2018 Form 10-K Financial Statement

#000114420419014671 Filed on March 18, 2019

View on sec.gov

Income Statement

Concept 2018 2017 Q4 2017
Revenue $519.9M $259.5M $356.4M
YoY Change 45.9% 1555.52% 709.0%
Cost Of Revenue $361.1M $180.4M $273.5M
YoY Change 32.06% 1318.7% 7.33%
Gross Profit $158.8M $79.10M $82.90M
YoY Change 91.52% 2573.19% -139.34%
Gross Profit Margin 30.54% 30.48% 23.26%
Selling, General & Admin $47.20M $10.20M $26.20M
YoY Change 80.15% 126.67% 40.86%
% of Gross Profit 29.73% 12.9% 31.6%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $19.30M $18.77M $19.08M
YoY Change 1.19% 12502.9% 5.3%
% of Gross Profit 12.16% 23.73% 23.01%
Operating Expenses $431.5M $30.60M $321.2M
YoY Change 34.33% 551.06% 9.16%
Operating Profit $88.43M $48.50M $35.15M
YoY Change 151.61% -2885.77% 200.69%
Interest Expense $561.0K $13.90M $79.69K
YoY Change 603.99% 138997.37% 29.39%
% of Operating Profit 0.63% 28.66% 0.23%
Other Income/Expense, Net -$5.805M $100.0K $14.57M
YoY Change -139.86% 103.78%
Pretax Income $82.63M $62.60M $49.71M
YoY Change 66.21% -4619.99% 163.91%
Income Tax $22.36M $13.60M $3.887M
% Of Pretax Income 27.06% 21.73% 7.82%
Net Earnings $10.84M $37.90M $25.80M
YoY Change -58.01% -2287.33% 125.27%
Net Earnings / Revenue 2.08% 14.61% 7.24%
Basic Earnings Per Share $0.33 $1.01
Diluted Earnings Per Share $0.29 $389.9K $0.90
COMMON SHARES
Basic Shares Outstanding 32.89M shares 25.53M shares
Diluted Shares Outstanding 37.91M shares 28.66M shares

Balance Sheet

Concept 2018 2017 Q4 2017
SHORT-TERM ASSETS
Cash & Short-Term Investments $108.0M $100.9M $100.9M
YoY Change 7.04% 2422.5% 1059.77%
Cash & Equivalents $106.9M $99.75M $99.70M
Short-Term Investments $1.100M $1.100M $1.100M
Other Short-Term Assets $8.400M $21.10M $21.10M
YoY Change -60.19% 4120.0% 6933.33%
Inventory
Prepaid Expenses
Receivables $56.50M $7.603M $20.10M
Other Receivables $0.00 $2.000M $2.000M
Total Short-Term Assets $172.9M $144.2M $144.2M
YoY Change 19.9% 77.63% 867.79%
LONG-TERM ASSETS
Property, Plant & Equipment $12.70M $13.81M $13.80M
YoY Change -7.97% 33.17% 1050.0%
Goodwill $86.20M
YoY Change -16.64%
Intangibles $103.5M
YoY Change -4.22%
Long-Term Investments $35.30M $21.90M $21.90M
YoY Change 61.19% -9.7%
Other Assets $2.000M $1.632M $2.400M
YoY Change -16.67% 2.15% 140.0%
Total Long-Term Assets $340.1M $346.5M $346.4M
YoY Change -1.82% 28.88% 5977.19%
TOTAL ASSETS
Total Short-Term Assets $172.9M $144.2M $144.2M
Total Long-Term Assets $340.1M $346.5M $346.4M
Total Assets $513.0M $490.6M $490.6M
YoY Change 4.57% 40.18% 2281.55%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.600M $3.786M $2.000M
YoY Change 330.0% 165.79% -74.68%
Accrued Expenses $5.000M $21.50M $21.50M
YoY Change -76.74%
Deferred Revenue $250.0K
YoY Change
Short-Term Debt $0.00 $5.500M $5.500M
YoY Change -100.0% 1275.0% 14.58%
Long-Term Debt Due $100.0K $100.0K $100.0K
YoY Change 0.0% -50.0% 0.0%
Total Short-Term Liabilities $72.00M $109.6M $109.6M
YoY Change -34.31% 116.49% 655.86%
LONG-TERM LIABILITIES
Long-Term Debt $13.50M $600.0K $600.0K
YoY Change 2150.0% -88.0%
Other Long-Term Liabilities $1.200M $19.20M $19.20M
YoY Change -93.75% 2300.0% 2642.86%
Total Long-Term Liabilities $14.70M $44.72M $19.80M
YoY Change -25.76% -8.6% 247.37%
TOTAL LIABILITIES
Total Short-Term Liabilities $72.00M $109.6M $109.6M
Total Long-Term Liabilities $14.70M $44.72M $19.80M
Total Liabilities $332.5M $154.3M $330.7M
YoY Change 0.54% 1291.93% 1474.76%
SHAREHOLDERS EQUITY
Retained Earnings $1.735M
YoY Change -105.24%
Common Stock $32.31K
YoY Change 435.47%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $180.5M $159.9M $159.9M
YoY Change
Total Liabilities & Shareholders Equity $513.0M $490.6M $490.6M
YoY Change 4.57% 40.18% 2281.55%

Cashflow Statement

Concept 2018 2017 Q4 2017
OPERATING ACTIVITIES
Net Income $10.84M $37.90M $25.80M
YoY Change -58.01% -2287.33% 125.27%
Depreciation, Depletion And Amortization $19.30M $18.77M $19.08M
YoY Change 1.19% 12502.9% 5.3%
Cash From Operating Activities $25.50M $30.38M $51.83M
