AMN HEALTHCARE NYSE-AHS

TIMELINESS
SAFETY
TECHNICAL

1
3
4

High:
Low:

Raised 10/26/12

27.9
20.0

37.4
13.0

RECENT
PRICE
19.0
8.9

21.6
10.7

50.2 RELATIVE
DIVD
Median: 24.0) P/E RATIO 1.63 YLD
11.55 P/ERATIO 25.1(Trailing:
20.7
12.9

28.3
17.3

29.1
16.4

20.4
7.4

11.0
4.6

10.0
4.1

9.3
3.6

Nil

12.2
3.9

Target Price Range

2015 2016 2017

LEGENDS
12.0 x Cash Flow p sh
. . . . Relative Price Strength
Options: Yes
Shaded areas indicate recessions

New 1/25/02
Raised 1/11/13

BETA 1.05 (1.00 = Market)

VALUE
LINE

40
32
24

2015-17 PROJECTIONS

Annl Total
Price
Gain
Return
High
25 (+115%) 20%
Low
15 (+30%)
6%
Insider Decisions
to Buy
Options
to Sell

F
0
3
0

M
0
4
0

A
0
7
0

M
0
0
1

J
0
0
1

J
1
0
1

A
1
0
1

S
0
0
0

16
12
10
8
6

O
0
0
0

4
% TOT. RETURN 12/12

Institutional Decisions
1Q2012
37
to Buy
to Sell
35
Hlds(000) 34090

2Q2012
57
38
34535

3Q2012
67
42
35230

Percent
shares
traded

24
16
8

1 yr.
3 yr.
5 yr.

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-----------

-----------

-----------

7.19
.47
.34
-.08
d.10
20.38
----

8.00
d.01
d.16
-.08
2.33
28.84
----

12.24
.24
.09
-.11
6.43
42.29
NMF
NMF
--

CAPITAL STRUCTURE as of 9/30/12

Total Debt $173.5 mill. Due in 5 Yrs $173.5 mill.
LT Debt $158.0 mill.
LT Interest $20.0 mill.
(Total interest coverage: 1.8x)
(51% of Capl)
Leases, Uncapitalized Annual rentals $14.8 mill.
No Defined Benefit Pension Plan
Pfd Stock $22.6 mill. Pfd Divd Nil
4.5 mill. shs. Series A, liqu. val. $10 a sh., each
convertible into one com. sh.
Common Stock 44,386,650 shs.
as of 11/1/12
MARKET CAP: $525 million (Small Cap)
CURRENT POSITION 2010
2011 9/30/12
($MILL.)
Cash Assets
1.9
4.0
3.8
Receivables
127.5
169.2
161.6
Inventory (Avg Cst)
---Other
49.9
39.3
28.3
Current Assets
179.3
212.5
193.7
Accts Payable
45.9
49.8
43.6
Debt Due
18.3
34.6
15.5
Other
53.7
55.7
56.4
Current Liab.
117.9
140.1
115.5

18.96
1.37
1.12
-.11
7.23
40.91
21.8
1.19
--

25.40
1.52
.95
-.46
4.13
28.12
14.5
.83
--

22.19
.82
.55
-.18
4.83
28.34
27.9
1.47
--

775.7
11.6%
3.8
52.4
39.5%
6.7%
137.3
1.0
295.8
17.6%
17.7%
17.7%
--

714.2
9.6%
4.8
37.8
38.7%
5.3%
76.9
125.5
116.1
16.1%
32.5%
32.5%
--

629.0
6.7%
5.8
17.4
37.8%
2.8%
77.2
96.9
136.8
9.2%
12.7%
12.7%
--

22.63
.91
.69
-.12
6.19
31.20
22.9
1.22
--

31.28
1.31
1.02
-.28
7.07
34.58
21.8
1.18
--

34.41
1.42
1.05
-.27
8.16
33.83
20.1
1.07
--

THIS
STOCK

VL ARITH.*
INDEX

160.7
27.5
-32.7

17.4
40.1
40.9

VALUE LINE PUB. LLC

15-17

37.37
1.50
1.02
-.27
8.72
32.58
14.7
.88
--

23.28
.45
.03
-.12
5.24
32.63
NMF
NMF
--

17.59
.18
d.23
-.11
3.21
39.19
----

21.94
.53
.11
-.11
2.56
40.45
NMF
NMF
--

21.25
.65
.32
-.15
4.20
44.50
23.0
1.45
--

21.75
.85
.50
Nil
.15
4.90
46.00

Revenues per sh
Cash Flow per sh
Earnings per sh A
Divds Decld per sh
Capl Spending per sh
Book Value per sh C
Common Shs Outstg B
Avg Annl P/E Ratio
Relative P/E Ratio
Avg Annl Divd Yield

26.50
1.40
.95
Nil
.25
7.40
46.00
20.0
1.35
Nil

705.8 1081.7 1164.0 1217.2

7.5%
7.7%
7.3%
7.1%
6.2
10.3
11.7
14.4
22.2
35.1
36.5
34.4
40.2% 38.2% 39.9% 43.9%
3.1%
3.2%
3.1%
2.8%
100.1 114.9 114.4
88.5
194.8 160.5 120.4 100.2
193.2 244.6 276.1 284.1
7.0% 10.6% 10.5%
9.6%
11.5% 14.3% 13.2% 12.1%
11.5% 14.3% 13.2% 12.1%
-----

