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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2022
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___ to ___.
Commission File No. 001-37392
Apollo Medical Holdings, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
95-4472349 |
(State or Other Jurisdiction |
(I.R.S. Employer |
of Incorporation) |
Identification Number) |
1668 S. Garfield Avenue, 2nd Floor, Alhambra, California 91801
(Address of principal executive offices and zip code)
(626) 282-0288
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class |
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Trading Symbol |
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Name of Each Exchange on Which Registered |
Common Stock, $0.001 par value per share |
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AMEH |
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Nasdaq Capital Market |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer |
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): ☐ Yes ☒ No
As of October 28, 2022, there were 56,723,447 shares of common stock of the registrant, $0.001 par value per share, issued and outstanding.
APOLLO MEDICAL HOLDINGS, INC.
INDEX TO FORM 10-Q FILING
TABLE OF CONTENTS
Glossary
The following abbreviations or acronyms that may be used in this document shall have the adjacent meanings set forth below:
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Accountable Health Care |
Accountable Health Care IPA, a Professional Medical Corporation |
AHMC |
AHMC Healthcare Inc. |
AIPBP |
All-Inclusive Population-Based Payments |
AKM |
AKM Medical Group, Inc. |
Alpha Care |
Alpha Care Medical Group, Inc. |
AMG |
AMG, a Professional Medical Corporation |
AMG Properties |
AMG Properties, LLC |
AMH |
ApolloMed Hospitalists, a Medical Corporation |
AMM |
Apollo Medical Management, Inc. |
AP-AMH |
AP-AMH Medical Corporation |
AP-AMH 2 |
AP-AMH 2 Medical Corporation |
APAACO |
APA ACO, Inc. |
APC |
Allied Physicians of California, a Professional Medical Corporation |
APCMG |
Access Primary Care Medical Group |
APC-LSMA |
APC-LSMA Designated Shareholder Medical Corporation |
BAHA |
Bay Area Hospitalist Associates |
CAIPA MSO |
CAIPA MSO, LLC |
CDSC |
Concourse Diagnostic Surgery Center, LLC |
CMS |
Centers for Medicare & Medicaid Services |
DMHC |
California Department of Managed Healthcare |
DMG |
Diagnostic Medical Group of Southern California |
GPDC |
Global and Professional Direct Contracting |
HSMSO |
Health Source MSO Inc., a California corporation |
ICC |
AHMC International Cancer Center, a Medical Corporation |
IPA |
independent practice association |
LMA |
LaSalle Medical Associates |
MMG |
Maverick Medical Group, Inc. |
MPP |
Medical Property Partners, LLC |
NGACO |
Next Generation Accountable Care Organization |
NMM |
Network Medical Management, Inc. |
PMIOC |
Pacific Medical Imaging and Oncology Center, Inc. |
SCHC |
Southern California Heart Centers |
Sun Labs |
Sun Clinical Laboratories |
Tag 6 |
Tag-6 Medical Investments Group, LLC |
Tag 8 |
Tag-8 Medical Investments Group, LLC |
UCAP |
Universal Care Acquisition Partners, LLC |
UCI |
Universal Care, Inc. |
VIE |
variable interest entity |
ZLL |
ZLL Partners, LLC |
INTRODUCTORY NOTE
Unless the context dictates otherwise, references in this Quarterly Report on Form 10-Q to the “Company,” “we,” “us,” “our,” and similar words are references to Apollo Medical Holdings, Inc., a Delaware corporation, and its consolidated subsidiaries and affiliated entities, as appropriate, including its consolidated variable interest entities (“VIEs”) and “ApolloMed” refers to Apollo Medical Holdings, Inc.
The Centers for Medicare & Medicaid Services (“CMS”) have not reviewed any statements contained in this Report, including statements describing the participation of APA ACO, Inc. (“APAACO”) in the Next Generation Accountable Care Organization (“NGACO”) model, or the Global and Professional Direct Contracting (“GPDC”) model.
