The Innovator in Healthcare Workforce Solutions and Staffing Services
AMN Healthcare Investor Presentation
Q2 2015
Forward-Looking Statements
This investor presentation contains
“forward-looking statements” within the
meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as
amended. The Company bases these
forward-looking statements on its current
beliefs, expectations, estimates, forecasts
and projections about future events and the
industry in which it operates. Forward-
looking statements are identified by words
such as “believe,” “anticipate,” “expect,”
“intend,” “plan,” “will,” “should,” “would,”
“project,” “may,” variations of such words
and other similar expressions. In addition,
statements that refer to performance; plans,
objectives and strategies for future
operations; and other characterizations of
future events or circumstances, are forward-
looking statements.
The Company’s actual results could differ
materially from those discussed in, or
implied by, these forward-looking
statements. Factors that could cause
actual results to differ from those discussed
in or implied by the forward-looking
statements contained in this presentation
are set forth in the Company's Annual
Report on Form 10-K for the year ended
December 31, 2014 and its quarterly and
other periodic reports, its current reports
and its other filings with the SEC.
Developments subsequent to this
presentation are likely to cause these
statements to become outdated with the
passage of time. This presentation was first
made publicly available at
www.amnhealthcare.com on September 8,
2015.
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Key Investor Highlights
• Market leader in healthcare staffing and physician search
• Innovator in healthcare workforce solutions: MSP, VMS, RPO, Consulting
• Successfully completed majority of integration activities: Onward Healthcare, Locum Leaders, Medefis, Avantas
• Strong demand environment; double-digit organic revenue growth
• Long-term growth supported by aging population, clinical labor shortage
• Scalable, efficient operating model
• Strong cash flow and balance sheet
AMN Integrated Solutions Drive Workforce Optimization
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Recruitment & Staffing ServicesNurse & Allied StaffingLocum TenensPhysician Permanent PlacementHealthcare Executive Search
Workforce OptimizationWorkforce planningPredictive analytics & forecasting
Workforce Solutions & TechnologyManaged Services (MSP)Vendor Management Systems (VMS)Recruitment Process Outsourcing (RPO)Enterprise scheduling
AMN Staffing and Recruitment Offerings
• All nursing specialties• Physical therapists, respiratory,
imaging, lab technologists• Pharmacists and techs
• Temporary physician staffing• Dentistry staffing• MSP, VMS, Locums Billing
• Retained physician search• Contingent search
Nurse and Allied Staffing Locum Tenens Physician Placement
Source: Revenue mix is Q2 2015; earnings release
of revenues68% of revenues28% of revenues4%
• Travel staffing• Local staffing• MSP, VMS, RPO, EMR staffing• Workforce consulting
• All physician specialties• Advanced practice specialties
• All physician specialties• Healthcare executive search• Research & surveys
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Bolstering Staffing Capabilities
Expanding Workforce Solutions
Recent Acquisitions
Premier national travel nurse and allied staffing company
Leading provider of workforce consulting, labor optimization &
planning, data analytics, predictive modeling, scheduling technology
Leading provider of vendor management system technology
Well-respected national locum tenens staffing company
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Market Overview
Source: US Staffing Industry Forecast, Staffing Industry Analysts, April 2015. Internal estimates
U.S. Temporary Healthcare Staffing
2016P
$12billion
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~$2billion
Other Addressable Markets: (Perm Placement, RPO,
Workforce Consulting, VMS)
Demand Drivers
• Increased healthcare utilization
• Shortage of clinician & physicians
• Adoption of outsourced solutions
• Aging population & medical advances
• New emerging clinical roles
• Growth in GDP & employment rate
5 Million More Healthcare Jobs
Fast GrowingHealthcare Jobs
Growth in Healthcare Employment
Source: Bureau of Labor Statistics, December 2013; BLS Occupational Outlook Handbook January 2014; Job growth is projected from 2012 to 2022.
NursePractitioners
RegisteredNurses
PhysicianAssistants
PhysicalTherapists
Physicians
2012: 17 million
2022: 22 million
38% 36% 34% 18%19%
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Healthcare Reform
$7.4 billion less uncompensated
care
16.9 millionmore insured
Aging Healthcare Professionals
Wave of Baby Boomer retirements coming~ 50% of RNs and physicians are age 50+
Annual Growth in Healthcare Spend Aging Population and Healthcare Utilization
Drivers of Healthcare Employment Growth
Source: As of February 2015, 16.9 million adults have gained insurance coverage since 2010 due to ACA provisions, Health Affairs/RAND Health study, A.J. Rice, UBS analyst report, May 15, 2015. US Department HHS March 23, 2015. National Council of State Boards of Nursing and The Forum of State Nursing Workforce Centers – 2013 data. AMA Physician Master File and 2012 Physicians Foundation Survey conducted by Merritt Hawkins – 2012 data. National Health Expenditure Projections – CMS, October 2014.
