Revenue Performance - For the three months ended September 30, 2023, total revenue was $348.2 million, a 10% increase from $317.0 million in the same period of 2022, primarily driven by a $78.1 million increase in capitation revenue [238]. - For the nine months ended September 30, 2023, total revenue reached $1,033.6 million, reflecting a 22% increase from $850.0 million in the same period of 2022, with capitation revenue increasing by $229.2 million [240]. - Revenue for the three months ended September 30, 2023, was $326.5 million, an increase of $32.9 million, or 11%, compared to the same period in 2022 [268]. - Revenue for the nine months ended September 30, 2023, was $966.4 million, an increase of $184.2 million, or 24%, compared to the same period in 2022 [269]. - Revenue for the three months ended September 30, 2023, was $36.9 million, an increase of 22% compared to $30.3 million for the same period in 2022 [273]. - Revenue for the nine months ended September 30, 2023, was $102.5 million, reflecting a 15% increase from $89.3 million in the same period of 2022 [274]. Operating Performance - Operating expenses for the three months ended September 30, 2023, totaled $309.1 million, a 16% increase from $266.9 million in the same period of 2022 [233]. - Operating income for the three months ended September 30, 2023, was $40.3 million, a decrease of $6.0 million, or 13%, compared to the same period in 2022 [268]. - Operating income for the nine months ended September 30, 2023, was $90.5 million, an increase of $18.8 million, or 26%, compared to the same period in 2022 [269]. - Operating income for the three months ended September 30, 2023, was $6.4 million, up 27% from $5.1 million in the prior year [273]. - Operating income for the nine months ended September 30, 2023, decreased to $19.8 million, down 17% from $23.8 million in the previous year [274]. Net Income - Net income for the three months ended September 30, 2023, was $27.973 million, a 17% increase from $23.897 million in the same period of 2022 [233]. - Net income attributable to Apollo Medical Holdings, Inc. for the three months ended September 30, 2023, was $22.1 million, a decrease of $1.1 million compared to the same period in 2022 [264]. - The net income guidance for 2023 is set between $59.5 million and $71.5 million [276]. Cash Flow and Investments - Cash, cash equivalents, and investments totaled $277.0 million as of September 30, 2023, down from $293.6 million at the end of 2022 [283]. - Cash provided by operating activities for the nine months ended September 30, 2023, was $48.9 million, compared to cash used in operating activities of $2.8 million in the same period of 2022 [287]. - Cash used in investing activities for the nine months ended September 30, 2023, was $54.1 million, significantly higher than $20.3 million in the prior year, representing a 166% increase [286]. - Cash used in financing activities for the nine months ended September 30, 2023, was $8.6 million, a significant decrease from $26.0 million in the same period of 2022 [289]. Debt and Financing - The company entered into a Credit Agreement Amendment on November 3, 2023, increasing its credit facility to $700.0 million, including a new term loan of up to $300.0 million [223]. - The Amended Credit Agreement provides a total facility of $700.0 million, including a $400.0 million revolving credit facility and a new term loan of up to $300.0 million [296]. - As of September 30, 2023, the Company had $180.0 million in outstanding borrowings under the Amended Credit Agreement, with interest rates ranging from 1.25% to 2.50% based on leverage ratio [305]. - Future debt commitments include $181.2 million due in 2026, which represents the largest single-year obligation [295]. - A hypothetical 1% change in interest rates would have impacted the interest expense by $2.1 million for the three months ended September 30, 2023 [305]. Acquisitions and Partnerships - The company announced the acquisition of assets related to Community Family Care Medical Group, managing healthcare for over 200,000 members in Los Angeles [225]. - A partnership was established with Associated Hispanic Physicians, which includes over 150 primary care providers and 450 specialists, expected to onboard by March 2024 [226]. Other Financial Metrics - General and administrative expenses for the three months ended September 30, 2023, were $29.4 million, an increase of $8.0 million, or 38%, compared to the same period in 2022 [244]. - Interest expense for the three months ended September 30, 2023, was $3.8 million, an increase of $1.4 million, due to higher interest rates [252]. - Interest income for the three months ended September 30, 2023, was $3.3 million, compared to $0.2 million for the same period in 2022 [254]. - Unrealized loss for the three months ended September 30, 2023, was $0.3 million, a decrease of $6.4 million compared to the same period in 2022 [256]. - Other income for the three months ended September 30, 2023, was $1.9 million, an increase of $3.2 million compared to a loss of $1.3 million for the same period in 2022 [258]. Patient Management - The company managed approximately 0.9 million patients as of September 30, 2023, down from 1.2 million in the same period of 2022 [235]. Excluded Assets - Total Excluded Assets as of September 30, 2023, amounted to $124.8 million, slightly down from $127.9 million as of December 31, 2022 [292]. - Excluded Assets net loss for the nine months ended September 30, 2023, was $5.0 million, an improvement compared to a loss of $16.0 million in the same period of 2022 [292]. - Cash and cash equivalents in Excluded Assets decreased to $11.6 million as of September 30, 2023, from $30.2 million at the end of 2022 [292]. - Total operating expenses for Excluded Assets increased to $3.3 million for the nine months ended September 30, 2023, compared to $2.9 million in the prior year [292].
Astrana Health(ASTH) - 2023 Q3 - Quarterly Report