ST. LOUIS, July 22, 2014 /PRNewswire/ -- Centene Corporation (NYSE: CNC) today announced its financial results for the quarter ended June 30, 2014. The following discussions, with the exception of cash flow information, are in the context of continuing operations.
|
Premium and Service Revenues (in millions) |
$ |
3,741 |
|
Consolidated Health Benefits Ratio |
88.9% |
|
|
General & Administrative expense ratio |
8.6% |
|
|
Diluted earnings per share (EPS) |
$ |
0.79 |
|
Diluted EPS excluding the effect of the health insurer fee |
$ |
0.95 |
|
Total cash flow from operations (in millions) |
$ |
159.4 |
Michael F. Neidorff, Centene's Chairman and Chief Executive Officer, stated, "The Company delivered strong top and bottom line growth in the second quarter, driven by the ongoing successful execution of our growth and diversification strategy. We are pleased with the results in the first half of 2014 and have increased our full year guidance to reflect the additional growth and profitability in the business."
Second Quarter Highlights
- June 30, 2014 at-risk managed care membership of 3,164,500, an increase of 601,100 members, or 23% compared to the second quarter of 2013.
- Premium and service revenues for the second quarter of $3.7 billion, representing 49% growth compared to the second quarter of 2013.
- Health Benefits Ratio of 88.9% for the second quarter of 2014, compared to 88.4% in the second quarter of 2013.
- General and Administrative expense ratio of 8.6% for the second quarter of 2014, compared to 8.9% in the second quarter of 2013.
- Operating cash flow of $159.4 million for the second quarter of 2014, or 3.3 times net earnings.
- Diluted earnings per share of $0.79, or $0.95 excluding a $0.16 impact associated with the health insurer fee, compared to $0.71 in 2013.
Other Events
- In July 2014, our Illinois subsidiary, IlliniCare Health, began operating under a new five-year contract with the Cook County Health and Hospitals System (CCHHS) to perform third party administrative services to members enrolled in the CountyCare program, as well as care coordination, behavioral health, vision care and pharmacy benefit management services.
- In July 2014, our Mississippi subsidiary, Magnolia Health, began operating as one of two contractors under a new statewide managed care contract serving members enrolled in the Mississippi Coordinated Access Network program. The program provides for membership expansion beginning in late 2014.
- In July 2014, we completed the transaction whereby Community Health Solutions of America, Inc. (CHS) assigned its contract with the Louisiana Department of Health and Hospitals under the Bayou Health Shared Savings Program to our subsidiary, Louisiana Healthcare Connections.
- In July 2014, we completed the purchase of 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.
- In April 2014, we issued $300 million 4.75% Senior Notes due May 2022 and entered into interest rate swap agreements, converting the Senior Notes to a floating rate of interest at the three month LIBOR rate plus 2.27%.
Accreditations & Awards
- In June and July 2014, our Illinois subsidiary, IlliniCare Health, our Louisiana subsidiary, Louisiana Healthcare Connections, our Kansas subsidiary, Sunflower Health Plan, and our Washington subsidiary, Coordinated Care, all received accreditation from the National Committee for Quality Assurance.
- In June 2014, FORTUNE magazine announced Centene's position of #251 in its annual ranking of America's largest companies by revenue.
- In June 2014, Centene was added to the Russell 1000 index and Russell Midcap index.
- In May 2014, at the Case In Point Platinum Awards, Centene and its subsidiaries were honored with awards in five categories: Disease Management/Population Health, Managed Care, Long-Term Care, Pediatric Case Management and Wellness/Prevention.
- In May 2014, our Georgia subsidiary, Peach State Health Plan, received the 2014 National Environmental Leadership Award in Asthma Management from the U.S. Environmental Protection Agency.
