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Restatement of Prior Financial Information | 12 Months Ended
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Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract] |
Restatement of Prior Financial Information | Restatement of Prior Financial Information In connection with a review of Apollo Medical Holdings, Inc.’s (the “Company” or “ApolloMed”) tax implications of intercompany dividends and the rationale for conclusions with respect to which entities were (or should have been) included in consolidated tax returns, and related accounting matters, the Company identified errors in its accounting for the income tax effects of certain intercompany dividends and certain net operating losses. Specifically, the Company failed to accrue for income tax expense on certain intercompany dividends. Although the Company accrued taxes on the income generated by the subsidiary that made the intercompany dividend, the additional taxes due by the subsidiary entitled to the dividend were not accrued. Also, based on a review of historical tax filings, the Company concluded that its previous determination regarding the realizability of certain net operating losses was incorrect resulting in an overstatement of the valuation allowance with respect to such net operating losses. The errors resulted in a net understatement of income tax expense in prior periods and also had an impact on purchase accounting (goodwill) as a portion of the deferred tax assets affected by the errors pertained to acquisitions made in 2019. The Company has restated herein its consolidated financial statements at December 31, 2022 and 2021 and for each of the years ended December 31, 2022, 2021 and 2020, in accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections, for the matters discussed above as well as other immaterial items. The effect of the error corrections are as follows (in thousands, except per share amounts):
|  | December 31, 2022 |  | Adjustments |  | December 31, 2022 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED BALANCE SHEETS |  |
Receivables, net |  | $ | 52,629 |  |  | $ | (2,998) |  |  | $ | 49,631 |  |  |
Income taxes receivable |  | $ | 4,015 |  |  | $ | (4,015) |  |  | $ | — |  |  |
Total current assets |  | $ | 435,138 |  |  | $ | (7,013) |  |  | $ | 428,125 |  |  |
Goodwill |  | $ | 275,675 |  |  | $ | (6,622) |  |  | $ | 269,053 |  |  |
Income taxes receivable, non-current |  | $ | — |  |  | $ | 15,943 |  |  | $ | 15,943 |  |  |
Total non-current assets |  | $ | 528,767 |  |  | $ | 9,321 |  |  | $ | 538,088 |  |  |
Total assets |  | $ | 963,905 |  |  | $ | 2,308 |  |  | $ | 966,213 |  |  |
Medical liabilities |  | $ | 84,253 |  |  | $ | (2,998) |  |  | $ | 81,255 |  |  |
Income taxes payable |  | $ | — |  |  | $ | 4,279 |  |  | $ | 4,279 |  |  |
Total current liabilities |  | $ | 147,329 |  |  | $ | 1,281 |  |  | $ | 148,610 |  |  |
Deferred tax liability |  | $ | 3,042 |  |  | $ | 11,175 |  |  | $ | 14,217 |  |  |
Total non-current liabilities |  | $ | 247,881 |  |  | $ | 11,175 |  |  | $ | 259,056 |  |  |
Total liabilities |  | $ | 395,210 |  |  | $ | 12,456 |  |  | $ | 407,666 |  |  |
Non-controlling interest in Allied Physicians of California, a Professional Medical Corporation ("APC") |  | $ | 13,682 |  |  | $ | 555 |  |  | $ | 14,237 |  |  |
Retained earnings |  | $ | 192,678 |  |  | $ | (10,261) |  |  | $ | 182,417 |  |  |
Non-controlling interest |  | $ | 2,191 |  |  | $ | (442) |  |  | $ | 1,749 |  |  |
Total stockholders' equity |  | $ | 555,013 |  |  | $ | (10,703) |  |  | $ | 544,310 |  |  |
