2017 Q4 Form 10-Q Financial Statement

#000114275017000013 Filed on November 03, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q3
Revenue $509.1M $494.4M $472.6M
YoY Change 4.35% 4.61% 23.45%
Cost Of Revenue $347.0M $334.9M $318.2M
YoY Change 5.38% 5.25% 23.87%
Gross Profit $162.1M $159.5M $154.5M
YoY Change 2.2% 3.28% 22.58%
Gross Profit Margin 31.84% 32.27% 32.68%
Selling, General & Admin $100.4M $100.6M $100.0M
YoY Change -0.69% 0.58% 20.33%
% of Gross Profit 61.94% 63.04% 64.74%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $8.500M $8.132M $7.789M
YoY Change 10.39% 4.4% 46.85%
% of Gross Profit 5.24% 5.1% 5.04%
Operating Expenses $108.9M $108.7M $107.8M
YoY Change 0.09% 0.86% 21.92%
Operating Profit $53.19M $50.83M $46.68M
YoY Change 6.8% 8.88% 24.13%
Interest Expense -$4.800M $4.837M $3.016M
YoY Change -25.0% 60.38% 49.83%
% of Operating Profit -9.02% 9.52% 6.46%
Other Income/Expense, Net $100.0K
YoY Change -50.0%
Pretax Income $48.40M $45.99M $43.67M
YoY Change 11.52% 5.32% 22.68%
Income Tax $21.30M $17.86M $16.37M
% Of Pretax Income 44.01% 38.84% 37.49%
Net Earnings $41.17M $28.13M $27.30M
YoY Change 56.23% 3.05% -18.88%
Net Earnings / Revenue 8.09% 5.69% 5.78%
Basic Earnings Per Share $0.86 $0.59 $0.57
Diluted Earnings Per Share $0.84 $0.57 $0.55
COMMON SHARES
Basic Shares Outstanding 47.77M shares 47.91M shares 48.05M shares
Diluted Shares Outstanding 49.45M shares 49.41M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $15.10M $19.60M $15.70M
YoY Change 42.45% 24.84% 9.03%
Cash & Equivalents $15.15M $19.63M $15.71M
Short-Term Investments
Other Short-Term Assets $50.99M $26.22M $30.71M
YoY Change 47.35% -14.61% 22.45%
Inventory $3.471B
Prepaid Expenses $16.51M $15.83M $13.93M
Receivables $350.5M $343.6M $331.2M
Other Receivables $15.90M $0.00 $300.0K
Total Short-Term Assets $474.2M $442.5M $433.7M
YoY Change 5.22% 2.03% 17.53%
LONG-TERM ASSETS
Property, Plant & Equipment $73.43M $68.19M $57.97M
YoY Change 22.48% 17.64% 27.66%
Goodwill $340.6M $340.6M $342.2M
YoY Change -0.34% -0.46% 69.86%
Intangibles $227.1M $231.8M $250.5M
YoY Change -7.58% -7.45% 41.22%
Long-Term Investments $5.115B
YoY Change 4.24%
Other Assets $74.37M $73.96M $57.30M
YoY Change 29.26% 29.09% 22.86%
Total Long-Term Assets $779.8M $748.9M $736.1M
YoY Change 5.92% 1.74% 48.33%
TOTAL ASSETS
Total Short-Term Assets $474.2M $442.5M $433.7M
Total Long-Term Assets $779.8M $748.9M $736.1M
Total Assets $1.254B $1.191B $1.170B
YoY Change 5.65% 1.85% 35.2%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $130.3M $117.9M $118.3M
YoY Change -5.23% -0.3% 4.54%
Accrued Expenses $29.24M $45.69M $99.60M
YoY Change -21.51% -54.13% 12.54%
Deferred Revenue $8.384M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $0.00 $0.00 $3.800M
YoY Change -100.0% -100.0% -49.33%
Total Short-Term Liabilities $265.3M $245.0M $240.1M
YoY Change -3.46% 2.04% -4.01%
LONG-TERM LIABILITIES
Long-Term Debt $319.8M $319.7M $381.3M
YoY Change -10.97% -16.16% 115.67%
Other Long-Term Liabilities $79.28M $82.67M $86.95M
YoY Change -3.43% -4.92% 15.3%
Total Long-Term Liabilities $79.28M $82.67M $86.95M
YoY Change -3.43% -4.92% 15.3%
TOTAL LIABILITIES
Total Short-Term Liabilities $265.3M $245.0M $240.1M
Total Long-Term Liabilities $79.28M $82.67M $86.95M
Total Liabilities $691.4M $659.2M $736.6M
YoY Change -6.25% -10.51% 36.09%
SHAREHOLDERS EQUITY
Retained Earnings $142.2M $101.1M -$16.68M
YoY Change 1370.68% -705.92% -85.66%
Common Stock $484.0K $484.0K $480.0K
YoY Change 0.62% 0.83% 0.63%
Preferred Stock
YoY Change
Treasury Stock (at cost) $33.43M $20.36M
YoY Change 152.05%
Treasury Stock Shares 930.0K shares 630.0K shares
Shareholders Equity $562.5M $532.2M $433.2M
YoY Change
Total Liabilities & Shareholders Equity $1.254B $1.191B $1.170B
YoY Change 5.65% 1.85% 35.2%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income $41.17M $28.13M $27.30M
YoY Change 56.23% 3.05% -18.88%
Depreciation, Depletion And Amortization $8.500M $8.132M $7.789M
YoY Change 10.39% 4.4% 46.85%
Cash From Operating Activities $58.40M $31.30M $29.50M
YoY Change 23.99% 6.1% 34.7%
INVESTING ACTIVITIES
Capital Expenditures -$9.300M -$5.500M -$4.800M
YoY Change 116.28% 14.58% -26.15%
Acquisitions
YoY Change
Other Investing Activities -$1.900M $1.000M -$3.300M
YoY Change -83.9% -130.3% -21.43%
Cash From Investing Activities -$11.40M -$4.400M -$8.100M
YoY Change -29.19% -45.68% -24.3%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -13.40M -24.90M -26.80M
YoY Change -62.88% -7.09% 137.17%
NET CHANGE
Cash From Operating Activities 58.40M 31.30M 29.50M
Cash From Investing Activities -11.40M -4.400M -8.100M
Cash From Financing Activities -13.40M -24.90M -26.80M
Net Change In Cash 33.60M 2.000M -5.400M
YoY Change -758.82% -137.04% 5300.0%
FREE CASH FLOW
Cash From Operating Activities $58.40M $31.30M $29.50M
Capital Expenditures -$9.300M -$5.500M -$4.800M
Free Cash Flow $67.70M $36.80M $34.30M
YoY Change 31.71% 7.29% 20.77%

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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;">$56</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$5,381</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;">nine months ended September 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;">nine months ended September 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; and</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;">nine months ended September 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
UseOfEstimates
<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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