The following table sets forth the Company's membership by state for its managed care organizations:
|
June 30, |
|||
|
2014 |
2013 |
||
|
Arizona |
7,000 |
23,200 |
|
|
Arkansas |
31,100 |
— |
|
|
California |
131,100 |
— |
|
|
Florida |
313,800 |
216,200 |
|
|
Georgia |
373,000 |
316,600 |
|
|
Illinois |
29,500 |
18,000 |
|
|
Indiana |
200,500 |
200,000 |
|
|
Kansas |
146,100 |
137,500 |
|
|
Louisiana |
148,600 |
153,700 |
|
|
Massachusetts |
47,200 |
15,200 |
|
|
Minnesota |
9,400 |
— |
|
|
Mississippi |
97,400 |
77,300 |
|
|
Missouri |
58,700 |
58,800 |
|
|
New Hampshire |
39,500 |
— |
|
|
Ohio |
225,900 |
156,700 |
|
|
South Carolina |
101,800 |
88,800 |
|
|
Tennessee |
21,300 |
— |
|
|
Texas |
921,500 |
960,400 |
|
|
Washington |
193,800 |
67,600 |
|
|
Wisconsin |
67,300 |
73,400 |
|
|
Total |
3,164,500 |
2,563,400 |
|
At June 30, 2014, the Company served 155,800 Medicaid members in Medicaid expansion programs in California, Massachusetts, Ohio and Washington included in the table above. The Company also served 182,200 members at June 30, 2014 under its behavioral health contract in Arizona, compared to 157,100 members at June 30, 2013.
The following table sets forth our membership by line of business:
|
June 30, |
|||
|
2014 |
2013 |
||
|
Medicaid |
2,385,500 |
1,953,600 |
|
|
CHIP & Foster Care |
261,800 |
273,200 |
|
|
ABD & Medicare |
329,700 |
289,800 |
|
|
Health Insurance Marketplace (HIM) |
75,700 |
— |
|
|
Hybrid Programs |
17,000 |
22,400 |
|
|
Long Term Care (LTC) |
53,500 |
24,400 |
|
|
Correctional services |
41,300 |
— |
|
|
Total |
3,164,500 |
2,563,400 |
|
The following table identifies our dual eligible membership by line of business. The membership tables above include these members.
|
June 30, |
|||
|
2014 |
2013 |
||
|
ABD |
89,300 |
71,400 |
|
|
LTC |
41,800 |
16,600 |
|
|
Medicare |
8,200 |
5,700 |
|
|
Total |
139,300 |
93,700 |
|
Statement of Operations: Three Months Ended June 30, 2014
- For the second quarter of 2014, Premium and Service Revenues increased 49% to $3.7 billion from $2.5 billion in the second quarter of 2013. The increase was primarily as a result of the expansion in Florida, growth in the AcariaHealth business, the addition of the California contract, the expansion in Ohio and our participation in the Health Insurance Marketplaces.
- Consolidated HBR for the second quarter of 2014, was 88.9%, compared to 88.4% in the same period in 2013, reflecting an increase in higher acuity membership. Consolidated HBR decreased from 89.3% in the first quarter of 2014 due to normal seasonality.
- The following table compares the results for new business and existing business for the quarters ended June 30,:
|
2014 |
2013 |
||
|
Premium and Service Revenue |
|||
|
New business |
26% |
18% |
|
|
Existing business |
74% |
82% |
|
|
HBR |
|||
|
New business |
91.8% |
90.4% |
|
|
Existing business |
87.9% |
88.0% |
- Consolidated G&A expense ratio for the second quarter of 2014 was 8.6%, compared to 8.9% in the prior year. The year over year decrease reflects the leveraging of expenses over higher revenue in 2014. The 2013 G&A expense ratio also includes the impact of $0.07 per diluted share of AcariaHealth transaction costs which increased the 2013 G&A expense ratio by approximately 20 basis points.
- Earnings from operations were $92.7 million in the second quarter of 2014 compared to $68.7 million in the second quarter of 2013. Net earnings attributable to Centene Corporation were $47.2 million in the second quarter of 2014, compared to $40.3 million in the second quarter of 2013.
- Diluted earnings per share of $0.79, or $0.95 excluding a $0.16 impact associated with the health insurer fee, compared to $0.71 in 2013.
