Centene Corporation Reports 2016 Fourth Quarter And Full Year Results
For the fourth quarter and year ended
Q4 |
Full Year |
||||||
GAAP diluted EPS |
$ |
1.45 |
$ |
3.41 |
|||
Health Net acquisition related expenses |
0.03 |
0.98 |
|||||
Amortization of acquired intangible assets |
0.20 |
0.57 |
|||||
|
(0.71) |
(0.76) |
|||||
Charitable contribution (2) |
0.18 |
0.19 |
|||||
Debt extinguishment (3) |
0.04 |
0.04 |
|||||
Adjusted Diluted EPS |
$ |
1.19 |
$ |
4.43 |
(1) |
A favorable impact associated with the retroactive change in the minimum medical loss ratio (MLR) calculation under |
(2) |
In connection with the additional revenue associated with the |
(3) |
Additional expense of |
Included in diluted EPS and Adjusted Diluted EPS for the fourth quarter and year ended
In summary, the 2016 fourth quarter and full year results were as follows:
2016 Results |
|||||||
Q4 |
Full Year |
||||||
Total revenues (in millions) |
$ |
11,911 |
$ |
40,607 |
|||
Health benefits ratio |
84.8 |
% |
86.5 |
% |
|||
Selling, general & administrative expense ratio |
10.0 |
% |
9.8 |
% |
|||
Selling, general & administrative expense ratio, excluding Health Net acquisition related expenses |
9.9 |
% |
9.2 |
% |
|||
GAAP diluted EPS |
$ |
1.45 |
$ |
3.41 |
|||
Adjusted Diluted EPS |
$ |
1.19 |
$ |
4.43 |
|||
Total cash flow provided by operations (in millions) |
$ |
1,596 |
$ |
1,851 |
Fourth Quarter and Full Year Highlights
December 31, 2016 managed care membership of 11.4 million, an increase of 6.3 million members, or 124% over 2015.- Total revenues for the fourth quarter of 2016 of
$11.9 billion , representing 89% growth compared to the fourth quarter of 2015 and$40.6 billion for the full year 2016, representing 78% growth year over year. - Health benefits ratio (HBR) of 84.8% for the fourth quarter of 2016 compared to 88.0% in the fourth quarter of 2015 and 86.5% for the full year 2016 compared to 88.9% for the full year 2015.
- Selling, general and administrative (SG&A) expense ratio of 10.0% for the fourth quarter of 2016 compared to 8.7% for the fourth quarter of 2015. SG&A expense ratio of 9.8% for the full year 2016 compared to 8.5% for the full year 2015.
- SG&A expense ratio excluding Health Net acquisition related expenses of 9.9% for the fourth quarter of 2016 compared to 8.6% for the fourth quarter of 2015. SG&A expense ratio excluding Health Net acquisition related expenses of 9.2% for the full year 2016 compared to 8.3% for the full year 2015.
- Operating cash flow of
$1.6 billion and$1.9 billion for the fourth quarter and full year of 2016, respectively, representing 3.3x net earnings for the full year of 2016. - Diluted EPS for the fourth quarter of 2016 of
$1.45 compared to$0.91 for the fourth quarter of 2015. Diluted EPS for the full year of 2016 of$3.41 compared to$2.89 for the full year of 2015. - Adjusted Diluted EPS for the fourth quarter of 2016 of
$1.19 compared to$0.97 for the fourth quarter of 2015. Adjusted Diluted EPS for the full year of 2016 of$4.43 compared to$3.14 for the full year of 2015.
