Coventry Health Care, Inc. (NYSE:CVH) today reported consolidated
operating results for the quarter ended December 31, 2009. Operating
revenues totaled $3.4 billion for the quarter with net earnings of
$109.1 million, or $0.74 earnings per diluted share (EPS). For the year
ended December 31, 2009, total revenues from continuing operations were
$13.9 billion with net earnings from continuing operations of $315.3
million, or $2.14 per diluted share.
“Although we
continue to operate in a challenging economic environment, as we enter
2010 we remain confident that our focus on Coventry’s seven core
businesses will best position us for the future.”
“I am pleased with the progress that the Company has made during 2009
including a strong finish to the year in the fourth quarter,” said Allen
F. Wise, chairman and chief executive officer of Coventry. “Although we
continue to operate in a challenging economic environment, as we enter
2010 we remain confident that our focus on Coventry’s seven core
businesses will best position us for the future.”
Fourth Quarter 2009 Consolidated Highlights
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Revenues from continuing operations increased 15.2% from the prior
year quarter
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Medicare Coordinated Care Product (CCP) membership growth of 36% from
the prior year quarter
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Medicare Part D membership growth of 47,000 from the prior quarter
-
Health plan commercial group risk medical loss ratio of 82.9%
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Excellent liquidity position
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Approximately $510 million of deployable free cash at the parent
at quarter-end
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Debt repayment of $110 million during the quarter
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Investment portfolio continues to be in a net unrealized gain position
at quarter-end
-
Announced agreement to acquire Preferred Health Systems, Inc., a
commercial health plan based in Wichita, Kansas, which closed on
February 1, 2010
Full Year 2009 Consolidated Highlights
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Revenues from continuing operations increased 18.5% from the prior year
-
Fourth consecutive year of strong performance from Medicare Part D
including growth of 752,000 members from the prior year, an increase
of 81%
-
Health plan commercial group risk medical loss ratio of 81.9%
-
Individual commercial risk membership growth of 23,000 from the prior
year
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Cash flows from operations were $881.8 million
-
Debt reduction of $303.5 million from the prior year resulting in a
30.1% debt to capital ratio at year-end
-
Completed the divestiture of a non-core business, First Health
Services Corporation (FHSC), during the third quarter of 2009
Selected Fourth Quarter and Full Year 2009 Highlights