AMN - Earnings call transcript Q1 2024 | AMN Healthcare Services, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the AMN Healthcare's First Quarter 2024 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 speaker today, Randle Reece, Senior Director of Investor Relations. Please go ahead.

Randle Reece

everyone. afternoon, Good Healthcare's AMN XXXX Call. Earnings Welcome First to Quarter will at call. ir.amnhealthcare.com A replay the available webcast this this of at be conclusion of

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

forms statements, The these forward-looking XX-K with most of various because prior Our may materially differ statements earnings our to our actual XX-Q, its the or today not in from and and forward-looking to including cautionary release results recently filings any identified update guidance provided filed those company indicated by subsequent intend those factors earnings next statements and does SEC. release.

certain of at financial and in most non-GAAP to the our regarding Information our these page ir.amnhealthcare.com. on comparable and measures financial contains GAAP are reconciliations directly information. reports earnings This measures included non-GAAP call release

Chief are call Officer; On over today the the Financial Jeff to turn Knudson, Executive and Cary. call Cary I now Chief President Officer. will Grace, and

Caroline Grace

I you, call. to their the professionals tireless we in play first they and the team in recognize and to first role for as welcome the AMN care. to them quarter Month our future National and the of wonderful members health earnings our extraordinary mission my strong Healthcare world our during the in furthering of nurses commitment of Randy, empowering for XXXX especially care around U.S. the express and and in for Thank gratitude efforts want Nurses

of displayed and tenens. trends, with of with businesses including language earnings million $XXX of consensus was positive quarter First line in our expectations coming Several ahead estimates. services locum in revenue

to the line consensus. continues Our revenue and reducing demand is business, guidance nurse care Allied than for for in staffing. Nurse contingent largest Health organizations labor with on depress our X business focus second other segments quarter

of overall than quarter been the with care, down search. to the RPO service and more revenue have AMN XX% labor first Nurse Other segment Allied XXXX We XX% squeeze the to from segment. in VMS, and by second including cost declining in health expect quarter, staffing affected lines the be nurse

shows the in Interim International QX growth dropped, down Visa to state first on staffing revenue expected, sequentially year-over-year new sequential time revenue applications. for nurse X and due year-over-year, leadership, as quarters. by constraints XX% departments while X% in

in and year-over-year specialties. and first We for continue to for net our volume strong favorable the see international Trends growth book business in In for weeks client good saw we some are demand therapy nurses. Allied quarter, imaging.

Our Schools declines more in off XX% lab offset the assignment on grew by were from ago These in headcount year-over-year. quarter segments where respiratory volume than especially pandemic. business year and late was XX% the growing

have previous clients client new to we smaller clients lags indicated labor below or progress system that spending. contingent nurse from by of As near-term top increasing on both latest are couple for labor as the our cut have discussed the targets MSP sustainably spending labor focused see nurse reached Indications their quarters, cost largest as have a spend patient contingent implementing models we Based on in of on demand. quarters. majority feedback, their they the address well

for made systems wages professionals In both quarter the growing XX.X% grow cost. utilization and spending that the relative our consistent years in first for of help ago. that We patient view finite revenue to health care figures to labor of cost are on utilization. same compared companies year, progress long physicians of moving the largest workforce many labor have the increasing other of average XX.X% drive meet control, quarter across care supply that with nurses, to hospital and the solutions, greater a and optimize different health manner cost-effective public X professionals demand and convinced with technology opportunity X with substantial the in this run, a remain These sites will benefits, salaries, some on

clients we In workforce trends, them line professionals. and network are help labor actively improve and with partnering these health with to prospects our and technology and reduce and efficiency of our automation that models using care develop implement costs

of as the first environment managing quarter we are businesses, our lower Nurse, to million for be Search. excluding such We quarter. approximately In other continue integration low-demand RPO compensation, share-based Travel expenses, some the second than costs of $XX SG&A anticipation expect these and VMS, acquisition-related and to trends,

lower gross against in for targeting revenue QX line with margin EBITDA estimates. adjusted an and analyst is are Working margin we headwinds, that

reduced headcount have some we lower have of lines. in the to service our seen demand align We with

In addition, where other taken spending restrain to we have actions appropriate.

