Molina Healthcare Reports Third Quarter 2024 Financial Results
Molina Healthcare (NYSE: MOH) reported strong Q3 2024 financial results with GAAP earnings of $5.65 per diluted share, up 34% year-over-year, and adjusted earnings of $6.01 per diluted share, up 19%. Premium revenue reached $9.7 billion, an 18% increase, driven by new contract wins and acquisitions. The company serves approximately 5.6 million members, an 8% increase from 2023. The Medical Care Ratio was 89.2%, while the G&A ratio improved to 6.5%. Molina reaffirmed its full year 2024 guidance, expecting premium revenue of $38 billion and adjusted earnings of at least $23.50 per diluted share.
Molina Healthcare (NYSE: MOH) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con utili GAAP di $5,65 per azione diluita, in aumento del 34% rispetto all'anno precedente, e utili rettificati di $6,01 per azione diluita, in crescita del 19%. I ricavi da premi hanno raggiunto $9,7 miliardi, con un incremento del 18%, sostenuti da nuove vittorie di contratti e acquisizioni. L'azienda serve circa 5,6 milioni di membri, un aumento dell'8% rispetto al 2023. Il rapporto di spesa medica era del 89,2%, mentre il rapporto G&A è migliorato al 6,5%. Molina ha ribadito le previsioni per l'intero anno 2024, prevedendo ricavi da premi di $38 miliardi e utili rettificati di almeno $23,50 per azione diluita.
Molina Healthcare (NYSE: MOH) reportó sólidos resultados financieros para el tercer trimestre de 2024, con ingresos GAAP de $5.65 por acción diluida, un aumento del 34% respecto al año anterior, y ingresos ajustados de $6.01 por acción diluida, un incremento del 19%. Los ingresos por primas alcanzaron $9.7 mil millones, un aumento del 18%, impulsados por nuevas contrataciones y adquisiciones. La compañía atiende a aproximadamente 5.6 millones de miembros, un aumento del 8% en comparación con 2023. La relación de gasto médico fue del 89.2%, mientras que la relación de G&A mejoró al 6.5%. Molina reafirmó sus expectativas para todo el año 2024, esperando ingresos por primas de $38 mil millones y ingresos ajustados de al menos $23.50 por acción diluida.
몰리나 헬스케어 (NYSE: MOH)는 2024년 3분기에 대한 강력한 재무 결과를 보고했으며, GAAP 수익은 주당 $5.65로 전년 대비 34% 증가했고, 조정 수익은 주당 $6.01로 19% 증가했습니다. 프리미엄 수익은 $9.7억으로 18% 증가하였으며, 이는 새로운 계약 수주와 인수에 의해 주도되었습니다. 회사는 약 560만 명의 회원에게 서비스를 제공하며, 이는 2023년 대비 8% 증가한 수치입니다. 의료비 비율은 89.2%였고, 일반 및 관리비 비율은 6.5%로 개선되었습니다. 몰리나는 2024년 전체 연도의 가이던스를 재확인하며, 프리미엄 수익이 $38억에 이를 것으로 예상하고 조정된 주당 수익이 최소 $23.50에 이를 것으로 전망하였습니다.
Molina Healthcare (NYSE: MOH) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un bénéfice GAAP de 5,65 $ par action diluée, en hausse de 34 % par rapport à l'année précédente, et un bénéfice ajusté de 6,01 $ par action diluée, en hausse de 19 %. Les revenus des primes ont atteint 9,7 milliards $, soit une augmentation de 18 % grâce à de nouveaux contrats gagnés et des acquisitions. L'entreprise sert environ 5,6 millions de membres, ce qui représente une hausse de 8 % par rapport à 2023. Le ratio des soins médicaux était de 89,2 %, tandis que le ratio des frais généraux et administratifs s'est amélioré pour atteindre 6,5 %. Molina a réaffirmé ses prévisions pour l'année 2024, s'attendant à des revenus de primes de 38 milliards $ et à un bénéfice ajusté d'au moins 23,50 $ par action diluée.
