Astrana Health, Inc. (ASTH): auditor change — Apollo Medical restates 2020-2022 and Q1 2023 results due to tax accounting errors; net income reduced $10M cumulative

Astrana Health, Inc.

Net income decreases: $0.2M (2020), $3.2M (2021), $4.8M (2022), $1.8M (Q1 2023); caused by errors in intercompany dividend tax and NOL valuation allowance.
Material weakness identified in internal control over financial reporting related to income tax accounting; prior management reports and EY opinion no longer reliable.
Revenue, gross profit, pretax income, EBITDA, and adjusted EBITDA unaffected by restatement; 2023 outlook unchanged.
Company plans to file amended 2022 10-K and Q1 2023 10-Q; expects to timely file Q2 2023 10-Q with recast prior-period data.
Review of tax structure underway to reduce effective tax rate and cash taxes going forward.

item 4.02 item 7.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Astrana Health, Inc. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: Ernst & Young LLP

Exact text from the filing

the Company’s previously issued audited consolidated financial statements as of December 31, 2022 and 2021 and for each of the years ended December 31, 2022, 2021 and 2020, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”), and the Company’s unaudited consolidated financial statements included in the Quarterly Reports on Form 10-Q for the quarterly 2022 fiscal year periods (the “Historical Quarterly Reports”), as well as the unaudited consolidated financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the “Q1 Quarterly Report” and, together with the 2022 Annual Report and the Historical Quarterly Reports, the “Reports” and all financial statements included in the Reports, collectively, the “Affected Financials”), should no longer be relied upon due to material unintentional errors related to the Company’s tax provision.

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Astrana Health, Inc. filing history →

Source: SEC EDGAR

accession 0001104659-23-088394

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