Published: July 30, 2010
Coventry Health Care Reports Second Quarter Earnings
BETHESDA, Md. - (BUSINESS WIRE) - Coventry Health Care, Inc. (NYSE:CVH) today reported consolidated
operating results for the quarter ended June 30, 2010. Operating
revenues totaled $2.9 billion for the quarter with net earnings of $1.0
million, or $0.01 earnings per diluted share (EPS). These results
include a favorable impact from the Medicare Advantage Private
Fee-for-Service (MA-PFFS) product of $0.18 EPS and an unfavorable impact
related to the previously announced provider class action litigation in
Louisiana of $1.18 EPS. Excluding the impact of MA-PFFS results(1) and
the provider class action charge(2), earnings for the quarter
were $149.2 million, or $1.01 EPS. Additionally, the Company has
increased guidance for full year 2010 as detailed on page 3.
"The outstanding second quarter fundamentals that Coventry reported
today are a result of the sharper focus and execution that have returned
to the organization with all seven of our core businesses performing at
or above expectations," said Allen F. Wise, chairman and chief executive
officer of Coventry. "Our diversified portfolio of risk and fee-based
businesses combined with a relentless emphasis on driving a low cost
structure throughout the organization positions us well for continued
success in the long term."
Consolidated Highlights
-
Commercial risk membership of 1,522,000, an organic increase of 21,000
members sequentially
-
Sequential membership growth in Medicare Advantage Coordinated Care
Plans (MA-CCP), Medicare Part D, and Medicaid
-
Announced an agreement to acquire Mercy Health Plans, a diversified
health plan with approximately 180,000 members throughout Missouri and
northwest Arkansas
-
GAAP cash flows from operations were $120.9 million
-
Approximately $670 million of deployable free cash at the parent at
quarter-end
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|
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(1)
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The Company did not renew the MA-PFFS product line effective January
1, 2010 and is in the process of paying claims liabilities related
to prior dates of service. The Company believes that disclosing
adjusted earnings figures which exclude the 2010 impact of the
MA-PFFS results provides a more meaningful measure of its operating
results for comparison to future periods and previously announced
guidance.
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(2)
|
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On July 2, 2010, the Company announced that it will incur a
non-recurring pre-tax charge to earnings in the second quarter of
2010 in the amount of $278 million, or $1.18 per share related to
such litigation. The Company believes that disclosing adjusted
earnings figures which exclude the impact of this litigation
provides a more meaningful measure of its operating results for
comparison to future periods and previously announced guidance.
|
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Selected Second Quarter 2010 Highlights
-
Health Plan Commercial Group Risk. Reported
commercial group risk premium yields rose to $313.92 per member per
month (PMPM) in the quarter, an increase of 4.7% from the prior year
quarter. Reported commercial group risk premium yields rose to $313.00
PMPM year-to-date, an increase of 5.0% from the prior year-to-date.
The health plan commercial group risk MLR was 78.3% in the quarter, a
decrease of 340 basis points from the prior year quarter.
-
Medicare Advantage. As of June 30, 2010, MA-CCP
membership was 192,000, an increase of 10,000 members from the prior
year quarter. The MA-CCP MLR was 81.2% in the quarter. During the
second quarter, the MA-PFFS product line contributed $0.18 EPS largely
due to favorable medical cost experience during the claims run-out
process. When combined with the $0.17 EPS contribution reported in the
first quarter, the total year-to-date contribution from the MA-PFFS
product line was $0.35 EPS. As previously announced, the Company did
not renew this product line effective January 1, 2010.
-
Medicare Part D. As of June 30, 2010, Medicare Part D
membership was 1,631,000, an increase of 76,000 members from the prior
year quarter. The Medicare Part D MLR was 90.7% in the quarter, an
increase of 80 basis points from the prior year quarter. The Medicare
Part D MLR was 93.1% year-to-date, a decrease of 330 basis points from
the prior year-to-date.