Molina Healthcare (NYSE: MOH) meldete starke Finanz Ergebnisse im dritten Quartal 2024 mit GAAP-Gewinnen von 5,65 $ pro verwässerter Aktie, ein Anstieg von 34 % im Vergleich zum Vorjahr, und angepassten Gewinnen von 6,01 $ pro verwässerter Aktie, das sind 19 % mehr. Die Prämieneinnahmen erreichten 9,7 Milliarden $, was einem Anstieg von 18 % entspricht, angetrieben durch neue Vertragsgewinne und Übernahmen. Das Unternehmen bedient etwa 5,6 Millionen Mitglieder, was einem Anstieg von 8 % im Vergleich zu 2023 entspricht. Der medizinische Kostenanteil lag bei 89,2 %, während sich der G&A-Anteil auf 6,5 % verbesserte. Molina bekräftigte die Jahresprognose für 2024 und erwartet Prämieneinnahmen von 38 Milliarden $ sowie angepasste Gewinne von mindestens 23,50 $ pro verwässerter Aktie.
- Premium revenue increased 18% YoY to $9.7 billion
- GAAP EPS grew 34% YoY to $5.65
- Adjusted EPS increased 19% YoY to $6.01
- Membership grew 8% YoY to 5.6 million members
- Marketplace MCR of 73.0% performed better than expectations
- G&A ratio improved to 6.5% from 7.1% YoY
- Consolidated MCR increased to 89.2% from 88.7% YoY
- Medicare MCR at 89.6% due to higher-than-expected utilization
- Operating cash flow decreased to $868M from $2,352M YoY
- Parent company cash decreased to $195M from $742M since December 2023
Insights
Molina Healthcare delivered strong Q3 2024 results with notable growth metrics. Premium revenue increased
Key performance indicators show mixed results: The Medical Care Ratio increased to
The balance sheet shows some pressure with parent company cash declining to
Reaffirms Full Year 2024 Earnings Guidance
|
Three months ended |
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Nine months ended |
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|
September 30, |
|
September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
(In millions, except per-share results) |
|||||||||||||||
Premium Revenue |
$ |
9,694 |
|
|
$ |
8,240 |
|
|
$ |
28,644 |
|
|
$ |
24,167 |
|
Total Revenue |
$ |
10,340 |
|
|
$ |
8,548 |
|
|
$ |
30,151 |
|
|
$ |
25,024 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP: |
|
|
|
|
|
|
|
||||||||
Net Income |
$ |
326 |
|
|
$ |
245 |
|
|
$ |
928 |
|
|
$ |
875 |
|
EPS – Diluted |
$ |
5.65 |
|
|
$ |
4.21 |
|
|
$ |
15.97 |
|
|
$ |
15.08 |
|
Medical Care Ratio (MCR) |
|
89.2 |
% |
|
|
88.7 |
% |
|
|
88.8 |
% |
|
|
87.8 |
% |
G&A Ratio |
|
6.5 |
% |
|
|
7.1 |
% |
|
|
6.9 |
% |
|
|
7.3 |
% |
After-tax Margin |
|
3.2 |
% |
|
|
2.9 |
% |
|
|
3.1 |
% |
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Adjusted: |
|
|
|
|
|
|
|
||||||||
Net Income |
$ |
347 |
|
|
$ |
294 |
|
|
$ |
1,022 |
|
|
$ |
958 |
|
EPS – Diluted |
$ |
6.01 |
|
|
$ |
5.05 |
|
|
$ |
17.59 |
|
|
$ |
16.50 |
|
G&A Ratio |
|
6.4 |
% |
|
|
7.1 |
% |
|
|
6.8 |
% |
|
|
7.2 |
% |
After-tax Margin |
|
3.4 |
% |
|
|
3.4 |
% |
|
|
3.4 |
% |
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
||||||||
See the Reconciliation of Unaudited Non-GAAP Financial Measures at the end of this release. |
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Quarter Highlights
-
As of September 30, 2024, the Company served approximately 5.6 million members, an increase of
8% compared to September 30, 2023.
-
Premium revenue was approximately
$9.7 billion 18% year over year.
-
GAAP net income was
$5.65 34% year over year.
-
Adjusted net income was
$6.01 19% year over year.
-
The Company reaffirmed its full year 2024 guidance with expected premium revenue of approximately
$38 billion $23.50
“We are pleased with our performance in the quarter and, in a challenging environment, continued to execute on the fundamentals of the business,” said Joseph Zubretsky, President and Chief Executive Officer. “Our results reflect continued operating discipline despite the unprecedented short-term dynamics caused by redeterminations. We believe all of our businesses are well positioned for sustainable profitable growth.”
Premium Revenue
Premium revenue was approximately
Net Income
GAAP net income for the third quarter of 2024 was
Medical Care Ratio (MCR)
-
The consolidated MCR for the third quarter of 2024 was
89.2% and reflects continued focus on managing medical costs.
