ALHAMBRA, Calif., May 5, 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
first quarter ended March 31, 2021.
Financial Highlights for the First Quarter Ended
March 31, 2021:
- Q1 earnings per share - diluted ("EPS - diluted") of
$0.30 per share, up 173% from
$0.11 per share for the prior-year
quarter
- Q1 total revenue of $176.1
million, up 7% from $165.1
million for the prior-year quarter
- Q1 net income increased to $14.5
million, from $3.0 million for
the prior-year quarter
- Q1 net income attributable to ApolloMed increased to
$13.2 million, from $4.1 million for the prior-year quarter
- Cash and cash equivalents of $205.9
million at March 31, 2021
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. This transaction is expected to close in
the second quarter of 2021.
Guidance:
ApolloMed continues to maintain the following guidance for total
revenue, net income, net income attributable to ApolloMed, 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. ApolloMed is also providing the
following guidance for the second quarter ending June 30, 2021.
(in
millions)
|
Three Months
Ending
|
|
Year
Ending
|
|
June 30,
2021
|
|
December 31,
2021
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Total
revenue
|
$
|
163.0
|
|
|
$
|
173.0
|
|
|
$
|
690.0
|
|
|
$
|
710.0
|
|
Net income
|
$
|
6.3
|
|
|
$
|
12.3
|
|
|
$
|
50.0
|
|
|
$
|
60.0
|
|
Net income
attributable to ApolloMed
|
$
|
6.5
|
|
|
$
|
10.5
|
|
|
$
|
35.0
|
|
|
$
|
45.0
|
|
EBITDA
|
$
|
15.6
|
|
|
$
|
21.6
|
|
|
$
|
95.0
|
|
|
$
|
105.0
|
|
Adjusted
EBITDA
|
$
|
20.4
|
|
|
$
|
24.4
|
|
|
$
|
115.0
|
|
|
$
|
125.0
|
|
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, "We
were pleased to begin 2021 with strong results, achieving 7% growth
on the top line and more than tripling net income attributable to
ApolloMed to $13.2 million in the
first quarter. This was primarily a result of organic membership
growth in our existing IPAs, which drove the increased capitation
revenue. Additionally, our risk pool settlements and incentives
revenue increased during the period due to decreased utilization of
our hospital partners. The bottom line also benefited from
$2.4 million in decreased general and
administrative expenses related to third-party consulting and
professional costs, which is a direct result of our technology
platform. We anticipate the trend of reduced utilization of
elective care services will continue to normalize as a larger
proportion of the population continues to get vaccinated against
COVID-19 and the country maintains its steady path toward
recovery."
Dr. Sim continued, "We continue to work closely with the team at
CAIPA MSO, in which we announced a strategic investment and
alliance in January 2021. This
partnership marks ApolloMed's entry into the New York market, and we anticipate closing
this transaction by the end of the 2021 second quarter. We continue
to evaluate opportunities where we can integrate like-minded
physicians and physician groups into our proven value-based care
model, and as we remain confident in our ability to meet our target
of 2 million managed lives by the end of 2021, we are reiterating
our previously provided guidance targets for the year. We are also
providing guidance for the upcoming quarter ending June 30, 2021, to provide greater visibility into
our forecasts given the fluctuations we are experiencing in light
of post-pandemic trends. We are committed to maintaining
transparency and an ongoing dialogue with the investment community
as we continue executing our growth initiatives in the months and
years to come."
GAAP Financial Highlights for the First Quarter Ended
March 31, 2021:
- Total revenue of $176.1 million
for the quarter ended March 31, 2021, an increase of 7%,
compared to $165.1 million for the
quarter ended March 31, 2020, primarily due to (i) a
$4.3 million increase in capitation
revenue primarily as a result of organic membership growth at
Allied Physicians of California, a
Professional Medical Corporation ("APC") and Alpha Care Medical
Group, Inc. and (ii) a $6.8 million
increase in risk pool settlements and incentives revenue driven by
reduced utilization of our hospital partners resulting from the
suspension of non-emergency medical procedures due to the continued
effects of the COVID-19 pandemic.
- Capitation revenue, net, of $144.7
million for the quarter ended March
31, 2021, an increase of 3%, compared to $140.4 million for the quarter ended March 31, 2020. Capitation revenue represented
82% of total revenue for the quarter ended March 31, 2021.
- Risk pool settlements and incentives revenue of $18.0 million for the quarter ended March 31, 2021, an increase of 60%, compared to
$11.2 million for the quarter ended
March 31, 2020.
- Net income increased to $14.5
million for the quarter ended March
31, 2021, compared to $3.0
million for the quarter ended March
31, 2020, which was primarily a result of increased organic
capitation and risk pool settlements and incentives revenues
mentioned above and decreased general and administrative expenses
of $2.4 million primarily
attributable to a reduction in third-party consulting and
professional costs due to efficiencies gained from the Company's
technology platform.
- Net income attributable to ApolloMed increased to $13.2 million for the quarter ended March 31, 2021, from $4.1
million for the quarter ended March
31, 2020. The increase from the prior-year quarter was
primarily due to the reasons stated above and increased preferred
dividends ApolloMed received from APC.
