a little is some is takes

Jeff Knudson

Sure, Mark. I start. will Jeff. This is

of the peak XX% a So, on the is year-over-year and bill quarter the off rate not number. first

expect approximately over sequentially up in to do down Nurse look we single-digits. bill Allied be rates we volumes and QX As mid then and sequentially,

or the We in We that end timeframe. rates they of a will the project to flattening the continue the bill decline do quarter. towards have anticipate seen since September

they provide that So of projections. December of revenue bit flat the little through remain year, the to if end could a upside our

million puts against fourth also labor and Allied, main out then revenue only we decline takes. those just that’s year. $XX about are revenue when And year-over-year would the in So of guide, that think in and I have the you disruption comparing million Nurse quarter the last and point $X

And on that’s into decline Landry So it pass I that percentage playing over larger on flu basis. year-over-year question. a the to will

Landry Seedig

it’s Mark, Landry.

flu, haven’t it so and in at of the our and on there impacts lot big we a that really flu much. wasn’t was times spike of how So anything that historical and whenever the we historically, our a went and spiking And trends times business. looked years back no changes, seen

are have So patients, little of with couple a seeing vaccines. local not impact. more an administration staffing because out they It’s it’s does are flu helping flu a clients they bit of because our of

anyways. typically quarter, is the we doing. volume on flu there see national what is the performance correlation But every that fourth at looking based first quarter, of no the So strong year even back historical,

the about Of the you are bad seeing that are about on then hear flu we the same you be about RSV, COVID. stuff news and how could hear probably you season course, all

doesn’t that, that hoping We are happen. actually

another think would and clients pretty I have of kind more off at spike. worked to just normal level. think And if our a have down and hard we I the again track bill set team through go us get rates up that to

that the we’ve things. I of reasons, to what major really any many seen from you But expect combination don’t see for So if regarding spike three changes. flu the it sort relate actually the past, hope in we don’t of any those specifically

Susan Salka

you add Mark, worked and the to known feel with have through kind you. to to comments. you honored Thank other I nothing for than very quite that, thank years. And your I have you

Jeff Knudson

PLS in Nurse talk that’s are in confidence and not question, I just Technology and the flattening annualizing growth say, the and Workforce and we across your where on the post ‘XX Mark, quarter from the of on just quarter, in being guide the the fourth number. generating gross our margin XXX say, of EBITDA beneath fourth what the the think points would but Solutions, demand the first half. September were that with heels And to slightly rates about gave we’ve midpoint guide approximately us in margins seeing better where bill within I in the quarter, seen that I just midpoint quarter XX.X% improvement, of revenue is would then Allied gross basis we the the sits that the third fourth than

So into we and improvement improvement and gross year. have Workforce changing those half first nice of move as driven into with also and we see partially of and don’t seen trends a we Nurse in that’s ‘XX. we Solutions seen the margins And of spread with the the mix, part the the pay back Technology segment by have Allied but bill

Mark Marcon

That’s very Susan, best. the all perfect. Thank you much.

Jeff Knudson

Thank you, Mark, to you as well.

Operator

Thank you.

comes Our of Please of go Securities. Kevin America the ahead. next question Bank from Fischbeck line of

Joanna Gajuk

today. is this Kevin Gajuk in Actually, afternoon. filling good Hi, for Joanna

thanks So question. taking Susan, the for congratulations. again,

but and we different calls We will hear sure will. time, channels I’m will on definitely you miss we through conferences, you this hopefully, from

bill here, feel there keep But also higher I guess potentially bill rates, the different in that viruses solution just drive So, you of mentioned we’d are we either out have talked a again. And about congrats potential the another spike that And you so to could that is the question rates. still, here drive but rates higher slower. the demand. bill some like will

potential yet? this comment of not just or any the So already you happening seeing higher are on demand, any

Landry Seedig

Yes.

again. Landry is this So

or be comment, any on in years the that things based things my first due some wasn’t spike. thinking there on of of spike. create demand our not spike just I those to spike in seen necessarily the a did COVID flu would where sort are because of of prior projections we’ve that So None

that that, does hoping So not occur.