Other Events
- In
January 2017 , we signed a joint venture agreement with theNorth Carolina Medical Society , working in conjunction with theNorth Carolina Community Health Center , to collaborate on a patient-focused approach toMedicaid under the reform plan enacted in theState of North Carolina . The newly created health plan,Carolina Complete Health , was created to establish, organize and operate a physician-led health plan to provideMedicaid managed care services inNorth Carolina . - In
January 2017 , ourPennsylvania subsidiary,Pennsylvania Health & Wellness , was selected by thePennsylvania Department of Human Services to serveMedicaid recipients enrolled in the HealthChoices program in three zones. Pending regulatory approval and successful completion of a readiness review, the three-year agreement is expected to commenceJune 1, 2017 . - In
January 2017 , ourIndiana subsidiary,Managed Health Services , began operating under a contract with theIndiana Family & Social Services Administration to provide risk-based managed care services for enrollees in the Healthy Indiana Plan and Hoosier Healthwise programs. - In
January 2017 , ourNebraska subsidiary, Nebraska Total Care, began operating under a contract with the Nebraska Department of Health andHuman Services' Division of Medicaid and Long Term Care as one of three managed care organizations to administer its newHeritage Health Program for Medicaid, ABD, CHIP, Foster Care and LTC enrollees. - In
November 2016 , our subsidiary,Peach State Health Plan , was awarded a statewide managed care contract to continue serving members enrolled in the Georgia Families managed care program, including PeachCare for Kids and Planning for Healthy Babies. Through the new contract,Peach State Health Plan will be one of four managed care organizations providing medical, behavioral, dental and vision health benefits for its members. The contract is expected to become effectiveJuly 1, 2017 . - In
November 2016 , ourNevada subsidiary, Silver Summit Health Plan, was selected to serveMedicaid recipients enrolled inNevada's Medicaid managed care program. The contract is expected to commence onJuly 1, 2017 , pending regulatory approval and successful completion of a readiness review. - In
November 2016 , the Company issued$1.2 billion in aggregate principal amount of 4.75% Senior Notes due 2025. The Company used the net proceeds of the offering to redeem its 5.75% Senior Notes due 2017 andHealth Net Inc.'s 6.375% Senior Notes due 2017, to repay amounts outstanding under its Revolving Credit Facility, to pay related fees and expenses and for general corporate purposes.
Membership
The following table sets forth the Company's membership by state for its managed care organizations:
|
|||||
2016 |
2015 |
||||
|
598,300 |
440,900 |
|||
|
58,600 |
41,900 |
|||
|
2,973,500 |
186,000 |
|||
|
716,100 |
510,400 |
|||
|
488,000 |
408,600 |
|||
|
237,700 |
207,500 |
|||
|
285,800 |
282,100 |
|||
|
139,700 |
141,000 |
|||
|
472,800 |
381,900 |
|||
|
48,300 |
61,500 |
|||
|
2,000 |
4,800 |
|||
|
9,400 |
9,600 |
|||
|
310,200 |
302,200 |
|||
|
105,700 |
95,100 |
|||
|
77,400 |
71,400 |
|||
|
7,100 |
— |
|||
|
316,000 |
302,700 |
|||
|
217,800 |
98,700 |
|||
|
122,500 |
104,000 |
|||
|
21,700 |
20,000 |
|||
|
1,072,400 |
983,100 |
|||
|
1,600 |
1,700 |
|||
|
238,400 |
209,400 |
|||
|
73,800 |
77,100 |
|||
Total at-risk membership |
8,594,800 |
4,941,600 |
|||
TRICARE eligibles |
2,847,000 |
— |
|||
Non-risk membership |
— |
166,300 |
|||
Total |
11,441,800 |
5,107,900 |
The following table sets forth our membership by line of business:
|
|||||
2016 |
2015 |
||||
|
|||||
TANF, CHIP & Foster Care |
5,630,000 |
3,763,400 |
|||
ABD & LTC |
785,400 |
478,600 |
|||
|
466,600 |
456,800 |
|||
Commercial |
1,239,100 |
146,100 |
|||
|
334,300 |
37,400 |
|||
Correctional |
139,400 |
59,300 |
|||
Total at-risk membership |
8,594,800 |
4,941,600 |
|||
