Alignment Healthcare Reports Fourth Quarter and Full-Year 2024 Results; Provides Full-Year 2025 Financial Guidance
Alignment Healthcare (ALHC) reported strong growth in its Q4 and full-year 2024 results. Health plan membership reached 189,100 as of December 31, 2024, marking a 58.6% increase year-over-year. The company achieved its first full year of positive adjusted EBITDA as a public company.
Q4 2024 highlights include total revenue of $701.2 million, up 50.7% year-over-year, with a medical benefits ratio of 87.5%. The company recorded an adjusted EBITDA of $1.4 million, despite a net loss of $(31.1) million.
For full-year 2024, total revenue reached $2,703.6 million, increasing 48.3% year-over-year, with an adjusted EBITDA of $1.3 million and a net loss of $(128.1) million. Looking ahead, ALHC provided 2025 revenue guidance of $3.72-3.78 billion, projecting 37.6-39.6% growth, with adjusted EBITDA expected between $35-60 million.
Alignment Healthcare (ALHC) ha riportato una forte crescita nei risultati del quarto trimestre e dell'intero anno 2024. L'adesione al piano sanitario ha raggiunto 189.100 al 31 dicembre 2024, segnando un 58,6% di aumento rispetto all'anno precedente. L'azienda ha raggiunto il suo primo anno completo di EBITDA rettificato positivo come società pubblica.
I punti salienti del Q4 2024 includono un fatturato totale di 701,2 milioni di dollari, in aumento del 50,7% rispetto all'anno precedente, con un rapporto di benefici medici dell'87,5%. L'azienda ha registrato un EBITDA rettificato di 1,4 milioni di dollari, nonostante una perdita netta di $(31,1) milioni.
Per l'intero anno 2024, il fatturato totale ha raggiunto 2.703,6 milioni di dollari, aumentando del 48,3% rispetto all'anno precedente, con un EBITDA rettificato di 1,3 milioni di dollari e una perdita netta di $(128,1) milioni. Guardando al futuro, ALHC ha fornito una guida sui ricavi per il 2025 di 3,72-3,78 miliardi di dollari, prevedendo una crescita del 37,6-39,6%, con un EBITDA rettificato previsto tra 35-60 milioni di dollari.
Alignment Healthcare (ALHC) reportó un fuerte crecimiento en sus resultados del cuarto trimestre y del año completo 2024. La membresía del plan de salud alcanzó 189,100 a partir del 31 de diciembre de 2024, marcando un 58.6% de aumento interanual. La compañía logró su primer año completo de EBITDA ajustado positivo como empresa pública.
Los aspectos destacados del Q4 2024 incluyen ingresos totales de $701.2 millones, un aumento del 50.7% interanual, con una relación de beneficios médicos del 87.5%. La compañía registró un EBITDA ajustado de $1.4 millones, a pesar de una pérdida neta de $(31.1) millones.
Para el año completo 2024, los ingresos totales alcanzaron $2,703.6 millones, aumentando un 48.3% interanual, con un EBITDA ajustado de $1.3 millones y una pérdida neta de $(128.1) millones. Mirando hacia adelante, ALHC proporcionó una guía de ingresos para 2025 de $3.72-3.78 mil millones, proyectando un crecimiento del 37.6-39.6%, con un EBITDA ajustado esperado entre $35-60 millones.
Alignment Healthcare (ALHC)는 2024년 4분기 및 전체 연도 결과에서 강력한 성장을 보고했습니다. 건강 보험 가입자는 2024년 12월 31일 기준 189,100명에 도달하여 전년 대비 58.6% 증가했습니다. 이 회사는 상장 기업으로서 긍정적인 조정 EBITDA의 첫 해를 달성했습니다.
2024년 4분기 주요 내용은 총 수익이 $701.2 백만으로 전년 대비 50.7% 증가했으며, 의료 혜택 비율은 87.5%입니다. 이 회사는 $(31.1) 백만의 순손실에도 불구하고 $1.4 백만의 조정 EBITDA를 기록했습니다.
