Full Press Release Details
APOLLO MEDICAL HOLDINGS REPORTS
YEAR OVER YEAR FOR THE 1st QUARTER OF 2018
Alhambra, CA and Glendale, CA
- (PR Newswire) - May 15, 2018 - Apollo Medical Holdings, Inc. ("ApolloMed" or "the
Company") (NASDAQ: AMEH), an integrated population health management company, today announced its consolidated 1st
Quarter financial results for the three months ended March 31, 2018.
Financial Highlights for the Three
Months Ended March 31, 2018 Compared to the Three Months Ended March 31, 2017 (unaudited):
Notes to the Financial Highlights
for the Three Months Ended March 31, 2018:
"We are very pleased with the
progress of our long term growth initiatives, especially with our continued strong organic revenue growth," stated Warren
Hosseinion, M.D., Co-Chief Executive Officer of Apollo Medical Holdings. "We are confident in our future and believe we
are well-positioned for continued growth."
"In Q1 2018, our management
team focused on integrating the two companies post-merger," stated Thomas Lam, M.D., Co-Chief Executive Officer of Apollo
Medical Holdings. "We also made important investments to support the management of the additional 260,000 patients."
"We are pleased with our Q1
2018 financial results," stated Kenneth Sim, M.D., Executive Chairman of Apollo Medical Holdings. "We believe that
there will be no further material investments necessary to support the new contracts in Q2 and expect that post-merger integration
costs will be less in Q2 than in Q1 and the integration will be substantially completed by the end of Q2. We look forward to the
rest of fiscal year 2018."
For more details on ApolloMed's
March 31, 2018 quarter end results, please refer to the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities
Exchange Commission and accessible at www.sec.gov.
APOLLO MEDICAL HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2018 | December 31, 2017 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 103,731,761 | $ | 99,749,199 | ||||
| Restricted cash - short-term | 18,028,116 | 18,005,661 | ||||||
| Fiduciary cash | 1,386,474 | 2,017,437 | ||||||
| Investment in marketable securities | 1,138,477 | 1,143,095 | ||||||
| Receivables, net | 52,805,123 | 20,117,304 | ||||||
| Prepaid expenses and other current assets | 3,525,437 | 3,126,866 | ||||||
| Total current assets | 180,615,388 | 144,159,562 | ||||||
| Noncurrent assets | ||||||||
| Land, property and equipment, net | 13,700,034 | 13,814,306 | ||||||
| Intangible assets, net | 99,138,657 | 103,533,558 | ||||||
| Goodwill | 188,933,191 | 189,847,202 | ||||||
| Loans receivable - related parties | 5,000,000 | 5,000,000 | ||||||
| Loan receivable | 10,000,000 | 10,000,000 | ||||||
| Investments in other entities - equity method | 21,875,500 | 21,903,524 | ||||||
| Restricted cash - long-term | 745,293 | 745,235 | ||||||
| Other assets | 1,585,850 | 1,632,406 | ||||||
| Total noncurrent assets | 340,978,525 | 346,476,231 | ||||||
| Total assets | $ | 521,593,913 | $ | 490,635,793 |
| Liabilities, Mezzanine Equity and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Lines of credit | $ | 5,000,000 | $ | 5,025,000 | ||||
| Accounts payable and accrued expenses | 12,110,530 | 13,279,620 | ||||||
| Incentives payable | 14,900,000 | 21,500,000 | ||||||
| Fiduciary accounts payable | 1,386,474 | 2,017,437 | ||||||
| Medical liabilities | 69,110,826 | 63,972,318 | ||||||
| Income taxes payable | 7,614,669 | 3,198,495 | ||||||
| Bank loan, short-term | 394,783 | 510,391 | ||||||
| Capital lease obligations | 99,480 | 98,738 | ||||||
| Total current liabilities | 110,616,762 | 109,601,999 | ||||||