TRICARE eligibles |
2,847,000 |
— |
|||
Non-risk membership |
— |
166,300 |
|||
Total |
11,441,800 |
5,107,900 |
(1) Membership includes |
At
Statement of Operations: Three Months Ended
- For the fourth quarter of 2016, total revenues increased 89% to
$11.9 billion from$6.3 billion in the comparable period in 2015. The increase over prior year was primarily a result of the acquisition of Health Net, the impact from expansions and new programs in many of our states in 2015 and 2016, and growth in theHealth Insurance Marketplace business in 2016. Sequentially, revenue increased over the third quarter of 2016 partially due to$195 million of revenue recognized associated with the minimum MLR change inCalifornia . Additionally, during the fourth quarter we received approximately$500 million associated with pass through payments from the state ofCalifornia that were recorded in Premium tax revenue and Premium tax expense. - HBR of 84.8% for the fourth quarter of 2016 represents a decrease from 88.0% in the comparable period in 2015 and a decrease from 87.0% in the third quarter of 2016. The year over year HBR decrease is primarily attributable to the acquisition of Health Net, which operates at a lower HBR due to a higher mix of commercial business. Also, in the fourth quarter of 2016, we recognized revenue relating to amendments to our
California contracts with theDepartment of Health Care Services to amend theMedicaid expansion minimum MLR definition, reducing the fourth quarter HBR by 170 basis points. - SG&A expense ratio of 10.0% for the fourth quarter of 2016 compared to 8.7% for the fourth quarter of 2015. SG&A expense ratio excluding Health Net acquisition related expenses of 9.9% for the fourth quarter of 2016 compared to 8.6% for the fourth quarter of 2015. The increase in the SG&A expense ratio is primarily attributable to the addition of the Health Net business, which operates at a higher SG&A expense ratio due to a higher mix of commercial and
Medicare business. The charitable contribution of$50 million increased the fourth quarter SG&A expense ratio by 50 basis points.
Statement of Operations: Year Ended
- Total revenues increased 78% in the year ended
December 31, 2016 over the corresponding period in 2015 primarily as a result of the acquisition of Health Net, growth in theHealth Insurance Marketplace business, and the impact from expansions, acquisitions or new programs in many of our states in 2016 and 2015. - The consolidated HBR for the year ended
December 31, 2016 was 86.5%, a decrease of 240 basis points over the comparable period in 2015. The decrease compared to last year is primarily attributable to the acquisition of Health Net, membership growth inMedicaid expansion andHealth Insurance Marketplace products, and improvement in HBR in the higher acuity populations. Also, in the fourth quarter we recognized additional revenue relating to theCalifornia minimum MLR change, which reduced our 2016 HBR by 50 basis points. - SG&A expense ratio of 9.8% for the full year 2016 compared to 8.5% for the full year 2015. SG&A expense ratio excluding Health Net acquisition related expenses of 9.2% for the full year 2016 compared to 8.3% for the full year 2015. The increase in the SG&A expense ratio is primarily attributable to the addition of the Health Net business.
Balance Sheet and Cash Flow
At
Cash flow provided by operations for the three months ended
A reconciliation of the Company's change in days in claims payable from the immediately preceding quarter-end is presented below:
Days in claims payable, |
41 |
||
Timing of claims payments |
1 |
||
Days in claims payable, |
42 |
||
Outlook
The table below depicts the Company's annual guidance for 2017 and reflects a revised GAAP diluted EPS range to reflect the updated amortization expense as a result of finalizing the Health Net opening balance sheet intangibles valuation in the fourth quarter of 2016.
