Apollo Medical(AMEH) - 2024 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2024 was $404.4 million, an increase of $67.1 million or 20% compared to $337.2 million in Q1 2023[198] - Capitation revenue increased by $65.7 million to $365.9 million, primarily due to recent acquisitions[194] - Operating expenses totaled $374.2 million, up $59.3 million or 19% from $314.9 million in Q1 2023[195] - Net income attributable to Astrana Health, Inc. was $14.8 million, a 13% increase from $13.1 million in Q1 2023[210] - Care Partners segment revenue grew by 26% to $397.1 million, reflecting strong performance in the company's core operations[212] - Care Partners segment revenue increased to $397.1 million for Q1 2024, up 26% from $314.7 million in Q1 2023, with operating income rising 94% to $43.2 million[214] - Care Delivery segment revenue grew to $30.7 million in Q1 2024, a 21% increase from $25.4 million in Q1 2023, with operating loss reduced by 75% to $0.2 million[215] - Care Enablement segment revenue reached $33.3 million in Q1 2024, up from $30.6 million in Q1 2023, but operating income decreased by 39% to $3.5 million[216] Expenses and Income - General and administrative expenses rose by $17.5 million or 83% to $38.7 million, driven by operational growth[200] - Interest expense increased to $7.6 million, up 132% from $3.3 million in Q1 2023, due to higher borrowings[203] Cash Flow and Investments - Cash, cash equivalents, and marketable securities totaled $337.3 million as of March 31, 2024, an increase from $296.3 million at the end of 2023[224] - Net cash provided by operating activities was $5.977 million in Q1 2024, down 23% from $7.720 million in Q1 2023[228] - Cash used in investing activities surged to $71.039 million in Q1 2024, compared to $14.035 million in Q1 2023, primarily due to business acquisitions[230] - Cash provided by financing activities was $106.351 million in Q1 2024, a significant increase from a cash outflow of $7.099 million in Q1 2023[231] Debt and Financing - Total debt as of March 31, 2024, was $393.259 million, with long-term debt amounting to $368.448 million after accounting for current portions and unamortized financing costs[234] - The Amended Credit Agreement provides a five-year revolving credit facility of $400 million, increasing the total facility to $700 million after a new term loan of up to $300 million was added[236] - As of March 31, 2024, borrowings under the Term Loan were $296.5 million, with an interest rate ranging from 1.50% to 2.75% based on the Company's Consolidated Total Net Leverage Ratio[242] - The Company borrowed $94.8 million under the Revolver Loan, with interest rates ranging from 1.25% to 2.50% based on the same leverage ratio[242] - A hypothetical 1% change in interest rates would have impacted the Company's interest expense by $3.9 million for the three months ended March 31, 2024[242] - The Company has a promissory note payable of $2 million, maturing on May 9, 2024[237] Projections and Guidance - The company projects total revenue for 2024 to be between $1.65 billion and $1.85 billion, with net income expected between $61 million and $73 million[218] - Adjusted EBITDA for 2024 is guided to be between $165 million and $185 million, with diluted EPS projected between $1.28 and $1.52[218] Acquisitions - The acquisition of Community Family Care (CFC) was completed on March 31, 2024, marking the largest acquisition in the company's history[187] Patient Management - The company managed approximately 1.0 million patients as of March 31, 2024, down from 1.3 million in the same period last year[197] Accounting Policies - Critical accounting policies and estimates are integral to understanding the financial statements, reflecting significant judgments and uncertainties[239] - The Company’s management is required to make judgments and estimates that could lead to materially different results under varying assumptions[239] Off-Balance Sheet Arrangements - As of March 31, 2024, there were no off-balance sheet arrangements that could materially affect the Company's financial condition[240] Risk Management - The Company has entered into a collar agreement for its Revolver Loan to convert floating-rate debt to a fixed-rate basis, aiming to reduce variability in cash flows[242]