AMN Healthcare Services (AMN) 3 Aug 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to AMN Healthcare Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].

that is advised recorded. be please today's being conference Finally,

go conference to your Director I Please like the of over Relations. Senior would now Reece, hand to Randy speaker Investor ahead. today,

statements. projections, AMN circumstances make Healthcare's afternoon, A of about during this following this webcast this call. Welcome constitute ir.amnhealthcare.com expectations, Good be at conclusion Second call replay available everyone. trends, will the XXXX or Earnings Quarter Various forward-looking plans, Call. events to of remarks future we

reflect current currently company's statements available to information These based upon the beliefs it.

statements with those and Our XX-K of actual the SEC. materially statements, our differ and results in including filings Forms filed XX-Q factors may our indicated most from by those recently identified earnings these forward-looking release various cautionary subsequent because and

guidance to forward-looking to does provided statements intend prior release. The company its not earnings or any next update today

financial release non-GAAP measures measures regarding certain earnings our to contains our at most ir.amnhealthcare.com. reconciliations non-GAAP are directly the call information. comparable GAAP financial reports and of in these page Information This on included and

and Leadership call Chief Allied Knudson, Landry of Executive Officer; Financial and Officer; Group the Taylor, today and Grace, President Chief James President of and Physician Seedig, Nursing are Solutions; Solutions. COO and Jeff On COO Cary

over I to will the now turn call Cary.

and everyone. Thank you, Randy, welcome,

Let our me the healthcare for begin of by expressing remarkable professionals members. efforts my gratitude and team

of the country. throughout and healthcare our empower quality You to improve access mission

workers. complex of the more labor value with we growing business the for have balancing need tools Healthcare AMN against demands supply stakeholders. than organizations the are and that powerful to short-term As the successfully in of faster of our done conditions needs is strategies pursuit deal long-term past,

and and address environment. dynamics investing all to future meet technology of needs, in solutions ramped internal these and We these bringing believe the in have market we healthcare our together. strongly investments To are current

XXX,XXX of assignment. our has now healthcare app, Our users Passport surpassed leading industry on professionals mobile and AMN engages most

medical X.X, to electronic been interpreters faster easier with VMS platform reception API has leading and medically services market has now record very environment Our connections ShiftWise that systems, and with our integration leading early language new our qualified the platform the moved total our enabling has toward labor favorable. a segment remained Allied In managing sector through healthcare Nurse as costs. normal slow near-term, a are the demand has we in for and Solutions

Overall demand on to as looking balance to ways harder to at regain is of try This as rebuild and staff. travel for cost have clients contingent nurse staffing accelerating a long-term well as as clients sustainable permanent year focused their has workforce. management short-term low been predict

for outlook Nurse and Our third consensus. quarter $XX revenue Allied than lower in approximately is million

through demand we we than contingent second large had MSP labor was As for quarter, clients assumed. progressed lower our from the

perm cost on to They with increased we permanent conversions proactively partnered management hiring the them and and temp their goals. overall of pace

We to MSP, offer operation, we our whether want, to it our led are the solutions is self-managed staffing position the clients. serve they have a neutral continuing MSP, organization vendor other way to clients many supporting or in

We rates this our have fill MSPs internal throughout on improved year.

our they that VMS workforce. continue clients their and them to be needs more exercise rebuild client individual in to choose to technologies invested have to open Current prospective if manage help control we internal addition, In new program. their more solutions and them make over to adaptable will

thereafter. led developed advantage we we have We this the feel have also of neutral XXXX for marketing not but and vendor ramped in pipeline pursuit and We will take good MSP, sales the year impact as of how staffing finish opportunity sales just and MSPs. about direct it efforts to and

revenue strong in and placement Tenens trajectory. Locum of record to we had our client remains needs Locum solutions, Permanent stabilized. producing control working physician growth profitability. to our sustainability also businesses have XX% are leadership growing For though high seems clients has efforts, by our Demand cost demand bolster strong, permanent while interim been Tenens perm in and the the second quarter, placement affected and year-over-year,

segment on flat able revenue was gross to impressive the are margins We mixed despite progress operating year-over-year make and that and headwind. pleased PLS a

