ApolloMed Merger Complicates Annual Report

Apollo Medical Holdings Inc. has announced its fiscal year results, but the financial numbers only reflect 23 days’ of the company’s performance. On Dec. 8, the Glendale health care management company consummated its merger with Network Medical Management, an Alhambra-based health management services organization. “As a result of the merger, for accounting purposes, (Network Medical Management) is considered the accounting acquirer, and therefore (Network Medical Management)’s historical results of operations replace ApolloMed’s historical results of operations for all periods prior to the merger,” the company said in a statement. Because of the accounting switchover, the numbers in the annual report “reflects 12 months consolidated financial results of (Network Medical Management) and only 23 days of ApolloMed,” the statement continued. In the future, the results of operations of both companies will be included in consolidated financial statements. According to the annual report, the combined company had net income of $25.8 million (90 cents a share) for the fiscal year ended Dec. 31, compared to net income of $11.5 million (41 cents) during the previous year. Revenue increased 17 percent to $358 million. No analysts follow the company. The company announced results Monday. Shares of ApolloMed (AMEH) closed Tuesday up 2 cents, or a fraction of a percent, to $17.68 on the Nasdaq.