ST. LOUIS, April 22, 2014 /PRNewswire/ -- Centene Corporation (NYSE: CNC) today announced its financial results for the quarter ended March 31, 2014. The following discussions, with the exception of cash flow information, are in the context of continuing operations.
|
Premium and Service Revenues (in millions) |
$ |
3,352 |
||
|
Consolidated Health Benefits Ratio |
89.3 |
% |
||
|
General & Administrative expense ratio |
8.8 |
% |
||
|
Diluted earnings per share (EPS) |
$ |
0.57 |
||
|
Diluted EPS excluding the effect of the health insurer fee and U.S. Medical Management transaction costs |
$ |
0.79 |
||
|
Total cash flow from operations (in millions) |
$ |
252.4 |
||
Michael F. Neidorff, Centene's Chairman and Chief Executive Officer, stated, "The Company continues to diversify and add capabilities to the business, driving significant revenue and earnings growth year over year in the first quarter of 2014. Our guidance increase is driven by strong first quarter results across all metrics providing positive momentum for the remainder of the year."
First Quarter Highlights
- March 31, 2014 at-risk managed care membership of 2,885,700, an increase of 332,300 members, or 13% compared to the first quarter of 2013
- Premium and service revenues for the first quarter of $3.4 billion, representing 38% growth compared to the first quarter of 2013.
- Health Benefits Ratio of 89.3% for the first quarter 2014, compared to 90.2% in the first quarter of 2013.
- General and Administrative expense ratio of 8.8% for the first quarter of 2014, compared to 8.4% in the first quarter of 2013.
- Operating cash flow of $252.4 million for the first quarter of 2014, or 7.8 times net earnings.
- Diluted earnings per share of $0.57; $0.79 excluding $0.16 of net cost associated with the health insurer fee and $0.06 of U.S. Medical Management acquisition transaction costs, compared to $0.41 in 2013.
Other Events
- In April 2014, we signed a definitive agreement to purchase a noncontrolling interest in Ribera Salud S.A., a Spanish health management group. Centene will be a joint shareholder with Ribera Salud S.A.'s remaining investor, Banco Sabadell, the fourth largest private bank in Spain. The transaction is expected to close in 2014, subject to closing conditions and regulatory approval.
The following table sets forth the Company's membership by state for its managed care organizations:
|
March 31, |
|||||
|
2014 |
2013 |
||||
|
Arizona |
7,100 |
23,300 |
|||
|
Arkansas |
16,400 |
— |
|||
|
California |
118,100 |
— |
|||
|
Florida |
230,300 |
214,600 |
|||
|
Georgia |
331,400 |
314,000 |
|||
|
Illinois |
22,400 |
18,000 |
|||
|
Indiana |
198,700 |
202,400 |
|||
|
Kansas |
145,000 |
133,700 |
|||
|
Louisiana |
149,800 |
162,900 |
|||
|
Massachusetts |
50,800 |
17,300 |
|||
|
Minnesota |
9,400 |
— |
|||
|
Mississippi |
85,400 |
77,000 |
|||
|
Missouri |
58,100 |
57,900 |
|||
|
New Hampshire |
37,100 |
— |
|||
|
Ohio |
181,800 |
157,700 |
|||
|
South Carolina |
96,300 |
90,100 |
|||
|
Tennessee |
21,100 |
— |
|||
|
Texas |
904,000 |
948,400 |
|||
|
Washington |
151,700 |
63,500 |
|||
|
Wisconsin |
70,800 |
72,600 |
|||
|
Total |
2,885,700 |
2,553,400 |
|||
At March 31, 2014, we served 99,700 Medicaid members in Medicaid expansion programs in California, Massachusetts, Ohio and Washington included in the table above.