Our Workforce QX tracked staffing decline Solutions VMS to the QX Technology as and revenue softer segment saw market. from

on expected, whole margins year-over-year, That as shift revenue are profit have continued that As revenue language our segment to profit segment XX% a in lower, margins. favorable a the solutions. grew a towards and mix with impact consolidated business

how have flexibility. stepping have noted, environment permanent to reacted manage seeking post clients we by they in the pandemic As and change labor up hiring

in environment be an professionals. still utilization, healthcare improving healthcare and see of as engagement well deal we with supplies labor wellbeing to the challenged will which Overall, as growth in overall

while think initiatives. managing through technology strategic this environment, and important broad of now of and also serve set solutions We needs adjusting costs protect us is and investment the position to well the sustaining clinicians for platforms to our deep talent long-term. margins and clients AMN appropriately and realigning

Nurse a Allied our segment successfully major weeks, recent professionals. growth and serve to upgrade and objectives healthcare technology our our completed office back its internal In of better Solutions platform

new our The continue professionals manage of lasting and at we enablement process this our scale In benefits change healthcare XXXX for this success and for of solutions, AMN. and members. many into technology aspects, clients, accelerated will pace technology standards transition set team we how with

and in with technology workforce VMS, based record want broad comprehensive enabled our who solutions clients Our analytics solutions. such strengthens as staffing more track positioning long

which over Jeff about with final call return our outlook, for results the turn after some details comments. I'll and the to I will Now

Thank you, everyone. good Cary afternoon and

our Consolidated the was second quarter high from quarter the XX% by of was down revenue range, of in XXXX. outperformance guidance driven Tenens. Locum Second revenue of million $XXX near end

drive partially of revenue contraction XX% within Nurse demand mix was our to Gross clients expense management shift VMS. below and expected down levels within range. offset to favorable and gross segment the Sequentially continued anticipated, was and margin workforce a as was points, Compared Nurse Allied as the and margin with margin and XX.X%, the within prior-year basis rates primarily revenue quarter margin guidance by stepdown for XXX improvements technology lower the period, and Allied just solutions. up bill due

XX increased gross period, Sequentially, XX.X% million $XXX year expenses $XXX legal with SG&A settlement revenue including million were $XXX or compared in a non-recurring previous of XX.X% of the or XX.X% basis Consolidated quarter. prior revenue million or and the margin revenue points. in of

expenses, volumes in lower and along expenses expenses. driven debt Sequentially, business professional expenses year-over-year SG&A to decrease bad The environment. employee insurance was employee by lower with primarily reserve current lower with lower demand liability the led consistent

$XXX was compensation revenue, adjusted Adjusted prior revenue SG&A, of which excludes $XXX or as was lower expense million the second quarter, XX% of the by with certain period. and SG&A margin The stock driven million XX.X% increase revenue based of mainly year in revenue. in expenses percentage year-over-year compared nonrecurring or a in

revenue quarter, year In in and segment period. down revenue XX% Sequentially, volume bill revenue driven X%. the volume was record Year-over-year, down X% second worked were the and Average by down was hours Allied $XXX XX% sequentially. was rate Nurse near rates. and lower and prior year-over-year down XX%, the million from was down average XX% bill down

points XX% prior down XX% revenue period the were quarter was decrease nurse average prior was was Nurse second during from $XXX XX% million, of Allied period and the the XX.X%, the second hours quarter Travel XXX quarter. and quarter and basis volume increased $XXX was X% a gross Allied down basis margin and XX from during from down the grew X%. which prior million sequentially. XX% points Sequentially, and during year the sequentially. revenue year year-over-year

due liability bill of was gross XXX Physician in and quarter Continuing lower with leverage. due and sequentially. revenue margin Leadership by increase driven increased the points higher was to partially XX.X% X% of $XXX year-over-year bad SG&A margin normalization points margin operating margin primarily debt year-over-year and Solutions year-over-year segment, increased offset the pay reserve of Sequentially, basis basis to gross Segment operating The spread. million lower up flat expense. by XX professional second

and in down prior Tenens increase XX% million prior up prior from sequentially. of and quarter to measures. Interim demand as on the Search focus million, prior continue due quarter. to and primarily $XX X% leadership XX% year-over-year down revenue XX% from the Locum revenue XX% containment year down was from sequentially. the of year revenue the systems period healthcare revenue lower search from million decreased year XX% cost Interim $XX and dropped was the was $XXX a were

Tenens, and Solutions was sequentially. partially The gross for the the Leadership improved XX segment. year-over-year XX.X%, and was segment margin Physician to margin points basis Locum for XX by revenue within the offset up primarily year-over-year due basis margin Gross points down mix increase

an margin Segment to improvement, points and decreased increased XX margin XXX SG&A basis operating margin sequentially was impressive which year-over-year points. gross expenses due operating lower basis XX%,

