Apollo Medical Holdings, Inc. Reports Results of Operations for the Three Months and Six Months Ended July 31, 2012

GLENDALE, Calif., Sept. 14, 2012 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed") (OTCQB-AMEH), a leading provider of integrated medical management services in Los Angeles and Central California today announced financial results for the three and six months ended July 31, 2012.

Financial Highlights

Three months ended July 31, 2012

  • Net revenue increased 50.8% to $1.65 million for the three months ended July 31, 2012 compared to $1.09 million for the three months ended July 31, 2011
  • Gross profit increased 187.5% to $443,778 for the three months ended July 31, 2012 compared to $154,371 for the three months ended July 31, 2011
  • Operating loss decreased 24.4% to $63,026 for the three months ended July 31, 2012 compared to $83,339 for the three months ended July 31, 2011
  • Non-GAAP Adjusted EBITDA increased $96,276 to $22,850 for the three months ended July 31, 2012 compared to ($73,426) for the three months ended July 31, 2011

Six months ended July 31, 2012 results

  • Net revenue increased 53.8% to $3.28 million for the six months ended July 31, 2012 compared to $2.13 million for the six months ended July 31, 2011
  • Gross profit increased 202.9% to $746,963 for the six months ended July 31, 2012 compared to $246,575 for the six months ended July 31, 2011
  • Operating loss decreased 57.1% to $116,179 for the six months ended July 31, 2012 compared to $270,783 for the six months ended July 31, 2011
  • Non-GAAP Adjusted EBITDA increased $265,866 to $78,622 for the six months ended July 31, 2012 compared to ($187,244) for the six months ended July 31, 2011

Other Events

In the second quarter of 2012, ApolloMed's subsidiary, ApolloMed ACO, Inc., obtained designation as an Accountable Care Organization ("ACO") as defined under the Medicare Shared Savings Program ("MSSP").  ACOs emphasize the goal of improving care coordination and limiting the growth in Medicare expenditures. We believe that in establishing an ACO, ApolloMed will be able to leverage its medical management services and networks to improve patient outcomes and reduce expenditures.  ACOs participating in the MSSP will be able to share up to 50% of their achieved savings.

"We are excited with the development of ApolloMed ACO as well as the continued growth of our hospitalist services.  Our ACO recruited 38 more physicians which we submitted to CMS at the end of August.  This brings our total number of ACO physicians to almost 170.  We are also seeing robust demand for integrated medical management services as hospitals and health plans are looking for solutions to reduce costs through improved inpatient and post-discharge transitional care. We expect sequential growth going forward through new relationships and contracts," stated Warren Hosseinion, M.D., Chief Executive Officer of Apollo Medical Holdings.

APOLLO MEDICAL HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS






July 31,


January 31, 



2012


2012

CURRENT ASSETS





 Cash and cash equivalents 

$        259,095


$        164,361


 Accounts receivable, net 

998,255


994,118


 Advances 

14,693


2,140


 Due from affiliate 

8,800


5,504


 Prepaid expenses 

42,369


45,601


 Prepaid financing costs, current 

28,829


37,500


       Total current assets 

1,352,041


1,249,224







 Other assets 

1,450


1,563


 Property and equipment - net  

44,186


43,261


 Intangible assets 

38,000


38,000


 Goodwill 

32,000


32,000






TOTAL ASSETS

$     1,467,677


$     1,364,048







LIABILITIES AND STOCKHOLDERS' DEFICIT









CURRENT LIABILITIES:





 Accounts payable and accrued liabilities 

$        122,789


$        163,476


 Senior secured promissory note 

270,000


-


 10% Convertible notes payable, net 

923,282


596,366


  Derivative liability 

3,109,152


653,026


  Stock issuable  

27,234


90,000


  Due to officers 

18,742


12,400


      Total current liabilities 

4,471,199


1,515,268







 8% Convertible notes, net 

150,000


150,000


   Warrant liability 

454,585


120,000


      Total liabilities 

5,075,784


1,785,268






STOCKHOLDERS' DEFICIT





Preferred stock, par value $0.001 ; 





5,000,000  shares authorized; none issued

-


-


Common Stock, par value $0.001; 100,000,000 shares authorized, 





31,051,774 and 29,335,774 shares issued and outstanding





as of July 31, 2012 and January 31, 2012, respectively

31,052


29,336


Prepaid consulting

(40,920)


