01—Abstract
Summary
Summary of the 10-K filed February 22, 2012. Cited figures are marked; the original filing is the authoritative source.
Elevance Health, Inc. (formerly WellPoint, Inc.) reported strong financial performance for the fiscal year ended December 31, 2011.
The company experienced a 3.7% increase in total operating revenue to $59.9 billiona, driven by premium rate increases and membership growth in its Senior business. Net income, however, saw a slight decrease of 8.3% to $2.6 billion, primarily due to lower operating results in the Consumer segment, partially offset by improvements in the Commercial and Other segments. Despite the dip in net income, diluted earnings per share (EPS) rose by 4.5% to $7.25, aided by a reduction in outstanding shares due to a robust share repurchase program.
The company's strategic acquisition of CareMore in August 2011 positions it for future growth in the senior care market. Management highlighted a commitment to enhancing member value through innovative care management programs and technology investments. Looking ahead, Elevance Health aims to drive growth organically and through strategic acquisitions, focusing on earnings per share growth and efficient capital deployment.
02—Key points
Key Highlights
- Total operating revenue increased by 3.7% to $59.9 billion in 2011.
- Net income decreased by 8.3% to $2.6 billion, impacted by lower performance in the Consumer segment.
- Diluted EPS increased by 4.5% to $7.25, benefiting from share repurchases.
- Acquisition of CareMore Health Group, Inc. completed in August 2011, strengthening senior care offerings.
- Total medical membership grew by 2.8% to 34.3 million members.
- Company continued to return capital to shareholders through dividends and share repurchases.
- Medical cost trend was estimated at approximately 7% for 2011, primarily driven by unit costs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Elevance Health, Inc. kept $0.04.
- Revenue$60.71B100.0%
- Cost of revenue$-00.0%
- Gross profit$60.71B100.0%
- Operating costs−$56.93B93.8%
- Operating income$3.78B6.2%
- Interest, other & tax−$1.14B1.9%
- Net income$2.65B4.4%
Where FY2011 revenue went
$60.71B- Other operating costs: $48.49B, 80% of revenue
- SG&A: $8.44B, 14% of revenue
- Net income: $2.65B, 4.4% of revenue
- Cost of revenue: $0, 0.0% of revenue
- Interest, other & tax: $1.14B, 1.9% of revenue
Kept 4.4% as net incomeCost of revenue $0 · 0.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 22, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $60.71B$58.70B | +3.4% |
| Cost of Revenue | $0$0 | — |
| Gross Profit | $60.71B$58.70B | +3.4% |
| SG&A Expenses | $8.44B$8.73B | −3.4% |
| Operating Income | $3.78B$4.08B | −7.2% |
| Interest Expense | $430.30M$418.90M | +2.7% |
| Net Income | $2.65B$2.89B | −8.3% |
| EPS (Basic) | $7.35$7.03 | +4.6% |
| EPS (Diluted) | $7.25$6.94 | +4.5% |
| Shares Outstanding (Basic) | 360.20M410.90M | −12.3% |
| Shares Outstanding (Diluted) | 365.10M415.80M | −12.2% |
05—Questions
Frequently Asked Questions
What was the company's revenue and net income performance in 2011?
In 2011, Elevance Health (WellPoint) reported total operating revenue of $59.9 billion, an increase of 3.7% from 2010. Net income decreased by 8.3% to $2.6 billion, primarily due to lower operating results in the Consumer segment, partially offset by improvements in other segments.
How did the acquisition of CareMore impact the company?
The acquisition of CareMore, completed in August 2011, was a strategic move to enhance the company's offerings in the senior care market. CareMore focuses on proactive, integrated, and individualized health care for seniors, and its inclusion is expected to support future growth opportunities.
What is the company's strategy for future growth?
Elevance Health plans to achieve future growth through a combination of organic growth initiatives, strategic acquisitions, and efficient use of capital. The company aims to leverage its scale, technology, and diverse product portfolio to capitalize on new opportunities in existing and new markets.
How did the company manage its capital in 2011?
In 2011, Elevance Health continued its capital return strategy by initiating quarterly dividends and actively repurchasing shares under its common stock repurchase program. The company also used capital for strategic acquisitions, such as CareMore.
06—Continue