Greetings. Welcome to the Apollo Medical Holdings First Quarter 2022 Financial Results. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Carolyne Sohn of The Equity Group. You may begin.

Thank you, operator, and hello everyone. Thank you for joining us. The press release announcing Apollo Medical Holdings Inc.'s results for the first quarter ended March 31, 2022 is available at the Investors section of the company's website at www.apollomed.net. To provide some additional background on its results the company has made a supplemental deck available on its website. A replay of this broadcast will also be made available at ApolloMed's website after the conclusion of this call. Before we get started, I would like to remind everyone that this conference call and any accompanying information discussed herein contains certain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as anticipate, believe, expect, future, plan, outlook and will and include, among other things, statements regarding the company's guidance for the year ending December 31, 2022, continued growth, acquisition strategy, ability to deliver sustainable long-term value, ability to respond to the changing environment, operational focus, strategic growth plans and merger integration efforts as well as the impact of the 2020 novel coronavirus or COVID-19 pandemic and other variants on the company's business, operations and financial results. Although the company believes that the expectations reflected in the forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove to be correct. Information about the risks associated with investing in ApolloMed is included in its filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision. The company does not assume any obligation to update any forward-looking statements as a result of new information, future events, changes in market conditions or otherwise, except as required by law. Regarding the disclaimer language, I would also like to refer you to Slide 2 of the conference call presentation for further information. For those of you following along with the accompanying supplement, there is an overview of the company on Slide 3. On today's call the Company's Co-Chief Executive Officer, Brandon Sim will discuss first quarter 2022 highlights and the latest operational developments. The Company announced this afternoon the appointment of Chief Strategy Officer and Interim Chief Financial Officer, Chan Basho. Chan will provide a review of ApolloMed's results for the first quarter ended March 31, 2022 and Brandon will conclude the remarks with an update on the Company's outlook and long-term growth strategy before opening the floor for questions. With that, I'll turn the call over to ApolloMed's Co-Chief Executive Officer, Brandon Sim. Please go ahead, Brandon.

Thank you, Carolyne. This has been an exciting quarter and I want to start today's call on a personal note. I'm very proud and thankful for the work that each of our provider partners embarks on daily. As some of you may know, my grandparents are both members of ApolloMed. I've seen first-hand just how diligently they have received care as they have gone through some recent care needs and has been eye opening and touching for me to see our technology-powered care delivery model inaction from the point of view of a family member. Independent physicians are the backbone of our nation's healthcare delivery system and we are strongly committed to supporting and enabling them. Our goal here at ApolloMed is to provide inclusive, high quality care for all individuals within our communities. Today we have the privilege of serving Medicare Advantage, Managed Medicaid, ACA Exchange, commercial and Medicare fee-for-service population. And we look forward to continuing our efforts to advance health equity in all of these populations. Now historically, independent practices have lacked access to centralized care teams and integrated delivery services. Through our technology-enabled tools we are changing this paradigm and empowering our partnered physicians to take on risk and manage both their managed care and fee-for-service populations in a proactive manner, with the support of ApolloMed's value-based care infrastructure. We believe that this will enhance quality, access to care and decrease overall cost of care. Now onto the quarter, strong organic membership growth and favorable membership mix as well as participation in a value-based care model for the Medicare fee-for-service population served as the catalyst for topline growth during the first quarter of 2022, as our capitated revenue grew 53% year-over-year. We achieved a 50% increase in total revenue, reporting $263.3 million for the three months…

Thank you, Brandon. It has been very rewarding to see ApolloMed develop into the technology-powered healthcare organization that it is today. When I started there was no engineering team, there was no business development team, we are a very different company today set on a very strong foundation for significant future growth, thanks to your leadership, continued support of our Board, and the new talent that we have brought on board in the recent months. I look forward to continue working at ApolloMed in an advisory capacity to ensure a smooth transition, and I'm excited to see what is next for the company. With that, I'll turn it over to Chan to review our financial results.