on to CapEx for range year, We a our key growth with focus million of XX% million to includes Flex out of industry-leading current generation $XX have by rolling reduced platform clients. approximately of and new our spend clients. vendor-neutral the for the spending plans areas This XXXX and ShiftWise next to prioritizing $XX our

of successfully spend end have quarter the by in ShiftWise first XX% We year. are and migrated to of Flex the the clients VMS on targeting representing XX%

our in plan includes CapEx year-over-year. Our services also XX% continued business, language grew investment which

jobs. rising app, account high for services need language percentage Passport, ShiftWise of half Passport is our staffing a clinical and industry-leading our Our spend. CapEx applicants Flex, nearly filling AMN contributing of

well quarter. some gains X AMN is with strategy visible also promising proceeding this Our transformation

to in our half our and Allied which enabled our staffing internal to the us market. vendor-neutral and book accelerated in improvement have speed pandemic. orders, Nurse us greatly technology challenging and in New was improve fulfilling for have in Travel cut the changes time during position process order These

client #X a ranking had third-party AMN we outside the where the our At has suppliers vendors. XX largest ago, top improved among to ranked year

optimization the share are again gain important Smart year. and the for for is market care, mobile serve Our self-scheduling clinicians And survey prospects. health sector enables workforce platform more and XX in These workforce app, these restore of economy long-term reached best launch. Square market than our outcomes capability, is Square XX,XXX leading necessary in first were milestones unique in new conditions to advanced after this more to broader fast-changing and strategic Smart intermediate expected ability changes in which ranked growth the solutions days cost-effective the which All U.S. the demands a to growth coming AMN a to that be the the decades. class

most health and have are reopening solid The first our Workforce our we total and gains VMS progress, staffing seeing market, and we after care build talent staffing early demand Leadership health in AMN pipeline With them partner and for be better Technology position stability Solutions employers and is solutions aligned sales whole when in AMN engine to back. done progress. Physician have revenue the and attained who on comes all have in competitive segment will professionals as sales making some a outlook the Solutions depend and quarter. in care the a

organization demonstrating are concert to rightsize demand. market our the We with in also ability

other business AMN that now in is diversified are in margins mix more AMN helping Our experience than than past downturns. maintain higher market cycles, profit

a for building managing are talent-rich risks through important while all for We mission organization, value-based growth an of long-term sustainable stakeholders. serving our short-term

work. top this places recognized proud AMN been XXX Becker's in to to month have is

we strong Our and values keeping do. center team through this everything led mission members difficult of at have admirably environment our the while

over for details outlook. and our I'll Now the more Jeff turn about call results to

Jeffrey Knudson

Thank afternoon, you, everyone. Cary, and good

was quarter First driven and The search was was and and by consolidated X%. quarter Sequentially, first flat, down down and segment primarily the million, from businesses. revenue XX% decrease revenue sequential revenue $XXX the in of was Nurse volume the VMS XXXX. organic Allied

Consolidated XX businesses, driven growth gross range. gross lower margin locum segment tenens Nurse margin and mainly in and by mix points end by basis the our due the near partly of Sequentially, margin tenens the locum business. gross our was to of revenue, decreased year-over-year, XX.X% favorable shift lower Gross by staffing higher towards quarter lower the Physician basis primarily Travel Leadership mix. margin points in Solutions XXX and a and for nurse offset margin was margin high declines guidance

million XX.X% were proactive in revenue elevated due the been with of of previous expense environment. base demand million XX.X% expenses our SG&A the SG&A decrease MSDR current period match expenses expenses The quarter. prior other adjust integration revenue the year $XXX quarter XX.X% SG&A to Sequentially, our the acquisition, have to fourth of to and acquisition. Consolidated efforts revenue year-over-year expenses and with in reflects in decreased or the associated as million or $XXX compared or $XXX costs

prior SG&A, operating which $XXX million compared revenue $XXX in in stock-based and million $XXX excludes revenue the quarter. year adjusted and The first XX.X% previous Adjusted full tax the offset other million added and expenses a compensation compensation, to and or with of expense $XX partly the prior costs of the of quarter XX.X% or quarter efforts. was million of period of quarter in with XX.X% acquisition, compared payroll revenue or efficiency integration MSDR by resumption reset incentive SG&A

quarter million, X%. the XX% first in was with Sequentially, offset revenue from hours lower. the X% million, million, Allied $XXX revenue hours Average $XXX sequentially. from volume down flat partially was Allied line sequentially rate down In increased a year of revenue Allied of increased and from year-over-year hours average by was the bill in up first volume down lower driven businesses. average segment quarter. XX% worked quarter Travel was XX% and X%, were decreased Sequentially, quarter down the prior X% XX% the and Year-over-year, X% down work the and expectations. our Nurse period X% XXXX. prior year-over-year and Nurse first revenue in $XXX while decrease quarter, worked was by was XX% volume, in