|  | 2022 |  | Adjustments |  | 2022
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF INCOME
Provision for income taxes |  | $ | 36,085 |  |  | $ | 4,790 |  |  | $ | 40,875 |
Net income |  | $ | 50,531 |  |  | $ | (4,790) |  |  | $ | 45,741 |
Net income attributable to noncontrolling interests |  | $ | 1,482 |  |  | $ | (912) |  |  | $ | 570 |
Net income attributable to Apollo Medical Holdings, Inc. |  | $ | 49,049 |  |  | $ | (3,878) |  |  | $ | 45,171 |
Earnings per share – basic |  | $ | 1.09 |  |  | $ | (0.09) |  |  | $ | 1.00 |
Earnings per share – diluted |  | $ | 1.08 |  |  | $ | (0.09) |  |  | $ | 0.99 |
|  | December 31, 2022 |  | Adjustments |  | December 31, 2022
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF MEZZANINE AND STOCKHOLDERS’ EQUITY
Mezzanine Equity – Non-controlling Interest in APC - Net loss |  | $ | (2,725) |  |  | $ | (470) |  |  | $ | (3,195) |
Retained Earnings (Accumulated Deficit) - Net income |  | $ | 49,049 |  |  | $ | (3,878) |  |  | $ | 45,171 |
Non-controlling Interest – Net income |  | $ | 4,207 |  |  | $ | (442) |  |  | $ | 3,765 |
Mezzanine Equity – Non-controlling Interest in APC |  | $ | 13,682 |  |  | $ | 555 |  |  | $ | 14,237 |
Retained Earnings (Accumulated Deficit) |  | $ | 192,678 |  |  | $ | (10,261) |  |  | $ | 182,417 |
Non-controlling Interest |  | $ | 2,191 |  |  | $ | (442) |  |  | $ | 1,749 |
Stockholders’ Equity |  | $ | 555,013 |  |  | $ | (10,703) |  |  | $ | 544,310 |
|  | 2022 |  | Adjustments |  | 2022
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF CASH FLOWS |  |  |  |  |  |
Net income |  | $ | 50,531 |  |  | $ | (4,790) |  |  | $ | 45,741 |
Deferred tax |  | $ | (7,681) |  |  | $ | (6,597) |  |  | $ | (14,278) |
Receivable, net |  | $ | (41,192) |  |  | $ | 2,998 |  |  | $ | (38,194) |
Medical liabilities |  | $ | 25,784 |  |  | $ | (2,998) |  |  | $ | 22,786 |
Income taxes payable/receivable |  | $ | (4,470) |  |  | $ | 11,387 |  |  | $ | 6,917 |
|  | December 31, 2021 |  | Adjustments |  | December 31, 2021 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED BALANCE SHEETS |  |
Income taxes receivable |  | $ | — |  |  | $ | 5,678 |  |  | $ | 5,678 |  |  |
Total current assets |  | $ | 398,782 |  |  | $ | 5,678 |  |  | $ | 404,460 |  |  |
Goodwill |  | $ | 253,039 |  |  | $ | (6,623) |  |  | $ | 246,416 |  |  |
Income taxes receivable, non-current |  | $ | — |  |  | $ | 15,943 |  |  | $ | 15,943 |  |  |
Total non-current assets |  | $ | 453,581 |  |  | $ | 9,320 |  |  | $ | 462,901 |  |  |
Total assets |  | $ | 852,363 |  |  | $ | 14,998 |  |  | $ | 867,361 |  |  |
Income taxes payable |  | $ | 652 |  |  | $ | (652) |  |  | $ | — |  |  |
Total current liabilities |  | $ | 115,371 |  |  | $ | (652) |  |  | $ | 114,719 |  |  |
Deferred tax liability |  | $ | 9,127 |  |  | $ | 21,008 |  |  | $ | 30,135 |  |  |
Total non-current liabilities |  | $ | 220,992 |  |  | $ | 21,008 |  |  | $ | 242,000 |  |  |
Total liabilities |  | $ | 336,363 |  |  | $ | 20,356 |  |  | $ | 356,719 |  |  |
Non-controlling interest in Allied Physicians of California, a Professional Medical Corporation ("APC") |  | $ | 55,510 |  |  | $ | 1,025 |  |  | $ | 56,535 |  |  |
Retained earnings |  | $ | 143,629 |  |  | $ | (6,383) |  |  | $ | 137,246 |  |  |
Total stockholders’ equity |  | $ | 460,490 |  |  | $ | (6,383) |  |  | $ | 454,107 |  |  |
|  | 2021 |  | Adjustments |  | 2021
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF INCOME
Provision for income taxes |  | $ | 28,454 |  |  | $ | 3,239 |  |  | $ | 31,693 |
