Alignment Healthcare Stories Fourth Quarter and Full-12 months 2021 Monetary Outcomes

Alignment Healthcare USA, LLC

ORANGE, Calif., March 03, 2022 (GLOBE NEWSWIRE) — Alignment Healthcare, Inc. (“Alignment Healthcare” or the “Firm”) (Nasdaq: ALHC), a tech-enabled Medicare Benefit firm, at present reported monetary outcomes for its fourth quarter and full 12 months ended Dec. 31, 2021.

“Our robust fourth-quarter outcomes throughout crucial KPIs punctuated a stable first 12 months for Alignment Healthcare within the public markets. Our success showcased the ability of our medical mannequin and our proprietary AVA® platform to ship regular development and an efficient medical advantages ratio,” mentioned John Kao, founder and CEO, Alignment Healthcare.

“In 2022, we’ll proceed to spend money on new markets and the replicability and scalability of our differentiated mannequin,” Kao continued. “We’ve constructed a stable basis for continued success, and I’m optimistic about our future alternatives and potential for development. This basis will allow us to realize our imaginative and prescient of fixing well being care one individual at a time.”

Fourth Quarter 2021 Monetary Highlights
All comparisons, except in any other case famous, are to the three months ended Dec. 31, 2020.

  • Well being plan membership as of Dec. 31, 2021, was roughly 86,100, up 26.0% 12 months over 12 months

  • Whole income was $298.3 million, up 23.0% 12 months over 12 months

  • Well being plan premium income of $284.0 million represented 28.3% development 12 months over 12 months

  • Adjusted gross revenue was $42.7 million and loss from operations was ($43.5) million

    • Adjusted gross revenue excludes depreciation and amortization of $4.1 million and promoting, common, and administrative bills of $78.1 million (which incorporates $24.8 million of equity-based compensation). Adjusted gross revenue additionally excludes an extra $4.0 million of equity-based compensation recorded inside medical bills

    • Medical advantages ratio primarily based on adjusted gross revenue was 85.7%

  • Adjusted EBITDA was ($8.9) million and internet loss was ($47.8) million

Full 12 months 2021 Monetary Highlights
All comparisons, except in any other case famous, are to the twelve months ended Dec. 31, 2020.

  • Whole income was $1,167.8 million, up 21.7% 12 months over 12 months

  • Well being plan premium income of $1,120.9 million represented 28.4% development 12 months over 12 months

  • Adjusted gross revenue was $144.4 million and loss from operations was ($178.1) million

    • Adjusted gross revenue excludes depreciation and amortization of $16.1 million and promoting, common, and administrative bills of $291.0 million (which incorporates $106.6 million of equity-based compensation). Adjusted gross revenue additionally excludes an extra $15.4 million of equity-based compensation recorded inside medical bills

    • Medical advantages ratio primarily based on adjusted gross revenue was 87.6%

  • Adjusted EBITDA was ($33.1) million and internet loss was ($195.3) million

  • As of Dec. 31, 2021, whole money was $466.6 million, and debt was $154.1 million (excluding unamortized debt issuance prices)

Adjusted Gross Revenue is reconciled as follows:

Three Months Ended
December 31,

12 months ended
December 31,

2021

2020

2021

2020

({dollars} in hundreds)

Loss from operations

$

(43,466

)

$

(27,795

)

$

(178,072

)

$

(5,263

)

Add again:

Fairness-based compensation (medical bills)

3,960

15,418

Depreciation (medical bills)

61

86

220

366

Depreciation and amortization

4,088

4,071

15,813

15,095

Promoting, common, and administrative bills

78,081

51,119

290,991

156,398

Whole add again

86,190

55,276

322,442

171,859

Adjusted gross revenue

$

42,724

$

27,481

$

144,370

$

166,596

Adjusted gross revenue %

14.3%

11.3%

12.4%

17.4%

Medical profit ratio

85.7%

88.7%

87.6%

82.6%

Adjusted EBITDA is reconciled as follows:

Three Months Ended
December 31,

12 months ended
December 31,

2021

2020

2021

2020

({dollars} in hundreds)

Internet loss

$

(47,834

)

$

(32,065

)

$

(195,286

)

$

(22,926

)

Add again:

Curiosity expense

4,452

4,308

17,443

16,931

Depreciation and amortization

4,149

4,157

16,033

15,461

EBITDA

(39,233

)

(23,600

)

(161,810

)

9,466

Fairness-based compensation(1)

28,814

1,144

121,999

2,124

Reorganization and transaction-related bills(2)

527

262

4,585

262

Acquisition bills(3)

1,020

2,110

Adjusted EBITDA

$

(8,872

)

$

(22,194

)

$

(33,116

)

$

11,852

(1)

2021 represents equity-based compensation associated to the timing of the Firm’s preliminary public providing (“IPO”), together with the beforehand issued inventory appreciation rights legal responsibility awards, modifications associated to transaction vesting items, and new grants made along with the IPO. 2020 represents equity-based compensation associated to sure Class B and Class C membership items issued by Alignment Healthcare Holdings, LLC previous to the pre-IPO company reorganization (the “Reorganization”) described in our Annual Report on Kind 10-Okay filed with the Securities and Alternate Fee (“SEC”) on March 3, 2022 (the “Kind 10-Okay”).

(2)

Represents authorized, skilled, accounting and different advisory charges associated to the Reorganization, the IPO and our November 2021 secondary providing which can be thought-about non-recurring and non-capitalizable.

(3)

Represents acquisition-related charges, similar to authorized and advisory charges, which can be non-capitalizable.

Outlook for First Quarter and Fiscal 12 months 2022

Three Months Ending
March 31, 2022

Twelve Months Ending
December 31, 2022

$ Thousands and thousands

Low

Excessive

Low

Excessive

Well being Plan Membership

93,700

93,900

97,300

99,000

Income

$330

$335

$1,330

$1,345

Adjusted Gross Revenue1

$32

$35

$163

$173

Adjusted EBITDA2

($17)

($13)

($47)

($39)

_______________________

  1. Adjusted gross revenue is a non-GAAP monetary measure that’s introduced as supplemental disclosure, that we outline as revenues much less medical bills earlier than depreciation and amortization and equity-based compensation expense. We can not reconcile our estimated ranges for adjusted gross revenue to loss from operations, essentially the most immediately comparable GAAP measure, and can’t present estimated ranges for loss from operations, with out unreasonable efforts due to the uncertainty round sure objects that will impression loss from operations, together with equity-based compensation expense and depreciation and amortization, that aren’t inside our management or can’t be fairly predicted.

  2. Adjusted EBITDA is a non-GAAP monetary measure that’s introduced as supplemental disclosure, that we outline as internet earnings (loss) earlier than curiosity expense, earnings taxes, depreciation and amortization expense, reorganization and transaction-related bills and equity-based compensation expense. We can not reconcile our estimated ranges for Adjusted EBITDA to internet loss, essentially the most immediately comparable GAAP measure, and can’t present estimated ranges for internet loss, with out unreasonable efforts due to the uncertainty round sure objects that will impression internet loss, together with equity-based compensation expense and depreciation and amortization, that aren’t inside our management or can’t be fairly predicted.

Convention Name Particulars
The Firm will host a convention name at 5:00 p.m. EST at present to debate these outcomes and administration’s outlook for future monetary and operational efficiency. The convention name may be accessed by dialing (833) 607-1669 for U.S. individuals, or (914) 987-7881 for worldwide individuals, and referencing participant code 7365097. A reside audio webcast, together with this earnings launch and monetary tables, shall be out there on-line at https://ir.alignmenthealthcare.com/. A replay of the decision shall be out there through webcast for on-demand listening shortly after the completion of the decision, on the similar net hyperlink, and can stay out there for roughly 12 months.

2022 Annual Assembly of Stockholders

The Firm additionally introduced that its 2022 Annual Assembly of Stockholders (the “2022 Annual Assembly”) could be held as a digital assembly on June 14, 2022. Holders of file of the Firm’s widespread inventory as of the shut of enterprise on April 22, 2022, shall be entitled to vote and attend the 2022 Annual Assembly.