-
The Medicaid MCR for the third quarter of 2024 was
90.5% . Within that result, approximately 50 basis points were due to a premium rate reduction retroactive to the beginning of 2024, and approximately 20 basis points were due to Medicaid “new store” plans, which are continuing to improve in line with the Company’s expectations. Excluding the retroactive premium adjustment and new stores, the Medicaid MCR was approximately89.8% , which is higher than the Company’s long-term expectations, primarily due to redetermination-related acuity shifts and higher utilization for long-term services and supports, pharmacy, and behavioral health services.
-
The Medicare MCR for the third quarter of 2024 was
89.6% , which primarily reflects higher-than-expected utilization, partially offset by benefit adjustments implemented for 2024.
-
The Marketplace MCR for the third quarter of 2024 was
73.0% , better than the Company’s expectations, reflecting strong operating performance.
General and Administrative Expense Ratio
The G&A ratio and the adjusted G&A ratio for the third quarter of 2024 were
Balance Sheet
Cash and investments at the parent company were
Days in claims payable at September 30, 2024 was 48.
Cash Flow
Operating cash flow for the nine months ended September 30, 2024 was
2024 Guidance
Premium revenue for the full year is unchanged and expected to be approximately
Adjusted earnings per diluted share for the full year is unchanged and expected to be at least
Conference Call
Management will host a conference call and webcast to discuss Molina Healthcare’s third quarter results at 8:00 a.m. Eastern Time on Thursday, October 24, 2024. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 7014206. A telephonic replay of the conference call will be available through Thursday, October 31, 2024, by dialing (877) 344-7529 and entering confirmation number 5232318. A live audio broadcast of this conference call will be available on Molina Healthcare’s investor relations website, investors.molinahealthcare.com. A 30-day online replay will be available approximately an hour following the conclusion of the live broadcast.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This earnings release and the Company’s accompanying oral remarks contain forward-looking statements. The Company intends such forward-looking statements to be covered under the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements provide current expectations of future events based on certain assumptions, and all statements other than statements of historical fact contained in this earnings release and the Company’s accompanying oral remarks may be forward-looking statements. In some cases, you can identify forward-looking statements by words such as “guidance,” “future,” “anticipates,” “believes,” “embedded,” “estimates,” “expects,” “growth,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” or the negative of these terms or other similar expressions. Forward-looking statements contained in this earnings release include, but are not limited to, statements regarding our business and financial performance, 2024 guidance and long-term growth targets, expected headwinds during the second half of 2024, and management’s plans and objectives for future operations and business strategy.
Actual results could differ materially due to numerous known and unknown risks and uncertainties. These risks and uncertainties are discussed under the headings “Forward-Looking Statements,” and “Risk Factors,” in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2023, which is on file with the
These reports can be accessed under the investor relations tab of the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of October 23, 2024, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations.
MOLINA HEALTHCARE, INC. |
||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||
|
|
|
|
|||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||
|
September 30, |
|
September 30, |
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
|
|
|
|
|
|
|
|
|||||
|
(In millions, except per-share amounts) |
|||||||||||
Revenue: |
|
|
|
|
|
|
|
|||||
Premium revenue |
$ |
9,694 |
|
|
$ |
8,240 |
|
$ |
28,644 |
|
$ |
24,167 |