759.8
6.2%
13.8
.9
NMF
.1%
74.3
100.1
170.8
1.6%
.5%
.5%
--

689.2
3.4%
15.1
d8.1
-NMF
61.4
200.8
181.8
NMF
NMF
NMF
--

887.5
6.1%
16.4
5.0
64.0%
.6%
72.4
174.2
159.7
4.5%
3.1%
4.8%
--

945
7.5%
15.0
15.0
50.0%
1.6%
95.0
155
195
8.0%
7.5%
8.0%
--

1000
8.0%
16.0
24.0
45.0%
2.4%
130
140
225
9.0%
10.5%
10.5%
Nil

Revenues ($mill)
Operating Margin
Depreciation ($mill)
Net Profit ($mill)
Income Tax Rate
Net Profit Margin
Working Capl ($mill)
Long-Term Debt ($mill)
Shr. Equity ($mill)
Return on Total Capl
Return on Shr. Equity
Retained to Com Eq
All Divds to Net Prof

1220
9.5%
20.0
46.0
45.0%
3.8%
200
80.0
340
12.0%
13.5%
13.5%
Nil

BUSINESS: AMN Healthcare Services, Inc. provides temp. and

permanent staffing services to hospitals and other healthcare
facilities. Recruits physicians, nurses, physical therapists, and
medical technicians. Has three units: nurse & allied healthcare
staffing (64% of 11 revs, 66% of oper. income); locum tenens
(temp physician) staffing (31%, 23%); and physician permanent

placement (5%, 11%). Has about 1,840 employees (excluding

5,320 healthcare workers that are contracted to work for AMN).
EdgePoint Investment owns 16.5% of common stock; offs./dirs.,
3.0% (3/12 proxy). Chmn.: Douglas Wheat. Pres./CEO: Susan
Salka. Inc.: DE. Addr.: 12400 High Bluff Dr., Suite 100, San Diego,
CA 92130. Tel.: 866-871-8519. Internet: www.amnhealthcare.com.

AMN Healthcare appears to be showing resilience amid improving condiANNUAL RATES Past
Past Estd 09-11 tions in the healthcare staffing marof change (per sh) 10 Yrs.
5 Yrs.
to 15-17
ket. Indeed, recent results have been quite
Revenues
8.5%
-4.0%
4.0%
impressive. And chances are the company
Cash Flow
5.5% -17.5% 24.0%
Earnings
--NMF
had a solid finish to 2012, pushing fullDividends
--Nil
year totals up at a vigorous pace. Of parBook Value
2.5%
-9.5% 13.0%
ticular note, the core nurse/allied staffing
QUARTERLY REVENUES ($ mill.)
CalFull category has shown strength of late,
endar Mar.31 Jun.30 Sep.30 Dec.31 Year driven by double-digit volume increases.
2009 249.6 199.1 166.4 144.7 759.8 This largely reflects the ongoing pickup in
2010 143.3 149.3 176.3 220.3 689.2 demand for temporary nurse and allied
2011 215.8 220.6 229.0 222.1 887.5 health
professionals.
Likewise,
the
2012 226.4 235.8 243.9 238.9 945
permanent physician staffing line has
2013 240
250
255
255 1000
been benefiting from increased searches.
EARNINGS PER SHARE A
CalFull Things could be better in the temporary
endar Mar.31 Jun.30 Sep.30 Dec.31 Year
physicians unit, however, where weakness
2009
.04
.13
d.06
d.08
.03 in some of the larger specialties continues
2010
.02
-d.23
d.02
d.23 to offset strength in smaller ones.
2011
.04
.01
.02
.04
.11
2012
.07
-.12
.13
.32 The earnings recovery should contin2013
.10
.11
.15
.14
.50 ue in 2013. Our expectation largely assumes demand remains on an upswing.
QUARTERLY
DIVIDENDS
PAID
CalFull This will hinge on such factors as a decline
endar Mar.31 Jun.30 Sep.30 Dec.31 Year
in the unemployment rate, which would
2009
prompt mobility among employed health2010
NO CASH DIVIDENDS
care professionals; an easing of hospital
2011
BEING PAID
budgeting issues; and an uptick in patient
2012
admissions, as individuals resume non2013

elective/nonurgent procedures. Meanwhile,

despite investments for strategic initiatives (discussed below), margins stand to
further expand due to firmer pricing and
greater SG&A leverage, as revenues rise.
The bottom line should get an added boost,
with debt refinancing costs (incurred in
the second quarter of 2012) out of the way.
Long-term growth prospects seem
promising. AMN is currently investing to
expand its workforce solutions offerings,
candidate recruitment capabilities, and
technology infrastructure. The strategic
initiatives should help to better position
the company for the likely rise in demand
for health professionals over the long haul,
brought about by industry trends (i.e.,
aging population, nurse shortage) and
healthcare reform.
AMN stock is a top-notch choice for
the year ahead, and has rebound
potential to spare, too. The issue has
regained some ground since early 2012,
reflecting increased investor confidence in
the companys ability to return to growth.
AMNs efforts to pay down debt with cash
flow likely havent gone unnoticed, either.
J. Susan Ferrara
January 11, 2013

(A) Based on diluted earnings. Includes noncash stock-based compensation expense: 00,
56; 01, 57; 02, 1; 03, 2. Excludes nonrecurring losses: 99, 60; 00, 7; 01, 23;

09, $3.78; 10, $1.26. Excl. inc./(loss) from dis- (B) In millions.
continued ops.: 11, (68); Q112, 2. Next
(C) Includes intangibles. In 2011: $266.9 milearnings report due mid-March.
lion, $6.60/sh.

2013, Value Line Publishing LLC. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind.
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Companys Financial Strength

Stocks Price Stability
Price Growth Persistence
Earnings Predictability

B
40
10
25

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