ALHAMBRA, Calif., March 10, 2021 /PRNewswire/ -- Apollo
Medical Holdings, Inc. ("ApolloMed," and together with its
subsidiaries and affiliated entities, the "Company") (NASDAQ:
AMEH), a leading physician-centric, technology-powered healthcare
management company, today announced its consolidated financial
results for the fourth quarter and year ended December 31, 2020.
Financial Highlights for the Fourth Quarter and Year Ended
December 31, 2020:
- Company exceeded all previously disclosed guidance metrics for
full-year 2020 (revenue, net income, EBITDA, and adjusted
EBITDA)
- Total revenue of $687.2 million
for the year ended December 31, 2020,
up 23% from $560.6 million for the
prior year
- Net income of $122.3 million for
the year ended December 31, 2020,
from $17.7 million for the prior
year
- Net income attributable to ApolloMed increased to $37.9 million for the year ended December 31, 2020, up 168% from $14.1 million for the prior year
- Q4 total revenue of $176.8
million, compared to $178.8
million for the prior-year quarter
- Q4 net income of $12.9 million,
compared to net loss of $1.3 million
for the prior-year quarter
- Q4 net income attributable to ApolloMed of $10.1 million, up 51% from $6.7 million for the prior-year quarter
- Cash and cash equivalents of $193.5
million at December 31,
2020
Recent Operating Highlights:
- In January 2021, ApolloMed
announced a strategic alliance and investment in New York-based CAIPA MSO, LLC ("CAIPA MSO")
whereby ApolloMed will own 30% of the post-closing total interests
in CAIPA MSO on a fully diluted basis. With this partnership,
ApolloMed will provide its proprietary technologies to CAIPA for
the benefit of its physicians. The strategic alliance will provide
ApolloMed with a foothold in the state of New York with the potential for expanding the
alliance in the future.
- In February 2021, ApolloMed
appointed Brandon Sim as its Chief
Operating Officer, pursuant to which he assumed responsibility for
the Company's overall strategy, end-to-end service delivery and all
non-clinical operations. Mr. Sim will also continue in his role of
Chief Technology Officer, leading all technology aspects of
ApolloMed's business, including software engineering, information
technology, data management and electronic data interchange
functions.
- In March 2021, ApolloMed
appointed Jeremy R. Jackson, M.D.,
to the newly created position of Chief of Staff. Dr. Jackson will
work closely with the executive team and play a key role in special
projects for ApolloMed's technology platform, business development,
strategy and operations.
Guidance:
ApolloMed is providing the following guidance for total revenue,
net income, EBITDA, and Adjusted EBITDA, based on the Company's
existing business, current view of existing market conditions and
assumptions for the year ending December 31,
2021.
($ in
millions)
|
2020 Actual
Results
|
|
2021 Guidance
Range
|
Total
revenue
|
$687.2
|
|
$690.0 -
$710.0
|
Net income
|
$122.3
(1)
|
|
$50.0 -
$60.0
|
Net income
attributable to ApolloMed
|
$37.9
|
|
$35.0 -
$45.0
|
EBITDA
|
$203.5
(1)
|
|
$95.0 -
$105.0
|
Adjusted
EBITDA
|
$126.5
|
|
$115.0 -
$125.0
|
|
(1) 2020 net income and EBITDA
include pre-tax gain on sale of a small health plan of
approximately $99.6 million.
|
See "Guidance Reconciliation of Net Income to EBITDA and
Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for
additional information. There can be no assurance that actual
amounts will not be materially higher or lower than these
expectations. See "Forward-Looking Statements" below for additional
information.
Management Commentary:
Kenneth Sim, M.D., Executive
Chairman and Co-Chief Executive Officer of ApolloMed, stated, "As
the pandemic continues to have an impact on much of the world, our
team at ApolloMed, from the front line workers to the support staff
behind the scenes, remains committed to providing our member
population with the quality care they have come to expect from our
organization, and we are pleased to be doing our part in expediting
the COVID-19 vaccination process in the geographic areas we serve.