The following table sets forth our membership by line of business:
|
March 31, |
|||||
|
2014 |
2013 |
||||
|
Medicaid |
2,169,100 |
1,951,300 |
|||
|
CHIP & Foster Care |
269,200 |
265,400 |
|||
|
ABD & Medicare |
300,500 |
288,400 |
|||
|
Health Insurance Marketplace (HIM) |
39,700 |
— |
|||
|
Hybrid Programs |
14,400 |
24,600 |
|||
|
Long Term Care (LTC) |
51,800 |
23,700 |
|||
|
Correctional services |
41,000 |
— |
|||
|
Total |
2,885,700 |
2,553,400 |
|||
The following table identifies our dual eligible membership by line of business. The membership tables above include these members.
|
March 31, |
||||
|
2014 |
2013 |
|||
|
ABD |
72,800 |
70,000 |
||
|
LTC |
41,300 |
16,100 |
||
|
Medicare |
6,500 |
5,300 |
||
|
Total |
120,600 |
91,400 |
||
At March 31, 2014, the Company also served 162,700 members under its behavioral health contract in Arizona, compared to 156,200 members at March 31, 2013.
Statement of Operations: Three Months Ended March 31, 2014
- For the first quarter of 2014, Premium and Service Revenues increased 38% to $3.4 billion from $2.4 billion in the first quarter of 2013. The increase was primarily as a result of expansions in Florida and Ohio, the additions of the California, New Hampshire and three Centurion contracts, our participation in the Health Insurance Marketplaces, and the acquisitions of AcariaHealth and U.S. Medical Management.
- Consolidated HBR of 89.3% for the first quarter of 2014 represents a decrease from 90.2% in the comparable period in 2013 and an increase from 88.1% in the fourth quarter of 2013. The HBR improvement compared to 2013 reflects a lower level of flu costs compared to prior year and reduced utilization in certain markets in the first quarter of 2014 associated with inclement weather. The increase from the prior quarter is due to normal seasonality.
- The following table compares the results for new business and existing business for the quarters ended March 31,:
|
2014 |
2013 |
||||
|
Premium and Service Revenue |
|||||
|
New business |
20 |
% |
37 |
% |
|
|
Existing business |
80 |
% |
63 |
% |
|
|
HBR |
|||||
|
New business |
93.1 |
% |
93.7 |
% |
|
|
Existing business |
88.3 |
% |
88.2 |
% |
|
- Consolidated G&A expense ratio for the first quarter of 2014 was 8.8%, compared to 8.4% in the prior year. The year over year increase reflects U.S. Medical Management transaction costs and the addition of the Acaria business, partially offset by the leveraging of expenses over higher revenue in 2014.
- Earnings from operations were $70.0 million in the first quarter of 2014 compared to $39.6 million in the first quarter of 2013. Net earnings attributable to Centene Corporation were $33.0 million in the first quarter of 2014, compared to $23.0 million in the first quarter of 2013.
- Diluted earnings per share of $0.57, or $0.79 excluding $0.16 of net cost associated with the health insurer fee and $0.06 of U.S. Medical Management acquisition transaction costs, compared to $0.41 in 2013.
Balance Sheet and Cash Flow
At March 31, 2014, the Company had cash, investments and restricted deposits of $2,215.7 million, including $49.3 million held by its unregulated entities. Medical claims liabilities totaled $1,298.5 million, representing 42.6 days in claims payable. Total debt was $817.1 million which includes $295.0 million of borrowings on the $500 million revolving credit facility at quarter end. Debt to capitalization was 34.4% at March 31, 2014, excluding the $72.1 million non-recourse mortgage note. Cash flow from operations for the three months ended March 31, 2014, was $252.4 million, or 7.8 times net earnings.
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, December 31, 2013 |
42.4 |
|||
|
Timing of claim payments |
0.2 |
|||
|
Days in claims payable, March 31, 2014 |
42.6 |
|||
Outlook
The table below depicts the Company's annual guidance for 2014.
|
Full Year 2014 |
|||||||||
|
Low |
High |
||||||||
|
Premium and Service Revenues (in millions) |
$ |
14,200 |
$ |
14,800 |
|||||
|
Diluted EPS |
$ |
3.60 |
$ |
3.90 |
|||||
|
Consolidated Health Benefits Ratio |
88.7 |
% |
89.2 |
% |
|||||
|
General & Administrative expense ratio |
8.5 |
% |
9.0 |
% |
|||||
|
Effective Tax Rate |
50.0 |
% |
51.0 |
% |
|||||
|
Diluted Shares Outstanding (in thousands) |
59,700 |
60,200 |
|||||||
The guidance in the table above includes the impact of the acquisition of U.S. Medical Management and related transaction costs as well as the ACA health insurer fee.
