Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Apollo Medical Holdings — Investor Presentation (March 2021)
43 slides from Astrana Health's investor presentation, Mar 11, 2021
Slide 1: A Leader in Integrated Healthcare Management and Delivery Powered by Technology
A Leader in Integrated Healthcare Management and Delivery Powered by Technology. Built by Doctors. For Patients. March 2021 NASDAQ: AMEH
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 the Compa
Slide 3: Company Overview
Company Overview Apollo Medical Holdings, Inc. (“ApolloMed”) is a leading physician - centric, technology - powered, risk - bearing healthcare management company. Leveraging its proprietary population health management and healthcare delivery platform, ApolloMed operates an integrated, value - based
Slide 4: Investment Highlights
Investment Highlights Multifaceted growth strategy driven by national shift to value - based care , creating large market opportunity Margin expansion through proprietary technologies 4 www.apollomed.net Value - based care model supported by proprietary integrated health management & healthcare deli
Slide 5: Where ApolloMed Fits in the U.S. Healthcare Ecosystem
Where ApolloMed Fits in the U.S. Healthcare Ecosystem 5 Through its MSO, consolidated IPAs, and ACO, ApolloMed is one of the nation’s largest population health management companies and one of few that provides the full spectrum of care . MEMBERS Health Plans State & Federal Government Pay taxes Pay
Slide 6: Our Service Offerings & Revenue Model
Across all aspects of care delivery, our offerings provide a steady revenue stream. Our Service Offerings & Revenue Model 6 Consolidated Independent Practice Associations (IPAs) Next Generation ACO / Risk Model Management Services Organization (MSO) Commercial EPO Commercial ACO • Network of primary
Slide 7: Organizational Overview
Together with our affiliated physician groups and consolidated entities, ApolloMed manages the medical lives of more than 1.1 million members. Consolidated IPAs ~ 558 ,000 member lives Publicly Traded Parent Company M anagement S ervices O rganization (MSO) Leading California IPAs * Managed IPAs ~ 4
Slide 8: Technology-powered platform for value-based care versus fee-for-service
We created a technology - powered platform to deliver value - based care through our horizontally and vertically integrated physician - centric model. Compared to a traditional fee - for - service model… 8 Traditional Fee - for - Service Model ApolloMed’s Value - Based Care Model Siloed care with li
Slide 9: Our Value-Based Care Model Benefits all Stakeholders
Our Value - Based Care Model Benefits all Stakeholders 9 • Improved health outcomes • Improved patient experience • Reduced out - of - pocket expenses for patients • Reduced burn - out with flexible schedules and greater work - life balance • Relief of administrative burden • Customized technology -
Slide 10: Next-generation integrated healthcare platform centered around the patient
Our next - generation integrated healthcare platform is centered around the patient . 10 Hospital Healthcare Cities Micro - Hospitals Skilled Nursing Facilities Sub - Acute Care: Assisted Living, Independent Living Senior Wellness Centers Palliative Care Home Health PCPs Specialists Hospitalists Anc
Slide 11: Select ApolloMed Points of Care
Select ApolloMed Points of Care 11 www.apollomed.net
Slide 12: Why Physicians Partner with ApolloMed
Business Transparency ApolloMed empowers its physicians to cost - effectively deliver the highest quality of care to its patients by aligning financial incentives around proactive and preventative healthcare. Why Physicians Partner with ApolloMed 12 ▪ Combination of clinical, administrative, and tec
Slide 13: Long-Term Relationships with a Diversified Payor Mix
Long - Term Relationships with a Diversified Payor Mix Average tenure with key payors 13 15 years Contribution from each top payor <15% total net revenue www.apollomed.net
Slide 14: Proprietary Technology Platform
Proprietary Technology Platform 14 ApolloMed combines technology and data analytics, powered by machine learning and artificial intelligence, with clinical expertise. Technology Expertise + = Operational Excellence Clinical Knowledge Artificial Intelligence Machine Learning Natural Language Processi
