Summary
Centene Corporation reported solid revenue growth in the first quarter of 2010, driven by an increase in premium and service revenues of 12.5% year-over-year, reaching $1.022 billion. This growth was primarily fueled by a significant rise in at-risk managed care membership, which increased by 17.7% compared to the prior year. The company successfully navigated a complex regulatory environment, including the initial impact of the Affordable Care Act, and completed the sale of its New Jersey health plan (UHP), which was classified as discontinued operations. Despite a net cash outflow from operating activities, the company demonstrated strong financial management through a stock offering that strengthened its balance sheet and facilitated debt repayment, positioning it for continued expansion.
Financial Highlights
27 data points| Revenue | $1.07B |
| Operating Expenses | $1.04B |
| Operating Income | $29.61M |
| Interest Expense | $3.81M |
| Net Income | $24.00M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.12 |
| Shares Outstanding (Basic) | 189.04M |
| Shares Outstanding (Diluted) | 195.05M |
Key Highlights
- 1Total revenues increased by 14.6% to $1.069 billion for the three months ended March 31, 2010, compared to $932.4 million for the same period in 2009.
- 2Premium and service revenues grew by 12.5% to $1.022 billion, largely due to a 17.7% increase in at-risk managed care membership year-over-year.
- 3The company completed the sale of University Health Plans, Inc. (UHP), its New Jersey health plan, recognizing a pre-tax gain of $8.2 million, with operations classified as discontinued.
- 4Net earnings attributable to Centene Corporation increased by 30.0% to $24.0 million for the quarter, compared to $18.5 million in the prior year.
- 5Diluted earnings per common share rose to $0.49 from $0.42 in the comparable period of 2009, an increase of 16.7%.
- 6In March 2010, Centene completed a stock offering, raising approximately $104.6 million in net proceeds, which were used in part to repay outstanding debt.
- 7The Health Benefits Ratio (HBR) was 84.0% for the first quarter of 2010, a slight increase from 83.5% in the prior year, indicating well-managed medical costs relative to revenues.