Apollo Medical(AMEH) - 2019 Q1 - Quarterly Report

Revenue Performance - Total revenue for the three months ended March 31, 2019, was $95.8 million, a decrease of $28.1 million or 23% compared to $123.9 million for the same period in 2018[251] - Capitation revenue decreased by approximately $14.4 million primarily due to the delayed commencement of the 2019 performance year by CMS, resulting in no revenues recognized in Q1 2019[251] - Risk pool settlements and incentives decreased by $7.9 million due to refined assumptions regarding expected net surplus from affiliated hospitals' risk pools[252] - Management fee income decreased by $3.1 million due to a reduction in the number of patients served by affiliated physician groups[253] Expense Overview - Total expenses for the three months ended March 31, 2019, were $99.1 million, a decrease of $2.2 million or 2% compared to $101.2 million for the same period in 2018[247] - General and administrative expenses for the three months ended March 31, 2019, were $10.3 million, a decrease of $1.0 million or 9% compared to $11.3 million for the same period in 2018[257] - Provision for doubtful accounts increased to $1.0 million for the three months ended March 31, 2019, compared to $0.2 million for the same period in 2018, reflecting management's assessment of collectability[259] Net Income and Loss - Net loss attributable to Apollo Medical Holdings, Inc. for the three months ended March 31, 2019, was $2.5 million, a decrease of $18.2 million or 116% compared to net income of $15.7 million for the same period in 2018[249] - Net loss attributable to noncontrolling interests was $2.6 million in Q1 2019, a decrease of $16.2 million or 119% from net income of $13.6 million in Q1 2018[265] Patient Management - The total number of patients managed decreased to approximately 821,000 as of March 31, 2019, down from 963,000 in the same period in 2018[250] Cash Flow and Financial Position - Cash, cash equivalents, and marketable securities totaled $94.2 million as of March 31, 2019, down 12% from $100.8 million at December 31, 2018[266] - Cash used in operating activities during Q1 2019 was $4.0 million, driven by net losses of $2.5 million and adjustments for non-cash items[268] - Cash used in financing activities in Q1 2019 was $9.8 million, primarily due to dividend payments of $10.0 million[270] Credit Facilities - NMM has a credit facility with Preferred Bank allowing borrowing up to $20.0 million, with $13.0 million outstanding as of March 31, 2019[271] - APC has a credit facility with Preferred Bank increased to $40.0 million, with no amounts drawn as of March 31, 2019[273] Intercompany Loans - Total intercompany loans during the three-month period ended March 31, 2019 amounted to $24.25 million, with a maximum balance of $17.54 million during the period[276] Other Income and Tax - Interest income for Q1 2019 was $0.3 million, an increase of 50% from $0.2 million in Q1 2018[262] - Other income for Q1 2019 was approximately $0.2 million, doubling from $0.1 million in Q1 2018 due to increased rental income[263] - Income tax benefit for Q1 2019 was $1.4 million, compared to a tax provision expense of $7.2 million in Q1 2018, reflecting a significant change due to current period losses[264] Investment Losses - Loss from equity method investments for the three months ended March 31, 2019, was $0.8 million, compared to a loss of $28,024 for the same period in 2018, primarily due to losses from certain investments[260]