(State or Other Jurisdiction | (Commission File | (I.R.S. Employer | ||
of Incorporation) | Number) | Identification Number) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Precommencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Precommencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
Nasdaq Capital Market |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits. |
Exhibit No. | Description | |
APOLLO MEDICAL HOLDINGS, INC. | ||
Dated: August 7, 2020 | By: | /s/ Thomas S. Lam, M.D. |
Name: Title: | Thomas S. Lam, M.D. Co-Chief Executive Officer and President |
• | Total revenue of $165.2 million for the quarter ended June 30, 2020, an increase of 27% as compared to $130.1 million for the quarter ended June 30, 2019, primarily due to our acquisitions of Alpha Care Medical Group on May 31, 2019 and Accountable Health Care IPA on August 30, 2019, which companies contributed revenue of approximately, $32.5 million and $12.5 million, respectively, for the quarter ended June 30, 2020. |
• | Capitation revenue, net, of $140.9 million for the quarter ended June 30, 2020, an increase of 37% compared to $103.2 million for the quarter ended June 30, 2019. Capitation revenue represented 85% of our total revenue for the quarter ended June 30, 2020. |
• | Risk pool settlements and incentives revenue of $12.0 million for the quarter ended June 30, 2020, an increase of 7%, as compared to $11.2 million for the quarter ended June 30, 2019. |
• | Net income of $81.0 million for the quarter ended June 30, 2020 as compared to net income of $10.7 million for the quarter ended June 30, 2019 driven primarily by the gain on the sale by Universal Care Acquisition Partners, LLC's ("UCAP") of its 48.9% investment in Universal Care, Inc. ("UCI") to Bright Health Company of California ("Bright"). UCAP is a 100% owned subsidiary of ApolloMed's affiliate, Allied Physicians of California IPA ("APC") and its 48.9% investment in UCI is an excluded asset that remains solely for the benefit of APC and its shareholders. As such, the gain on sale did not affect the net income and adjusted EBITDA attributable to ApolloMed. |
• | Net income attributable to Apollo Medical Holdings, Inc. of $7.0 million for the quarter ended June 30, 2020, as compared to net income attributable to Apollo Medical Holdings, Inc. of $3.5 million for the quarter ended June 30, 2019. The increase from the prior year was primarily due to preferred dividends ApolloMed received from APC. |
• | Maintain total revenue of between $665.0 million and $675.0 million, |
• | Maintain net income of between $100.0 million and $110.0 million, |
• | Maintain EBITDA of between $155.0 million and $167.0 million, and |
• | Maintain adjusted EBITDA of between $75.0 million and $90.0 million. |
APOLLO MEDICAL HOLDINGS, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | ||||||||
June 30, | December 31, | |||||||
2020 | 2019 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 152,441 | $ | 103,189 | ||||
Restricted cash | — | 75 | ||||||
Investment in marketable securities | 117,656 | 116,539 | ||||||
Receivables, net | 17,588 | 11,004 | ||||||
Receivables, net – related parties | 59,328 | 48,136 | ||||||
Other receivables | 15,919 | 16,885 | ||||||
Prepaid expenses and other current assets | 11,188 | 10,315 | ||||||
Loans receivable | 6,425 | 6,425 | ||||||
Loans receivable – related parties | — | 16,500 | ||||||
Total current assets | 380,545 | 329,068 | ||||||
Noncurrent assets | ||||||||
Restricted cash | 746 | 746 | ||||||