Trade names and trademarks of the Company and its subsidiaries referred to herein, and their respective logos, are our property. This Quarterly Report on Form 10-Q may contain additional trade names and/or trademarks of other companies, which are the property of their respective owners. We do not intend our use or display of other companies’ trade names and/or trademarks, if any, to imply an endorsement or sponsorship of us by such companies, or any relationship with any of these companies.
NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any statements about our business, financial condition, operating results, plans, objectives, expectations, and intentions, any projections of earnings, revenue, EBITDA, Adjusted EBITDA, or other financial items, such as projected payments from CMS and our future liquidity; any statements of any plans, strategies, and objectives of management for future operations, such as the material opportunities that we believe exist for our company; any statements concerning proposed services, developments, mergers, or acquisitions; any statements regarding the outlook on our NGACO, GPDC model, or strategic transactions; any statements regarding management’s view of future expectations and prospects for us; any statements about prospective adoption of new accounting standards or effects of changes in accounting standards; any statements regarding future economic conditions or performance; any statements of belief; any statements of assumptions underlying any of the foregoing; and other statements that are not historical facts. Forward-looking statements may be identified by the use of forward-looking terms, such as “anticipate,” “could,” “can,” “may,” “might,” “potential,” “predict,” “should,” “estimate,” “expect,” “project,” “believe,” “think,” “plan,” “envision,” “intend,” “continue,” “target,” “seek,” “contemplate,” “budgeted,” “will,” “would,” and the negative of such terms, other variations on such terms or other similar or comparable words, phrases, or terminology. These forward-looking statements present our estimates and assumptions only as of the date of this Quarterly Report on Form 10-Q and are subject to change.
Forward-looking statements involve risks and uncertainties and are based on the current beliefs, expectations, and certain assumptions of management. Some or all of such beliefs, expectations, and assumptions may not materialize or may vary significantly from actual results. Such statements are qualified by important economic, competitive, governmental, and technological factors that could cause our business, strategy, or actual results or events to differ materially from those in our forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2022, including the risk factors discussed under the heading “Risk Factors” in Part I, Item IA thereof. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change, and significant risks and uncertainties that could cause actual conditions, outcomes, and results to differ materially from those indicated by such statements.
PART I - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
APOLLO MEDICAL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
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September 30, 2022 |
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December 31, 2021 |
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(Unaudited) |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ |
184,016 |
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$ |
233,097 |
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Investments in marketable securities |
33,281 |
|
|
53,417 |
|
Receivables, net |
69,386 |
|
|
10,608 |
|
Receivables, net – related parties |
91,208 |
|
|
69,376 |
|
Income taxes receivable |
12,224 |
|
|
— |
|
Other receivables |
41,799 |
|
|
9,647 |
|
Prepaid expenses and other current assets |
11,702 |
|
|
18,637 |
|
Loan receivable – related party |
— |
|
|
4,000 |
|
|
|
|
|
Total current assets |
443,616 |
|
|
398,782 |
|
|
