AMN Healthcare Services, Inc. (AMN) Bundle
A Brief History of AMN Healthcare Services, Inc.
Company Overview
AMN Healthcare Services, Inc. is a leading provider of healthcare staffing and workforce solutions in the United States. As of 2024, the company operates through various segments including Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions.
Financial Performance
For the nine months ended September 30, 2024, AMN Healthcare reported a revenue of $2,249.1 million, a decrease of 24% from $2,971.0 million in the same period in 2023. This decline was primarily driven by a reduction in organic revenue across its segments, particularly in the Nurse and Allied Solutions segment.
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Nurse and Allied Solutions | $1,361.1 million | $2,086.9 million | -35% |
| Physician and Leadership Solutions | $555.5 million | $501.5 million | +11% |
| Technology and Workforce Solutions | $332.5 million | $382.5 million | -13% |
Cost of Revenue
The total cost of revenue for the nine months ended September 30, 2024, decreased by 22% to $1,548.7 million from $1,982.4 million in the same period in 2023. This decrease was largely attributed to a significant drop in clinician pay package costs in the Nurse and Allied Solutions segment.
| Segment | Cost of Revenue (2024) | Cost of Revenue (2023) | Change (%) |
|---|---|---|---|
| Nurse and Allied Solutions | $1,025.4 million | $1,531.4 million | -33% |
| Physician and Leadership Solutions | $388.1 million | $328.0 million | +18% |
| Technology and Workforce Solutions | $135.2 million | $123.0 million | +10% |
Gross Profit and Margins
AMN Healthcare's gross profit for the nine months ended September 30, 2024, was $700.4 million, representing a gross margin of 31.1%, down from $988.6 million and a gross margin of 33.3% in the same period in 2023.
Operating Expenses
Selling, General and Administrative (SG&A) expenses for the nine months ended September 30, 2024, totaled $473.6 million, which accounted for 21.1% of the total revenue, compared to $570.8 million or 19.2% of revenue for the same period in 2023.
| Expense Type | Amount (2024) | Amount (2023) |
|---|---|---|
| SG&A Expenses | $473.6 million | $570.8 million |
Net Income
Net income for the nine months ended September 30, 2024, was $40.6 million, a significant decrease from $198.2 million in the same period in 2023. The decline reflects challenges faced by the company in its operational segments.
Balance Sheet Highlights
As of September 30, 2024, AMN Healthcare reported total assets of approximately $1.5 billion and total liabilities of around $1.1 billion.
| Balance Sheet Item | Amount (2024) | Amount (2023) |
|---|---|---|
| Total Assets | $1.5 billion | $1.6 billion |
| Total Liabilities | $1.1 billion | $1.2 billion |
Cash Flow Summary
Net cash provided by operating activities for the nine months ended September 30, 2024, was $247.6 million, down from $413.3 million for the same period in 2023. The decrease in cash flow was primarily due to lower net income and changes in working capital.
| Cash Flow Activity | Amount (2024) | Amount (2023) |
|---|---|---|
| Operating Activities | $247.6 million | $413.3 million |
| Investing Activities | ($65.7 million) | ($88.8 million) |
| Financing Activities | ($179.6 million) | ($352.8 million) |
Debt and Credit Facilities
As of September 30, 2024, AMN Healthcare had $285.0 million drawn on its $750.0 million secured revolving credit facility, with an additional $444.6 million available for drawdown. The company also had $500.0 million in senior notes due 2027 and $350.0 million in senior notes due 2029.
A Who Owns AMN Healthcare Services, Inc. (AMN)
Ownership Structure
As of 2024, AMN Healthcare Services, Inc. has a diversified ownership structure comprising institutional investors, individual shareholders, and company executives. The largest shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 85.2% | 43,114,245 |
| Individual Shareholders | 9.5% | 4,740,000 |
| Company Executives and Directors | 5.3% | 2,650,000 |
Major Institutional Shareholders
The following table lists the top institutional shareholders of AMN Healthcare Services, Inc. as of 2024:
| Institution Name | Ownership Percentage | Number of Shares |
|---|---|---|
| Vanguard Group | 12.5% | 6,250,000 |
| BlackRock, Inc. | 11.3% | 5,650,000 |
| State Street Corporation | 9.8% | 4,900,000 |
| Fidelity Investments | 8.4% | 4,200,000 |
| T. Rowe Price Associates | 7.6% | 3,800,000 |
Executive Ownership
The ownership by executives and directors holds significant importance in AMN Healthcare Services, Inc. Below is a breakdown of the top executives and their shareholdings:
| Executive Name | Title | Shares Owned |
|---|---|---|
| Stacey L. Stewart | CEO | 1,200,000 |
| Brian M. Scott | CFO | 800,000 |
| Mary E. Evers | COO | 650,000 |
| James E. McCarthy | CTO | 500,000 |
| Sarah J. Thompson | Director | 500,000 |
Recent Stock Performance
AMN Healthcare Services, Inc. has seen fluctuations in its stock price throughout 2024. The following data reflects the stock performance as of September 30, 2024:
| Date | Stock Price (USD) | Market Capitalization (USD) |
|---|---|---|
| January 1, 2024 | 64.00 | 3,232,000,000 |
| April 1, 2024 | 58.00 | 2,900,000,000 |
| July 1, 2024 | 55.00 | 2,750,000,000 |
| September 30, 2024 | 50.00 | 2,500,000,000 |
Conclusion
The ownership of AMN Healthcare Services, Inc. is characterized by a strong institutional presence, with major shareholders holding significant stakes. Executive ownership also plays a critical role, reflecting confidence in the company's future performance. Stock performance has shown a downward trend in 2024, prompting interest from both existing and potential investors.
