Apollo Medical Holdings Reports Revenue Of $130.0 Million For The Second Quarter Of 2019

ALHAMBRA, Calif., Aug. 9, 2019 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed" or the "Company") AMEH, an integrated population health management company, announced its consolidated financial results for the quarter ended June 30, 2019 today.

Financial Highlights for the Quarter Ended June 30, 2019 compared to the Quarter Ended June 30, 2018:

  • Total revenue of $130.0 million for the quarter ended June 30, 2019 as compared to total revenue of $122.7 million for the quarter ended June 30, 2018, an increase of 6%.
  • Income from operations of $14.7 million for the quarter ended June 30, 2019 as compared to income from operations of $7.1 million for the quarter ended June 30, 2018, an increase of 107%.
  • Net income of $10.7 million for the quarter ended June 30, 2019 as compared to net income of $7.9 million for the quarter ended June 30, 2018, an increase of 35%.
  • Net income attributable to Apollo Medical Holdings, Inc. of $3.5 million for the quarter ended June 30, 2019 as compared to net income of $2.7 million for the quarter ended June 30, 2018, an increase of 30%.
  • Net income attributable to Apollo Medical Holdings, Inc. was $3.5 million for the quarter ended June 30, 2019, an increase of $3.4 million as compared to net income attributable to Apollo Medical Holdings, Inc. of $0.1 million for the quarter ended March 31, 2019.

"We are very pleased with the progress of our long-term growth initiatives, especially with our successful acquisition of Alpha Care Medical Group in the second quarter, which demonstrated our continued commitment to external growth through the successful execution of our acquisition strategy. While our management team is laser-focused on the integration of Alpha Care Medical Group, we continue to actively evaluate our pipeline of acquisition opportunities," said Kenneth Sim, M.D., Executive Chairman of ApolloMed.

For more details on ApolloMed's June 30, 2019 quarter end results, please refer to the Company's Quarterly Report on Form 10-Q to be filed with the U.S. Securities Exchange Commission and accessible at www.sec.gov.

APOLLO MEDICAL HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)





June 30,

2019
 



December 31,

2018
 

Assets















Current assets







Cash and cash equivalents

$

52,726,305





$

106,891,503



Restricted cash

3,537,470







Investment in marketable securities

1,149,828





1,127,102



Receivables, net

16,707,314





7,127,217



Receivables, net – related parties

64,057,647





49,328,739



Other receivables

12,900,211





1,003,133



Prepaid expenses and other current assets

10,121,935





7,385,098



Loan receivable – related parties

6,425,000















Total current assets

167,625,710





172,862,792











Noncurrent assets







Land, property and equipment, net

12,101,373





12,721,082



Intangible assets, net

109,069,858





86,875,883



Goodwill

209,313,824





185,805,880



Loans receivable – related parties

17,500,000





17,500,000



Investment in other entities – equity method

35,903,041





34,876,980



Investment in a privately held entity that does not report net asset value per share

405,000





405,000



Restricted cash

740,212





745,470



Right-of-use assets

14,319,371







Other assets

1,351,579





1,205,962











Total noncurrent assets

400,704,255





340,136,257











Total assets

$

568,329,965





$

512,999,049











Liabilities, Mezzanine Equity and Stockholders' Equity















Current liabilities















Accounts payable and accrued expenses

$

30,658,273





$

25,075,489



Fiduciary accounts payable

1,798,807





1,538,598



Medical liabilities

42,942,898





33,641,701



Income taxes payable





11,621,861



Bank loan





40,257



Finance lease obligation

101,741





101,741



Lease liabilities

2,836,010















Total current liabilities

78,337,729





72,019,647











Noncurrent liabilities







Lines of credit – related party

44,600,000





13,000,000



Deferred tax liability

26,651,678





19,615,935



Liability for unissued equity shares

1,185,025





1,185,025



Finance lease obligation

466,771





517,261



Lease liabilities

11,416,750















Total noncurrent liabilities

84,320,224





34,318,221











Total liabilities

162,657,953





106,337,868











Mezzanine equity







Noncontrolling interest in Allied Physicians of California, a Professional Medical Corporation

219,582,512





225,117,029











Stockholders' equity







Series A Preferred stock, par value $0.001; 5,000,000 shares authorized (inclusive of all preferred stock, including Series B Preferred stock); 1,111,111 issued and zero outstanding at June 30, 2019 and December 31, 2018, respectively







Series B Preferred stock, par value $0.001; 5,000,000 shares authorized (inclusive of all preferred stock, including Series A Preferred stock); 555,555 issued and zero outstanding at June 30, 2019 and December 31, 2018, respectively







Common stock, par value $0.001; 100,000,000 shares authorized, 34,638,812 and 34,578,040 shares outstanding, excluding 1,944,054 and 1,850,603 treasury shares, at June 30, 2019 and December 31, 2018, respectively