YoY Change -50.81% 14366.67% 136.54%
INVESTING ACTIVITIES
Capital Expenditures $1.170M -$2.020M $2.085M
YoY Change -43.88% 3940.0% -36.95%
Acquisitions $0.00 $0.00
YoY Change
Other Investing Activities -$24.01M $10.06M $28.80M
YoY Change -183.37% -4291.67% -2742.2%
Cash From Investing Activities -$25.18M $8.030M $26.72M
YoY Change -194.26% -2967.86% -398.28%
FINANCING ACTIVITIES
Cash Dividend Paid $17.76M $10.45M
YoY Change 69.97% -60.81%
Common Stock Issuance & Retirement, Net $4.847M $1.015M
YoY Change 377.49% -109.77%
Debt Paid & Issued, Net $0.00 $0.00
YoY Change
Cash From Financing Activities -$11.18M -15.03M -$14.98M
YoY Change -25.37% -5282.76% -12.66%
NET CHANGE
Cash From Operating Activities $25.50M 30.38M $51.83M
Cash From Investing Activities -$25.18M 8.030M $26.72M
Cash From Financing Activities -$11.18M -15.03M -$14.98M
Net Change In Cash -$10.86M 23.38M $63.57M
YoY Change -117.09% 10527.27% -1617.24%
FREE CASH FLOW
Cash From Operating Activities $25.50M $30.38M $51.83M
Capital Expenditures $1.170M -$2.020M $2.085M
Free Cash Flow $24.33M $32.40M $49.75M
YoY Change -51.1% 12361.54% 167.36%

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CY2018 us-gaap Payments Of Dividends
PaymentsOfDividends
17758808
CY2017 us-gaap Payments Of Dividends
PaymentsOfDividends
10447923
CY2017 us-gaap Interest Paid Net
InterestPaidNet
51043
CY2018 ameh Deferred Tax Liability Adjusted To Goodwill
DeferredTaxLiabilityAdjustedToGoodwill
1110456
CY2017 ameh Deferred Tax Liability Adjusted To Goodwill
DeferredTaxLiabilityAdjustedToGoodwill
0
CY2017 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
5000000
CY2018 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
0
CY2017 us-gaap Proceeds From Payments For Other Financing Activities
ProceedsFromPaymentsForOtherFinancingActivities
-9000000
CY2018 us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
98735
CY2017 us-gaap Repayments Of Debt And Capital Lease Obligations
RepaymentsOfDebtAndCapitalLeaseObligations
102348
CY2018 ameh Proceeds From Stock Options Exercised Included In Liabilities
ProceedsFromStockOptionsExercisedIncludedInLiabilities
0
CY2017 ameh Proceeds From Stock Options Exercised Included In Liabilities
ProceedsFromStockOptionsExercisedIncludedInLiabilities
425025
CY2018 us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
3996677
CY2018 us-gaap Noncontrolling Interest Increase From Subsidiary Equity Issuance
NoncontrollingInterestIncreaseFromSubsidiaryEquityIssuance
200
CY2018 us-gaap Dividends
Dividends
1975010
CY2018 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
27500
CY2018 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
631561
CY2018 ameh Stock Issued During The Period Value Of Exercise Of Option And Warrants
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3996680
CY2017 us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
164797
CY2018 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
200000
CY2017 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
2160736
CY2018 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
5047643
CY2017 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
3175836
CY2018 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2017 us-gaap Net Cash Provided By Used In Financing Activities
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CY2018 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
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CY2017 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
63574383
CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
107636973
CY2018 us-gaap Income Taxes Paid
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23642662
CY2017 us-gaap Income Taxes Paid
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CY2018 us-gaap Interest Paid Net
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65283000
CY2018 us-gaap Adjustment Of Warrants Granted For Services
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0