in XX.X% driven rest lower outpaced and of XXX margin. the in margin year-over-year basis Nurse primarily and by in the and Segment part housing in Travel allowances favorable inflation gross revenue year-over-year first mix gross and of Travel XX lower points to and by effect and the less the deleveraging decreased primarily basis of XXX sequentially. by extent, in operating leverage XX.X%, due declines points the was Allied segment. decrease shift basis points a gross driven travel decreased a The offset expenses, Nurse margin year-over-year as quarter was over lesser sequentially, XX points Nurse basis these revenue year-over-year margin to in margin which

Physician the and segment. Solutions Leadership to Moving

increased of impact lower up Sequentially, year-over-year, of offset driven First search. $XXX quarter full of offset by XX%, growth XX% revenue acquisition, of in XX% the interim was by revenue decreases from from MSDR, primarily the addition partially with leadership revenue tenens the million, and by MSDR. quarter partially was all the almost Locum from in year-over-year million revenue $XXX MSDR quarter up a search.

Physician quarter, soft. prior mainly lower $XX bill spread year-over-year Interim to Solutions in basis and leadership year and was period, tenens. the points revenue revenue Search XXX $XX of to Gross down the positive million mix organic was XX% sequentially. XX% and segment was trends was attributable Leadership due pricing. from down and a sequentially the of year-over-year prior X% up volume remains as decreased demand XX.X%, XXX for XX% and shift revenue but The points basis locum both million down the margin year-over-year pay in decline from

decreased businesses. for and million, and increase margin the declines X% in of operating Solutions the language was as in XX% than trends the a which and revenue XX.X%, lower Travel Language with and $XXX year-over-year XXX revenue basis year-over-year was Sequentially, X% tracking margin XXX was the by services, outsourced line for basis within in the revenue our was Segment offset operating solutions services quarter Sequentially, VMS XX% decrease XX% quarter points million more revenue revenue points. million, our gross year-over-year, Technology Nurse decreased sequentially. margin. year-over-year increased sequentially, $XX business. first down was VMS of $XX flat. Workforce

XX.X% down from basis revenue margin primarily revenue to from XX prior margin driven XX.X% by Segment the segment. quarter VMS year in the operating revenue period, Segment points mix. and prior language the Segment in prior the lower XXX XX.X%, lower quarter. XX.X%, Sequentially, outsourced a was increased within gross margin and solutions fell gross mix in the driven margin operating gross was year, first shift points by from in attributable the basis change services. decrease in margin

year-over-year margin EBITDA points million, sequentially. of lower the of of basis decrease to sequentially and adjusted was quarter and range. down year-over-year guidance was XXX EBITDA First EBITDA basis XX decrease XX% the in The $XX was Year-over-year, X% revenue. points. primarily slightly down margin quarter above high deleveraging was due on was margin XX.X% EBITDA consolidated adjusted for Adjusted our end a

million, $XX.X was income down net XX% quarter year-over-year sequentially. First XX% and up

$X.XX compared diluted prior X the X sales quarter prior per $X.XX and year Adjusted per quarter with the in First XX, outstanding quarter for than quarter the lower earnings share period the was GAAP and than the for was $X.XX. $X.XX share was Days days the prior higher earnings quarter. prior in year. days

normal progress through DSO the rest the We expect towards historically more year. of

for flow the $XX million. quarter expenditures were and cash Operating capital was million, first $XX

and of our $XXX including of revolving of a As $XX credit X. equivalents XX, draw of $X.X X.Xx March had we billion, on to cash long-term leverage line and a net ratio debt million of million,

Reported is be margin SG&A guidance, XX% X.X% to XX.X%. project million, to in outstanding to be XX.X to from be to are XX% to be consolidated projected $XXX Average shares a million. to XX.X% period. projected we prior range Moving to of margin margin down is $XXX expected to second diluted expenses between revenue adjusted million quarter XX% be year XX.X%. are the and Gross XXXX XX% and is EBITDA to Operating expected of to revenue. X% be projected approximately XX.X% to

quarter please the open Additional call found for be details now release. earnings guidance And in can operator, today's questions. second

Operator

from our America. of [Operator of Kevin Bank question Instructions] first And comes Fischbeck

Kevin Fischbeck

Great.

