ALHAMBRA, Calif., Aug. 9, 2019 /PRNewswire/ -- Apollo Medical
Holdings, Inc. ("ApolloMed" or the "Company") (NASDAQ: 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
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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.