-
Medicaid. As of June 30, 2010, Medicaid membership was
413,000, an increase of 28,000 members from the prior year quarter.
Coventry commenced operations in Pennsylvania during the second
quarter which contributed 5,000 new members. The Medicaid MLR was
84.2% in the quarter, a decrease of 600 basis points from the prior
year quarter.
2010 Full Year Guidance
-
Risk revenue of $10.10 billion to $10.33 billion
-
Management services revenue of $1.15 billion to $1.17 billion
-
Consolidated revenue of $11.25 billion to $11.50 billion
-
Consolidated MLR of 81.3% to 81.9%
-
Cost of sales expense of $245.0 million to $250.0 million
-
Selling, general, and administrative expense (SG&A) of $1.92 billion
to $1.96 billion
-
Charge for provider class action of $278.0 million
-
Depreciation and amortization expense of $137.0 million to $145.0
million
-
Other income of $72.0 million to $78.0 million
-
Interest expense of $80.0 million to $86.0 million
-
Tax rate of 37.0% to 38.0%
-
Diluted share count of 146.5 million to 148.0 million
-
EPS of $1.72 to $1.87
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GUIDANCE PROGRESSION TABLE
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Guidance Provided as of:
|
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|
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April 30, 2010
|
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July 2, 2010
|
|
July 30, 2010
|
|
GAAP EPS range
|
|
$2.35 - $2.50
|
|
$1.57 - $1.72
|
|
$1.72 - $1.87
|
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Remove unfavorable impact of litigation charge(2)
|
|
-
|
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$1.18
|
|
$1.18
|
|
Adjusted EPS range excluding litigation charge
|
|
$2.35 - $2.50
|
|
$2.75 - $2.90
|
|
$2.90 - $3.05
|
|
Remove favorable impact of MA-PFFS(1)
|
|
($0.17)
|
|
($0.28)
|
|
($0.35)
|
|
Adjusted core EPS range
|
|
$2.18 - $2.33
|
|
$2.47 - $2.62
|
|
$2.55 - $2.70
|
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Mr. Allen F. Wise, chairman and chief executive officer of Coventry,
will host a conference call at 8:30 a.m. ET on Friday, July 30, 2010. To
listen to the call, dial toll-free at (888) 587-0615 or, for
international callers, (719) 325-2432. Callers will be asked to identify
themselves and their affiliations. The conference call will also be
webcast from Coventry's Investor Relations site at www.coventryhealthcare.com.
Coventry asks participants on both the call and webcast to review and be
familiar with its filings with the Securities and Exchange Commission. A
replay of the call will be available for one week at (888) 203-1112 or,
for international callers, (719) 457-0820. The access code is 8644262.
This press release contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are defined as statements that
are not historical facts and include those statements relating to future
events or future financial performance. Actual performance may be
significantly impacted by certain risks and uncertainties including
those described in Coventry's Annual Report on Form 10-K for the year
ended December 31, 2009 and Coventry's Form 10-Q for the quarter ended
March 31, 2010. Coventry undertakes no obligation to update or revise
any forward-looking statements.
Coventry Health Care (www.coventryhealthcare.com)
is a diversified national managed healthcare company based in Bethesda,
Maryland, operating health plans, insurance companies, network rental
and workers' compensation services companies. Coventry provides a full
range of risk and fee-based managed care products and services to a
broad cross section of individuals, employer and government-funded
groups, government agencies, and other insurance carriers and
administrators.