a I business. underpinnings long-term kind little how like color more the demand the of bit the for about about. get comments thinking about kind Just you're of of appreciate

should think little question out where that about you half the the clear. back do clear? I also is you thinking is can bottom? does QX those when the that year in I a more it Or the back Do are growth? see is Or trying we're figure where kind of expect not and we continued still bit believe of to bottom half? be decline you guess the

Jeffrey Knudson

is Jeff. this Kevin,

fourth So really it X, demand the it's And weeks, the quarter, stable, first was of 'XX average. when down in from from demand XX% recent Travel down since we look during average. quarter approximately at XX% first been although within that the Nurse, the has April quarter

So lower on expect the average. about we Allied, in we than the point. Nurse now travelers June of And into be look travelers on and XX% when will the quarter half the those June assignment back for month right within assignment to be low would second

And so the that the be trajectory that's would third carrying quarter. into we

Caroline Grace

around number who past We they're still the what the color of have we're clients talk Jeff contingent Kevin, I health our of side. majority nursing by work we've their think also MSP mentioned the some some of -- weeks The for to with are in clients, opening a but with largest as what you've the quarters at I commentary who certainly the some what of comments, see clients lagging the seeing probably the some clients target largest our in between couple seeing couple the stabilizes on spend largest this still in of system seen we clients and the if and that a largest kind narrative you for even us clients, do. of to public so what question is or you our have the gave below you some about around what clients. quarter over out and is seeing across where been board the we're of versus that past

Kevin Fischbeck

half the public for to companies the they like several or kind look there as back little as what like just that off color of might actual hire they more, as it of Okay. been back the supply-demand to go low a is some view that of a so I'm have. indications look kind get conversations macro more demand? to that to think of something initial trying quarters from just as means seem a might That's eventually to you broadly I are far there about Or helpful. that a -- have more half on? see of firmer it of that should 'XX guess of like? but you perspective, June Because doesn't what saying are point that's of Is the few year the there point? kind

Caroline Grace

things. Well, say I'd X

you in talked because the If Nurse the was all high over a look utilization Travel COVID, you the and area intact conditions focus, of market that macro past big remain of about such cost coming the as out conditions, quarters. macro supply-demand had of at couple of we've

number Not So one bottoms is macro a individual every a feedback target, on up, do, of and with clients. conditions, but clients our they focus has really are. rolling especially is where our largest up every client client

And are on and that with are aggregating really them goals we feedback. so what their up working

Kevin Fischbeck

talk just a new last the Can And bit environment competitive question. maybe little for you contracts. Okay. Great. about

quarter, I the in more about a last think talked of towards is end QX. that think you contract relatively I large kicking

to So I there into in things contract we half? guess would as far But the back maybe anything as heading turn, wins, QX, see it. more contract highlight that losses like

Caroline Grace

Yes.

make both out the of renewals. pandemic. talked So we and continue on the And know I about coming couple we of to past sales quarters, progress over

renewals you larger You had than have years year year. really we that multi representing certainly this year really of a last had

We last are on overall tracking than say of year. sales. renewals better those kind I'd And

sales of our We from continue and almost progress half our to vendor pipeline neutral. build a and pipeline is standpoint

expected. is So it's say I market. What been It progress has competitive we're very competitive a making will as market. a

be to market. a continue to it expect We competitive

Operator

Our next question from William Trevor Romeo of comes Blair.

Trevor Romeo

maybe wondering go a are to wanted staffing the you to decisions more Nurse CFOs finance the the one environment seeing the alleviating to pressure on the the of from a of the still demand or clinical to in when of that you a Allied. decision-making and any clients? back step some client guess is Just I Or that back speak kind CFOs base, scrutiny if side? on level of process. for back take that be just I of of high the kind might organizations starting if shift sign in

Caroline Grace

say on it Yes. Thanks, clients. the I Trevor. would depends

have you team clients of both still the those where clinical and team I'd decisions. we so some see, in finance And the strong engagement say,

they're at some is You it clinical looking clients relative their how going really to where team see staff the target. to

you solutions we client. total our Our goal, to talent want be for the know, partner as is

against on they're is demand work the with team finance that's to want and our clients we board. the optimize their across they staff through And So they clinical the team, workforce how patient engaged the often seeing. how

Trevor Romeo

Okay. into That's is thus company think on locum would follow-up, full And in your with the then Jeff stay this had growth update you over just and have far, fitting helpful. that And great. so first the any be for the all quarter then said switching the the side, side, to the organic to MSDR, how almost was trying if on I quarter. around that's