-


Additional paid-in-capital

1,741,549


1,429,051


Accumulated deficit 

(5,477,889)


(2,117,708)


      Total

(3,746,208)


(659,321)


Non-controlling interest

138,101


238,101


      Total stockholders' deficit

(3,608,107)


(421,220)






TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$     1,467,677


$     1,364,048

 

APOLLO MEDICAL HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JULY 31, 2012 and 2011






 Three months ended July 31, 


 Six months ended July 31,  










2012


2011


2012


2011

















REVENUES

$     1,649,451


$     1,093,708


$               3,281,295


$          2,133,400

COST OF SERVICES

1,205,673


939,336


2,534,332


1,886,825

GROSS PROFIT

443,778


154,371


746,963


246,575









Operating expenses:








     General and administrative

501,858


235,130


853,405


511,485

     Depreciation

4,946


2,580


9,737


5,873

Total operating expenses

506,804


237,710


863,142


517,358









LOSS FROM OPERATIONS

(63,026)


(83,339)


(116,179)


(270,783)









Other income (expense)








     Loss on change in fair value

     of derivative liabilities

(2,914,549)


-


(2,790,711)


-

     Interest expense

(205,221)


(31,603)


(408,047)


(63,177)

     Financing cost

(19,685)


(9,375)


(40,895)


(18,750)

    Other income

455


1,484


450


2,546

Total other expenses

(3,139,000)


(39,494)


(3,239,203)


(79,381)









LOSS BEFORE INCOME TAXES

(3,202,026)


(122,833)


(3,355,382)


(350,164)









Provision for Income Tax

800


-


4,800


1,600









NET LOSS

$    (3,202,826)


$      (122,833)


$              (3,360,182)


$            (351,764)









WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING -








BASIC AND DILUTED

31,015,904


28,985,774


30,780,543


28,819,752









BASIC AND DILUTED NET LOSS PER SHARE

$             (0.10)


$            (0.00)


$                       (0.11)


$                  (0.01)









 

APOLLO MEDICAL HOLDINGS, INC.

RECONCILIATION OF LOSS FROM OPERATIONS TO ADJUSTED EBITDA

FOR THE THREE AND SIX MONTHS ENDED JULY 31, 2012 and 2011






Three months ended July 31, 


Six months ended July 31, 








2012


2011


2012


2011







LOSS FROM OPERATIONS

$             (63,026)


$           (83,339)


$                 (116,179)


$            (270,783)

Depreciation expense

4,946


2,580


9,737


5,873

EBITDA

(58,080)


(80,759)


(106,442)


(264,910)









Issuance of shares for service

59,676


-


102,556


63,000

Non-cash stock option expense

21,254


7,333


82,508


14,666









ADJUSTED EBITDA

$               22,850


$           (73,426)


$                    78,622


$            (187,244)

*Use of Non-GAAP Financial Measures

In addition to containing results that are determined in accordance with accounting principles generally accepted in the United States of America (GAAP), this press release also contains non-GAAP financial measures. Adjusted EBITDA, as used in this press release, represents Loss from Operations before depreciation, adjusted for issuance of shares for service, stock option expense, amortization of debt discount and impairment of intangibles and losses on discontinued operations. Adjusted EBITDA is a key indicator used by management to evaluate operating performance. While adjusted EBITDA is not intended to replace any presentation included in the consolidated financial statements under GAAP and should not be considered an alternative to operating performance or an alternative to cash flow as a measure of liquidity, the Company believes this measure is useful to investors in assessing the Company's ongoing operating performance and working capital requirements. This calculation may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of adjusted EBITDA to the nearest comparable GAAP financial measure is included in the financial schedules accompanying this press release. The Non-GAAP financial measures, as well as other information in this press release, should be read in conjunction with the Company's financial statements filed with the Securities and Exchange Commission.

About Apollo Medical Holdings, Inc.

ApolloMed is a leading provider of integrated medical management services that improve the quality and efficiency of inpatient hospital care plus multi-disciplinary care management services targeting inefficiencies in healthcare payer and provider networks. The Company's integrated model combines hospitalist medicine, critical care medicine, case management and transition management that offers to help healthcare organizations engage in performance payments for utilization efficiency, quality of care objectives and shared accountability arrangements. The company's strategy is to capitalize on the growing market for hospital-based physicians and care management services. 

Media Contact:

Nidia Flores
818-396-8050

SOURCE Apollo Medical Holdings, Inc.



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