Despite the unprecedented circumstances of 2020, ApolloMed achieved
record top and bottom line growth as a result of our NGACO's
phenomenal performance in 2019 and our acquisitions of Alpha Care
Medical Group and Accountable Health Care IPA, a Professional
Medical Corporation, in 2019. We also benefited from a trend of
decreased utilization as the pandemic encouraged members to seek
only essential or urgent care and from increased operational
efficiencies as a direct result of our proprietary
technologies."
Dr. Sim continued, "Subsequent to year-end, we announced a
strategic investment and alliance with CAIPA MSO in New York that we are very excited about. This
partnership represents ApolloMed's entry into the New York market and the first phase of our
nationwide expansion plan. Our leadership team has been focused on
profitably operating a value-based care model in the state of
California for more than two
decades. We believe we are well positioned with our
technology-powered platform to execute on the growth opportunities
we see within the space as we seek to replicate the success of our
business model across the country with a goal of nearly doubling
the number of managed lives by the end of 2021. In that regard, we
are pleased to provide guidance for 2021 but want to note that
these estimates do not account for any potential acquisitions or
other major business transactions we may complete over the course
of this year. As new developments that may impact guidance
materialize, we are committed to remaining open and transparent and
will re-evaluate and communicate any changes in guidance as
appropriate."
GAAP Financial Highlights for the Year Ended
December 31, 2020:
- Total revenue of $687.2 million
for the year ended December 31, 2020,
an increase of 23%, compared to $560.6
million for the year ended December
31, 2019, primarily due to (i) a shared savings settlement
of $19.8 million earned from
ApolloMed's participation in an attribution-based risk sharing
model through its NGACO, (ii) the acquisitions of Alpha Care
Medical Group and Accountable Health Care IPA in 2019, which
contributed an additional $52.4
million and $29.0 million in
capitation revenue, respectively, and (iii) organic revenue growth
at Allied Physicians of California IPA ("APC"), one of ApolloMed's
affiliated IPAs.
- Capitation revenue, net, of $557.3
million for the year ended December
31, 2020, an increase of 23%, compared to $454.2 million for the year ended December 31, 2019. Capitation revenue represented
81% of total revenue for the year ended December 31, 2020.
- Risk pool settlements and incentives revenue of $77.4 million for the year ended December 31, 2020, an increase of 51%, compared
to $51.1 million for the year ended
December 31, 2019, which was
primarily the result of the aforementioned $19.8 million shared savings settlement.
- Net income increased to $122.3
million for the year ended December
31, 2020, from $17.7 million
for the year ended December 31, 2019.
The increase from the prior year of $99.8
million was primarily due to the gain on sale of equity
method investment in Universal Care, Inc.
- Net income attributable to ApolloMed increased to $37.9 million for the year ended December 31, 2020, from $14.1 million for the year ended December 31, 2019, primarily due to an increase
in preferred dividends ApolloMed received from APC as a result of
an increase in APC's earnings in 2020.
- Earnings per share - diluted ("EPS - diluted") increased to
$1.01 per share for the year ended
December 31, 2020, from $0.39 per share for the year ended December 31, 2019.
GAAP Financial Highlights for the Fourth Quarter Ended
December 31, 2020:
- Total revenue of $176.8 million
for the quarter ended December 31,
2020, compared to $178.8
million for the quarter ended December 31, 2019.
- Capitation revenue, net, of $140.9
million for the quarter ended December 31, 2020, compared to $148.6 million for the quarter ended December 31, 2019. The decrease was primarily
driven by lower capitation revenue contributions from the Company's
NGACO due to decreased utilization in the ongoing pandemic
environment. Capitation revenue represented 80% of total revenue
for the quarter ended December 31,
2020.
- Risk pool settlements and incentives revenue of $23.2 million for the quarter ended December 31, 2020, an increase of 25%, compared
to $18.5 million for the quarter
ended December 31, 2019.