CY2017 us-gaap Adjustment Of Warrants Granted For Services
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CY2018 us-gaap Conversion Of Stock Amount Issued1
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0
CY2017 us-gaap Conversion Of Stock Amount Issued1
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5376215
CY2018 ameh Reclassification Of Liability For Unissued Common Shares Payable To Equity
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0
CY2017 ameh Reclassification Of Liability For Unissued Common Shares Payable To Equity
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1237650
CY2018 us-gaap Goodwill Impairment Loss
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3798866
CY2018 us-gaap Goodwill Other Increase Decrease
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-242456
CY2018 us-gaap Concentration Risk Credit Risk
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<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;"><div style="font-weight:bold;display:inline;">Concentrations of Risks</div></div></div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;"><div style="font-weight:bold;display:inline;">&#160;</div></div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company had major payors that contributed the following percentage of net revenue:</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div><table style="border: none; border-collapse: collapse; margin: 0in 0in 0in 0.5in; width: 90%;;text-align:left;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;;width:;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; 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<div><table style="border: none; border-collapse: collapse; margin-bottom: 0.001pt; width: 100%; table-layout: fixed;"><tr><td style="border-width: initial; border-style: none; border-color: initial; padding: 0px; vertical-align: top; width: 0.3pt;"></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;width: 36pt;"><div style="font-family: &quot;times new roman&quot;, serif;"><div style="font-weight:bold;display:inline;width:100%;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">1.</div></div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: &quot;times new roman&quot;, serif;"><div style="font-weight:bold;display:inline;width:100%;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Description of Business</div></div></div></td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Apollo Medical Holdings, Inc. (&#8220;ApolloMed&#8221;), entered into an Agreement and Plan of Merger dated as of December 21, 2016 (as amended on March 30, 2017 and October 17, 2017) (the &#8220;Merger Agreement&#8221;) among ApolloMed, Apollo Acquisition Corp., a California corporation and wholly-owned subsidiary of ApolloMed, (&#8220;Merger Subsidiary&#8221;), Network Medical Management, Inc. (&#8220;NMM&#8221;), and Kenneth Sim, M.D., not individually but in his capacity as the representative of the shareholders of NMM (the &#8220;Merger&#8221;). The Merger closed and became effective on December 8, 2017 (the &#8220;Closing&#8221;) (see Note 3). As a result of the Merger, NMM is now a wholly-owned subsidiary of ApolloMed and the former NMM shareholders own a majority of the issued and outstanding common stock of ApolloMed and control of the Board of ApolloMed. For accounting purposes, the Merger is treated as a &#8220;reverse acquisition&#8221; and NMM is considered the accounting acquirer and ApolloMed the accounting acquiree. Accordingly, as of the Closing, NMM&#8217;s historical results of operations replaced ApolloMed&#8217;s historical results of operations for all periods prior to the Merger, and the results of operations of both companies are included in the accompanying consolidated financial statements for all periods following the Merger. Effective as of the Closing, ApolloMed&#8217;s board of directors approved a change in ApolloMed&#8217;s fiscal year end from March 31 to December 31, to correspond with NMM&#8217;s fiscal year end prior to the Merger.