2024년 전체 연도 동안 총 수익은 $2,703.6 백만에 도달하여 전년 대비 48.3% 증가했으며, 조정 EBITDA는 $1.3 백만, 순손실은 $(128.1) 백만이었습니다. 앞으로 ALHC는 2025년 수익 가이드를 $3.72-3.78억으로 제공하며, 37.6-39.6%의 성장을 예상하고 있으며, 조정 EBITDA는 $35-60 백만 사이로 예상됩니다.
Alignment Healthcare (ALHC) a annoncé une forte croissance dans ses résultats du quatrième trimestre et de l'année entière 2024. L'adhésion au plan de santé a atteint 189 100 au 31 décembre 2024, marquant une augmentation de 58,6% d'une année sur l'autre. L'entreprise a réalisé sa première année complète d'EBITDA ajusté positif en tant qu'entreprise publique.
Les points forts du T4 2024 incluent un chiffre d'affaires total de 701,2 millions de dollars, en hausse de 50,7% d'une année sur l'autre, avec un ratio de prestations médicales de 87,5%. L'entreprise a enregistré un EBITDA ajusté de 1,4 million de dollars, malgré une perte nette de $(31,1) millions.
Pour l'année entière 2024, le chiffre d'affaires total a atteint 2 703,6 millions de dollars, augmentant de 48,3% d'une année sur l'autre, avec un EBITDA ajusté de 1,3 million de dollars et une perte nette de $(128,1) millions. En regardant vers l'avenir, ALHC a fourni des prévisions de revenus pour 2025 de 3,72 à 3,78 milliards de dollars, projetant une croissance de 37,6 à 39,6%, avec un EBITDA ajusté attendu entre 35 et 60 millions de dollars.
Alignment Healthcare (ALHC) berichtete von einem starken Wachstum in seinen Ergebnissen für das vierte Quartal und das gesamte Jahr 2024. Die Mitgliedschaft im Gesundheitsplan erreichte 189.100 zum 31. Dezember 2024, was einem 58,6% Anstieg im Jahresvergleich entspricht. Das Unternehmen erzielte im ersten vollen Jahr als börsennotiertes Unternehmen ein positives angepasstes EBITDA.
Die Highlights des Q4 2024 umfassen einen Gesamtumsatz von $701,2 Millionen, was einem Anstieg von 50,7% im Jahresvergleich entspricht, mit einem Verhältnis der medizinischen Leistungen von 87,5%. Das Unternehmen verzeichnete ein angepasstes EBITDA von $1,4 Millionen, trotz eines Nettoverlusts von $(31,1) Millionen.
Für das gesamte Jahr 2024 erreichte der Gesamtumsatz $2.703,6 Millionen, ein Anstieg von 48,3% im Jahresvergleich, mit einem angepassten EBITDA von $1,3 Millionen und einem Nettoverlust von $(128,1) Millionen. Ausblickend gab ALHC eine Umsatzprognose für 2025 von $3,72-3,78 Milliarden bekannt, mit einer Wachstumsprognose von 37,6-39,6%, und einem angepassten EBITDA, das zwischen $35-60 Millionen erwartet wird.
- First-time positive adjusted EBITDA achievement as public company
- 58.6% YoY membership growth to 189,100
- 50.7% YoY revenue growth to $701.2M in Q4
- Strong 2025 guidance: 37.6-39.6% revenue growth
- Favorable medical benefits ratio at 87.5%
- Q4 net loss of $31.1M
- Full-year net loss of $128.1M
- Operating loss of $22.5M in Q4
- Full-year operating loss of $101.6M
Insights
Alignment Healthcare's Q4 and full-year 2024 results showcase a company bucking industry trends in Medicare Advantage, with 58.6% year-over-year membership growth to 189,100 members and full-year revenue of
What's particularly notable is Alignment's success amid industry-wide Medicare Advantage challenges. While competitors have reduced benefits or exited markets, Alignment's strategy of "providing more care, not less" has fueled growth. Their medical benefits ratio of
The 2025 guidance signals a step-change in financial performance, with projected adjusted EBITDA of
The company's "industry-leading stars performance" mentioned by the CEO is particularly significant for revenue, as higher Medicare Star ratings directly impact reimbursement rates. This creates a virtuous cycle: better care leads to higher ratings, which increases revenue per member, enabling further investments in care quality.
