Alignment Healthcare(ALHC)2025-02-27 21:50Financial Performance - The company reported a net loss, highlighting challenges in achieving profitability amid increasing expenses[12]. - The net loss attributable to Alignment Healthcare, Inc. for 2024 was $128.0 million, compared to a net loss of $148.0 million in 2023, indicating a 13.5% improvement[458]. - The net loss for 2024 was $128,071, a reduction from a net loss of $148,173 in 2023, indicating an improvement in financial performance[473]. - The total stockholders' equity decreased to $100.9 million in 2024 from $158.1 million in 2023, a decline of 36.2%[456]. - The company recorded a net income tax expense of $21 for the year ended December 31, 2024, compared to a benefit of $(22) in 2023[564]. - The equity in loss of subsidiary was $125,892 in 2024, compared to $147,529 in 2023, showing a decrease in losses from subsidiaries[616]. Revenue and Expenses - Total revenues for the year ended December 31, 2024, were $2,703.6 million, representing a 48.3% increase from $1,823.6 million in 2023[458]. - Medical expenses for 2024 amounted to $2,406.9 million, up 48.2% from $1,622.6 million in 2023[458]. - Premium revenue for 2024 was $2,666,813, a substantial increase from $1,668,131 in 2023, demonstrating strong growth in the Medicare Advantage sector[476]. - Capitation revenue for 2024 was $5,118, a decrease from $132,802 in 2023, indicating a shift in revenue sources[476]. - The total incurred medical expenses for the current year reached $832,819 million in 2024, significantly higher than the $492,315 million incurred in 2023[551]. - Medical expenses payable rose to $289.8 million in 2024, up 40.9% from $205.4 million in 2023[456]. Assets and Liabilities - Total current assets increased to $661.6 million in 2024 from $483.5 million in 2023, reflecting a growth of 36.8%[456]. - The company's total assets reached $782.1 million as of December 31, 2024, compared to $591.9 million in 2023, marking a 32.2% increase[456]. - Long-term debt increased significantly to $321.4 million in 2024 from $161.8 million in 2023, representing a 98.7% rise[456]. - The total liabilities rose to $325,182 in 2024 from $1,319 in 2023, reflecting a substantial increase due to new debt issuance[612]. - Cash and cash equivalents at the end of 2024 were $432,859, compared to $204,904 at the end of 2023, reflecting a significant increase in liquidity[465]. Investments and Financial Instruments - As of December 31, 2024, the company held $71.1 million in U.S. Treasury bills classified as held to maturity[436]. - The carrying value of U.S. Treasury bills decreased from $117,337 million in 2023 to $71,120 million in 2024, reflecting a significant reduction in investments[538]. - The company had $469,373 million in excess of FDIC-insured limits as of December 31, 2024, compared to $316,977 million in 2023, indicating increased cash reserves[520]. - As of December 31, 2024, the company had restricted investments in U.S. Treasury bills amounting to $1,033 million and certificates of deposits totaling $2,321 million[542]. Operational Efficiency and Management - The company is focused on maintaining high ratings on the Five Star Quality Rating System to enhance its competitive position[12]. - The company entered into a management services and risk management agreement with a third-party healthcare company in 2024, which is expected to enhance operational efficiency[481]. - The company’s management team has limited experience managing a public company, which may impact future performance[12]. Regulatory and Compliance - Medicare Advantage Plans in California, North Carolina, Nevada, Arizona, Texas, and Florida are subject to a minimum annual medical loss ratio (MLR) of 85%[486]. - The company is required to remit a portion of premiums back to the federal government if the minimum MLR is not met, although amounts payable were immaterial as of December 31, 2024[486]. - The Inflation Reduction Act is expected to have an immaterial impact on the company's consolidated financial statements at December 31, 2024, with provisions set to take effect over the next seven years[511]. Shareholder and Equity Information - The weighted-average common shares outstanding increased to 190.8 million in 2024 from 186.2 million in 2023, an increase of 2.8%[458]. - As of December 31, 2024, there were 8,762,481 stock options outstanding with a weighted-average exercise price of $16.97[571]. - The company granted 6,994,001 restricted stock units (RSUs) in 2024, with unvested and outstanding RSUs totaling 13,344,685 at year-end[575]. - Total equity-based compensation expense was $71,132, an increase from $66,835 in 2023[580]. Legal and Contingent Liabilities - The company accrued a potential liability of $913 related to a class action lawsuit as of December 31, 2024[599].