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The combined company, following the Merger, together with its affiliated physician groups and consolidated entities (collectively, the &#8220;Company&#8221;) is a physician-centric integrated population health management company working to provide coordinated, outcomes-based medical care in a cost-effective manner and serves patients in California, the majority of whom are covered by private or public insurance such as Medicare, Medicaid and health maintenance organizations (&#8220;HMOs&#8221;), with a small portion of </div> the Company&#8217;s <div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"> revenue coming from non-insured patients. The Company provides care coordination services to each major constituent of the healthcare delivery system, including patients, families, primary care physicians, specialists, acute care hospitals, alternative sites of inpatient care, physician groups and health plans. The Company&#8217;s physician network consists of primary care physicians, specialist physicians and hospitalists. The Company operates primarily through the following subsidiaries of ApolloMed: NMM, Apollo Medical Management, Inc. (&#8220;AMM&#8221;), APA ACO, Inc. (&#8220;APAACO&#8221;) and Apollo Care Connect, Inc. 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The management services cover primarily billing, collection, accounting, administrative, quality assurance, marketing, compliance and education.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Allied Physicians of California IPA, a Professional Medical Corporation d.b.a. Allied Pacific of California IPA, a Professional Medical Corporation d.b.a. Allied Pacific of California (&#8220;APC&#8221;) was incorporated on August&#160;17, 1992 for the purpose of arranging health care services as an IPA. APC has contracts with various health maintenance organizations (&#8220;HMOs&#8221;) or licensed health care service plans as defined in the California Knox-Keene Health Care Service Plan Act of 1975. Each HMO negotiates a fixed amount per member per month (&#8220;PMPM&#8221;) that is to be paid to APC. In return, APC arranges for the delivery of health care services by contracting with physicians or professional medical corporations for primary care and specialty care services. APC assumes the financial risk of the cost of delivering health care services in excess of the fixed amounts received. Some of the risk is transferred to the contracted physicians or professional corporations. The risk is also minimized by stop-loss provisions in contracts with HMOs.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">On July&#160;1, 1999, APC entered into an amended and restated management and administrative services agreement with NMM (initial management services agreement was entered into in 1997) for an initial fixed term of 30 years. In accordance with relevant accounting guidance, APC is determined to be a Variable Interest Entity (&#8220;VIE&#8221;) as NMM is the primary beneficiary with the ability to direct the activities (excluding clinical decisions) that most significantly affect APC&#8217;s economic performance through its majority representation of the APC Joint Planning Board; therefore APC is consolidated by NMM. As of December&#160;31, 2018 and December 31, 2017, APC had an ownership interest of 4.82% and 4.95% in ApolloMed, respectively.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Concourse Diagnostic Surgery Center, LLC (&#8220;CDSC&#8221;) was formed on March&#160;25, 2010 in the state of California. CDSC is an ambulatory surgery center in City of Industry, California, is organized by a group of highly qualified physicians, and the surgical center utilizes some of the most advanced equipment in Eastern Los Angeles County and San Gabriel Valley. The facility is Medicare Certified and accredited by the Accreditation Association for Ambulatory Healthcare, Inc. During 2011, APC invested $625,000 for a 41.59% ownership in CDSC. Due to capital stock changes in 2016, APC&#8217;s ownership percentage in CDSC&#8217;s capital stock changed to 43.80% and 43.43% on May&#160;31, 2016 and July&#160;31, 2016, respectively. CDSC is consolidated as a VIE by APC as it was determined that APC has a controlling financial interest in CDSC and is the primary beneficiary of CDSC.