Summary
Cigna Group (CI) filed an 8-K on December 30, 2019, primarily to reaffirm its projected full-year 2019 consolidated adjusted income from operations. Management expects this figure to remain within the previously announced range of $6.38 billion to $6.46 billion. This reaffirmation comes as company officials are scheduled to participate in investor and analyst meetings over the upcoming weeks. The filing also provides a detailed, though non-GAAP, definition of "adjusted income from operations" and reiterates the importance of this metric for understanding the underlying business performance, while also cautioning that it is not a direct substitute for GAAP measures and cannot be reconciled on a forward-looking basis due to inherent uncertainties in predicting investment results and special items.
Key Highlights
- 1Cigna reaffirmed its projected full-year 2019 consolidated adjusted income from operations to be in the range of $6.38 billion to $6.46 billion.
- 2The company's management will be participating in investor and analyst meetings over the next several weeks.
- 3The filing includes a detailed explanation of "adjusted income from operations," a non-GAAP profitability measure used by management.
- 4This adjusted income metric excludes net realized investment results, amortization of acquired intangible assets, special items, and earnings from transitioning PBM clients.
- 5Management uses adjusted income from operations to assess underlying business results and operational trends.
- 6Cigna cautions that adjusted income from operations is not a GAAP measure and should not be viewed as a substitute for GAAP net income.
- 7Reconciliation of forward-looking adjusted income to GAAP net income is not provided due to the unpredictability of certain excluded items.