AMN Healthcare Services, Inc. (AHS) has reported an 18.88 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $27.30 million, or $0.55 a share in the quarter, compared with $33.65 million, or $0.69 a share for the same period last year. On an adjusted basis, earnings per share were at $0.62 for the quarter compared with $0.48 in the same period last year.
Revenue during the quarter grew 23.45 percent to $472.64 million from $382.86 million in the previous year period. Gross margin for the quarter contracted 23 basis points over the previous year period to 32.68 percent. Total expenses were 90.12 percent of quarterly revenues, down from 90.18 percent for the same period last year. This has led to an improvement of 5 basis points in operating margin to 9.88 percent.
Operating income for the quarter was $46.68 million, compared with $37.61 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $58.05 million compared with $45.62 million in the prior year period. At the same time, adjusted EBITDA margin improved 37 basis points in the quarter to 12.28 percent from 11.92 percent in the last year period.
"The demand for healthcare professionals and workforce solutions is strong today and is expected to continue to grow as turnover and vacancies persist at historical high levels," said Susan R. Salka, president and chief executive officer of AMN Healthcare. "Our results this quarter reflect a positive market environment but are also a testament to the team's outstanding execution as we partner with our clients to help them manage their significant labor challenges and enable them to stay focused on delivering quality patient care. We are well positioned to offer strategic solutions to address these issues through our broad suite of services. The current demand levels, indicators of our clients' future needs and our leading market position provide us with optimism heading into 2017."
For the fourth-quarter 2016, AMN Healthcare Services, Inc. projects revenue to be in the range of $473 million to $479 million.
Operating cash flow improves significantly
AMN Healthcare Services, Inc. has generated cash of $84.82 million from operating activities during the nine month period, up 52.45 percent or $29.18 million, when compared with the last year period.
The company has spent $241.27 million cash to meet investing activities during the nine month period as against cash outgo of $105.63 million in the last year period.
Cash flow from financing activities was $162.42 million for the nine month period, up 216.67 percent or $111.13 million, when compared with the last year period.
Cash and cash equivalents stood at $15.71 million as on Sep. 30, 2016, up 9.02 percent or $1.30 million from $14.41 million on Sep. 30, 2015.
Working capital increases sharply
AMN Healthcare Services, Inc. has recorded an increase in the working capital over the last year. It stood at $193.58 million as at Sep. 30, 2016, up 62.86 percent or $74.71 million from $118.87 million on Sep. 30, 2015. Current ratio was at 1.81 as on Sep. 30, 2016, up from 1.48 on Sep. 30, 2015.
Days sales outstanding went down to 62 days for the quarter compared with 68 days for the same period last year.
At the same time, days payable outstanding went down to 32 days for the quarter from 38 for the same period last year.
Debt increases substantially
AMN Healthcare Services, Inc. has witnessed an increase in total debt over the last one year. It stood at $385.04 million as on Sep. 30, 2016, up 79.72 percent or $170.79 million from $214.25 million on Sep. 30, 2015. Total debt was 32.92 percent of total assets as on Sep. 30, 2016, compared with 24.76 percent on Sep. 30, 2015. Debt to equity ratio was at 0.89 as on Sep. 30, 2016, up from 0.66 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 15.48 for the quarter from 18.68 for the same period last year.
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