Apollo Medical Holdings Reports Record Revenues For Fiscal 2014 Third Quarter

Three-Month Revenues Increase 33% to $2.61 Million and Nine-Month Revenues Climb 46% to $7.65 Million

GLENDALE, Calif., Dec. 20, 2013 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed") (OTCQB: AMEH), an integrated physician-driven, patient-centric healthcare delivery company today announced its fiscal 2014 third quarter results for the three and nine months ended October 31, 2013.

Financial Highlights for the Three Months Ended October 31, 2013 Compared to the Three Months Ended October 31, 2012:

Net revenues climbed 33% to a record $2,605,231 from $1,965,153.
- New hospital contracts, increased same-market area growth and expansion of hospitalist services with existing medical group clients at new hospitals accounted for $490,137 of the higher revenues; and ApolloMed Care Clinic ("ACC"), a physician practice corporation formed by the Company on July 31, 2013, and Maverick Medical Group ("MMG") contributed $149,941 to increased revenues.
Loss from operations totaled $813,487, down 43% from $1,437,225, which was due primarily to a decrease in non-cash stock-based compensation, partially offset by an increase in costs related to growth initiatives associated with ApolloMed ACO ("ACO"), ACC and MMG.
Net loss declined 79% to $1,014,646, or $0.03 loss per basic and diluted share, from a net loss of $4,721,401, or $0.14 loss per basic and diluted share.

Financial Highlights for the Nine Months Ended October 31, 2013 Compared to the Nine Months Ended October 31, 2012:

Net revenues totaled $7,644,843, rising 46% from $5,246,448.
- $1,889,226 of the increase in revenues was attributable to new hospital contracts, increased same-market growth and expansion of services with existing medical group clients at new hospitals; $163,136 stemmed from expansion of MMG and ACC services; and $364,034 resulted from the acquisition of Verdugo Medical Management, Inc., which occurred in August 2012.
Loss from operations increased 86% to $2,885,846 from $1,553,404 due to higher non-cash stock-based compensation as well as expenses associated with growing the Company's ACO, ACC and MMG businesses.
Net loss was $3,395,878, or $0.09 loss per basic and diluted shared, representing a 58% decrease from a net loss of $8,081,583, or $0.26 loss per basic and diluted share.

As of October 31, 2013, the Company had cash and cash equivalents of $1,012,290; accounts receivable of $1,475,980; and total stockholders' deficit of $1,046,238.

ApolloMed CEO Warren Hosseinion, M.D. stated "Through dedicated execution of our multi-channel growth strategies, ApolloMed has succeeded in perpetuating quarter-over-quarter revenue growth in each of our operating subsidiaries, positioning us well to end our 2014 fiscal year on a strong financial footing. More specifically, our hospitalist business continues to be a source of tremendous pride for ApolloMed, contributing measurably to our growth through the first nine months of the current fiscal year—a trend we fully expect to continue well into the future. We are also very pleased with the performance of ApolloMed ACO, which is achieving notable traction in attracting excellent hospitals and medical groups to our organization. In just the past three months, we have welcomed Integrated Healthcare Holdings' four Orange County hospitals, Pacifica Hospital, AMVI Medical Group, Bolsa Medical Group and Physician Partners IPA. Working together, we expect ApolloMed ACO to achieve superior patient outcomes while lowering healthcare costs by proactively sharing clinical data, optimizing the management of high-risk patients and coordinating care across each patient's full care continuum. As a result, revenue performance of our ACO should be notably pronounced beginning in early 2014."

"Moreover, in the coming year, we expect Maverick Medical Group to begin playing a much more meaningful role in ApolloMed's overall financial performance. By remaining focused on optimizing our operating strengths and implementing growth strategies centered on expanding our service regions beyond Southern and Central California, winning larger hospitalist contracts and ramping our ACO and Maverick businesses to support tens of thousands of patients, we are confident that ApolloMed's promising potential can be fully realized and the lives of our patients and the care providers which serve them will be positively impacted," concluded Dr. Hosseinion.