- EPS - diluted increased to $0.30
per share for the quarter ended March 31,
2021, from $0.11 per share for
the quarter ended March 31,
2020.
Non-GAAP Measures for the First Quarter Ended March 31,
2021:
- EBITDA increased to $26.6 million
for the quarter ended March 31, 2021,
from $11.2 million for the quarter
ended March 31, 2020.
- Adjusted EBITDA increased to $29.2
million for the quarter ended March
31, 2021, from $13.8 million
for the quarter ended March 31, 2020.
The increase from the prior-year quarter was primarily due to the
increase in pre-tax net income discussed above.
Balance Sheet Highlights:
- As of March 31, 2021, ApolloMed's
cash and cash equivalents and investments in marketable securities
increased to $272.8 million, working
capital increased to $243.9 million,
and total stockholders' equity increased to $349.7 million; from cash and cash equivalents
and investments in marketable securities of $261.2 million, working capital of $223.6 million and total stockholders' equity of
$330.9 million, respectively, as of
December 31, 2020.
See "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 ended March 31, 2021, please refer to ApolloMed's
Quarterly Report on Form 10-Q 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, May 5, 2021),
during which management will discuss the results of the first
quarter ended March 31, 2021. 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/44832/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.
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 the date of this press release, 144,466 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-powered
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 Allied Pacific of California IPA, Alpha
Care Medical Group, Inc. 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 second quarter ending June
30, 2021 and 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, 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)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
205,876
|
|
|
$
|
193,470
|
|
Investment in
marketable securities
|
|
66,931
|
|
|
67,695
|
|
Receivables,
net
|
|
16,448
|
|
|
7,058
|
|
Receivables, net –
related parties
|
|
66,872
|
|
|
49,260
|
|
Other
receivables
|
|
4,518
|
|
|
4,297
|
|
Prepaid expenses and
other current assets
|
|
9,630
|
|
|
16,797
|
|
|
|
|
|
|
Total current
assets
|
|
370,275
|
|
|
338,577
|
|
|
|
|
|
|
Noncurrent
assets
|
|
|
|
|
Land, property and
equipment, net
|
|
29,609
|
|
|
29,890
|
|
Intangible assets,
net
|
|
83,199
|
|
|
86,985
|
|
Goodwill
|
|
239,053
|
|
|
239,053
|
|
Loans
receivable
|
|
480
|
|
|
480
|
|
Loans receivable –
related parties
|
|
4,129
|
|
|
4,145
|
|
Investments in other
entities – equity method
|
|
42,615
|
|
|
43,292
|
|
Investments in
privately held entities
|
|
37,075
|
|
|
37,075
|
|
Restricted
cash
|
|
—
|
|
|
500
|
|
Operating lease
right-of-use assets
|
|
17,738
|
|
|
18,574
|
|
Other
assets
|
|
19,107
|
|
|
18,915
|
|
|
|
|
|
|
Total noncurrent
assets
|
|
473,005
|
|
|
478,909
|
|
|
|
|
|
|
Total
assets(1)
|
|
$
|
843,280
|
|
|
$
|
817,486
|
|
|
|
|
|
|
Liabilities,
mezzanine equity and stockholders' equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
40,234
|
|
|
$
|
36,143
|
|
Fiduciary accounts
payable
|
|
6,871
|
|
|
9,642
|
|
Medical
liabilities
|
|
51,479
|
|
|
50,330
|
|
Income taxes
payable
|
|
12,059
|
|
|
4,224
|
|
Dividend
payable
|
|
481
|
|
|
485
|
|
Finance lease
liabilities
|
|
109
|
|
|
102
|
|
Operating lease
liabilities
|
|
3,036
|
|
|
3,177
|
|
|
|
March 31,
2021
|
|
December
31,
2020
|
|
|
|
|
|
Current portion of
long-term debt
|
|
12,078
|
|
|
10,889
|
|
Total current
liabilities
|
|
126,347
|
|
|
114,992
|
|
|
|
|
|
|
Noncurrent
liabilities
|
|
|
|
|
Deferred tax
liability
|
|
10,038
|
|
|
10,959
|
|
Finance lease
liabilities, net of current portion
|
|
277
|
|
|
311
|
|
Operating lease
liabilities, net of current portion
|
|
15,147
|
|
|
15,865
|
|
Long-term debt, net of
current portion and deferred financing costs
|
|
226,937
|
|
|
230,211
|
|
|
|
|
|
|
Total noncurrent
liabilities
|
|
252,399
|
|
|
257,346
|
|
|
|
|
|
|
Total
liabilities(1)
|
|
378,746
|
|
|
372,338
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
Noncontrolling
interest in Allied Physicians of California, a Professional Medical
Corporation
|
|
114,847
|
|
|
114,237
|
|
|
|
|
|
|
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, 42,638,389
and 42,249,137 shares outstanding, excluding 12,425,639 and
12,323,164 treasury
shares, at March 31, 2021, and December 31, 2020,
respectively
|
|
43
|
|
|
42
|
|
Additional paid-in
capital
|
|
266,126
|
|
|
261,011
|
|
Retained
earnings
|
|
82,922
|
|
|
69,771
|
|
|
|
349,091
|
|
|
330,824
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
596
|
|
|
87
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
349,687
|
|
|
330,911
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and stockholders' equity
|
|
$
|
843,280
|
|
|
$
|
817,486
|
|
|
|
|
|
|
|
|
|
|
(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 $929.9 million and $801.3 million as of
March 31, 2021 and December 31, 2020, 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 $115.3 million and $111.3 million as of
March 31, 2021 and December 31, 2020,
respectively.
