2017 Q2 Form 10-Q Financial Statement

#000114275017000010 Filed on August 04, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $489.8M $473.7M
YoY Change 3.39% 35.3%
Cost Of Revenue $328.8M $319.0M
YoY Change 3.08% 32.89%
Gross Profit $161.0M $154.8M
YoY Change 4.04% 40.53%
Gross Profit Margin 32.87% 32.67%
Selling, General & Admin $96.67M $99.54M
YoY Change -2.88% 33.21%
% of Gross Profit 60.04% 64.32%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $7.959M $7.334M
YoY Change 8.52% 40.18%
% of Gross Profit 4.94% 4.74%
Operating Expenses $104.6M $106.9M
YoY Change -2.1% 33.66%
Operating Profit $56.38M $47.88M
YoY Change 17.76% 58.75%
Interest Expense $4.928M $2.800M
YoY Change 76.0% 41.63%
% of Operating Profit 8.74% 5.85%
Other Income/Expense, Net -$300.0K $400.0K
YoY Change -175.0% -1023545369857030.0%
Pretax Income $51.45M $45.08M
YoY Change 14.14% 59.95%
Income Tax $20.20M $18.76M
% Of Pretax Income 39.25% 41.61%
Net Earnings $31.26M $26.32M
YoY Change 18.74% 65.86%
Net Earnings / Revenue 6.38% 5.56%
Basic Earnings Per Share $0.65 $0.55
Diluted Earnings Per Share $0.63 $0.53
COMMON SHARES
Basic Shares Outstanding 47.92M shares 48.03M shares
Diluted Shares Outstanding 49.48M shares 49.35M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $22.90M $21.10M
YoY Change 8.53% 45.52%
Cash & Equivalents $22.88M $21.06M
Short-Term Investments
Other Short-Term Assets $29.79M $28.59M
YoY Change 4.19% -53.89%
Inventory $4.203B $3.974B
Prepaid Expenses $17.15M $15.75M
Receivables $334.6M $330.9M
Other Receivables $0.00 $1.000M
Total Short-Term Assets $441.0M $442.6M
YoY Change -0.35% 28.89%
LONG-TERM ASSETS
Property, Plant & Equipment $65.37M $56.58M
YoY Change 15.54% 35.93%
Goodwill $340.6M $342.8M
YoY Change -0.65% 73.74%
Intangibles $236.5M $255.2M
YoY Change -7.34% 44.25%
Long-Term Investments $4.941B $4.286B
YoY Change 15.28% -10.11%
Other Assets $71.59M $54.76M
YoY Change 30.74% 21.12%
Total Long-Term Assets $747.9M $737.9M
YoY Change 1.36% 52.84%
TOTAL ASSETS
Total Short-Term Assets $441.0M $442.6M
Total Long-Term Assets $747.9M $737.9M
Total Assets $1.189B $1.180B
YoY Change 0.72% 42.88%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $118.9M $132.0M
YoY Change -9.87% 29.91%
Accrued Expenses $41.33M $102.5M
YoY Change -59.68% 33.81%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $14.40M
YoY Change -100.0%
Long-Term Debt Due $18.10M $11.30M
YoY Change 60.18% 50.67%
Total Short-Term Liabilities $266.3M $301.6M
YoY Change -11.7% 30.21%
LONG-TERM LIABILITIES
Long-Term Debt $319.5M $360.5M
YoY Change -11.37% 91.15%
Other Long-Term Liabilities $82.30M $84.50M
YoY Change -2.6% 4.78%
Total Long-Term Liabilities $82.30M $84.50M
YoY Change -2.6% 4.78%
TOTAL LIABILITIES
Total Short-Term Liabilities $266.3M $301.6M
Total Long-Term Liabilities $82.30M $84.50M
Total Liabilities $680.5M $777.5M
YoY Change -12.48% 44.49%
SHAREHOLDERS EQUITY
Retained Earnings $72.93M -$43.98M
YoY Change -265.85% -70.68%
Common Stock $484.0K $480.0K
YoY Change 0.83% 0.84%
Preferred Stock
YoY Change
Treasury Stock (at cost) $13.59M
YoY Change
Treasury Stock Shares 453.0K shares
Shareholders Equity $508.5M $402.9M
YoY Change
Total Liabilities & Shareholders Equity $1.189B $1.180B
YoY Change 0.72% 42.88%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $31.26M $26.32M
YoY Change 18.74% 65.86%
Depreciation, Depletion And Amortization $7.959M $7.334M
YoY Change 8.52% 40.18%
Cash From Operating Activities $26.10M $20.10M
YoY Change 29.85% -19.6%
INVESTING ACTIVITIES
Capital Expenditures -$6.200M -$6.300M
YoY Change -1.59% -23.17%
Acquisitions
YoY Change
Other Investing Activities -$100.0K -$52.20M
YoY Change -99.81% 3915.38%
Cash From Investing Activities -$6.300M -$58.50M
YoY Change -89.23% 515.79%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -27.00M 36.20M
YoY Change -174.59% -387.3%
NET CHANGE
Cash From Operating Activities 26.10M 20.10M
Cash From Investing Activities -6.300M -58.50M
Cash From Financing Activities -27.00M 36.20M
Net Change In Cash -7.200M -2.200M
YoY Change 227.27% -175.86%
FREE CASH FLOW
Cash From Operating Activities $26.10M $20.10M
Capital Expenditures -$6.200M -$6.300M
Free Cash Flow $32.30M $26.40M