Slide 15: Proprietary Technology Platform: Three Key Pain Points
Proprietary Technology Platform 15 Our solutions address three key pain points in managed healthcare delivery: Automated Medical Claims Adjudication Utilization Management Automation Population Health Platform • Have processed >2.5 million claims with no human intervention across 14 IPAs and all lin
Slide 16: The Market Opportunity
The Market Opportunity ApolloMed is at the intersection of provider services and healthcare technology. 16 www.apollomed.net
Slide 17: A Significant Market Opportunity in Provider Services
A Significant Market Opportunity in Provider Services 17 Provider services p opulation includes: (1) Source: CMS.gov – NHE Fact Sheet, physician and clinical services expenditures (2) Source: CHCF.org – California Personal Health Core Spending, 2017 – Quick Reference Guide (3) Source: Cattaneo & Str
Slide 18: Industry Peers
Ticker NASDAQ: AMEH SPAC merger expected with Jaws Acquisition Corp. (NYSE: JWS) NASDAQ: CLOV NYSE: OSH NASDAQ: ONEM Business Leading physician - centric, technology - powered, risk - bearing healthcare management company Leading value - based care delivery platform for seniors Next - generation Med
Slide 19: ApolloMed is Executing a Clear Growth Strategy
ApolloMed is Executing a Clear Growth Strategy 19 www.apollomed.net Consolidate additional IPAs and enter new markets and geographies Build on ACO success and participate in additional Innovation Models Continue to invest in technology, preventive care, and automation to further drive clinical care
Slide 20: Integration of Acquired IPAs
Integration of Acquired IPAs 20 Allied Pacific IPA acquired for approx. $45M in May 2019 Allied Pacific IPA acquired remaining 75% stake not already held for approx. $7.25M in August 2019 ApolloMed continues to implement processes to fully integrate the IPAs acquired in 2019 into its framework — exp
Slide 21: Expanding Nationwide
Expanding Nationwide 21 ApolloMed is well positioned to increase our existing presence in California while exploring opportunities to expand our geographic footprint beyond the state. Counties Served We currently serve members in 15 states / territories… Current 2021 Goal ~1.1M Managed lives +500k >
Slide 22: Strategic Investment in CAIPA MSO – New York
• CAIPA is a leading independent practice association serving the greater New York City area • Provides management, consulting, administrative, and other support services to professional healthcare service providers, including to Chinese American IPA d/b/a Coalition of Asian - American IPA (“CAIPA”)
Slide 23: Stellar NGACO Performance in 2019
19.8 13.3 Stellar NGACO Performance in 2019 www.apollomed.net 23 Net shared savings from CMS 37.3 Gross savings generated 19.8 17.5 Cap/risk arrangement 6.5 Provider bonus 13.3 Net shared savings settlement realized in Q3 2020 For the 2019 performance year, APA ACO was among the top 4 NGACOs in the
Slide 24: Our Response to COVID-19
ApolloMed has implemented measures to support our members, physicians and employees during the ongoing COVID - 19 pandemic. Our Response to COVID - 19 24 Members Independent Providers Employees • Drive - t hru t esting s tations • Increased testing capabilities • Immediate access • Telehealth option
Slide 25: Investment Summary
Investment Summary 25 Large and rapidly growing market opportunity focused on value - based care A value - based care model supported by proprietary care management technologies A compelling financial model with predictable unit economics and potential upside from risk - sharing Multifaceted growth
Slide 26: Financial Overview: A History of Profitable Growth
Financial Overview A History of Profitable Growth 26 www.apollomed.net
Slide 27: Historical Financial Profile
4,000 7,000 2017 2020 384,000 780,000 1,130,000 2014 2017 2020 CAGR: 27% $520 $561 $687 $700 2018 2019 2020 2021* 27 Historical Revenue Growth Consistent Membership Growth Contracted Physicians Growth ($ in millions) (# of physicians) CAGR: 6% * midpoint of 2021 guidance range $10.8 $14.1 $37.9 $40.
