Centene Corporation (NYSE: CNC) today announced its net earnings from continuing operations for the quarter ended September 30, 2009 were $22.7 million, or $0.51 per diluted share, compared to $18.1 million, or $0.41 per diluted share in the third quarter of 2008. 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 are calculated using revenues excluding premium taxes and investment income.
Third Quarter Highlights
- Quarter-end managed care at-risk membership of 1,386,400, an increase of 215,300 lives year over year.
- Premium and Service revenues of $987.3 million, representing 18.1% year over year growth.
- Health Benefits Ratio (HBR) of 83.7%.
- General and Administrative (G&A) expense ratio of 13.2%.
- Cash flow from operations of $114.9 million.
- Days in claims payable of 47.1.
- Diluted earnings per share from continuing operations of $0.51, compared to $0.41 in the third quarter of 2008. Earnings per diluted share in 2008 included a $0.06 loss on investments from the Primary Reserve fund.
Other Events
- On August 31, 2009, Centene announced that the State of Massachusetts had accepted its proposal to manage healthcare services for the Commonwealth Bridge Program through its subsidiary, CeltiCare Health Plan of Massachusetts, effective October 1, 2009, through June 30, 2010.
- Effective September 1, 2009, Centene converted 62,100 members in Florida from Access Health Solutions to at-risk under our Sunshine State Health Plan.
- On October 24, 2009, Centene announced a settlement agreement with Amerigroup Corporation associated with the sale of our New Jersey health plan. Pursuant to the settlement agreement, the parties will move forward with the transaction, which is subject to regulatory approval and expected to be completed in the first quarter of 2010.
- In August 2009, Jason Harrold, president and CEO of OptiCare Managed Vision, Inc. was appointed to Senior Vice President of Centene’s Specialty Business Unit. Mr. Harrold assumed the leadership role over the specialty companies previously held by William Scheffel.
- On October 26, 2009 our Board of Directors approved an extension of our stock repurchase program.
Michael F. Neidorff, Centene’s Chairman and Chief Executive Officer, stated, “We are pleased with the ability of our team to deliver solid results across Centene's products and markets in a challenging economic environment.”
The following table depicts membership in Centene’s managed care organizations, by state, at September 30, 2009 and 2008:
The following table depicts membership in Centene’s managed care organizations, by member category, at September 30, 2009 and 2008:
Statement of Operations