Full Press Release Details
Apollo Medical Holdings, Inc. Reports Third
Quarter 2023 Results
Company to Host Conference Call on Tuesday,
November 7, 2023, at 2:30 p.m. PT/5:30 p.m. ET
ALHAMBRA, Calif., November 7, 2023
/PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed," and together with its subsidiaries and affiliated entities, the
"Company") (NASDAQ: AMEH), a leading physician-centric, technology-powered healthcare company focused on enabling providers
in the successful delivery of value-based care, today announced its consolidated financial results for the third quarter ended September 30,
"I'm pleased to report strong third
quarter performance with total revenue up 10% and capitated revenue up 34% compared to a year ago. We delivered a 15% adjusted EBITDA
margin, we narrowed our guidance range for the full year, and we ended the third quarter well-positioned to generate sustainable and
profitable growth going forward," said Brandon Sim, Co-Chief Executive Officer of ApolloMed.
"Today, we also announced our intent to
acquire assets relating to Community Family Care Medical Group, which currently manages total cost of care for over 200,000 members,
diversifying our membership mix and providing us a pathway to expand our value-based Care Partners business. Additionally, we announced
two other provider group partnerships this quarter, which bring a combined membership of approximately 30,000, and our total number of
provider group partnerships signed this year so far to five," continued Mr. Sim.
Mr. Sim concluded, "During the third quarter,
we continued to make strong progress against our key operational goals, successfully managing our value-based care population, and delivering
high-quality care. Our platform's momentum is accelerating as we work towards our mission of ensuring that everyone across the
country has access to high-quality and high-value healthcare, and I am very excited about our opportunities ahead."
Financial Highlights for Third Quarter Ended
All comparisons are to the quarter ended September 30,
2022 unless otherwise stated.
Financial Highlights for Nine Months Ended September 30, 2023:
All comparisons are to the nine months ended
September 30, 2022 unless otherwise stated.
Recent Operating Highlights:
Segment Results for the Third Quarter Ended
| Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||
| ($ in thousands) | Care Partners | Care Delivery | Care Enablement | Other | Intersegment Elimination | Corporate Costs | Consolidated Total | |||||||||||||||||||||
| Total revenues | $ | 326,499 | $ | 29,261 | $ | 36,910 | $ | 294 | $ | (44,791 | ) | $ | - | $ | 348,173 | |||||||||||||
| % change vs. prior year quarter | 11 | % | 18 | % | 22 | % | ||||||||||||||||||||||
| Cost of services | 279,769 | 25,647 | 13,658 | 76 | (43,775 | ) | - | 275,375 | ||||||||||||||||||||
| General and administrative (1) | 6,390 | 4,649 | 16,804 | 875 | (2,086 | ) | 7,083 | 33,715 | ||||||||||||||||||||
| Total expenses | 286,159 | 30,296 | 30,462 | 951 | (45,861 | ) | 7,083 | 309,090 | ||||||||||||||||||||
| Income (loss) from operations | $ | 40,340 | $ | (1,035 | ) | $ | 6,448 | $ | (657 | ) | $ | 1,070 | (2) | $ | (7,083 | ) | $ | 39,083 | ||||||||||
| % change vs. prior year quarter | (13 | )% | (133 | )% | 27 | % |
(1) Balance includes general and administrative
expenses and depreciation and amortization.
(2) Income from operations for the
intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other
income which is not presented in the table.
ApolloMed is narrowing its full-year 2023 guidance.
The net income and EBITDA guidance ranges below include the impact of the excluded assets held by APC, which are solely for the benefit
of APC and its shareholders. Any gains or losses associated with these excluded assets do not have an impact on Adjusted EBITDA and earnings
per share - diluted. These guidance ranges are based on the Company's existing business, current view of existing market
conditions, and assumptions for the year ending December 31, 2023.
| ($ in millions) | 2023 Guidance Range | 2023 Guidance Range | ||||||||||||||
| (as of November 7, 2023) | (as of February 23, 2023) | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Total revenue | $ | 1,340.0 | $ | 1,390.0 | $ | 1,300.0 | $ | 1,500.0 | ||||||||
| Net income | $ | 59.5 | $ | 71.5 | $ | 49.5 | $ | 71.5 | ||||||||
| EBITDA | $ | 114.5 | $ | 129.5 | $ | 89.5 | $ | 129.5 | ||||||||
| Adjusted EBITDA | $ | 135.0 | $ | 150.0 | $ | 120.0 | $ | 160.0 | ||||||||
| EPS - diluted | $ | 1.10 | $ | 1.20 | $ | 0.95 | $ | 1.20 |
See "Guidance Reconciliation of Net Income
to EBITDA and Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for additional information. There can
be no assurance that actual amounts will not be materially higher or lower than these expectations. See "Forward-Looking Statements"
below for additional information.
