Apollo Medical Holdings Reports Second Quarter Fiscal Year 2015 Financial Results

Record Revenue of $11.7 million, a 362% Year-Over-Year Increase

Generated $1.9 Million of Income from Operations

GLENDALE, Calif., Nov. 18, 2014 /PRNewswire/ -- Apollo Medical Holdings, Inc. ("ApolloMed") (OTC-QB: AMEH), an integrated physician-centric healthcare delivery company announced its fiscal 2015 second quarter results for the three months ended September 30, 2014.

Financial Highlights for the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013:

Record net revenue of $11.7 million, an increase of 362% from $2.5 million in the comparable period of 2013, attributable to ApolloMed ACO shared savings, the continued growth of Maverick Medical Group and recent acquisitions
Generated income from operations of $1.86 million compared to a loss of $786,617 in the comparable quarter of 2013
On September 30, 2014, the Company had total assets of $16.1 million, including a $5.4 million receivable from the Centers for Medicare and Medicaid Services (CMS) for ApolloMed ACO's portion of shared savings achieved
On September 30, 2014, the Company had cash, cash equivalents and marketable securities of $4.4 million

"This was a great quarter for ApolloMed and our team demonstrated the ability to execute on its strategy. We achieved significant year-over-year revenue growth and profits owing to the success of our multiple business units," stated Warren Hosseinion, M.D., CEO of Apollo Medical Holdings. "Our integrated care delivery model has achieved success in bending the cost curve of patients with multiple chronic conditions."

For more details on ApolloMed's fiscal year 2015 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.

UNAUDITED FINANCIAL TABLES TO FOLLOW:

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

	September 30,		March 31,
	2014		2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	3,950,125	$	6,831,478
Marketable securities		422,181		-
Restricted cash		40,000		20,000
Accounts receivable, net		3,369,780		1,508,461
Other receivable		5,382,617		-
Due from affiliates		49,377		24,041
Prepaid expenses		145,110		42,200
Total current assets		13,359,190		8,426,180

Deferred financing costs, net		324,003		366,286
Property and equipment, net		620,036		94,948
Intangible assets, net		1,206,319		59,627
Goodwill		439,694		494,700
Other assets		108,747		41,636
TOTAL ASSETS	$	16,057,989	$	9,483,377

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	3,792,645	$	1,447,040
Medical liabilities		1,642,497		552,561
Note and line of credit payable, net of discount, current portion		304,764		444,764
Holdback consideration		136,822		-
Total current liabilities		5,876,728		2,444,365

Notes payable, net of discount – non-current portion		5,343,644		5,344,565
Convertible notes payable, net of discount		1,953,587		962,978
Warrant liability		2,750,480		2,354,624
Conversion feature liability		547,784		-
Deferred tax liability		89,791		-
Total liabilities		16,562,014		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, 49,134,549 shares issued and outstanding as of September 30, 2014 and March 31, 2014, respectively		49,135		49,135
Additional paid-in-capital		16,191,023		15,083,365
Accumulated other comprehensive income		33,088		-
Accumulated deficit		(16,649,019)		(16,347,588)
Stockholders' deficit attributable to Apollo Medical Holdings, Inc.		(375,773)		(1,215,088)
Non-controlling interest		(128,252)		(408,067)
Total		(504,025)		(1,623,155)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	16,057,989	$	9,483,377

APOLLO MEDICAL HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013

Net revenues	$	11,665,294	$	2,521,421	$	15,759,780	$	5,136,115

Costs and expenses
Cost of services		6,161,645		2,257,945		9,421,484		4,715,875
General and administrative		3,451,907		1,043,565		5,461,239		2,965,395
Depreciation and amortization		193,281		6,528		205,180		12,883
Total costs and expenses		9,806,833		3,308,038		15,087,903		7,694,153

Income (loss) from operations		1,858,461		(786,617)		671,877		(2,558,038)

Other (expense) income
Interest expense		(329,258)		(200,562)		(606,125)		(362,252)
Gain on change in fair value of warrant and conversion feature liabilities		152,140		-		122,135		-
Other		(58,436)		6,441		(60,912)		7,490
Total other expense		(235,554)		(194,121)		(544,902)		(354,762)

Income (loss) before provision for income taxes		1,622,907		(980,738)		126,975		(2,912,800)
Provision for income taxes		86,989		-		98,591		800
Net income (loss)		1,535,918		(980,738)		28,384		(2,913,600)

Net income attributable to noncontrolling interest		(159,608)		-		(329,815)		-

Net income (loss) attributable to Apollo Medical Holdings, Inc.	$	1,376,310	$	(980,738)	$	(301,431)	$	(2,913,600)
Other comprehensive income (loss):
Unrealized change in value of marketable securities		14,499		-		33,088
Comprehensive income (loss)	$	1,390,809	$	(980,738)	$	(268,343)	$	(2,913,600)
NET INCOME (LOSS) PER SHARE:
BASIC	$	0.03	$	(0.03)	$	(0.01)	$	(0.08)
DILUTED	$	0.03	$	(0.03)	$	(0.01)	$	(0.08)
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
BASIC		49,134,549		36,353,413		49,134,549		37,261,375
DILUTED		54,393,442		36,353,413		49,134,549		37,261,375

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. For example, the $5.4 million receivable from CMS relates to ApolloMed ACO's portion of shared savings achieved during the period of July 1, 2012 to December 31, 2013. Whether future revenues will be earned by ApolloMed ACO is uncertain, and, if such amounts are payable, they will be paid on an annual basis significantly after the time earned, and will be contingent on various factors, including whether savings were determined to be achieved in 2014 or in any other period during which savings are measured. 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:

The Ruth Group
David Burke
646-536-7009
dburke@theruthgroup.com

SOURCE Apollo Medical Holdings, Inc.

Released November 18, 2014