AMEH - Earnings call transcript Q2 2022

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Operator

Good day. And welcome to your Apollo Medical Holdings’ Second Quarter 2022 Financial Results Call. [Operator Instructions] At this time, I'll turn the conference over to Carolyne Sohn of The Equity Group. The floor is yours, please go ahead.

Carolyne Sohn

Thank you, operator, and hello, everyone. us. joining for you Thank www.apollomed.net. The press the available Inc.'s for website Medical the announcing quarter ended Apollo at company's second the is section Holdings, June Investors results of release XX, at XXXX, has To provide some supplemental background on website. available its made the on its deck a results, additional company also of of this will available ApolloMed's be replay A broadcast website at call. made this after conclusion the

focus, plan, the certain that respond started, the information coronavirus Private and this things, XXXX, value, growth, operations the and of other acquisition statements would provision remind or statements contains regarding conference discussed such sustainable as the XXXX can well statements outlook and get like the ability variants harbor I company's and These identified we XXXX. meaning everyone Before guidance to Securities COVID-XX impact ability will the results. by as on accompanying merger call any changing growth continued herein and safe as of among novel future, Act of terms include, forward-looking within believe, to anticipate, forward-looking be Litigation the business, other Reform company's long-term the of ending XX, the deliver financial operational plans to and strategic strategy, integration to efforts pandemic December year for environment, expect,

except about those risks associated prove are results to in does we market no review filings future from is Commission, not events, be reflected actual in with that included expectations are Although statements assume Securities conditions to you dramatically projected. subject changes of any uncertainties otherwise, cause result obligation expectations risks company investment those required forward-looking Information believes to its in new can forward-looking as before those statements the statements the will be by differ to investing correct. as law. that encourage the update of decision. Exchange with company reasonable as or that The a information, assurance an the to in any ApolloMed today, There the its and and making could which

language, information. to refer of further also disclaimer you for the the to X call conference I presentation Regarding Slide like would

Sim. you with ended company those Brandon Slide and today's Interim second Officer, there Chief call, I'll X. highlights second turn quarter opening is half of For company's Chan Brandon Basho, discuss before XX, XXXX operational Brandon. for latest go update review the XXXX. along will ApolloMed's June accompanying and long-term overview conclude and remarks the following an follow Sim the the Officer, With supplement, Executive questions. on the with to Brandon floor of Co-Executive first the the Officer, and months the ApolloMed's the will company's On Financial six developments. for of on Co-Chief results strategy will first over growth ahead, an quarter the outlook call that, with Please a

Brandon Sim

organization, the increase XXXX, pleased Thank to we continue our levels. even utilization see quarter another We to quarter as second to in were of profitability you, Carolyne. of across solid pre-pandemic deliver

for total allowing As a fee-for-service Medicare membership the for a capitated our growth organic ended XX, and in grew result mix population, increase IPAs, months reporting within June revenue in revenue, model the $XXX.X value-based of a three membership XX% core strong XXXX. care to a more participation year-over-year achieve XX% favorable us million

increased operating revenues in expenses in in As QX QX. with line

our partnered levels. provider XXX or side, the of year, on risk increase still previously our We for are First been consequence of our quarter, we to medical relative see by in this an MLR our for increased guidance. X% cost disclosed pre-COVID MLR basis which although range as already points entities the of loss expected account has bearing taken to utilization medical in within services ratio to last returning X% into

also to geographies personnel expense compensation. and and in as This we've not of increase additional XX X.X% business, decreased fuel increase but related total new revenue, also G&A new the lines X.X% operational staff Despite hiring QX new into year made, key to to in to demonstrates to expansion in of points regions, to as the incur growth of higher revenue and well both our continue full stock rapidly. to into an last provides ApolloMed We net quarter. even as in as support trends based growth, prior a we investments XX% reiterating actually we this membership Adjusted from of us operational G&A expenses, our of QX only by growth a percentage and year. net basis and $XX.X the increased continued EBITDA adjusted $XX.X EPS million our people and the as period. the utilization on reporting attributable trends investment $XX.X current EBITDA. or infrastructure, within $X.XX million for from business year of as we remain revenues, in operating XXXX income for Based was platform diluted Despite up income year our well are pleased profitable be grow leverage million guidance ongoing EBITDA to businesses, our

between explore our partnerships half to that disclosed, previously billion. our series second And vision continue groups expand In presence in a between through to anticipate of we $XXX EBITDA new XXXX, provider empowering least to existing year-over-year of million on million. $X.XXX the into $XXX California with of markets, XX% the billion at to As top acquisitions of independent regions growth adjusted share to as working opportunities move key and physicians. we line well $X.XXX as

the robust. results. have of development, pipeline our With review stack. to addition the incredibly I'll Health efforts our to over to tech remains from and And it financial M&A benefit Chan continued Orma business Our turn that, to