Despite these positive trends, investors should note the substantial
Alignment Healthcare's 2024 results validate their contrarian Medicare Advantage strategy in a market where most insurers are restricting benefits or exiting entirely. Their
The company's ability to achieve an
Their projected leap from
Alignment's "industry-leading stars performance" is a critical competitive advantage in Medicare Advantage. Plans with 4+ star ratings receive approximately
The company's approach represents a potential inflection point for Medicare Advantage, demonstrating that technology-enabled, high-touch care models can achieve the elusive goal of simultaneously improving quality, member satisfaction, and financial performance. However, the
- Reports 189,100 health plan members as of Dec. 31, 2024, up
58.6% year-over-year, beating year-end expectations - Achieves first full year of positive adjusted EBITDA as a public company, driven by operating leverage and strong medical benefits ratio performance
- Raises midpoint of 2025 health plan membership guidance by 2,000 to reflect strong open enrollment period momentum
- Introduces 2025 revenue guidance of
$3.72 billion to$3.78 billion , representing37.6% -39.6% growth year-over-year, and adjusted EBITDA of$35 million to$60 million
ORANGE, Calif., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), today reported financial results for its fourth quarter and full year ended Dec. 31, 2024.
“2024 was a milestone year that proved health plans can win by providing more care, not less,” said John Kao, founder and CEO. “By using our clinical resources and technology to improve outcomes and manage medical expenses, we grew while others pulled back. With strong momentum from the annual enrollment period and industry-leading stars performance, we enter 2025 positioned for success and confident that we are fulfilling our vision for Medicare Advantage done right.”
Fourth Quarter 2024 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended Dec. 31, 2023.
- Health plan membership at the end of the quarter was approximately 189,100, up
58.6% year over year - Total revenue was
$701.2 million , up50.7% year over year. Revenue excluding ACO REACH was$700.7 million , up61.4% year over year - Adjusted gross profit was
$87.9 million and loss from operations was$(22.5) million - Adjusted gross profit excludes depreciation and amortization of
$6.8 million and selling, general, and administrative expenses of$102.1 million (which includes$14.7 million of equity-based compensation). Adjusted gross profit also excludes an additional$1.5 million of equity-based compensation recorded within medical expenses - Medical benefits ratio based on adjusted gross profit was
87.5%
- Adjusted gross profit excludes depreciation and amortization of
- Adjusted EBITDA was
$1.4 million and net loss was$(31.1) million
Full Year 2024 Financial Highlights
All comparisons, unless otherwise noted, are to the twelve months ended Dec. 31, 2023.
- Total revenue was
$2,703.6 million , up48.3% year over year. Revenue excluding ACO REACH was$2,702.6 million , up59.0% year over year - Adjusted gross profit was
$302.6 million and loss from operations was$(101.6) million - Adjusted gross profit excludes depreciation and amortization of
$27.1 million and selling, general, and administrative expenses of$371.4 million (which includes$66.2 million of equity-based compensation). Adjusted gross profit also excludes$0.8 of restructuring costs and an additional$4.9 million of equity-based compensation recorded within medical expenses - Medical benefits ratio based on adjusted gross profit was
88.8%
- Adjusted gross profit excludes depreciation and amortization of
- Adjusted EBITDA was
$1.3 million and net loss was$(128.1) million
Adjusted Gross Profit is reconciled as follows:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Loss from operations | $ | (22,545 | ) | $ | (41,913 | ) | $ | (101,555 | ) | $ | (127,817 | ) | |||
| Add back: | |||||||||||||||
| Equity-based compensation (medical expenses) | 1,546 | 1,517 | 4,930 | 7,541 | |||||||||||
| Depreciation (medical expenses) | 46 | 60 | 190 | 254 | |||||||||||
| Restructuring costs (medical expenses) (1) | — | — | 796 | — | |||||||||||
| Depreciation and amortization (2) | 6,762 | 5,801 | 26,872 | 21,414 | |||||||||||
| Selling, general, and administrative expenses | 102,128 | 83,737 | 371,374 | 307,433 | |||||||||||
| Total add back | 110,482 | 91,115 | 404,162 | 336,642 | |||||||||||
| Adjusted gross profit | $ | 87,937 | $ | 49,202 | $ | 302,607 | $ | 208,825 | |||||||