Balance Sheet and Cash Flow
At June 30, 2014, the Company had cash, investments and restricted deposits of $2,402.5 million, including $50.3 million held by its unregulated entities. Medical claims liabilities totaled $1,394.1 million, representing 42.9 days in claims payable. Total debt was $891.0 million, which includes $70.0 million of borrowings on the $500 million revolving credit facility at quarter end. Debt to capitalization was 35.5% at June 30, 2014, excluding the $71.4 million non-recourse mortgage note. Cash flow from operations for the three months ended June 30, 2014, was $159.4 million, or 3.3 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, March 31, 2014 |
42.6 |
|
Timing of claim payments |
0.3 |
|
Days in claims payable, June 30, 2014 |
42.9 |
Outlook
The table below depicts the Company's annual guidance for 2014.
|
Full Year 2014 |
||||||
|
Low |
High |
|||||
|
Premium and Service Revenues (in millions) |
$ |
15,000 |
$ |
15,500 |
||
|
Diluted EPS |
$ |
3.70 |
$ |
3.90 |
||
|
Consolidated Health Benefits Ratio |
88.7% |
89.2% |
||||
|
General & Administrative expense ratio |
8.5% |
9.0% |
||||
|
Effective Tax Rate |
49.5% |
50.5% |
||||
|
Diluted Shares Outstanding (in thousands) |
60,000 |
60,400 |
||||
The guidance in the table above includes the impact of the Illinois CCHHS contract award, the Louisiana transaction with CHS as well as the acquisition of Ribera Salud. The diluted EPS guidance for 2014 includes approximately $0.12 of transaction costs associated with CHS and Ribera Salud, as well as $0.06 related to the USMM acquisition recorded in the first quarter.
Conference Call
As previously announced, the Company will host a conference call Tuesday, July 22, 2014, at 8:30 A.M. (Eastern Time) to review the financial results for the second quarter ended June 30, 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 1-866-739-7850 in the U.S. and Canada; +1-412-902-6577 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/10048780 , to receive a dial-in number upon registration. 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, July 21, 2015, at the aforementioned URL. In addition, a digital audio playback will be available until 9:00 AM Eastern Time on Wednesday, July 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 10048780.
Other Information
The discussion in the third bullet under the heading "Statement of Operations: Three Months Ended June 30, 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, including the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act and any regulations enacted thereunder; changes in expected contract start dates; changes in expected closing dates, estimated purchase price and accretion for acquisitions; inflation; provider and state contract changes; new technologies; advances in medicine; reduction in provider payments by governmental payors; major epidemics; disasters and numerous other factors affecting the delivery and cost of healthcare; the expiration, cancellation or suspension of our Medicare or Medicaid managed care contracts by federal or state governments; the outcome of pending legal proceedings; availability of debt and equity financing, on terms that are favorable to us; and general economic and market conditions, as well as those factors disclosed in the Company's publicly filed documents.