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">APC-LSMA was formed on October&#160;15, 2012 as a designated shareholder professional corporation and Dr. Thomas Lam, a shareholder, Chief Executive and Financial Officer of APC and Co-CEO of ApolloMed is a nominee shareholder of APC. APC makes all the investment decisions on behalf of APC-LSMA, funds these investments and receives all the distributions from the investments. APC has the obligation to absorb losses or rights to receive benefits from all the investments made by APC-LSMA. APC-LSMA&#8217;s sole function is to act as the nominee shareholder for APC in other California medical professional corporations. Therefore, APC-LSMA is controlled and consolidated by APC who is the primary beneficiary of this VIE. The only activity of APC-LSMA is to hold the investments in medical corporations, which includes: The IPA line of business of LaSalle Medical Associates (&#8220;LMA&#8221;), Pacific Medical Imaging and Oncology Center, Inc. (&#8220;PMIOC&#8221;), Diagnostic Medical Group (&#8220;DMG&#8221;) and </div> AHMC International Cancer Center (&#8220;ICC&#8221;).</div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">ICC was formed on September 2, 2010 in the state of California. ICC is a Professional Medical California Corporation and has entered into agreements with organizations such as HMOs, IPAs, medical groups and other purchasers of medical services for the arrangement of services to subscribers or enrollees. On November&#160;15, 2016, APC-LSMA, a holding company of APC, agreed to purchase and acquire from ICC 40% of the aggregate issued and outstanding shares of capital stock of ICC for $400,000 in cash. Certain requirements to complete the investment transaction were completed in August 2017 and effective on October 31, 2017, ICC was determined to be a VIE of APC and is consolidated by APC as it was determined that APC is the primary beneficiary of ICC through its power and obligation to absorb losses and rights to receive benefits that could potentially be significant to ICC.</div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Universal Care Acquisition Partners, LLC (&#8220;UCAP&#8221;), a 100% owned subsidiary of APC, was formed on June&#160;4, 2014, for the purpose of holding the investment in Universal Care, Inc. 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The NGACO Model is a new CMS program that allows provider groups to assume higher levels of financial risk and potentially achieve a higher reward from participating in this new attribution-based risk sharing model. In addition to APAACO, NMM and AMM </div> previously <div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">operated three accountable care organizations (&#8220;ACOs&#8221;) that participated in the Medicare Shared Savings Program (&#8220;MSSP&#8221;), the goal of which is to improve the quality of patient care and outcomes through more efficient and coordinated approach among providers. MSSP revenues are uncertain, and, if such amounts are payable by CMS, they will be paid on an annual basis significantly after the time earned, and are contingent on various factors, including achievement of the minimum savings rate for the relevant period. 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CY2018Q2 ameh Cost Method Investment Description
CostMethodInvestmentDescription
In May 2018, APC purchased 270,000 membership interests of MediPortal LLC, a New York limited liability company, for $0.4 million or $1.50 per membership interest, which represented approximately 2.8% ownership.
