Apollo Medical Holdings Reports 29% Revenue Growth Year Over Year For The 2nd Quarter Of Fiscal Year 2017
Revenue of $14.6 million, an 18% Increase from the Previous Quarter
GLENDALE, Calif., Nov. 14, 2016 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed" or "the Company") (OTC: AMEH), an integrated population health management company, today announced its fiscal year 2017 2nd quarter financial results for the three months ended September 30, 2016.
Financial Highlights for the Three Months Ended September 30, 2016 Compared to the Three Months Ended September 30, 2015 (unaudited):
- Net revenue of $14.6 million, an increase of 29% as compared to $11.4 million in the comparable period of 2015.
- Loss from operations of $2.2 million as compared to a $0.4 million loss in the comparable period of 2015. The increase in loss is primarily due to start-up costs associated with multiple new hospitalist contracts, the temporary use of locum tenens physicians, which on average cost 70% more than employed physicians to staff these new contracts and the lag time in collections from payors. Additionally, cost of services was negatively impacted by a higher claims expense in Maverick Medical Group of approximately $0.6 million. The Company also increased capital investment in its population health management infrastructure and personnel in pursuit of the Centers for Medicare & Medicaid Services' ("CMS") Next Generation ACO Model. The Company intends to participate in the All-Inclusive Population-Based Payment ("AIPBP") payment mechanism, in which CMS will estimate the total annual expenditures for the Next Gen ACO's patients and then pay that projected amount to the Next Gen ACO in a per-beneficiary, per-month ("PBPM") payment. The Next Gen ACO would then be responsible for paying all Part A and Part B costs for contracted providers. The Next Gen ACO program is slated to begin in January 2017.
- On September 30, 2016, the Company had total assets of $15.0 million, including cash and cash equivalents of $3.8 million. The company has no long-term debt.
Financial Highlights for the Six Months Ended September 30, 2016 Compared to the Six Months Ended September 30, 2015 (unaudited):
- Net revenue of $27.0 million, an increase of 25% as compared to $21.6 million in the comparable period of 2015.
- Loss from operations of $3.9 million as compared to $2.1 million loss in the comparable period of 2015.
"We are pleased with our continued year-over-year and quarter-over-quarter revenue growth," stated Warren Hosseinion, M.D., Chief Executive Officer of Apollo Medical Holdings. "Our goal is to staff the new hospitalist contracts with employed, rather than locum tenens, physicians and anticipate that it will take 3-4 months at each site. We are also continuing to implement operational efficiencies across our business segments. We are optimistic about the Next Gen ACO Model, which could be transformative for ApolloMed. Lastly, in regards to the election results, we believe that the ideas behind value-based care, including reducing the per capita cost of healthcare, improving the quality of care and improving patient satisfaction, are here to stay with or without the Affordable Care Act."
"The movement towards value-based care is accelerating in the United States. We are experiencing new opportunities within several of our service offerings, in particular our hospitalist and population health management segments," stated Gary Augusta, Executive Chairman of Apollo Medical Holdings. "ApolloMed has been investing and will continue to invest in the required assets and operations to take advantage of the continued transformation to value-based care."
For more details on ApolloMed's 2017 fiscal year 2nd quarter results, please refer to the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities Exchange Commission and accessible at www.sec.gov.
| APOLLO MEDICAL HOLDINGS, INC. |
||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
| (UNAUDITED) |
||||||||
| September 30, |
March 31, |
|||||||
| 2016 |
2016 |
|||||||
| ASSETS |
||||||||
| Cash and cash equivalents |
$ |
3,793,502 |
$ |
9,270,010 |
||||
| Accounts receivable, net of allowance for doubtful accounts of $671,000 and $601,000 at September 30, 2016 and March 31, 2016, respectively |
4,578,114 |
3,392,941 |
||||||
| Other receivables |
290,941 |
581,213 |
||||||
| Due from affiliates |
20,052 |
20,505 |
||||||
| Prepaid expenses and other current assets |
430,278 |
293,828 |
||||||
| Total current assets |
9,112,887 |
13,558,497 |
||||||
| Deferred financing costs |
- |
37,926 |
||||||
| Property and equipment, net |
1,302,667 |
1,247,973 |
||||||
| Restricted cash |
530,000 |
530,000 |
||||||
| Intangible assets, net |
2,162,895 |
2,353,212 |
||||||
| Goodwill |
1,622,483 |
1,622,483 |
||||||
| Other assets |
221,979 |
216,442 |
||||||
| TOTAL ASSETS |
$ |
14,952,911 |
$ |
19,566,533 |
||||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' (DEFICIT) EQUITY |
||||||||
| Accounts payable and accrued liabilities |
$ |
4,544,711 |
$ |
4,572,307 |
||||
| Medical liabilities |
2,069,392 |
2,670,709 |
||||||
| Lines of credit |
201,264 |
188,764 |
||||||
| Total current liabilities |
6,815,367 |
7,431,780 |
||||||