So through went assumed nothing prepared remarks. over that our in anything is we

for right is demand travel and it than now, allied, stronger pandemic. Now was before much it nursing the

record. at down. year-over-year seen look If last ever on was it basis, time a the year, it had highest on that we it you This is

States going the point. United of course, the Of through COVID one surges at of is biggest that

couple demand and So a in of ICU we be you as continue to down be respiratory. expect, would this little would that robust be just more a bit environment, would areas

So just like is you example, there But expect that now. areas, therapy would very other as were an prior some in where then that’s robust from right year. we

need but we’re a clients, of same cost staff. pressure desperately they lot hearing the in the breath, still So from our

that so why high seeing demand And are. we’re we the that’s

Joanna Gajuk

And in if the I from contract comment a to to actually follow-up hearing over expectations Great. come but remarks greater to jobs. of made returning potentially we’re around labor that the also your permanent may prepared nurses time, some percent vein, to for labor

much it’s contract would not think? as if know from see color don’t happening. I overall terms people are that So for maybe any dynamic in of and you labor, there so, or anticipate Thanks. you as some some there saying is demand demand you hear your de Or minimis clients this the given the shortages,

Kelly Rakowski

our is we’ve in, think things, few down, settled Hi. This it’s market certainly as it’s this itself partners, in and talked still be halls engaging considering clients I with industry industry to Great about with see still A we but one most of for a question. crisis walking is clients volatile years. and multiple week-to-week, other the their is and settling the as general, Kelly. think, persisting

so And at levels. between the persist getting success very filling continues high while, and vacancies gap vacancies, some we’re yes, to hires

have quite XX% the our They of another looking they whether their unaccounted flexibility XX% within us that’s contingent increase sometimes another from is some is see we to able of clients is that their for. roles. think own fulfill modeling generally about honestly, that So, XX% staff or their staffing. their core their come will staff, to being from there that, And heard then

at technology. looking that And ways to can so care other change they with that can are their they they augment models. solutions. They ways are at looking looking are They

on job for ways. daily in utilizing of predicting better their them them demand their their and with basis, in working and a planning do different a are We staff helping supply different ways

travel they of as decade Landry local for the workforce with time, those trying engaged are support their models our significant the per that optimization And our impactful that today being gaps. well, mentioned, by first augmented is we’ve same long-term, to very technology, virtual been by foremost, do, and gaps, are looking try over at under as at then, continue So to what we clients care diem are cost they and health. important through to and and as pressures course, aware manage through a different highly fill solutions of and

much where clients those services, solution next certainly, to help our virtual If backfills that expect that X of in language clients about with solutions a innovation the a expect the kind we staff partners more we’re things industry and lot mix solutions, their for you and model, a our at at services we’ve stay solutions. we’re it’s them remote adapted using thinking our the also to look of like table seeing X RPO the at of our efficient we long-term our where while today permanent contingent utilizing solutions. levels international But will with years, language those

they it sum level to up it are say are from gaps the they all looking and crisis of at I’ll given facing. So fronts that

Joanna Gajuk

it. appreciate I you. Thank

Operator

of line Rice Please go Instructions] question from A.J. the Our of ahead. [Operator next Suisse. Credit comes

A.J. Rice

Susan. company made wishes, ‘XX it years way and through credit acquisitions today. how best and in And the challenges is number the the everybody. the a pivoted just crisis managed AMN company ‘XX, you made think of the ensuing presented, about the opportunistic I Hi, you of Thanks. always and that

great been congratulations year, And about comments on when think in played as anybody, earlier and out you your probably pointed so, etcetera. the than providers, you’ve I out, closer what’s to a run,

earlier at maybe thought view or, this next we traditional type bottoming that some the I market on or would fourth normalized your decline would sort more bill of view of in out maybe year point to things faster? Is where maybe quarter know you of more got of months What in terms the the then the will go on of normalizing? year is first it’s still that One of is the is X tight now, so in sort we’ve rates, you be and growth your that said return guys the you backdrop. of

Jeff Knudson

and expect, pattern the normal for our quarter been of would XXXX in fourth has numbers. return we to time, A.J., a seasonal some generally this off view Yes, to

we’ve will So we’re am not could a be for step they levels quarter? But and and QX at now for X% purposes, bottom. where QX or from of these year, see sitting these reached XX% we’re and seen, to fourth think bill the right and from the behind in from seasonally we right the sure. next what we the think sequential the worst third or bit that we’ve in outside high us numbers that back is where decline all quarter, rates little XX% I now, fluctuations and seasonal we intents second September the