| Noncurrent liabilities | ||||||||
| Deferred tax liability | 30,055,819 | 24,916,598 | ||||||
| Liability for unissued equity shares | 1,185,025 | 1,185,025 | ||||||
| Dividends payable | 18,000,000 | 18,000,000 | ||||||
| Capital lease obligations, net of current portion | 593,852 | 619,001 | ||||||
| Total noncurrent liabilities | 49,834,696 | 44,720,624 | ||||||
| Total liabilities | 160,451,458 | 154,322,623 | ||||||
| Commitments and Contingencies | ||||||||
| Mezzanine equity | ||||||||
| Noncontrolling interest in Allied Pacific of California IPA ("APC") | 190,654,312 | 172,129,744 | ||||||
| Stockholders' equity | ||||||||
| Series A Preferred stock, par value $0.001; 5,000,000 shares authorized (inclusive of Series B Preferred stock); 1,111,111 issued and zero outstanding | - | - | ||||||
| Series B Preferred stock, par value $0.001; 5,000,000 shares authorized (inclusive of Series A Preferred stock); 555,555 issued and zero outstanding | - | - | ||||||
| Common stock, par value $0.001; 100,000,000 shares authorized, 32,652,295 and 32,304,876 shares outstanding, excluding 1,682,110 shares held by APC, at March 31, 2018 and December 31, 2017, respectively | 32,653 | 32,305 | ||||||
| Additional paid-in capital | 160,736,190 | 158,181,192 | ||||||
| Retained earnings | 4,897,454 | 1,734,531 | ||||||
| 165,666,297 | 159,948,028 | |||||||
| Noncontrolling interest | 4,821,846 | 4,235,398 | ||||||
| Total stockholders' equity | 170,488,143 | 164,183,426 | ||||||
| Total liabilities, mezzanine equity and stockholders' equity | $ | 521,593,913 | $ | 490,635,793 |
APOLLO MEDICAL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
| Three Months Ended March 31, | 2018 | 2017 | ||||||
| Revenue | ||||||||
| Capitation, net | $ | 85,905,284 | $ | 64,716,133 | ||||
| Risk pool settlements and incentives | 17,986,736 | 11,137,200 | ||||||
| Management fee income | 12,074,572 | 6,537,110 | ||||||
| Fee-for-service, net | 7,748,109 | 2,663,913 | ||||||
| Other income | 452,026 | 281,706 | ||||||
| Total revenue | 124,166,727 | 85,336,062 | ||||||
| Expenses | ||||||||
| Cost of services | 84,670,608 | 59,607,514 | ||||||
| General and administrative expenses | 11,735,898 | 5,211,633 | ||||||
| Depreciation and amortization | 5,058,512 | 4,836,351 | ||||||
| Total expenses | 101,465,018 | 69,655,498 | ||||||
| Income from operations | 22,701,709 | 15,680,564 | ||||||
| Other income (expense) | ||||||||
| (Loss) income from equity method investments | (28,024 | ) | 2,227,262 | |||||
| Interest expense | (85,001 | ) | (811 | ) | ||||
| Interest income | 269,818 | 182,285 | ||||||
| Change in fair value of derivative instrument | - | 1,522,222 | ||||||
| Other income | 87,993 | 1,514 | ||||||
| Total other income, net | 244,786 | 3,932,472 | ||||||
| Income before provision for income taxes | 22,946,495 | 19,613,036 | ||||||
| Provision for income taxes | 7,228,840 | 7,889,245 | ||||||
| Net income | 15,717,655 | 11,723,791 | ||||||
| Net income attributable to noncontrolling interests | 13,557,200 | 7,374,130 | ||||||
| Net income attributable to Apollo Medical Holdings, Inc. | $ | 2,160,455 | $ | 4,349,661 | ||||
| Earnings per share - basic | $ | 0.07 | $ | 0.17 | ||||
| Earnings per share - diluted | $ | 0.06 | $ | 0.15 | ||||
| Weighted average shares of common stock outstanding - basic | 32,421,467 | 25,067,954 | ||||||
| Weighted average shares of common stock outstanding - diluted | 38,098,373 | 28,445,647 |
Note About Historical Results for
Periods Prior to the Merger
the closing of the merger involving Apollo Medical Holdings, Inc. ("ApolloMed") and Network Medical Management, Inc.