Conference Call
As previously announced, the Company will host a conference call Tuesday, April 22, 2014, at 8:30 A.M. (Eastern Time) to review the financial results for the first quarter ended March 31, 2014, and to discuss its business outlook. Michael F. Neidorff and William N. Scheffel will host the conference call.
Investors and other interested parties are invited to listen to the conference call by dialing 1-877-270-2148 in the U.S. and Canada; +1-412-902-6510 from abroad; or via a live, audio webcast on the Company's website at www.centene.com , under the Investors section. Or, participants can register for the conference call in advance by navigating to http://dpregister.com/10041412 , which includes a calendar entry and PIN code to be activated one hour before the call. A webcast replay will be available for on-demand listening shortly after the completion of the call for the next twelve months or until 11:59 PM (Eastern Time) on Tuesday, April 21, 2015, at the aforementioned URL. In addition, a digital audio playback will be available until 9:00 AM Eastern Time on Wednesday, April 30, 2014, by dialing 1-877-344-7529 in the U.S. and Canada, or +1-412-317-0088 from abroad, and entering access code 10041412.
Other Information
The discussion in the third bullet under the heading "Statement of Operations: Three Months Ended March 31, 2014" contains financial information for new and existing businesses. Existing businesses are primarily state markets or significant geographic expansion in an existing state or product that we have managed for four complete quarters. New businesses are primarily new state markets or significant geographic expansion in an existing state or product that conversely, we have not managed for four complete quarters.
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 individuals to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently. 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.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading multi-line healthcare enterprise that provides programs and services to government sponsored healthcare programs, focusing on under-insured and uninsured individuals. Many receive benefits provided under Medicaid, including the State Children's Health Insurance Program (CHIP), as well as Aged, Blind or Disabled (ABD), Foster Care and Long Term Care (LTC), in addition to other state-sponsored/hybrid programs, and Medicare (Special Needs Plans). The Company operates local health plans and offers a range of health insurance solutions. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, care management software, correctional systems healthcare, in-home health services, life and health management, managed vision, pharmacy benefits management, specialty pharmacy and telehealth services.
The information provided in this press release contains forward-looking statements that relate to future events and future financial performance of Centene. Subsequent events and developments may cause the Company's estimates to change. The Company disclaims any obligation to update this forward-looking financial information in the future. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause Centene's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Actual results may differ from projections or estimates due to a variety of important factors, including Centene's ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, competition, membership and revenue projections, timing of regulatory contract approval, changes in healthcare practices, changes in federal or state laws or regulations, changes in expected contract start dates, inflation, provider and state contract changes, new technologies, reduction in provider payments by governmental payors, major epidemics, disasters and numerous other factors affecting the delivery and cost of healthcare, as well as those factors disclosed in the Company's publicly filed documents. The expiration, cancellation or suspension of Centene's Medicaid Managed Care contracts, or the loss of any appeal of or protest to any such expiration, cancellation or suspension, by state governments would also negatively affect Centene.