- Net income of $12.9 million for
the quarter ended December 31, 2020,
compared to a net loss of $1.3
million for the quarter ended December 31, 2019.
- Net income attributable to ApolloMed increased 51% to
$10.1 million for the quarter ended
December 31, 2020, from $6.7 million for the quarter ended December 31, 2019, primarily due to an increase
in preferred dividends ApolloMed received from APC as a result of
an increase in APC's fourth quarter earnings.
- EPS - diluted increased to $0.27
per share for the quarter ended December 31,
2020, from $0.18 per share for
the quarter ended December 31,
2019.
Non-GAAP Measures for the Year Ended December 31,
2020:
- EBITDA increased to $203.5
million for the year ended December
31, 2020, from $46.8 million
for the year ended December 31,
2019.
- Adjusted EBITDA increased to $126.5
million for the year ended December
31, 2020, from $74.5 million
for the year ended December 31, 2019.
The increase from the prior year was primarily due to the increases
in pre-tax net income and the impact of the IPAs acquired in 2019
to increase our strategic footprint. The Company continues to work
toward fully integrating the IPAs it acquired in 2019 and expects
to achieve significant progress on its integration efforts in
2021.
Non-GAAP Measures for the Fourth Quarter Ended
December 31, 2020:
- EBITDA increased to $30.4 million
for the quarter ended December 31,
2020, from $7.6 million for
the quarter ended December 31,
2019.
- Adjusted EBITDA increased to $35.7
million for the quarter ended December 31, 2020, from $20.9 million for the quarter ended December 31, 2019. The increase from the prior
year was primarily due to the increase in pre-tax net income,
specifically from increased risk pool settlements and incentives
revenue and decreased cost of services as a result of the impact of
COVID-19.
Balance Sheet Highlights:
- As of December 31, 2020, ApolloMed's cash and cash
equivalents and investments in marketable securities increased to
$261.2 million, working capital was
$223.6 million, and total
stockholders' equity increased to $330.9
million; from cash and cash equivalents and investments in
marketable securities of $219.7
million, working capital of $223.7 million and total stockholders'
equity of $192.3 million,
respectively, as of December 31,
2019.
See "Guidance Reconciliation of Net Income to EBITDA and
Adjusted EBITDA" and "Use of Non-GAAP Financial Measures" below for
additional information. There can be no assurance that actual
amounts will not be materially higher or lower than these
expectations. See "Forward-Looking Statements" below for additional
information.
For more details on ApolloMed's financial results for the
quarter and year ended December 31, 2020, please refer to
ApolloMed's Annual Report on Form 10-K to be filed with the U.S.
Securities Exchange Commission ("SEC"), which is accessible at
www.sec.gov.
Conference Call and Webcast Information:
ApolloMed will host a conference call at 2 p.m. PT/5 p.m. ET
today (Wednesday, March 10, 2021),
during which management will discuss the results of the quarter and
year ended December 31, 2020. To
participate in the conference call, please use the following
dial-in numbers about 5 minutes prior to the scheduled conference
call time:
U.S. & Canada
(Toll-Free):
|
|
+1 (877)
407-3979
|
International
(Toll):
|
|
+1 (412)
902-0042
|
The conference call can also be accessed at:
https://78449.themediaframe.com/dataconf/productusers/ameh/mediaframe/43652/indexl.html
An accompanying slide presentation will be made available 30
minutes prior to the start of the conference call on the "Events
& Presentations" page of the Company's website
(https://apollomed.net/eventspresentation) and will be filed as an
exhibit to ApolloMed's current report on Form 8-K to be filed with
the SEC, accessible at www.sec.gov.
Those who are unable to attend the live conference call may
access the recording at the above webcast link, which will be made
available shortly after the conclusion of the call, or by phone
using the below information:
Conference ID#: 13716559
Conference Call Replay: 877-660-6853 (domestic) or 201-612-7415
(international)
Expiration Date: 3/24/2021
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
income attributable to noncontrolling interests is disclosed in the
Company's consolidated statements of income.