So side progress maybe growth us could to give or kind you're update locums on legacy you still seeing some of and on of the of a reinvigorate the there? challenges seeing success where some efforts

Caroline Grace

Yes.

bit Let me start and talk a MSDR. about little

behavioral strengths radiology degree the on it to And team, do health. AMN of they around for portfolio, are locums about behind both first was think and site MSDR the talked part so the excited in the really what it about companies: we the when quarter acquisition, clients can particularly this excited MSI is acquisition talked full integration, we and and What what DRW. for so and focused MSDR our X some rationale in We the about them. I our do can of the is quarter their first working officially and surgery, we with about

of pool. they candidate their and some X capabilities, back-end And companies integrated their functions, office while those hadn't of systems still front so number a shared including

integrate sharing of So those first start we that focused could firms AMN. quarter X completed doing then and order and with we so integration the the

and are with we So integration now in starting some that that company AMN. have to process that very well, have integration combined revenue would the the of that with did went we expected. growth not do the of during sharing order We

we're the line, we have and so do completed to as starting now with AMN. And sharing accelerated on an integration order time

locums the this excited as quarter are We help and that can with go through do to we that beyond. us demand have about what we

Jeffrey Knudson

this Trevor, Jeff. is

side, sequential for would year-over-year then locums core X% core was improving the comparisons business we the the the in year-over-year, back into On move organic QX half up growth and locums. on we side expect as

Operator

A.J. from And our of next UBS. question Rice comes

Albert Rice

Have of now come if First and different an solutions that you at year, we sort was of course point? to there maybe for or activity. going MSP, high back characterize been out the maybe chatter were something try going worked would a vendor-neutral wanting how to contracting, and business back all, you at number they to maybe going at look about this look to try lot through to accelerated they it's has last people customers' contracts of but post-pandemic of different churn had go they maybe contracting some have just of were unusually to to to customer in-sourcing. up, people normal About been that approach satisfied of Or and desire RFPs? that something

Caroline Grace

thing look at created take that in are they hiatus supply I'd that a expect help that really say almost I'd kind build workforce we're constrained. what a new of the to labor if of last watermark higher at probably as, I models to be a kind The it this that bit them environment RFPs, pandemic did to going from you clients looking to a have seeing approach is little during continue year. of

portfolio the of about, is solutions a the capabilities. there's conversations of get excited tech given those so And especially and our on what enablement we focus very lot

And rolled live so that out and our technology with that. last enables on year float clients we as pools we internal talk went to automated clients,

high the on sustainable interest how more can really even both you solutions, that's automated. And much and next a the and with build generation do around those solutions so work to more we about think of there's I of think that I on interest as cost margin, workforce maybe types quality, A.J., effective

Albert Rice

did expectations it around Have trending? travel supply rates just that coming updated that seen Are wash new maybe thoughts that basis recruits most are travel on in the a point, on doing rightly with lot this nursing? pay But a where the temporary of at his how any line so. you is the people the pandemic sort out, you nursing? is? people focus and to market of know on I gotten on and of Okay. Has seeing demand

Caroline Grace

Yes.

remain overall, If levels. you pre-pandemic new above applications look

can you that say, as, commentary supply. look So at on I'd general a

You're going to find pockets.

We of in Allied. certain have this specialties

I'd We say, the market to you're have have physician demand where than it, across going supply. more

the lifestyle, If pay. talk look I'll almost travel. Travel just XX,XXX they was around Nurse, we the to that and said around wasn't nurses at specifically a group, look wanted And you do at of survey, manage psychology well-being. it survey. single-digit And percentage necessarily you if It high ability to that to there's core for

so that think core doing largely see some I I the arise group, were the pandemic, that think and who strong There both need may travel seen have interest And come roles. continue you've also we the in in back. normalize at pay service that nurses to and as

Jeffrey Knudson

the pay just I when to bill and lesser what's A.J., the quarter on first of within Nurse a -- A.J., that Allied a margin, package, spread gross Allied relative are international very is in nurse for pay question, compared we're and your on we to to Allied on stable. It's seeing shift other the quarter second extent, to away particularly retrogression, the Nurse are causing and margins Allied gross margins. the bill-pay sequential would from gross mix pressure quarter-over-quarter the the due say, with and elements putting rates the really rates the hours, impact of the and along travel Nurse in at on QX pressure look reduction visa some housing

