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The Innovator in Healthcare Workforce Solutions and Staffing Services
AMN Healthcare
Investor Presentation
Q3 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outdated with the passage of time.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
November 17, 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
• Latest acquisition activity: The First
String, Millican Solutions, B.E. Smith
• 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
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Staffing and
Recruitment
• Travel nursing
• Per Diem
• Locum tenens
• Allied health staffing
• Physician placement
• Rapid response and
crisis staffing
• International Nursing
• Mid- to senior level
leadership placement
• EMR implementation
Workforce Solutions
• Managed services
programs (MSP)
• Recruitment process
outsourcing (RPO)
• Vendor management
systems (VMS)
• Scheduling and Labor
Management
• Education services
• Float pool management
• Tele health - Pharmacy
Advisory Services
• Workforce analysis
and optimization
• Predictive modeling
and analytics
• Strategy consulting
• Financial & operational
performance
Improvement
• Regulatory compliance
• Labor disruption
AMN Workforce Solutions
Value through leadership, innovation and strategic insight
Executive
Leadership
• Interim leadership
• Executive search
• Physician leadership
search
• Nurse leadership search
-----------------------------------
• Executive coaching
• Leadership training and
Development
Bolstering Staffing Capabilities
Expanding Workforce Solutions
Recent Acquisitions
Premier national travel nurse and
allied staffing company
Leading provider of workforce consulting, labor
optimization, predictive data analytics,
scheduling technology
Leading provider of vendor
management system technology
Well-respected national locum
tenens staffing company
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Nurse leader recruitment, training
and development
Physician executive
recruitment
6
B.E. Smith Acquisition
Leading provider of interim healthcare
leadership, executive search and
advisory services.
• 2015 annualized rev: $100 million;
adj. EBITDA margin: 15%
• Purchase price: $160 million
• Immediately accretive to EPS
• Acquisition to close early-January
Market Overview
Source: US Healthcare Staffing Growth Assessment, Staffing Industry Analysts, October 28, 2015. Internal estimates
U.S. Temporary Healthcare Staffing
2016P
$14billion
7
~$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 & decline in
unemployment rate
5 Million More
Healthcare Jobs
Fast Growing
Healthcare 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.
Nurse
Practitioners
Registered
Nurses
Physician
Assistants
Physical
TherapistsPhysicians
2012: 17 million
2022: 22 million
38% 36% 34% 18%19%
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Healthcare Reform
$7.4 billion less uncompensated
care
16.4 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: HHS.gov as of November 9, 2015: 16.4 million adults have gained insurance coverage since 2010 due to ACA provisions; $7.4 bil lion less
uncompensated care in 2014. National Council of State Boards of Nursing and The Forum of State Nursing Workforce Centers – 2013 data. AMN Healthcare
survey, November 2015. 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 2030
Source: 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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~ 2/3 of RNs age 54+ plan to retire in next 3 years
% reporting moderate or serious shortage of the
following 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 the
following 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
$800 Million+ Annualized MSP Spend Under Management
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500+ affiliates
Fill rates
Clinician quality
Efficiency
Staffing optimization
Controlled spend
Accountability
11
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
$800 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
spend
Nurse labor spend
% of hospital budget
14
25%
Workforce predictive analytics
Centralized resource management
Scheduling technology & tools
Operational review
Business intelligence
Diverse Client Base
15
“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
Achievement of 10% Adj. EBITDA Margin Target
7.2%
10.7%
$1.340 B
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8.8%8.4%
7.7%
2012 2013 2014 LTM Q3 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 Q3 2015Variance to
Q3 2014
Variance to
Q2 2015
Revenue $382.9 45% 9%
Gross profit $126.0 57% 14%
Gross margin 32.9% 250 bps 150 bps
Selling, general and administrative $83.1 38% 11%
Adjusted EBITDA $45.6 109% 16%
Adjusted EBITDA margin 11.9% 370 bps 70 bps
Diluted EPS $0.69 283% 116%
Adjusted diluted EPS $0.48 140% 26%
Financial Highlights
$ in millions, except per share amounts
Source: Earnings release. Please also refer to Financial Reconciliation of non-GAAP metrics at
http://amnhealthcare.investorroom.com/financialreports.
Cash Flow Metrics Q3 2015
Operating cash flow $22
Capex $7
Balance Sheet Items 9/30/15
Cash and cash equivalents $14
Accounts receivable, net $249
Working capital $119
Total assets $865
Total debt outstanding $214
Stockholders’ equity $324
Balance Sheet Metrics 9/30/15
Working capital ratio 1.5
Leverage ratio 1.5
Financial Highlights
Source: Earnings release, earnings call
$ in millions
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Outlook
Source: Earnings release on November 4, 2015 and earnings call on November 5,
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 Q4 2015
Revenue$385 to $390 million
~ 39% yoy
Gross margin ~ 32.0%
SG&A expenses* 21.5% to 22.0%
Adjusted EBITDA margin 10.5% to 11.0%
Interest expense $2.0 million
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Reportable Segments
• 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
• Physician executive
recruitment
Nurse and Allied Staffing Locum Tenens Physician Placement
Source: Revenue mix is Q3 2015; earnings release
of revenues70% of revenues26% 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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The Innovator in Healthcare Workforce Solutions and Staffing Services
Thank You