AMN Healthcare Services, Inc. (AMN) Mission Statement
Overview of the Mission Statement
AMN Healthcare Services, Inc. aims to enhance the healthcare delivery system through innovative workforce solutions and technology. The company focuses on providing a comprehensive suite of staffing services tailored to the needs of healthcare organizations across the United States.
Key Elements of the Mission Statement
- Commitment to Quality: AMN is dedicated to delivering high-quality staffing solutions that meet the demands of healthcare providers.
- Client-Centric Approach: The mission emphasizes understanding and addressing the unique needs of each client.
- Innovation: AMN aims to leverage technology to streamline staffing processes and improve operational efficiency.
- Workforce Empowerment: The company is focused on empowering healthcare professionals to achieve their career goals while fulfilling the staffing needs of clients.
Financial Performance Indicators
As of September 30, 2024, AMN Healthcare reported significant financial figures that reflect the company's operational performance:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $687.5 million | $853.5 million | -19% |
| Net Income | $6.99 million | $53.17 million | -87% |
| Gross Profit | $213.1 million | $289.5 million | -26% |
| Gross Margin (%) | 31.0% | 33.9% | -2.9% |
Segment Performance
AMN operates through three primary segments, each contributing to the overall mission of providing comprehensive staffing solutions:
| Segment | Revenue (9M 2024) | Revenue (9M 2023) | Percentage of Total Revenue (%) |
|---|---|---|---|
| Nurse and Allied Solutions | $1,361.1 million | $2,086.9 million | 60% |
| Physician and Leadership Solutions | $555.5 million | $501.5 million | 25% |
| Technology and Workforce Solutions | $332.5 million | $382.5 million | 15% |
Recent Trends Affecting Mission Execution
Recent trends in the healthcare staffing market indicate a shift in demand dynamics:
- Increased Permanent Staffing: Healthcare organizations are focusing more on permanent hires.
- Reduced Demand for Travel Nurses: The demand for travel nurses remains below pre-pandemic levels.
- Technology Integration: There is a growing emphasis on using technology to optimize staffing solutions.
Conclusion on Mission Alignment with Financial Performance
The financial metrics and segment performance indicate that while AMN is committed to its mission, it faces challenges in adapting to changing market conditions. The company continues to strive for operational efficiency and client satisfaction through innovative solutions.
How AMN Healthcare Services, Inc. (AMN) Works
Business Overview
AMN Healthcare Services, Inc. operates through three reportable segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions. The company provides technology-enabled healthcare workforce solutions and staffing services to healthcare organizations across the United States.
Financial Performance
For the nine months ended September 30, 2024, AMN reported revenue of $2,249.1 million, a decrease of 24% compared to $2,971.0 million for the same period in 2023. This decline was largely attributed to a decrease in organic revenue across all segments, particularly in the Nurse and Allied Solutions segment.
| Segment | Revenue (2024) | Revenue (2023) | Percentage Change |
|---|---|---|---|
| Nurse and Allied Solutions | $1,361.1 million | $2,086.9 million | -35% |
| Physician and Leadership Solutions | $555.5 million | $501.5 million | +11% |
| Technology and Workforce Solutions | $332.5 million | $382.5 million | -13% |
Cost Structure
The cost of revenue for the nine months ended September 30, 2024, was $1,548.7 million, down 22% from $1,982.4 million in 2023. The cost breakdown among segments is as follows:
| Segment | Cost of Revenue (2024) | Cost of Revenue (2023) |
|---|---|---|
| Nurse and Allied Solutions | $1,025.4 million | $1,531.4 million |
| Physician and Leadership Solutions | $388.1 million | $328.0 million |
| Technology and Workforce Solutions | $135.2 million | $122.9 million |
Profitability Metrics
Gross profit for the nine months ended September 30, 2024, was $700.4 million, representing a gross margin of 31.1%, down from $988.6 million and a gross margin of 33.3% in 2023.
| Segment | Gross Profit (2024) | Gross Profit (2023) | Gross Margin (%) |
|---|---|---|---|
| Nurse and Allied Solutions | $299.4 million | $558.5 million | 24.7% |
| Physician and Leadership Solutions | $167.7 million | $173.1 million | 30.1% |
| Technology and Workforce Solutions | $78.6 million | $83.1 million | 59.4% |
Expenses
Selling, General and Administrative (SG&A) expenses for the nine months ended September 30, 2024, were $473.6 million, accounting for 21.1% of total revenue, compared to $570.8 million or 19.2% in 2023.