Note About Stockholders' Equity, Certain Treasury Stock and
Earnings Per Share
As of December 31, 2020, 276,038
holdback shares have not been issued to certain former shareholders
of the Company's subsidiary, Network Medical Management, Inc.
("NMM"), who were NMM shareholders at the time of closing of the
merger, as they have yet to submit properly completed letters of
transmittal to ApolloMed in order to receive their pro rata portion
of ApolloMed's common stock and warrants as contemplated under that
certain Agreement and Plan of Merger, dated December 21, 2016, among ApolloMed, NMM, Apollo
Acquisition Corp. ("Merger Subsidiary") and Kenneth Sim, M.D., as amended, pursuant to which
Merger Subsidiary merged with and into NMM, with NMM as the
surviving corporation. 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 ApolloMed is legally obligated to issue
these shares in connection with the merger.
Shares of ApolloMed's common stock owned by APC, 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, technology-enabled
healthcare management company. Leveraging its proprietary
population health management and healthcare delivery platform,
ApolloMed operates an integrated, value-based healthcare model,
which aims to empower the providers in its network to deliver the
highest quality of care to its patients in a cost-effective
manner.
Headquartered in Alhambra,
California, ApolloMed's subsidiaries include management
services organizations ("MSOs"), affiliated independent practice
associations ("IPAs") and a Next Generation Accountable Care
Organization ("NGACO"). NMM and Apollo Medical Management, Inc. are
the administrative and managerial services companies for the
affiliated physician owned professional corporations that contract
with independent physicians to deliver medical services in-office
and virtually under the APC, Alpha Care Medical Group and
Accountable Health Care IPA brands. These affiliates are supported
by ApolloMed Hospitalists, a Medical Corporation. Our NGACO
operates under the APA ACO, Inc. brand and participates in the
Centers for Medicare & Medicaid Services program that allows
provider groups to assume higher levels of financial risk and
potentially achieve a higher reward from participation in the
program's attribution-based risk sharing model. 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 guidance
for the year ending December 31, 2021, continued growth,
acquisition strategy, ability to deliver sustainable long-term
value, ability to respond to the changing environment, operational
focus, strategic growth plans and merger integration efforts, as
well as the impact of the COVID-19 pandemic on the Company's
business, operations and financial results. 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 SEC, including, without limitation the risk factors
discussed in the Company's Annual Report on Form
10-K for the year ended December 31, 2020, filed with the SEC
and any subsequent quarterly reports on Form 10-Q.
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations
(626) 943-6491
investors@apollomed.net
Carolyne Sohn, The Equity
Group
(415) 568-2255
csohn@equityny.com
APOLLO MEDICAL
HOLDINGS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(IN THOUSANDS, EXCEPT
SHARE AND PER SHARE DATA)
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
193,470
|
|
|
$
|
103,189
|
|
Restricted
cash
|
|
—
|
|
|
75
|
|
Investment in
marketable securities
|
|
67,695
|
|
|
116,539
|
|
Receivables,
net
|
|
7,058
|
|
|
11,004
|
|
