Business
Alignment Healthcare Reports Second Quarter 2021 Financial Results
ORANGE, Calif., Aug. 09, 2021 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (“Alignment Healthcare” or the “Company”) (Nasdaq: ALHC), a mission-based,
About this update from Alignment Healthcare, Inc.
[{"type":"text","content":"ORANGE, Calif., Aug. 09, 2021 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (“Alignment Healthcare” or the “Company”) (Nasdaq: ALHC), a mission-based, tech-enabled Medicare Advantage company, today reported financial results for its second quarter ended June 30, 2021. “Our results in the second quarter exceeded our expectations across the board including our membership, revenue, adjusted gross profit and adjusted EBITDA, leading us to raise our outlook for the full year of 2021,” said John Kao, founder and CEO. “During the quarter, the team made notable progress on our growth strategy by entering new states, expanding to contiguous markets, and developing new, innovative customer-focused plans – all of which put us in a solid position for 2022. We also expanded our provider network to support our growth in these new markets by signing several partnerships with high-quality providers. The power of our AVA technology and our expertise in Medicare Advantage offers a compelling value proposition for providers, helping them grow and gain market share.” “The positive feedback we are receiving from our members gives me increased confidence that we are on the right track, and I believe the action we took in the second quarter should set us up to deliver sustainable long-term growth,” Kao added. Second Quarter 2021 Financial HighlightsAll comparisons, unless otherwise noted, are to the three months ended June 30, 2020. Health plan membership at the end of the quarter was approximately 84,700, up 32% year over yearTotal revenue was $309.0 million, up 26% year over yearHealth plan premium revenue of $293.4 million represented 32% growth year over yearAdjusted gross profit was $37.1 million, which excludes depreciation of $0.05 million and equity-based compensation of $2.5 million from medical expense Medical benefits ratio based on adjusted gross profit was 88% Adjusted Gross Profit is reconciled as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (dollars in thousands) Revenues $308,951 $244,313 $576,033 $468,946 Medical expenses 274,385 194,502 525,480 387,898 Gross profit 34,566 49,811 50,553 81,048 Gross profit % 11.2% 20.4% 8.8% 17.3%Add back: Equity-based compensation (medical expenses) 2,457 — 9,023 — Depreciation 54 88 106 193 Total add back 2,511 88 9,129 193 Adjusted gross profit $37,077 $49,899...