Summary
Elevance Health, Inc. (formerly WellPoint, Inc.) reported solid financial performance for the year ended December 31, 2009, with total operating revenue of $60.8 billion, a slight decrease of 1% from the previous year, primarily attributed to membership declines in its Commercial and Consumer businesses due to economic conditions. However, net income saw a substantial increase of 91% to $4.7 billion, resulting in diluted earnings per share of $9.88, up from $4.76 in 2008. This significant profit growth was largely driven by a substantial $2.4 billion after-tax gain from the sale of its Prescription Benefits Management (PBM) business to Express Scripts. Strategically, the company continued to focus on growth through organic membership gains and strategic acquisitions, while also actively managing its capital through a robust share repurchase program. The company also highlighted its efforts to manage healthcare costs through various medical management programs and its commitment to improving the quality of care. Despite facing membership headwinds due to the economic downturn, Elevance Health demonstrated strong profitability, driven by operational efficiencies and a significant one-time gain from the PBM divestiture.
Financial Highlights
51 data points| Revenue | $64.94B |
| Cost of Revenue | $419.00M |
| Gross Profit | $64.52B |
| SG&A Expenses | $9.02B |
| Operating Income | $4.18B |
| Interest Expense | $447.40M |
| Net Income | $4.75B |
| EPS (Basic) | $9.96 |
| EPS (Diluted) | $9.88 |
| Shares Outstanding (Basic) | 476.30M |
| Shares Outstanding (Diluted) | 480.50M |
Key Highlights
- 1Total operating revenue for the year ended December 31, 2009, was $60.8 billion, a 1% decrease from 2008, largely due to membership declines in Commercial and Consumer segments impacted by economic conditions.
- 2Net income significantly increased by 91% to $4.7 billion for the year ended December 31, 2009, compared to $2.5 billion in 2008.
- 3Diluted earnings per share rose by 108% to $9.88 in 2009, up from $4.76 in 2008, primarily due to the gain on sale of the PBM business.
- 4The company completed the sale of its PBM business to Express Scripts for $4.7 billion in cash, realizing a pre-tax gain of $3.8 billion.
- 5Total medical membership decreased by 4% to 33.7 million members as of December 31, 2009, primarily due to declines in Local Group, State-Sponsored, Individual, and Senior businesses.
- 6The company repurchased approximately 57.3 million shares of its common stock for $2.6 billion during 2009 as part of its ongoing capital return strategy.
- 7Elevance Health faced regulatory scrutiny regarding its Medicare Advantage and Medicare Part D products, resulting in a suspension from marketing and enrollment, which was subsequently lifted, though eligibility for certain low-income subsidy beneficiaries was still pending.