CY2018Q2 ameh Warrant Term
WarrantTerm
5-year warrant to purchase 270,000 membership interests. A 5-year
CY2018Q4 us-gaap Loans Receivable Net
LoansReceivableNet
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CY2018 us-gaap Use Of Estimates
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<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;"><div style="font-weight:bold;display:inline;">Use of Estimates</div></div></div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;">The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.&#160;Significant items subject to such estimates and assumptions include collectability of receivables, recoverability of long-lived and intangible assets, business combination and goodwill valuation and impairment, accrual of medical liabilities (including historical medical loss ratios (&#8220;MLR&#8221;), and incurred, but not reported (&#8220;IBNR&#8221;) claims), determination of full-risk and shared-risk revenue and receivables (including constraints, completion factors and the modified retrospective adjustments recorded at the adoption of ASC 606), income taxes and valuation of share-based compensation. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ materially from those estimates and assumptions.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2018Q4 us-gaap Line Of Credit
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CY2018 us-gaap Payments To Acquire Loans Receivable
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CY2018 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;text-align: justify;"><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;"><div style="font-weight:bold;display:inline;">Reclassifications</div></div></div></div><div style="font-family: &quot;times new roman&quot;, serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; background: none;"><div style="white-space: pre-line; font-family: &quot;times new roman&quot;, serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">&#160;</div></div><div style="font-family: &quot;times new roman&quot;, serif; margin-bottom: 0px; margin-top: 0px; text-align: justify; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: &quot;times new roman&quot;, times, serif; letter-spacing: 0px; top: 0px;;display:inline;">Certain amounts disclosed in prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no material effect on net income, cash flows or total assets. During the year ended December 31, 2018 the Company reclassified certain FFS transaction which were treated as revenue in prior years to cost of services totaling $<div style="letter-spacing: 0px; top: 0px;;display:inline;">1.3</div> million for the year ended December 31, 2017.</div></div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2018 ameh Share Based Compensation Arrangement By Share Based Payment Award Warrants Exercises In Period
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CY2017 ameh Class Of Warrants Or Right Exercise Price Of Warrants Assumed From Merger
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CY2017Q1 us-gaap Line Of Credit Facility Description
LineOfCreditFacilityDescription
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CY2018Q4 us-gaap Line Of Credit Facility Description
LineOfCreditFacilityDescription
The letter of credit expires on December 31, 2019 and is deemed automatically extended without amendment for additional one - year periods from the present or any future expiration date, unless notified by the institution to terminate prior to 90 days from any expiration date.
CY2018 ameh Percentage Of Managing Responsible Of Health Planship
PercentageOfManagingResponsibleOfHealthPlanship
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CY2018Q4 ameh Extendable Amount On Credit Facility
ExtendableAmountOnCreditFacility
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CY2018 us-gaap Debt Instrument Interest Rate Basis For Effective Rate
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prime rate plus 1%
CY2018Q4 ameh Advanced For Working Capital
AdvancedForWorkingCapital
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CY2018Q2 ameh Line Of Credit Facility Additional Advances
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CY2018Q4 ameh Line Of Credit Facility Additional Advances
LineOfCreditFacilityAdditionalAdvances
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CY2018Q4 us-gaap Loans And Leases Receivable Related Parties
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CY2017Q4 us-gaap Loans And Leases Receivable Related Parties
LoansAndLeasesReceivableRelatedParties
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CY2018Q4 us-gaap Business Acquisition Share Price
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CY2018 ameh Reclassification Of Dividends Related To Shares Repurchase
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CY2017 ameh Reclassification Of Dividends Related To Shares Repurchase
ReclassificationOfDividendsRelatedToSharesRepurchase
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CY2018Q1 us-gaap Loss Contingency Damages Sought Value
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CY2018Q4 ameh Paymentofrevenue
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CY2018 ameh Stock Issued During Period Shares Merger
StockIssuedDuringPeriodSharesMerger
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CY2018 ameh Equity Method Investment Significant Influence Description
EquityMethodInvestmentSignificantInfluenceDescription
Significant influence is generally deemed to exist if the Company has an ownership interest in the voting stock of the investee of between 20% and 50%, although other factors, such as representation on the investee&#8217;s board of directors, are considered in determining whether the equity method of accounting is appropriate.