(1) Represents severance and related costs incurred as part of a corporate restructuring, that took place during 2024, designed to streamline our organizational structure and drive operational efficiencies
(2) Includes
Adjusted EBITDA is reconciled as follows:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (dollars in thousands) | |||||||||||||||
| Net loss | $ | (31,064 | ) | $ | (47,231 | ) | $ | (128,071 | ) | $ | (148,173 | ) | |||
| Less: Net loss attributable to noncontrolling interest | (27 | ) | 22 | 36 | 156 | ||||||||||
| Adjustments: | |||||||||||||||
| Interest expense | 5,492 | 5,484 | 23,547 | 21,231 | |||||||||||
| Depreciation and amortization (1) | 6,808 | 5,861 | 27,062 | 21,668 | |||||||||||
| Income tax expense (benefit) | 7 | (24 | ) | 21 | (22 | ) | |||||||||
| Equity-based compensation (2) | 16,236 | 15,652 | 71,132 | 66,835 | |||||||||||
| Acquisition expenses (3) | — | 216 | 26 | 977 | |||||||||||
| Litigation costs (4) | 892 | 348 | 2,069 | 2,298 | |||||||||||
| (Gain) loss on ROU assets (5) | — | — | 143 | (289 | ) | ||||||||||
| Gain on sale of property and equipment | (1 | ) | — | (9 | ) | — | |||||||||
| Restructuring costs (6) | — | — | 2,363 | — | |||||||||||
| Loss on extinguishment of debt | 3,020 | — | 3,020 | — | |||||||||||
| Adjusted EBITDA | $ | 1,363 | $ | (19,672 | ) | $ | 1,339 | $ | (35,319 | ) | |||||
(1) Includes
(2) Represents equity-based compensation related to grants made in the applicable year, as well as equity-based compensation related to the timing of the IPO, which includes previously issued stock appreciation rights ("SARs") liability awards, modifications related to transaction vesting units, and grants made in conjunction with the IPO
(3) Represents acquisition-related fees, such as legal and advisory fees, that are non-capitalizable
(4) Represents certain litigation costs considered outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy
(5) Represents gains or losses related to ROU assets that were terminated or subleased in the respective period
(6) Represents severance and related costs incurred as part of a corporate restructuring, that took place during 2024, designed to streamline our organizational structure and drive operational efficiencies
Outlook for First Quarter and Fiscal Year 2025
| Three Months Ending March 31, 2025 | Twelve Months Ending December 31, 2025 | |||
| $ Millions | Low | High | Low | High |
| Health Plan Membership | 211,000 | 215,000 | 227,000 | 233,000 |
| Revenue | ||||
| Adjusted Gross Profit(1) | ||||
| Adjusted EBITDA(2) | ||||
_______________________
- Adjusted gross profit is a non-GAAP financial measure that is presented as supplemental disclosure, that we define as loss from operations before depreciation and amortization, clinical equity-based compensation expense, clinical restructuring costs, and selling, general, and administrative expenses. We cannot reconcile our estimated ranges for adjusted gross profit to loss from operations, the most directly comparable GAAP measure, and cannot provide estimated ranges for loss from operations, without unreasonable efforts because of the uncertainty around certain items that may impact loss from operations, including equity-based compensation expense and depreciation and amortization, that are not within our control or cannot be reasonably predicted.
- Adjusted EBITDA is a non-GAAP financial measure that is presented as supplemental disclosure, that we define as net loss before interest expense, income taxes, depreciation and amortization expense, acquisition expenses, certain litigation costs, gains or losses on right of use ("ROU") assets, gains or losses on sale of property and equipment, restructuring costs, equity-based compensation expense and loss on extinguishment of debt. We cannot reconcile our estimated ranges for Adjusted EBITDA to net loss, the most directly comparable GAAP measure, and cannot provide estimated ranges for net loss, without unreasonable efforts because of the uncertainty around certain items that may impact net loss, including equity-based compensation expense and depreciation and amortization, that are not within our control or cannot be reasonably predicted.
Conference Call Details
The company will host a conference call at 5 p.m. EST today to discuss these results and management’s outlook for future financial and operational performance. A live audio webcast will be available online at https://ir.alignmenthealth.com/. At the start of the conference call, participants may access the webcast at the following link: https://edge.media-server.com/mmc/p/oawc6g57. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web links, and will remain available for approximately 12 months.