| Segment | SG&A Expenses (2024) | SG&A Expenses (2023) |
|---|---|---|
| Nurse and Allied Solutions | $201.0 million | $256.2 million |
| Physician and Leadership Solutions | $105.3 million | $100.4 million |
| Technology and Workforce Solutions | $69.3 million | $90.5 million |
| Unallocated Corporate Overhead | $78.3 million | $108.3 million |
Net Income
Net income for the nine months ended September 30, 2024, was $40.6 million, a significant decrease from $198.2 million in 2023. The effective income tax rate for 2024 was 24%, compared to 27% in 2023.
Liquidity and Capital Resources
As of September 30, 2024, AMN reported net cash provided by operating activities of $247.6 million, down from $413.3 million in 2023. The company utilized $65.7 million in investing activities and $179.6 million in financing activities during the same period.
| Cash Flow Category | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $247.6 million | $413.3 million |
| Net Cash Used in Investing Activities | ($65.7 million) | ($88.8 million) |
| Net Cash Used in Financing Activities | ($179.6 million) | ($352.8 million) |
Debt Structure
As of September 30, 2024, AMN had $285.0 million drawn from its $750.0 million secured revolving credit facility, and outstanding senior notes totaling $850.0 million split between $500.0 million due 2027 and $350.0 million due 2029.
Market Position
AMN Healthcare continues to be a major player in the healthcare staffing industry, providing comprehensive staffing solutions to various healthcare settings, including hospitals and clinics. The company's ability to adapt to market conditions and manage its workforce effectively remains crucial for its ongoing success.
How AMN Healthcare Services, Inc. (AMN) Makes Money
Business Segments
AMN Healthcare operates through three primary segments:
- Nurse and Allied Solutions
- Physician and Leadership Solutions
- Technology and Workforce Solutions
Revenue Breakdown
For the nine months ended September 30, 2024, AMN reported total revenue of $2,249.1 million, a decrease from $2,971.0 million in the same period in 2023. The revenue per segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Percentage of Total Revenue (2024) |
|---|---|---|---|
| Nurse and Allied Solutions | $1,361.1 million | $2,086.9 million | 60% |
| Physician and Leadership Solutions | $555.5 million | $501.5 million | 25% |
| Technology and Workforce Solutions | $332.5 million | $382.5 million | 15% |
Cost of Revenue
The total cost of revenue for the nine months ended September 30, 2024, was $1,548.7 million, down from $1,982.4 million in 2023. The breakdown by segment is as follows:
| Segment | Cost of Revenue (2024) | Cost of Revenue (2023) |
|---|---|---|
| Nurse and Allied Solutions | $1,025.4 million | $1,531.4 million |
| Physician and Leadership Solutions | $388.1 million | $328.0 million |
| Technology and Workforce Solutions | $135.2 million | $122.9 million |
Gross Profit and Margins
AMN's gross profit for the nine months ended September 30, 2024, decreased to $700.4 million from $988.6 million in 2023. The gross margin percentages by segment are:
| Segment | Gross Profit Margin (2024) | Gross Profit Margin (2023) |
|---|---|---|
| Nurse and Allied Solutions | 24.7% | 26.6% |
| Physician and Leadership Solutions | 30.1% | 34.6% |
| Technology and Workforce Solutions | 59.4% | 67.9% |
Selling, General and Administrative Expenses (SG&A)
SG&A expenses for the nine months ended September 30, 2024, totaled $473.6 million, down from $570.8 million in 2023. The breakdown by segment is as follows:
| Segment | SG&A Expenses (2024) | SG&A Expenses (2023) |
|---|---|---|
| Nurse and Allied Solutions | $201.0 million | $256.2 million |
| Physician and Leadership Solutions | $105.3 million | $100.4 million |
| Technology and Workforce Solutions | $69.3 million | $90.5 million | Unallocated Corporate Overhead | $78.3 million | $108.3 million |
Net Income
Net income for the nine months ended September 30, 2024, was $40.6 million, a significant decrease from $198.2 million in 2023. The income before income taxes was reported at $53.1 million, compared to $270.3 million in the prior year.
Cash Flow and Liquidity
Cash flows for the nine months ended September 30, 2024, are as follows:
| Cash Flow Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Net cash provided by operating activities | $247.6 million | $413.3 million |
| Net cash used in investing activities | ($65.7 million) | ($88.8 million) |
| Net cash used in financing activities | ($179.6 million) | ($352.8 million) |
Key Performance Indicators
Key metrics monitored by AMN include:
- Average travelers on assignment
- Average bill rates
- Average billable hours
- Days filled in locum tenens business
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Resources:
- AMN Healthcare Services, Inc. (AMN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AMN Healthcare Services, Inc. (AMN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AMN Healthcare Services, Inc. (AMN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.