Land, property and equipment, net | 11,485 | 12,130 | ||||||
Intangible assets, net | 94,790 | 103,012 | ||||||
Goodwill | 239,053 | 238,505 | ||||||
Investments in other entities – equity method | 26,817 | 28,427 | ||||||
Investments in privately held entities | 37,075 | 896 | ||||||
Operating lease right-of-use assets | 20,219 | 14,248 | ||||||
Other assets | 22,487 | 1,681 | ||||||
Total noncurrent assets | 452,672 | 399,645 | ||||||
Total assets | $ | 833,217 | $ | 728,713 |
Liabilities, Mezzanine Equity and Shareholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 24,788 | $ | 27,279 | ||||
Fiduciary accounts payable | 1,853 | 2,027 | ||||||
Medical liabilities | 70,273 | 58,725 | ||||||
Income taxes payable | 42,210 | 4,529 | ||||||
Dividend payable | 431 | 271 | ||||||
Finance lease liabilities | 102 | 102 | ||||||
Operating lease liabilities | 3,350 | 2,990 | ||||||
Current portion of long-term debt | 9,500 | 9,500 |
Total current liabilities | 152,507 | 105,423 | ||||||
Noncurrent liabilities | ||||||||
Deferred tax liability | 13,654 | 18,269 | ||||||
Finance lease liabilities, net of current portion | 355 | 416 | ||||||
Operating lease liabilities, net of current portion | 17,418 | 11,373 | ||||||
Long-term debt, net of current portion and deferred financing costs | 230,455 | 232,172 | ||||||
Total noncurrent liabilities | 261,882 | 262,230 | ||||||
Total liabilities | 414,389 | 367,653 | ||||||
Mezzanine equity | ||||||||
Noncontrolling interest in Allied Physicians of California, a Professional Medical Corporation | 210,980 | 168,725 | ||||||
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, $0.001 par value per share; 100,000,000 shares authorized, 36,309,513 and 35,908,057 shares outstanding, excluding 17,475,707 and 17,458,810 treasury shares, at June 30, 2020, and December 31, 2019, respectively | 36 | 36 | ||||||
Additional paid-in capital | 163,986 | 159,608 | ||||||
Retained earnings | 43,001 | 31,905 | ||||||
207,023 | 191,549 | |||||||
Noncontrolling interest | 825 | 786 | ||||||
Total stockholders' equity | 207,848 | 192,335 | ||||||
Total liabilities, mezzanine equity and stockholders' equity | $ | 833,217 | $ | 728,713 |
APOLLO MEDICAL HOLDINGS, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue | ||||||||||||||||
Capitation, net | $ | 140,949 | $ | 103,224 | $ | 281,370 | $ | 174,740 | ||||||||
Risk pool settlements and incentives | 12,003 | 11,191 | 23,239 | 21,285 | ||||||||||||
Management fee income | 8,690 | 10,353 | 17,505 | 19,349 | ||||||||||||
Fee-for-service, net | 2,270 | 3,878 | 5,697 | 7,959 | ||||||||||||
Other income | 1,257 | 1,404 | 2,463 | 2,473 | ||||||||||||
Total revenue | 165,169 | 130,050 | 330,274 | 225,806 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of services | 136,079 | 101,363 | 280,283 | 184,795 | ||||||||||||
General and administrative expenses | 11,556 | 11,818 | 23,390 | 22,081 | ||||||||||||
Depreciation and amortization | 4,628 | 4,455 | 9,330 | 8,872 | ||||||||||||
Provision for doubtful accounts | — | (2,314 | ) | — | (1,363 | ) | ||||||||||
Total expenses | 152,263 | 115,322 | 313,003 | 214,385 | ||||||||||||
Income from operations | 12,906 | 14,728 | 17,271 | 11,421 | ||||||||||||
Other income (expense) | ||||||||||||||||
Income (loss) from equity method investments | 834 | (42 | ) | 2,888 | (892 | ) | ||||||||||
Gain on sale of equity method investment | 99,647 | — | 99,647 | — | ||||||||||||
Interest expense | (2,673 | ) | (311 | ) | (5,541 | ) | (522 | ) | ||||||||
