(State or Other Jurisdiction | (Commission | (I.R.S. Employer | ||||||||||||
of Incorporation) | File Number) | Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Nasdaq Capital Market |
Item 2.02 | Results of Operations and Financial Condition. |
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits |
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document) |
APOLLO MEDICAL HOLDINGS, INC. | ||||||||
Date: | By: | /s/ Thomas S. Lam | ||||||
Name: Title: | Thomas S. Lam, M.D., M.P.H. Co-Chief Executive Officer and President |
($ in millions) | 2022 Guidance Range | 2022 Guidance Range | ||||||||||||||||||||||||
(as of March 14, 2022) | (as of May 5, 2022) | |||||||||||||||||||||||||
Low | High | Low | High | |||||||||||||||||||||||
Total revenue | $ | 1,030.0 | $ | 1,080.0 | $ | 1,055.0 | $ | 1,085.0 | ||||||||||||||||||
Net income | $ | 33.0 | $ | 57.0 | $ | 38.0 | $ | 57.0 | ||||||||||||||||||
EBITDA | $ | 72.0 | $ | 111.0 | $ | 81.0 | $ | 111.0 | ||||||||||||||||||
Adjusted EBITDA | $ | 130.0 | $ | 166.0 | $ | 136.0 | $ | 166.0 |
APOLLO MEDICAL HOLDINGS, INC. | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | ||||||||||||||
(UNAUDITED) | ||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 237,942 | $ | 233,097 | ||||||||||
Investments in marketable securities | 42,893 | 53,417 | ||||||||||||
Receivables, net | 64,244 | 10,608 | ||||||||||||
Receivables, net – related parties | 76,410 | 69,376 | ||||||||||||
Other receivables | 13,260 | 9,647 | ||||||||||||
Prepaid expenses and other current assets | 14,631 | 18,637 | ||||||||||||
Loan receivable – related party | 4,000 | 4,000 | ||||||||||||
Total current assets | 453,380 | 398,782 | ||||||||||||
Non-current assets | ||||||||||||||
Land, property, and equipment, net | 70,366 | 53,186 | ||||||||||||
Intangible assets, net | 80,148 | 82,807 | ||||||||||||
Goodwill | 252,379 | 253,039 | ||||||||||||
Loans receivable | 549 | 569 | ||||||||||||
Investments in other entities – equity method | 44,383 | 41,715 | ||||||||||||
Investments in privately held entities | 896 | 896 | ||||||||||||
Operating lease right-of-use assets | 14,770 | 15,441 | ||||||||||||
Other assets | 4,424 | 5,928 | ||||||||||||
Total non-current assets | 467,915 | 453,581 | ||||||||||||
Total assets(1) | $ | 921,295 | $ | 852,363 | ||||||||||
Liabilities, mezzanine equity and stockholders’ equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable and accrued expenses | $ | 48,252 | $ | 43,951 | ||||||||||
Fiduciary accounts payable | 6,305 | 10,534 | ||||||||||||
Medical liabilities | 104,722 | 55,783 | ||||||||||||
Income taxes payable | 4,894 | 652 | ||||||||||||
Dividend payable | 556 | 556 | ||||||||||||
Finance lease liabilities | 543 | 486 | ||||||||||||
Operating lease liabilities | 2,625 | 2,629 |
March 31, 2022 | December 31, 2021 | |||||||||||||
Current portion of long-term debt | 1,503 | 780 | ||||||||||||
Total current liabilities | 169,400 | 115,371 | ||||||||||||
Non-current liabilities | ||||||||||||||
Deferred tax liability | 9,686 | 9,127 | ||||||||||||
Finance lease liabilities, net of current portion | 1,172 | 973 | ||||||||||||
Operating lease liabilities, net of current portion | 12,558 | 13,198 | ||||||||||||
Long-term debt, net of current portion and deferred financing costs | 183,101 | 182,917 | ||||||||||||
Other long-term liabilities | 13,706 | 14,777 | ||||||||||||
Total non-current liabilities | 220,223 | 220,992 | ||||||||||||
Total liabilities(1) | 389,623 | 336,363 | ||||||||||||
Mezzanine equity | ||||||||||||||
Non-controlling interest in Allied Physicians of California, a Professional Medical Corporation | 52,151 | 55,510 | ||||||||||||
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, 44,845,059 and 44,630,873 shares issued and outstanding, excluding 10,925,702 and 10,925,702 treasury shares, at March 31, 2022, and December 31, 2021, respectively | 45 | 45 | ||||||||||||
Additional paid-in capital | 316,047 | 310,876 | ||||||||||||
Retained earnings | 157,893 | 143,629 | ||||||||||||
473,985 | 454,550 | |||||||||||||
