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v3.23.2

Restatement of Prior Financial Information | 3 Months Ended
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Mar. 31, 2023
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 March 31, 2023 and December 31, 2022 and for each of the three months ended March 31, 2023 and 2022, 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 Company previously restated its consolidated balance sheet as of December 31, 2022 in its Form 10-K/A for the year ended December 31, 2022, filed with the Securities and Exchange Commission on August 9, 2023. The effect of the error corrections are as follows (in thousands, except per share amounts):
|  | March 31, 2023 |  | Adjustments |  | March 31, 2023
|  | As previously reported |  |  | As restated
CONSOLIDATED BALANCE SHEETS
Receivables, net |  | $ | 79,003 |  |  | $ | (2,998) |  |  | $ | 76,005 |
Income taxes receivable |  | $ | 9 |  |  | $ | (9) |  |  | $ | — |
Total current assets |  | $ | 457,688 |  |  | $ | (3,007) |  |  | $ | 454,681 |
Goodwill |  | $ | 276,028 |  |  | $ | (6,622) |  |  | $ | 269,406 |
Income taxes receivable, non-current |  | $ | — |  |  | $ | 15,943 |  |  | $ | 15,943 |
Total non-current assets |  | $ | 534,940 |  |  | $ | 9,321 |  |  | $ | 544,261 |
Total assets |  | $ | 992,628 |  |  | $ | 6,314 |  |  | $ | 998,942 |
Medical liabilities |  | $ | 101,394 |  |  | $ | (2,998) |  |  | $ | 98,396 |
Income taxes payable |  | $ | — |  |  | $ | 11,289 |  |  | $ | 11,289 |
Total current liabilities |  | $ | 164,954 |  |  | $ | 8,291 |  |  | $ | 173,245 |
Deferred tax liability |  | $ | 3,695 |  |  | $ | 10,668 |  |  | $ | 14,363 |
Total non-current liabilities |  | $ | 249,745 |  |  | $ | 10,668 |  |  | $ | 260,413 |
Total liabilities |  | $ | 414,699 |  |  | $ | 18,959 |  |  | $ | 433,658 |
Non-controlling interest in Allied Physicians of California, a Professional Medical Corporation ("APC") |  | $ | 14,729 |  |  | $ | (452) |  |  | $ | 14,277 |
Retained earnings |  | $ | 207,300 |  |  | $ | (11,751) |  |  | $ | 195,549 |
Non-controlling interest |  | $ | 3,156 |  |  | $ | (442) |  |  | $ | 2,714 |
Total stockholders’ equity |  | $ | 563,200 |  |  | $ | (12,193) |  |  | $ | 551,007 |
|  | Three months ended March 31, 2023 |  | Adjustments |  | Three months ended March 31, 2023 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED STATEMENTS OF INCOME |  |
Provision for income taxes |  | $ | 5,102 |  |  | $ | 1,819 |  |  | $ | 6,921 |  |  |
Net income |  | $ | 14,307 |  |  | $ | (1,819) |  |  | $ | 12,488 |  |  |
Net income attributable to noncontrolling interests |  | $ | (315) |  |  | $ | (329) |  |  | $ | (644) |  |  |
Net income attributable to Apollo Medical Holdings, Inc. |  | $ | 14,622 |  |  | $ | (1,490) |  |  | $ | 13,132 |  |  |
Earnings per share – basic |  | $ | 0.31 |  |  | $ | (0.03) |  |  | $ | 0.28 |  |  |
Earnings per share – diluted |  | $ | 0.31 |  |  | $ | (0.03) |  |  | $ | 0.28 |  |  |
|  | March 31, 2023 |  | Adjustments |  | March 31, 2023 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED STATEMENTS OF MEZZANINE AND STOCKHOLDERS’ EQUITY |  |