As a result of the date of the 2022 Annual Assembly is greater than 30 days after the anniversary of the IPO, the Firm can also be offering discover of the deadline for stockholders to submit any discover of enterprise or nominations with respect to the 2022 Annual Assembly and to incorporate any proposals within the Firm’s proxy supplies associated to the 2022 Annual Assembly. To be well timed, pursuant to the Firm’s Amended and Restated Bylaws (“Bylaws”) and Rule 14a-8 of the Securities Alternate Act of 1934, as amended (“Rule 14a-8”), any discover of enterprise or nominations with respect to the 2022 Annual Assembly have to be obtained by no later than 5:00 p.m. PDT on Wednesday, March 16, 2022. In accordance with the Bylaws, such date is the later of (i) the tenth day following this announcement and (ii) the date that’s 90 days previous to the date of the 2022 Annual Assembly, and it additionally represents a date which the Firm considers to be an inexpensive time earlier than the Firm begins to print and ship its proxy supplies pursuant to Rule 14a-8. Any proposals and nominations should adjust to the precise necessities and procedures set forth in Rule 14a-8 and the Bylaws, in addition to adjust to relevant regulation.

All notices of intention to current director nominations or different enterprise proposals on the 2022 Annual Assembly, whether or not or not meant to be included within the proxy supplies, must be addressed to Company Secretary, Alignment Healthcare, Inc., 1100 W. City & Nation Rd., Suite 1600, Orange, CA 92868.

The Firm will present extra particulars relating to the precise time, location and issues to be voted on on the 2022 Annual Assembly within the Firm’s proxy assertion for such assembly.

About Alignment Healthcare

Alignment Healthcare is a consumer-centric platform delivering custom-made well being care in the US to seniors and people who want it most, the chronically unwell and frail, by its Medicare Benefit plans. The corporate supplies companions and sufferers with custom-made care and repair the place they want it and after they want it, together with medical coordination, danger administration and expertise facilitation. Alignment Healthcare provides well being plan choices by Alignment Well being Plan, and likewise companions with choose well being plans to assist ship higher advantages at decrease prices.

Ahead Trying Statements

This launch incorporates forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended, and the Personal Securities Litigation Reform Act of 1995, as amended. These forward-looking statements embody statements relating to our future development and our monetary outlook for the primary quarter ending March 31, 2022, and 12 months ending Dec. 31, 2022. Ahead-looking statements are topic to dangers and uncertainties and are primarily based on assumptions that will show to be inaccurate, which might trigger precise outcomes to vary materially from these anticipated or implied by the forward-looking statements. Precise outcomes might differ materially from the outcomes predicted, and reported outcomes shouldn’t be thought-about as a sign of future efficiency. Necessary dangers and uncertainties that would trigger our precise outcomes and monetary situation to vary materially from these indicated within the forward-looking statements embody, amongst others, the next: our potential to draw new members and enter new markets; our potential to take care of a excessive ranking for our plans on the 5 Star High quality Ranking System; dangers related to being a authorities contractor; adjustments in legal guidelines and rules relevant to our enterprise mannequin; adjustments in market or trade situations and receptivity to our expertise and companies; outcomes of litigation or a safety incident; the impression of shortages of certified personnel and associated will increase in our labor prices; and the impression of COVID-19 on our enterprise and outcomes of operation. For an in depth dialogue of the chance components that would have an effect on our precise outcomes, please consult with the chance components recognized in our Annual Report on Kind 10-Okay for the 12 months ended Dec. 31, 2021, and the opposite periodic studies we file with the SEC. All info supplied on this launch and within the attachments is as of the date hereof, and we undertake no obligation to replace or revise this info except required by regulation.

Consolidated Steadiness Sheets
(in hundreds, besides par worth and share quantities)

December 31,
2021

December 31,
2020
(1)

Belongings

Present Belongings:

Money

$

466,600

$

207,311

Accounts receivable (much less allowance for credit score losses of $111 and $0 at December 31, 2021 and 2020, respectively)

58,512

40,140

Pay as you go bills and different present property

27,747

17,225

Whole present property

552,859

264,676

Property and gear, internet

30,358

27,145

Proper of use asset, internet

7,853

9,888

Goodwill and intangible property, internet

35,116

34,645

Different property

4,709

2,148

Whole property

$

630,895

$

338,502

Liabilities and Stockholders’ Fairness

Present Liabilities:

Medical bills payable

$

125,886

$

112,605

Accounts payable and accrued bills

17,431

15,675

Accrued compensation

23,928

25,172

Whole present liabilities

167,245

153,452

Lengthy-term debt, internet of debt issuance prices

150,620

144,168

Lengthy-term portion of lease liabilities

6,975

10,271

Whole liabilities

324,840

307,891

Stockholders’ Fairness:

Most popular inventory, $.001 par worth; 100,000,000 and 0 shares approved as of December 31, 2021 and 2020, respectively; no shares issued and excellent as of December 31, 2021 and 2020

Frequent inventory, $.001 par worth; 1,000,000,000 and 164,063,787 shares approved as of December 31, 2021 and 2020, respectively; 187,193,613 and 164,063,787 shares issued and excellent as of December 31, 2021 and 2020, respectively

188

164

Extra paid-in capital

880,708

410,018

Amassed deficit

(574,856

)

(379,571

)

Whole Alignment Healthcare, Inc. stockholders’ fairness

306,040

30,611

Noncontrolling curiosity

15

Whole stockholders’ fairness

306,055

30,611

Whole liabilities and stockholders’ fairness

$

630,895

$

338,502

(1)

The consolidated steadiness sheet as of Dec. 31, 2020, was derived from the audited consolidated monetary statements as of that date and was retroactively adjusted, together with shares and per share quantities, because of the Reorganization. See Be aware 1 to the monetary statements included within the Kind 10-Okay for extra particulars.

Consolidated Statements of Operations
(in hundreds, besides per share quantities)
(Quarterly knowledge unaudited)

Three months ended
December 31,

12 months ended
December 31,

2021

2020

2021

2020

Revenues:

Earned premiums

$

298,071

$

241,680

$

1,167,085

$

955,393

Different

203

729

688

3,829

Whole revenues

298,274

242,409

1,167,773

959,222

Bills:

Medical bills

259,571

215,014

1,039,041

792,992

Promoting, common, and administrative bills

78,081

51,119

290,991

156,398

Depreciation and amortization

4,088

4,071

15,813

15,095

Whole bills

341,740

270,204

1,345,845

964,485

Loss from operations

(43,466

)

(27,795

)

(178,072

)

(5,263

)

Different bills:

Curiosity expense

4,452

4,308

17,443

16,931

Different (earnings) bills

(84

)

(38

)

(229

)

732

Whole different bills

4,368

4,270

17,214

17,663

Loss earlier than earnings taxes

(47,834

)

(32,065

)

(195,286

)

(22,926

)

Provision for earnings taxes

Internet loss attributable to Alignment Healthcare, Inc.

$

(47,834

)

$

(32,065

)

$

(195,286

)

$

(22,926

)

Whole weighted-average widespread shares excellent – fundamental and diluted(1)

178,396,999

152,068,289

171,956,849

152,132,299

Internet loss per share – fundamental and diluted

$

(0.27

)

$

(0.21

)

$

(1.14

)

$

(0.15

)

(1)

The weighted-average shares utilized in computing internet loss per share, fundamental and diluted had been retroactively adjusted because of the Reorganization. See Be aware 1 to the monetary statements included within the Kind 10-Okay for extra particulars.

Consolidated Statements of Money Flows
(in hundreds)

12 months ended December 31,

2021

2020

Working Actions:

Internet loss

$

(195,286

)

$

(22,926

)

Changes to reconcile internet loss to internet money supplied by (utilized in) working actions:

Provision for credit score loss

111

118

Depreciation and amortization

16,033

15,461

Amortization-debt issuance prices and funding low cost

2,254

2,192

Fee-in-kind curiosity

4,197

4,015

Loss on disposal of property and gear

1,006

Fairness-based compensation and customary inventory funds

110,600

2,124

Non-cash lease expense

2,731

2,317

Adjustments in working property and liabilities:

Accounts receivable

(17,608

)

(4,627

)

Pay as you go bills and different present property

(10,340

)

(11,990

)

Different property

644

2,779

Medical bills payable

12,512

6,460

Accounts payable and accrued bills

437

645

Accrued compensation

(1,244

)

12,651

Lease liabilities

(3,817

)

1,277

Noncurrent liabilities

(3,941

)

