News Releases
The Company also confirmed its guidance for 2010, projecting net income in the range of
As part of its current
"Magellan is on track to complete a very strong 2010, and that gives us a solid foundation for 2011," said René Lerer, M.D., chairman and chief executive officer. "We are accelerating proactive efforts with customers and consumers to create new ways of helping them address challenges to the quality and affordability of health care. We are uniquely positioned across the specialty health care spectrum, and particularly with regard to
"Our business segments are expanding their product offerings and capabilities to enhance our value creation for current customers as well as attract new customers," said
"Magellan has a strong financial base, with significant cash, no long term debt, and a history of cash flow to support our continued strategy of profitable growth and optimal return to shareholders," said
Conference Call
Management will host a conference call at
About Magellan: Headquartered in
Cautionary Statement
This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 and the Securities Act of 1933, as amended, which involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements including, without limitation, statements regarding estimates of 2010 and 2011 net income, segment profit, and earnings per share, 2011 estimates of revenue and cash flow, and strategy. These statements are based on management's analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "may," "should," "could," "estimate," "intend" and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, the possible election of certain of the Company's customers to manage the health care services of their members directly; changes in rates paid to and/or by the Company by customers and/or providers; higher utilization of health care services by the Company's risk members; delays, higher costs or inability to implement new business or other Company initiatives; the impact of changes in the contracting model for
| Magellan Health Services, Inc. and Subsidiaries | ||||||||||
| Fiscal 2011 Forecast Guidance - Income Statement | ||||||||||
| (In millions, except per share amounts) | ||||||||||
| Low | High | |||||||||
| Net revenue | $ | 2,756.0 | $ | 2,932.0 | ||||||
| Cost and expenses: | ||||||||||
| Cost of care | 1,785.0 | 1,905.0 | ||||||||
| Cost of goods sold | 214.0 | 234.0 | ||||||||
| Direct service costs and other operating expenses (1) | 530.0 | 541.0 | ||||||||
| Depreciation and amortization | 60.0 | 56.0 | ||||||||
| Interest expense | 3.0 | 1.0 | ||||||||
| Interest income | (4.5 | ) | (2.5 | ) | ||||||
| Income from continuing operations before income taxes | 168.5 | 197.5 | ||||||||
| Provision for income taxes | 69.0 | 81.0 | ||||||||
| Net income | $ | 99.5 | $ | 116.5 | ||||||
| Weighted average shares outstanding - diluted | 35.0 | 35.0 | ||||||||
| EPS - diluted | $ | 2.84 | $ | 3.33 | ||||||
| (1) Includes stock compensation expense of $18.0 million and $13.0 million for low and high guidance, respectively. | ||||||||||
| Reconciliation of segment profit to income from continuing operations before income taxes: | ||||||||||
| Segment profit | $ | 245.0 | $ | 265.0 | ||||||
| Stock compensation expense | (18.0 | ) | (13.0 | ) | ||||||
| Depreciation and amortization | (60.0 | ) | (56.0 | ) | ||||||
| Interest expense | (3.0 | ) | (1.0 | ) | ||||||
| Interest income | 4.5 | 2.5 | ||||||||
| Income from continuing operations before income taxes | $ | 168.5 | $ | 197.5 | ||||||
| Magellan Health Services, Inc. and Subsidiaries | ||||||||||
|
Fiscal 2011 Forecast Guidance - Cash Flow |
||||||||||
| (In millions) | ||||||||||
|
Low |
High |
|||||||||
| Cash flows from operating activities | ||||||||||
| Net income | $ | 99.5 | $ | 116.5 | ||||||
| Adjustments to reconcile net income to net cash from operating activities: | ||||||||||
| Depreciation and amortization | 60.0 | 56.0 | ||||||||
| Non-cash stock compensation expense | 18.0 | 13.0 | ||||||||
| Non-cash income tax expense | 8.0 | 12.0 | ||||||||
| Other net cash flows from changes in assets and liabilities | (5.0 | ) | 14.0 | |||||||
| Net cash provided by operating activities | 180.5 | 211.5 | ||||||||
| Cash flows from investing activities | ||||||||||
| Capital expenditures | (57.0 | ) | (47.0 | ) | ||||||
| Other non-cash investment activity | (8.0 | ) | (4.0 | ) | ||||||
| Net cash used in investing activities | (65.0 | ) | (51.0 | ) | ||||||
| Cash flows from financing activities | ||||||||||
| Payments on long-term debt and capital leases | (1.0 | ) | (0.5 | ) | ||||||
| Net increase in cash, cash equivalents and unrestricted investments | $ | 114.5 | $ | 160.0 | ||||||
Media:
dwcarter@magellanhealth.com
or
Investor:
rshapiro@magellanhealth.com
Source:
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