Receivables, net –
related parties
|
|
49,260
|
|
|
48,136
|
|
Other
receivables
|
|
4,297
|
|
|
16,885
|
|
Prepaid expenses and
other current assets
|
|
16,747
|
|
|
10,315
|
|
Loans
receivable
|
|
50
|
|
|
22,925
|
|
|
|
|
|
|
Total current
assets
|
|
$
|
338,577
|
|
|
$
|
329,068
|
|
|
|
|
|
|
Noncurrent
assets
|
|
|
|
|
Land, property and
equipment, net
|
|
29,890
|
|
|
12,130
|
|
Intangible assets,
net
|
|
86,985
|
|
|
103,012
|
|
Goodwill
|
|
239,053
|
|
|
238,505
|
|
Loan
receivable
|
|
480
|
|
|
—
|
|
Loans receivable -
related parties
|
|
4,145
|
|
|
—
|
|
Investments in other
entities – equity method
|
|
43,292
|
|
|
28,427
|
|
Investments in
privately held entities
|
|
37,075
|
|
|
896
|
|
Restricted
cash
|
|
500
|
|
|
746
|
|
Operating lease
right-of-use assets
|
|
18,574
|
|
|
14,248
|
|
Other
assets
|
|
18,915
|
|
|
1,681
|
|
|
|
|
|
|
Total noncurrent
assets
|
|
478,909
|
|
|
399,645
|
|
|
|
|
|
|
Total
assets(1)
|
|
$
|
817,486
|
|
|
$
|
728,713
|
|
|
|
|
|
|
Liabilities,
mezzanine equity and stockholders' equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
36,143
|
|
|
$
|
27,279
|
|
Fiduciary accounts
payable
|
|
9,642
|
|
|
2,027
|
|
Medical
liabilities
|
|
50,330
|
|
|
58,725
|
|
Income taxes
payable
|
|
4,224
|
|
|
4,529
|
|
Dividend
payable
|
|
485
|
|
|
271
|
|
Finance lease
liabilities
|
|
102
|
|
|
102
|
|
Operating lease
liabilities
|
|
3,177
|
|
|
2,991
|
|
|
|
|
|
|
|
|
|
December
31,
2020
|
|
December
31,
2019
|
|
|
|
|
|
Current portion of
long-term debt
|
|
10,889
|
|
|
9,500
|
|
Total current
liabilities
|
|
114,992
|
|
|
105,424
|
|
|
|
|
|
|
Noncurrent
liabilities
|
|
|
|
|
Deferred tax
liability
|
|
10,959
|
|
|
18,269
|
|
Finance lease
liabilities, net of current portion
|
|
311
|
|
|
415
|
|
Operating lease
liabilities, net of current portion
|
|
15,865
|
|
|
11,373
|
|
Long-term debt, net of
current portion and deferred financing costs
|
|
230,211
|
|
|
232,172
|
|
|
|
|
|
|
Total noncurrent
liabilities
|
|
257,346
|
|
|
262,229
|
|
|
|
|
|
|
Total
liabilities(1)
|
|
372,338
|
|
|
367,653
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
Noncontrolling
interest in Allied Physicians of California, a Professional
Medical
Corporation
|
|
114,237
|
|
|
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, 42,249,137
and 35,908,057 shares outstanding, excluding
12,323,164 and 17,458,810 treasury
shares, at December 31, 2020, and
December 31, 2019, respectively
|
|
42
|
|
|
36
|
|
Additional paid-in
capital
|
|
261,011
|
|
|
159,608
|
|
Retained
earnings
|
|
69,771
|
|
|
31,905
|
|
|
|
330,824
|
|
|
191,549
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
87
|
|
|
786
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
330,911
|
|
|
192,335
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and stockholders' equity
|
|
$
|
817,486
|
|
|
$
|
728,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The Company's consolidated
balance sheets include the assets and liabilities of its
consolidated variable interest entities ("VIEs"). The consolidated
balance sheets include total assets that can be used only to settle
obligations of the Company's consolidated VIEs totaling $778.9
million and $849.3 million as of December 31, 2020 and
December 31, 2019, respectively, and total liabilities of the
Company's consolidated VIEs for which creditors do not have
recourse to the general credit of the primary beneficiary of $109.3
million and $114.5 million as of December 31, 2020 and
December 31, 2019, respectively.