|
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COVENTRY HEALTH CARE, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
Quarters Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
2010
|
|
|
|
2009
|
|
|
Operating revenues:
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Managed care premiums
|
|
$
|
2,570,508
|
|
|
$
|
3,201,919
|
|
|
$
|
5,141,083
|
|
|
$
|
6,442,731
|
|
|
Management services
|
|
|
297,633
|
|
|
|
296,455
|
|
|
|
586,036
|
|
|
|
588,538
|
|
|
Total operating revenues
|
|
|
2,868,141
|
|
|
|
3,498,374
|
|
|
|
5,727,119
|
|
|
|
7,031,269
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Medical costs
|
|
|
2,032,556
|
|
|
|
2,766,974
|
|
|
|
4,146,898
|
|
|
|
5,599,971
|
|
|
Cost of sales
|
|
|
64,116
|
|
|
|
58,020
|
|
|
|
123,262
|
|
|
|
115,896
|
|
|
Selling, general, administrative
|
|
|
454,254
|
|
|
|
535,949
|
|
|
|
949,159
|
|
|
|
1,079,969
|
|
|
Charge for provider class action
|
|
|
278,000
|
|
|
|
-
|
|
|
|
278,000
|
|
|
|
-
|
|
|
Depreciation and amortization
|
|
|
33,985
|
|
|
|
34,972
|
|
|
|
69,504
|
|
|
|
69,649
|
|
|
Total operating expenses
|
|
|
2,862,911
|
|
|
|
3,395,915
|
|
|
|
5,566,823
|
|
|
|
6,865,485
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
|
|
5,230
|
|
|
|
102,459
|
|
|
|
160,296
|
|
|
|
165,784
|
|
|
Operating earnings percentage of total revenues
|
|
|
0.2
|
%
|
|
|
2.9
|
%
|
|
|
2.8
|
%
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
20,195
|
|
|
|
21,775
|
|
|
|
40,325
|
|
|
|
43,906
|
|
|
Other income, net
|
|
|
18,207
|
|
|
|
31,895
|
|
|
|
38,494
|
|
|
|
51,762
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
3,242
|
|
|
|
112,579
|
|
|
|
158,465
|
|
|
|
173,640
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
2,221
|
|
|
|
44,871
|
|
|
|
60,119
|
|
|
|
67,825
|
|
|
Income from continuing operations
|
|
|
1,021
|
|
|
|
67,708
|
|
|
|
98,346
|
|
|
|
105,815
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
|
-
|
|
|
|
(65,507
|
)
|
|
|
-
|
|
|
|
(55,900
|
)
|
|
Income tax benefit
|
|
|
-
|
|
|
|
16,224
|
|
|
|
-
|
|
|
|
12,677
|
|
|
Loss from discontinued operations
|
|
|
-
|
|
|
|
(49,283
|
)
|
|
|
-
|
|
|
|
(43,223
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
1,021
|
|
|
$
|
18,425
|
|
|
$
|
98,346
|
|
|
$
|
62,592
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic earnings per share from continuing operations
|
|
$
|
0.01
|
|
|
$
|
0.46
|
|
|
$
|
0.67
|
|
|
$
|
0.72
|
|
|
Basic loss per share from discontinued operations
|
|
|
-
|
|
|
|
(0.33
|
)
|
|
|
-
|
|
|
|
(0.29
|
)
|
|
Total basic earnings per share
|
|
$
|
0.01
|
|
|
$
|
0.13
|
|
|
$
|
0.67
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.01
|
|
|
$
|
0.46
|
|
|
$
|
0.67
|
|
|
$
|
0.72
|
|
|
Diluted loss per share from discontinued operations
|
|
|
-
|
|
|
|
(0.34
|
)
|
|
|
-
|
|
|
|
(0.30
|
)
|
|
Total diluted earnings per share
|
|
$
|
0.01
|
|
|
$
|
0.12
|
|
|
$
|
0.67
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic
|
|
|
145,943
|
|
|
|
146,955
|
|
|
|
145,863
|
|
|
|
146,901
|
|
|
Weighted average shares outstanding, diluted
|
|
|
147,300
|
|
|
|
147,616
|
|
|
|
147,291
|
|
|
|
147,460
|
|
|
|
|
|
|
COVENTRY HEALTH CARE, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in thousands)
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2010
|
|
|
2010
|
|
|
2009
|
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,495,414
|
|
$
|
1,370,243
|
|
$
|
1,418,554
|
|
Short-term investments
|
|
|
16,011
|
|
|
6,000
|
|
|
442,106
|
|
Accounts receivable, net
|
|
|
271,108
|
|
|
264,334
|
|
|
258,993
|
|
Other receivables, net
|
|
|
499,457
|
|
|
502,535