Services down of and of generated quarter second an the during and revenue Solutions million, Workforce X% quarter-over-quarter. Language was XX% XX% million year-over-year and sequentially. $XX increase $XXX X% year-over-year Technology revenue

for gross margin margin quarter high the a from and year-over-year revenue down and the was margin Segment decrease $XX was of quarter year margin in lower VMS sequentially. in due respectively. XX% and away prior XX.X%, million, services. gross prior from a The language XX.X% and was and XX.X% revenue shift sequentially decrease in mix sharp primarily VMS a XX% to gross year-over-year

XX.X% points. in quarter segment lower operating by Segment second driven decreased in XXX with margin. was margin prior gross basis compared year the margin XX.X% Sequentially, operating the

XX of year-over-year and flat sequentially. points basis XX.X% million of EBITDA consolidated was up XX% EBITDA quarter Adjusted Second $XXX adjusted a and decrease margin sequentially. was year-over-year XX%

quarter down year-over-year net XX% $XX million, Second down and sequentially. income was XX%

prior the was collections GAAP was the the in compared and Adjusted than the quarter. quarter in share the quarter than quarter. higher was lower earnings prior year two prior prior to quarter Days days $X.XX days per per Second year three earnings and sales days, very period $X.XX $X.XX were outstanding diluted when the XX in strong. share $X.XX for

were quarter for and Operating flow capital expenditures was the million. second $XX million $XXX cash

revolving long-term ratio of June we draw equivalents million a billion, $X.XX of debt $XXX and As cash and a million of leverage on a X.Xx net of $X XXth, credit line of Xx. including to had

program call, previous which accelerated the As may recall, on we earnings repurchase second began $XXX in you a our million announced share quarter.

of repurchased shares X.X for of as $XXX the total a During we total June of shares for total we bought of X.X In million. quarter, million XXth, back a million. year-to-date million stock $XXX have stock of

outstanding authorized program today, our repurchase the $XXX of million of was Directors. on by As Board

of range XX.X% million be and expenses a We down XX.X% is the projected adjusted expected margin expected to to project margin be Moving XX% is be to X.X% to XX% XX.X%. to be million third projected revenue. guidance. the to to Gross $XXX Operating XXXX to margin to XX.X%. be and to SG&A period. are prior X.X% EBITDA XX.X% $XXX between XX.X% Reported of year to revenue consolidated is in from quarter

are outstanding $XX.X to be shares approximately diluted Average projected million.

Additional details can in today's third found be release. quarter earnings guidance

than lower the have months in anticipated, is few As clients winter needs quarter been guidance. for will which stable is third we indicated Order reflected they next from have weeks. within Carrie clients orders trends mentioned, utilization our top our place three and

nurse and third As single-digits. solutions Workforce such, Solutions grow allied declines revenue segments and we quarter & mid see revenue fourth in the & expect Physician level. in The should over seasonal the quarter the Technology Leadership modestly to

not change have how change is in within clients transitions stepping went were we labor our with As from in reacted expected noted, visible the result These largely from as the MSP a hiring impact client The soft environment up to months of lesser by XXXX in turnover post-pandemic turnover. along seeking the client expectations. of been recent near-term new our The flexibility. demand and have in they a permanent opportunities surge continued manage has impact clients greater drivers industry. and and

call like Cary. I'd to to hand now And the back

Jeff. you, Thank

impact AMN two AMN Legal Total say becoming of concept AMN after retiring we is and of instrumental corporate Healthcare. was family. to Jackson, quarter, Denise in farewell its in an from Corporate the This IPO Denise Talent the XX a of build and profound governance. leader making Chief the our years who industry helped to Secretary Solutions bringing Officer people on in

Whitney mentored for diversity, see ensure and equity, and embodies to Thank Whitney are her to inclusion. her She XX builds Denise you, for Her dedication Whitney. equality provided relentless fierce our legacy. excited that culture Loughlin, determination succession. we well years, on Denise. And and Denise's how successor has conviction, congratulations

a AMN Nurse instrumental part of and joined We acquisition. example work. Travel Nurse want He XXXX as Seedig talent, the the brilliant was Landry He segment in in an always to at leadership how acquisitions of Allied the our leader is in that businesses. should Landry bring and our pandemic. beginning and the Solutions of of XXXX, right of growth became Allied March in

staffing acumen, business opportunity during one the is forget. him. leadership, special Landry charm is insightful pandemic for very together blend that another unique who team that his him his kept leaving Landry with the to and of met industry a no will personal