Thanks so much, Eric, and I want to personally thank you for all of your guidance and assistance during this time. I'm very excited to be part of ApolloMed and share a passion similar to Brandon around building the leading technology-powered organization for empowering independent physicians to be successful in value-based care. Moving into 2022 Q1 earnings, we began 2022 on a strong note, reporting total revenues $263.3 million in the first quarter of 2022, a 50% increase from $176.1 million in the prior year quarter. This was primarily driven by increased capitation revenue resulting from organic membership growth in our core IPAs and participation in a value-based Medicare fee-for-service model, as well as increased fee-for-service revenue from the consolidation of Sun Labs and DMG. Capitation revenue increased 53% to $222.1 million during the period, accounting for over 84% of total revenue for the quarter ending March 31, 2022. Fee-for-service revenue was $11.1 million compared to $3.1 million in the prior year quarter. The consolidation of Sun Labs and DMG contributed $6.2 million of that during this period. Our membership remained at approximately $1.2 million managed lives at the end of the first quarter ending March 31, 2022, approximately 600,000 or half of our members were under capitated risk-bearing arrangements through our consolidated IPAs. Total operating expenses increased about 54% to $237 million in the first quarter of 2022 from $154.3 million in the prior year period. As Brandon noted earlier, this was primarily a result of increased cost of services due to higher medical claims, capitation and other health services expenses, commensurate to our increase in revenue, as well as some lagging effects from COVID-19 in our risk pools. We also incurred – increased general and administrative expenses related to share-based compensation and salary, wages and benefit expenses related…

Thanks Chan. Our new business pipeline remains robust as we continue to field inbound increase from provider groups and healthcare organizations nationwide that are interested in the unique platform that we've built here at ApolloMed. Our history of positive clinical outcomes and financial performance as well as our self-developed technology platform purpose-built for independent doctors has helped to fuel this interest. We are being selective and conducting the necessary diligence and evaluating potential opportunities in California, New York, as well as in the Southwestern United States, focusing on groups that are very committed to serving their communities and to advancing health equity as we enable them to succeed in risk-based contracts. As it relates to our current business, I noted earlier that we are raising revenue guidance as well as the lower end of the ranges for net income, EBITDA, and adjusted EBITDA for full year 2022 as a result of the continued organic growth in our core business and favorable membership mix. As listed on Slide 11 of our supplement, we anticipate for the year ending December 31, 2022 revenues are between $1.055 billion and 1.085 billion, net income of $38 million to $57 million, EBITDA of $81 million to $111 million and adjusted EBITDA of $136 million to $166 million. Please keep in mind that the updated guidance does take into account any potential impact of APC's passive investment and a payer partner which Chan noted in his comments earlier. For this reason, we placed greater emphasis on the adjusted EBITDA metrics. These guidance metrics do not consider any potential acquisitions or any major business transactions we may complete for the remainder of 2022. As any material developments arise, we will be sure to update the markets and reevaluate guidance as appropriate. To close, it is a very exciting time here at ApolloMed. We see many growth opportunities before us and as we continue to on-board new providers and provider groups across the country, expand our base of customers on our technology platform and continue nurturing strong organic growth in our existing core markets. ApolloMed is committed to empowering provider groups across the country to successfully participate in value-based arrangements enabling them to provide quality – high quality cost-effective care to individuals and families and local communities. The same way our current ApolloMed providers have been doing for my own family. With that operator let's open it up for Q&A.

[Operator Instructions] And it appears that there are no questions at this at this time. Therefore, I will now turn the call back over to management for closing remarks.

Thank you all for your time today. We are always open to dialogue with investors and welcome visitors to our offices in Alhambra, California should any of you be in the Los Angeles area. I will also be at the RBC and UBS Healthcare Conferences in New York later this month, and I look forward to seeing many of you there. Please feel free to reach out to us or our Investor Relations firm, The Equity Group with any additional questions you may have. We look forward to speaking to you all again on our next quarterly call. Thank you

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.