Company to Host Conference Call on
Monday, August 7, 2023, at
2:30 p.m. PT/5:30 p.m. ET
ALHAMBRA, Calif., Aug. 7, 2023
/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 company focused on enabling providers
in the successful delivery of value-based care, today announced its
consolidated financial results for the second quarter ended
June 30, 2023.
Brandon Sim, Co-Chief Executive
Officer of ApolloMed, stated, "Our strong second quarter
performance reflects the sustained momentum and scalability of the
ApolloMed model, with revenue up 29%, net income attributable to
ApolloMed up 10%, and adjusted EBITDA up 44% compared to a year
ago. We remain focused on our three key operational goals of
growing our membership, empowering our providers, and improving
patient outcomes, and we continue to drive meaningful progress in
all three areas in California,
Nevada, Texas, and beyond."
"We want to thank our providers and teammates for their hard
work and dedication that resulted in our continued solid financial
performance in the second quarter of 2023 and our confidence in
reiterating our previously provided guidance for full-year
2023."
Financial Highlights for Second Quarter Ended June 30, 2023:
All comparisons are to the quarter ended June 30, 2022 unless otherwise stated.
- Total revenue of $348.2 million,
up 29% from $269.7 million
- Care Partners revenue of $325.2
million, up 32% from $247.3
million
- Net income attributable to ApolloMed of $13.2 million, up 10% from $12.0 million
- Adjusted EBITDA of $35.8 million,
up 44% from $24.9 million
Financial Highlights for Six Months Ended June 30, 2023:
All comparisons are to the six months ended June 30, 2022 unless otherwise stated.
- Total revenue of $685.5 million,
up 29% from $533.0 million
- Care Partners revenue of $639.9
million, up 31% from $488.6
million
- Net income attributable to ApolloMed of $26.3 million, up 2% from $25.7 million
- Adjusted EBITDA of $65.6 million,
up 11% from $59.3 million
Recent Operating Highlights Subsequent to the End of the
Second Quarter:
- On July 12, 2023, the Company
announced that it had entered into a definitive agreement to
acquire assets of Texas Independent Providers, LLC ("TIP"), a
value-based provider network with over 120 primary care providers
that is expected to be an anchor for our high-quality Care Partners
business in Houston. Through this
transaction, ApolloMed intends to empower TIP's provider network to
deliver best-in-class clinical outcomes and to improve the
healthcare experience for patients. This transaction is expected to
close in the third quarter of 2023, and TIP's providers are
expected to be onboarded onto ApolloMed's Care Enablement platform
by the end of 2023.
- On July 27, 2023, the Company
formed a long-term partnership with a primary care group operating
in California with over 50
providers. The group is expected to be onboarded onto ApolloMed's
Care Enablement platform by September 1,
2023.
- On July 31, 2023, the Company
announced a partnership with IntraCare, an operator of a
value-based primary care provider network with over 425 providers
located in Dallas, Fort Worth, El
Paso, Austin, and
Oklahoma City. Through this
partnership, IntraCare's providers are expected to join ApolloMed's
high-quality Care Partners business in these regions and onboarded
onto ApolloMed's Care Enablement platform by the end of 2023. In
addition, ApolloMed will lend IntraCare a $25 million senior secured convertible promissory
note maturing in 2028 to further IntraCare's mission and
growth.
Segment Results for the Second Quarter Ended June 30,
2023:
|
Three Months Ended
June 30, 2023
|
|
Care
Enablement
|
|
Care
Partners
|
|
Care
Delivery
|
|
Other
|
|
Intersegment
Elimination
|
|
Corporate
Costs
|
|
Consolidated
Total
|
Total
revenues
|
$
34,975
|
|
$
325,246
|
|
$
26,718
|
|
$
157
|
|
$
(38,887)
|
|
$
—
|
|
$
348,209
|
% change vs. prior
year quarter
|
18 %
|
|
32 %
|
|
14 %
|
|
—
|
|
—
|
|
—
|
|
29 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
15,162
|
|
292,119
|
|
22,523
|
|
70
|
|
(36,998)
|
|
—
|
|
292,876
|
General and
administrative(1)
|
12,175
|
|
5,298
|
|
3,626
|
|
926
|
|
(2,933)
|
|
9,212
|
|
28,304
|
Total
expenses
|
27,337
|
|
297,417
|
|
26,149
|
|
996
|
|
(39,931)
|
|
9,212
|
|
321,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
$
7,638
|
|
$
27,829
|
|
$
569
|
|
$
(839)
|
|
$
1,044
|
(2)
|
$
(9,212)
|
|
$
27,029
|
% change vs. prior
year quarter
|
4 %
|
|
250 %
|
|
(83 %)
|
|
—
|
|
—
|
|
—
|
|
76 %
|
|
(1) Balance includes general and
administrative expenses and depreciation and
amortization.
|
(2) Income from operations for the
intersegment elimination represents rental income from segments
renting from other segments. Rental income is presented within
other income which is not presented in the table.
|
Guidance:
ApolloMed is reiterating the following guidance for total
revenue, net income, EBITDA, Adjusted EBITDA, and EPS - diluted,
based on the Company's existing business, current view of existing
market conditions and assumptions for the year ending December 31, 2023.