|
APOLLO MEDICAL
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
|
|
|
|
|
|
|
|
Capitation,
net
|
|
$
|
140,923
|
|
|
$
|
148,620
|
|
|
$
|
557,326
|
|
|
$
|
454,168
|
|
Risk pool settlements
and incentives
|
|
23,212
|
|
|
18,458
|
|
|
77,367
|
|
|
51,098
|
|
Management fee
income
|
|
8,638
|
|
|
6,801
|
|
|
34,850
|
|
|
34,668
|
|
Fee-for-service,
net
|
|
3,249
|
|
|
3,416
|
|
|
12,683
|
|
|
15,475
|
|
Other
income
|
|
760
|
|
|
1,456
|
|
|
4,954
|
|
|
5,209
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
176,782
|
|
|
178,751
|
|
|
687,180
|
|
|
560,618
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
137,105
|
|
|
151,880
|
|
|
539,211
|
|
|
467,805
|
|
General and
administrative expenses
|
|
9,456
|
|
|
11,451
|
|
|
49,116
|
|
|
41,482
|
|
Depreciation and
amortization
|
|
4,346
|
|
|
4,487
|
|
|
18,350
|
|
|
18,280
|
|
Provision for doubtful
accounts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,363)
|
|
Impairment of
intangibles
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,994
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
150,907
|
|
|
167,818
|
|
|
606,677
|
|
|
528,198
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
25,875
|
|
|
10,933
|
|
|
80,503
|
|
|
32,420
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Income (loss) from
equity method investments
|
|
403
|
|
|
(8,063)
|
|
|
3,694
|
|
|
(6,901)
|
|
Interest
expense
|
|
(1,492)
|
|
|
(3,383)
|
|
|
(9,499)
|
|
|
(4,733)
|
|
Interest
income
|
|
269
|
|
|
718
|
|
|
2,813
|
|
|
2,024
|
|
Gain on sale of equity
method investment
|
|
193
|
|
|
—
|
|
|
99,839
|
|
|
—
|
|
Other (loss)
income
|
|
(437)
|
|
|
198
|
|
|
1,077
|
|
|
3,030
|
|
|
|
|
|
|
|
|
|
|
Total other (expense)
income, net
|
|
(1,064)
|
|
|
(10,530)
|
|
|
97,924
|
|
|
(6,580)
|
|
|
|
|
|
|
|
|
|
|
Income before
provision for income taxes
|
|
24,811
|
|
|
403
|
|
|
178,427
|
|
|
25,840
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
11,903
|
|
|
1,683
|
|
|
56,107
|
|
|
8,167
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
12,908
|
|
|
(1,280)
|
|
|
122,320
|
|
|
17,673
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
2,851
|
|
|
(8,007)
|
|
|
84,454
|
|
|
3,557
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Apollo Medical Holdings, Inc.
|
|
$
|
10,057
|
|
|
$
|
6,727
|
|
|
$
|
37,866
|
|
|
$
|
14,116
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
– basic
|
|
$
|
0.28
|
|
|
$
|
0.19
|
|
|
$
|
1.04
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
– diluted
|
|
$
|
0.27
|
|
|
$
|
0.18
|
|
|
$
|
1.01
|
|
|
$
|
0.39
|
|
APOLLO MEDICAL
HOLDINGS, INC.
|
SUPPLEMENTAL
INFORMATION
|
|
|
|
|
|
|
Capitated
Membership
|
|
|
|
|
|
(in
thousands)
|
December 31,
2020
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
|
|
MSO
|
543
|
|
|
421
|
|
|
665
|
|
IPA
|
558
|
|
|
530
|
|
|
265
|
|
ACO
|
29
|
|
|
29
|
|
|
30
|
|
|
|
|
|
|
|
Total lives under
management
|
1,130
|
|
|
980
|
|
|
960
|
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
(in
thousands)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
12,908
|
|
|
$
|
(1,280)
|
|
|
$
|
122,320
|
|
|
$
|
17,673
|
|
Depreciation and
amortization
|
|
4,346
|
|
|
4,487
|
|
|
18,350
|
|
|
18,280
|
|
Provision for income
taxes
|
|
11,903
|
|
|
1,683
|
|
|
56,107
|
|
|
8,167
|
|
Interest expense
|
|
1,492
|
|
|
3,383
|
|
|
9,499
|
|
|
4,733
|
|
Interest income
|
|
(269)
|
|
|
(718)
|
|
|
(2,813)
|
|
|
(2,024)
|
|
EBITDA
|
|
$
|
30,380
|
|
|
$
|
7,555
|
|
|
$
|
203,463
|
|
|
$
|
46,829
|
|
|
|
|
|
|
|
|
|
|
(Income) loss from equity
method investments
|
|
$
|
(403)
|
|
|
$
|
8,063