Full Year 2017 |
|||||||||
Low |
High |
||||||||
Total revenues (in billions) |
$ |
46.0 |
$ |
46.8 |
|||||
GAAP diluted EPS |
$ |
3.82 |
$ |
4.26 |
|||||
Adjusted Diluted EPS (1) |
$ |
4.40 |
$ |
4.85 |
|||||
HBR |
87.0 |
% |
87.5 |
% |
|||||
SG&A expense ratio |
9.0 |
% |
9.5 |
% |
|||||
SG&A expense ratio, excluding Health Net acquisition related expenses |
9.0 |
% |
9.5 |
% |
|||||
Effective tax rate |
39.0 |
% |
41.0 |
% |
|||||
Diluted shares outstanding (in millions) |
176.9 |
177.9 |
|||||||
(1) |
Adjusted Diluted EPS excludes Health Net acquisition related expenses of |
Conference Call
As previously announced, the Company will host a conference call
Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 in the
A webcast replay will be available for on-demand listening shortly after the completion of the call for the next twelve months or until
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally to allow management to focus on period-to-period changes in the Company's core business operations. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Specifically, the Company believes the presentation of non-GAAP financial information that excludes Health Net acquisition related expenses, amortization of acquired intangible assets, as well as other items, allows investors to develop a more meaningful understanding of the Company's performance over time. The tables below provide reconciliations of non-GAAP items ($ in millions, except per share data):
Three Months |
Year Ended |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
GAAP net earnings from continuing operations |
$ |
255 |
$ |
112 |
$ |
559 |
$ |
356 |
|||
Health Net acquisition related expenses |
10 |
7 |
234 |
27 |
|||||||
Amortization of acquired intangible assets |
52 |
6 |
147 |
24 |
|||||||
|
(195) |
— |
(195) |
— |
|||||||
Charitable contribution (2) |
50 |
— |
50 |
— |
|||||||
Debt extinguishment (3) |
11 |
— |
11 |
— |
|||||||
Income tax effects of adjustments (4) |
27 |
(5) |
(79) |
(20) |
|||||||
Adjusted net earnings from continuing operations |
$ |
210 |
$ |
120 |
$ |
727 |
$ |
387 |
(1) |
A favorable impact associated with the retroactive change in the minimum MLR calculation under |
(2) |
In connection with the additional revenue associated with the |
(3) |
Additional expense of |
(4) |
The income tax effects of adjustments are based on the effective income tax rates applicable to adjusted (non-GAAP) results. The amounts are based on the effective income tax rate that would increase or decrease based on the exclusion of these exceptions. |
Three Months |
Year Ended |
Annual |
||||||||||||
2016 |
2015 |
2016 |
2015 |
2017 |
||||||||||
GAAP diluted earnings per share (EPS) |
$ |
1.45 |
$ |
0.91 |
$ |
3.41 |
$ |
2.89 |
|
|||||
Health Net acquisition related expenses (1) |
0.03 |
0.03 |
0.98 |
0.14 |
|
|||||||||
Amortization of acquired intangible assets (2) |
0.20 |
0.03 |
0.57 |
0.11 |
|
|||||||||
|
(0.71) |
— |
(0.76) |
— |
— |
|||||||||
Charitable contribution (4) |
0.18 |
— |
0.19 |
— |
— |
|||||||||
Debt extinguishment (5) |
0.04 |
— |
0.04 |
— |
— |
|||||||||
Adjusted Diluted EPS |
$ |
1.19 |
$ |
0.97 |
$ |
4.43 |
$ |
3.14 |
|
(1) |
The Health Net acquisition related expenses per diluted share presented above are net of the income tax benefit of |
(2) |
The amortization of acquired intangible assets per diluted share presented above are net of the income tax benefit of |