We prepared his prepare are over our time superbly at critical grateful take leadership to Nurse in is for to his and Robin successor. efforts this Allied Johnson of evolution.

about build best the to leadership will I'm talent professionals at and the our changing to depth we clients excited a continue of to built ecosystem. and bring have healthcare industry AMN in

open call the operator, please Now questions. for

Thank you.

session. We will question-and-answer the Instructions]. [Operator conduct now

from Financial Services. of question first Suisse Our comes A.J. Rice Credit

Hi, everybody.

in Just volumes technical understand QX, If of out Nursing be in Allied down where QX decline I right decline? to versus sounds in about you're from It what were think rate XX% to the down Can what make you're to like volume a I've know that split in bill you're rate in bill QX. for got seeing QX. X% sure between that the give and the you falls XX%. QX category. down you about I sense revenues about same were looking the seeing us

volume side. Yes, in Allied in on down bill be The would single-digits QX, rates mid QX it's down over be rate maybe than bill X% originally QX A.J. sequentially. and decline And bill the had slightly low stronger to then Nursing We QX expected in rate. double-digits the QX down over to X% that, and

then And question. back broader Okay. stepping with a just

like least to staff at sounds at that. more what I into if principal fill I you're were. the there's way It to there an side of rates to don't described on think in least peer, demand were the than I yesterday, heading current the find third your the seeing quarter interpreted putting public the that is at bill maybe they comment emphasis -- inability any on positions. the know market they

orders for That's an there, somewhat You're market? three guess. would your open I suggest order ended are anyway, but takeaway? question, demand have I guess been from sort saying, the supply do has you to versus steady But that of it characterize though, trend to months, that any a challenge

A.J. Hey,

give a then general to detail. me Landry it in and fill Let some to over comment, I'll turn

Allied of had of we're and April terms what I nuance last talked our thing just about that quarter the probably in the think our same modest a growth, businesses. mix Nurse there's is to of and we overall see across market some But businesses trough. we started seeing early the and in some often

see to it expected growth continue into to that QX. we continued June and into We

really What saw that we is that flattened saw after the increases out. we going into June, it

in clients. so was the change with our And change us largest a for utilization

his we a So lower from some our seen expected of the was into that it wasn't we mentioned what And than go challenge. clients. some if largest of patterning It really have Jeff comments. forward and supply in opening a utilization

growth of want would QX those from some seasonal gotten winter some see we would don't about early you And indications, based from a have to… Landry, some I normal if bit We know patterning that to expect QX. back indications clients on needs. little we to

its A.J. hey, Landry. Yes,

course, and pay of So that looking considering these so factor that front, our jobs. just at it's on accepting are our one they're whenever clinicians jobs pay,

I location reputation, think might one in the really flexibility past, facilities we balance, preference. work the is the job, said life things most working of the important. have the There's That's conditions. other number

customers certain are market right below orders lot of do we posting would that consider different now a factors. we see there's And So that rate.

that of that many market portion see you new. Those and rate. They're that's those the for mean, unfilled experiencing rates. I have most we years not where larger are a that what at fill part. go of we've of over we posting And kind seen jobs needs do high lot that the go But consider they're strategic clients, getting customers would filled. orders unfilled. more their A our dynamic,

what as of see. So really, robust for to seeing we'd quite the the QX, going being some as for it's of we're demand more volumes us, like softer not that into just a reason story

And applications. last is that just mentioned then I I'd guess the thing

higher pre-pandemic. we lot what Our still so than strong, in really They there's saw application stats are ever remain still still of much new travel. really, interest a

Okay. Thanks a lot.

moment one next question. for Okay, our

Our is from of next BMO Markets. Silber Capital Jeff question

so much. Thanks

there your future Given internal and what just expect headcount. environment, we I'm changes company's changes? Has the curious been with doing should any been

the for thanks question. Yes,

has know, able As be down its is you history done AMN to extremely that up one over thing and flex different environments. well flex in

as accordingly. resources last so, have we managed and demand, you and And saw as we internal really lower entered this headcount left year, entered our year