|
APOLLO MEDICAL
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
|
(UNAUDITED)
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2021
|
|
2020
|
Revenue
|
|
|
|
|
Capitation,
net
|
|
$
|
144,740
|
|
|
$
|
140,421
|
|
Risk pool settlements
and incentives
|
|
18,010
|
|
|
11,236
|
|
Management fee
income
|
|
8,550
|
|
|
8,815
|
|
Fee-for-service,
net
|
|
3,086
|
|
|
3,427
|
|
Other
income
|
|
1,672
|
|
|
1,206
|
|
|
|
|
|
|
Total
revenue
|
|
176,058
|
|
|
165,105
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Cost of services,
excluding depreciation and amortization
|
|
140,616
|
|
|
144,204
|
|
General and
administrative expenses
|
|
9,464
|
|
|
11,834
|
|
Depreciation and
amortization
|
|
4,197
|
|
|
4,702
|
|
|
|
|
|
|
Total
expenses
|
|
154,277
|
|
|
160,740
|
|
|
|
|
|
|
Income from
operations
|
|
21,781
|
|
|
4,365
|
|
|
|
|
|
|
Other (expense)
income
|
|
|
|
|
(Loss) income from
equity method investments
|
|
(677)
|
|
|
2,054
|
|
Interest
expense
|
|
(1,523)
|
|
|
(2,868)
|
|
Interest
income
|
|
349
|
|
|
929
|
|
Other
income
|
|
1,304
|
|
|
102
|
|
|
|
|
|
|
Total other (expense)
income, net
|
|
(547)
|
|
|
217
|
|
|
|
|
|
|
Income before
provision for income taxes
|
|
21,234
|
|
|
4,582
|
|
|
|
|
|
|
Provision for income
taxes
|
|
6,776
|
|
|
1,595
|
|
|
|
|
|
|
Net
income
|
|
14,458
|
|
|
2,987
|
|
|
|
|
|
|
Net income (loss)
attributable to noncontrolling interest
|
|
1,307
|
|
|
(1,065)
|
|
|
|
|
|
|
Net income
attributable to Apollo Medical Holdings, Inc.
|
|
$
|
13,151
|
|
|
$
|
4,052
|
|
|
|
|
|
|
Earnings per share
– basic
|
|
$
|
0.31
|
|
|
$
|
0.11
|
|
|
|
|
|
|
Earnings per share
– diluted
|
|
$
|
0.30
|
|
|
$
|
0.11
|
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA (in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31, 2021
|
|
|
2021
|
|
2020
|
|
|
|
|
|
Net income
|
|
$
|
14,458
|
|
|
$
|
2,987
|
|
Interest
expense
|
|
1,523
|
|
|
2,868
|
|
Interest
income
|
|
(349)
|
|
|
(929)
|
|
Provision for income
taxes
|
|
6,776
|
|
|
1,595
|
|
Depreciation and
amortization
|
|
4,197
|
|
|
4,702
|
|
EBITDA
|
|
26,605
|
|
|
11,223
|
|
|
|
|
|
|
Loss (income) from
equity method investments
|
|
677
|
|
|
(2,054)
|
|
Other income
|
|
(1,304)
|
|
|
(102)
|
|
Net loss adjustment for
recently acquired IPAs
|
|
3,194
|
|
|
4,760
|
|
Adjusted
EBITDA
|
|
$
|
29,172
|
|
|
$
|
13,827
|
|
Guidance
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA
|
|
|
Three Months
Ending
|
|
Year
Ending
|
|
|
June 30,
2021
|
|
December 31,
2021
|
(in
thousands)
|
|
|
|
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
Net income
|
|
$
|
6,300
|
|
|
$
|
12,300
|
|
|
$
|
50,000
|
|
|
$
|
60,000
|
|
Interest
expense
|
|
1,500
|
|
|
1,600
|
|
|
8,000
|
|
|
8,500
|
|
Interest
income
|
|
(300)
|
|
|
(500)
|
|
|
(3,000)
|
|
|
(5,000)
|
|
Provision for income
taxes
|
|
3,750
|
|
|
3,800
|
|
|
23,000
|
|
|
24,000
|
|
Depreciation and
amortization
|
|
4,350
|
|
|
4,400
|
|
|
17,000
|
|
|
17,500
|
|
EBITDA
|
|
15,600
|
|
|
21,600
|
|
|
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
|
|
4,800
|
|
|
2,800
|
|
|
14,500
|
|
|
15,000
|
|
Adjusted
EBITDA
|
|
$
|
20,400
|
|
|
$
|
24,400
|
|
|
$
|
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.