(3) |
The impact associated with the retroactive change in the minimum MLR calculation per diluted share presented above is net of income tax expense of |
(4) |
The charitable contributions per diluted share presented above are net of the income tax benefit of |
(5) |
The debt extinguishment cost per diluted share presented above is net of income tax benefit of |
Three Months |
Year Ended |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
GAAP SG&A expenses |
$ |
1,065 |
$ |
511 |
$ |
3,676 |
$ |
1,802 |
|||
Health Net acquisition related expenses |
10 |
7 |
234 |
27 |
|||||||
SG&A expenses, excluding Health Net acquisition related expenses |
$ |
1,055 |
$ |
504 |
$ |
3,442 |
$ |
1,775 |
About
Forward-Looking Statements
The company and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act ("PSLRA") of 1995, including statements in this and other press releases, in presentations, filings with the
[Tables Follow]
CENTENE CORPORATION AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(In millions, except share data) |
|||||||
(Unaudited) |
|||||||
|
|
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
3,930 |
$ |
1,760 |
|||
Premium and related receivables |
3,098 |
1,279 |
|||||
Short term investments |
505 |
176 |
|||||
Other current assets |
832 |
390 |
|||||
Total current assets |
8,365 |
3,605 |
|||||
Long term investments |
4,545 |
1,927 |
|||||
Restricted deposits |
138 |
115 |
|||||
Property, software and equipment, net |
797 |
518 |
|||||
|
4,712 |
842 |
|||||
Intangible assets, net |
1,545 |
155 |
|||||
Other long term assets |
95 |
177 |
|||||
Total assets |
$ |
20,197 |
$ |
7,339 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Medical claims liability |
$ |
3,929 |
$ |
2,298 |
|||
Accounts payable and accrued expenses |
3,763 |
976 |
|||||
Return of premium payable |
614 |
207 |
|||||
Unearned revenue |
313 |
143 |
|||||
Current portion of long term debt |
4 |
5 |
|||||
Total current liabilities |
8,623 |
3,629 |
|||||
Long term debt |
4,651 |
1,216 |
|||||
Other long term liabilities |
869 |
170 |
|||||
Total liabilities |
14,143 |
5,015 |
|||||
Commitments and contingencies |
|||||||
Redeemable noncontrolling interests |
145 |
156 |
|||||
Stockholders' equity: |
|||||||
Preferred stock, |
— |
— |
|||||
Common stock, |
— |
— |
|||||
Additional paid-in capital |
4,190 |
956 |
|||||
Accumulated other comprehensive loss |
(36) |
(10) |
|||||
Retained earnings |
1,920 |
1,358 |
|||||
|
(179) |
(147) |
|||||
Total Centene stockholders' equity |
5,895 |
2,157 |
|||||
Noncontrolling interest |
14 |
11 |
|||||
Total stockholders' equity |
5,909 |
2,168 |
|||||
Total liabilities and stockholders' equity |
$ |
20,197 |
$ |
7,339 |
CENTENE CORPORATION AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(In millions, except share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Revenues: |
|||||||||||||||
Premium |
$ |
10,100 |
$ |
5,415 |
$ |
35,399 |
$ |
19,389 |
|||||||
Service |
577 |
442 |
2,180 |
1,876 |
|||||||||||
Premium and service revenues |
10,677 |
5,857 |
37,579 |
21,265 |
|||||||||||
Premium tax and health insurer fee |
1,234 |
445 |
3,028 |
1,495 |
|||||||||||
Total revenues |
11,911 |
6,302 |
40,607 |
22,760 |
|||||||||||
Expenses: |
|||||||||||||||
Medical costs |
8,564 |
4,767 |
30,636 |
17,242 |
|||||||||||
Cost of services |
478 |
387 |
1,864 |
1,621 |
|||||||||||