|
|
|
496,059
|
|
Other current assets
|
|
|
338,131
|
|
|
232,732
|
|
|
234,446
|
|
Total current assets
|
|
|
2,620,121
|
|
|
2,375,844
|
|
|
2,850,158
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term investments
|
|
|
2,285,411
|
|
|
2,297,901
|
|
|
1,994,987
|
|
Property and equipment, net
|
|
|
258,503
|
|
|
266,027
|
|
|
271,931
|
|
Goodwill
|
|
|
2,546,351
|
|
|
2,551,884
|
|
|
2,529,284
|
|
Other intangible assets, net
|
|
|
448,948
|
|
|
464,906
|
|
|
471,693
|
|
Other long-term assets
|
|
|
32,454
|
|
|
33,526
|
|
|
48,479
|
|
Total assets
|
|
$
|
8,191,788
|
|
$
|
7,990,088
|
|
$
|
8,166,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Medical liabilities
|
|
$
|
1,353,268
|
|
$
|
1,417,027
|
|
$
|
1,605,407
|
|
Accounts payable and accrued liabilities
|
|
|
855,927
|
|
|
606,479
|
|
|
682,171
|
|
Deferred revenue
|
|
|
111,737
|
|
|
126,781
|
|
|
110,855
|
|
Total current liabilities
|
|
|
2,320,932
|
|
|
2,150,287
|
|
|
2,398,433
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
1,599,211
|
|
|
1,599,119
|
|
|
1,599,027
|
|
Other long-term liabilities
|
|
|
428,155
|
|
|
421,571
|
|
|
456,518
|
|
Total liabilities
|
|
|
4,348,298
|
|
|
4,170,977
|
|
|
4,453,978
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
3,843,490
|
|
|
3,819,111
|
|
|
3,712,554
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
8,191,788
|
|
$
|
7,990,088
|
|
$
|
8,166,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COVENTRY HEALTH CARE, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Amounts in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
|
June 30, 2010
|
|
|
June 30, 2010
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
1,021
|
|
$
|
98,346
|
|
Adjustments to earnings:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
33,985
|
|
|
69,504
|
|
Amortization of stock compensation
|
|
|
10,742
|
|
|
21,258
|
|
Charge for provider class action
|
|
|
278,000
|
|
|
278,000
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(6,514)
|
|
|
(2,915)
|
|
Medical liabilities
|
|
|
(60,183)
|
|
|
(291,330)
|
|
Accounts payable and other accrued liabilities
|
|
|
(135,194)
|
|
|
(240,155)
|
|
Deferred revenue
|
|
|
(15,044)
|
|
|
(2,743)
|
|
Other operating activities
|
|
|
14,083
|
|
|
4,007
|
|
Net cash flows from operating activities
|
|
|
120,896
|
|
|
(66,028)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures, net
|
|
|
(10,439)
|
|
|
(22,920)
|
|
Proceeds from investments, net of purchases
|
|
|
16,066
|
|
|
234,215
|
|
Payments for acquisitions, net of cash acquired
|
|
|
-
|
|
|
(66,894)
|
|
Net cash flows from investing activities
|
|
|
5,627
|
|
|
144,401
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from issuance of stock
|
|
|
747
|
|
|
1,128
|
|
Payments for repurchase of stock
|
|
|
(2,349)
|
|
|
(3,628)
|
|
Excess tax benefit from stock compensation
|
|
|
250
|
|
|
987
|
|
Net cash flows from financing activities
|
|
|
(1,352)
|
|
|
(1,513)
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents for current period
|
|
|
125,171
|
|
|
76,860
|
|
Cash and cash equivalents at beginning of period
|
|
|
1,370,243
|
|
|
1,418,554
|
|
Cash and cash equivalents at end of period
|
|
$
|
1,495,414
|
|
$
|
1,495,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Investments:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,495,414
|
|
$
|
1,495,414
|
|
Short-term investments
|
|
|
16,011
|
|
|
16,011
|
|
Long-term investments
|
|
|
2,285,411
|
|
|
2,285,411
|
|
Total cash and investments
|
|
$
|
3,796,836
|
|
$
|
3,796,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COVENTRY HEALTH CARE, INC.
