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

Aug. 9, 2019 4:01 pm


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

 

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.

PR Newswire
August 9, 2019 - 1:01 PM PDT


"I work with many of the companies that would be RedChip companies. And we certainly ascribe to the same view that the RedChip Companies do, which is Discovering Tomorrow's Blue Chips Today."

  • Bob McCooey, Senior Vice President, NASDAQ Stock Market