Interest income | 863 | 474 | 1,792 | 797 | ||||||||||||
Other income | 1,282 | 24 | 1,384 | 211 | ||||||||||||
Total other income (expense), net | 99,953 | 145 | 100,170 | (406 | ) | |||||||||||
Income before provision for income taxes | 112,859 | 14,873 | 117,441 | 11,015 | ||||||||||||
Provision for income taxes | 31,858 | 4,209 | 33,453 | 2,801 | ||||||||||||
Net income | 81,001 | 10,664 | 83,988 | 8,214 | ||||||||||||
Net income attributable to noncontrolling interest | 73,957 | 7,119 | 72,892 | 4,529 | ||||||||||||
Net income attributable to Apollo Medical Holdings, Inc. | $ | 7,044 | $ | 3,545 | $ | 11,096 | $ | 3,685 | ||||||||
Earnings per share – basic | $ | 0.20 | $ | 0.10 | $ | 0.31 | $ | 0.11 | ||||||||
Earnings per share – diluted | $ | 0.19 | $ | 0.09 | $ | 0.30 | $ | 0.10 |
APOLLO MEDICAL HOLDINGS, INC. | ||||||||
SUPPLEMENTAL INFORMATION | ||||||||
Capitated Membership (in thousands) | ||||||||
June 30, 2020 | December 31, 2019 | December 31, 2018 | ||||||
MSO | 519 | 421 | 665 | |||||
IPA | 541 | 530 | 265 | |||||
ACO | 29 | 29 | 30 | |||||
Total lives under management | 1,089 | 980 | 960 |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income | $ | 81,001 | $ | 10,664 | $ | 83,988 | $ | 8,214 | ||||||||
Depreciation and amortization | 4,628 | 4,455 | 9,330 | 8,872 | ||||||||||||
Provision for income taxes | 31,858 | 4,209 | 33,453 | 2,801 | ||||||||||||
Interest expense | 2,673 | 311 | 5,541 | 522 | ||||||||||||
Interest income | (863 | ) | (474 | ) | (1,792 | ) | (797 | ) | ||||||||
EBITDA | 119,297 | 19,165 | 130,520 | 19,612 | ||||||||||||
(Income) loss from equity method investments | (834 | ) | 42 | (2,888 | ) | 892 | ||||||||||
Gain on sale of equity method investment | (99,647 | ) | — | (99,647 | ) | — | ||||||||||
Other income | (1,282 | ) | (24 | ) | (1,384 | ) | (211 | ) | ||||||||
Provider bonus payments | 2,000 | — | 2,000 | 10,000 | ||||||||||||
Provision for doubtful accounts | — | (2,314 | ) | — | (1,363 | ) | ||||||||||
Net loss adjustment for recently acquired IPAs | 4,070 | — | 8,833 | — | ||||||||||||
Adjusted EBITDA | $ | 23,604 | $ | 16,869 | $ | 37,434 | $ | 28,930 |
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands) | ||||||||
Year Ending | ||||||||
December 31, 2020 | ||||||||
Low | High | |||||||
Net income (1) | $ | 100,000 | $ | 110,000 | ||||
Depreciation and amortization | 18,000 | 20,000 | ||||||
Provision for income taxes | 30,000 | 31,000 | ||||||
Interest expense | 8,000 | 9,000 | ||||||
Interest income | (1,000 | ) | (3,000 | ) | ||||
EBITDA (1) | 155,000 | 167,000 | ||||||
Income from equity method investments (2) | (95,000 | ) | (94,000 | ) | ||||
Net loss adjustment for recently acquired IPAs | 15,000 | 17,000 | ||||||
Adjusted EBITDA | $75,000 | $90,000 |
Document and Entity Information |
Aug. 07, 2020 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 07, 2020 |
Entity Registrant Name | APOLLO MEDICAL HOLDINGS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-37392 |
Entity Tax Identification Number | 95-4472349 |
Entity Address, Address Line One | 1668 S. Garfield Avenue |
Entity Address, Address Line Two | 2nd Floor |
Entity Address, City or Town | Alhambra |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 91801 |
City Area Code | 626 |
Local Phone Number | 282-0288 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock |
Trading Symbol | AMEH |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001083446 |
Amendment Flag | false |
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