Summary
Elevance Health, Inc. (formerly WellPoint, Inc.) reported solid financial performance for the first quarter ended March 31, 2013. Total revenues grew by 14.7% to $17.7 billion, driven by a significant increase in operating revenue, largely attributable to the acquisition of Amerigroup in December 2012, alongside organic growth in premium revenue. Net income saw a modest increase of 3.4% to $885.2 million, resulting in diluted earnings per share (EPS) of $2.89, a 14.2% increase year-over-year. This EPS growth was bolstered by a reduction in outstanding shares due to the company's active share repurchase program. Operational highlights include strong growth in the Consumer segment, largely fueled by the Amerigroup acquisition, while the Commercial segment experienced a slight revenue dip due to strategic product adjustments and market pressures. The company maintained a solid benefit expense ratio and demonstrated improved efficiency with a lower selling, general, and administrative expense ratio. Despite a decrease in operating cash flow compared to the prior year, primarily due to timing of government payments, the company's liquidity remains strong, supported by significant cash and investments. Investors should note the company's continued focus on capital allocation through dividends and share repurchases, as well as ongoing efforts to manage healthcare cost trends.
Financial Highlights
52 data points| Revenue | $17.58B |
| Cost of Revenue | $65.00M |
| Gross Profit | $17.51B |
| SG&A Expenses | $2.33B |
| Operating Income | $1.36B |
| Interest Expense | $153.50M |
| Net Income | $885.20M |
| EPS (Basic) | $2.92 |
| EPS (Diluted) | $2.89 |
| Shares Outstanding (Basic) | 303.20M |
| Shares Outstanding (Diluted) | 305.90M |
Key Highlights
- 1Total revenues increased by 14.7% to $17.7 billion, driven by strong operating revenue growth.
- 2Net income rose 3.4% to $885.2 million, with diluted EPS growing 14.2% to $2.89.
- 3The acquisition of Amerigroup significantly contributed to the 51.5% increase in operating revenue for the Consumer segment.
- 4Operating cash flow decreased by $266.2 million to $956.9 million, mainly due to timing of government premium payments.
- 5The company's benefit expense ratio remained stable at 83.7%, and the SG&A expense ratio improved to 13.5%.
- 6Shareholders benefited from a 14.2% increase in dividends per share ($0.3750 in Q1 2013 vs. $0.2875 in Q1 2012).
- 7Total medical membership increased by 6.3% to 35.8 million, largely due to the Amerigroup acquisition adding state-sponsored members.