Apollo Medical Holdings, Inc.

in Northern California. We believe we offer a differentiated product in the marketplace for independent physicians and physician groups, and we expect to see strong growth going forward in this area. As we look to the rest of 2022 and into 2023, we are excited to continue deepening our presence in our California markets while also expanding to new regions in New York through a series of acquisitions and partnerships with key provider groups that share our vision of empowering independent physicians. As we go to market with a comprehensive suite of value-based care technologies, with the addition of Orma Health in our tech stack, we are seeing a strong uptick in organic inbound inquiries from IPAs, ACOs, DCEs, and other organizations who are looking to bolster their care and quality analytics, and as more physicians look to add remote patient monitoring to their value-based care toolkit. The Orma business continues to grow active membership, strong, strongly, 23% in the first quarter, and has expanded to serve practices in two new states in Q1 of 2022. As I mentioned earlier, we have continued to build out our team here at Apollo Med, particularly in the areas of operations, strategy, and business development to support our growth efforts. I'm pleased to welcome Chan Basho as our new Chief Strategy Officer. He has also been appointed Interim Chief Financial Officer as Eric has stepped down from the role for personal reasons. Chan brings 15 years of experience in finance, operations, strategy, and corporate development. As Chief Strategy Officer, Chan will lead the development and execution of our overall corporate strategy, along with building and supervising our operating teams. He will be working closely with me and the larger leadership team. Most recently, Chan served as VP of Strategy and Corporate Development at Alignment Healthcare. Prior to Alignment, he was Chief Financial Officer at Alsana. a private equity-backed behavioral health company. He also held roles at Healthcare Partners, a DaVita Medical Group company, where he spearheaded strategy and development for the California market, as well as at DaVita itself, where he led a corporate finance team. Sean is intimately familiar with what we are looking to achieve here at ApolloMed, and we are excited to have him on board. I would like to thank Eric for his many, many contributions to ApolloMed these past few years. He played a very important role in helping our company grow to what it is today, and we wish him all the best in his future endeavors. I would like to turn it over to Eric to say a few words.

Thank you, Brandon. It's 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 Sean 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 of $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 31st, 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 service 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 administrative expenses related to share-based compensation and salaries, wages, and benefit expenses related to hiring additional key personnel and staff to support our operational growth. Net income attributable to ApolloMed was $14.3 million, up 8.5% from $13.2 million in the first quarter of 2021. Earnings per share on a diluted basis were 31 cents per share, compared to 30 cents per share in the prior year period. We reported EBITDA of 23.7 million in the first quarter of 2022, which compares to 26.6 million in the prior year period. Adjusted EBITDA was 38.2 million, up 25% from 30.5 million in the prior year period. As we've noted in the past, we place great emphasis on the adjusted EBITDA figure as this number backs up the impact of recently acquired IPAs, other income, and income from equity method investments. It also backs up the impact of excluded assets, which for Q1 2022 included a one-time non-cash unrealized loss of $9 million as a result of a decrease in fair value related to the passive investment in a payer partner. These losses are in the excluded assets bucket that we described in the past, and they are slowly for the benefit of our affiliate, APC, and its shareholders. Turning over to the balance sheet, we remain well-capitalized and well-positioned to execute on our growth initiatives. We ended the first quarter with $237.9 million in cash and cash equivalents. compared to $233.1 million at the end of 2021. Our working capital was $284 million compared to $283.4 million at the end of 2021. And additional stockholder equity increased, and sorry, and total stockholder equity increased to $279.5 million as of March 31st, 2022, from $460.5 million at December 31st, 2021. Moving further down the balance sheet, total debt at the end of the first quarter was $188.6 million. We're safely in compliance with our debt covenants with a consolidated total net leverage ratio of 1.04 compared to the maximum permitted 3.75 and consolidated interest coverage ratio of 27.03 times compared to the minimum permitted 3.25 times. I'd like to turn it back over to Brandon to discuss our growth strategy and outlook for the remainder of 2022. Thanks, John.