Apollo Medical(US:AMEH)2022-05-09 16:00Revenue and Income - Revenue for the three months ended March 31, 2022, was $263.3 million, an increase of $87.2 million or 50% compared to $176.1 million for the same period in 2021[262] - Capitation revenue increased by approximately $77.3 million, driven by organic membership growth in core IPAs and participation in a value-based Medicare fee-for-service model[262] - Net income attributable to Apollo Medical Holdings, Inc. for the three months ended March 31, 2022, was $14.3 million, compared to $13.2 million for the same period in 2021, an increase of $1.1 million[259] - Net income for the three months ended March 31, 2022, was $12,073,000, compared to $14,458,000 for the same period in 2021[274] - Adjusted EBITDA for the three months ended March 31, 2022, was $38,179,000, an increase from $30,518,000 in the same period of 2021, representing a growth of approximately 25.5%[274] Expenses - Total operating expenses for the three months ended March 31, 2022, were $237.0 million, an increase of $82.8 million or 54% compared to $154.3 million for the same period in 2021[258] - General and administrative expenses for the three months ended March 31, 2022, were $11.9 million, an increase of $2.5 million or 26% compared to $9.5 million for the same period in 2021[264] - Other expenses for the three months ended March 31, 2022, were $7.9 million, compared to $0.5 million in 2021, primarily due to an unrealized loss on investments of $9.0 million[266] Guidance and Projections - The company is raising its guidance for total revenue for 2022, with a low end of $1,055 million and a high end of $1,085 million[271] - The guidance for net income for 2022 is set between $38 million and $57 million[271] Membership and Patient Management - The company managed approximately 1.2 million patients as of March 31, 2022, compared to 1.1 million patients for the same period in 2021[261] - The company completed the acquisition of Jade Health Care Medical Group, adding approximately 13,000 members to its membership under capitated arrangements[252] Cash Flow and Investments - Cash provided by operating activities for the three months ended March 31, 2022, was $24,000,000, compared to $10,000,000 for the same period in 2021, indicating a significant increase of 140%[279] - Cash used in investing activities during the three months ended March 31, 2022, was $19.7 million, primarily due to property and equipment purchases of $17.5 million[280] - Total cash, cash equivalents, and investments in marketable securities as of March 31, 2022, amounted to $280.8 million, a slight decrease from $286.5 million at December 31, 2021[278] Debt and Leverage - The total debt balance as of March 31, 2022, was $188,635,000, with long-term debt amounting to $183,101,000[286] - The consolidated leverage ratio as of March 31, 2022, was 1.04, well below the required maximum of 3.75[292] - The average effective interest rate on total debt for the three months ended March 31, 2022, was 1.78%, down from 2.08% in the same period of 2021[295] Working Capital and Assets - Working capital as of March 31, 2022, totaled $284.0 million, a slight increase from $283.4 million at December 31, 2021[278] - Total Excluded Assets as of March 31, 2022, were $165,754,000, down from $174,802,000 at December 31, 2021[284] Borrowings and Interest Rates - As of March 31, 2022, the company had $180.0 million in outstanding borrowings under its Amended Credit Agreement, with interest rates based on LIBOR plus a spread of 1.25% to 2.50%[305] - Tag 8, a VIE consolidated by the company, had $1.3 million in outstanding borrowings for a Construction Loan, with interest rates determined by the bank's index rate[305] - The company had $7.3 million in outstanding borrowings for real estate loans related to ZLL, MPP, and AMG Properties, with interest rates subject to changes based on the Wall Street Journal Prime Rate[305] - A hypothetical 1% change in interest rates for the company's outstanding borrowings would have increased or decreased interest expense by $1.9 million for the three months ended March 31, 2022[305] - The company assumed $6.4 million in existing loans from MPP, $0.7 million from AMG Properties, and $0.7 million from ZLL upon acquisition[296] - The company has entered into intercompany loan agreements with AMH, MMG, AKM, SCHC, and BAHA, with a total intercompany facility of $23.25 million[299] - The maximum balance during the period for AMH's intercompany loan was $6.588 million, while MMG had a maximum balance of $3.663 million[299] Financial Condition and Accounting Policies - The company has no off-balance sheet arrangements that could materially affect its financial condition as of March 31, 2022[303] - Inflation has had a de minimis effect on the company's operations over the last two fiscal years[304] - The company’s critical accounting policies involve significant judgments and estimates that could lead to materially different results under varying assumptions[300]