Amn Healthcare Services Inc · NYSE:AMN
Amn Healthcare Services — 27th Annual J.P. Morgan Healthcare Conference (January 2009)
25 slides from Amn Healthcare Services's conference presentation, Jan 13, 2009
Slide 1: 27th Annual J.P. Morgan Healthcare Conference
Investor Presentation 27th Annual J.P. Morgan Healthcare Conference January 14, 2009
Slide 2: Forward Looking Statements
Forward Looking Statements This 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 based these forward-looking statements on its current expect
Slide 3: The AMN Opportunity
The AMN Opportunity Long-term industry leading results Diversified in most attractive service lines Leader in healthcare staffing industry Differentiated strategy – sales, business model, talent
Slide 4: The Leader in the Most Attractive Segments
Locum Tenens Perm Physician The Leader in the Most Attractive Segments Travel Nursing & Allied Market Size – 2009 E $2.1 B $280 M AMN Market Position #1 #1 #1 $6.1 B Source: Staffing Industry Analysts, internal estimates
Slide 5: Superior Performance Relative to Peers
Superior Performance Relative to Peers Source: Company Data, Factset
Slide 6: History of Profitability Through Economic Downturns
History of Profitability Through Economic Downturns Revenue and Margin Please refer to slide 25 for reconciliation of Adjusted EBITDA.
Slide 7: AMN's Successful Evolution of Business Model
AMN’s Successful Evolution of Business Model 1998 - 2005 Multi-Brand Nursing Strategy 1985-1998 One Nursing Brand Expansion into Physician Staffing and Allied Segments 2005 - present
Slide 8: Building a Stronger, More Diversified Company
Building a Stronger, More Diversified Company 31% 38% Revenues Adj. EBITDA Nursing & Allied Physician Staffing 100% $0.6B $1.2B 100% $43M $93M 69% 62% Please refer to slide 25 for reconciliation of Adjusted EBITDA.
Slide 9: Industry Growth Driven by Long Term Staffing Shortages
Industry Growth Driven by Long Term Staffing Shortages Nurse Shortage Physician Shortage Source: Health Resources and Services Administration, Sept. 2004; US Department of Health and Human Services, Spring 2003; Health Affairs , February 2002; Staffing Industry Analysts Macro drivers contributing to
Slide 10: Priorities for Healthcare Executives
Priorities for Healthcare Executives According to a recent poll, what did healthcare executives identify as their biggest challenge? a. Inadequate reimbursement b. Productivity management c. Rising insurance costs d. Severe staffing shortages Source: Quarterly Nurse Staffing Survey, March 2007, Nurs
Slide 11: Market Effects of Current Economic Environment
Market Effects of Current Economic Environment Client Impact (demand drivers) Reports of YOY hospital admission declines & lower surgical volumes in late 2008 High general unemployment reducing nurse & allied attrition rates Relative strength in primary care & behavioral health physicians Reductions
Slide 12: Market Effects of Current Economic Environment
Market Effects of Current Economic Environment Candidate Environment (supply drivers) Economic environment reduces propensity to travel Less assignment opportunities reduce attractiveness & rebook rates Candidates seeking short-term work because of being downsized Supply gained from smaller competit
Slide 13: Business Segment Current Dynamics
Business Segment Current Dynamics Nurse Staffing Travel nurse staffing orders down nationwide Candidate supply down, but sufficient Pricing and gross margins appear stable Good promise/results in new business offerings of ASCs, home health and RPO service offering Allied Staffing Therapy & imaging o
Slide 14: Business Segment Current Dynamics
Business Segment Current Dynamics Locum Tenens Primary care and behavioral healthcare divisions continue with double digit growth Improved performance in surgery and anesthesia Radiology continues to decline due to reimbursement changes New emerging markets (Dentistry) delivering strong growth Physi
Slide 15: Managing through an economic downturn
Managing through an economic downturn Grow market share across all businesses Market share gains achieved in nursing staffing in 2008 Modest pricing growth & preserve gross margins Redirect resources to growth/stable business units Locum Tenens & Physician Permanent Placement New services launched i
Slide 16: Potential cost structure adjustments
Potential cost structure adjustments Employee expenses Reductions in nurse staffing & corporate infrastructure Consolidation of departments/functions Jan 09 expect approximately 5% RIF Other discretionary operating expenses Communications, travel, advertising, office expenses Reduced CAPEX Reduced I
Slide 17: Geographically Diverse and Prestigious Clients
Less sensitive to regional variations Able to more quickly build volume during upturns Geographically Diverse and Prestigious Clients Texas Children’s Medical Center Tulane University Hospital Emory University Hospital HCA Florida Group Vanderbilt University Medical Center Georgetown University Hosp
Slide 18: AMN Healthcare – Best in Breed By Design
AMN Healthcare – Best in Breed By Design Strong Corporate Governance Seasoned Management Team Dedicated Employees Experienced, independent board Top 20-percentile Corporate Governance Quotient (CGQ®) Executive Team With The Best Track Record in the Industry 2,000 Employees Nationwide
Slide 19: New Business Growth Strategy
New Business Growth Strategy staffing additional specialties within our service lines Broadening Our Scope Dentistry Lab Techs offering staffing solutions to new types of clients Expanding Our Client Base Dentistry Ambulatory Centers Home Health Retail Pharmacy New Service Solutions expanding our cl
Slide 20: Continued Long-Term Growth Strategy
Continued Long-Term Growth Strategy Meet Revenue and EBITDA Goals Leverage Existing Capabilities Complement Core Staffing Business Develop a Sustainable Business Model Improve Shareholder Value In existing markets with sizable revenue base, providing attractive margins that will generate meaningful
Slide 21: Maintain Diligent Approach to Cash Flow and Leverage
8% 6% 12% Maintain Diligent Approach to Cash Flow and Leverage Cash Flow Use Priorities 1. Accumulate Cash 2. Accelerated Debt Payback 3. Opportunistic Acquisitions 4. Share Repurchase Leverage Ratio: 1.7x at September 30, 2008 Free Cash Flow $40 $45 $70 ($ millions, % Yield) Please refer to slide 2
Slide 22: Guidance
Guidance Note: Quarterly and annual guidance was issued on October 30, 2008, and is not being updated or reaffirmed. $0.20 - $.023 $0.22 - $0.25 $1.06 - $1.09 $0.99 - $1.02 Q4 2008 FY 2008 GAAP EPS Proforma EPS Please refer to slide 24 for reconciliation of proforma EPS. $295 - $300 million $1.22 bi
Slide 23: AM Novsiracans
AM Novsiracans
Slide 24: Exhibit 1: 2008 Projected Proforma EPS Reconciliation
Exhibit 1: 2008 Projected Proforma EPS Reconciliation * Proforma EPS represents GAAP EPS plus income tax adjustments, certain restructuring and legal expenses, and sales allowances. Management presents proforma EPS because it believes that proforma EPS is a useful supplement to net income as an indi
Slide 25: Exhibit 2: Reconciliation of Non-GAAP Items (unaudited)
Exhibit 2: Reconciliation of Non-GAAP Items (unaudited) (1) Adjusted EBITDA represents net income (loss) plus interest expense (net of interest income), income taxes, depreciation and amortization, stock-based compensation expense, transactions costs, and losses on extinguishment of debt. Management
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