|
|
|
Non-current assets |
|
|
|
Land, property, and equipment, net |
104,149 |
|
|
53,186 |
|
Intangible assets, net |
73,231 |
|
|
82,807 |
|
Goodwill |
257,482 |
|
|
253,039 |
|
Loans receivable |
518 |
|
|
569 |
|
Loan receivable - related party |
2,125 |
|
|
— |
|
Investments in other entities – equity method |
38,954 |
|
|
41,715 |
|
Investments in privately held entities |
896 |
|
|
896 |
|
Operating lease right-of-use assets |
16,338 |
|
|
15,441 |
|
Other assets |
6,097 |
|
|
5,928 |
|
|
|
|
|
Total non-current assets |
499,790 |
|
|
453,581 |
|
|
|
|
|
Total assets (1)
|
$ |
943,406 |
|
|
$ |
852,363 |
|
|
|
|
|
Liabilities, mezzanine equity, and stockholders’ equity |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
$ |
47,366 |
|
|
$ |
43,951 |
|
Fiduciary accounts payable |
6,506 |
|
|
10,534 |
|
Medical liabilities |
94,884 |
|
|
55,783 |
|
Income taxes payable |
— |
|
|
652 |
|
Dividend payable |
556 |
|
|
556 |
|
Finance lease liabilities |
509 |
|
|
486 |
|
Operating lease liabilities |
3,208 |
|
|
2,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2022 |
|
December 31, 2021 |
|
(Unaudited) |
|
|
Current portion of long-term debt |
3,162 |
|
|
780 |
|
|
|
|
|
Total current liabilities |
156,191 |
|
|
115,371 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Deferred tax liability |
4,701 |
|
|
9,127 |
|
Finance lease liabilities, net of current portion |
931 |
|
|
973 |
|
Operating lease liabilities, net of current portion |
16,143 |
|
|
13,198 |
|
Long-term debt, net of current portion and deferred financing costs |
199,150 |
|
|
182,917 |
|
Other long-term liabilities |
12,964 |
|
|
14,777 |
|
|
|
|
|
Total non-current liabilities |
233,889 |
|
|
220,992 |
|
|
|
|
|
Total liabilities (1)
|
390,080 |
|
|
336,363 |
|
|
|
|
|
Commitments and contingencies (Note 12) |
|
|
|
|
|
|
|
Mezzanine equity |
|
|
|
Non-controlling interest in Allied Physicians of California, a Professional Medical Corporation |
39,820 |
|
|
55,510 |
|
|
|
|
|
Stockholders’ equity |
|
|
|
Series A Preferred stock, $0.001 par value per share; 5,000,000 shares authorized (inclusive of all preferred stock, including Series B Preferred stock); 1,111,111 issued and zero outstanding |
— |
|
|
— |
|
Series B Preferred stock, $0.001 par value per share; 5,000,000 shares authorized (inclusive of all preferred stock, including Series A Preferred stock); 555,555 issued and zero outstanding |
— |
|
|
— |
|
Common stock, $0.001 par value per share; 100,000,000 shares authorized, 44,884,522 and 44,630,873 shares issued and outstanding, excluding 11,175,702 and 10,925,702 treasury shares, as of September 30, 2022 and December 31, 2021, respectively |
45 |
|
|
45 |
|
Additional paid-in capital |
315,115 |
|
|
310,876 |
|
Retained earnings |
195,278 |
|
|
143,629 |
|
|
510,438 |
|
|
454,550 |
|
|
|
|
|
Non-controlling interest |
3,068 |
|
|
5,940 |
|
|
|
|
|
Total stockholders’ equity |
513,506 |
|
|
460,490 |
|
|
|
|
|
Total liabilities, mezzanine equity, and stockholders’ equity |
$ |
943,406 |
|
|
$ |
852,363 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
(1) The Company’s consolidated balance sheets include the assets and liabilities of its consolidated VIEs. The consolidated balance sheets include total assets that can be used only to settle obligations of the Company’s consolidated VIEs totaling $590.7 million and $567.0 million as of September 30, 2022 and December 31, 2021, 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 $129.2 million and $91.7 million as of September 30, 2022 and December 31, 2021, respectively. The VIE balances do not include $435.9 million of investment in affiliates and $37.8 million of amounts due from affiliates as of September 30, 2022 and $802.8 million of investment in affiliates and $6.6 million of amounts due from affiliates as of December 31, 2021 as these are eliminated upon consolidation and not presented within the consolidated balance sheets. See Note 16 — “Variable Interest Entities (VIEs)” for further detail.