Mezzanine Equity – Non-controlling Interest in APC - Net loss |  | $ | (1,400) |  |  | $ | (329) |  |  | $ | (1,729) |  |  |
Retained Earnings (Accumulated Deficit) - Net income |  | $ | 14,622 |  |  | $ | (1,490) |  |  | $ | 13,132 |  |  |
Mezzanine Equity – Non-controlling Interest in APC |  | $ | 14,729 |  |  | $ | (452) |  |  | $ | 14,277 |  |  |
Retained Earnings (Accumulated Deficit) |  | $ | 207,300 |  |  | $ | (11,751) |  |  | $ | 195,549 |  |  |
Non-controlling interest |  | $ | 3,156 |  |  | $ | (442) |  |  | $ | 2,714 |  |  |
Stockholders’ Equity |  | $ | 563,200 |  |  | $ | (12,193) |  |  | $ | 551,007 |  |  |
|  | Three months ended March 31, 2023 |  | Adjustments |  | Three months ended March 31, 2023 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED STATEMENTS OF CASH FLOWS |  |
Net income |  | $ | 14,307 |  |  | $ | (1,819) |  |  | $ | 12,488 |  |  |
Deferred tax |  | $ | 790 |  |  | $ | (507) |  |  | $ | 283 |  |  |
Income taxes payable/receivable |  | $ | 4,007 |  |  | $ | 2,326 |  |  | $ | 6,333 |  |  |
|  | 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 |
|  | Three months ended March 31, 2022 |  | Adjustments |  | Three months ended March 31, 2022 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED STATEMENTS OF INCOME |  |
Provision for income taxes |  | $ | 6,195 |  |  | $ | 623 |  |  | $ | 6,818 |  |  |
Net income |  | $ | 12,073 |  |  | $ | (623) |  |  | $ | 11,450 |  |  |
Net income attributable to noncontrolling interests |  | $ | (2,191) |  |  | $ | (123) |  |  | $ | (2,314) |  |  |
Net income attributable to Apollo Medical Holdings, Inc. |  | $ | 14,264 |  |  | $ | (500) |  |  | $ | 13,764 |  |  |
Earnings per share – basic |  | $ | 0.32 |  |  | $ | (0.01) |  |  | $ | 0.31 |  |  |
Earnings per share – diluted |  | $ | 0.31 |  |  | $ | (0.01) |  |  | $ | 0.30 |  |  |
|  | March 31, 2022 |  | Adjustments |  | March 31, 2022 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED STATEMENTS OF MEZZANINE AND STOCKHOLDERS’ EQUITY |  |
Mezzanine Equity – Non-controlling Interest in APC - Net loss |  | $ | (3,129) |  |  | $ | (123) |  |  | $ | (3,252) |  |  |
Retained Earnings (Accumulated Deficit) - Net income |  | $ | 14,264 |  |  | $ | (500) |  |  | $ | 13,764 |  |  |
Mezzanine Equity – Non-controlling Interest in APC |  | $ | 52,151 |  |  | $ | 902 |  |  | $ | 53,053 |  |  |
Retained Earnings (Accumulated Deficit) |  | $ | 157,893 |  |  | $ | (6,883) |  |  | $ | 151,010 |  |  |
Non-controlling interest |  |  |  |  |  |  |  |
Stockholders’ Equity |  | $ | 479,521 |  |  | $ | (6,883) |  |  | $ | 472,638 |  |  |
|  | Three months ended March 31, 2022 |  | Adjustments |  | Three months ended March 31, 2022 |  |
|  | As previously reported |  |  | As restated |
CONSOLIDATED STATEMENTS OF CASH FLOWS |  |
Net income |  | $ | 12,073 |  |  | $ | (623) |  |  | $ | 11,450 |  |  |
Deferred tax |  | $ | 1,985 |  |  | $ | 194 |  |  | $ | 2,179 |  |  |
Income taxes payable/receivable |  | $ | 4,241 |  |  | $ | 430 |  |  | $ | 4,671 |  |  |

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