So the expect do if quarter, standpoint. from be we headcount a that. will third the down what we look X% in beginning And year around we of you from the until would

in We normal have attrition management. place that put programs performance through we around managing that

a into One for into And thing ready our standpoint, that. quarter want is, the we next from I increase demand fourth get producers, intentionally kept producer year. note to to we because as would we expect have and we be

quarter. Jeff, add SG&A the midpoint absolute come down since every as And percent just into revenue the of expect quarter moved that a we I the And increased, we've QX guide, to Adjusted has with continue down but have as coming sales of fourth year. first would sequentially would the dollars through the the although trend quarter. at

Okay, about but I very question want be talk about that I may labor apologize helpful. My to it, is long. disruption. next

they their that any the spend. first more importantly, issues impact more labor anecdotal the of today, go tomorrow quarter. one the New in wanted hospitals any reduce Wood in aspect, strike my I on but one were else. to live quarter, our in So be and I seen contract haven't on anything news expected Johnson. Jersey, of was large I you're had to hospitals than nurses Robert the if this Central But third impact the don't know and it if expecting may second

that remember pressure the that's happening something but produce of And for self-serving, headwind elsewhere? nurses this themselves. seeing kind that it's business? from another I Obviously, Is don't your does

about disruption for quarter. say and million our there's revenue would had clients on in in I the in we labor nothing from disruption Yes, $X third second a front labor quarter, we're that us, the servicing

in zero there's QX revenue embedded So in the guide.

would heard clients. as from And, Jeff, that a haven't I say overall, we theme

maybe so much. Thank one-off here. Okay, you

next moment one our for question. Okay,

from is next Our of William Blair. question Trevor Romeo

growing potential and I Thanks bill kind you for they of either volumes after contract in hearing good in this what with commentary taking of sequentially winter year comfortable like questions. Hi, seeing feel travel the trough does hospitals on guess of order feel as for afternoon. look And of for like Nursing will rates of based where of the forward in further or year the on kind Or softness you much giving this kind next indications I QX does One, appreciate QX it you're the so it kind of the kind Allied in now, demand there's Solutions. confidence truly be are winter? stand cycle? labor? business terms for kind of and

me let a from let standpoint. could then Jeff about and expect expect chime we we macro from Landry I'll rate. see give little Yes, I see in what bill and to on what bit bit demand a talked think to we a you comments, a some And

some thesis about time, that look you we've the remains at for that intact. If macro talked

into side, and number of on constraints the a continue will demand so against demographics, going to we to you one aging have see an increase that, expect utilization, in overall factors to continue that. healthcare And supply

staffing be planning continue board their to of demand strategies across there the that. operationalize is of a workforce for everything which to for from how expect provide, we services workforce we piece we contingent into the so And

different systems, average, of would public this into from put have range The you're look I commentary hospital labor. that that on is in think some clients there. the back a average, at of reinforced what and change has on been contingent If getting normal company of at you you are on in getting to caveat seen the I paces

that that of clients some have would down high of other into gotten while are variety we they consider levels for have So reasons. have at what their clients still rates, a target we

that of into of back about more workforce think how year we do so this get framework. been sustainable one And when we really like, looks normal, a what has

our continue we So we imbalance, based creating expect to services go that will a need we the see supply forward. as broad for demand

somewhere from in X% since of fourth or bill be Yes. pre-pandemic where a that's call standpoint, in XX%, is running single-digits levels, would inflation quarter QX is put And expectations side, XXXX. a that the exit that wage our the XXXX. XX% levels, would And Trevor, CAGR the CAGR on much rate XXXX annualized nurse it very down rates where, above bill for low rate, from with off line

that us for point So think confidence gives as we the that 'XX. about rates that's starting bill

highlighted a wanted that for color. just which Thanks to as the of the second revenue quarter understood. And I think quarter. kind Locums on then in Yes, record business, touch I you

driving are kind guess book of wondering, X%? increases then QX QX in with and across broad any to demand based seeing reconcile being in guide strength Locums, how PLS Locums or X% segment the do Just you for the you down specialties strength the of particular the I given that

Hey, as little to give talk It was you're to I over congratulate want that underscore James, James I just about entire the Locums seeing? and bit for to extraordinary. quarter. you color, what a want team to our some turn

like Cary They the has and under Jeff thank in like values team I team really Locums would the outstanding to Decker's who and are work. specifically do you, we Sure. well. leaned of Thank lived the an Cary, And leadership, organization. as as

care our and pre-COVID Locums it still year-over-year very business, up to a at the is continues quarter-over-quarter levels move the and continues and and market about demand we're Locums surgery, and CRNA, surge and specific think that driven. to you demand from specialties from and It's forward. is advanced practice, strong the perspective really of As primary X.Xx