($ in
millions)
|
2023 Guidance
Range
|
|
Low
|
|
High
|
Total
revenue
|
$
1,300.0
|
|
$
1,500.0
|
Net income
|
$
49.5
|
|
$
71.5
|
EBITDA
|
$
89.5
|
|
$
129.5
|
Adjusted
EBITDA
|
$
120.0
|
|
$
160.0
|
EPS –
diluted
|
$
0.95
|
|
$
1.20
|
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.
Conference Call and Webcast Information:
ApolloMed will host a conference call at 2:30 p.m. PT/5:30 p.m.
ET today (Monday, August 7,
2023), during which management will discuss the results of
the second quarter ended June 30,
2023. 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)
858-9810
International (Toll):
+1 (201) 689-8517
The conference call can also be accessed via webcast at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=SC6cioUx.
An accompanying slide presentation will be available in PDF
format on the "IR Calendar" page of the Company's website
(https://www.apollomed.net/investors/news-events/ir-calendar) after
issuance of the earnings release and will be furnished 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 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, 140,954 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 Allied Physicians of
California, a Professional Medical
Corporation d.b.a. Allied Pacific of California ("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,
risk-bearing healthcare company. Leveraging its proprietary
end-to-end technology solutions, ApolloMed operates an integrated
healthcare delivery platform that enables providers to successfully
participate in value-based care arrangements, thus empowering them
to deliver outcomes-based medical care to patients in a
cost-effective manner.
Headquartered in Alhambra,
California, ApolloMed's subsidiaries and affiliates include
management services organizations (MSOs), affiliated independent
practice associations (IPAs), and entities participating in the
Centers for Medicare & Medicaid Services Innovation Center
(CMMI) innovation models. 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, such as statements about the
Company's guidance for the year ending December 31, 2023,
ability to meet operational goals, ability to meet expectations in
deployment of care coordination and management capabilities,
ability to decrease cost of care while improving quality and
outcomes, ability to deliver sustainable revenue and EBITDA growth
as well as long-term value, ability to respond to the changing
environment, and successful implementation of strategic growth
plans, acquisition strategy, and merger integration
efforts. 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/A for the
year ended December 31, 2022, and any subsequent quarterly
reports on Form 10-Q. Any forward-looking statement made by
the Company in this release speaks only as of the date on which it
is made. The Company undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by any applicable securities laws.
Restatement
In connection with a review of the Company's income tax
filing structure, the Company identified unintentional errors in
its accounting for the income tax effects of certain intercompany
dividends and certain net operating losses, which resulted in an
understatement of income tax expense in prior periods and also had
an impact on purchase accounting (goodwill) as a portion of the net
operating losses affected by the errors pertained to acquisitions
in prior periods. As a result of the errors, the Company has
restated the December 31, 2022
consolidated balance sheet and the consolidated statement of
operations for each of the three and six months ended June 30, 2022.