|
|
SELECTED OPERATING STATISTICS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2010
|
|
Q1 2010
|
|
Total
2009
|
|
Q4 2009
|
|
Q3 2009
|
|
Q2 2009
|
|
Q1 2009
|
|
Total
2008
|
|
Membership by Product (000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Plan Commercial Risk
|
|
|
1,522
|
|
|
1,501
|
|
|
|
|
1,418
|
|
|
1,431
|
|
|
1,477
|
|
|
1,501
|
|
|
1,575
|
|
Health Plan Commercial ASO
|
|
|
657
|
|
|
663
|
|
|
|
|
685
|
|
|
689
|
|
|
697
|
|
|
702
|
|
|
714
|
|
Medicare Advantage CCP
|
|
|
192
|
|
|
190
|
|
|
|
|
186
|
|
|
185
|
|
|
182
|
|
|
176
|
|
|
137
|
|
Medicaid Risk
|
|
|
413
|
|
|
406
|
|
|
|
|
402
|
|
|
391
|
|
|
385
|
|
|
375
|
|
|
371
|
|
Health Plan Total
|
|
|
2,784
|
|
|
2,760
|
|
|
|
|
2,691
|
|
|
2,696
|
|
|
2,741
|
|
|
2,754
|
|
|
2,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare Advantage PFFS
|
|
|
-
|
|
|
-
|
|
|
|
|
329
|
|
|
336
|
|
|
329
|
|
|
318
|
|
|
243
|
|
Other National Risk
|
|
|
-
|
|
|
-
|
|
|
|
|
2
|
|
|
5
|
|
|
15
|
|
|
21
|
|
|
24
|
|
Other National ASO
|
|
|
466
|
|
|
482
|
|
|
|
|
564
|
|
|
567
|
|
|
571
|
|
|
575
|
|
|
633
|
|
Total Medical Membership
|
|
|
3,250
|
|
|
3,242
|
|
|
|
|
3,586
|
|
|
3,604
|
|
|
3,656
|
|
|
3,668
|
|
|
3,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare Part D
|
|
|
1,631
|
|
|
1,600
|
|
|
|
|
1,683
|
|
|
1,636
|
|
|
1,555
|
|
|
1,501
|
|
|
931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Membership
|
|
|
4,881
|
|
|
4,842
|
|
|
|
|
5,269
|
|
|
5,240
|
|
|
5,211
|
|
|
5,169
|
|
|
4,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by Product Type (000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Risk
|
|
$
|
1,367,457
|
|
$
|
1,317,221
|
|
$
|
5,174,772
|
|
$
|
1,257,335
|
|
$
|
1,279,571
|
|
$
|
1,310,645
|
|
$
|
1,327,221
|
|
$
|
5,421,984
|
|
Commercial Management Services
|
|
|
82,395
|
|
|
82,957
|
|
|
346,042
|
|
|
96,896
|
|
|
81,661
|
|
|
83,675
|
|
|
83,810
|
|
|
352,369
|
|
Medicare Advantage
|
|
|
505,084
|
|
|
507,592
|
|
|
4,901,918
|
|
|
1,247,725
|
|
|
1,268,592
|
|
|
1,224,011
|
|
|
1,161,590
|
|
|
3,177,244
|
|
Medicaid Risk
|
|
|
268,460
|
|
|
265,771
|
|
|
1,066,231
|
|
|
261,208
|
|
|
281,146
|
|
|
263,039
|
|
|
260,838
|
|
|
1,087,189
|
|
Total Health Plan and Medical Services Businesses
|
|
|
2,223,396
|
|
|
2,173,541
|
|
|
11,488,963
|
|
|
2,863,164
|
|
|
2,910,970
|
|
|
2,881,370
|
|
|
2,833,459
|
|
|
10,038,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare Part D
|
|
|
423,664
|
|
|
473,809
|
|
|
1,545,858
|
|
|
347,991
|
|
|
316,654
|
|
|
397,090
|
|
|
484,123
|
|
|
847,702
|
|
Other Premiums
|
|
|
25,201
|
|
|
25,105
|
|
|
94,562
|
|
|
23,291
|
|
|
23,568
|
|
|
23,746
|
|
|
23,957