Slide 28: Summary of Financial Results
Summary of Financial Results www.apollomed.net 28 $ in 000s except per share data Q4 2020 Q4 2019 YE 2020 YE 2019 Revenue Capitation, net $ 140,923 $ 148,620 $ 557,326 $ 454,168 Risk pool settlements and incentives 23,212 18,458 77,367 51,098 Management fee income 8,638 6,801 34,850 34,668 Fee - for
Slide 29: 2021 Guidance
2021 Guidance $ in millions YE 2020 Results 2021 Guidance Range Total Revenue $687.2 $690.0 - $710.0 Net Income $122.3 (1) $50.0 - $60.0 Net Income Attributable to ApolloMed $37.9 $35.0 - $45.0 EBITDA (2) $203.5 (1) $95.0 - $105.0 Adjusted EBITDA (2) $126.5 $115.0 - $125.0 29 (1) 2020 net income and
Slide 30: Revenue Breakdown
Capitation - Capitated fees for medical services via direct arrangements with managed care providers – Typically pre - paid monthly based on number of enrollees Risk Pool Settlements & Incentives - Full and shared risk capitation arrangements with certain health plans , local hospitals and Next Gene
Slide 31: Balance Sheet Highlights
Balance Sheet Highlights 31 $ in millions 12/31/2020 12/31/2019 $ Change % Change Cash and cash equivalents and investments in marketable securities $261.2 $219.7 $41.4 19% Working capital $223.6 $223.6 $0.1 0% Total stockholders’ equity $330.9 $192.3 $138.6 72% www.apollomed.net
Slide 32: Current Capitalization
Current Capitalization 32 Note: Balance sheet data as of 12 /3 1 /2020. (1) Excludes restricted cash of $61mm. www.apollomed.net (figures in millions, except per share price) Recent Share Price (as of 3/5/2021) $ 24.44 Common Shares Outstanding 54.4 Market Capitalization $ 1,329.5 Plus: Total Bank D
Slide 33: Outstanding Shares Explained
Outstanding Shares Explained www.apollomed.net 33 Allied Pacific IPA, an affiliated IPA, holds approx. 17.5 million ApolloMed shares, approx. 15.0 million ($300 million) of which, it received as consideration from ApolloMed as part of the 2019 transaction to more fully integrate Allied Pacific IPA’s
Slide 34: Outstanding Shares Explained
(1) The number of weighted average shares used to calculate EPS for the year ended December 31, 2020, was approximately 37.4 mil lion. Outstanding Shares Explained 34 In December 2020, approx. 5 million of Allied Pacific IPA’s shares of ApolloMed common stock were distributed through an in - kind di
Slide 35: Appendix
Appendix 35 www.apollomed.net
Slide 36: Management – A Team of Industry Veterans
Management – A Team of Industry Veterans 36 Executive Chairman & Co - CEO Co - CEO & President Chief Operating Officer & Chief Technology Officer Chief Financial Officer Chief Medical Officer Chief Administrative Officer • Joined AMEH in 2006 • Currently serves as Chairman of Allied Pacific IPA, Cha
Slide 37: U.S. Value-Based Landscape – Providers
(Intermountain Healthcare) U.S. Value - Based Landscape – Providers 37 The value - based care landscape continues to broaden as more companies enter the market to take capitation risk directly or assist physicians in the transition to risk - based arrangements. Payor Owned Independent Other • Large
Slide 38: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Reconciliation of Net Income to EBITDA and Adjusted EBITDA 38 Q4 2020 Q4 2019 YE 2020 YE 2019 Net income $ 12.9 $ (1.3) $ 122.3 $ 17.7 Depreciation and amortization 4.3 4.5 18.4 18.3 Provision for income taxes 11.9 1.7 56.1 8.1 Interest expense 1.5 3.4 9.5 4.7 Interest income (0.2) (0.7) (2.8) (2.0)
Slide 39: TTM EBITDA Reconciliation
TTM EBITDA Reconciliation 39 Q1 2020 Q2 2020 Q3 2020 Q4 2020 YE 2020 Net income $ 3.0 $ 81.0 $ 25.4 $ 12.9 $ 122.3 Depreciation and amortization 4.7 4.6 4.7 4.3 18.4 Provision for income taxes 1.6 31.9 10.8 11.9 56.1 Interest expense 2.9 2.7 2.5 1.5 9.5 Interest income (1.0) (0.9) (0.8) (0.2) (2.8)
Slide 40: Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA 40 Low High Net income $ 50.0 $ 60.0 Depreciation and amortization 17.0 17.5 Provision for income taxes 23.0 24.0 Interest expense 8.0 8.5 Interest income (3.0) (5.0) EBITDA $ 95.0 $ 105.0 Income from equity method investments $ (0.
Slide 41: Use of Non-GAAP Financial Measures
Use of Non - GAAP Financial Measures This presentation contains the non - GAAP financial measures Earnings Before Interest, Taxes, Depreciation and Amortization (“EBIT DA”) and Adjusted EBITDA, of which the most directly comparable financial measure presented in accordance with GAAP is net (loss) in
Slide 42: Key Acronyms
Key Acronyms 42 ◦ ACO: Accountable Care Organization ◦ AIPBP: All - Inclusive Population - Based Payments ◦ CMMI: Center for Medicare and Medicaid Innovation ◦ CMS: Centers for Medicare & Medicaid Services ◦ DME: Durable Medical Equipment ◦ Health Plan / Payors: Health Insurance Companies ◦ HMO: Hea
Slide 43: For inquiries, please contact ApolloMed Investor Relations
For inquiries, please contact: ApolloMed Investor Relations Carolyne Sohn, The Equity Group (626) 943 - 6491 (415) 568 - 2255 investors@apollomed.net csohn@equityny.com NASDAQ: AMEH www.apollomed.net
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