AMN Healthcare Services, Inc. (NYSE: AHS) announced it has completed the sale of its home healthcare business to BAYADA Home Health Care, Inc. effective January 30, 2012. As a result of the sale, AMN will receive cash proceeds of $9.65 million and retain working capital of approximately $4 million.
"Given significant reimbursement changes and the current uncertainty in the regulatory environment, we determined a divestiture of home healthcare would allow an even sharper focus on our market-leading healthcare workforce solutions offerings," said Susan R. Salka, the Company's chief executive officer.
"Our primary strategy of evolving our innovative healthcare workforce solutions offerings and improving profitability through growth and leverage of our leadership position in managed services programs continues to be on track," Salka noted. "We have our sights set on another year of industry leading revenue and profitability growth and continuing to build our market share in 2012."
As a result of the sale, the home healthcare segment will be reported in Discontinued Operations for all applicable periods presented in our consolidated financial statements. Due to this presentation, fourth quarter revenues from Continuing Operations are now expected to be between $219 million and $223 million, which is consistent with previous guidance excluding approximately $13 million of revenue associated with the home healthcare segment. Gross margin is expected to be at the high end of the previous range provided of 27.5% to 28.0% and adjusted EBITDA margin is expected to be above the prior target of 6%. The sale of this segment is not expected to have a meaningful impact to fourth quarter income from Continuing Operations. The Company's 19 franchisee-owned Nursefinders offices were not included in the transaction.
The Company intends to use proceeds from the sale to pay down debt. In addition, the Company does not anticipate any impact on its credit facility or related covenants and no amendments to the credit facility were required to execute the transaction.
SOURCE AMN Healthcare Services, Inc.