Selling, general and administrative expenses |
1,065 |
511 |
3,676 |
1,802 |
|||||||||||
Amortization of acquired intangible assets |
52 |
6 |
147 |
24 |
|||||||||||
Premium tax expense |
1,103 |
357 |
2,563 |
1,151 |
|||||||||||
Health insurer fee expense |
128 |
54 |
461 |
215 |
|||||||||||
Total operating expenses |
11,390 |
6,082 |
39,347 |
22,055 |
|||||||||||
Earnings from operations |
521 |
220 |
1,260 |
705 |
|||||||||||
Other income (expense): |
|||||||||||||||
Investment and other income |
34 |
8 |
114 |
35 |
|||||||||||
Interest expense |
(75) |
(11) |
(217) |
(43) |
|||||||||||
Earnings from continuing operations, before income tax expense |
480 |
217 |
1,157 |
697 |
|||||||||||
Income tax expense |
227 |
105 |
599 |
339 |
|||||||||||
Earnings from continuing operations, net of income tax expense |
253 |
112 |
558 |
358 |
|||||||||||
Discontinued operations, net of income tax expense (benefit) of |
6 |
(1) |
3 |
(1) |
|||||||||||
Net earnings |
259 |
111 |
561 |
357 |
|||||||||||
(Earnings) loss attributable to noncontrolling interests |
2 |
— |
1 |
(2) |
|||||||||||
Net earnings attributable to |
$ |
261 |
$ |
111 |
$ |
562 |
$ |
355 |
|||||||
Amounts attributable to |
|||||||||||||||
Earnings from continuing operations, net of income tax expense |
$ |
255 |
$ |
112 |
$ |
559 |
$ |
356 |
|||||||
Discontinued operations, net of income tax expense (benefit) |
6 |
(1) |
3 |
(1) |
|||||||||||
Net earnings |
$ |
261 |
$ |
111 |
$ |
562 |
$ |
355 |
|||||||
Net earnings (loss) per common share attributable to |
|||||||||||||||
Basic: |
|||||||||||||||
Continuing operations |
$ |
1.49 |
$ |
0.94 |
$ |
3.50 |
$ |
2.99 |
|||||||
Discontinued operations |
0.04 |
(0.01) |
0.02 |
(0.01) |
|||||||||||
Basic earnings per common share |
$ |
1.53 |
$ |
0.93 |
$ |
3.52 |
$ |
2.98 |
|||||||
Diluted: |
|||||||||||||||
Continuing operations |
$ |
1.45 |
$ |
0.91 |
$ |
3.41 |
$ |
2.89 |
|||||||
Discontinued operations |
0.04 |
(0.01) |
0.02 |
(0.01) |
|||||||||||
Diluted earnings per common share |
$ |
1.49 |
$ |
0.90 |
$ |
3.43 |
$ |
2.88 |
|||||||
Weighted average number of common shares outstanding: |
|||||||||||||||
Basic |
171,143,624 |
119,486,183 |
159,567,607 |
119,100,744 |
|||||||||||
Diluted |
175,511,179 |
123,350,506 |
163,975,407 |
123,066,370 |
CENTENE CORPORATION AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In millions) |
|||||||
(Unaudited) |
|||||||
Year Ended |
|||||||
2016 |
2015 |
||||||
Cash flows from operating activities: |
|||||||
Net earnings |
$ |
561 |
$ |
357 |
|||
Adjustments to reconcile net earnings to net cash provided by operating activities |
|||||||
Depreciation and amortization |
278 |
111 |
|||||
Stock compensation expense |
148 |
71 |
|||||
Debt extinguishment costs |
(7) |
— |
|||||
Deferred income taxes |
92 |
(17) |
|||||
Gain on contingent consideration |
(5) |
(44) |
|||||
|
— |
38 |
|||||
Changes in assets and liabilities |
|||||||
Premium and related receivables |
74 |
(360) |
|||||
Other assets |
167 |
(102) |
|||||
Medical claims liabilities |
145 |
536 |
|||||
Unearned revenue |
43 |
(27) |
|||||
Accounts payable and accrued expenses |
402 |
39 |
|||||
Other long term liabilities |
(61) |
51 |
|||||
Other operating activities, net |
14 |
5 |
|||||
Net cash provided by operating activities |
1,851 |
658 |
|||||
Cash flows from investing activities: |
|||||||
Capital expenditures |
(306) |
(150) |