Non-controlling interest | 5,536 | 5,940 | ||||||||||||
Total stockholders’ equity | 479,521 | 460,490 | ||||||||||||
Total liabilities, mezzanine equity and stockholders’ equity | $ | 921,295 | $ | 852,363 |
APOLLO MEDICAL HOLDINGS, INC. | ||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||||||||
(UNAUDITED) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue | ||||||||||||||
Capitation, net | $ | 222,060 | $ | 144,740 | ||||||||||
Risk pool settlements and incentives | 18,075 | 18,010 | ||||||||||||
Management fee income | 10,473 | 8,550 | ||||||||||||
Fee-for-service, net | 11,095 | 3,086 | ||||||||||||
Other income | 1,555 | 1,672 | ||||||||||||
Total revenue | 263,258 | 176,058 | ||||||||||||
Operating expenses | ||||||||||||||
Cost of services, excluding depreciation and amortization | 220,730 | 140,616 | ||||||||||||
General and administrative expenses | 11,943 | 9,464 | ||||||||||||
Depreciation and amortization | 4,374 | 4,197 | ||||||||||||
Total expenses | 237,047 | 154,277 | ||||||||||||
Income from operations | 26,211 | 21,781 | ||||||||||||
Other expense | ||||||||||||||
Income (loss) from equity method investments | 1,433 | (677) | ||||||||||||
Interest expense | (1,073) | (1,523) | ||||||||||||
Interest income | 46 | 349 | ||||||||||||
Unrealized loss on investments | (8,962) | — | ||||||||||||
Other income | 613 | 1,304 | ||||||||||||
Total other expense, net | (7,943) | (547) | ||||||||||||
Income before provision for income taxes | 18,268 | 21,234 | ||||||||||||
Provision for income taxes | 6,195 | 6,776 | ||||||||||||
Net income | 12,073 | 14,458 | ||||||||||||
Net (loss) income attributable to non-controlling interest | (2,191) | 1,307 | ||||||||||||
Net income attributable to Apollo Medical Holdings, Inc. | $ | 14,264 | $ | 13,151 | ||||||||||
Earnings per share – basic | $ | 0.32 | $ | 0.31 | ||||||||||
Earnings per share – diluted | $ | 0.31 | $ | 0.30 |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Net income | $ | 12,073 | $ | 14,458 | ||||||||||
Interest expense | 1,073 | 1,523 | ||||||||||||
Interest income | (46) | (349) | ||||||||||||
Provision for income taxes | 6,195 | 6,776 | ||||||||||||
Depreciation and amortization | 4,374 | 4,197 | ||||||||||||
EBITDA | 23,669 | 26,605 | ||||||||||||
(Income) loss from equity method investments | (1,433) | 677 | ||||||||||||
Other income | (613) | (1) | (1,304) | |||||||||||
Unrealized loss on investments | 8,962 | — | ||||||||||||
Stock-based compensation | 3,055 | 1,346 | ||||||||||||
APC excluded assets costs | 750 | — | ||||||||||||
Net loss adjustment for recently acquired IPAs | 3,789 | 3,194 | ||||||||||||
Adjusted EBITDA | $ | 38,179 | $ | 30,518 |
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA | |||||||||||||||||
2022 Guidance Range | |||||||||||||||||
(as of May 5, 2022) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Low | High | ||||||||||||||||
Net income | $ | 38,000 | $ | 57,000 | |||||||||||||
Interest expense | 4,000 | 4,000 | |||||||||||||||
Provision for income taxes | 20,000 | 31,000 | |||||||||||||||
Depreciation and amortization | 19,000 | 19,000 | |||||||||||||||
EBITDA | 81,000 | 111,000 | |||||||||||||||
Provider bonus payments | 16,000 | 16,000 | |||||||||||||||
Stock-based compensation | 13,000 | 13,000 | |||||||||||||||
APC excluded assets costs | 9,000 | 9,000 | |||||||||||||||
Net loss adjustment for recently acquired IPAs | 17,000 | 17,000 | |||||||||||||||
Adjusted EBITDA | $ | 136,000 | $ | 166,000 |
www.apollomed.net | 2 |
www.apollomed.net | 3 |
Strong Q1 2022 financial results | Strengthening leadership team | Strategic transactions | ||||||||||||||||||
Revenue | $263.3M | 50% from $176.1M | Appointed Chan Basho as Chief Strategy Officer and Interim Chief Financial Officer | Closed the following transaction in April 2022: • 100% of Jade Health Medical Group, an SF Bay Area-based primary and specialty care physician group | ||||||||||||||||
Net income attr. to AMEH | $14.3M | 8% from $13.2M | Added resources to boost operations and business development efforts | |||||||||||||||||