About Alignment Health
Alignment Health is championing a new path in senior care that empowers members to age well and live their most vibrant lives. A consumer brand name of Alignment Healthcare (NASDAQ: ALHC), Alignment Health’s mission-focused team makes high-quality, low-cost care a reality for its Medicare Advantage members every day. Based in California, the company partners with nationally recognized and trusted local providers to deliver coordinated care, powered by its customized care model, 24/7 concierge care team and purpose-built technology, AVA®. As it expands its offerings and grows its national footprint, Alignment upholds its core values of leading with a serving heart and putting the senior first. For more information, visit www.alignmenthealth.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding our future growth and our financial outlook for the first quarter ending March 31, 2025 and year ending December 31, 2025. Forward-looking statements are subject to risks and uncertainties and are based on assumptions that may prove to be inaccurate, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to attract new members and enter new markets, including the need for certain governmental approvals; our ability to maintain a high rating for our plans on the Five Star Quality Rating System; our ability to develop and maintain satisfactory relationships with care providers that service our members; risks associated with being a government contractor; changes in laws and regulations applicable to our business model; risks related to our indebtedness; changes in market or industry conditions and receptivity to our technology and services; results of litigation or a security incident; the impact of shortages of qualified personnel and related increases in our labor costs. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our Annual Report on Form 10-K for the year ended December 31, 2024, and the other periodic reports we file with the SEC. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update or revise this information unless required by law.
| Consolidated Balance Sheets (in thousands, except par value and share amounts) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 432,859 | $ | 202,904 | |||
| Accounts receivable (less allowance for credit losses of | 153,904 | 119,749 | |||||
| Investments - current | 37,791 | 115,914 | |||||
| Prepaid expenses and other current assets | 37,084 | 44,970 | |||||
| Total current assets | 661,638 | 483,537 | |||||
| Property and equipment, net | 67,139 | 51,901 | |||||
| Right of use asset, net | 7,818 | 9,959 | |||||
| Goodwill | 34,826 | 34,826 | |||||
| Intangible Assets, net | 4,550 | 5,252 | |||||
| Other assets | 6,092 | 6,405 | |||||
| Total assets | $ | 782,063 | $ | 591,880 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current Liabilities: | |||||||
| Medical expenses payable | $ | 289,788 | $ | 205,399 | |||
| Accounts payable and accrued expenses | 22,126 | 23,511 | |||||
| Accrued compensation | 39,931 | 34,112 | |||||
| Total current liabilities | 351,845 | 263,022 | |||||
| Long-term debt, net of debt issuance costs | 321,428 | 161,813 | |||||
| Long-term portion of lease liabilities | 7,835 | 8,974 | |||||
| Total liabilities | 681,108 | 433,809 | |||||
| Commitments and Contingencies | |||||||
| Stockholders' Equity: | |||||||
| Preferred stock, $.001 par value; 100,000,000 shares authorized as of December 31, 2024 and 2023, respectively; no shares issued and outstanding as of December 31, 2024 and 2023 | — | — | |||||
| Common stock, $.001 par value; 1,000,000,000 shares authorized as of December 31, 2024 and December 31, 2023; 191,778,639 and 188,951,643 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | 192 | 189 | |||||
| Additional paid-in capital | 1,107,952 | 1,037,015 | |||||
| Accumulated deficit | (1,008,293 | ) | (880,258 | ) | |||
| Total Alignment Healthcare, Inc. stockholders' equity | 99,851 | 156,946 | |||||
| Noncontrolling interest | 1,104 | 1,125 | |||||
| Total stockholders' equity | 100,955 | 158,071 | |||||
| Total liabilities and stockholders' equity | $ | 782,063 | $ | 591,880 | |||
