Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Apollo Medical Holdings — Q3 2023 Earnings Presentation
27 slides from Astrana Health's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter 2023 Earnings Call Supplement
Powered by Technology. Built by Doctors. For Patients. Apollo Medical Holdings (NASDAQ: AMEH) Third Quarter 2023 Earnings Call Supplement November 7, 2023
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 , Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward - looking statements include any statements about t he Comp
Slide 3: ApolloMed At-A-Glance
ApolloMed At - A - Glance 3 ApolloMed is a technology powered, risk - bearing healthcare platform and healthcare provider supporting physicians and patients in delivering value - based care. The three pillars of our business are: 25% Revenue growth CAGR from 2019 - 2023E 30+ Markets $141M TTM Adj. E
Slide 4: ApolloMed can flexibly support patients and providers across segment offerings
ApolloMed can flexibly support patients and providers across segment offerings depending on their needs 4 Qtr ended 09/30/2023 $ in millions Total revenues, $M Income (loss) from operations, $M % Margin Total members in VBC 1 , K Primary Revenue Model Degree of Risk Care Partners High - performing n
Slide 5: Our comprehensive and flexible platform delivers care via owned and partnered entities
Our comprehensive and flexible platform allows us to deliver care via our owned and partnered entities 5 Specialists Ancillary ACO Network Independent Physician Associations and Networks ApolloMed Ecosystem • Patients receive care through our high - quality employed providers • Providers include pri
Slide 6: Historical Financial Profile
Historical Financial Profile 6 2021 Adjusted EBITDA benefitted from tailwinds of lower utilization during the COVID - 19 pandemic; Return to pre - pandemic utilization in 2022 and 2023 $561 $687 $774 $1,144 $1,340 - $1,390 Historical Revenue Growth ($ in millions) 2019 2020 2021 2022 2023E 25% CAGR
Slide 7: Revenue Breakdown
Revenue Breakdown 7 Note: For the nine months ended September 30, 2023 Revenue by Line of Business Business Mix By Payer Type 87% 5% 3% 4% 1% Capitation, net Risk Pool Settlements & Incentives Management Fee Income Fee-for-service, net Other Income 63% 20% 12% 5% Medicare Medicaid Commerical Other T
Slide 8: ApolloMed's multi-pronged growth strategy
Grow Within Existing Markets • Continue to build a strong core in the Southern California market with an emphasis on access to care and delivering culturally - aligned care to our communities ApolloMed’s multi - pronged growth strategy 8 Expand Into New Markets • Transform healthcare for local commu
Slide 9: Community Family Care Acquisition
Community Family Care Acquisition
Slide 10: Our M&A playbook enables us to effectively scale and enter new markets
Our M&A playbook enables us to effectively scale and enter into new markets 10 • 2023E Revenue: $190M • 2023E EBITDA: $25M • FV / 2023E EBITDA: 8.1x Financial Highlights Total Consideration • $20 2 M total consideration o $152M cash, $20M equity, $30M performance - based milestone payments • Two - p
Slide 11: Q3 2023 Update
Q3 2023 Update 6) apollomed
Slide 12: Q3 2023 performance highlights; Updated 2023E Guidance
Q3 2023 performance highlights; Updated 2023E Guidance 12 Total Revenue $1,144.2 $1,340.0 - $1,390.0 Net Income 1 $45.7 $59.5 - $71.5 EBITDA 1,2 $110.1 $114.5 - $129.5 Adjusted EBITDA 2 $140.0 $135.0 - $150.0 EPS - Diluted $0.99 $1.10 - $1.20 Q3 2023 financial results ($ in millions, except for per
Slide 13: Q3 2023 operational highlights
Q3 2023 operational highlights 13 • Acquisition of Community Family Care and integration into Care Partner segment by end of 2023 while continuing to leverage our Care Enablement platform • Advantage Health Network acquisition into Care Partners while continuing to be on our Care Enablement platform
Slide 14: Key takeaways
10% - 17% adj. EBITDA margins over the last 4 years 2 Bed days 54% below benchmark; ER visits 61% below benchmark 3 0.9M members in VBC arrangements across Medicare, Medicaid, and Commercial 4 27% 4 - year EBITDA CAGR with 15% EBITDA margins at scale Key takeaways Strongly positioned to create a fut
Slide 15: Summary of Selected Financial Results
Summary of Selected Financial Results 15 Three Months Ended September 30, Nine Months Ended September 30, $ in 000s except per share data 2023 2022 (restated) 2023 2022 (restated) Revenue Capitation, net $ 305,678 $ 227,571 $ 906,430 $ 677,253 Risk pool settlements and incentives 15,022 64,849 48,60
Slide 16: Segment Results
Segment Results 16 $ in 000s Care Partners Care Delivery Care Enablement Other Intersegment Elimination Corporate Costs Consolidated Total Total revenues $ 326,499 29,261 36,910 294 (44,791) - 348,173 % change vs prior year quarter 11% 18% 22% 10% Cost of services 279,769 25,647 13,658 76 (43,775) -
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights 17 $ in millions 9/30/2023 12/31/2022 $ Change Cash and cash equivalents and investments in marketable securities* $277.0 $293.6 ($16.6) Working capital $273.3 $279.5 ($6.2) Total stockholders’ equity $593.7 $542.6 $51.1 *Excluding restricted cash
Slide 18: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA 18 (1) Other, net for the three and nine months ended September 30, 2023 relates to transaction costs incurred for our investments and tax restructuring fees and non - cash changes related to change in the fair value of our financing obligat
Slide 19: Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA 19 Note: See “Use of Non - GAAP Financial Measures” slide for more information.