APOLLO MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue |
|
|
|
|
|
|
|
Capitation, net |
$ |
227,571 |
|
|
$ |
149,059 |
|
|
$ |
677,253 |
|
|
$ |
438,350 |
|
Risk pool settlements and incentives |
64,849 |
|
|
59,923 |
|
|
101,717 |
|
|
94,146 |
|
Management fee income |
10,030 |
|
|
9,652 |
|
|
30,487 |
|
|
26,345 |
|
Fee-for-service, net |
12,859 |
|
|
7,260 |
|
|
35,694 |
|
|
14,968 |
|
Other income |
1,692 |
|
|
1,223 |
|
|
4,804 |
|
|
5,006 |
|
|
|
|
|
|
|
|
|
Total revenue |
317,001 |
|
|
227,117 |
|
|
849,955 |
|
|
578,815 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
Cost of services, excluding depreciation and amortization |
240,768 |
|
|
147,473 |
|
|
691,566 |
|
|
424,303 |
|
General and administrative expenses |
21,388 |
|
|
21,813 |
|
|
53,224 |
|
|
45,476 |
|
Depreciation and amortization |
4,754 |
|
|
4,671 |
|
|
13,480 |
|
|
13,105 |
|
|
|
|
|
|
|
|
|
Total expenses |
266,910 |
|
|
173,957 |
|
|
758,270 |
|
|
482,884 |
|
|
|
|
|
|
|
|
|
Income from operations |
50,091 |
|
|
53,160 |
|
|
91,685 |
|
|
95,931 |
|
|
|
|
|
|
|
|
|
Other (expense) income |
|
|
|
|
|
|
|
Income (loss) from equity method investments |
1,452 |
|
|
132 |
|
|
4,397 |
|
|
(3,680) |
|
Gain on sale of equity method investment |
— |
|
|
2,193 |
|
|
— |
|
|
2,193 |
|
Interest expense |
(2,422) |
|
|
(967) |
|
|
(5,348) |
|
|
(4,343) |
|
Interest income |
223 |
|
|
420 |
|
|
690 |
|
|
1,331 |
|
Unrealized (loss) gain on investments |
(6,763) |
|
|
(60,943) |
|
|
(17,591) |
|
|
22,826 |
|
Other (expense) income |
(1,318) |
|
|
500 |
|
|
2,328 |
|
|
(14,080) |
|
|
|
|
|
|
|
|
|
Total other (expense) income, net |
(8,828) |
|
|
(58,665) |
|
|
(15,524) |
|
|
4,247 |
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes |
41,263 |
|
|
(5,505) |
|
|
76,161 |
|
|
100,178 |
|
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes |
13,867 |
|
|
(120) |
|
|
26,101 |
|
|
31,575 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
27,396 |
|
|
(5,385) |
|
|
50,060 |
|
|
68,603 |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to non-controlling interest |
1,410 |
|
|
(39,664) |
|
|
(1,589) |
|
|
8,515 |
|
|
|
|
|
|
|
|
|
Net income attributable to Apollo Medical Holdings, Inc. |
$ |
25,986 |
|
|
$ |
34,279 |
|
|
51,649 |
|
|
$ |
60,088 |
|
|
|
|
|
|
|
|
|
Earnings per share – basic |
$ |
0.58 |
|
|
$ |
0.77 |
|
|
$ |
1.15 |
|
|
$ |
1.38 |
|
|
|
|
|
|
|
|
|
Earnings per share – diluted |
$ |
0.56 |
|
|
$ |
0.74 |
|
|
$ |
1.12 |
|
|
$ |
1.33 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
APOLLO MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF MEZZANINE AND STOCKHOLDERS’ EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine Equity – Non-controlling Interest in APC |
|
|
|
|
|
|
|
Retained Earnings |
|
|
|
|
|
|
Common Stock Outstanding |
|
Additional Paid-in Capital |
|
|
Non-controlling Interest |
|
Stockholders’ Equity |
|
|
Shares |
|
Amount |
|
|
|
|
Balance at January 1, 2022 |
$ |
55,510 |
|
|
44,630,873 |
|
|
$ |
45 |
|
|
$ |
310,876 |
|
|
$ |
143,629 |
|
|
$ |
5,940 |
|
|
$ |
460,490 |
|
Net (loss) income |
(3,129) |
|
|
— |
|
|
— |
|
|
— |
|
|
14,264 |
|
|
938 |
|
|
15,202 |
|
