SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Magellan Health, Inc. (NASDAQ: MGLN) today announced financial results for the first quarter ended March 31, 2017, as summarized below:
“I’m pleased to report that we continued to see solid results in the first quarter. We are reiterating the 2017 guidance provided during our year-end earnings call in February.”
| Three Months Ended | |||||||||
| March 31 | |||||||||
| (In millions, except per share results) | |||||||||
| 2017 | 2016 | Chg | |||||||
| Net revenue | $ | 1,305.6 | $ | 1,117.0 | 16.9 | % | |||
| Net income | $ | 17.7 | $ | 13.2 | 34.1 | % | |||
| Segment profit * | $ | 69.8 | $ | 59.9 | 16.5 | % | |||
| Adjusted net income * | $ | 26.1 | $ | 19.4 | 34.5 | % | |||
| Per share results: | |||||||||
| Earnings per share (EPS) | $ | 0.74 | $ | 0.54 | 37.0 | % | |||
| Adjusted earnings per share * | $ | 1.09 | $ | 0.79 | 38.0 | % | |||
| * Refer to the Basis of Presentation for a discussion of non-GAAP financial measures. | |||||||||
Highlights Include:
- Net revenue increased 16.9 percent over first quarter of 2016 to $1.3 billion.
- Segment profit increased 16.5 percent over the first quarter of 2016 to $69.8 million.
- Net income was $17.7 million, an increase of 34.1 percent over the first quarter of 2016.
- Adjusted net income was $26.1 million, an increase of 34.5 percent from the first quarter of 2016, mainly due to higher segment profit and lower effective income tax rate.
- The Company is reiterating its 2017 annual guidance.
- On February 13, 2017, the Company announced that it entered into a contract with the Commonwealth of Virginia to participate statewide in the Commonwealth Coordinated Care Plus (CCC Plus) program. Magellan was selected through a competitive procurement and is one of six companies to contract with Virginia for this program. The CCC Plus program is Virginia’s initiative around Managed Long Term Services and Supports (MLTSS), and will serve approximately 214,000 individuals with complex care needs. The CCC Plus program will phase in MLTSS members by region from August 2017 through January 2018.
- On March 23, 2017, the Company announced that Magellan Behavioral Health of Pennsylvania earned full accreditation by the National Committee for Quality Assurance (NCQA).
- On April 3, 2017 the Company announced its release of the seventh annual Medical Pharmacy Trend Report, which continues to be a leading source for payers and other industry stakeholders to analyze high-cost injectable drugs paid under the medical benefit.
- On April 21, 2017, the Company announced that it achieved reaccreditation from URAC for Pharmacy Benefits Management for its commercial and managed care pharmacy lines of business.
- On June 22, the Company is hosting its 2017 Investor Day in New York City.