have revenue fill spreads, demand, POA our QX metrics from rates, the sequentially from day that think filled. book revenue record XX.X% and of revenues I we for you high results, a result up in other I in think and year-over-year, have we when will up, that XX% from state about favorable is over

upon demand and those metrics meet their meet those our we focusing numbers. year-over-year. up both financial to place, to help generating clients Team quarter-over-quarter were and in when our clients positions to positions that our their be of revenue helping because put and meet are All their clients able demand

that leveraging And through and about we our Solution. thinking Talent MSP do Total

keeps and our Total MSP Talent Solutions. leveraging leveraging teams Locums our the So

that we're market think well I delivering the positioned, demand high very is demand. and that against is in team

the on would headwinds still quarter-over-quarter you interim add. and be Trevor, search And a those guide, be Locums facing and basis. their some sequentially I hospital for continue should QX pretty would containment demand And just would there, approximately expectation QX. soft with that flattish both trends and businesses QX are year-over-year down cost systems where within The XX% expect over be in measures up we in low to remain teens on of then

Got it.

Okay, all Appreciate That color. thank helpful. the was you.

Okay, next moment our one question. for

is from question Next Brian Tanquilut Jefferies. of

about I about as you environment. in afternoon, around, that first a moving there's wins with share and the about us know, area and you be would of good color guys. Cary, chatter Hey, I talked vendor neutral agreements just any competitive question can just well. guess MSPs mean, lot my I

any So can environment what color today? like that share just maybe you looks on

the start I me mentioned something that last call seen have we let with in continue. Yes,

pandemic. at really of you clients out what look with we're coming As the seeing overall

focused down, heads dealing they challenges their For three surge years, were with in workforce. in and a demand on

going transparency, help building need a and find with huge with And come that so of seen cost containment, are solutions me sustainable how pandemic around, a I we workforce? the to do have them out

that them continue been conversations to And as an a I so board try the MSP, openness know going around bigger theme achieve that. there's we've overall and VMS. are clients solutions for to seen that help across

in look around both We as clients it our Obviously, we need are at solutions them. wrap major and what players we of them.

We to. what change one from haven't are coming about one going clients or model change, seen competitor

I is can for seeing needs. serve sustainably theme are a looking clients that a the build overall their they think we're workforce to way

a market. competitive so you a seeing look And it's at market, what overall competitive and from back if we're go

So a was into solutions to relationship, we be look clients, during you've an clients intensified. solutions that other we variety well help provide. want of And lower it pandemic. to the that as gone of any they whether relationship, or think of a of what the provide this regardless competitive of a has for in we positioned as vendor period breadth competition good neutral We are MSP very of the because position demand,

thing year-over-year one we at is, look XXX% And last I pipeline should year. MSP higher this mention, pipeline, time Brian other our if our than is

it. Got

I competitors is well. AJ that's challenges whatnot, your of awesome. I mentioned kind one recruitment earlier, Okay, as mean guess related of my with about mean as I follow-up and but talking the called spread showing as take And obviously for and I they bill Nurse rate. quarter, out your the in between you're tightening Allied rate of at and look deterioration. margins not any

given those margins going in margins Allied Nurse commentaries? So maybe is forward. just curious what and for Gross outlook your

in expect in worked. where That's typically low pretty us, fourth We be to QX. margins for the just because of comparable the Brian, seasonally gross And QX levels hours Allied Nurse should and were would quarter. the we

you. Got it. All right. Thank

moment our Thank you. next One question. for

from Bank America. is Fischbeck question of of Next Kevin

what competitor ask I year. about visibility believe to where both you into Wanted QX the this guess is for now thanks. have trend, the and you because quarters guidance two your Great, taken guys your is down public

are seems so and it's informed the you're there below of guess better And are like were hit flux whether the getting is saw what data I average? more points be of believe target, to Or last kind than quarter moving hard a year? is kind in a or and still what firming. that to things you visibility today think market sounded in to data you at is points that reason this things last still point confident seems I because it both flux,

saw seen very say we normal assume behavior was us, utilization talked and partial had we say about this Kevin, really decline than times we among many did historically. quarter. would Yes, recovery, clients return We've level seasonal would I the third to we how we and of different our patterns, a top some into for would then the thought what year

winter to QX, on do indications trends trough from and what over that stability their and three demand sequentially gives our within revenue it visibility Nurse the Allied well the QX is needs, will be months, we've As in received the that order seen will and the us that Nurse clients and into believe that over Allied. that relates as QX increase the past QX we've we that as

expected want fillable how they're to be real firming I of of than fully a the them kind seeing your orders don't that coming I have in hospital little got are view commentary and that I kind guess market that maybe orders orders but orders, phantom make were of in different orders sure near at read these you're kind those saying looking bit I orders? guess orders but to just of filled. there's of confidence and was Okay, and potentially that I your make of filled. no sense rates in call whether mix that a actually market that competitor being or the you've that not that kind kind just lot were is never theirs, rates are below there and