EPS - diluted | $0.31 | 3% from $0.30 | ||||||||||||||||||
Adj. EBITDA* | $38.2M | 25% from $30.5M | ||||||||||||||||||
*See “Reconciliation of Net Income to EBITDA and Adjusted EBITDA” and “Use of Non-GAAP Financial Measures” slides for more information. |
www.apollomed.net | 4 |
www.apollomed.net | 5 |
Three months ended March 31, | |||||||||||||||||
$ in 000s except per share data | 2022 | 2021 | |||||||||||||||
Revenue | |||||||||||||||||
Capitation, net | $ | 222,060 | $ | 144,740 | |||||||||||||
Risk pool settlements and incentives | 18,075 | 18,010 | |||||||||||||||
Management fee income | 10,473 | 8,550 | |||||||||||||||
Fee-for-service, net | 11,095 | 3,086 | |||||||||||||||
Other income | 1,555 | 1,672 | |||||||||||||||
Total revenue | 263,258 | 176,058 | |||||||||||||||
Total expenses | 237,047 | 154,277 | |||||||||||||||
Income from operations | 26,211 | 21,781 | |||||||||||||||
Net income | 12,073 | 14,458 | |||||||||||||||
Net (loss) income attributable to noncontrolling interest | (2,191) | 1,307 | |||||||||||||||
Net income attributable to ApolloMed | $ | 14,264 | $ | 13,151 | |||||||||||||
Earnings per share - diluted | $ | 0.31 | $ | 0.30 |
www.apollomed.net | 6 |
www.apollomed.net | 7 |
www.apollomed.net | 8 |
$ in millions | 3/31/2022 | 12/31/2021 | $ Change | % Change | |||||||||||||||||||||||||
Cash and cash equivalents and investments in marketable securities | $280.8 | $286.5 | $(5.7) | (2)% | |||||||||||||||||||||||||
Working capital | $284.0 | $283.4 | $0.6 | —% | |||||||||||||||||||||||||
Total stockholders’ equity | $479.5 | $460.5 | $19.0 | 4% |
www.apollomed.net | 9 |
(figures in millions, except per share price) | |||||||||||
Recent Share Price (as of 4/28/2022) | $ | 38.21 | |||||||||
Common Shares Outstanding | 56.0 | ||||||||||
Market Capitalization | $ | 2,139.8 | |||||||||
Plus: Total Bank Debt | 188.6 | ||||||||||
Less: Cash and Cash Equivalents (1) | (138.5) | ||||||||||
Implied Enterprise Value | $ | 2,189.9 | |||||||||
Notes: Letters of Credit Availability on Revolving Credit Facility | $ | 25.0 |
www.apollomed.net | 10 |
$ in millions | 2022 Guidance Range (as of March 14, 2022) | 2022 Guidance Range (as of May 5, 2022) | |||||||||||||||
Total Revenue | $1030 - $1080 | $1,055 - $1,085 | |||||||||||||||
Net Income(1) | $33 - $57 | $38 - $57 | |||||||||||||||
EBITDA(1,2) | $72 - $111 | $82 - $111 | |||||||||||||||
Adjusted EBITDA(2) | $130 - $166 | $136 - $166 | |||||||||||||||
www.apollomed.net | 11 |
Three months ended March 31, | ||||||||||||||
($ in millions) | 2022 | 2021 | ||||||||||||
Net income | $ | 12.1 | $ | 14.5 | ||||||||||
Interest expense | 1.1 | 1.5 | ||||||||||||
Interest income | — | (0.3) | ||||||||||||
Provision for income taxes | 6.2 | 6.8 | ||||||||||||
Depreciation and amortization | 4.4 | 4.2 | ||||||||||||
EBITDA(1) | $ | 23.7 | $ | 26.6 | ||||||||||
(Income) loss from equity method investments | $ | (1.4) | $ | 0.7 | ||||||||||
Other income | (0.6) | (1.3) | ||||||||||||
Unrealized loss on investments | 9.0 | — | ||||||||||||
Stock-based compensation | 3.1 | 1.3 | ||||||||||||
APC excluded assets costs | 0.8 | — | ||||||||||||
Net loss adjustment for recently acquired IPAs | 3.8 | 3.2 | ||||||||||||
Adjusted EBITDA(1) | $ | 38.2 | $ | 30.5 |
www.apollomed.net | 12 |
Year Ending December 31, 2022 | ||||||||||||||
($ in millions) | Low | High | ||||||||||||
Net income | $ | 38.0 | $ | 57.0 | ||||||||||
Interest expense | 4.0 | 4.0 | ||||||||||||
Provision for income taxes | 20.0 | 31.0 | ||||||||||||
Depreciation and amortization | 19.0 | 19.0 | ||||||||||||
EBITDA | $ | 81.0 | $ | 111.0 | ||||||||||
Stock-based compensation | $ | 13.0 | $ | 13.0 | ||||||||||
APC excluded assets costs | 9.0 | 9.0 | ||||||||||||
Provider bonus payments | 16.0 | 16.0 | ||||||||||||
Net loss adjustment for recently acquired IPAs | 17.0 | 17.0 | ||||||||||||
Adjusted EBITDA | $ | 136.0 | $ | 166.0 |
www.apollomed.net | 13 |
www.apollomed.net | 14 |
www.apollomed.net | 15 |
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