ApolloMed's revenues grow 35% to $10.5 million in fiscal 2014

May 9 2014

Apollo Medical Holdings, Inc. (ApolloMed) (OTCQB: AMEH), an integrated, physician-centric healthcare delivery company, today announced financial results for the 12 months ended January 31, 2014.

"Our revenue growth reflects solid execution on our strategy to build a robust, integrated healthcare delivery system that provides 'Best in Class' care coordination for patients and physicians," stated Warren Hosseinion, M.D., Chief Executive Officer of Apollo Medical Holdings. "We are focusing on solutions to the challenges associated with patient care in both the inpatient and outpatient settings.

"This is an exciting time at ApolloMed as we expand our business," he said. "We are now generating revenues from our independent physician association (IPA), Maverick Medical Group, which we launched last July. We are growing our Accountable Care Organization, ApolloMed ACO, as additional hospitals and physician groups join. More recently, we launched ApolloMed Care Clinics to provide primary care medicine and post-discharge centers of excellence. Additionally, we are collaborating and partnering with prominent healthcare providers, including Boehringer Ingelheim Pharmaceuticals for chronic obstructive pulmonary disease (COPD), Rite Aid for community-based health treatment and Fresenius Medical Care for end stage renal disease.

"In the current year, we expect continued revenue growth through strategic acquisitions, partnerships and collaborations with IPAs and healthcare service providers, and by pursuing large hospital contracts, broadening our service offerings and replicating our infrastructure in other geographic regions," Dr. Hosseinion added. "With the completion of a recent $12 million financing, we are positioned to move forward with our growth initiatives."

Fiscal 2014 Financial Results (all comparisons with Fiscal 2013)

Revenues grew 35% to $10.5 million from $7.8 million, with the increase reflecting new hospital contracts, the acquisition of facilities and clinics, and an increase in Maverick Medical Group revenues.

Cost of services increased to $9.1 million compared with $6.3 million, with the increase primarily attributable to physician hires to support new contracts, the acquisition of medical clinics, and increases in Maverick Medical Group and ApolloMed Care Clinic services.

General and administrative expenses increased to $5.3 million, compared with $3.5 million. The increase in fiscal 2014 was due mainly to higher costs to support business growth, including administrative personnel and facilities costs; personnel and medical management fees for Maverick Medical Group; personnel, services and related expenses for the ACO initiative; and professional fees.

In fiscal 2013, the Company reported a loss of $5.9 million on the change in fair value of derivative liabilities. There was no reported change in fair value of derivative liabilities for fiscal 2014.

Net loss decreased to $4.6 million, or $0.12 per share, compared with a net loss of $8.9 million, or $0.27 per share.

ApolloMed reported $1.5 million in cash and cash equivalents, and $1.5 million in accounts receivable at January 31, 2014. In March 2014, the Company entered into a debt and equity agreement with NNA of Nevada, Inc., an affiliate of Fresenius Medical Care North America, to provide $12 million, which included $2 million in investments in the Company's common stock, $8 million in term and revolving loans, and $2 million in a convertible note commitment.