Apollo Medical Holdings Q2 revenue up 29%

Apollo Medical Holdings, Inc., a leading physician-centric, technology-powered healthcare company focused on enabling providers in the successful delivery of value-based care, today announced its consolidated financial results for the second quarter ended June 30, 2023.

Brandon Sim, Co-Chief Executive Officer of ApolloMed, stated, “Our strong second quarter performance reflects the sustained momentum and scalability of the ApolloMed model, with revenue up 29%, net income attributable to ApolloMed up 10%, and adjusted EBITDA up 44% compared to a year ago. We remain focused on our three key operational goals of growing our membership, empowering our providers, and improving patient outcomes, and we continue to drive meaningful progress in all three areas in California, Nevada, Texas, and beyond.”

“We want to thank our providers and teammates for their hard work and dedication that resulted in our continued solid financial performance in the second quarter of 2023 and our confidence in reiterating our previously provided guidance for full-year 2023.”

Financial highlights for second quarter ended June 30, 2023:
All comparisons are to the quarter ended June 30, 2022 unless otherwise stated.

• Total revenue of $348.2 million, up 29% from $269.7 million
• Care Partners revenue of $325.2 million, up 32% from $247.3 million
• Net income attributable to ApolloMed of $13.2 million, up 10% from $12.0 million
• Adjusted EBITDA of $35.8 million, up 44% from $24.9 million

Financial highlights for six months ended June 30, 2023:
All comparisons are to the six months ended June 30, 2022 unless otherwise stated.

• Total revenue of $685.5 million, up 29% from $533.0 million
• Care Partners revenue of $639.9 million, up 31% from $488.6 million
• Net income attributable to ApolloMed of $26.3 million, up 2% from $25.7 million
• Adjusted EBITDA of $65.6 million, up 11% from $59.3 million

Recent operating highlights subsequent to the end of the second quarter:

• On July 12, 2023, the Company announced that it had entered into a definitive agreement to acquire assets of Texas Independent Providers, LLC (“TIP”), a value-based provider network with over 120 primary care providers that is expected to be an anchor for our high-quality Care Partners business in Houston. Through this transaction, ApolloMed intends to empower TIP’s provider network to deliver best-in-class clinical outcomes and to improve the healthcare experience for patients. This transaction is expected to close in the third quarter of 2023, and TIP’s providers are expected to be onboarded onto ApolloMed’s Care Enablement platform by the end of 2023.
• On July 27, 2023, the Company formed a long-term partnership with a primary care group operating in California with over 50 providers. The group is expected to be onboarded onto ApolloMed’s Care Enablement platform by September 1, 2023.
• On July 31, 2023, the Company announced a partnership with IntraCare, an operator of a value-based primary care provider network with over 425 providers located in Dallas, Fort Worth, El Paso, Austin, and Oklahoma City. Through this partnership, IntraCare’s providers are expected to join ApolloMed’s high-quality Care Partners business in these regions and onboarded onto ApolloMed’s Care Enablement platform by the end of 2023. In addition, ApolloMed will lend IntraCare a $25 million senior secured convertible promissory note maturing in 2028 to further IntraCare’s mission and growth.

Segment results for the second quarter ended June 30, 2023:

Guidance:
ApolloMed is reiterating the following guidance for total revenue, net income, EBITDA, Adjusted EBITDA, and EPS – diluted, based on the Company’s existing business, current view of existing market conditions and assumptions for the year ending December 31, 2023.

See “Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA” and “Use of Non-GAAP Financial Measures” below for additional information. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. See “Forward-Looking Statements” below for additional information.