[Tables Follow]
|
CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) |
|||||
|
March 31, |
December 31, |
||||
|
ASSETS |
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents of continuing operations |
$ |
1,218,004 |
$ |
974,304 |
|
|
Cash and cash equivalents of discontinued operations |
52,788 |
63,769 |
|||
|
Total cash and cash equivalents |
1,270,792 |
1,038,073 |
|||
|
Premium and related receivables |
570,105 |
428,570 |
|||
|
Short term investments |
99,696 |
102,126 |
|||
|
Other current assets |
320,393 |
217,661 |
|||
|
Other current assets of discontinued operations |
20,863 |
13,743 |
|||
|
Total current assets |
2,281,849 |
1,800,173 |
|||
|
Long term investments |
840,152 |
791,900 |
|||
|
Restricted deposits |
57,826 |
46,946 |
|||
|
Property, software and equipment, net |
412,699 |
395,407 |
|||
|
Goodwill |
657,551 |
348,432 |
|||
|
Intangible assets, net |
85,134 |
48,780 |
|||
|
Other long term assets |
80,961 |
59,357 |
|||
|
Long term assets of discontinued operations |
30,275 |
38,305 |
|||
|
Total assets |
$ |
4,446,447 |
$ |
3,529,300 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
|
Current liabilities: |
|||||
|
Medical claims liability |
$ |
1,298,513 |
$ |
1,111,709 |
|
|
Accounts payable and accrued expenses |
614,541 |
375,862 |
|||
|
Unearned revenue |
74,260 |
38,191 |
|||
|
Current portion of long term debt |
6,110 |
3,065 |
|||
|
Current liabilities of discontinued operations |
28,019 |
30,294 |
|||
|
Total current liabilities |
2,021,443 |
1,559,121 |
|||
|
Long term debt |
810,970 |
665,697 |
|||
|
Other long term liabilities |
70,166 |
60,015 |
|||
|
Long term liabilities of discontinued operations |
1,009 |
1,028 |
|||
|
Total liabilities |
2,903,588 |
2,285,861 |
|||
|
Commitments and contingencies |
|||||
|
Redeemable noncontrolling interest |
120,681 |
— |
|||
|
Stockholders' equity: |
|||||
|
Common stock, $.001 par value; authorized 100,000,000 shares; 61,044,175 issued and 57,657,040 outstanding at March 31, 2014, and 58,673,215 issued and 55,319,239 outstanding at December 31, 2013 |
61 |
59 |
|||
|
Additional paid-in capital |
739,972 |
594,326 |
|||
|
Accumulated other comprehensive income: |
|||||
|
Unrealized loss on investments, net of tax |
(614) |
(2,620) |
|||
|
Retained earnings |
764,902 |
731,919 |
|||
|
Treasury stock, at cost (3,387,135 and 3,353,976 shares, respectively) |
(91,655) |
(89,643) |
|||
|
Total Centene stockholders' equity |
1,412,666 |
1,234,041 |
|||
|
Noncontrolling interest |
9,512 |
9,398 |
|||
|
Total stockholders' equity |
1,422,178 |
1,243,439 |
|||
|
Total liabilities and stockholders' equity |
$ |
4,446,447 |
$ |
3,529,300 |
|
|
CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share data) (Unaudited) |
|||||
|
Three Months Ended March 31, |
|||||
|
2014 |
2013 |
||||
|
Revenues: |
|||||
|
Premium |
$ |
3,070,887 |
$ |
2,388,639 |
|
|
Service |
281,174 |
33,194 |
|||
|
Premium and service revenues |
3,352,061 |
2,421,833 |
|||
|
Premium tax and health insurer fee |
107,827 |
103,649 |
|||
|
Total revenues |
3,459,888 |
2,525,482 |
|||
|
Expenses: |
|||||
|
Medical costs |
2,742,453 |
2,154,546 |
|||
|
Cost of services |
242,284 |
25,065 |
|||
|
General and administrative expenses |
