10-KPeriod: FY2010

CENTENE CORP Annual Report, Year Ended Dec 31, 2010

Filed February 22, 2011For Securities:CNC

Summary

Centene Corporation's 2011 10-K filing provides a comprehensive overview of its operations as a diversified healthcare company, primarily focused on government-sponsored healthcare programs. The company operates in a dynamic and highly regulated environment, with a significant portion of its revenue derived from Medicaid and Medicare programs. Investors should note Centene's emphasis on strategic growth, including potential acquisitions and expansion into new markets, alongside its efforts to manage regulatory changes and operational challenges inherent in the healthcare sector. The filing highlights Centene's commitment to serving vulnerable populations and its role in the evolving landscape of healthcare delivery. Key areas of focus for investors include the company's revenue streams, profitability drivers, and its ability to navigate the complexities of government healthcare contracts. Understanding the risk factors, such as competitive pressures, government policy shifts, and healthcare reform impacts, is crucial for assessing the company's future performance and stability.

Financial Highlights

51 data points
Beta

Revenue

$4.45B

Net Income

$94.84M

2.1% Net Margin

EPS (Diluted)

$0.47

Total Assets

$1.94B

Cash & Equivalents

$433.91M

Free Cash Flow

$50.38M

Financial Statements
Beta
Revenue$4.45B
Operating Expenses$4.29B
Operating Income$157.07M
Interest Expense$17.99M
Net Income$94.84M
EPS (Basic)$0.49
EPS (Diluted)$0.47
Shares Outstanding (Basic)195.02M
Shares Outstanding (Diluted)201.79M

Key Highlights

  • 1Centene Corporation is a leading provider of government-sponsored healthcare programs, including Medicaid and Medicare.
  • 2The company's business model is heavily reliant on government contracts and subject to regulatory changes.
  • 3Strategic growth initiatives, including market expansion and potential acquisitions, are a key focus for the company.
  • 4Risk factors include intense competition, changes in healthcare policy and regulations, and operational challenges.
  • 5The filing details the company's financial condition, results of operations, and market risk disclosures.
  • 6Emphasis on serving vulnerable populations underscores the company's social impact and market niche.

Frequently Asked Questions

Centene Corporation's primary business is the operation of government-sponsored healthcare programs, with significant revenue derived from contracts with state and federal agencies for Medicaid and Medicare programs. They also offer other managed care services.

Key risks include intense competition within the managed care industry, potential changes in government healthcare laws and regulations (such as Medicare and Medicaid program rules), the ability to effectively manage healthcare costs and quality, and integration risks associated with any potential acquisitions.

Centene focuses on organic growth by expanding its service offerings and geographic reach within existing government programs. The company also actively seeks strategic acquisitions and partnerships to enhance its market position and service capabilities.

Government contracts are the cornerstone of Centene's business, representing the vast majority of its revenue. Changes in contract terms, reimbursement rates, or program eligibility can have a material impact on the company's financial results.