Internet money supplied by (utilized in) working actions

(78,776

)

7,561

Investing Actions:

Asset acquisition, internet of money obtained

(1,405

)

Buy of investments

(2,475

)

(1,575

)

Sale of investments

1,425

825

Acquisition of property and gear

(18,360

)

(15,708

)

Proceeds from the sale of property and gear

100

Internet money utilized in investing actions

(20,815

)

(16,358

)

Financing Actions:

Buy of noncontrolling curiosity

15

Fairness repurchase

(1,474

)

(1,505

)

Issuance of widespread inventory

390,600

135,000

Frequent inventory issuance prices

(29,011

)

(3,371

)

Internet money supplied by financing actions

360,130

130,124

Internet enhance in money

260,539

121,327

Money and restricted money at starting of interval

207,811

86,484

Money and restricted money at finish of interval

$

468,350

$

207,811

Supplemental disclosure of money movement info:

Money paid for curiosity

$

10,992

$

10,720

Supplemental non-cash investing and financing actions:

Acquisition of property in accounts payable

$

347

$

106

The next desk supplies a reconciliation of money and restricted money reported throughout the consolidated steadiness sheets to the entire above:

12 months ended December 31,

2021

2020

Money and restricted money at starting of interval

$

466,600

$

207,311

Restricted money in different property

1,750

500

Whole

$

468,350

$

207,811

Non-GAAP Monetary Measures

Sure of those monetary measures are thought-about “non-GAAP” monetary measures throughout the which means of Merchandise 10 of Regulation S-Okay promulgated by the SEC. We consider that non-GAAP monetary measures present an extra means of viewing elements of our operations that, when considered with the GAAP outcomes, present a extra full understanding of our outcomes of operations and the components and tendencies affecting our enterprise. These non-GAAP monetary measures are additionally utilized by our administration to judge monetary outcomes and to plan and forecast future durations. Nonetheless, non-GAAP monetary measures must be thought-about as a complement to, and never as an alternative to, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP monetary measures utilized by us might differ from the non-GAAP measures utilized by different corporations, together with our opponents. To complement our consolidated monetary statements introduced on a GAAP foundation, we disclose the next non-GAAP measures: Medical Advantages Ratio, Adjusted EBITDA and Adjusted Gross Revenue as these are efficiency measures that our administration makes use of to evaluate our working efficiency. As a result of these measures facilitate inner comparisons of our historic working efficiency on a extra constant foundation, we use these measures for enterprise planning functions and in evaluating acquisition alternatives.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP monetary measure that we outline as internet loss earlier than curiosity expense, earnings taxes, depreciation and amortization expense, reorganization and transaction-related bills and equity-based compensation expense.

Adjusted EBITDA shouldn’t be thought-about in isolation of, or as a substitute for, measures ready in accordance with GAAP. There are a selection of limitations associated to the usage of Adjusted EBITDA in lieu of internet loss, which is essentially the most immediately comparable monetary measure calculated in accordance with GAAP.

Our use of the time period Adjusted EBITDA might fluctuate from the usage of related phrases by different corporations in our trade and accordingly will not be similar to equally titled measures utilized by different corporations.

Medical Advantages Ratio (MBR)

We calculate our MBR by dividing whole medical bills excluding depreciation and equity-based compensation by whole revenues in a given interval.

Adjusted Gross Revenue

Adjusted Gross Revenue is a non-GAAP monetary measure that we outline as loss from operations earlier than depreciation and amortization, medical equity-based compensation expense, and promoting, common, and administrative bills.

Adjusted Gross Revenue shouldn’t be thought-about in isolation of, or as a substitute for, measures ready in accordance with GAAP. There are a selection of limitations associated to the usage of Adjusted Gross Revenue in lieu of loss from operations, which is essentially the most immediately comparable monetary measure calculated in accordance with GAAP.

Our use of the time period Adjusted Gross Revenue might fluctuate from the usage of related phrases by different corporations in our trade and accordingly will not be similar to equally titled measures utilized by different corporations.

Investor Contact
Bob East
ICR Westwicke for Alignment Healthcare
[email protected]

Media Contact
Maggie Habib
mPR, Inc. for Alignment Healthcare
[email protected]

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