Apollo Medical(US:AMEH)2021-11-04 16:00Financial Performance - Total revenue for the three months ended September 30, 2021, was $227.1 million, a 26% increase from $180.1 million in the same period of 2020[270]. - Capitation revenue for the three months ended September 30, 2021, was $149.1 million, up 10% from $135.0 million in 2020[271]. - Risk pool settlements and incentives increased by 94%, reaching $59.9 million for the three months ended September 30, 2021, compared to $30.9 million in 2020[271]. - Net income attributable to Apollo Medical Holdings, Inc. for the three months ended September 30, 2021, was $34.3 million, a 105% increase from $16.7 million in 2020[273]. - For the nine months ended September 30, 2021, total revenue was $578.8 million, a 13% increase from $510.4 million in 2020[272]. - Revenue for the three months ended September 30, 2021, was $227.1 million, an increase of $47.0 million or 26% compared to the same period in 2020[275]. - Total revenue for the nine months ended September 30, 2021, was $578.8 million, an increase of $68.4 million or 13% compared to the same period in 2020[277]. - Net income for the period increased to $83,500,000, up from $66,000,000 in the previous period, representing a growth of 26.5%[296]. - Adjusted EBITDA rose to $170,500,000, compared to $130,500,000 in the prior period, reflecting a significant increase of 30.7%[296]. Expenses - Operating expenses for the three months ended September 30, 2021, totaled $174.0 million, a 22% increase from $142.8 million in 2020[271]. - General and administrative expenses for the three months ended September 30, 2021, were $21.8 million, a 34% increase from $16.3 million in 2020[271]. - General and administrative expenses for the three months ended September 30, 2021, were $21.8 million, an increase of $5.5 million or 34% compared to the same period in 2020[280]. - Interest expense for the three months ended September 30, 2021, decreased to $1.0 million from $2.5 million in the same period in 2020, a reduction of $1.5 million[285]. Cash Flow and Liquidity - Cash, cash equivalents, and investments in marketable securities totaled $333.3 million as of September 30, 2021, an increase of 27.6% from $261.2 million at December 31, 2020[299]. - Cash provided by operating activities for the nine months ended September 30, 2021, was $82.5 million, a substantial increase from $48.8 million in the same period of 2020[301]. - Cash used in investing activities was $22.5 million, primarily due to property and equipment purchases of $16.4 million and business acquisitions of $2.6 million[302]. - Cash used in financing activities totaled $49.2 million, mainly for long-term debt repayment of $238.3 million and dividend payments of $31.1 million[303]. - The Company has sufficient liquidity to fund operations for at least the next 12 months, supported by a working capital increase of 39% to $310.5 million[299]. Debt and Financing - The Company’s total debt as of September 30, 2021, was $187,524,000, with long-term debt amounting to $182,813,000[308]. - The average effective interest rate on total debt decreased to 2.15% for the nine months ended September 30, 2021, down from 3.79% in the same period of 2020[315]. - The Company reported a consolidated leverage ratio of 1.06, well below the required maximum of 3.75 to 1.00[313]. - As of September 30, 2021, 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 2.5%[326]. - The company entered into a construction loan agreement allowing it to borrow up to $10.7 million, with Tag 8 having $0.1 million in outstanding borrowings for this loan[317][326]. - The company has $7.4 million in outstanding real estate loans related to ZLL, MPP, and AMG Properties, with interest rates subject to changes based on the Wall Street Journal Prime Rate[326]. - The company has intercompany loan agreements totaling $23.25 million, with various entities having different maximum balances and interest rates of 10%[320]. - The maximum balance during the period for AMH under the intercompany facility was $6.588 million, while MMG had a maximum balance of $3.663 million[320]. Investments and Unrealized Losses - The company reported an unrealized loss on investments of $60.9 million for the three months ended September 30, 2021[271]. - The company reported an unrealized loss of $60.9 million for the three months ended September 30, 2021, driven by fluctuations in stock prices of a payor partner[287]. Strategic Agreements and Guidance - The company entered into an agreement to purchase the remaining 60% equity interests in DMG within three years, currently owning 40%[266]. - The company raised its full-year 2021 guidance due to continued organic growth and increased risk pool settlements, with revised net income guidance ranging from $48.0 million to $58.0 million[293]. - EBITDA for the full year 2021 is guided to be between $100.0 million and $119.0 million[294]. Operational Metrics - The company managed approximately 1.1 million patients as of September 30, 2021, consistent with the same period in 2020[274]. Economic Factors - Inflation has had a de minimis effect on the company's operations over the past two fiscal years[325]. Accounting Policies - The company’s critical accounting policies involve significant judgments and estimates that could lead to materially different results under varying assumptions[321].