[Tables Follow]
|
CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) |
|||||
|
June 30,
2014
|
December 31,
2013
|
||||
|
ASSETS |
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents of continuing operations |
$ |
1,199,784 |
$ |
974,304 |
|
|
Cash and cash equivalents of discontinued operations |
59,013 |
63,769 |
|||
|
Total cash and cash equivalents |
1,258,797 |
1,038,073 |
|||
|
Premium and related receivables |
610,969 |
428,570 |
|||
|
Short term investments |
127,348 |
102,126 |
|||
|
Other current assets |
313,946 |
217,661 |
|||
|
Other current assets of discontinued operations |
13,826 |
13,743 |
|||
|
Total current assets |
2,324,886 |
1,800,173 |
|||
|
Long term investments |
996,965 |
791,900 |
|||
|
Restricted deposits |
78,442 |
46,946 |
|||
|
Property, software and equipment, net |
423,905 |
395,407 |
|||
|
Goodwill |
642,613 |
348,432 |
|||
|
Intangible assets, net |
81,359 |
48,780 |
|||
|
Other long term assets |
107,967 |
59,357 |
|||
|
Long term assets of discontinued operations |
26,430 |
38,305 |
|||
|
Total assets |
$ |
4,682,567 |
$ |
3,529,300 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
|
Current liabilities: |
|||||
|
Medical claims liability |
$ |
1,394,115 |
$ |
1,111,709 |
|
|
Accounts payable and accrued expenses |
670,343 |
375,862 |
|||
|
Unearned revenue |
22,472 |
38,191 |
|||
|
Current portion of long term debt |
6,135 |
3,065 |
|||
|
Current liabilities of discontinued operations |
24,642 |
30,294 |
|||
|
Total current liabilities |
2,117,707 |
1,559,121 |
|||
|
Long term debt |
884,890 |
665,697 |
|||
|
Other long term liabilities |
73,897 |
60,015 |
|||
|
Long term liabilities of discontinued operations |
451 |
1,028 |
|||
|
Total liabilities |
3,076,945 |
2,285,861 |
|||
|
Commitments and contingencies |
|||||
|
Redeemable noncontrolling interest |
119,671 |
— |
|||
|
Stockholders' equity: |
|||||
|
Common stock, $.001 par value; authorized 200,000,000 shares; 61,265,156 issued and 57,837,919 outstanding at June 30, 2014, and 58,673,215 issued and 55,319,239 outstanding at December 31, 2013 |
61 |
59 |
|||
|
Additional paid-in capital |
754,637 |
594,326 |
|||
|
Accumulated other comprehensive income: |
|||||
|
Unrealized gain (loss) on investments, net of tax |
2,214 |
(2,620) |
|||
|
Retained earnings |
813,765 |
731,919 |
|||
|
Treasury stock, at cost (3,427,237 and 3,353,976 shares, respectively) |
(94,512) |
(89,643) |
|||
|
Total Centene stockholders' equity |
1,476,165 |
1,234,041 |
|||
|
Noncontrolling interest |
9,786 |
9,398 |
|||
|
Total stockholders' equity |
1,485,951 |
1,243,439 |
|||
|
Total liabilities and stockholders' equity |
$ |
4,682,567 |
$ |
3,529,300 |
|
|
CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share data) (Unaudited) |
|||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
2014 |
2013 |
2014 |
2013 |
||||||||
|
Revenues: |
|||||||||||
|
Premium |
$ |
3,331,058 |
$ |
2,413,312 |
$ |
6,401,945 |
$ |
4,801,951 |
|||
|
Service |
410,029 |
105,599 |
691,203 |
138,793 |
|||||||
|
Premium and service revenues |
3,741,087 |
2,518,911 |
7,093,148 |
4,940,744 |
|||||||
|
Premium tax and health insurer fee |
282,613 |
91,628 |
390,440 |
195,277 |
|||||||
