8-KEarnings & ResultsRegulation FD

Elevance Health, Inc. 8-K Report, Financial Results (Jan 13, 2014)

Filed January 13, 2014For Securities:ELV

Summary

Elevance Health, Inc. (then operating as WellPoint, Inc.) filed this Form 8-K on January 13, 2014, to provide updated financial guidance ahead of its official fourth-quarter and full-year 2013 earnings release scheduled for January 29, 2014. The company anticipates its full-year 2013 net income per diluted share to be $8.20, with an adjusted net income per diluted share of $8.52. This adjusted figure excludes certain net costs totaling $0.32 per share, which include items like net realized gains on investments, impairment losses, debt extinguishment costs, and acquisition-related expenses. Furthermore, WellPoint indicated that its year-end 2013 medical enrollment surpassed 35.6 million members. The company also expects its full-year operating revenue, benefit expense ratio, and selling, general, and administrative expense ratio to fall within previously issued guidance ranges. This proactive disclosure aims to inform investors about the company's expected financial performance before the detailed earnings announcement, signaling confidence in meeting projections despite a series of specific adjustments.

Key Highlights

  • 1WellPoint (now Elevance Health) provided an updated outlook for its full-year 2013 financial results.
  • 2The company expects full-year 2013 net income per diluted share to be $8.20.
  • 3Adjusted net income per diluted share for full-year 2013 is projected at $8.52, excluding $0.32 per share in net costs.
  • 4Key adjustments to net income include realized investment gains/losses, impairment charges, debt extinguishment costs, and acquisition expenses.
  • 5Year-end 2013 medical enrollment exceeded 35.6 million members.
  • 6Full-year 2013 operating revenue, benefit expense ratio, and SG&A expense ratio are anticipated to be within prior guidance.
  • 7Detailed 2013 financial results are scheduled for release on January 29, 2014.

Frequently Asked Questions

The primary purpose of this 8-K filing is to provide investors with an updated preview of WellPoint's (now Elevance Health) expected financial results for the full year 2013, ahead of the official earnings release on January 29, 2014. It also serves to disclose the anticipated year-end membership numbers.

WellPoint updated its expected full-year 2013 net income per diluted share ($8.20) and adjusted net income per diluted share ($8.52). The company also confirmed that its operating revenue, benefit expense ratio, and selling, general, and administrative expense ratio were expected to be within prior guidance ranges.

The $0.32 per share adjustment primarily consists of net realized gains on investments ($0.58), other-than-temporary impairment losses on investments ($0.21), loss on extinguishment of debt ($0.31), a tax benefit from a favorable tax election ($0.21), acquisition and integration related costs ($0.05), and an impairment charge related to 1-800 Contacts ($0.54). These items are detailed as net costs or benefits that are excluded for the adjusted figure.

WellPoint's medical enrollment at the end of 2013 was reported to be just over 35.6 million members.