A.J. Rice

of as partner the number a Okay. a over last you’ve just clients nurses. we’re hospitals, years, viewed your for with as program And seeing And follow-up, long-term been I Obviously, a the know hospitals maybe for with downgrades hospital struggling. become you’ve MSP as partner well.

would of back to you or may just permanent angst, my the going clinician are this go side? be then the systems some coming are to those trying last, side, I the I solutions more table We’re it. – down. to not they little the fill things placement, seeing XX%, with where do like? up guess at And how is you know economy, least they what you a with off clinicians about this engaged in sense on bill on maybe or And looking Are I that them health with in don’t any point? a at need the interested on come just lot the talk commentary on to rates crosscurrents of

Kelly Rakowski

I’ll It’s A.J. start and the side. and can supply on Landry nursing build in then Hi, Kelly.

bit what systems, and a the we’re health expand seeing is now. and hospitals challenge right huge a I’ll on little it from So

empathy incredible day missions clients for have every their communities. We our and of serving their continue they fulfill to

we’ve that had our multiple those nurses. to first heard in approaches in there to different them, have perm is are backfill as solutions increase So with foremost, trying bring recruitment you vacancies. outsourcing about trying we’re our process is It and where challenging Difficulty] engaged for the and we’re is international taking, more they [Technical

we coming placement two fill, to through. new every is For three there acquisitions

how need because for making our them is are really they they area. really levels. their in as ahead maintain becomes staffing not again, fulfillment service will to much So in but the And able only important to it are be not they difference that as getting they

ultimate access of close and other the manage community. the difficult seeing to effectively cost or around, hospitals But case to able their leave access. some for decisions in pockets permanently of of parts going that’s deciding temporarily the those of down to at challenges looking really either We’re moving services create or more health to systems, different capacity be

very we ultimate So those needs avoid can they their everything high-critical can we’re stay doing aligned so decisions. to with

their in And but do optimize they look we current are facing they dealing how as worker also with are then a not they shortage staff, new preferences. only between, everywhere to

younger a have to they employing they They gap a of different nurses flexibility who an processes. experience population in have their want work that are of type So them.

to team-based they So but see insights provide their decision-making received. staffing how some about need care planning not it’s their do in creating models; to is like create more models, needs at telehealth allied in professionals; how meet that also care, and payer only and also virtual into is things the change of their and changes at will more maybe looking looking how technology also our care which going that and care, some augment will

A.J. acquired, we clients ones other our our and some had we’ve areas, to take some those as as the and newer table bringing of to those years, All in as for those portfolio time, both alongside innovate going the partners. of tried robust that solutions And we’ve true that’s industry well of we’re

of are some support, transformational be adopt. will some can those, but they of solutions Some going multiyear we those short-term that get to

Landry Seedig

Landry. is this A.J.,

different high and is side, one for, just the is comments pay still interest of clinicians a couple work demand On preferences in looking us. clinician so travel There very for are [indiscernible] that the and of they that there they to their thinking work. want job in of type supply. location of top are and are terms flexibility those what Actually, at preferences about whenever right that drive preferences the

So of course, pay is a factor.

that one in look higher make a but pay that’s say might to our job. what it’s clinicians rates, if most important permanent be of generally they can the than you still going factors, Some at

assignments their that you and pretty good in and them, to to the eyes, all they of available have time that spot. temporary we flexibility go the with able assignments, So needed different between in much locations off them some, then combine take work being with a we’re think

Our record. actually new the in quarter the applicants highest QX second are third on

QX record But And that’s year. was when last recall, so higher QX our was that a demand as the high. was only you of

really retain feel investments them. our that supply we to tools that numbers, supply experience drive good us making to So the about we’re using the the we’re and and their to

A.J. Rice

a thanks Great, lot. Okay.

Susan Salka

Thank you, A.J.

Operator

Thank you.

open. comes your question Jeff standby. is Capital please from Please BMO next of ahead. go Silber, proceed. And Markets. Our line Apologies, Mr. Silber Please

Jeff Silber

Hi, hear can me now? you

Susan Salka

Yes. We can.