|||||
Purchases of investments |
(2,450) |
(1,321) |
|||||
Sales and maturities of investments |
1,656 |
669 |
|||||
Investments in acquisitions, net of cash acquired |
(1,297) |
(18) |
|||||
Proceeds from asset sale |
— |
7 |
|||||
Net cash used in investing activities |
(2,397) |
(813) |
|||||
Cash flows from financing activities: |
|||||||
Proceeds from borrowings |
8,946 |
1,925 |
|||||
Payment of long term debt |
(6,076) |
(1,583) |
|||||
Common stock repurchases |
(63) |
(53) |
|||||
Debt issuance costs |
(76) |
(4) |
|||||
Other financing activities, net |
(14) |
20 |
|||||
Net cash provided by financing activities |
2,717 |
305 |
|||||
Effect of exchange rate changes on cash and cash equivalents |
(1) |
— |
|||||
Net increase in cash and cash equivalents |
2,170 |
150 |
|||||
Cash and cash equivalents, beginning of period |
1,760 |
1,610 |
|||||
Cash and cash equivalents, end of period |
$ |
3,930 |
$ |
1,760 |
|||
Supplemental disclosures of cash flow information: |
|||||||
Interest paid |
$ |
165 |
$ |
55 |
|||
Income taxes paid |
$ |
556 |
$ |
328 |
|||
Equity issued in connection with acquisitions |
$ |
3,105 |
$ |
12 |
|
||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA FROM CONTINUING OPERATIONS |
||||||||||||||||
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
||||||||||||
2016 |
2016 |
2016 |
2016 |
2015 |
||||||||||||
MANAGED CARE MEMBERSHIP BY STATE |
||||||||||||||||
|
598,300 |
601,500 |
597,700 |
607,000 |
440,900 |
|||||||||||
|
58,600 |
57,700 |
52,800 |
50,700 |
41,900 |
|||||||||||
|
2,973,500 |
3,004,500 |
3,097,600 |
3,125,400 |
186,000 |
|||||||||||
|
716,100 |
732,700 |
726,200 |
660,800 |
510,400 |
|||||||||||
|
488,000 |
498,000 |
493,300 |
495,500 |
408,600 |
|||||||||||
|
237,700 |
236,700 |
234,700 |
239,100 |
207,500 |
|||||||||||
|
285,800 |
289,600 |
291,000 |
290,300 |
282,100 |
|||||||||||
|
139,700 |
145,100 |
144,800 |
141,100 |
141,000 |
|||||||||||
|
472,800 |
455,600 |
375,300 |
381,200 |
381,900 |
|||||||||||
|
48,300 |
45,300 |
47,100 |
52,400 |
61,500 |
|||||||||||
|
2,000 |
2,100 |
2,200 |
2,600 |
4,800 |
|||||||||||
|
9,400 |
9,400 |
9,500 |
9,500 |
9,600 |
|||||||||||
|
310,200 |
313,900 |
323,800 |
328,300 |
302,200 |
|||||||||||
|
105,700 |
104,700 |
102,900 |
100,000 |
95,100 |
|||||||||||
|
77,400 |
78,400 |
79,700 |
81,500 |
71,400 |
|||||||||||
|
7,100 |
7,100 |
7,100 |
— |
— |
|||||||||||
|
316,000 |
319,500 |
319,000 |
314,000 |
302,700 |
|||||||||||
|
217,800 |
218,400 |
221,500 |
209,000 |
98,700 |
|||||||||||
|
122,500 |
119,700 |
113,700 |
107,700 |
104,000 |
|||||||||||
|
21,700 |
21,600 |
20,800 |
20,100 |
20,000 |
|||||||||||
|
1,072,400 |
1,041,600 |
1,037,000 |
1,036,700 |
983,100 |
|||||||||||
|
1,600 |
1,700 |
1,600 |
1,500 |
1,700 |
|||||||||||
|
238,400 |
240,500 |
239,700 |
226,500 |
209,400 |
|||||||||||
|
73,800 |
75,100 |
76,100 |
78,400 |
77,100 |
|||||||||||
Total at-risk membership |
8,594,800 |
8,620,400 |
8,615,100 |
8,559,300 |
4,941,600 |
|||||||||||
TRICARE eligibles |
2,847,000 |
2,815,700 |
2,815,700 |
2,819,700 |
— |
|||||||||||
Non-risk membership |
— |
— |
— |
161,400 |
166,300 |
|||||||||||
Total |
11,441,800 |
11,436,100 |
11,430,800 |
11,540,400 |
5,107,900 |
|||||||||||
|
||||||||||||||||
TANF, CHIP & Foster Care |
5,630,000 |
5,583,900 |
5,541,200 |
5,464,200 |
3,763,400 |
|||||||||||
ABD & LTC |
785,400 |
754,900 |
757,500 |
757,600 |