34,639





34,578



Additional paid-in capital

163,891,845





162,723,051



Retained earnings

21,473,083





17,788,203





185,399,565





180,545,832











Noncontrolling interest

689,935





998,320











Total stockholders' equity

186,089,500





181,544,152











Total liabilities, mezzanine equity and stockholders' equity

$

568,329,965





$

512,999,049



 

APOLLO MEDICAL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)





Three Months Ended

June 30,



Six Months Ended

June 30,



2019



2018



2019



2018

Revenue















Capitation, net

103,223,692





90,316,182





174,740,470





176,221,466



Risk pool settlements and incentives

11,191,050





13,866,217





21,284,891





31,852,953



Management fee income

10,352,619





12,371,608





19,349,219





24,446,180



Fee-for-service, net

3,878,428





4,563,712





7,959,102





10,800,340



Other income

1,403,777





1,548,812





2,473,055





3,268,838



















Total revenue

130,049,566





122,666,531





225,806,737





246,589,777



















Operating expenses















Cost of services

101,363,101





99,705,571





184,795,575





184,320,257



General and administrative expenses

11,817,555





10,893,135





22,081,515





22,441,474



Depreciation and amortization

4,454,571





4,918,078





8,872,152





9,976,590



Provision for doubtful accounts

(2,314,429)









(1,363,415)























Total expenses

115,320,798





115,516,784





214,385,827





216,738,321



















Income from operations

14,728,768





7,149,747





11,420,910





29,851,456



















Other income (expense)















(Loss) income from equity method investments

(42,282)





1,669,861





(891,939)





1,641,837



Interest expense

(311,049)





(110,683)





(522,028)





(195,684)



Interest income

473,664





492,723





796,672





762,541



Other income

24,229





187,752





211,345





275,745



















Total other income (expense), net

144,562





2,239,653





(405,950)





2,484,439



















Income before provision for income taxes

14,873,330





9,389,400





11,014,960





32,335,895



















Provision for income taxes

4,209,399





1,523,807





2,801,158





8,752,647



















 Net income

10,663,931





7,865,593





8,213,802





23,583,248



















Net income attributable to noncontrolling interests

7,118,715





5,201,491





4,528,922





18,758,691



















Net income attributable to Apollo Medical Holdings, Inc.

$

3,545,216





$

2,664,102





$

3,684,880





$

4,824,557



















Earnings per share – basic

$

0.10





$

0.08





$

0.11





$

0.15



















Earnings per share – diluted

$

0.09





$

0.07





$

0.10





$

0.13



















Weighted average shares of common stock outstanding – basic

34,540,059





32,674,459





34,518,461





32,548,662



















Weighted average shares of common stock outstanding – diluted

37,962,555





37,850,679





37,896,837





37,935,773



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 (loss) income attributable to noncontrolling interests is disclosed in the Company's consolidated statements of income. Effective June 1, 2019 the condensed consolidated balance sheet as of June 30, 2019 and condensed consolidated statements of income for the three and six months ended June 30, 2019, also includes the accounts of Alpha Care Medical Group, Inc.

Note About Stockholders' Equity, Certain Treasury Stock and Earnings Per Share

As of the date of this press release, 480,212 shares of ApolloMed's common stock to be issued as part of the merger (the "Merger") involving ApolloMed and Network Medical Management, Inc. ("NMM") in 2017 are subject to ApolloMed receiving from certain 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 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.

Shares of ApolloMed's common stock owned by Allied Physicians of California IPA, a Professional Medical Corporation, (d.b.a. Allied Pacific of California IPA), 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 integrated population health management company, which, together with its subsidiaries, including a Next Generation Accountable Care Organization ("NGACO"), and its affiliated independent practice associations ("IPAs") and management services organizations ("MSOs"), is 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.  ApolloMed focuses on addressing the healthcare needs of its patients by leveraging its integrated health management and healthcare delivery platform that includes NMM (MSO), Apollo Medical Management, Inc. (MSO), ApolloMed Hospitalists, a Medical Corporation, (hospitalists), APA ACO, Inc. (NGACO), Allied Physicians of California IPA (IPA), Alpha Care Medical Group, Inc. (IPA) and Apollo Care Connect, Inc. (Digital Population Health Management Platform).  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, 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 continued growth, acquisition strategy, ability to delivery sustainable long-term value, ability to respond to the changing environment, operational focus, strategic growth plans, 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 and other factors, known and unknown, including the risk factors described from time to time in the Company's reports to the US Securities and Exchange Commission (the "SEC"), including, without limitation the risk factors discussed in the Company's Annual Report on Form 10-K filed with the SEC on March 18, 2019.

FOR MORE INFORMATION, PLEASE CONTACT:

Eric Chin 

Chief Financial Officer 

Apollo Medical Holdings, Inc. 

(626) 943-6008 

Eric.Chin@nmm.cc

 

Cision View original content:http://www.prnewswire.com/news-releases/apollo-medical-holdings-reports-revenue-of-130-0-million-for-the-second-quarter-of-2019--300899588.html

SOURCE Apollo Medical Holdings, Inc.

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