ST. LOUIS, Feb. 9 /PRNewswire-FirstCall/ -- Centene Corporation today announced its financial results for the quarter and year ended December 31, 2009. The results of operations for our New Jersey health plan, University Health Plans, are classified as discontinued operations. The discussions below, with the exception of cash flow information, are in the context of continuing operations and all financial ratios exclude premium taxes.
Fourth Quarter Highlights
Other Events
Michael F. Neidorff, Centene’s Chairman and Chief Executive Officer, stated, “Our commitment to quality and fundamentals drove solid 2009 results and we endeavor to maintain this momentum in 2010.”
The following table depicts membership in Centene’s managed care organizations, by state, at December 31, 2009 and 2008:
The following table depicts membership in Centene’s managed care organizations, by member category, at December 31, 2009 and 2008:
Statement of Operations
Balance Sheet and Cash Flow
At December 31, 2009, the Company had cash and investments of $986.1 million, including $949.9 million held by its regulated entities and $36.2 million held by its unregulated entities. Medical claims liabilities totaled $470.9 million, representing 50.1 days in claims payable, an increase of 1.2 days from September 30, 2009. Total debt was $307.7 million and debt to capitalization was 33.2%. Year to date cash flow from operations was $248.2 million.
Days in claims payable have been adjusted to reflect the inclusion of pharmacy claims payable. A reconciliation of the Company’s change in days in claims payable from the immediately preceding quarter-end is presented below:
Outlook
The table below depicts the Company’s annual guidance from continuing operations for 2010:
The Company is adjusting the EPS range of its earnings guidance to reflect the issuance of 5.75 million common shares of stock related to the Company’s recently completed stock offering, which is partially offset by a reduction in interest expense from the pay down of our revolving credit facility.
Conference Call
As previously announced, the Company will host a conference call Tuesday, February 9, 2010, at 8:30 A.M. (Eastern Time) to review the financial results for the fourth quarter ended December 31, 2009, and to discuss its business outlook. Michael F. Neidorff and William N. Scheffel will host the conference call. Investors and other interested parties are invited to listen to the conference call by dialing 800-273-1254 in the U.S. and Canada; 973-638-3440 from abroad, or via a live, audio webcast on the Company’s website at www.centene.com, under the Investors section. A replay will be available for on-demand listening shortly after the completion of the call until 11:59 PM (Eastern Time) on Tuesday, February 23, 2010, at the aforementioned URL, or by dialing 800-642-1687 in the U.S. and Canada, or 706-645-9291 from abroad, and entering access code 51681793.
About Centene Corporation
Centene Corporation is a leading multi-line healthcare enterprise that provides programs and related services to individuals receiving benefits under Medicaid, including the Children’s Health Insurance Program (CHIP), as well as Aged, Blind, or Disabled (ABD), Foster Care, Long-Term Care and Medicare (Special Needs Plans). The Company operates local health plans and offers a wide range of health insurance solutions to individuals and the rising number of uninsured Americans. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, life and health management, managed vision, telehealth services, pharmacy benefits management and medication adherence. Information regarding Centene is available via the Internet at www.centene.com.
The information provided in this press release contains forward-looking statements that relate to future events and future financial performance of Centene. Subsequent events and developments may cause the Company’s estimates to change. The Company disclaims any obligation to update this forward-looking financial information in the future. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause Centene’s or its industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Actual results may differ from projections or estimates due to a variety of important factors, including Centene’s ability to accurately predict and effectively manage health benefits and other operating expenses, competition, changes in healthcare practices, changes in federal or state laws or regulations, inflation, provider contract changes, new technologies, reduction in provider payments by governmental payors, major epidemics, disasters and numerous other factors affecting the delivery and cost of healthcare. The expiration, cancellation or suspension of Centene’s Medicaid Managed Care contracts by state governments would also negatively affect Centene.
CONTACT: Investor Relations, Edmund E. Kroll, Jr., Senior Vice President,
Finance & Investor Relations, +1-212-759-0382, or Media, Toni Simonetti,
Senior Vice President, Public Affairs, +1-314-725-4477, both of Centene
Corporation
Web site: http://www.centene.com/