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations
(626) 943-6491
investors@apollomed.net
Carolyne Sohn, The Equity
Group
(408) 538-4577
csohn@equityny.com
APOLLO MEDICAL
HOLDINGS, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
|
|
|
(Restated)
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
293,921
|
|
$
288,027
|
Restricted
cash
|
|
345
|
|
—
|
Investments in
marketable securities
|
|
3,789
|
|
5,567
|
Receivables,
net
|
|
66,927
|
|
49,631
|
Receivables, net –
related parties
|
|
82,820
|
|
65,147
|
Other
receivables
|
|
1,201
|
|
1,834
|
Prepaid expenses and
other current assets
|
|
15,088
|
|
14,798
|
Loans
receivable
|
|
973
|
|
996
|
Loan receivable –
related party
|
|
—
|
|
2,125
|
|
|
|
|
|
Total current
assets
|
|
465,064
|
|
428,125
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Land, property, and
equipment, net
|
|
123,859
|
|
108,536
|
Intangible assets,
net
|
|
74,421
|
|
76,861
|
Goodwill
|
|
274,029
|
|
269,053
|
Income taxes
receivable, non-current
|
|
15,943
|
|
15,943
|
Investments in other
entities – equity method
|
|
45,831
|
|
40,299
|
Investments in
privately held entities
|
|
2,896
|
|
896
|
Operating lease
right-of-use assets
|
|
17,905
|
|
20,444
|
Other
assets
|
|
7,229
|
|
6,056
|
|
|
|
|
|
Total non-current
assets
|
|
562,113
|
|
538,088
|
|
|
|
|
|
Total
assets(1)
|
|
$
1,027,177
|
|
$
966,213
|
|
|
|
|
|
Liabilities,
mezzanine equity and equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
49,904
|
|
$
49,562
|
Fiduciary accounts
payable
|
|
8,603
|
|
8,065
|
Medical
liabilities
|
|
100,047
|
|
81,255
|
Income taxes
payable
|
|
19,628
|
|
4,279
|
Dividend
payable
|
|
638
|
|
664
|
Finance lease
liabilities
|
|
591
|
|
594
|
Operating lease
liabilities
|
|
3,027
|
|
3,572
|
Current portion of
long-term debt
|
|
2,630
|
|
619
|
Total current
liabilities
|
|
185,068
|
|
148,610
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Deferred tax
liability
|
|
12,383
|
|
14,217
|
Finance lease
liabilities, net of current portion
|
|
1,078
|
|
1,275
|
Operating lease
liabilities, net of current portion
|
|
17,852
|
|
19,915
|
Long-term debt, net of
current portion and deferred financing costs
|
|
205,136
|
|
203,389
|
Other long-term
liabilities
|
|
21,383
|
|
20,260
|
|
|
|
|
|
Total non-current
liabilities
|
|
257,832
|
|
259,056
|
|
|
|
|
|
Total
liabilities(1)
|
|
442,900
|
|
407,666
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
Non-controlling
interest in Allied Physicians of California, a Professional
Medical
Corporation
|
|
14,523
|
|
14,237
|
|
|
|
|
|
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,
46,553,517 and 46,575,699 shares issued and outstanding, excluding
10,569,340 and
10,299,259 treasury shares, at June 30, 2023, and
December 31, 2022, respectively
|
|
47
|
|
47
|
Additional paid-in
capital
|
|
357,246
|
|
360,097
|
Retained
earnings
|
|
208,720
|
|
182,417
|
Total
stockholders' equity
|
|
566,013
|
|
542,561
|
|
|
|
|
|
Non-controlling
interest
|
|
3,741
|
|
1,749
|
|
|
|
|
|
Total equity
|
|
569,754
|
|
544,310
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
|
$
1,027,177
|
|
$
966,213
|
|
(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 $520.8 million and $515.1 million as of
June 30, 2023 and December 31, 2022, 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 $145.8 million and $133.5 million as of June 30,
2023 and December 31, 2022, respectively. The VIE balances do not
include $325.5 million of investment in affiliates and $5.4 million
of amounts due to affiliates as of June 30, 2023 and $304.8 million
of investment in affiliates and $30.3 million of amounts due from
affiliates as of December 31, 2022 as these are eliminated upon
consolidation and not presented within the consolidated balance
sheets.
|
APOLLO MEDICAL
HOLDINGS, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
|
2023
|
|
2022
(restated)
|
|
2023
|
|
2022
(restated)
|
Revenue
|
|
|
|
|
|
|
|
|
Capitation,
net
|
|
$ 300,549
|
|
$ 227,623
|
|
$ 600,753
|
|
$ 449,682
|
Risk pool settlements
and incentives
|
|
20,121
|
|
18,793
|
|
33,583
|
|
36,868
|
Management fee
income
|
|
12,493
|
|
9,984
|
|
22,389
|
|
20,457
|
Fee-for-service,
net
|
|
13,262
|
|
11,740
|
|
25,324
|
|
22,835
|
Other
revenue
|
|
1,784
|
|
1,557
|
|
3,404
|
|
3,112
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
348,209
|
|
269,697
|
|
685,453
|
|
532,954
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of services,
excluding depreciation and amortization
|
|
292,876
|
|
230,070
|
|
582,273
|
|
450,798
|
General and
administrative expenses
|
|
24,056
|
|
19,894
|
|
45,236
|
|
31,837
|
Depreciation and
amortization
|
|
4,248
|
|
4,351
|
|
8,541
|
|
8,725
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
321,180
|
|
254,315
|
|
636,050
|
|
491,360
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
27,029
|
|
15,382
|
|
49,403
|
|
41,594
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Income from equity
method investments
|
|
2,723
|
|
1,512
|
|
5,207
|
|
2,945
|
Interest
expense
|
|
(3,632)
|
|
(1,854)
|
|
(6,901)
|
|
(2,927)
|
Interest
income
|
|
3,327
|
|
421
|
|
6,335
|
|
467
|
Unrealized gain (loss)
on investments
|
|
859
|
|
(1,866)
|
|
(5,533)
|
|
(10,829)
|
Other
income
|
|
1,185
|
|
3,034
|
|
2,389
|
|
3,647
|
|
|
|
|
|
|
|
|
|
Total other income
(expense), net
|
|
4,462
|
|
1,247
|
|
1,497
|
|
(6,697)
|
|
|
|
|
|
|
|
|
|
Income before
provision for income taxes
|
|
31,491
|
|
16,629
|
|
50,900
|
|
34,897
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
14,009
|
|
5,352
|
|
20,930
|
|
12,170
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
17,482
|
|
11,277
|
|
29,970
|
|
22,727
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to non-controlling interest
|
|
4,312
|
|
(673)
|
|
3,668
|
|
(2,987)
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Apollo Medical Holdings, Inc.