CY2017Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2018Q4 ameh Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Risk Pool Receivable
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CY2017Q4 ameh Deferred Tax Assets Tax Deferred Expense Reserves And Accruals Risk Pool Receivable
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CY2017Q4 ameh Deferred Tax Assets Investment
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CY2017Q4 us-gaap Intangible Assets Gross Excluding Goodwill
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CY2018Q4 us-gaap Intangible Assets Gross Excluding Goodwill
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CY2018 us-gaap Provision For Doubtful Accounts
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CY2017 us-gaap Provision For Doubtful Accounts
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CY2018 us-gaap Contract With Customer Liability Revenue Recognized
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CY2018Q4 ameh Payment Of Revenue Reduce
PaymentOfRevenueReduce
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CY2017Q4 us-gaap Common Stock Shares Subscribed But Unissued
CommonStockSharesSubscribedButUnissued
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CY2017Q4 us-gaap Share Based Compensation
ShareBasedCompensation
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CY2018 ameh Holdback Rate
HoldbackRate
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CY2018 us-gaap Stock Repurchased During Period Value
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CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
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CY2018Q1 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
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CY2018Q1 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
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CY2018Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
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CY2018 ameh Payments To Cms Based For Medical Liabilities
PaymentsToCMSBasedForMedicalLiabilities
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CY2017 ameh Payments To Cms Based For Medical Liabilities
PaymentsToCMSBasedForMedicalLiabilities
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CY2018 ameh Percentage Of Financial Guarantee Benchmark Amount
PercentageOfFinancialGuaranteeBenchmarkAmount
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CY2018Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
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CY2018Q4 us-gaap Accounts Receivable Related Parties Current
AccountsReceivableRelatedPartiesCurrent
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CY2017Q4 us-gaap Accounts Receivable Related Parties Current
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CY2018 us-gaap Prior Period Reclassification Adjustment
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CY2018 ameh Risk Pool Settlement
RiskPoolSettlement
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CY2018Q4 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
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CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
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CY2018Q4 ameh Billing In Excess Of Costs
BillingInExcessOfCosts
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CY2018 ameh Description Of Percentage On Medical Liabilities Program Recorded
DescriptionOfPercentageOnMedicalLiabilitiesProgramRecorded
as APAACO&#8217;s NGACO program was new and sufficient claims history was not available, the medical liabilities for the NGACO program were estimated and recorded at 100&#8203;&#8203;&#8203;&#8203;&#8203;&#8203;&#8203;% of the revenue less actual claims processed for or paid to in-network providers.
CY2018 ameh Stock Repurchase During Period Value Release Of Hold Back Shares
StockRepurchaseDuringPeriodValueReleaseOfHoldBackShares
0
CY2018 dei Document Type
DocumentType
10-K
CY2018 dei Amendment Flag
AmendmentFlag
false
CY2018 dei Document Period End Date
DocumentPeriodEndDate
2018-12-31
CY2018 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2018
CY2018 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
FY
CY2018 dei Entity Registrant Name
EntityRegistrantName
Apollo Medical Holdings, Inc.
CY2018 dei Entity Central Index Key
EntityCentralIndexKey
0001083446
CY2018 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
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CY2018 dei Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
No
CY2018 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2018 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2018 dei Entity Filer Category
EntityFilerCategory
Accelerated Filer
CY2018Q2 dei Entity Public Float
EntityPublicFloat
670207983
CY2018 dei Trading Symbol
TradingSymbol
AMEH
CY2019Q1 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
35799053
CY2018 dei Entity Shell Company
EntityShellCompany
false
CY2018 dei Entity Emerging Growth Company
EntityEmergingGrowthCompany
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CY2018 dei Entity Small Business
EntitySmallBusiness
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CY2018 ameh Non Cash Reclassification Of Deferred Tax Liabilities
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