|
|
|
64,783
|
|
Other Management Services
|
|
|
217,706
|
|
|
207,904
|
|
|
850,184
|
|
|
212,054
|
|
|
211,769
|
|
|
215,468
|
|
|
210,893
|
|
|
826,321
|
|
Total Specialized Managed Care Businesses
|
|
|
666,571
|
|
|
706,818
|
|
|
2,490,604
|
|
|
583,336
|
|
|
551,991
|
|
|
636,304
|
|
|
718,973
|
|
|
1,738,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Premiums
|
|
|
2,589,866
|
|
|
2,589,498
|
|
|
12,783,341
|
|
|
3,137,550
|
|
|
3,169,531
|
|
|
3,218,531
|
|
|
3,257,729
|
|
|
10,598,902
|
|
Total Management Services
|
|
|
300,101
|
|
|
290,861
|
|
|
1,196,226
|
|
|
308,950
|
|
|
293,430
|
|
|
299,143
|
|
|
294,703
|
|
|
1,178,690
|
|
Other/Eliminations
|
|
|
(21,826)
|
|
|
(21,381)
|
|
|
(76,041)
|
|
|
(18,353)
|
|
|
(18,851)
|
|
|
(19,300)
|
|
|
(19,537)
|
|
|
(43,365)
|
|
Total Revenue
|
|
$
|
2,868,141
|
|
$
|
2,858,978
|
|
$
|
13,903,526
|
|
$
|
3,428,147
|
|
$
|
3,444,110
|
|
$
|
3,498,374
|
|
$
|
3,532,895
|
|
$
|
11,734,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Coventry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income % of Revenues
|
|
|
0.2%
|
|
|
5.4%
|
|
|
3.6%
|
|
|
5.4%
|
|
|
4.4%
|
|
|
2.9%
|
|
|
1.8%
|
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SGA % of Revenues
|
|
|
15.8%
|
|
|
17.3%
|
|
|
15.5%
|
|
|
15.9%
|
|
|
15.3%
|
|
|
15.3%
|
|
|
15.4%
|
|
|
16.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Medical Liabilities (000s)(3)
|
|
$
|
1,026,355
|
|
$
|
979,173
|
|
|
|
$
|
900,402
|
|
$
|
939,678
|
|
$
|
904,711
|
|
$
|
898,224
|
|
$
|
846,004
|
|
Days in Claims Payable (DCP) (3)
|
|
|
55.47
|
|
|
54.14
|
|
|
|
|
49.45
|
|
|
50.39
|
|
|
48.35
|
|
|
48.54
|
|
|
47.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt (millions)
|
|
$
|
1,599.2
|
|
$
|
1,599.1
|
|
|
|
$
|
1,599.0
|
|
$
|
1,708.9
|
|
$
|
1,806.8
|
|
$
|
1,902.6
|
|
$
|
1,902.5
|
|
Total Capital (millions)
|
|
$
|
5,442.7
|
|
$
|
5,418.2
|
|
|
|
$
|
5,311.6
|
|
$
|
5,311.6
|
|
$
|
5,332.9
|
|
$
|
5,402.8
|
|
$
|
5,333.1
|
|
Debt to Capital
|
|
|
29.4%
|
|
|
29.5%
|
|
|
|
|
30.1%
|
|
|
32.2%
|
|
|
33.9%
|
|
|
35.2%
|
|
|
35.7%
|
|
|
|
|
|
|
|
(3)
|
|
"Total Medical Liabilities" and "Days in Claims Payable" are
calculated consistent with prior disclosures to exclude MA-PFFS for
all periods presented due to the Company's non-renewal of this
product line effective January 1, 2010. These statistics also
exclude the effect of the Preferred Health Systems ("PHS" )
acquisition for the first quarter of 2010 but include the effect of
the PHS acquisition for the second quarter of 2010 due to the timing
of closing (February 1, 2010).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COVENTRY HEALTH CARE, INC.