| Consolidated Statements of Operations (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Earned premiums | $ | 691,785 | $ | 459,009 | $ | 2,671,931 | $ | 1,800,933 | |||||||
| Other | 9,456 | 6,378 | 31,630 | 22,697 | |||||||||||
| Total revenues | 701,241 | 465,387 | 2,703,561 | 1,823,630 | |||||||||||
| Expenses: | |||||||||||||||
| Medical expenses | 614,896 | 417,762 | 2,406,870 | 1,622,600 | |||||||||||
| Selling, general, and administrative expenses | 102,128 | 83,737 | 371,374 | 307,433 | |||||||||||
| Depreciation and amortization | 6,762 | 5,801 | 26,872 | 21,414 | |||||||||||
| Total expenses | 723,786 | 507,300 | 2,805,116 | 1,951,447 | |||||||||||
| Loss from operations | (22,545 | ) | (41,913 | ) | (101,555 | ) | (127,817 | ) | |||||||
| Other expenses: | |||||||||||||||
| Interest expense | 5,492 | 5,484 | 23,547 | 21,231 | |||||||||||
| Other (income) expenses, net | — | (142 | ) | (72 | ) | (853 | ) | ||||||||
| Loss on extinguishment of debt | 3,020 | — | 3,020 | — | |||||||||||
| Total other expenses | 8,512 | 5,342 | 26,495 | 20,378 | |||||||||||
| Loss before income taxes | (31,057 | ) | (47,255 | ) | (128,050 | ) | (148,195 | ) | |||||||
| Provision for income tax expense (benefit) | 7 | (24 | ) | 21 | (22 | ) | |||||||||
| Net loss | $ | (31,064 | ) | $ | (47,231 | ) | $ | (128,071 | ) | $ | (148,173 | ) | |||
| Less: Net loss attributable to noncontrolling interest | (27 | ) | 22 | 36 | 156 | ||||||||||
| Net loss attributable to Alignment Healthcare, Inc. | $ | (31,091 | ) | $ | (47,209 | ) | $ | (128,035 | ) | $ | (148,017 | ) | |||
| Total weighted-average common shares outstanding - basic and diluted | 191,897,164 | 188,328,517 | 190,793,552 | 186,214,784 | |||||||||||
| Net loss per share attributable to Alignment Healthcare, Inc. - basic and diluted | $ | (0.16 | ) | $ | (0.25 | ) | $ | (0.67 | ) | $ | (0.79 | ) | |||
| Consolidated Statements of Cash Flows (in thousands) | |||||||||||
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Operating Activities: | |||||||||||
| Net loss | $ | (128,071 | ) | $ | (148,173 | ) | $ | (149,639 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
| Provision for credit loss | 123 | 91 | 150 | ||||||||
| (Gain) loss on right of use assets | 143 | (289 | ) | 510 | |||||||
| Gain on sale of property and equipment | (9 | ) | — | — | |||||||
| Depreciation and amortization | 27,062 | 21,668 | 17,486 | ||||||||
| Amortization-debt issuance costs | 1,293 | 1,254 | 1,850 | ||||||||
| Amortization-investment discount | (2,579 | ) | (4,917 | ) | — | ||||||
| Amortization of payment-in-kind interest | — | — | 2,943 | ||||||||
| Loss on disposal of property and equipment | — | — | 101 | ||||||||
| Equity-based compensation | 71,132 | 66,835 | 81,718 | ||||||||
| Non-cash lease expense | 1,764 | 2,318 | 2,811 | ||||||||
| Loss on extinguishment of debt | 3,020 | — | 2,196 | ||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (34,278 | ) | (26,950 | ) | (34,377 | ) | |||||
| Prepaid expenses and other current assets | 7,887 | (2,863 | ) | (14,356 | ) | ||||||
| Other assets | 60 | (142 | ) | (86 | ) | ||||||
| Medical expenses payable | 84,389 | 35,264 | 44,250 | ||||||||
| Accounts payable and accrued expenses | (1,460 | ) | (6,347 | ) | 13,743 | ||||||
| Accrued compensation | 5,819 | 6,574 | 3,609 | ||||||||
| Lease liabilities | (1,525 | ) | (3,510 | ) | (4,214 | ) | |||||
| Payment-in-kind interest | — | — | (14,122 | ) | |||||||
| Net cash provided by (used in) operating activities | 34,770 | (59,187 | ) | (45,427 | ) | ||||||
| Investing Activities: | |||||||||||
| Purchase of business, net of cash received | — | — | (4,043 | ) | |||||||
| Purchase of investments | (82,200 | ) | (379,058 | ) | (2,825 | ) | |||||
| Sale of property and equipment | 14 | — | — | ||||||||
| Maturities of investments | 162,795 | 267,790 | 2,425 | ||||||||
| Acquisition of property and equipment | (41,418 | ) | (35,995 | ) | (23,774 | ) | |||||
| Net cash provided by (used in) investing activities | 39,191 | (147,263 | ) | (28,217 | ) | ||||||
| Financing Activities: | |||||||||||
| Repurchase of noncontrolling interest | — | — | (100 | ) | |||||||
| Proceeds from long-term debt | 380,000 | — | 165,000 | ||||||||