|
Total revenues |
4,023,700 |
2,610,539 |
7,483,588 |
5,136,021 |
|||||||
|
Expenses: |
|||||||||||
|
Medical costs |
2,960,101 |
2,134,283 |
5,702,554 |
4,288,829 |
|||||||
|
Cost of services |
365,888 |
93,300 |
608,172 |
118,365 |
|||||||
|
General and administrative expenses |
321,042 |
223,459 |
616,554 |
426,755 |
|||||||
|
Premium tax expense |
252,669 |
90,760 |
330,947 |
193,735 |
|||||||
|
Health insurer fee expense |
31,328 |
— |
62,655 |
— |
|||||||
|
Total operating expenses |
3,931,028 |
2,541,802 |
7,320,882 |
5,027,684 |
|||||||
|
Earnings from operations |
92,672 |
68,737 |
162,706 |
108,337 |
|||||||
|
Other income (expense): |
|||||||||||
|
Investment and other income |
7,252 |
4,078 |
11,976 |
8,342 |
|||||||
|
Interest expense |
(8,604) |
(7,033) |
(15,627) |
(13,658) |
|||||||
|
Earnings from continuing operations, before income tax expense |
91,320 |
65,782 |
159,055 |
103,021 |
|||||||
|
Income tax expense |
44,874 |
25,966 |
79,429 |
40,657 |
|||||||
|
Earnings from continuing operations, net of income tax expense |
46,446 |
39,816 |
79,626 |
62,364 |
|||||||
|
Discontinued operations, net of income tax expense (benefit) of $1,461, $(698), $1,453, and $(350), respectively |
1,680 |
(805) |
847 |
(442) |
|||||||
|
Net earnings |
48,126 |
39,011 |
80,473 |
61,922 |
|||||||
|
Noncontrolling interest |
(737) |
(473) |
(1,373) |
(564) |
|||||||
|
Net earnings attributable to Centene Corporation |
$ |
48,863 |
$ |
39,484 |
$ |
81,846 |
$ |
62,486 |
|||
|
Amounts attributable to Centene Corporation common shareholders: |
|||||||||||
|
Earnings from continuing operations, net of income tax expense |
$ |
47,183 |
$ |
40,289 |
$ |
80,999 |
$ |
62,928 |
|||
|
Discontinued operations, net of income tax expense (benefit) |
1,680 |
(805) |
847 |
(442) |
|||||||
|
Net earnings |
$ |
48,863 |
$ |
39,484 |
$ |
81,846 |
$ |
62,486 |
|||
|
Net earnings (loss) per common share attributable to Centene Corporation: |
|||||||||||
|
Basic: |
|||||||||||
|
Continuing operations |
$ |
0.82 |
$ |
0.74 |
$ |
1.41 |
$ |
1.18 |
|||
|
Discontinued operations |
0.03 |
(0.02) |
0.01 |
(0.01) |
|||||||
|
Basic earnings per common share |
$ |
0.85 |
$ |
0.72 |
$ |
1.42 |
$ |
1.17 |
|||
|
Diluted: |
|||||||||||
|
Continuing operations |
$ |
0.79 |
$ |
0.71 |
$ |
1.36 |
$ |
1.14 |
|||
|
Discontinued operations |
0.03 |
(0.01) |
0.01 |
(0.01) |
|||||||
|
Diluted earnings per common share |
$ |
0.82 |
$ |
0.70 |
$ |
1.37 |
$ |
1.13 |
|||
|
Weighted average number of common shares outstanding: |
|||||||||||
|
Basic |
57,758,683 |
54,529,036 |
57,622,039 |
53,449,077 |
|||||||
|
Diluted |
59,717,258 |
56,601,660 |
59,547,420 |
55,448,396 |
|||||||
|
CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||
|
Six Months Ended June 30, |
|||||
|
2014 |
2013 |
||||
|
Cash flows from operating activities: |
|||||
|
Net earnings |
$ |
80,473 |
$ |
61,922 |
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities |
|||||
|
Depreciation and amortization |
42,101 |
32,928 |
|||
|
Stock compensation expense |
22,750 |
16,955 |
|||
|
Deferred income taxes |
(11,258) |
10,715 |
|||
|
Changes in assets and liabilities |
|||||
|
Premium and related receivables |
(160,714) |
(71,230) |
|||
|
Other current assets |
28,826 |
(35,879) |
|||