Chan Basho

Brandon. you, Thank

a model, primarily quarter, quarter. as increased We in $XXX.X by period, ended $X.X total along results revenue with IPAs contributed participation increased which $X.X the from to to center, membership well million DMG. of XX, Fee-for-service were capitation in from to in Medicare during visits COVID-XX, fee-for-service and fee-for-service increased as second quarter a Sun of prior prior year June in our increased consolidation to was growth year for driven and this Sun XX% to $XXX.X $XX.X closed Labs from the organic XXXX. million consolidation the partially due resulting Capitation the surgery of accounting in revenue XXX% DMG and million prior deliver XX% period. the total million revenue the revenue the for revenue of of value-based This continue our from XXXX, XX% core revenue Labs million strong in quarter the $XXX.X reporting increased increase million year during

members under remained membership $X.X consolidated quarter capitated our XX, at lives $XXX.X arrangements Total through second Our or expenses million risk-bearing were ended million approximately June XXX,XXX at operating increased to managed of second period. services the approximately IPA. $XXX.X half our XX% XXXX, and prior claims, our of in the year million of commensurate expenses to increase was cost of higher increased quarter the revenue. from other medical a in primarily XXXX This result health to capitation, in services due end

period. XXXX, reported the utilization to to million growth. $XX.X to benefit $XX.X year ApolloMed salaries, increased increased and based increase to and personnel $X.XX in general the of hiring to compensation can period. Adjusted quarter administrative million, XXXX. period. million the of year basis levels to and to wages, $X.XX XX% pre-COVID second place also operating of compared We EBITDA emphasize personnel figures. prior quarter year line compared the in expenses share decrease to services related related company's $XX our of to development. higher was million prior of additional bottom be to which The the million staff adjusted Net in in a hiring compared due million key We operational $XX.X related support the of compares to Earnings to was the cost expenses and a expenses support $XX.X the for the return in share of We attributable greater EBITDA $XX.X were and income of additional EBITDA incurred attributed on second on growth an diluted in prior

the APC shareholders. these higher ended first dust affiliate from go XXXX, of to result passive revenue. the the result of $X.XX in a of marketable for XXXX year health recently $XXX.X assets medical cost period. over attributable primarily $X.X to services in Total investment result compared of income our compared the and I'll three million to year other highlights a in loss as These backs for as a Total XX, out XXXX. as for compares described Diluted are $XX.X services IPAs, XX, compensation, non-cash months $XXX ended income first six the the preferred OpEx of increased six and impact in one conversion June and partner's prior benefits and million, value $XXX.X in method are payer other to the they ended prior in decrease for from the of increase shares the in period. to past, out year $X.XX to half pair the million claims, $XX.X acquired equity payer was the financial million in which in shares million of excluded ApolloMed increase partner's XX% months impact our figure securities its as $XXX.X a to with As income year, to and unrealized to bucket in in a solely gains Net partner QX prior revenue June investment. EPS other few $XX.X investments, prior we've capitation, the of EBITDA from up quickly line related period. XXXX. of shares excluded a the adjusted related million months the back numbers XX, million for in assets, that unrealized stock stock-based of in million The fair expenses in the a was six a come XXXX June held was

to $XXX.X at over to equivalents and well the compared the sheet, We cash remain capitalized on end of growth XXXX. million cash in with positioned second balance $XXX.X initiatives. ended Turning and our the well million to execute we quarter

I’d $XXX.X was XXXX XXXX. equity remainder increased million. from over million second back working at to of now $XXX.X of Brandon of our XX, million December was the June like the Our $XXX.X outlook for at Total the XXXX. it at discussion strategy and compared $XXX.X of at XXXX. to $XXX.X million end million turn for growth total And to a XX, capital Brandon? a debt end quarter the stockholders'

Brandon Sim

Thanks, Chan.

be expect We eventful. half of XXXX second very to the

ability We finding physician unique to our better to and enablement and accountable we're their nationwide them drives observe clinical strong present more to terms outcomes. continue patients organizations and that the their around model And provider healthcare positive platform possibilities and serve about groups of are care. tailwinds value-based in excited improving technology

As current projections relates impact it in include Slide disclosed on that our net assets, we for our EBITDA mind also his Please we've year to the excluded noted potential and which earlier Chan full guidance also are listed business, keep which earlier. comments income the of XXXX, APC noted supplement. our guidance from that XX previously reiterating I in

to we this place adjusted greater the attributable other major not acquisitions potential of These and ApolloMed shareholders metrics. reason, in EBITDA on the XXXX. we transactions For emphasis business metrics may consider do complete any net guidance or remainder income

core open energized mission and our higher outcomes We the believe excel our arise, of local can in to management ApolloMed on excited across it appropriate. to in successfully introducing make providers care quality various In to and our communities. are their let's about the across care make excited we we incredibly country, regions model Q&A. the our impact by a with by providers markets material developments provider nation. operating has history we And profitably continue replicate remain to like-minded to enable the can any operator, up positive guidance and and and communities our to as initiatives. in partnering value-based for be groups and success growth that we long deliver sure we closing, reevaluate other progress update and physicians. in As will With

Operator

The turn be for no questions questions. at is Thank over like call closing floor appear you. to now [Operator back Instructions] to this open management time. There I the to now remarks. for would

Brandon Sim

everyone. Angeles earnings to area. Los look happen to quarter Thank a for concludes you great by be And two questions our We you in our XXXX call. That dropping forward offices have if the Thank you. day.

Operator

teleconference. conclude for We you again thank This does your today's participation.

disconnect may and at You time day. lines great have your this a

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