8-KRegulation FD

Cigna Group 8-K Report, Regulation FD Disclosure (Feb 26, 2021)

Filed February 26, 2021For Securities:CI

Summary

This Form 8-K filing from Cigna Group (CI) on February 26, 2021, primarily serves to update investors on the company's financial outlook and strategic initiatives. Cigna officials reaffirmed their projected full-year 2021 consolidated adjusted revenues of at least $165 billion and consolidated adjusted income from operations of at least $6.95 billion (or $20.00 per share). This outlook incorporates an estimated $1.25 per share net unfavorable impact from COVID-19, future share repurchases, anticipated dividends, and the impact of an announced agreement to acquire MDLive, Inc. The company also provided details on its non-GAAP financial measures, 'adjusted revenues' and 'adjusted income from operations,' explaining their components and rationale for management's use in assessing underlying business performance. While not providing a forward-looking reconciliation to GAAP measures due to inherent uncertainties in predicting certain items, Cigna emphasizes these adjusted measures are key to understanding operational trends. The filing also touches upon Cigna's capital deployment strategies, including its intention to pay regular quarterly dividends and execute share repurchases, subject to market conditions and board approval.

Key Highlights

  • 1Reaffirmed 2021 outlook: projected full-year consolidated adjusted revenues of at least $165 billion.
  • 2Reaffirmed 2021 outlook: projected full-year consolidated adjusted income from operations of at least $6.95 billion, or $20.00 per share.
  • 3Outlook includes an estimated $1.25 per share net unfavorable impact from COVID-19.
  • 4Outlook incorporates the impact of the announced agreement to acquire MDLive, Inc.
  • 5Details provided on non-GAAP measures: 'adjusted revenues' and 'adjusted income from operations'.
  • 6Intends to pay regular quarterly dividends and engage in share repurchases, subject to market conditions and board approval.
  • 7Management expects to participate in investor and analyst meetings over the coming weeks to discuss these projections.

Frequently Asked Questions

Cigna's officials reaffirmed their projected full-year 2021 consolidated adjusted revenues of at least $165 billion and consolidated adjusted income from operations of at least $6.95 billion, which translates to at least $20.00 per share. This outlook includes anticipated impacts from COVID-19, share repurchases, dividends, and the acquisition of MDLive, Inc.

Cigna defines 'adjusted revenues' as total revenues excluding net realized investment results from equity method investments and special items. 'Adjusted income from operations' is defined as shareholders' net income excluding net realized investment results, amortization of acquired intangible assets, and special items. Management uses these non-GAAP measures to present underlying business performance and analyze operational trends.

The reaffirmed 2021 outlook includes an estimated net unfavorable impact of approximately $1.25 per share due to COVID-19.

The announced agreement to acquire MDLive, Inc. is incorporated into Cigna's 2021 financial outlook. This strategic transaction is expected to have an impact on the company's reported financial results for the year.