Jeff Silber

is, this Susan, Jeff. Fantastic.

wanted with Just rest of I saying, the really us. you to wish along congratulations

a had run to you’re be missed. sorely really You great done. and for everything Thanks you’ve going

Susan Salka

And Jeff. you, It’s it’s Thank honor fun, been been fun. really.

Jeff Silber

Absolutely. Yes.

seen prior So recession? we’ve segue that the working take we I know in supply you part like how back to economic do I periods go would your time nurses nurses something slowdown, of with expect business? question, into hate if into of the that Do a this increase. into workforce. come downturns, Many a were impact negative have as a but that similar

Susan Salka

starting that the we amongst what because nurse those don’t, some particularly really I’d And executives just of we we last point a shortage in clinicians. have when of terms we point the the the shortfall contraction of shortage is nursing have the at were it’s that starting terms We different of and in And we in much to of Jeff, vast had you of clinicians, what that it’s reason generally previously. leaders, schools. and the think, saw not what’s extent not the say healthcare the leading are being discussed

today, was for actually nurses something think under is information. to difficult that change. probably time, sure, because No But well the million sort there be get next with one starting it to if XXX,XXX. X years to it’s of And we’re some XXX,XXX. I the not expected in close of is knows, north real-time shortage at few

is significantly versus time. to having there I could perhaps guess it a shortage a keep is get negative news the So if worse good this in over level scenario at this recession,

And so the issue. starting is point one

the second X.X is of really of last have I last the because years. probably X.X form The is PTSD and not years. what just been it clinicians through mean a

the needed. As accelerated, of that, layer then that that And or not on support already a you of feeling profession, needed, breaking not levels less they to the of whole of really course, I at really a compensation point, also, respect exaggerated them, that It they the shortage of strengthened they the less part for remain of at were top many were the of nurses bedside the getting their pandemic want reasons. setting that and in they least that strengthened think, resolve the variety profession, don’t healthcare. that resolve

those probably of within non-bedside on may healthcare. They have gone retired. they healthcare, many have clinical may if they roles So to them. continue into and role another have are moved will in type There

of have some And the profession them altogether. left

triangulate elasticity of difficult saw we contraction. model that So the that see same you financial while factors, same during thinking if those exactly it’s supply kind is we won’t to different general the

Jeff Silber

a Okay. follow-up is question That was My very different helpful. area.

mentioned the you hospital leadership just would was position your think but bit some that, in clients I know word we were if piece can think Thanks. streamlining, small great. your you of a some used, business, more some get that that it’s I positions. it on relatively a non-clinical I prepared be of from remarks color the little

Susan Salka

Sure. Yes.

on read minute-by-minute heard the or not probably roles are clinical in that roles, to any patient on basis. a are you contact news opportunity looking supporting that in other but reduce So reports those articles cost, earnings truly hospitals for patients and not

leadership and roles administrative to lead that roles. So

the the indicate lot that of would so to is they leadership better to an in ranks, redistribute amongst the does and amongst concern has which their can next restructure years more their And create continue, organizations and burnout look not in of financial last can I those and are just work good leaders, more why trying clinical about most amongst the of they couple is or while operations. just manage will to there is doing is because it saw are burnout today where But year. that as attrition already environment the that high front. they within not what what lot leaders outcome very it a they you looking going something and picture probably a will reorganize still there you of necessarily cutting healthcare tell that way the be

are cut can just they think without now, for I So But place short-term. anyway trying hoping directly affecting relatively probably patient the they they can, it’s care. it’s to

interim business our said, the So brought with well executive in the as business. that demand in leadership down search it’s as

less can it’s in it feeling the got of orders. for short-term is opportunity Still certainly the even saying. we are We than effects based less there that relatively year better to so, we’ve make have. job of with nature there. we so us think placements we demand through so are with so and fill, more on But filling last do to or orders what clients the could that next And a

Jeff Silber

so much. you Okay, very Thank helpful.

