News Releases
With regard to Magellan's share repurchase program, since the inception of this program, the company has repurchased approximately
With respect to 2013, the company confirmed its guidance, which was most recently updated in October.
"During 2013, we initiated a comprehensive review of our operations and products, expanded our senior management team, added new customers and responded to the challenges of losing others," said
"The next year will be a transitional year for us. By the end of 2014, we anticipate a more stable customer base from which we can achieve earnings growth in future years, with significant contributions from our Magellan Complete Care and Magellan Pharmacy Solutions businesses," said
Earnings Results Conference Call
Management will host a conference call at
About
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 2013 guidance, 2014 net revenue, net income, earnings per share, segment profit, and cash flow from operations, strategy, growth, and future compound annual growth rate in revenue and earnings per share. 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
| Fiscal 2014 Plan Guidance - Income Statement | ||||||||
| (In millions, except per share amounts) | ||||||||
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Low |
High |
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| Net revenue | $ | 3,605.0 | $ | 3,795.0 | ||||
| Cost and expenses: | ||||||||
| Cost of care | 2,495.0 | 2,625.0 | ||||||
| Cost of goods sold | 275.0 | 300.0 | ||||||
| Direct service costs and other operating expenses (1) | 642.0 | 651.0 | ||||||
| Depreciation and amortization | 78.0 | 74.0 | ||||||
| Interest expense | 4.0 | 2.0 | ||||||
| Interest income | (1.0 | ) | (1.0 | ) | ||||
| Income before income taxes | 112.0 | 144.0 | ||||||
| Provision for income taxes (2) | 55.0 | 71.0 | ||||||
| Net income | $ | 57.0 | $ | 73.0 | ||||
| Weighted average shares outstanding - diluted | 28.5 | 28.5 | ||||||
| EPS - diluted | $ | 2.00 | $ | 2.56 | ||||
| (1) Includes stock compensation expense of |
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|
(2) The effective rate is higher than the federal statutory rate primarily due to the inclusion of state taxes and the impact of ACA regulations on the nondeductibility of ACA premium taxes, and limitations under ACA on deductibility of compensation for certain employees. The specific impact of the ACA deductions limitations is approximately 9% on the tax rate, or approximately |
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| Reconciliation of segment profit to income before income taxes: | ||||||||
| Segment profit | $ | 215.0 | $ | 235.0 | ||||
| Depreciation and amortization | (78.0 | ) | (74.0 | ) | ||||
| Stock compensation expense | (22.0 | ) | (16.0 | ) | ||||
| Interest expense | (4.0 | ) | (2.0 | ) | ||||
| Interest income | 1.0 | 1.0 | ||||||
| Income before income taxes | $ | 112.0 | $ | 144.0 | ||||
| Fiscal 2014 Forecast Guidance - |
||||||||||
| (In millions) | ||||||||||
|
Low |
High |
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| Cash flows from operating activities | ||||||||||
| Net income | $ | 57.0 | $ | 73.0 | ||||||
| Adjustments to reconcile net income to net cash from operating activities: | ||||||||||
| Depreciation and amortization | 78.0 | 74.0 | ||||||||
| Non-cash stock compensation expense | 22.0 | 16.0 | ||||||||
| Non-cash income tax expense | (10.0 | ) | (14.0 | ) | ||||||
| Other net cash flows from changes in assets and liabilities | 34.0 | 54.0 | ||||||||
| Net cash provided by operating activities | 181.0 | 203.0 | ||||||||
| Cash flows from investing activities | ||||||||||
| Capital expenditures | (57.0 | ) | (47.0 | ) | ||||||
| Non-cash investment activity | (10.0 | ) | (6.0 | ) | ||||||
| Net cash used in investing activities | (67.0 | ) | (53.0 | ) | ||||||
| Cash flows from financing activities | ||||||||||
| Payments on long-term debt and capital leases | (4.0 | ) | (2.0 | ) | ||||||
| Net cash used in financing activities | (4.0 | ) | (2.0 | ) | ||||||
| Net increase in cash, cash equivalents and unrestricted investments | $ | 110.0 | $ | 148.0 | ||||||
Media Contact:
cefjohnson@magellanhealth.com
or
Investor Contact:
rshapiro@magellanhealth.com
Source:
News Provided by Acquire Media