|
|
|
$
|
(3,694)
|
|
|
$
|
6,901
|
|
Gain from
investments – fair value adjustments
|
|
(193)
|
|
|
—
|
|
|
(99,839)
|
|
|
—
|
|
Other loss
(income)
|
|
437
|
|
|
(198)
|
|
|
(1,077)
|
|
|
(3,030)
|
|
Provider bonus
payments
|
|
—
|
|
|
—
|
|
|
8,500
|
|
|
12,100
|
|
Impairment of
intangibles
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,994
|
|
Provision for doubtful
accounts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,363)
|
|
Net loss adjustment for
recently acquired IPAs
|
|
5,518
|
|
|
5,507
|
|
|
19,192
|
|
|
11,070
|
|
Adjusted
EBITDA
|
|
$
|
35,739
|
|
|
$
|
20,927
|
|
|
$
|
126,545
|
|
|
$
|
74,501
|
|
Guidance
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA
|
|
|
Year
Ending
|
|
|
December 31,
2021
|
(in
thousands)
|
|
|
|
|
Low
|
|
High
|
Net
income
|
|
$
|
50,000
|
|
|
$
|
60,000
|
|
Depreciation and
amortization
|
|
17,000
|
|
|
17,500
|
|
Provision for income
taxes
|
|
23,000
|
|
|
24,000
|
|
Interest expense
|
|
8,000
|
|
|
8,500
|
|
Interest income
|
|
(3,000)
|
|
|
(5,000)
|
|
EBITDA
|
|
95,000
|
|
|
105,000
|
|
|
|
|
|
|
Income from equity method
investments
|
|
(500)
|
|
|
(1,000)
|
|
Provider bonus
payments
|
|
6,000
|
|
|
6,000
|
|
Net loss adjustment for
recently acquired IPAs
|
|
14,500
|
|
|
15,000
|
|
Adjusted
EBITDA
|
|
$
|
115,000
|
|
|
$
|
125,000
|
|
Use of Non-GAAP Financial Measures
This press release contains the non-GAAP financial measures
EBITDA and adjusted EBITDA, of which the most directly comparable
financial measure presented in accordance with U.S. generally
accepted accounting principles ("GAAP") is net income. These
measures are not in accordance with, or alternatives to GAAP, and
may be different from other non-GAAP financial measures used by
other companies. The Company uses adjusted EBITDA as a supplemental
performance measure of our operations, for financial and
operational decision-making, and as a supplemental means of
evaluating period-to-period comparisons on a consistent basis.
Adjusted EBITDA is calculated as earnings before interest, taxes,
depreciation and amortization, excluding income from equity method
investments, provider bonuses, impairment of intangibles, provision
for doubtful accounts and other income earned that are not related
to the Company's normal operations. Adjusted EBITDA also excludes
the effect on EBITDA of certain IPAs we recently acquired.
The Company believes the presentation of these non-GAAP
financial measures provides investors with relevant and useful
information, as it allows investors to evaluate the operating
performance of the business activities without having to account
for differences recognized because of non-core or non-recurring
financial information. When GAAP financial measures are viewed in
conjunction with non-GAAP financial measures, investors are
provided with a more meaningful understanding of the Company's
ongoing operating performance. In addition, these non-GAAP
financial measures are among those indicators the Company uses as a
basis for evaluating operational performance, allocating resources,
and planning and forecasting future periods. Non-GAAP financial
measures are not intended to be considered in isolation, or as a
substitute for, GAAP financial measures. To the extent this release
contains historical or future non-GAAP financial measures, the
Company has provided corresponding GAAP financial measures for
comparative purposes. The reconciliation between certain GAAP and
non-GAAP measures is provided above.
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SOURCE Apollo Medical Holdings, Inc.