Operator

you. Thank

go Please question next Tobey from ahead. Truist comes Our of Securities. Sommer

Tobey Sommer

from career. Guatemala It yourselves kind you period. of What whatever on X.X-year had during and not event, seems smiles that the so wall customers really Thank stressful between well-rounded I pricing those, and ask were look different and a your new tenor This to the photos relationships, those. you, congratulations. Susan, impact largest a trips question able. client much mood to a really you about down is? wide so wanted Thanks. the your is to the rallied of a them business have as of as of normal support specific colorful and you I’m mood your sort of but towards has the been outside your reminded from the best you come this

Kelly Rakowski

least it it care visitors love stick actually to of it. through proud has, good have spend say it’s done their remind and with they support. I to through to and question of not fortune right of non-patient me we without the lot you’re the the what I’ve by strategy. about stop and our time CEOs at make lot reopened had about will through dimensions Kelly. the that Tobey, of talking I pandemic. get And share have our to that we a well, would that been to to And very pandemic hospital are mood. team in have Hi, clients hospitals in me out I whole able hallways, our have – a

cost still hard scale is clinicians in pervasive given the sentiment and for their services during significant we to on pretty a this time. competent had do been and that what salary that time, our with So wage need reduce same knowing a At to provide has the stress them them has quality increase to and highly there become certainly the a benefits.

those the that make So help attract trends. they we we’ve costs, the continues also reduce them you that rates. need. to to see they them that way But that talent that everything also can help can have a that those Obviously, in sure reduce done bill in we’ve done

market strategic and clients, our thoughtful very been, most So in particularly We a deliberate nationally locally. data, it’s with them provide both strategy. and

they we plan analytics, more They not We’re can for are on more fill We cost that guide transparency decision-making. them kind and to to accordingly those so of for appreciative providing gaps. but help that reporting of the give very insights they future through only them perspective and the them share. that where the same need

of They what and broadly. businesses. help They more expertise them we see and So bring that more. our the have can more then levels. the that help also been more value And of to I know to us long-term, our would bring to what can partnerships our them our utilization to we they does trying the appropriate strengthened say our that about recognize think to capabilities, some manage portfolio staffing

do. So our and what allowed to maintain us around that long-term has having rates It’s high can we’re retention positive. discussions been of most the futures and very clients of we

years. productive last do So I constraints of driven what we’ve and is by able won’t situation, the over sugarcoat highly the not financial for been to couple very still appreciation that relationships there

Tobey Sommer

internally have to structures out your to at opinion more Is services for positioned technologies And like different company follow-up, on try cost it more approach. to company’s kind my the the delivers to a in points? stratify deliver rolled clinicians sort staffing company the well a of get at different deliver and some kind to how price industry of those of I’d in positioning and as Thanks. players tech-enabled more

Susan Salka

as so Passport Susan. that integrating be own more it’s we day systems like our towards client-clinician-facing know as spend we that Tobey, and whether make are XX% I of then some moving create more in like possible. and goes do pricing every more direction can that in that time. it’s and things pass our and technology, frictionless streamlining heavily technology. that but in internal it also improving positive experience. Yes. invested we’ve CapEx that or think we’re quite we feel we Maybe as there as they clients experience a and can efficient – the over along for that need And don’t touch can still a I that assistance, different don’t yet. clinicians much lighter

greater Passport e-mail to XXX,XXX have are assignments of We have, where tens existing on conveyed utilization we or Passport are input. who that manage can jobs very like active for fax they or of users seeing of month, used we thousands only every to things things not somebody manually do then matching and

much it upload directly, they online do like just your can banking. Now you

kind better different offerings therefore, where clients and this be have this of the you better that. offering, XX% Or it’s a touch So is I of now. may think kind assisted into, down that and this as digitally to want we will continue clinicians road, digital, able higher stratify that everything is we

because So that investments positioned this that talent very the scalable. been to We in be have, a resources I’d We’ve of our working at want because making we’re forefront. we long say it of we the well have. and digital time

the last of popped who digital, newer I it’s years, the the easy. sure few actually There need think whatever all with one well, up things initially claimed is probably does that be. to clinician may then the that companies of some has have be they heard, or somebody not be maybe credentials realize, Tobey, makes or a it you over that maybe who to license

a as a maybe because probably they what intensive actually lot more built – little being ends it so wasn’t more than they up labor scalable. expect labor And

So we match sure of digital that want innovation. going. we investments make being not today we’re where the we’re forefront but We see the are on that scale, as to ourselves making the only absolutely

systems interface. probably be more that integrated digital have to also We into need that

on the we’re and else clinician again, very we’re the get moving a anybody We talent I’d to resources. So the there. anyone very, have, say in should and journey, than we client be market else. experience better And faster positioned having and well than a and

Tobey Sommer

Thank you.