("NMM") in December 2017 (the "Merger"), NMM is now a wholly-owned subsidiary of ApolloMed and the former
NMM shareholders own a majority of the issued and outstanding common stock of ApolloMed. For accounting purposes, the Merger is
treated as a "reverse acquisition" and NMM is considered the accounting acquirer and ApolloMed the accounting acquiree.
Accordingly, as of the closing of the Merger, for comparison purposes, NMM's historical results of operations replaced ApolloMed's
historical results of operations for all periods prior to the Merger, and the results of operations of both companies are included
in the Company's consolidated financial statements for all periods following the Merger.
Note About Consolidated Entities
Company consolidates entities in which it has a controlling financial interest. The Company consolidates subsidiaries in which
the Company 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 (including
certain VIEs) in the Company's consolidated entities. The amount of net income attributable to noncontrolling interests
is disclosed in the condensed consolidated statements of income.
Stockholders' Equity, Certain Treasury Stock and Earnings Per Share
of the date of this press release, 1,000,970 shares ApolloMed's common stock to be issued as part of the Merger are subject
to ApolloMed receiving from those former NMM shareholders a properly completed letter of transmittal (and related exhibits) before
such former NMM shareholders may receive their pro rata portion of ApolloMed common stock and warrants. 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 condensed consolidated financial statements have treated
such shares of common stock as outstanding, given the receipt of the letter of transmittal is considered perfunctory and the Company
is legally obligated to issue these shares as of the closing of the Merger.
of ApolloMed's common stock owned by Allied Physicians of California IPA (d.b.a. Allied Pacific of California IPA), a variable
interest entity of the Company, are legally issued and outstanding but excluded from shares of common stock outstanding in the
Company's condensed 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
About Apollo Medical Holdings,
is a leading physician-centric integrated population health management company, which, together with its subsidiaries, including
a Next Generation Accountable Care Organization ("NGACO"), and its affiliated Independent Physician Associations (each,
an "IPA"), are working to provide coordinated, outcomes-based high-quality medical care for patients, particularly senior
patients and patients with multiple chronic conditions, in a cost-effective manner. Led by a management team with over two
decades of experience, ApolloMed is addressing the healthcare needs of its patients by leveraging its integrated health
management and healthcare delivery platform that includes: Network Medical Management (MSO), Apollo Medical Management (MSO),
ApolloMed Hospitalists, APA ACO (Next Generation ACO), Allied Physicians of California (IPA), Maverick Medical
Group (IPA) and Apollo Care Connect (Digital Population Health Management Platform). ApolloMed strives to improve medical outcomes
with high-quality, cost-efficient care. For more information, please visit www.apollomed.net.
Forward Looking Statements
press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such
as statements about the Company's integration-related costs following the closing of the Merger, the expected substantial
completion of such integration, the future growth of the Company, the Company's future business model, financial conditions
and strategic transactions (including mergers, acquisitions and management services agreements) as well as the prospects of and
future investments for the Company's strategic transactions. 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 and other factors, known and unknown, associated with such statements, many of which are
beyond the control of the Company, which could cause the actual results, performance or achievements of the Company and its subsidiaries
and variable interest entities to be materially different than those that may be anticipated on the basis of historical trends.
Examples of such risks and uncertainties include but are not limited to:
one or more of these risks or uncertainties materialize, or should any expectations or assumptions underlying the relevant forward-looking
statements prove incorrect, the Company's actual results, performance or achievements may vary materially from those described
in such statements as being expected, anticipated, intended, planned, believed, sought, estimated or projected. Investors and
other readers, therefore, should not place reliance on any forward-looking statements or use any historical trends to anticipate
or predicate results or trends in future periods. Any statements included herein are made only as of the date hereof. The
Company undertakes no obligation to update or revise any statement to reflect the impact of circumstances or events that arise
after the date hereof, except as required by law, and also undertakes no obligation to correct or update information prepared
FOR MORE INFORMATION, PLEASE CONTACT:
Co-Chief Executive Officer
Apollo Medical Holdings, Inc.