295,512 |
203,296 |
|||
|
Premium tax expense |
78,278 |
102,975 |
|||
|
Health insurer fee expense |
31,327 |
— |
|||
|
Total operating expenses |
3,389,854 |
2,485,882 |
|||
|
Earnings from operations |
70,034 |
39,600 |
|||
|
Other income (expense): |
|||||
|
Investment and other income |
4,724 |
4,263 |
|||
|
Interest expense |
(7,023) |
(6,625) |
|||
|
Earnings from continuing operations, before income tax expense |
67,735 |
37,238 |
|||
|
Income tax expense |
34,555 |
14,690 |
|||
|
Earnings from continuing operations, net of income tax expense |
33,180 |
22,548 |
|||
|
Discontinued operations, net of income tax expense (benefit) of $(8),and $348, respectively |
(833) |
363 |
|||
|
Net earnings |
32,347 |
22,911 |
|||
|
Noncontrolling interest |
(636) |
(91) |
|||
|
Net earnings attributable to Centene Corporation |
$ |
32,983 |
$ |
23,002 |
|
|
Amounts attributable to Centene Corporation common shareholders: |
|||||
|
Earnings from continuing operations, net of income tax expense |
$ |
33,816 |
$ |
22,639 |
|
|
Discontinued operations, net of income tax expense (benefit) |
(833) |
363 |
|||
|
Net earnings |
$ |
32,983 |
$ |
23,002 |
|
|
Net earnings (loss) per common share attributable to Centene Corporation: |
|||||
|
Basic: |
|||||
|
Continuing operations |
$ |
0.59 |
$ |
0.43 |
|
|
Discontinued operations |
(0.02) |
0.01 |
|||
|
Basic earnings per common share |
$ |
0.57 |
$ |
0.44 |
|
|
Diluted: |
|||||
|
Continuing operations |
$ |
0.57 |
$ |
0.41 |
|
|
Discontinued operations |
(0.01) |
0.01 |
|||
|
Diluted earnings per common share |
$ |
0.56 |
$ |
0.42 |
|
|
Weighted average number of common shares outstanding: |
|||||
|
Basic |
57,483,876 |
52,357,119 |
|||
|
Diluted |
59,361,266 |
54,266,928 |
|||
|
CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||
|
Three Months Ended March 31, |
|||||
|
2014 |
2013 |
||||
|
Cash flows from operating activities: |
|||||
|
Net earnings |
$ |
32,347 |
$ |
22,911 |
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities |
|||||
|
Depreciation and amortization |
20,318 |
15,691 |
|||
|
Stock compensation expense |
11,297 |
8,375 |
|||
|
Deferred income taxes |
(7,873) |
986 |
|||
|
Changes in assets and liabilities |
|||||
|
Premium and related receivables |
(119,207) |
(56,734) |
|||
|
Other current assets |
3,411 |
(50,537) |
|||
|
Other assets |
(14,425) |
5 |
|||
|
Medical claims liabilities |
196,221 |
117,385 |
|||
|
Unearned revenue |
34,662 |
3,578 |
|||
|
Accounts payable and accrued expenses |
90,481 |
(22,745) |
|||
|
Other operating activities |
5,213 |
4,078 |
|||
|
Net cash provided by operating activities |
252,445 |
42,993 |
|||
|
Cash flows from investing activities: |
|||||
|
Capital expenditures |
(18,116) |
(10,654) |
|||
|
Purchases of investments |
(167,373) |
(358,131) |
|||
|
Sales and maturities of investments |
111,994 |
212,508 |
|||
|
Investments in acquisitions, net of cash acquired |
(76,989) |
— |
|||
|
Net cash used in investing activities |
(150,484) |
(156,277) |
|||
|
Cash flows from financing activities: |
|||||
|
Proceeds from exercise of stock options |
1,464 |
1,408 |
|||
|
Proceeds from borrowings |
645,000 |
— |
|||
|
Payment of long-term debt |
(519,413) |
(776) |