Operator

you. Thank

Please Blair. the of of Our next question go from ahead. Mulrooney comes Tim line William

Tim Mulrooney

Yes. Good afternoon.

First of in to luck my Susan, throw your and just at on your adventure. good AMN on all, congratulations tenure I next want

Susan Salka

Tim. Thanks so Appreciate support. your all much,

Tim Mulrooney

course. Of

third So sequentially healthcare labor contract of the reporting actually first, costs we second some to the saw quarter quarter third operators cases increased earnings from where quarter.

volumes of if of with as more sequential if or you you decline you curious quarter? saw clients larger in through the Just quarter were were as actually well, that if third seeing a pickup a volumes throughout some your moved the

Landry Seedig

it’s Tim, Landry. Hey,

if some So you look you certainly takes. and see puts would at client by client, it

a do they could need population, fact and to bit be have due So we that is to their different. within could their network quite due a there be due few a that to know for clients look large I to It the could their they network. be trends what geographically. member where are that It

mid-QX takes specifically Nurse business in there were third then quarter, to as through puts think different think about it volumes come our moved both we has back in started Travel And Allied and and I asked when the So volumes we quarter. I the up. was you see and

Tim Mulrooney

And only publicly. for briefly remarks, really it. touched Got to helpful, finally That’s ask you in opportunity you. your our Susan, prepared but this thank is this me, on Landry, then this

So AMN here? on next drawing where just a right why just fit came you person the that’s and curious her think to move why Thank and forward you. capabilities, she is the experience Cary to Grace from level, good

Susan Salka

And something in tad it reasons thought will asking, that Yes. That’s would, a and the that Board that we’ve excellent have. investments is change. for We was evolve muscle cultural problem strategy made fresh change, Cary that a will perhaps organization. took and end, needs it many to Tim. leader candidates. that but has good that built continue to because organization, just for felt the and it of is which a No, people we change, we I of an great maybe a change to upon feel important the in have AMN she than had longer strong fantastic the a match very so one is thanks the lot clients build will the perspective. make, our our And going the But a strong and foundation to being probably culture is bring able shouldn’t the values of the

to that I proven She additive solutions of diverse has So very to growth confident at a a she scale. will enterprise feel drive be portfolio track through that. record

go, think that, so the and great I like helped clients our staffing evolving transformation previous someone team, have think, in The comes her a strategy. just is, outside want our important And where a continue at much us. fresh have through differently. and how who of digital, where we segment she more it’s enterprise rationalize I looking and who experience we think been and has think, critical of we we has a as a variety it how staffing, a human room direct on customers healthcare approach transformation having And launches, a because digital really terrific a someone a how gone through about do cap platforms around talent really important question versus her full-service team team think both like was went for we feather we as market and someone things a And from felt and as for have done very capital but would to whether industry already serve tech strategy. to about digital who’s new I additional that global probably scale perspective valuable our their we an product to job created client that of clients to was, be

Tim Mulrooney

Got it.

Susan Salka

Thank Tim. I you, hope, helpful, Tim. that’s

Operator

this like the Susan Madam? over I’d Thank back time, turn Salka for to call to remarks. you. closing At

Susan Salka

very you We appreciate Thank all today so and you us team. joining much. the

you along again our support and with [Technical over me updating forward years. on AMN look Difficulty] call. earnings next will to the for And everyone’s We provided thanks the Cary to

Operator

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

You may now disconnect.

Randle Reece	Senior Director, Investor Relations
Susan Salka	Chief Executive Officer
Jeff Knudson	Chief Financial Officer
Kelly Rakowski	Group President and Chief Operating Officer, Strategic Talent Solutions
Landry Seedig	Group President and Chief Operating Officer, Nursing and Allied Solutions
James Taylor	President and Chief Operating Officer, Physician and Leadership Solutions
Mark Marcon	Robert W. Baird & Company
Joanna Gajuk	Bank of America Securities
A.J. Rice	Credit Suisse
Jeff Silber	BMO Capital Markets
Tobey Sommer	Truist Securities
Tim Mulrooney	William Blair

AMN Healthcare Services (AMN) 3 Nov 222022 Q3 Earnings call transcript