• Over 65 - 3x more hospital stays
• Over 75 - 4x more hospital stays
2016–2023P
3.6%
5.6%6.0%
2013 2010 2015 2020 2025 2030Source: U.S. Department of Health and Human Services
2015P
6.0%5.6%
3.6%
40
72
U.S. population aged 65+in millions
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% reporting moderate or serious shortage of thefollowing healthcare professionals:
Projected healthcare labor shortage in 2025
% reporting somewhat or very difficult to recruit the following healthcare professionals:
Average vacancy rate at your facility for thefollowing healthcare professionals:
Emerging Talent Shortage
Source: AMN Healthcare 2013 Clinical Workforce Survey of Hospital Leaders; Association of American Medical Colleges, March 2015; Future of the Nursing Workforce, Health Resources and Services Administration December 2014
Physicians Nurses AlliedNPs/PAs Physicians Nurses AlliedNPs/PAs
Physicians Nurses AlliedNPs/PAs
90,400 physician shortage
18% 17% 15% 13%
78%
67%
51%43%
70%
40%36% 32%
Regional & specialty nurse shortages
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Leader in Managed Services Programs (MSP)
• Outsourced partner to manage all supplemental workforce needs under one client contract
• Recruitment, credentialing, clinical support, reporting, consolidated invoicing
$600 Million+ Annualized MSP Spend Under Management
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500+ affiliates
Fill rates
Clinician quality
Efficiency
Staffing optimization
Controlled spend
Accountability
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Leader in Vendor Management Systems (VMS)
Automates temporary and float pool staffing through
online order and fulfillment, scheduling, credential tracking, time keeping,
reporting, invoicing
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Fill rates
Clinician quality
Efficiency
Staffing optimization
Controlled spend
$600 Million+ Annualized VMS Spend Under Management
Leader in Recruitment Process Outsourcing (RPO)
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Outsourced partner to manage all recruitment, hiring, and on-boarding processes for clinician permanent
positions
Recruitment savings & productivity
Variable cost, flexible delivery model
State-of-the-art sourcing
Better decision making through data & insights
Fewer bad hires & lost candidates
Leader in Workforce Optimization: Predictive Analytics & Forecasting
Typical savings: 4% to 7% of nurse labor
spendNurse labor spend
% of budget
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25%
Workforce predictive analytics
Centralized resource management
Scheduling technology & tools
Operational review
Business intelligence
Diverse Client Base
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“AMN knows the national landscape. They know what’s out there and what the trends are. They bring that valuable information to us so that we can better plan as partners.”
- Chief Nursing Officer,Large Integrated Health System & AMN MSP Client
10% Adjusted EBITDA Margin Target
7.2%
9.8%
$1.222 B
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8.8%8.4%
7.7%
2012 2013 2014 LTM Q2 152011
$1.036 B$1.012 B
$954 M
Drivers
• Workforce solutions growth & penetration
• Operating leverage
• Gross margin improvement
$887 M
Growth in Revenue & Adj. EBITDA Margin
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Financial Metric Q2 2015Variance to
Q2 2014Variance to
Q1 2015
Revenue $350.1 40% 7%
Gross profit $110.1 43% 9%
Gross margin 31.4% 60 bps 40 bps
Selling, general and administrative $74.7 34% 4%
Adjusted EBITDA $39.4 69% 18%
Adjusted EBITDA margin 11.2% 190 bps 100 bps
Diluted EPS $0.32 113% 28%
Adjusted diluted EPS $0.38 81% 27%
Financial Highlights
$ in millions, except per share amounts
Source: Earnings release. Please also refer to Financial Reconciliation of non-GAAP metrics athttp://amnhealthcare.investorroom.com/financialreports.
Cash Flow Metrics Q2 2015
Operating cash flow $25
Capex $8
Balance Sheet Items 6/30/15
Cash and cash equivalents $14
Accounts receivable, net $230
Working capital $112
Total assets $826
Total debt outstanding $226
Stockholders’ equity $288
Balance Sheet Metrics 6/30/15
Working capital ratio 1.5
Leverage ratio 1.9
Financial Highlights
Source: Earnings release, earnings call
$ in millions
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Outlook
Source: Earnings release and earnings call on August 4, 2015. Guidance is not being updated or reaffirmed, and AHS does not intend to update guidance
prior to its next quarterly earnings release and earnings call.
Financial Metric Q3 2015
Revenue $360 to $365 million~ 37% yoy
Gross margin 31.0% to 31.5%
SG&A expenses* ~ 22.0%
Adjusted EBITDA margin 10.0% to 10.5%
Interest expense $2.0 million
Financial Metric 2015
Capital expenditures ~ $25 million
Effective tax rate 44%
Diluted share count 48.8 million
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* SG&A expenses included approximately $0.7 million of acquisition and integration costs
The Innovator in Healthcare Workforce Solutions and Staffing Services
Thank You
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