|||
|
Excess tax benefits from stock compensation |
312 |
515 |
|||
|
Common stock repurchases |
(2,012) |
(565) |
|||
|
Contribution from noncontrolling interest |
5,407 |
202 |
|||
|
Debt issue costs |
— |
(661) |
|||
|
Net cash provided by financing activities |
130,758 |
123 |
|||
|
Net increase (decrease) in cash and cash equivalents |
232,719 |
(113,161) |
|||
|
Cash and cash equivalents, beginning of period |
1,038,073 |
843,952 |
|||
|
Cash and cash equivalents, end of period |
$ |
1,270,792 |
$ |
730,791 |
|
|
Supplemental disclosures of cash flow information: |
|||||
|
Interest paid |
$ |
1,648 |
$ |
1,410 |
|
|
Income taxes paid |
21,265 |
2,205 |
|||
|
Equity issued in connection with acquisition |
132,371 |
— |
|||
|
CENTENE CORPORATION SUPPLEMENTAL FINANCIAL DATA FROM CONTINUING OPERATIONS |
|||||||||||||||||||
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||
|
2014 |
2013 |
2013 |
2013 |
2013 |
|||||||||||||||
|
AT-RISK MEMBERSHIP |
|||||||||||||||||||
|
Managed Care: |
|||||||||||||||||||
|
Arizona |
7,100 |
7,100 |
23,700 |
23,200 |
23,300 |
||||||||||||||
|
Arkansas |
16,400 |
— |
— |
— |
— |
||||||||||||||
|
California |
118,100 |
97,200 |
— |
— |
— |
||||||||||||||
|
Florida |
230,300 |
222,000 |
217,800 |
216,200 |
214,600 |
||||||||||||||
|
Georgia |
331,400 |
318,700 |
314,100 |
316,600 |
314,000 |
||||||||||||||
|
Illinois |
22,400 |
22,300 |
22,800 |
18,000 |
18,000 |
||||||||||||||
|
Indiana |
198,700 |
195,500 |
198,400 |
200,000 |
202,400 |
||||||||||||||
|
Kansas |
145,000 |
139,900 |
137,700 |
137,500 |
133,700 |
||||||||||||||
|
Louisiana |
149,800 |
152,300 |
152,600 |
153,700 |
162,900 |
||||||||||||||
|
Massachusetts |
50,800 |
22,600 |
23,200 |
15,200 |
17,300 |
||||||||||||||
|
Minnesota |
9,400 |
— |
— |
— |
— |
||||||||||||||
|
Mississippi |
85,400 |
78,300 |
76,900 |
77,300 |
77,000 |
||||||||||||||
|
Missouri |
58,100 |
59,200 |
58,200 |
58,800 |
57,900 |
||||||||||||||
|
New Hampshire |
37,100 |
33,600 |
— |
— |
— |
||||||||||||||
|
Ohio |
181,800 |
173,200 |
170,900 |
156,700 |
157,700 |
||||||||||||||
|
South Carolina |
96,300 |
91,900 |
89,400 |
88,800 |
90,100 |
||||||||||||||
|
Tennessee |
21,100 |
20,700 |
20,400 |
— |
— |
||||||||||||||
|
Texas |
904,000 |
935,100 |
957,300 |
960,400 |
948,400 |
||||||||||||||
|
Washington |
151,700 |
82,100 |
77,100 |
67,600 |
63,500 |
||||||||||||||
|
Wisconsin |
70,800 |
71,500 |
72,000 |
73,400 |
72,600 |
||||||||||||||
|
TOTAL |
2,885,700 |
2,723,200 |
2,612,500 |
2,563,400 |
2,553,400 |
||||||||||||||
|
Medicaid |
2,169,100 |
2,054,700 |
1,953,300 |
1,953,600 |
1,951,300 |
||||||||||||||
|
CHIP & Foster Care |
269,200 |
275,100 |
274,900 |
273,200 |
265,400 |
||||||||||||||
|
ABD & Medicare |
300,500 |
305,300 |
302,000 |
289,800 |
288,400 |
||||||||||||||
|
HIM |
39,700 |
— |
— |
— |
— |
||||||||||||||
|
Hybrid Programs |
14,400 |
19,000 |
19,600 |
22,400 |
24,600 |
||||||||||||||
|
LTC |
51,800 |
37,800 |
31,600 |
24,400 |
23,700 |
||||||||||||||
|
Correctional Services |
41,000 |
31,300 |
31,100 |
— |
— |
||||||||||||||
|
TOTAL |
2,885,700 |
2,723,200 |
2,612,500 |
2,563,400 |
2,553,400 |
||||||||||||||
|
Specialty Services(a): |
|||||||||||||||||||
|
Cenpatico Behavioral Health Arizona |