Purchase of non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(200) |
|
|
(200) |
|
Sale of non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
36 |
|
|
36 |
|
Share buy back |
(230) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Shares issued for vesting of restricted stock awards |
— |
|
|
81,779 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Shares issued for exercise of options and warrants |
— |
|
|
124,735 |
|
|
— |
|
|
1,573 |
|
|
— |
|
|
— |
|
|
1,573 |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
3,055 |
|
|
— |
|
|
— |
|
|
3,055 |
|
Issuance of shares for business acquisition |
— |
|
|
18,756 |
|
|
— |
|
|
1,000 |
|
|
— |
|
|
— |
|
|
1,000 |
|
Cancellation of restricted stock awards |
— |
|
|
(11,084) |
|
|
— |
|
|
(457) |
|
|
— |
|
|
— |
|
|
(457) |
|
Dividends |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,178) |
|
|
(1,178) |
|
Balance at March 31, 2022 |
$ |
52,151 |
|
|
44,845,059 |
|
|
$ |
45 |
|
|
$ |
316,047 |
|
|
$ |
157,893 |
|
|
$ |
5,536 |
|
|
$ |
479,521 |
|
Net (loss) income |
(2,154) |
|
|
— |
|
|
— |
|
|
— |
|
|
11,399 |
|
|
1,346 |
|
|
12,745 |
|
Shares issued for vesting of restricted stock awards |
— |
|
|
108,933 |
|
|
— |
|
|
(253) |
|
|
— |
|
|
— |
|
|
(253) |
|
Shares issued for exercise of options and warrants |
— |
|
|
15,718 |
|
|
— |
|
|
165 |
|
|
— |
|
|
— |
|
|
165 |
|
Purchase of treasury shares |
— |
|
|
(250,000) |
|
|
— |
|
|
(9,250) |
|
|
— |
|
|
— |
|
|
(9,250) |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
3,920 |
|
|
— |
|
|
— |
|
|
3,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
371 |
|
|
371 |
|
Dividends |
(10,000) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,374) |
|
|
(1,374) |
|
Balance at June 30, 2022 |
$ |
39,997 |
|
|
44,719,710 |
|
|
$ |
45 |
|
|
$ |
310,629 |
|
|
$ |
169,292 |
|
|
$ |
5,879 |
|
|
$ |
485,845 |
|
Net (loss) income |
(9) |
|
|
— |
|
|
— |
|
|
— |
|
|
25,986 |
|
|
1,419 |
|
|
27,405 |
|
Purchase of non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,138) |
|
|
(4,138) |
|
Sale of non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
28 |
|
|
28 |
|
Share buy back |
(168) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Shares issued for vesting of restricted stock awards |
— |
|
|
2,570 |
|
|
— |
|
|
(62) |
|
|
— |
|
|
— |
|
|
(62) |
|
Shares issued for exercise of options and warrants |
— |
|
|
162,242 |
|
|
— |
|
|
1,046 |
|
|
— |
|
|
— |
|
|
1,046 |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
3,502 |
|
|
— |
|
|
— |
|
|
3,502 |
|
Dividends |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(120) |
|
|
(120) |
|
Balance at September 30, 2022 |
$ |
39,820 |
|
|
44,884,522 |
|
|
$ |
45 |
|
|
$ |
315,115 |
|
|
$ |
195,278 |
|
|
$ |
3,068 |
|
|
$ |
513,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine Equity – Non-controlling Interest in APC |
|
|
|
|
|
|
|
Retained Earnings |
|
|
|
|
|
|
Common Stock Outstanding |
|
Additional Paid-in Capital |
|
|
Non-controlling Interest |
|
Stockholders’ Equity |
|
|
Shares |
|
Amount |
|
|
|
|
Balance at January 1, 2021 |
$ |
114,237 |
|
|
42,249,137 |
|
|
$ |
42 |
|
|
$ |
261,011 |
|
|
$ |
69,771 |
|
|
$ |
87 |
|
|