Slide 20: Updated 2023 Guidance
Updated 2023 Guidance www.apollomed.net 20 2023 Guidance (Original) 2023 Guidance (Updated) ($'s in K, except EPS) Low High Low High Total Revenue 1,300,000 1,500,000 1,340,000 1,390,000 Net Income 49,500 71,500 59,500 71,500 EBITDA 89,500 129,500 114,500 129,500 Adj. EBITDA 120,000 160,000 135,000
Slide 21: Summary of Selected Financial Results – Breaking Out Excluded Assets
21 Summary of Selected Financial Results – Breaking Out Excluded Assets $ in millions Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 ApolloMed Consolidated Excluded Assets ApolloMed Assets ApolloMed Consolidated Excluded Assets ApolloMed Assets Revenue $ $ Capitation, net
Slide 22: Balance sheet: assets, consolidated vs. excluded assets
$ in millions September 30, 2023 December 31, 2022 ApolloMed Consolidated Excluded Assets ApolloMed Assets ApolloMed Consolidated Excluded Assets ApolloMed Assets Current assets Cash and cash equivalents $ 273.9 11.6 262.3 $ 288.0 30.2 257.8 Investments in marketable securities 3.0 0.5 2.5 5.6 4.5 1
Slide 23: Balance sheet: liabilities, consolidated vs. excluded assets
$ in millions September 30, 2023 December 31, 2022 ApolloMed Consolidated Excluded Assets ApolloMed Assets ApolloMed Consolidated Excluded Assets ApolloMed Assets Current liabilities Fiduciary payable, accounts payable and accrued liabilities $ 59.4 2.3 57.1 $ 57.7 2.8 54.9 Medical liabilities 97.5
Slide 24: Cash flows from operating activities
$ in millions September 30, 2023 September 30, 2022 ApolloMed Consolidated Excluded Assets ApolloMed Assets ApolloMed Consolidated Excluded Assets ApolloMed Assets Cash flows from operating activities Net income $ 57.9 (5.0) 63 $ 46.6 (16.0) 62.6 Adjustments to reconcile net income to net cash provi
Slide 25: Cash flows from investing activities
$ in millions September 30,2023 September 30,2022 ApolloMed Consolidated Excluded Assets ApolloMed Assets ApolloMed Consolidated Excluded Assets ApolloMed Assets Cash flows from investing activities Payments for business and asset acquisitions, net of cash acquired $ (4.7) - (4.7) $ (5.6) (4.8) (0.8
Slide 26: Use of Non-GAAP Financial Measures
Use of Non - GAAP Financial Measures This presentation contains the non - GAAP financial measures EBITDA and Adjusted EBITDA, of which the most directly comparable fin ancial measure presented in accordance with U.S. generally accepted accounting principles (“GAAP”) is net income. These measures are
Slide 27: For inquiries, please contact ApolloMed Investor Relations
For inquiries, please contact: ApolloMed Investor Relations Asher Dewhurst (626) 943 - 6491 investors@apollomed.net
Apollo Medical Holdings — Q3 2023 Earnings Presentation on 6ix