Hey, Landry. Kevin, it's

rate. some other So pay fill competitor I public with go higher they rates, if had higher at orders don't disagree a that that would of the those

So would I have that what to going thing been we don't is And what on see unfilled disagree the not component with before. a is, seen are The those we orders always that. marketplace. disproportionate that's in

and what bill and mix on and are what the the that we market some those demanding we So orders rates that's what demand. need is more demanding, based are clinicians believe why the of

out. of coming that our Jeff that our above needs us official, some will last of And top seen show what and for those from both list from Cary means or but like needs, winter and And the we've the saw not clients, clients. demand at year. which QX It's leveled into lists it's winter mentioned, in we be is QX

question, was thought how Okay. year as I just trending, And and then guess, the historically, we maybe this about XXXX. we thought about then last

put you're saying I about [indiscernible] being next If it, You guys down, that's annualize and that like, QX about wrong maybe what base annualized. next to to that there revenue a point overall the about way at up jumping seem flattish year. like take good a something with right think year, or to to be numbers that you that? Nurse be the being QX base Is into think which Allied type divisions the XX slightly probably more and is for up, might to guiding off hear would for

directionally top-line of correct, the TWS, about particularly some the seasonality, well think could back as out on and that would I margin run you would within say rate. It's Certainly the smooth as side. on PLS half Kevin,

Okay.

and annualized guidance think year in this of to sense? from there half makes back growth and rates then the you bill bill hours So

Rates probably will inflation, on depend year but levels. QX those we them flattish, next pretty envision of would off being

we depth Language the well well. And within pipeline. the be marketplace about Obviously, could MSP spoke as Services as of Cary then as think well. the I have churn potentially as Locums tailwinds a client headwind

you. Thank Perfect. Okay.

One moment question. next for our

Our Tobey comes Truist Sommer from next question of Securities.

the us with share you the Thanks. firm, With bit shape about more looks to year stabilizing maybe three as a towards business months the the Cary, in portfolio another business be at you end? how may could

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total starting we client drive high solutions operationalize be through and to towards a continue that how will talent side, them solutions. interest, help them, incredibly for overall set solution to broad our is which set with workforce able the planning, plan On we of in of

our will that, own terms technology with of the degrees platforms, have increasing what do on them of in side. we and All both of interface on integration we how also

opening the comments mentioned in about this and On clinician side the we Passport.

have want capabilities Obviously, has making relationships with that a XX/X clinicians wider clinicians in to of producers our gone it through to to very our support for Passport. continue We range access their easy to well. their in

We have that XXX,XXX over app. clinicians on

company how wrap operate and solutions organic truly our both our of have a benefit efforts we set continue brand has going but all one have we is that component, clients growth inorganic. the about grow and around how of organically Second entire we big through how we It area that's client both M&A, from focus around centricity platform to AMN, strongly the to more effectively, approach them. and the

continue. technology, Third quarters. heard big expect think component I past about the me two you over should to And that you've talk which is

things We are last tech then the two digital, all and pieces M&A. are accelerating and

very past of successfully We as strategy overall have grown our in through M&A. part the

get the market next and accelerate continue as And would leave to the expect and we opportunities M&A in participate into that. We year to expect to year. we

the And will inclusion, DEI, culture our and then all our be that and best finally, foundation of underpinned attracting talent. by retaining around

speaking at the in level, look I that. far so do you in recent contributing English Stratus What that well factors robust? non-native explain as to was the as sort this been appreciate rapid wondering, how a years it the foundational as I growth when like are year? doesn't population growth rapid growth has of

good Yes, There's things. a couple question. a of it's

pool a it we profit look for doing in clients who in the at clients of there's service. beforehand. growing you If house I some overall One, actually And how are There are of are couple faster. that that, utilizing factors. our terms are think

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effectively I part operating so as think you of a you that strategy is as ensure your workforce And how of are this possible.