|
Other assets |
(28,733) |
(38,191) |
|||
|
Medical claims liabilities |
284,134 |
111,625 |
|||
|
Unearned revenue |
(18,066) |
(12,068) |
|||
|
Accounts payable and accrued expenses |
160,128 |
(1,488) |
|||
|
Other operating activities |
12,248 |
5,650 |
|||
|
Net cash provided by operating activities |
411,889 |
80,939 |
|||
|
Cash flows from investing activities: |
|||||
|
Capital expenditures |
(41,568) |
(30,057) |
|||
|
Purchases of investments |
(475,347) |
(537,590) |
|||
|
Sales and maturities of investments |
221,342 |
358,971 |
|||
|
Investments in acquisitions, net of cash acquired |
(94,004) |
(66,832) |
|||
|
Net cash used in investing activities |
(389,577) |
(275,508) |
|||
|
Cash flows from financing activities: |
|||||
|
Proceeds from exercise of stock options |
3,670 |
3,867 |
|||
|
Proceeds from borrowings |
1,145,000 |
30,000 |
|||
|
Payment of long-term debt |
(945,892) |
(10,118) |
|||
|
Proceeds from stock offering |
— |
15,239 |
|||
|
Excess tax benefits from stock compensation |
1,115 |
1,113 |
|||
|
Common stock repurchases |
(4,869) |
(1,105) |
|||
|
Contribution from noncontrolling interest |
5,407 |
3,920 |
|||
|
Debt issue costs |
(6,019) |
(3,587) |
|||
|
Net cash provided by financing activities |
198,412 |
39,329 |
|||
|
Net increase (decrease) in cash and cash equivalents |
220,724 |
(155,240) |
|||
|
Cash and cash equivalents, beginning of period |
1,038,073 |
843,952 |
|||
|
Cash and cash equivalents, end of period |
$ |
1,258,797 |
$ |
688,712 |
|
|
Supplemental disclosures of cash flow information: |
|||||
|
Interest paid |
$ |
16,439 |
$ |
15,170 |
|
|
Income taxes paid |
110,118 |
21,694 |
|||
|
Equity issued in connection with acquisition |
132,371 |
75,438 |
|||
|
CENTENE CORPORATION SUPPLEMENTAL FINANCIAL DATA FROM CONTINUING OPERATIONS |
||||||||||||||
|
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
||||||||||
|
2014 |
2014 |
2013 |
2013 |
2013 |
||||||||||
|
AT-RISK MEMBERSHIP |
||||||||||||||
|
Managed Care: |
||||||||||||||
|
Arizona |
7,000 |
7,100 |
7,100 |
23,700 |
23,200 |
|||||||||
|
Arkansas |
31,100 |
16,400 |
— |
— |
— |
|||||||||
|
California |
131,100 |
118,100 |
97,200 |
— |
— |
|||||||||
|
Florida |
313,800 |
230,300 |
222,000 |
217,800 |
216,200 |
|||||||||
|
Georgia |
373,000 |
331,400 |
318,700 |
314,100 |
316,600 |
|||||||||
|
Illinois |
29,500 |
22,400 |
22,300 |
22,800 |
18,000 |
|||||||||
|
Indiana |
200,500 |
198,700 |
195,500 |
198,400 |
200,000 |
|||||||||
|
Kansas |
146,100 |
145,000 |
139,900 |
137,700 |
137,500 |
|||||||||
|
Louisiana |
148,600 |
149,800 |
152,300 |
152,600 |
153,700 |
|||||||||
|
Massachusetts |
47,200 |
50,800 |
22,600 |
23,200 |
15,200 |
|||||||||
|
Minnesota |
9,400 |
9,400 |
— |
— |
— |
|||||||||
|
Mississippi |
97,400 |
85,400 |
78,300 |
76,900 |
77,300 |
|||||||||
|
Missouri |
58,700 |
58,100 |
59,200 |
58,200 |
58,800 |
|||||||||
|
New Hampshire |
39,500 |
37,100 |
33,600 |
— |
— |
|||||||||
|
Ohio |
225,900 |
181,800 |
173,200 |
170,900 |
156,700 |
|||||||||
|
South Carolina |
101,800 |
96,300 |
91,900 |
89,400 |
88,800 |
|||||||||
|
Tennessee |
21,300 |
21,100 |
20,700 |
20,400 |
— |
|||||||||
|
Texas |
921,500 |
904,000 |
935,100 |
957,300 |
960,400 |
|||||||||
|
Washington |
193,800 |
151,700 |
82,100 |
