10-KPeriod: FY2011

CENTENE CORP Annual Report, Year Ended Dec 31, 2011

Filed February 21, 2012For Securities:CNC

Summary

Centene Corporation's 2011 10-K filing provides a comprehensive overview of its business operations, financial performance, and strategic direction as of February 21, 2012. The company, a significant player in the managed care industry, primarily serves government-sponsored healthcare programs, including Medicaid and Medicare. Investors should note the company's focus on expanding its market share within these government programs, which represent a substantial portion of its revenue. The filing also details the competitive landscape and regulatory environment impacting the company's operations and future growth prospects. Key areas of focus for investors include Centene's financial health, operational efficiency, and risk management strategies. The report outlines the company's revenue streams, cost structures, and profitability drivers, offering insights into its ability to generate value. Furthermore, potential risks, such as changes in government healthcare policy, competition, and operational challenges, are thoroughly discussed, providing a balanced view of the company's outlook and the factors that could influence its stock performance.

Financial Statements
Beta
Revenue$5.21B
Operating Expenses$5.01B
Operating Income$203.80M
Interest Expense$20.32M
Net Income$111.22M
EPS (Basic)$0.56
EPS (Diluted)$0.53
Shares Outstanding (Basic)200.80M
Shares Outstanding (Diluted)209.90M

Key Highlights

  • 1Centene Corporation's core business is providing managed healthcare services, with a strong emphasis on government-sponsored programs like Medicaid and Medicare.
  • 2The company has a strategy focused on expanding its presence and market share within these government programs.
  • 3The filing details the competitive environment and the significant impact of regulatory changes on the managed care industry.
  • 4Management's Discussion and Analysis (MD&A) section offers insights into the company's financial condition, results of operations, and key performance indicators.
  • 5Risk Factors section highlights potential challenges including regulatory risks, operational complexities, and competitive pressures.
  • 6The report includes detailed financial statements, providing a snapshot of the company's assets, liabilities, equity, and cash flows.
  • 7Information on corporate governance, executive compensation, and security ownership provides transparency regarding company leadership and shareholder interests.

Frequently Asked Questions

Centene's primary revenue drivers are derived from contracts with government agencies (federal and state) to provide managed healthcare services for programs such as Medicaid and Medicare. Revenue is generated through premium payments received for these covered lives.

Key risks include changes in government healthcare laws and regulations, reductions in government funding or reimbursement rates, intense competition within the managed care industry, reliance on a few key contracts, and operational challenges associated with managing large, diverse populations.

The filing indicates that Centene is exposed to market risks primarily related to interest rate fluctuations and potentially credit risk from its investments. The company aims to manage these risks through its investment policies and strategies to preserve capital and liquidity.

Centene's growth strategy appears to be centered on expanding its membership within existing government-sponsored programs, entering new states or markets, and potentially pursuing strategic acquisitions or partnerships to enhance its service offerings and geographic reach.