The Innovator in Healthcare Workforce Solutions and Staffing Services Investor Presentation January 2020
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, 2018 and its 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 Developments subsequent to this presentation are likely to cause these statements to become outdated with the passage of time. Non-GAAP Measures This presentation contains certain non-GAAP financial information, which the Company provides as additional information, and not as an alternative, to the Company's condensed consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures include (1) adjusted EBITDA and (2) adjusted EBITDA margin on slides 10 and 27, respectively. Management believes that adjusted EBITDA and adjusted EBITDA margin serve as industry-wide financial measures. These non-GAAP measures should not be used in isolation to evaluate the Company's performance. A reconciliation of the non-GAAP measures identified in this presentation, along with further detail about the use and limitations of certain of these non-GAAP measures, may be found on the Company's website at http://amnhealthcare.investorroom.com/financialreports. 2
Key Investment Highlights Leader in Attractive Market Trusted partner in healthcare staffing services: nurse, allied, locum tenens, physician and executive search, interim leadership, revenue cycle solutions Innovator in Workforce Solutions MSP, VMS, RPO, workforce optimization, scheduling and credentialing solutions Investing in Technology Enhances recruiting capabilities and improves efficiency Scalable Operating Model Ability to drive attractive cash flow and earnings growth Strong Cash Flow and Balance Sheet Disciplined management and conservative balance sheet 3
Our Mission Every day, we . . . Deliver the best talent and insights to help healthcare organizations optimize their workforce Give healthcare professionals opportunities to do their best work towards quality patient care Create a values-based culture of innovation where our team members can achieve their goals 4
A Recognized Leader 2019 2016 2019 2018 2011- Peer Review Designation Exemplary Corporate Equality Index Best Proxy Statement to AMN MSP (Managed Compensation Gender Equality Index Services Programs) since Discussion & Analysis 2011 (CD&A) Award Winner 2018 2018 2018 2018 2018 Re-Certified through 2020 Healthcare Leader The Top Size of Deal Largest Healthcare Provider Based on Customer First Corporate Staffing Company in Top performer in revenue, Satisfaction and Certification for Staffing Based on Customer the U.S. profits, and stock returns. Quality Services by the Satisfaction and Quality Joint Commission 5
Evolution of AMN: Driving Towards Workforce Solutions AMN has evolved from Staffing and Recruitment traditional healthcare staffing to Workforce Solutions providing comprehensive Leadership workforce solutions Workforce Technologies Workforce Solutions Now Majority of Revenue Mix 2019* 2008 4% Workforce Solutions Clinical Staffing 67% * 2019 revenue mix as of Sept. 30 6
Revenue Growth with Operating Leverage Revenue Adjusted EBITDA $270 $2,164 $268 $2,136 $256 $1,988 $237 $1,902 $1,463 $165 $1,036 $91 2014 2015 2016 2017 2018 LTM 2014 2015 2016 2017 2018 LTM ($ Millions) 7
Our Technology Roadmap Candidate Engagement More mobile, two-way, seamless Mobile apps for recruiting and engagement Customer Experience Insightful reporting and predictive analytics More data integrations Total Talent Management Integrate our technology platforms Help clients manage/optimize total workforce AMN Operations Creating new data assets Proprietary algorithms, large data sets Integrated omni-channel candidate acquisition 8
Industry Overview
Healthcare Staffing: Large, Fragmented Market 2019E US Healthcare Staffing Hires, Openings & Quits 17.5 Five-Year CAGRs Revenue in $ Billions $15 7% 6% $10 3% $5 $0 Hires Openings Quits Job Openings and Labor Turnover Source: Staffing Industry Analysts/Crain Communications • Healthcare hiring has struggled to match need Other Addressable Markets: • Hiring is largely offset by voluntary attrition Greater Than $5 Billion • One-third of the healthcare workforce turns over each year Interim Leadership, Perm/Search, RPO, Revenue Cycle, Workforce Consulting, VMS, Credentialing Source: Job Openings and Labor Turnover Survey, US Bureau of Labor Statistics 10 Source: AMN internal estimates of other markets
Healthcare Staffing Market Landscape Top 10 largest firms ranked by estimated US healthcare temporary staffing revenue $2,000 $1,500 $1,000 $500 $0 (1) (1) Medical Solutions includes acquisition of Aureus Medical Group Source: Staffing Industry Analysts FY 2018 estimates of total healthcare temporary staffing revenues 11
Most Comprehensive Set of Solutions Staffing Solutions Staffing Solutions Workforce Solutions Workforce Solutions Leadership & Leadership & Revenue Cycle Revenue Cycle Travel Nurse Travel Nurse Allied Health Allied Health Locum Tenens Locum Tenens MSP MSP RPO RPO VMS VMS Search Search Services Services ✓ #1 #1 #1 #1 #3 #1 #1 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 12
Drivers of Healthcare Employment Growth Annual Growth in Healthcare Spend Aging Population and Healthcare Utilization U.S. population aged 65+ in millions 72 5.5% • Over 65 - 3x more hospital days 4.4% 3.9% 40 • Over 75 - 4x more healthcare days 2010 2015 2020 2025 2030 2017 2018 2018–27 Source: U.S. Department of Health and Human Services Aging Healthcare Professionals Projected Healthcare Labor Shortage in 2032 ~ 50% of RNs and physicians are age 50+ ~38% of active physicians are age 56 & older Up to 121,900 Regional & specialty physician shortage nurse shortages Sources: National Council of State Boards of Nursing and The Forum of State Nursing Workforce Centers – 2013 data and Association of American Medical Colleges April 5, 2016; AMN Healthcare survey, November 2017; AMA Physician Master File and 2012 Physicians Foundation Survey conducted by Merritt Hawkins – 2012 data; National Health Expenditure Projections – CMS, February 2019; AMN Healthcare 2013 Clinical Workforce Survey of Hospital Leaders; “The Complexities of Physician Supply and Demand,” Association of American Medical Colleges, April 2019; Future of the Nursing Workforce, Health Resources and Services Administration, December 2014. 13
Business Overview
AMN Portfolio of Solutions Executive Staffing and Leadership and Staffing and Recruitment Workforce Solutions Workforce Solutions Leadership Recruitment Search • Interim leadership • Travel nursing • Managed services programs (MSP) • Executive search • Allied staffing • Vendor management systems • Physician permanent placement • Locum tenens (VMS) • Clinical leadership search • Local staffing • Scheduling and labor • Leadership training and • Revenue cycle solutions management development • Rapid response • Credentialing solutions • Workforce analysis and • EMR implementation • Education services optimization • Labor disruption • Float pool management • Predictive modeling and analytics • Recruitment process outsourcing (RPO) Value through leadership, innovation and strategic insight Green text represents solutions offered within managed services programs 15
Leader in Managed Services Outsourced partner to manage all supplemental workforce needs AMN manages staffing vendors, credentialing, clinical support, reporting, consolidated invoicing Complete range of solutions from vendor management systems (VMS) to vendor-neutral and staffing-led managed services programs (MSP) AMN Benefits Client Benefits • Faster and higher fill rates • Cross-selling opportunities • Increased visibility • Recruitment advantages • Staffing optimization • Less cyclicality • Controlled spend • Improved demand visibility • Accountability • Strong client relationships • Credentialing compliance • High client retention 16
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