Apollo Medical Holdings Reports Third Quarter Fiscal Year 2015 Financial Results

Revenue of $7.6 million, a 170% Year-Over-Year Increase

News provided by

Apollo Medical Holdings, Inc.

Feb 25, 2015, 08:30 ET

GLENDALE, Calif., Feb. 25, 2015 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed") (OTC-QB: AMEH), an integrated physician-centric healthcare delivery company announced its fiscal 2015 third quarter results for the three months ended December 31, 2014.

Financial Highlights for the Three Months Ended December 31, 2014 Compared to the Three Months Ended December 31, 2013:

  • Net revenue of $7.6 million, an increase of 170% from $2.8 million in the comparable period of 2013, attributable to the continued growth of Maverick Medical Group and recent acquisitions
  • Loss from operations of $1.5 million compared to a loss of $808,596 in the comparable quarter of 2013, attributable to increased legal and professional fees related to acquisitions as well as increased infrastructure costs related to ApolloMed ACO and Maverick Medical Group
  • On December 31, 2014, the Company had total assets of $15.0 million
  • On December 31, 2014, the Company had cash and cash equivalents of $7.0 million

"This was another quarter of significant year-over-year revenue growth for ApolloMed," stated Warren Hosseinion, M.D., CEO of Apollo Medical Holdings.  "The healthcare industry is rapidly shifting to a risk-based, accountable model, a model which we have been executing on for several years.  We believe that ApolloMed is well-positioned to capitalize on the opportunities that will result from the changing healthcare landscape."

For more details on ApolloMed's fiscal year 2015 third quarter results, please refer to the Company's 10-Q filed with the U.S. Securities Exchange Commission and accessible at www.sec.gov.  

UNAUDITED FINANCIAL TABLES TO FOLLOW:

APOLLO MEDICAL HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


ASSETS







December 31,

March 31,


2014

2014

CURRENT ASSETS





Cash and cash equivalents

$

6,951,763

$

6,831,478

Restricted cash

40,000


20,000

Accounts receivable, net

3,506,674


1,508,461

Other receivables

12,431


-

Due from affiliates

11,457


24,041

Prepaid expenses

135,983


42,200

    Total current assets

10,658,308


8,426,180









Deferred financing costs, net

294,326


366,286

Property and equipment, net

560,938


94,948

Intangible assets, net

1,911,832


59,627

Goodwill

1,386,480


494,700

Other assets

211,088


41,636

TOTAL ASSETS

$

15,022,972

$

9,483,377









LIABILITIES AND STOCKHOLDERS' DEFICIT
















CURRENT LIABILITIES







Accounts payable and accrued liabilities

$

2,562,008

$

1,447,040

Medical liabilities

1,805,554


552,561

Note and line of credit payable, net of discount, current portion

1,584,764


444,764

Holdback consideration

376,236


-

    Total current liabilities

6,328,562


2,444,365









Notes payable, net of discount, non-current portion

5,038,041


5,344,565

Convertible notes payable, net of discount

2,002,307


962,978

Warrant liability

2,452,201


2,354,624

Conversion feature liability

487,630


-

Deferred tax liability

185,972


-

    Total liabilities

16,494,713


11,106,532









COMMITMENTS, CONTINGENCIES and SUBSEQUENT EVENTS (NOTES 10 and 11 )
















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,







48,634,549 and 49,134,549  shares issued and outstanding







as of December 31, 2014 and March 31, 2014, respectively

48,635


49,135

Additional paid-in-capital

16,338,075


15,083,365

Accumulated deficit

(18,340,602)


(16,347,588)

    Stockholders' deficit attributable to Apollo Medical Holdings, Inc.

(1,953,892)


(1,215,088)

Non-controlling interest

482,151


(408,067)

    Total stockholders' deficit

(1,471,741)


(1,623,155)









TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$

15,022,972

$

9,483,377










APOLLO MEDICAL HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

Three months ended December 31,

Nine months ended December 31,

2014

2013

2014

2013








Net revenues

$

7,642,474

$

2,834,161

$

23,402,254

$

7,970,276












Costs and expenses












Cost of services

6,090,345


2,032,851

15,511,829


6,748,726

General and administrative

2,889,598


1,603,625

8,350,837


4,569,020

Depreciation and amortization

194,060


6,281

399,240


19,164

Total costs and expenses

9,174,003


3,642,757

24,261,906


11,336,910












Loss from operations

(1,531,529)


(808,596)

(859,652)


(3,366,634)












Other (expense) income












Interest expense

(362,935)


(156,257)

(969,060)


(518,509)

Change in fair value of warrant and conversion
feature liability

358,433


-

480,568


-

Other

112,648


(739)

51,736


6,751

Total other income (expense)

108,146


(156,996)

(436,756)


(511,758)












Loss before provision for income taxes

(1,423,383)


(965,592)

(1,296,408)


(3,878,392)












(Benefit) provision for income taxes

(31,944)


(800)

66,647


-












Net loss

(1,391,439)


(964,792)

(1,363,055)


(3,878,392)












Net income attributable to noncontrolling interest

(300,144)


-

(629,959)


-












Net loss attributable to Apollo Medical Holdings, Inc.

$

(1,691,583)

$

(964,792)

$

(1,993,014)

$

(3,878,392)

Other comprehensive loss:












Unrealized change in value of marketable securities

(33,088)


-

-


-

Comprehensive loss

$

(1,724,671)

$

(964,792)

$

(1,993,014)

$

(3,878,392)












NET LOSS PER SHARE:












BASIC AND DILUTED

$

(0.03)

$

(0.02)

$

(0.04)

$

(0.10)












WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:












BASIC AND DILUTED

48,759,549


39,038,732

49,009,094


37,251,775

About Apollo Medical Holdings, Inc. (ApolloMed)

Headquartered in Glendale, California and dedicated to putting the 'Patient First,' ApolloMed is a leading provider of physician-centric integrated healthcare management services, fueled by its commitment to provide exceptional multi-disciplinary care in the communities it serves in California, Mississippi and Ohio.  ApolloMed is addressing the healthcare needs of the nation's largest population center by leveraging its integrated healthcare delivery platform comprised of three affiliated and complementary physician groups:  ApolloMed Hospitalists, ApolloMed ACO (Accountable Care Organization), Maverick Medical Group (Independent Physician Association), AKM Medical Group (IPA), Apollo Palliative Services and ApolloMed Care Clinics.  This platform combines hospitalist medicine, critical care medicine, case management and transition management that enable healthcare organizations to engage in performance payments for utilization efficiency, quality of care objectives and shared accountability arrangements.  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 Form 10-K for the fiscal year ended January 31, 2014, 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, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Apollo Medical Holdings, Inc.

For More Information, PLEASE CONTACT:

Dave Gentry
RedChip Companies Inc.
1-800-733-2447
[email protected]

SOURCE Apollo Medical Holdings, Inc.