|
|
SELECTED REVENUE AND MEDICAL COST STATISTICS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2010
|
|
Q1 2010
|
|
Total
2009
|
|
Q4 2009
|
|
Q3 2009
|
|
Q2 2009
|
|
Q1 2009
|
|
Total
2008
|
|
Revenue PMPM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Plan Commercial Group Risk
|
|
$
|
313.92
|
|
$
|
312.05
|
|
$
|
301.63
|
|
$
|
306.75
|
|
$
|
304.13
|
|
$
|
299.79
|
|
$
|
296.36
|
|
$
|
286.30
|
|
Medicare Advantage(4), (5)
|
|
$
|
867.43
|
|
$
|
885.26
|
|
$
|
855.16
|
|
$
|
849.62
|
|
$
|
853.90
|
|
$
|
857.05
|
|
$
|
860.46
|
|
$
|
862.60
|
|
Medicare Part D(6)
|
|
$
|
90.49
|
|
$
|
88.05
|
|
$
|
84.40
|
|
$
|
83.42
|
|
$
|
84.63
|
|
$
|
85.27
|
|
$
|
84.35
|
|
$
|
88.34
|
|
Medicaid
|
|
$
|
217.77
|
|
$
|
218.76
|
|
$
|
229.94
|
|
$
|
218.62
|
|
$
|
239.22
|
|
$
|
230.27
|
|
$
|
231.93
|
|
$
|
208.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MLR%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Total
|
|
|
79.1%
|
|
|
82.3%
|
|
|
85.4%
|
|
|
83.2%
|
|
|
84.4%
|
|
|
86.4%
|
|
|
87.4%
|
|
|
84.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Plan Commercial Group Risk
|
|
|
78.3%
|
|
|
80.2%
|
|
|
81.9%
|
|
|
82.9%
|
|
|
82.1%
|
|
|
81.7%
|
|
|
80.9%
|
|
|
81.7%
|
|
Medicare Advantage(5)
|
|
|
81.2%
|
|
|
85.7%
|
|
|
89.9%
|
|
|
89.4%
|
|
|
89.4%
|
|
|
90.4%
|
|
|
90.5%
|
|
|
89.0%
|
|
Medicare Part D
|
|
|
90.7%
|
|
|
95.3%
|
|
|
85.7%
|
|
|
64.4%
|
|
|
79.4%
|
|
|
89.9%
|
|
|
101.8%
|
|
|
84.1%
|
|
Medicaid
|
|
|
84.2%
|
|
|
84.0%
|
|
|
87.6%
|
|
|
85.8%
|
|
|
86.1%
|
|
|
90.2%
|
|
|
88.3%
|
|
|
85.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Revenue PMPM excludes the impact of revenue ceded to external
parties.
|
|
|
|
(5)
|
|
Beginning with Q1 2010, Medicare Advantage revenue and medical cost
statistics represent the MA-CCP business only as the Company did not
renew the MA-PFFS product line effective January 1, 2010.
|
|
|
|
(6)
|
|
Revenue PMPM excludes the impact of CMS risk-share premium
adjustments and revenue ceded to external parties.
|
|
|
|
|
Coventry Health Care, Inc.
John Stelben
Interim Chief
Financial Officer
301-581-5729
or
Drew Asher
SVP,
Corporate Finance
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