77,100 |
67,600 |
|||||||||
|
Wisconsin |
67,300 |
70,800 |
71,500 |
72,000 |
73,400 |
|||||||||
|
TOTAL |
3,164,500 |
2,885,700 |
2,723,200 |
2,612,500 |
2,563,400 |
|||||||||
|
Medicaid |
2,385,500 |
2,169,100 |
2,054,700 |
1,953,300 |
1,953,600 |
|||||||||
|
CHIP & Foster Care |
261,800 |
269,200 |
275,100 |
274,900 |
273,200 |
|||||||||
|
ABD & Medicare |
329,700 |
300,500 |
305,300 |
302,000 |
289,800 |
|||||||||
|
HIM |
75,700 |
39,700 |
— |
— |
— |
|||||||||
|
Hybrid Programs |
17,000 |
14,400 |
19,000 |
19,600 |
22,400 |
|||||||||
|
LTC |
53,500 |
51,800 |
37,800 |
31,600 |
24,400 |
|||||||||
|
Correctional Services |
41,300 |
41,000 |
31,300 |
31,100 |
— |
|||||||||
|
TOTAL |
3,164,500 |
2,885,700 |
2,723,200 |
2,612,500 |
2,563,400 |
|||||||||
|
Specialty Services(a): |
||||||||||||||
|
Cenpatico Behavioral Health Arizona |
182,200 |
162,700 |
156,600 |
160,700 |
157,100 |
|||||||||
|
(a) Includes external membership only. |
||||||||||||||
|
REVENUE PER MEMBER PER MONTH(b) |
$ |
359 |
$ |
355 |
$ |
335 |
$ |
328 |
$ |
306 |
||||
|
CLAIMS(b) |
||||||||||||||
|
Period-end inventory |
745,400 |
808,500 |
622,200 |
698,900 |
703,400 |
|||||||||
|
Average inventory |
584,000 |
555,400 |
511,700 |
505,800 |
510,000 |
|||||||||
|
Period-end inventory per member |
0.24 |
0.28 |
0.23 |
0.27 |
0.27 |
|||||||||
|
(b) Revenue per member and claims information are presented for the Managed Care at-risk members. |
||||||||||||||
|
NUMBER OF EMPLOYEES |
10,500 |
9,500 |
8,800 |
8,200 |
7,900 |
|||||||||
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
||||||||||
|
DAYS IN CLAIMS PAYABLE (c) |
42.9 |
42.6 |
42.4 |
40.6 |
41.5 |
|||||||||
|
(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, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) |
||||||||||||||
|
Regulated |
$ |
2,352.3 |
$ |
2,166.4 |
$ |
1,870.6 |
$ |
1,612.9 |
$ |
1,502.9 |
||||
|
Unregulated |
50.3 |
49.3 |
44.7 |
37.6 |
33.8 |
|||||||||
|
TOTAL |
$ |
2,402.6 |
$ |
2,215.7 |
$ |
1,915.3 |
$ |
1,650.5 |
$ |
1,536.7 |
||||
|
DEBT TO CAPITALIZATION |
37.5% |
36.5% |
35.0% |
30.5% |
32.9% |
|||||||||
|
DEBT TO CAPITALIZATION EXCLUDING NON-RECOURSE DEBT(d) |
35.5% |
34.4% |
32.4% |
27.4% |
29.8% |
|||||||||
|
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 ($71.4 million at June 30, 2014). |
||||||||||||||
|
Operating Ratios: |
|||||||
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||
|
2014 |
2013 |
2014 |
2013 |
||||
|
Health Benefits Ratios: |
|||||||
|
Medicaid, CHIP, Foster Care & HIM |
84.7% |
88.4% |
85.8% |
89.6% |
|||
|
ABD, LTC & Medicare |
94.9 |
89.1 |
94.0 |
89.6 |
|||
|
Specialty Services |
80.4 |
82.6 |
84.0 |
83.0 |
|||
|
Total |
88.9 |
88.4 |
89.1 |
89.3 |
|||
|
Total General & Administrative Expense Ratio |
8.6% |
8.9% |
8.7% |
8.6% |
|||
|
MEDICAL CLAIMS LIABILITY (In thousands) |
|||
|
The changes in medical claims liability are summarized as follows: |
|||
|
Balance, June 30, 2013 |
$ |
972,641 |
|
|
Incurred related to: |
|||
|
Current period |
10,541,171 |
||
|
Prior period |
(132,805) |
||
|
Total incurred |
10,408,366 |
||
|
Paid related to: |
|||
|
Current period |
9,171,457 |
||
|
Prior period |
815,435 |
||
|
Total paid |
9,986,892 |
||
|
Balance, June 30, 2014 |
$ |
1,394,115 |
|
SOURCE Centene Corporation