$ |
330,911 |
|
Net income |
760 |
|
|
— |
|
|
— |
|
|
— |
|
|
13,151 |
|
|
547 |
|
|
13,698 |
|
Purchase of non-controlling interest |
(150) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(75) |
|
|
(75) |
|
Sale of non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
37 |
|
|
37 |
|
Shares issued for vesting of restricted stock awards |
— |
|
|
7,689 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Shares issued for exercise of options and warrants |
— |
|
|
421,002 |
|
|
1 |
|
|
4,255 |
|
|
— |
|
|
— |
|
|
4,256 |
|
Purchase of treasury shares |
— |
|
|
(34,158) |
|
|
— |
|
|
(342) |
|
|
— |
|
|
— |
|
|
(342) |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
1,346 |
|
|
— |
|
|
— |
|
|
1,346 |
|
Cancellation of restricted stock awards |
— |
|
|
(5,281) |
|
|
— |
|
|
(144) |
|
|
— |
|
|
— |
|
|
(144) |
|
Balance at March 31, 2021 |
$ |
114,847 |
|
|
42,638,389 |
|
|
$ |
43 |
|
|
$ |
266,126 |
|
|
$ |
82,922 |
|
|
$ |
596 |
|
|
$ |
349,687 |
|
Net income |
46,859 |
|
|
— |
|
|
— |
|
|
— |
|
|
12,658 |
|
|
13 |
|
|
12,671 |
|
Sale of non-controlling interest |
150 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Sale of shares by non-controlling interest |
— |
|
|
1,638,045 |
|
|
1 |
|
|
40,132 |
|
|
— |
|
|
— |
|
|
40,133 |
|
Shares issued for vesting of restricted stock awards |
— |
|
|
22,284 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Shares issued for exercise of options and warrants |
— |
|
|
53,504 |
|
|
— |
|
|
561 |
|
|
— |
|
|
— |
|
|
561 |
|
Purchase of treasury shares |
— |
|
|
(100,000) |
|
|
— |
|
|
(2,450) |
|
|
— |
|
|
— |
|
|
(2,450) |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
1,556 |
|
|
— |
|
|
— |
|
|
1,556 |
|
Cancellation of restricted stock awards |
— |
|
|
(5,426) |
|
|
— |
|
|
(189) |
|
|
— |
|
|
— |
|
|
(189) |
|
Investment in non-controlling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,769 |
|
|
3,769 |
|
Dividends |
(20,000) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,156) |
|
|
(1,156) |
|
Balance at June 30, 2021 |
$ |
141,856 |
|
|
44,246,796 |
|
|
$ |
44 |
|
|
$ |
305,736 |
|
|
$ |
95,580 |
|
|
$ |
3,222 |
|
|
$ |
404,582 |
|
Net income |
(40,356) |
|
|
— |
|
|
— |
|
|
— |
|
|
34,279 |
|
|
692 |
|
|
34,971 |
|
Shares issued for exercise of options and warrants |
— |
|
|
190,254 |
|
|
— |
|
|
1,785 |
|
|
— |
|
|
— |
|
|
1,785 |
|
Purchase of treasury shares |
— |
|
|
(40,000) |
|
|
— |
|
|
(2,947) |
|
|
— |
|
|
— |
|
|
(2,947) |
|
Share-based compensation |
— |
|
|
— |
|
|
— |
|
|
1,420 |
|
|
— |
|
|
— |
|
|
1,420 |
|
Acquisition of noncontrolling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
500 |
|
|
500 |
|
Noncontrolling interest capital charge |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
10 |
|
Dividends |
(10,000) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Balance at September 30, 2021 |
$ |
91,500 |
|
|
44,397,050 |
|
|
$ |
44 |
|
|
$ |
305,994 |
|
|
$ |
129,859 |
|
|
$ |
4,424 |
|
|
$ |
440,321 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
APOLLO MEDICAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
2022 |
|
2021 |
Cash flows from operating activities |
|
|
|
Net income |
