Summary
Centene Corporation (CNC) demonstrated significant year-over-year growth in its third quarter 2014 report, driven by strong membership increases across its managed care segments. Total revenues surged by 55.7% to $4.35 billion for the quarter, and by 49.2% to $11.84 billion for the nine months ended September 30, 2014. This growth was fueled by strategic expansions in key states like Florida, Ohio, and Washington, participation in Health Insurance Marketplaces, and the acquisition of U.S. Medical Management. The company's financial performance reflects a robust expansion strategy, with total assets growing significantly to $5.45 billion as of September 30, 2014, up from $3.53 billion at the end of 2013. This asset growth is supported by substantial increases in both current and long-term assets, including significant goodwill resulting from recent acquisitions. Profitability also saw a healthy increase, with net earnings attributable to Centene Corporation rising 67.3% to $82.7 million for the third quarter. The company's strong operating cash flow of $853.7 million for the nine months ended September 30, 2014, underscores its ability to fund its aggressive growth initiatives.
Financial Highlights
51 data points| Revenue | $4.35B |
| Operating Expenses | $4.24B |
| Operating Income | $108.00M |
| Interest Expense | $9.00M |
| Net Income | $82.00M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 234.45M |
| Shares Outstanding (Diluted) | 242.73M |
Key Highlights
- 1Total revenues for the third quarter of 2014 reached $4.35 billion, a 55.7% increase year-over-year, reflecting strong membership growth and strategic expansions.
- 2Net earnings attributable to Centene Corporation for the third quarter of 2014 were $82.7 million, a substantial 67.3% increase compared to the prior year period.
- 3Managed care membership grew by 42% year-over-year to 3,705,300 at the end of the third quarter, driven by new contracts and market expansions.
- 4The company completed strategic acquisitions, including U.S. Medical Management (USMM) and a transaction involving Community Health Solutions of America, Inc. (CHS), which contributed to significant increases in goodwill and total assets.
- 5Operating cash flow for the first nine months of 2014 was strong at $853.7 million, indicating healthy cash generation to support growth.
- 6The Health Benefits Ratio (HBR) increased slightly to 89.7% in Q3 2014 from 87.8% in Q3 2013, attributed to a higher acuity membership mix.
- 7The company received a significant tax benefit of $0.33 per diluted share in Q3 2014 due to revised IRS regulations regarding compensation deduction limitations.