Operator

Tanquilut Brian our comes And next from Jefferies. question of

Brian Tanquilut

of wanted some Maybe far. to the reconcile comments so just I

So that but probably -- hear, the bottom reliance of are bottom, away Cary, is about couple smaller of on probably clients your the how quarters a is they're your what from seeing reducing I'm June saying their comments temp. hearing them I also

that right about thinking there carryover further it QX? QX to we So right, be -- carry just revenue should mean, but I be curious, or versus declines think as is guidance, think in impact without could for

Jeffrey Knudson

saying we that That's think bottom, were right, saying QX don't the I Brian. mean that it's the was second we for I low within the point are quarter. June

And single-digit average we be modest QX bill that low that have about over We QX. decreases also would travelers expect assignment in will XX% quarter. below for rate on the have the so entire the some

Brian Tanquilut

Got it.

Okay. we technology thinking of about business, question, I Allied. anything need Nurse of that, think But my the to as is maybe that next that obviously, services the is And be we outside about to then the VMS of performance and there for and translation side, model side tied the in as QX QX?

Jeffrey Knudson

Brian. No. really the would year, the of line expect remainder grow that to with continue in rate the to We QX growth for

Operator

our And BMO Jeff comes question next from of Silber Capital Markets.

Jeffrey Silber

quarter, us within rates into go that is between that? the Just and just wanted volumes guidance give to it some bill revenue to, the second numbers possible guidance. The the for again, come back of to some color

Jeffrey Knudson

will then for needs that within Yes, with when second and Allied single will the rolling compared Nurse to off digits down sure, our Jeff. down in the over line low Bill the low be winner double-digit volume be And quarter. clinicians in that those segment expectations and given the will range orders Allied rates in be Nurse QX. QX QX

Jeffrey Silber

down. had limits? perspective. expect visa of reopening mentioned from Just they are does that? any you any do the international those And then When writing in change, When some this an issues And you anniversaried?

Jeffrey Knudson

would degree to not which continue would lead see sequential as but and XX really any remainder remainder year, business to as well, through be No absent declines quarter-over-quarter to in low that the to move the basis. intervention, the over we and fourth be we of the XX percentage change a quarter of on point, will for the expect the the down same year

Caroline Grace

would really, potentially. do the they back expect, that in of start a change there start trending where updates Jeff, if bulletins year, seeing towards be more going that we to the would it would And some year. We throughout was the of the

Jeffrey Silber

election other into a broader I just We're call talk some then not be your season, And the impact about I if And might some, that states But there's not what are there some change a any in from as are overriding specific much there may out there, but business. necessarily from just going on? picture, changes environment there we federal be maybe administration? can know industries. any like as maybe heading see you political question. a regulations know where big to do

Caroline Grace

it highly be that. would think the state a a of standpoint, I I for some seeing What regulated it's from -- to say space. you're continue would We

if material know we we really intermediate us, a of national on for change state professionals the happen need on envision care as affiliation. over it level, state would term for demand that's what a look political going the health at don't is to by long to regardless I And So any happens. depending

to ensure the all And need. work clients closely so very with data we with and facts we're they our them help that supporting

Operator

Truist And our next Sommer Securities. of comes from question Tobey

Tobey Sommer

math, ask growing see existing businesses. in a when to Nurse approximately XQ, the that And decline. to that equivalent point the question, into Will businesses as get the XQ to in the we year, a based are wanted where I XQ. kind on and work happening? half the you back trends so, if my of it's do sort of perspective from Travel By early associated are you a revenue businesses of

Jeffrey Knudson

the our and half even in to I back think level a Allied be and segment Nurse year. Tobey, level, segment would segment -- of the continue From largest from a

Tobey Sommer

I'm disaggregating detail in underneath segments. with actually businesses provide the it Yes. you that the the

Jeffrey Knudson

Just Nurse? at Travel looking

Tobey Sommer

that are the TWS, decline, associated that Travel The Nurse et so revenues businesses cetera. in influence with

Jeffrey Knudson

if in they be Nurse, you I the think but our Travel and wouldn't would entire they other outpace continue And then segment. business. outpace take would the Travel to Allied Nurse segments largest Nurse even X entirety, to were

Tobey Sommer

experienced by do the declines modalities revenue occur on said mix Or growing segment specialties? in Has shift kind see have can The a Okay. in the basis that those declines growing growth business? you of decline? adjusted sufficiently can are that specialty you the before Allied mix you still Allied influenced that to you've drive trend and that the to-date the modalities needs a greater

Jeffrey Knudson

Yes.