FINANCIAL CHARTS TO FOLLOW

APOLLO MEDICAL HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

ASSETS
	October 31,	January 31,
	2013	2013
CURRENT ASSETS
Cash and cash equivalents	$ 1,012,290	$ 1,176,727
Accounts receivable, net	1,475,980	1,582,505
Due from affiliates	4,750	5,648
Prepaid expenses	35,388	72,628
Deferred financing costs, current	115,896	34,614
Total current assets	2,644,304	2,872,122

Deferred financing costs, non-current	225,906	218,640
Property and equipment, net	62,435	68,142
Goodwill	258,200	33,200
Other assets	55,481	30,981
TOTAL ASSETS	$ 3,246,326	$ 3,223,085

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$ 968,510	$ 950,651
Notes and lines of credit payable	1,037,743	594,765
Stock issuable	87,750	159,334
Total current liabilities	2,094,003	1,704,750

Convertible notes payable, net	2,198,561	1,909,714
Total liabilities	4,292,564	3,614,464

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, 37,977,607 and 34,843,441 shares issued and outstanding as of October 31, 2013 and January 31, 2013, respectively	37,978	34,844
Prepaid consulting	(341,636)	(616,014)
Additional paid-in-capital	13,942,598	11,248,566
Accumulated deficit	(14,418,150)	(11,022,272)
Total	(779,210)	(354,876)
Non-controlling interest	(267,028)	(36,503)
Total stockholders' deficit	(1,046,238)	(391,379)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 3,246,326	$ 3,223,085

APOLLO MEDICAL HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three months ended October 31,		Nine months ended October 31,

	2013	2012	2013	2012


Net revenues	$ 2,605,231	$ 1,965,153	$ 7,644,843	$ 5,246,448
Cost of services	2,140,615	1,798,957	6,367,501	4,333,289
Gross profit	464,616	166,196	1,277,342	913,159

Operating expenses
General and administrative	1,271,575	1,598,373	4,143,622	2,451,778
Depreciation	6,528	5,048	19,566	14,785
Total operating expenses	1,278,103	1,603,421	4,163,188	2,466,563

Loss from operations	(813,487)	(1,437,225)	(2,885,846)	(1,553,404)

Other income (expense)
Loss on change in fair value of derivative liabilities	-	(3,063,144)	-	(5,853,855)
Interest expense	(178,679)	(221,239)	(476,978)	(670,181)
Other income	9,476	207	8,306	657
Total other expenses	(169,203)	(3,284,176)	(468,672)	(6,523,379)

Loss before income taxes	(982,690)	(4,721,401)	(3,354,518)	(8,076,783)

Provision for income tax	31,956	-	41,360	4,800

Net loss	$ (1,014,646)	$ (4,721,401)	$ (3,395,878)	$ (8,081,583)

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING - BASIC AND DILUTED	37,977,607	33,440,542	36,216,544	31,673,682

BASIC AND DILUTED NET LOSS PER SHARE	$ (0.03)	$ (0.14)	$ (0.09)	$ (0.26)

About Apollo Medical Holdings, Inc. (ApolloMed)
Headquartered in Glendale, California, ApolloMed is a leading provider of physician-driven integrated healthcare management services, fueled by its commitment to provide exceptional multi-disciplinary care in the communities it serves in Southern and Central California. 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) and Maverick Medical Group (Independent Physician Association). 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 future expectations, plans and prospects for Apollo Medical Holdings, Inc. ("the Company"). In particular, when used in the preceding discussion, the words "predicts," "believes," "expects," "intends," "seeks," "estimates," "plans," "anticipates," and similar conditional expressions or future or conditional verbs such as "will," "may," "might," "should," "would" and "could" are intended to identify forward-looking statements. In addition, our representatives may from time to time make oral forward-looking statements. Any such statements, other than those of historical fact, about an action, event or development, are forward-looking statements. Such statements are based on the current expectations and certain assumptions of the Company's management. Such statements are, therefore, subject to a variety of known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company, its subsidiaries and concepts to be materially different than those that may be expressed or implied in such statements or anticipated on the basis of historical trends. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company's actual results, performance or achievements may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. Unknown or unpredictable factors also could have material adverse effects on the Company's future results. The forward-looking statements included herein 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 or revise these forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made, 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 the Company. You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended January 31, 2013 and in any of the Company's other subsequent Securities and Exchange Commission filings.

FOR ADDITIONAL INFORMATION:
Hanover|Elite
Kathy Addison, Chief Operating Officer
407-585-1080 or via email at AMEH@hanoverelite.com

SOURCE Apollo Medical Holdings, Inc.

Released December 20, 2013