01—Abstract
Summary
Summary of the 10-K filed February 10, 2010. Cited figures are marked; the original filing is the authoritative source.
In fiscal year 2009, UnitedHealth Group (UNH) demonstrated resilience and growth across its diversified health and well-being businesses.
The company reported a significant increase in total revenues to $87.1 billiona, driven by strong performance in its Health Benefits segment, particularly within the public and senior markets, and continued expansion in its OptumHealth and Ingenix services. Despite facing a challenging economic environment and evolving healthcare regulations, UNH managed its medical costs effectively, resulting in improved earnings from operations to $6.4 billion and diluted net earnings per share of $3.24. The company also continued its commitment to shareholder returns through share repurchases and dividends.
UnitedHealth Group's strategic focus on simplifying healthcare administration, leveraging data and technology, and offering consumer-centric solutions positions it well for future growth. The company's robust financial position, evidenced by strong cash flows from operations and a solid balance sheet, allows for continued investment in its diverse business units and strategic acquisitions. Investors can look to UNH's diversified model as a strength, enabling it to navigate the complexities of the healthcare landscape while delivering value.
02—Key points
Key Highlights
- Total revenues increased to $87.1 billion in 2009, up from $81.2 billion in 2008, primarily driven by growth in the Health Benefits segment.
- Earnings from operations rose to $6.4 billion in 2009, a significant increase from $5.3 billion in 2008, indicating effective cost management and business performance.
- Diluted net earnings per common share were $3.24 for 2009, up from $2.40 in 2008, reflecting improved profitability.
- The company served approximately 70 million Americans as of December 31, 2009, highlighting its extensive reach.
- UnitedHealth Group completed several acquisitions in 2008 and 2009, including AIM Healthcare Services, Inc., Unison Health Plans, Sierra Health Services, Inc., and Fiserv Health, Inc., to strengthen its capabilities and market position.
- The company maintained a strong liquidity position with $24.4 billion in cash, cash equivalents, and investments as of December 31, 2009.
- UnitedHealth Group continued its share repurchase program, buying back approximately 74.3 million shares in 2009 for $1.8 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, UnitedHealth Group Inc kept $0.04.
- Revenue$87.14B100.0%
- Cost of revenue−$1.76B2.0%
- Gross profit$85.37B98.0%
- Operating costs−$79.01B90.7%
- Operating income$6.36B7.3%
- Interest, other & tax−$2.54B2.9%
- Net income$3.82B4.4%
Where FY2009 revenue went
$87.14B- Other operating costs: $66.28B, 76% of revenue
- SG&A: $12.73B, 15% of revenue
- Net income: $3.82B, 4.4% of revenue
- Cost of revenue: $1.76B, 2.0% of revenue
- Interest, other & tax: $2.54B, 2.9% of revenue
Kept 4.4% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 10, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $87.14B$81.19B | +7.3% |
| Cost of Revenue | $1.76B$1.48B | +19.3% |
| Gross Profit | $85.37B$79.71B | +7.1% |
| SG&A Expenses | $12.73B$13.10B | −2.8% |
| Operating Expenses | $80.78B$75.92B | +6.4% |
| Operating Income | $6.36B$5.26B | +20.8% |
| Interest Expense | $551.00M$639.00M | −13.8% |
| Net Income | $3.82B$2.98B | +28.4% |
| EPS (Basic) | $3.27$2.45 | +33.5% |
| EPS (Diluted) | $3.24$2.40 | +35.0% |
| Shares Outstanding (Basic) | 1.17B1.21B | −3.8% |
| Shares Outstanding (Diluted) | 1.18B1.24B | −5.0% |
05—Questions
Frequently Asked Questions
What were UnitedHealth Group's key financial performance indicators for fiscal year 2009?
In fiscal year 2009, UnitedHealth Group reported total revenues of $87.1 billion, earnings from operations of $6.4 billion, and diluted net earnings per share of $3.24. This represents growth over the previous year, with revenues increasing by 7% and earnings from operations by 21%.
How did UnitedHealth Group's different business segments perform in 2009?
The Health Benefits segment saw revenue growth primarily driven by the public and senior markets, while OptumHealth and Ingenix also reported revenue increases due to new business and acquisitions. Prescription Solutions experienced strong revenue growth, benefiting from Medicare Part D prescription drug plans and customer volume increases.
What is UnitedHealth Group's strategy for growth and managing risks?
UnitedHealth Group focuses on simplifying healthcare administration, leveraging technology and data, and offering consumer-centric solutions. The company employs strategies to manage medical costs through underwriting, product design, and care management programs. Acquisitions also play a role in strengthening its capabilities and market presence. Key risks highlighted include potential impacts from healthcare reforms, managing medical costs, and regulatory changes.
What is the company's financial health and how does it return value to shareholders?
The company demonstrated a strong financial position with robust operating cash flows and significant cash reserves. UnitedHealth Group returned value to shareholders through share repurchases, buying back $1.8 billion worth of stock in 2009, and maintained its dividend policy, paying a $0.03 per share dividend.
06—Continue