Apollo Medical(US:AMEH)2025-08-07 21:15Financial Performance - Total revenue for the quarter ended June 30, 2025, was $654.8 million, a 34.6% increase from $486.3 million in the same quarter of 2024[27] - Capitation revenue, net, reached $614.1 million, up 38.7% from $442.6 million year-over-year[27] - Operating income for the quarter was $20.3 million, a decrease of 32.5% compared to $30.1 million in the prior year[27] - The company reported a net income of $20.3 million for the six months ended June 30, 2025, compared to $60.2 million for the same period in 2024, reflecting a significant decline[27] - For the three months ended June 30, 2025, net income attributable to Astrana Health, Inc. was $9,423,000, a decrease of 50.8% compared to $19,171,000 for the same period in 2024[28] - Earnings per share (EPS) for the six months ended June 30, 2025, was $0.33 (diluted), down from $0.72 in the same period of 2024, reflecting a 54.2% decline[28] - Basic earnings per share for Q2 2025 was $0.19, a decrease from $0.40 in Q2 2024[135] - Basic earnings per share for the six months ended June 30, 2025, decreased to $0.33 from $0.72 in 2024, representing a decline of approximately 54.2%[136] Assets and Liabilities - Total current assets increased to $729.2 million as of June 30, 2025, compared to $638.5 million at the end of 2024, reflecting a 14.2% growth[21] - Total liabilities rose to $904.4 million, up from $840.7 million at the end of 2024, indicating a 7.6% increase[22] - Stockholders' equity increased to $765.5 million as of June 30, 2025, compared to $712.7 million at the end of 2024, representing a growth of 7.4%[22] - The Company’s total liabilities decreased to $230.253 million as of June 30, 2025, from $256.076 million as of December 31, 2024, a decrease of about 10.1%[144] - Total current liabilities decreased to $192.069 million as of June 30, 2025, from $222.688 million as of December 31, 2024, a reduction of about 13.8%[144] - Total debt decreased to $418.8 million as of June 30, 2025, from $438.1 million as of December 31, 2024, a reduction of 4.9%[92] Cash Flow and Investments - Total cash provided by operating activities for the six months ended June 30, 2025, was $107,527,000, significantly higher than $29,165,000 for the same period in 2024, marking a 268.5% increase[36] - The company reported a net cash increase of $51,248,000 for the six months ended June 30, 2025, compared to an increase of $31,804,000 in the same period of 2024[37] - Cash paid for income taxes in the six months ended June 30, 2025, was $4,728,000, a decrease from $35,742,000 in the same period of 2024, representing an 86.8% decline[37] - The Company maintains cash reserves exceeding FDIC insured limits by approximately $356.0 million as of June 30, 2025, indicating strong liquidity management[53] Acquisitions and Market Position - The company completed the acquisition of certain businesses and assets of Prospect Medical Holdings, Inc., enhancing its market position[17] - Astrana Health, Inc. completed the acquisition of Prospect Health Plan, Inc. on July 1, 2025, expanding its network to over 11,000 providers across multiple states[42] - The total consideration for the acquisition of Advanced Health Management Systems, L.P. was $60.9 million, consisting of $63.9 million cash and $3.0 million due from the seller[71] - The total consideration for the acquisition of Collaborative Health Systems was $47.5 million, including $35.3 million cash and contingent consideration fair valued at $5.2 million[73] Revenue Sources - Medicare revenue increased significantly to $403.1 million for the three months ended June 30, 2025, up from $243.1 million in the same period of 2024, reflecting a growth of 65.9%[62] - The Company’s revenue from Medicaid increased to $192.6 million for the three months ended June 30, 2025, compared to $180.4 million in the same period of 2024, marking a growth of 6.7%[62] - Major payer contributions to net revenue included Payer A at 31.9% and Payer B at 17.6% for the three months ended June 30, 2025, showing a shift in revenue concentration[62] Expenses and Costs - Interest expense for the six months ended June 30, 2025, was $14,690,000, down from $16,172,000 in the same period of 2024, indicating a 9.1% reduction[28] - The company’s total other income (expense), net for the six months ended June 30, 2025, was $(14,493,000), compared to $(4,304,000) for the same period in 2024, reflecting a significant increase in expenses[28] - Share-based compensation for the six months ended June 30, 2025, was $19,519,000, compared to $13,138,000 in the same period of 2024, showing a 48.5% increase[36] - Total stock-based compensation expense for Q2 2025 was $11.7 million, up 58.5% from $7.4 million in Q2 2024[109] Operational Efficiency and Future Outlook - Management highlighted ongoing investments in new technologies and services to improve operational efficiency and patient care[18] - The company anticipates continued growth in capitation revenue driven by strategic initiatives and market expansion efforts[18] Goodwill and Intangible Assets - As of June 30, 2025, the carrying value of goodwill was $416.917 million, reflecting a decrease of $2.336 million during the six months[79] - The Company had no impairment of its goodwill or indefinite-lived intangible assets during the three and six months ended June 30, 2025 and 2024[77] Risk Management - The company has entered into interest rate collar agreements to manage interest rate risk, with a ceiling of 5.0% and a floor of 2.34%[160] - A hypothetical 1% change in interest rates could have increased interest expense by $1.2 million or decreased it by $0.8 million for the three months ended June 30, 2025[171]