| Warrant liability |
1,477,778 |
2,811,111 |
||||||
| Deferred rent liability |
819,375 |
728,877 |
||||||
| Deferred tax liability |
43,479 |
43,479 |
||||||
| Total liabilities |
9,155,999 |
11,015,247 |
||||||
| COMMITMENTS AND CONTINGENCIES |
||||||||
| MEZZANINE EQUITY |
||||||||
| Series A Preferred stock, par value $0.001; 5,000,000 shares authorized (inclusive of Series B); |
||||||||
| 1,111,111 issued and outstanding |
||||||||
| Liquidation preference of $9,999,999 |
$ |
7,077,778 |
$ |
7,077,778 |
||||
| STOCKHOLDERS' (DEFICIT) EQUITY |
||||||||
| Series B Preferred stock, par value $0.001; 5,000,000 shares authorized (inclusive of Series A); 555,555 issued and outstanding |
||||||||
| Liquidation preference of $4,999,995 |
3,884,745 |
3,884,745 |
||||||
| Common Stock, par value $0.001; 100,000,000 shares authorized, 6,033,518 and 5,876,852 shares issued and outstanding as of September 30, 2016 and March 31, 2016, respectively |
6,033 |
5,876 |
||||||
| Additional paid-in-capital |
24,190,118 |
23,524,517 |
||||||
| Accumulated deficit |
(31,358,231) |
(28,684,565) |
||||||
| Stockholders' deficit attributable to Apollo Medical Holdings, Inc. |
(3,277,335) |
(1,269,427) |
||||||
| Non-controlling interest |
1,996,469 |
2,742,935 |
||||||
| Total stockholders' (deficit) equity |
(1,280,866) |
1,473,508 |
||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY |
$ |
14,952,911 |
$ |
19,566,533 |
||||
| APOLLO MEDICAL HOLDINGS, INC. |
||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||||||||||
| (UNAUDITED) |
||||||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| 2016 |
2015 |
2016 |
2015 |
|||||||||||||
| Net revenues |
$ |
14,622,656 |
$ |
11,369,607 |
$ |
26,994,329 |
$ |
21,573,734 |
||||||||
| Costs and expenses |
||||||||||||||||
| Cost of services |
12,171,183 |
8,264,189 |
22,304,188 |
15,832,057 |
||||||||||||
| General and administrative |
4,455,329 |
3,440,641 |
8,291,804 |
7,677,846 |
||||||||||||
| Depreciation and amortization |
170,555 |
77,684 |
335,213 |
141,435 |
||||||||||||
| Total costs and expenses |
16,797,067 |
11,782,514 |
30,931,205 |
23,651,338 |
||||||||||||
| Loss from operations |
(2,174,411) |
(412,907) |
(3,936,876) |
(2,077,604) |
||||||||||||
| Other (expense) income |
||||||||||||||||
| Interest expense |
(3,054) |
(68,818) |
(5,713) |
(429,220) |
||||||||||||
| Gain (loss) on change in fair value of warrant and conversion feature liabilities |
511,111 |
96,852 |
1,333,333 |
(116,866) |
||||||||||||
| Other income (expense) |
10,560 |
(95,092) |
12,531 |
5,912 |
||||||||||||
| Total other income (expense), net |
518,617 |
(67,058) |
1,340,151 |
(540,174) |
||||||||||||
| Loss before benefit from income taxes |
(1,655,794) |
(479,965) |
(2,596,725) |
(2,617,778) |
||||||||||||
| Benefit from income taxes |
(185,040) |
(186,138) |
(226,593) |
(93,447) |
||||||||||||
| Net loss |
$ |
(1,470,754) |
$ |
(293,827) |
$ |
(2,370,132) |
$ |
(2,524,331) |
||||||||
| Net (income) loss attributable to noncontrolling interest |
112,345 |
(237,539) |
(303,534) |
(489,401) |
||||||||||||
| Net loss attributable to Apollo Medical Holdings, Inc. |
$ |
(1,358,409) |
$ |
(531,366) |
$ |
(2,673,666) |
$ |
(3,013,732) |
||||||||
| Net loss per share: |
||||||||||||||||
| Basic and diluted |
$ |
(0.23) |
$ |
(0.11) |
$ |
(0.45) |
$ |
(0.62) |
||||||||
| Weighted average number of shares of common stock outstanding: |
||||||||||||||||
| Basic and diluted |
6,024,605 |
4,863,389 |
5,970,015 |
4,863,389 |
||||||||||||
About Apollo Medical Holdings, Inc. (ApolloMed)
Founded in 2001 and headquartered in Glendale, California, ApolloMed is a leading integrated population health management company committed to providing exceptional multi-disciplinary care in the communities it serves. ApolloMed is addressing the healthcare needs of its patients by leveraging its integrated healthcare delivery platform comprised of: ApolloMed Hospitalists, ApolloMed ACO (Accountable Care Organization), Maverick Medical Group (Independent Physician Association), Apollo Care Connect and Apollo Palliative Services. ApolloMed strives to improve medical outcomes with high-quality, cost-efficient care. For more information, please visit www.apollomed.net
Forward Looking Statements
This press release may contain forward-looking statements, including information about management's view of Apollo Medical Holdings, Inc. ("the Company") future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this press release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of the Company, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on the Company's future results. Some factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the Company's Annual Report on our Form 10-K for the fiscal year ended March 31, 2016, under the caption "Risk Factors", which is on file with the Securities and Exchange Commission and available in the "Investor" section of the Company's website under the heading "SEC Filings". The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law.
For More Information, PLEASE CONTACT:
Apollo Medical Holdings
Gary Augusta
818-839-5200
[email protected]
SOURCE Apollo Medical Holdings, Inc.
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