ST. LOUIS, April 25, 2017 /PRNewswire/ -- Centene Corporation (NYSE: CNC) announced today its financial results for the first quarter ended March 31, 2017, reporting diluted earnings per share (EPS) of $0.79, and Adjusted Diluted EPS of $1.12. A summary of diluted EPS is highlighted below:
GAAP diluted EPS | $ | 0.79 | |
Amortization of acquired intangible assets | 0.14 | ||
Health Net acquisition related expenses | 0.02 | ||
Penn Treaty assessment expense | 0.17 | ||
Adjusted Diluted EPS | $ | 1.12 | |
Our previous annual guidance included $0.20 per diluted share of conservatism associated with lower margins on the Health Insurance Marketplace business. Due to the performance of the marketplace business in the first quarter of 2017, $0.04 of the original $0.20 of conservatism was recognized. The Company's updated annual GAAP diluted EPS and Adjusted Diluted EPS guidance includes the remaining $0.16 per diluted share of conservatism associated with the 2017 Health Insurance Marketplace margins.
In the three months ended March 31, 2017, the Company recognized $47 million for our estimated share of the undiscounted guaranty association assessment resulting from a court ordered liquidation of the Pennsylvania based Penn Treaty Network America Insurance Company and its subsidiary (Penn Treaty) as selling, general and administrative (SG&A) expenses.
In summary, the 2017 first quarter results were as follows:
Total revenues (in millions) | $ | 11,724 | ||
Health benefits ratio | 87.6 | % | ||
SG&A expense ratio | 9.8 | % | ||
SG&A expense ratio, excluding the Penn Treaty assessment and Health Net acquisition related expenses | 9.3 | % | ||
GAAP diluted EPS | $ | 0.79 | ||
Adjusted Diluted EPS | $ | 1.12 | ||
Total cash flow provided by operations (in millions) | $ | 1,248 | ||
Michael F. Neidorff, Centene's Chairman and Chief Executive Officer, stated, "We are pleased with the operating results for the first quarter, providing momentum for the remainder of the year."
The following discussions, with the exception of cash flow information, are in the context of continuing operations.
To read full press release, please click here.