478,600 |
|||||||||||
|
466,600 |
465,300 |
455,800 |
456,500 |
456,800 |
|||||||||||
Commercial |
1,239,100 |
1,333,000 |
1,391,500 |
1,487,900 |
146,100 |
|||||||||||
|
334,300 |
333,500 |
332,600 |
334,100 |
37,400 |
|||||||||||
Correctional |
139,400 |
149,800 |
136,500 |
59,000 |
59,300 |
|||||||||||
Total at-risk membership |
8,594,800 |
8,620,400 |
8,615,100 |
8,559,300 |
4,941,600 |
|||||||||||
TRICARE eligibles |
2,847,000 |
2,815,700 |
2,815,700 |
2,819,700 |
— |
|||||||||||
Non-risk membership |
— |
— |
— |
161,400 |
166,300 |
|||||||||||
Total |
11,441,800 |
11,436,100 |
11,430,800 |
11,540,400 |
5,107,900 |
|||||||||||
(1) Membership includes |
||||||||||||||||
NUMBER OF EMPLOYEES |
30,500 |
29,400 |
28,900 |
28,000 |
18,200 |
Q4 |
Q3 |
Q2 |
Q1 |
Q4 |
||||||||||||||||
2016 |
2016 |
2016 |
2016 |
2015 |
||||||||||||||||
DAYS IN CLAIMS PAYABLE (a) |
42 |
41 |
43 |
66 |
44 |
|||||||||||||||
(a) Days in claims payable is a calculation of medical claims liabilities at the end of the period divided by average claims expense per calendar day for such period. On a pro-forma basis, DCP for Q1 2016 was 42, reflecting adjusted medical costs to include a full quarter of Health Net operations. |
||||||||||||||||||||
CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) |
||||||||||||||||||||
Regulated |
$ |
8,854 |
$ |
7,825 |
$ |
7,324 |
$ |
7,682 |
$ |
3,900 |
||||||||||
Unregulated |
264 |
268 |
196 |
139 |
78 |
|||||||||||||||
Total |
$ |
9,118 |
$ |
8,093 |
$ |
7,520 |
$ |
7,821 |
$ |
3,978 |
||||||||||
DEBT TO CAPITALIZATION |
44.1 |
% |
44.5 |
% |
44.8 |
% |
44.6 |
% |
36.0 |
% |
||||||||||
DEBT TO CAPITALIZATION EXCLUDING NON-RECOURSE DEBT (b) |
43.7 |
% |
44.1 |
% |
44.4 |
% |
44.3 |
% |
34.7 |
% |
||||||||||
(b) The non-recourse debt represents the Company's mortgage note payable ( |
||||||||||||||||||||
Debt to capitalization is calculated as follows: total debt divided by (total debt + total equity). |
OPERATING RATIOS |
|||||||||||
Three Months Ended |
Year Ended |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
HBR |
84.8 |
% |
88.0 |
% |
86.5 |
% |
88.9 |
% |
|||
SG&A expense ratio |
10.0 |
% |
8.7 |
% |
9.8 |
% |
8.5 |
% |
|||
SG&A expense ratio, excluding Health Net acquisition related expenses |
9.9 |
% |
8.6 |
% |
9.2 |
% |
8.3 |
% |
MEDICAL CLAIMS LIABILITY |
||||
The changes in medical claims liability are summarized as follows (in millions): |
||||
Balance, |
$ |
2,298 |
||
Acquisitions |
1,482 |
|||
Incurred related to: |
||||
Current period |
30,946 |
|||
Prior period |
(310) |
|||
Total incurred |
30,636 |
|||
Paid related to: |
||||
Current period |
28,532 |
|||
Prior period |
1,960 |
|||
Total paid |
30,492 |
|||
Balance, |
3,924 |
|||
Reinsurance recoverable |
5 |
|||
Balance, |
$ |
3,929 |
The amount of the "Incurred related to: Prior period" above represents favorable development and includes the effects of reserving under moderately adverse conditions, new markets where we use a conservative approach in setting reserves during the initial periods of operations, receipts from other third party payors related to coordination of benefits and lower medical utilization and cost trends for dates of service
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/centene-corporation-reports-2016-fourth-quarter-and-full-year-results-300403104.html
SOURCE
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