Apollo Medical Holdings Reports Record Fiscal 2014 Second Quarter Results

GLENDALE, Calif., Sept. 16, 2013 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed") (OTCQB: AMEH), an integrated physician-driven healthcare delivery company that puts 'Patients First,' today announced its fiscal 2014 second quarter results for the three and six  months ended July 31, 2013.

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

• Net revenues increased 57% to a record $2.59 million from $1.65 million.  Approximately $740,000 of the increase can be attributed to the success that the Company continues to enjoy winning new hospital contracts and increasing revenues from existing medical group clients at the new hospitals being served.
• Loss from operations totaled $1.36 million, which compared to a loss from operations of approximately $63,000. The increase is due primarily to an increase in physician stock-based compensation of approximately $423,000, $688,000 in physician costs attributable to new physicians hired to support new contracts, and $544,000 in stock-based compensation for employees, directors and consultants. In addition, approximately $227,000 in expenses associated with support of Maverick Medical Group launched earlier this year and the continued investment in ApolloMed ACO, contributed to the higher loss from operations in the second quarter period.
  • Non-GAAP* Adjusted EBITDA loss totaled approximately $309,000 compared to positive EBITDA of approximately $23,000.
• Net loss declined 52% to $1.53 million, or $0.04 loss per basic and diluted share, from $3.20 million, or $0.10 loss per basic and diluted share.

Financial Highlights for Six Months Ended July 31, 2013 Compared to Six Months Ended July 31, 2012:

• Net revenues totaled $5.04 million, rising 54% from $3.28 million due primarily to  new hospital contracts, increased same-market area growth and expansion of services with the Company's current medical group clients.
• After factoring non-cash stock-based compensation costs for physicians, employees, directors and consultants of $1.48 million, coupled with approximately $1.06 million in expenses for new physicians hired to support new hospital contracts, loss from operations increased to roughly $2.07 million from approximately $117,000.
  • Non-GAAP* Adjusted EBITDA loss totaled approximately $390,000 compared to positive EBITDA of  approximately $79,000.
• Net loss decreased 29% to $2.38 million, or $0.07 loss per basic and diluted share, compared to $3.36 million, or $0.11 loss per basic and diluted share.

As of July 31, 2013, cash and cash equivalents totaled $1.25 million and total stockholders' deficit was approximately $1.27 million.  Net cash used in the Company's operating activities for the first six months of fiscal 2014 was $298,000, up from approximately $65,000 for the same six months in the prior fiscal year.

Commenting on the results, Warren Hosseinion, MD, CEO and President of ApolloMed, stated, "During the second quarter, we continued to successfully execute our multi-channel growth strategies, leveraging our strong reputation as a trusted partner to all stakeholders in the care continuum.  By consistently delivering best in class inpatient and outpatient services to residents of Los Angeles and Central California, ApolloMed Hospitalists continues to achieve record revenue growth on a quarter-over-quarter basis – an accomplishment in which we take immense pride.  Moreover, both ApolloMed ACO and Maverick Medical have continued to make notable progress over the past several months with implementing key initiatives designed to attract leading physicians, specialty care groups and medical institutions to our exciting, high growth platforms.   We look forward to detailing specific wins in this regard in a series of news announcements in the coming weeks and months."

For more details on ApolloMed's fiscal 2014 second quarter results, please refer to the Company's 10-Q filed with the U.S. Securities Exchange Commission and accessible at www.sec.gov.  

FINANCIAL CHARTS  TO FOLLOW

*Use of Non-GAAP Financial Measures
In addition to containing results that are determined in accordance with accounting principles generally accepted in the United States of America (GAAP), this press release also contains non-GAAP financial measures. Adjusted EBITDA, as used in this press release, represents Loss from Operations before depreciation, adjusted for issuance of shares for service, stock option expense, amortization of debt discount and impairment of intangibles and losses on discontinued operations. Adjusted EBITDA is a key indicator used by management to evaluate operating performance. While adjusted EBITDA is not intended to replace any presentation included in the consolidated financial statements under GAAP and should not be considered an alternative to operating performance or an alternative to cash flow as a measure of liquidity, the Company believes this measure is useful to investors in assessing the Company's ongoing operating performance and working capital requirements. This calculation may differ in method of calculation from similarly titled measures used by other companies. A reconciliation of adjusted EBITDA to the nearest comparable GAAP financial measure is included in the financial schedules accompanying this press release. The Non-GAAP financial measures, as well as other information in this press release, should be read in conjunction with the Company's financial statements filed with the Securities and Exchange Commission and accessible at www.sec.gov.

About Apollo Medical Holdings, Inc. (ApolloMed)
Headquartered in Glendale, California and dedicated to putting the 'Patient First,' 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 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.  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.

SOURCE Apollo Medical Holdings, Inc.