$ |
50,060 |
|
|
$ |
68,603 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
13,480 |
|
|
13,105 |
|
Amortization of debt issuance cost |
703 |
|
|
900 |
|
Share-based compensation |
10,477 |
|
|
4,322 |
|
Gain on sale of investments |
(2,272) |
|
|
(2,193) |
|
Unrealized loss (gain) on investments |
21,894 |
|
|
(22,826) |
|
(Income) loss from equity method investments |
(4,397) |
|
|
3,680 |
|
Impairment of beneficial interest |
— |
|
|
15,723 |
|
Unrealized (gain) loss on interest rate swaps |
(4,302) |
|
|
1,069 |
|
Deferred tax |
(2,330) |
|
|
6,847 |
|
Other |
901 |
|
|
189 |
|
Changes in operating assets and liabilities, net of business combinations: |
|
|
|
Receivables, net |
(58,325) |
|
|
(10,686) |
|
Receivables, net – related parties |
(21,832) |
|
|
(4,367) |
|
Other receivables |
(31,988) |
|
|
(1,477) |
|
Prepaid expenses and other current assets |
3,228 |
|
|
5,064 |
|
Right-of-use assets |
2,843 |
|
|
2,440 |
|
Other assets |
(682) |
|
|
(954) |
|
Accounts payable and accrued expenses |
765 |
|
|
14,362 |
|
Fiduciary accounts payable |
(4,029) |
|
|
(815) |
|
Medical liabilities |
37,491 |
|
|
(7,633) |
|
Income taxes payable |
(14,555) |
|
|
(300) |
|
Operating lease liabilities |
(3,059) |
|
|
(2,528) |
|
Other long-term liabilities |
3,118 |
|
|
— |
|
Net cash (used in) provided by operating activities |
(2,811) |
|
|
82,525 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
Payments for business acquisition, net of cash acquired |
(5,614) |
|
|
(2,575) |
|
Proceeds from repayment of loans receivable – related parties |
4,051 |
|
|
41 |
|
Purchase of marketable securities |
(1,750) |
|
|
(1,009) |
|
Purchase of investment – equity method |
— |
|
|
(13,384) |
|
Proceeds from sale of equity method investment |
— |
|
|
6,375 |
|
Purchases of property and equipment |
(22,054) |
|
|
(16,420) |
|
Cash received from consolidation of VIE |
— |
|
|
3,322 |
|
Proceeds from sale of marketable securities |
6,438 |
|
|
1,106 |
|
Distribution from investment - equity method |
400 |
|
|
— |
|
Contribution to investment - equity method |
(1,785) |
|
|
— |
|
Net cash used in investing activities |
(20,314) |
|
|
(22,544) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, |
|
2022 |
|
2021 |
Dividends paid |
(12,676) |
|
|
(31,089) |
|
Repayment of long-term debt |
(3,714) |
|
|
(238,254) |
|
Payment of finance lease obligations |
(417) |
|
|
(81) |
|
Proceeds from the exercise of stock options and warrants |
2,784 |
|
|
6,601 |
|
Repurchase of shares |
(9,648) |
|
|
(5,739) |
|
Proceeds from sale of non-controlling interest |
67 |
|
|
48 |
|
Purchase of non-controlling interest |
(4,338) |
|
|
(75) |
|
Borrowings on loans |
1,986 |
|
|
180,000 |
|
Proceeds from sale of shares |
— |
|
|
40,133 |
|
Payment of debt issuance costs |
— |
|
|
(727) |
|
Net cash used in financing activities |
(25,956) |
|
|
(49,183) |
|
|
|
|
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
(49,081) |
|
|
10,798 |
|
|
|
|
|
Cash, cash equivalents, and restricted cash, beginning of period |
233,097 |
|
|
193,970 |
|
|
|
|
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
184,016 |
|
|
$ |
204,768 |
|
|
|
|
|