Allied comparisons year-over-year year, basis. back the probably we but the half a Allied growth 'XX I you'll think would it for before improved, the within see we would as move be on of year-over-year into see through

Tobey Sommer

to I'm company in And until clients Nurse is going while, with view the doesn't on sales matter your Travel broad force know -- bottoms. hadn't institutional perspective the for expectation had But maybe kind And have for do then a Cary, me. just the retake share an able multiyear you curious firm engaging to of about sort with an and question market the trends. that reestablishing the I be some a who market last dialogue from that share of staffing?

Caroline Grace

Yes.

So answer is the yes. short

progress you the look If the pandemic, that ourselves have really we Tobey, the market. against entirety of at, made around post pitching

of signs We early seeing are success.

down our standpoint, half is closed sales MSP we where standpoint, from sales a the during largely pandemic really vendor of almost neutral and field from ] so our on And been sales even pipeline in focused a have clients. [

comments. our You've seen one mentioned my us, opening and I in partners of

quarters, make we those of in us partnerships our seen the the during reestablish not couple had substantial around past progress emphasis You've pandemic. that been how

signs progress we that seeing in of us all biggest is industry-wide XXXX. on, success those overshadowed all to that really an being into Nurse. year the by expect of The are would Travel early throughout is So continue for than more just we demand and initiatives challenge reset already

we that the had. conversation So in you saw

successful market, We having us a this early we really as demand have Travel comes very solutions, to set back. around of for us have entire position us, fortunate outcomes reset. are certainly ourselves Nurse expect And again, pitching we the as goes that helps demand the to would we're diversified well which through industry-wide really, -- against a

Operator

Constantine Citizens comes Davides from Our JMP. of question next

Constantine Davides

is to of maybe some Or earlier a still of locum couple How locums. with separate of the follow-ups starting locums is a a opportunities? And help much questions. much engagement? maybe for up you very having compete sort Just scaled MSP-type franchise

Caroline Grace

in added the I having and market go already had certainly to capabilities MSPs. completely MSDR overall we locum more in had would our has to our addition positioning say capabilities that the ability that strengthened after the

success our existing early on are clients expanded also talking We around having to capabilities.

we add So us an and for have how nurse, for client locum's Allied, we if existing using who's capabilities. Nurse

can rollout as new vendor Allied position. management Flex, Locums the we nonclinical clinical support and system, ShiftWise generation and of as Nurse, with well our Importantly,

have and space. we done capabilities that things effectively competitively of number ourselves to a in our there's position that So enhance to ability

Constantine Davides

I of travel how know just for And kind those systems, are then terms contingent be some they sort it. lines? might in about larger of in business of along bifurcated where talked labor you give us and smaller of Got systems reducing your nursing towards progress Can sense book spend. you

Caroline Grace

smaller? and large Against

Constantine Davides

right. That's

Caroline Grace

of smallest. serve and serve also as health Think largest the we the systems, we it

the find you a the all or think, And MSP where some couple kind of clients One seeing are I start be so at you're they need of need think our a largest of you off And on majority have pieces of I then these you are at towards -- this have target, looking bit while going quarters, other clients lagged your typically to of X Constantine, when are. the clients, And bottom. to to X where is below largest that. some question see of their the growth equilibrium, of or there's find tend real who their to probably larger. the going see clients

depending And X on find really outcomes about the the different those so are monitoring. we're that there's But number could you those where a pieces. of conditions equilibrium

Operator

comes And question Bill from Sutherland of Benchmark our Company. The next

William Sutherland

seeing has lot I'm pretty been the activity education, On strong Have 'XX, hearing activity? you K-XX a year for the is been. contracting of 'XX

Jeffrey Knudson

Yes.

We have, Bill.

that first also the not clinicians -- than XX% growth think overall on-site from only and for the that quarter, continue. is me, us, through business quarter-over-quarter which And growth in us or to we excuse coming expect is XX% but teletherapy was faster growing would up rate. I that for year-over-year

William Sutherland

school look So see and the sustainable? kind that into you of can next here

Jeffrey Knudson

We it yes. would to, expect

William Sutherland

And Cary, of kind stewards you I'm But I'm great. curious the about thinking just why out I management turn thinking completely. I'm the about then, your that's have Yes, also on not right up. financial hospital how is now. condition do starting mean there. the now or interim improving to backdrop. interim's kicking up