162,700 |
156,600 |
160,700 |
157,100 |
156,200 |
||||||||||||||
|
(a) Includes external membership only. |
|||||||||||||||||||
|
REVENUE PER MEMBER PER MONTH(b) |
$ |
355 |
$ |
335 |
$ |
328 |
$ |
306 |
$ |
304 |
|||||||||
|
CLAIMS(b) |
|||||||||||||||||||
|
Period-end inventory |
808,500 |
622,200 |
698,900 |
703,400 |
940,200 |
||||||||||||||
|
Average inventory |
555,400 |
511,700 |
505,800 |
510,000 |
555,800 |
||||||||||||||
|
Period-end inventory per member |
0.28 |
0.23 |
0.27 |
0.27 |
0.37 |
||||||||||||||
|
(b) Revenue per member and claims information are presented for the Managed Care at-risk members. |
|||||||||||||||||||
|
NUMBER OF EMPLOYEES |
9,500 |
8,800 |
8,200 |
7,900 |
7,100 |
||||||||||||||
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|||||||||||||||
|
2014 |
2013 |
2013 |
2013 |
2013 |
|||||||||||||||
|
DAYS IN CLAIMS PAYABLE (c) |
42.6 |
42.4 |
40.6 |
41.5 |
39.7 |
||||||||||||||
|
(c) 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. |
|||||||||||||||||||
|
CASH AND INVESTMENTS (in millions) |
|||||||||||||||||||
|
Regulated |
$ |
2,166.4 |
$ |
1,870.6 |
$ |
1,612.9 |
$ |
1,502.9 |
$ |
1,494.0 |
|||||||||
|
Unregulated |
49.3 |
44.7 |
37.6 |
33.8 |
45.5 |
||||||||||||||
|
TOTAL |
$ |
2,215.7 |
$ |
1,915.3 |
$ |
1,650.5 |
$ |
1,536.7 |
$ |
1,539.5 |
|||||||||
|
DEBT TO CAPITALIZATION |
36.5% |
35.0% |
30.5% |
32.9% |
35.2% |
||||||||||||||
|
DEBT TO CAPITALIZATION EXCLUDING NON-RECOURSE DEBT(d) |
34.4% |
32.4% |
27.4% |
29.8% |
31.9% |
||||||||||||||
|
Debt to Capitalization is calculated as follows: total debt divided by (total debt + total equity). |
|||||||||||||||||||
|
(d) The non-recourse debt represents the Company's mortgage note payable ($72.1 million at March 31, 2014). |
|||||||||||||||||||
|
Operating Ratios: |
|||
|
Three Months Ended March 31, |
|||
|
2014 |
2013 |
||
|
Health Benefits Ratios: |
|||
|
Medicaid, CHIP, Foster Care & HIM |
86.9% |
90.8% |
|
|
ABD, LTC & Medicare |
92.9 |
90.0 |
|
|
Specialty Services |
87.7 |
83.4 |
|
|
Total |
89.3 |
90.2 |
|
|
Total General & Administrative Expense Ratio |
8.8% |
8.4% |
|
|
MEDICAL CLAIMS LIABILITY (In thousands) |
|||
|
The changes in medical claims liability are summarized as follows: |
|||
|
Balance, March 31, 2013 |
$ |
950,090 |
|
|
Incurred related to: |
|||
|
Current period |
9,691,530 |
||
|
Prior period |
(108,982) |
||
|
Total incurred |
9,582,548 |
||
|
Paid related to: |
|||
|
Current period |
8,410,937 |
||
|
Prior period |
823,188 |
||
|
Total paid |
9,234,125 |
||
|
Balance, March 31, 2014 |
$ |
1,298,513 |
|
Centene's claims reserving process utilizes a consistent actuarial methodology to estimate Centene's ultimate liability. Any reduction in the "Incurred related to: Prior period" amount may be offset as Centene actuarially determines "Incurred related to: Current period." As such, only in the absence of a consistent reserving methodology would favorable development of prior period claims liability estimates reduce medical costs. Centene believes it has consistently applied its claims reserving methodology in each of the periods presented.
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 prior to March 31, 2013.
SOURCE Centene Corporation