|
|
$
13,170
|
|
$
11,950
|
|
$
26,302
|
|
$
25,714
|
|
|
|
|
|
|
|
|
|
Earnings per share –
basic
|
|
$
0.28
|
|
$
0.27
|
|
$
0.57
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
Earnings per share –
diluted
|
|
$
0.28
|
|
$
0.26
|
|
$
0.56
|
|
$
0.56
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
(in
thousands)
|
|
2023
|
|
2022 (restated)
|
|
2023 (restated)
|
|
2022 (restated)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
17,482
|
|
$
11,277
|
|
$
29,970
|
|
$
22,727
|
|
Interest
expense
|
|
3,632
|
|
1,854
|
|
6,901
|
|
2,927
|
|
Interest
income
|
|
(3,327)
|
|
(421)
|
|
(6,335)
|
|
(467)
|
|
Provision for income
taxes
|
|
14,009
|
|
5,352
|
|
20,930
|
|
12,170
|
|
Depreciation and
amortization
|
|
4,248
|
|
4,351
|
|
8,541
|
|
8,725
|
|
EBITDA
|
|
36,044
|
|
22,413
|
|
60,007
|
|
46,082
|
|
|
|
|
|
|
|
|
|
|
|
Income from equity
method investments
|
|
(297)
|
|
(180)
|
|
(546)
|
|
(328)
|
|
Other, net
|
|
(1,618)
|
(1)
|
—
|
|
(216)
|
(1)
|
—
|
|
Stock-based
compensation
|
|
4,213
|
|
3,920
|
|
7,658
|
|
6,975
|
|
APC excluded assets
costs
|
|
(2,570)
|
|
(1,247)
|
|
(1,304)
|
|
6,537
|
|
Adjusted
EBITDA
|
|
$
35,772
|
|
$
24,906
|
(2)
|
$
65,599
|
|
$
59,266
|
(2)
|
|
(1) Other,
net for the three and six months ended June 30, 2023 relates
to non-cash changes in the fair value of our financing obligation
to purchase the remaining equity interests, changes in the fair
value of our contingent liabilities, and changes in the fair value
of the Company's Collar Agreement.
|
(2) Adjusted EBITDA under the
historical method for the three and six months ended June 30,
2022 was $36.9 million and $75.1 million, respectively.
See "Use of Non-GAAP Financial Measures" below for additional
information on change of methodology.
|
Guidance
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA
|
|
|
|
|
|
2023 Guidance
Range
|
(in
thousands)
|
Low
|
|
High
|
Net income
|
$
49,500
|
|
$
71,500
|
Interest
expense
|
1,000
|
|
1,000
|
Provision for income
taxes
|
23,000
|
|
38,000
|
Depreciation and
amortization
|
16,000
|
|
19,000
|
EBITDA
|
89,500
|
|
129,500
|
|
|
|
|
Loss (income) from
equity method investments
|
(750)
|
|
(750)
|
Other, net
|
3,250
|
|
3,250
|
Stock-based
compensation
|
16,000
|
|
16,000
|
APC excluded assets
costs
|
12,000
|
|
12,000
|
Adjusted
EBITDA
|
$
120,000
|
|
$
160,000
|
Use of Non-GAAP Financial Measures
This earnings 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 calculated differently from similar 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 or loss
from equity method investments, non-recurring and non-cash
transactions, stock-based compensation, and APC excluded assets
costs. Beginning in the third quarter ended September 30, 2022, the Company has revised the
calculation for Adjusted EBITDA to exclude provider bonus payments
and losses from recently acquired IPAs, which it believes to be
more reflective of its business.
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.