Net income |  | $ | 49,294 |  |  | $ | (3,239) |  |  | $ | 46,055 |
Net loss attributable to noncontrolling interests |  | $ | (24,564) |  |  | $ | 1,696 |  |  | $ | (22,868) |
Net income attributable to Apollo Medical Holdings, Inc. |  | $ | 73,858 |  |  | $ | (4,935) |  |  | $ | 68,923 |
Earnings per share – basic |  | $ | 1.69 |  |  | $ | (0.12) |  |  | $ | 1.57 |
Earnings per share – diluted |  | $ | 1.63 |  |  | $ | (0.11) |  |  | $ | 1.52 |
|  | December 31, 2021 |  | Adjustments |  | December 31, 2021
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF MEZZANINE AND STOCKHOLDERS’ EQUITY
Mezzanine Equity – Non-controlling Interest in APC - Net loss |  | $ | (27,331) |  |  | $ | 1,696 |  |  | $ | (25,635) |
Retained Earnings (Accumulated Deficit) - Net income |  | $ | 73,858 |  |  | $ | (4,935) |  |  | $ | 68,923 |
Mezzanine Equity – Non-controlling Interest in APC |  | $ | 55,510 |  |  | $ | 1,025 |  |  | $ | 56,535 |
Retained Earnings (Accumulated Deficit) |  | $ | 143,629 |  |  | $ | (6,383) |  |  | $ | 137,246 |
Stockholders’ Equity |  | $ | 460,490 |  |  | $ | (6,383) |  |  | $ | 454,107 |
|  | 2021 |  | Adjustments |  | 2021
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income |  | $ | 49,294 |  |  | $ | (3,239) |  |  | $ | 46,055 |
Deferred tax |  | $ | (5,952) |  |  | $ | 13,623 |  |  | $ | 7,671 |
Income taxes payable/receivable |  | $ | (3,621) |  |  | $ | (10,384) |  |  | $ | (14,005) |
|  | 2020 |  | Adjustments |  | 2020 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED STATEMENTS OF INCOME |  |
Provision for income taxes |  | $ | 56,107 |  |  | $ | 237 |  |  | $ | 56,344 |  |  |
Net income |  | $ | 122,320 |  |  | $ | (237) |  |  | $ | 122,083 |  |  |
Net income attributable to noncontrolling interests |  | $ | 84,454 |  |  | $ | (59) |  |  | $ | 84,395 |  |  |
Net income attributable to Apollo Medical Holdings, Inc. |  | $ | 37,866 |  |  | $ | (178) |  |  | $ | 37,688 |  |  |
Earnings per share – basic |  | $ | 1.04 |  |  | $ | (0.01) |  |  | $ | 1.03 |  |  |
Earnings per share – diluted |  | $ | 1.01 |  |  | $ | — |  |  | $ | 1.01 |  |  |
|  | December 31, 2020 |  | Adjustments |  | December 30, 2020
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF MEZZANINE AND STOCKHOLDERS’ EQUITY
Mezzanine Equity – Non-controlling Interest in APC - Net income |  | $ | 83,621 |  |  | $ | (59) |  |  | $ | 83,562 |
Retained Earnings (Accumulated Deficit) - Net income |  | $ | 37,866 |  |  | $ | (178) |  |  | $ | 37,688 |
Mezzanine Equity – Non-controlling Interest in APC |  | $ | 114,237 |  |  | $ | (671) |  |  | $ | 113,566 |
Retained Earnings (Accumulated Deficit) |  | $ | 69,771 |  |  | $ | (1,448) |  |  | $ | 68,323 |
Stockholders’ Equity |  | $ | 330,911 |  |  | $ | (1,448) |  |  | $ | 329,463 |
|  | 2020 |  | Adjustments |  | 2020
|  | As previously reported |  |  | As restated
CONSOLIDATED STATEMENTS OF CASH FLOWS |  |  |  |  |  |
Net income |  | $ | 122,320 |  |  | $ | (237) |  |  | $ | 122,083 |
Deferred tax |  | $ | (6,620) |  |  | $ | 7,016 |  |  | $ | 396 |
Income taxes payable/receivable |  | $ | (304) |  |  | $ | (6,779) |  |  | $ | (7,083) |
With respect to the consolidated statements of cash flows for 2022, 2021 and 2020, all adjustments are to line items within operating cash flows and there was no impact to the subtotal of operating, investing or financing cash flows for such periods. The remainder of the notes to the Company’s consolidated financial statements have been updated and restated, as applicable, to reflect the impacts of the restatement described above

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