| Debt issuance costs | (8,792 | ) | — | (5,196 | ) | ||||||
| Repayment of long-term debt | (215,000 | ) | — | (143,179 | ) | ||||||
| Payment of employment taxes related to release of restricted stock | (350 | ) | — | — | |||||||
| Proceeds from exercise of stock options | 155 | — | — | ||||||||
| Contributions from noncontrolling interest holders | 15 | 105 | 68 | ||||||||
| Net cash provided by financing activities | 156,028 | 105 | 16,593 | ||||||||
| Net increase (decrease) in cash | 229,989 | (206,345 | ) | (57,051 | ) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 204,954 | 411,299 | 468,350 | ||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 434,943 | $ | 204,954 | $ | 411,299 | |||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid for interest | $ | 22,157 | $ | 19,165 | $ | 22,447 | |||||
| Supplemental non-cash investing and financing activities: | |||||||||||
| Acquisition of property in accounts payable | $ | 70 | $ | 59 | $ | 47 | |||||
| Purchase of business in accounts payable | $ | — | $ | — | $ | 505 | |||||
| Debt issuance costs in accounts payable | $ | 512 | $ | — | $ | — | |||||
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the total above:
| December 31, 2024 | December 31, 2023 | December 31, 2022 | |||||||||
| Cash and cash equivalents | $ | 432,859 | $ | 202,904 | $ | 409,549 | |||||
| Restricted cash in other assets | 2,084 | 2,050 | 1,750 | ||||||||
| Total | $ | 434,943 | $ | 204,954 | $ | 411,299 | |||||
Non-GAAP Financial Measures
Certain of these financial measures are considered “non-GAAP” financial measures within the meaning of Item 10 of Regulation S-K promulgated by the SEC. We believe that non-GAAP financial measures provide an additional way of viewing aspects of our operations that, when viewed with the GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. These non-GAAP financial measures are also used by our management to evaluate financial results and to plan and forecast future periods. However, non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP measures used by other companies, including our competitors. To supplement our consolidated financial statements presented on a GAAP basis, we disclose the following non-GAAP measures: Medical Benefits Ratio, Adjusted EBITDA and Adjusted Gross Profit as these are performance measures that our management uses to assess our operating performance. Because these measures facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes and in evaluating acquisition opportunities.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure that we define as net loss before interest expense, income taxes, depreciation and amortization expense, acquisition expenses, certain litigation costs, gains or losses on right of use ("ROU") assets, gains or losses on sale of property and equipment, restructuring costs, equity-based compensation expense and loss on extinguishment of debt.
Adjusted EBITDA should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA in lieu of net loss, which is the most directly comparable financial measure calculated in accordance with GAAP.
Our use of the term Adjusted EBITDA may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies.
Medical Benefits Ratio (MBR)
We calculate our MBR by dividing total medical expenses, excluding depreciation, equity-based compensation and clinical restructuring costs, by total revenues in a given period.
Adjusted Gross Profit
Adjusted gross profit is a non-GAAP financial measure that we define as loss from operations before depreciation and amortization, clinical equity-based compensation expense, clinical restructuring costs and selling, general, and administrative expenses.
Adjusted gross profit should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of adjusted gross profit in lieu of loss from operations, which is the most directly comparable financial measure calculated in accordance with GAAP.
Our use of the term adjusted gross profit may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies.
Investor Contact
Harrison Zhuo
hzhuo@ahcusa.com
Media Contact
Priya Shah
mPR, Inc. for Alignment Health
alignment@mpublicrelations.com
FAQ
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