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big Just course into an having how we've solution And of to are of we nine. having a this from big AMN's language of average MSP do value year, our made And put that. our our part a our clients part progress set proposition during top solutions the of is entire relationships? so services into very eight of our

solution. I'll seen has And have value proposition is Final video a attractive that what Tobey, have that is we we mention, piece that solution to a that clients. is

growth think been we also part our that outsized relative to has so And the a market. of

you. Thank

for our next question. One Thank you. moment

question Next Company. Sutherland of Bill Benchmark The is from

Hey, a thinking you of over Been a Thanks. on the you sustainability bit for the others. looking growth very been reasonable do be limiting and there, strong about kind far as what's think everybody. the as would Locum just the space. little horizon It's factors and the growth? of What very,

So, and into systems care, will to remain first is ten get healthcare I you are me chronic times the appreciate actually aging believe to six earlier, you mention X.Xx are you the at that have or wait think all, XX, then the disease. the about XXXX the of that with And in by out demand actually marketplace and a under population, going demand it to you coming over going times you're of XX, your I people Locums that have think pre-COVID wait a those from up. is. When levels. more also then of about as continue And heard from question. needing standpoint, where consumer the still demand

for delivering clients really to to factor think our through, that. supply positions we to I be their to that come that where pretty are play have solution think will be will the remain deliver that. patients be but thinking able revenue to: bottom in able in we have marketplace we and So total the the of line, constant. how Hence to the needing them limiting I The generating that help manage care within number significant demand do events also talent provide one, a the and against and help role

think solve needing could in be have to I very less we point, for do very And to a think physicians with role we against that. So how at think care storm. significant I More with a that to deliver this helping able be perfect that. through people we play

to, And to like toolkit Cary, thinking about when you are you for in M&A, more Locums? increases more instance, are solutions think you or areas thinking your strong bench about about resuming adding

say what we would I at is look both.

about we accelerate areas solutions mirror areas that terms we those us look at and look you look opportunity should services. language probably what talking at what an continue of overall? well. to expect needs, is look you are great in enabled we what we're James have we M&A the like to to And future. a for to going future will always of there was And to what at just think see we Jeff, what so would solutions, in tech when example did then and we seeing demand, about add as And anticipate client would where

to I been pipeline think the XX market would is last slow right say I the we're see now, more has tech-enabled That months. starting pretty assets.

Nurse as So Allied the we're seeing side. side, in well much the within activity there James's area pick POS the Travel on as pipeline or on up not as

everybody. Thanks, Okay.

final moment our Baird. question Andre from This One for you. question here. Childress Thank is of

our Hey, questions. Marcon. this is from you taking Thank on for Andre Mark

view I'll So some first some assets. tech-enabled revaluations talk you're multiple one Can you Thanks. for for just also are about how the additionally then the repurchases that maybe companies seeing Can your of further share last your of have sale, talk allocation? those quick ratio? with follow-up and you you the made on appetite on about you comment and capital on leverage

the that, that that been what revalued, of Andre, have talk on I'll of we seen. is bit a those are about get first and an of might the solutions, have let an since year some then let What part assets the Jeff there as we we there's understanding tech-enabled is that take of some expectation me repurchases. through hearing

quarters. trade that some the broader there would what number market trade over haven't those you've of assets We couple like would more that expect we a while seen would the seen those be valuations So expectations look at. past

but see levels valuation could So more, we'd our expectation we see make interesting. only not is that it

let On the I'll you Jeff, talk. side, repurchase

counterparties X.Xx. discretion quarter. outside the or November us Andre, as now as say, third just could at amount as would be enter We That levered right the million late completed date, I flexibility Yes, affords sheet balance ASR in a of did obviously sometime $XXX early this at into quarter. the on the tremendous an

that pretty beyond, would M&A into repurchase 'XX. million. number share 'XX brought for that's in share deployment. year to full-year capital again, close moving the We right to calendar priority our and obviously, be then our repurchases So, first -- And $XXX think for

And front, we shareholders return M&A on capital repurchase look and then to will anything apps the compelling shares. and to

color. you Thank for all the Great.

back you Thank would Okay. closing for to Cary your Seeing I no conference now like at time, questions the further Grace this for turn to question. comments.

in build and for and today. members did to Denise And a that. leave always they is a incredible it huge company I appreciate new and congratulations just by Whitney team amazing I AMN thank on to special out to thank Robin AMN you to clinicians, our the into what calling I want Landry and roles. their

you As always, AMN. in we your appreciate Thank all. interest

conference concludes for call. today's Thank This you participating.

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