Conference Call and Webcast Information:
ApolloMed will host a conference call at 2:30 p.m. PT/5:30 p.m. ET
today (Tuesday, November 7, 2023), during which management will discuss the results of the third quarter ended September 30,
2023. To participate in the conference call, please use the following dial-in numbers about 5 minutes prior to the scheduled conference
U.S. & Canada (Toll-Free): +1 (866) 682-6100
International (Toll): +1 (862) 298-0702
The conference call can also be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=woZLVfk8.
An accompanying slide presentation will be available
in PDF format on the "IR Calendar" page of the Company's website (https://www.apollomed.net/investors/news-events/ir-calendar)
after issuance of the earnings release and will be furnished as an exhibit to ApolloMed's current report on Form 8-K to be filed
with the SEC, accessible at www.sec.gov.
Those who are unable to attend the live conference
call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
Note About Consolidated Entities
The Company consolidates entities in which it
has a controlling financial interest. The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50%
of the voting rights, and variable interest entities ("VIEs") in which the Company is the primary beneficiary. Noncontrolling
interests represent third party equity ownership interests in the Company's consolidated entities (including certain VIEs). The
amount of net income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income.
Note About Stockholders' Equity,
Certain Treasury Stock and Earnings Per Share
As of the date of this press release, 41,048
holdback shares have not been issued to certain former shareholders of the Company's subsidiary, Network Medical Management, Inc.
("NMM"), who were NMM shareholders at the time of closing of the merger, as they have yet to submit properly completed letters
of transmittal to ApolloMed in order to receive their pro rata portion of ApolloMed's common stock and warrants as contemplated
under that certain Agreement and Plan of Merger, dated December 21, 2016, among ApolloMed, NMM, Apollo Acquisition Corp. ("Merger
Subsidiary") and Kenneth Sim, M.D., as amended, pursuant to which Merger Subsidiary merged with and into NMM, with NMM as the surviving
corporation. Pending such receipt, such former NMM shareholders have the right to receive, without interest, their pro rata share of
dividends or distributions with a record date after the effectiveness of the merger. The Company's consolidated financial statements
have treated such shares of common stock as outstanding, given the receipt of the letter of transmittal is considered perfunctory and
ApolloMed is legally obligated to issue these shares in connection with the merger.
Shares of ApolloMed's common stock owned
by Allied Physicians of California, a Professional Medical Corporation d.b.a. Allied Pacific of California ("APC"), a VIE
of the Company, are legally issued and outstanding but excluded from shares of common stock outstanding in the Company's consolidated
financial statements, as such shares are treated as treasury shares for accounting purposes. Such shares, therefore, are not included
in the number of shares of common stock outstanding used to calculate the Company's earnings per share.
About Apollo Medical Holdings, Inc.
ApolloMed is a leading physician-centric, technology-powered,
risk-bearing healthcare company. Leveraging its proprietary end-to-end technology solutions, ApolloMed operates an integrated healthcare
delivery platform that enables providers to successfully participate in value-based care arrangements, thus empowering them to deliver
outcomes-based medical care to patients in a cost-effective manner.
Headquartered in Alhambra, California, ApolloMed's
subsidiaries and affiliates include management services organizations (MSOs), affiliated independent practice associations (IPAs), and
entities participating in the Centers for Medicare & Medicaid Services Innovation Center (CMMI) innovation models. For more information,
please visit www.apollomed.net.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company's guidance
for the year ending December 31, 2023, ability to meet operational goals, ability to meet expectations in deployment of care coordination
and management capabilities, ability to decrease cost of care while improving quality and outcomes, ability to deliver sustainable revenue
and EBITDA growth as well as long-term value, ability to respond to the changing environment, and successful implementation of strategic
growth plans, acquisition strategy, and merger integration efforts. Forward-looking statements reflect current views with respect to
future events and financial performance and therefore cannot be guaranteed. Such statements are based on the current expectations and
certain assumptions of the Company's management, and some or all of such expectations and assumptions may not materialize or may
vary significantly from actual results. Actual results may also vary materially from forward-looking statements due to risks, uncertainties