Caroline Grace

bit interim experienced Nurse of that also business saw and what we you the of terms Travel and impacted in that think management cost seeing I same in the talking is search were we permanent still those in we're about businesses. type a

saw could hiring you on interim then hold you that happen off if So last an year. leader

backdrop clients again, look they're of of at against and standpoint, expectation -- a patient leadership think, continued standpoint. staffed the that of from macro our seeing go I a now the a from demand ensuring number increasing, you're back

Jeffrey Knudson

is volume was saw in improvement the trend just was that I business that that down we the even since seen time Bill, had XX% saw first us, on of But would I the second sequentially the an So 'XX. interim we within encouragingly year-over-year. say, half both price the say though we and would to the the stabilization quarter-over-quarter

Operator

our next Childress of Andre question Baird. comes And from

Andre Childress

range targeted if the now on XX%? among normalize so question below about also how follow-on just you about on could clients get clients to provide to levels MSP kind to how that X% targeted This is X some the levels, larger are like XX% have of some to clients more or lagging earlier to guys But levels? the Andre or is or reset many the other of or targeted have quarter they further clients targeted those for a Marcon. a Mark then levels. you And or go back sitting aren't comments first to a My had of those do the clients those from of much that MSP

Caroline Grace

organizations largest in really and I say, would we year, have happened last this our normalized go systems and later structure We've don't in workforce I I'd happening way at we in don't to, cases. What a start what's have know to the of their I that decisions say standpoint to from smaller about some a have and they're some or looking is say lead patient of saw going cases. number below a -- X% somebody demand they're just levels, goal we that and And workforce. targeted that. already that back their had and making some getting kind a targeted got structure than more clients some saw the saw we more the just how

because is coming talk we we've to of thing important that optimize off them the the clients again, we normalization about, labor think past their year. help total around contingent the I workforce seen against

on getting bill happened it be to what's in over the into also has the You're with year fully embedded period end where labor. normal been rises and really cost by heading expect into labor, happened contingent levels, a based rates loaded of permanent cost what's over premium we the to and there

me this getting back last So what's of to time little and it I'd the effective most conversation this year organization, for way different did than say, a the is, my kind looks year. staff bit to that

Andre Childress

improvements been then since you been as tech-enabled from of quick clients that's emphasis Great. among perspective, mentioned looking of of I a follow-up, lot mentioned you of And technology a and know, lot a And that, that's point solutions. a they're emphasis bigger point for you a a the big joined. as also Cary,

more you are inning in? about? you on are bit most modernization Or journey of of that are do little a a update provide you could What what that view So technology the you some an you of are on in terms where front? excited things

Caroline Grace

We starting innings. season kind guess which past generation ShiftWise in with now is have Flex, I the of and good gosh, a about Well, very delivered is what of VMS. I'll we over we're year, new baseball our that feel start

based our at of under has quarter, We almost rollout are very this the complete XX% well. with gone clients, spend that management end on

complete We end expect to the be year. the by the of majority

important the integrated talked earlier, pools can clinician support big I our current and into a ShiftWise very And our so to of, well so in internal we've prospects clients. base for as can like our as for clients Flex support both terms that we positive, float entire other also about been are mobile has that number and app capabilities it because a of

our internal the So done We the our back to increase We've time capture done then we the another we we've is with automation integration in validating into saw that And very capture of we've the while of made which list. talked as technology we our that's in the And more front reduced clinicians the AMN. brands we logo. terms an has our increased done amount order around for of client almost was by we're all our for top clinicians That to an to I of a be thing mobile our our are both but both rates offerings, ShiftWise led the number fill. both that that big stats and our from is our AMN, and And and operationally standpoint. a have as half. experience of achieved, called That we've that quarter-over-quarter, internal clinicians, already jobs. to work in app also breadth complete we of to of Flex a have satisfaction. of our a solutions our put a about and door is significant Passport able at we've pre-COVID, than us clients clinician progress all for for not quarter-over-quarter well ability and

make in to support tech-enabled clients progress continue of a to So a we our will lot way.

Operator

time. to showing no Cary I'm Grace it remarks. questions for closing further I'd like this back to turn at

Caroline Grace

work this AMN behalf tireless you everyone and of delivering all and at company, Nurses supporting our in a clinicians to members happy Month, We nurses, care. on and wish we of all you, fabulous operator. quality appreciate in team their thank Thank our our of your clients interest for AMN

Operator

today's may now This participating, disconnect. and conference call. for concludes Thank you you

AMN Healthcare Services (AMN) 9 May 242024 Q1 Earnings call transcript