YoY Change 22.35% -20.48%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">BASIS OF PRESENTATION</font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The condensed consolidated balance sheets and related condensed consolidated statements of comprehensive income and cash flows contained in this Quarterly Report on Form&#160;10-Q (this &#8220;Quarterly Report&#8221;), which are unaudited, include the accounts of AMN&#160;Healthcare Services, Inc. and its wholly-owned subsidiaries (collectively, the &#8220;Company&#8221;). All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all entries necessary for a fair presentation of such unaudited condensed consolidated financial statements have been included. These entries consisted of all normal recurring items. The results of operations for the interim period are not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year or for any future period. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The unaudited condensed consolidated financial statements do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. Please refer to the Company&#8217;s audited consolidated financial statements and the related notes for the fiscal year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, contained in the Company&#8217;s Annual Report on Form 10-K for the fiscal year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, filed with the Securities and Exchange Commission on February 17, 2017 (&#8220;</font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;"> Annual Report&#8221;). </font></div><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to asset impairments, accruals for self-insurance, compensation and related benefits, accounts receivable, contingencies and litigation, earn-out liabilities, and income taxes. Actual results could differ from those estimates under different assumptions or conditions. </font></div><div style="line-height:120%;padding-top:12px;text-indent:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Recently Adopted Accounting Pronouncements</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2016, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) 2016-09,&#160;&#8220;Stock Compensation - Improvements to Employee Share-Based Payment Accounting.&#8221;&#160;The guidance attempts to simplify the accounting for share-based payment transactions in several areas, including the following: income tax consequences, classification of awards as either equity or liabilities, forfeitures, expected term, and statement of cash flows classification. The Company adopted this pronouncement prospectively beginning January 1, 2017. Accordingly, the prior period has not been adjusted and the primary effects of the adoption for the current period are as follows: </font></div><table cellpadding="0" cellspacing="0" style="padding-top:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company recorded </font><font style="font-family:inherit;font-size:10pt;">$1,028</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$5,325</font><font style="font-family:inherit;font-size:10pt;"> of tax benefits within income tax expense for the three and </font><font style="font-family:inherit;font-size:10pt;">six months ended June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, respectively, related to the excess tax benefit on share-based compensation. Prior to adoption, this amount would have been recorded as additional paid-in capital;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company continued to estimate the number of awards expected to be forfeited in accordance with its existing accounting policy, which is to estimate forfeitures when recording share-based compensation expense; </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share for the three and </font><font style="font-family:inherit;font-size:10pt;">six months ended June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">. The effect of this change on its diluted earnings per share was not significant;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For the </font><font style="font-family:inherit;font-size:10pt;">six months ended June 30, 2017</font><font style="font-family:inherit;font-size:10pt;">, cash flows related to excess tax benefits were classified as an operating activity. </font></div></td></tr></table><div style="line-height:120%;text-indent:30px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">There were no other material impacts to the Company's consolidated financial statements as a result of adopting this updated standard.</font></div></div>
us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:12px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to asset impairments, accruals for self-insurance, compensation and related benefits, accounts receivable, contingencies and litigation, earn-out liabilities, and income taxes. Actual results could differ from those estimates under different assumptions or conditions. </font></div></div>

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