Summary
Elevance Health, Inc. (formerly WellPoint, Inc.) reported its third-quarter 2012 financial results, showing a slight increase in net income to $691.2 million ($2.15 per diluted share) from $683.2 million ($1.90 per diluted share) in the prior year's quarter. While total operating revenue remained largely flat year-over-year at $15.13 billion, driven by a slight decrease in premium revenue offset by growth in other revenue streams including the recent acquisition of 1-800 CONTACTS, the company saw improvements in its Commercial segment's operating gain. Despite a decrease in overall medical membership by 2.5%, strategic growth was observed in Senior and State-Sponsored segments. The company is in the process of a significant pending acquisition of Amerigroup Corporation, expected to close in the fourth quarter of 2012, which is anticipated to bolster its capabilities in serving the Medicaid population. WellPoint also highlighted its ongoing commitment to capital return through share repurchases and dividends, though the company's debt-to-capital ratio increased to 36.3% from 29.6% due to increased debt financing for the Amerigroup acquisition.
Financial Highlights
53 data points| Revenue | $15.25B |
| Cost of Revenue | $66.50M |
| Gross Profit | $15.18B |
| SG&A Expenses | $2.08B |
| Operating Income | $1.00B |
| Interest Expense | $133.60M |
| Net Income | $691.20M |
| EPS (Basic) | $2.17 |
| EPS (Diluted) | $2.15 |
| Shares Outstanding (Basic) | 318.90M |
| Shares Outstanding (Diluted) | 321.90M |
Key Highlights
- 1Net income for the third quarter of 2012 increased slightly to $691.2 million, or $2.15 per diluted share, compared to $683.2 million, or $1.90 per diluted share, in the third quarter of 2011.
- 2Total operating revenue was relatively flat at $15.13 billion for the third quarter of 2012, compared to $15.16 billion in the prior year's quarter.
- 3The company completed the acquisition of 1-800 CONTACTS on June 20, 2012, contributing to an increase in 'Other revenue'.
- 4A significant pending acquisition of Amerigroup Corporation was announced on July 9, 2012, with an expected closing in the fourth quarter of 2012, aimed at expanding services in the Medicaid market.
- 5Total medical membership decreased by 2.5% to 33.49 million as of September 30, 2012, compared to 34.36 million in the prior year, primarily driven by declines in Local Group and National Accounts.
- 6The company's debt-to-capital ratio increased to 36.3% as of September 30, 2012, up from 29.6% at December 31, 2011, largely due to increased debt financing for the Amerigroup acquisition.
- 7WellPoint repurchased approximately $1.83 billion of its common stock in the first nine months of 2012.