Premium tax revenue |
|
508 |
|
|
|
176 |
|
|
1,103 |
|
|
517 |
Investment income |
|
118 |
|
|
|
112 |
|
|
341 |
|
|
280 |
Other revenue |
|
20 |
|
|
|
20 |
|
|
63 |
|
|
60 |
Total revenue |
|
10,340 |
|
|
|
8,548 |
|
|
30,151 |
|
|
25,024 |
Operating expenses: |
|
|
|
|
|
|
|
|||||
Medical care costs |
|
8,643 |
|
|
|
7,306 |
|
|
25,425 |
|
|
21,215 |
General and administrative expenses |
|
676 |
|
|
|
608 |
|
|
2,078 |
|
|
1,817 |
Premium tax expenses |
|
508 |
|
|
|
176 |
|
|
1,103 |
|
|
517 |
Depreciation and amortization |
|
47 |
|
|
|
42 |
|
|
138 |
|
|
128 |
Other |
|
(1 |
) |
|
|
57 |
|
|
80 |
|
|
90 |
Total operating expenses |
|
9,873 |
|
|
|
8,189 |
|
|
28,824 |
|
|
23,767 |
Operating income |
|
467 |
|
|
|
359 |
|
|
1,327 |
|
|
1,257 |
Interest expense |
|
29 |
|
|
|
27 |
|
|
84 |
|
|
82 |
Income before income tax expense |
|
438 |
|
|
|
332 |
|
|
1,243 |
|
|
1,175 |
Income tax expense |
|
112 |
|
|
|
87 |
|
|
315 |
|
|
300 |
Net income |
$ |
326 |
|
|
$ |
245 |
|
$ |
928 |
|
$ |
875 |
|
|
|
|
|
|
|
|
|||||
Net income per share – Diluted |
$ |
5.65 |
|
|
$ |
4.21 |
|
$ |
15.97 |
|
$ |
15.08 |
|
|
|
|
|
|
|
|
|||||
Diluted weighted average shares outstanding |
|
57.7 |
|
|
|
58.1 |
|
|
58.1 |
|
|
58.1 |
MOLINA HEALTHCARE, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
|
September 30, |
|
December 31, |
||||
|
2024 |
|
2023 |
||||
|
Unaudited |
|
|
||||
|
(Dollars in millions, except per-share amounts) |
||||||
ASSETS |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
4,732 |
|
|
$ |
4,848 |
|
Investments |
|
4,482 |
|
|
|
4,259 |
|
Receivables |
|
3,259 |
|
|
|
3,104 |
|
Prepaid expenses and other current assets |
|
408 |
|
|
|
331 |
|
Total current assets |
|
12,881 |
|
|
|
12,542 |
|
Property, equipment, and capitalized software, net |
|
306 |
|
|
|
270 |
|
Goodwill and intangible assets, net |
|
1,923 |
|
|
|
1,449 |
|
Restricted investments |
|
289 |
|
|
|
261 |
|
Deferred income taxes, net |
|
227 |
|
|
|
227 |
|
Other assets |
|
132 |
|
|
|
143 |
|
Total assets |
$ |
15,758 |
|
|
$ |
14,892 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities: |
|
|
|
||||
Medical claims and benefits payable |
$ |
4,732 |
|
|
$ |
4,204 |
|
Amounts due government agencies |
|
2,026 |
|
|
|
2,294 |
|
Accounts payable, accrued liabilities and other |
|
1,215 |
|
|
|
1,252 |
|
Deferred revenue |
|
364 |
|
|
|
418 |
|
Total current liabilities |
|
8,337 |
|
|
|
8,168 |
|
Long-term debt |
|
2,332 |
|
|
|
2,180 |
|
Finance lease liabilities |
|
197 |
|
|
|
205 |
|
Other long-term liabilities |
|
122 |
|
|
|
124 |
|
Total liabilities |
|
10,988 |
|
|
|
10,677 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
— |
|
|
|
— |
|
Preferred stock, |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
453 |
|
|
|
410 |
|
Accumulated other comprehensive loss |
|
(9 |
) |
|
|
(82 |
) |
Retained earnings |
|
4,326 |
|
|
|
3,887 |
|
Total stockholders’ equity |
|
4,770 |
|
|
|
4,215 |
|
Total liabilities and stockholders’ equity |
$ |
15,758 |
|
|
$ |
14,892 |
|
|
|
|
|
||||
MOLINA HEALTHCARE, INC. |
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
2024 |
|
2023 |
||||
|
|
|
|
||||
|
(In millions) |
||||||
Operating activities: |
|
|
|
||||
Net income |
$ |
928 |
|
|
$ |
875 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
138 |
|
|
|
128 |
|
Deferred income taxes |
|
14 |
|
|
|
(33 |
) |
Share-based compensation |
|
98 |
|
|
|
88 |
|
Other, net |
|
8 |
|
|
|
3 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Receivables |
|
(31 |
) |
|
|
(132 |
) |
Prepaid expenses and other current assets |
|
(6 |
) |
|
|
(69 |
) |
Medical claims and benefits payable |
|
65 |
|
|
|
611 |
|
Amounts due government agencies |
|
(289 |
) |
|
|
377 |
|
Accounts payable, accrued liabilities and other |
|
(33 |
) |
|
|
(137 |
) |
Deferred revenue |
|
(53 |
) |
|
|
332 |
|
Income taxes |
|
29 |
|
|
|
309 |
|
Net cash provided by operating activities |
|
868 |
|
|
|
2,352 |
|
Investing activities: |
|
|
|
||||
Purchases of investments |
|
(989 |
) |
|
|
(1,295 |
) |
Proceeds from sales and maturities of investments |
|
871 |
|
|
|
670 |
|
Net cash paid in business combinations |
|
(344 |
) |
|
|
(3 |
) |
Purchases of property, equipment, and capitalized software |
|
(89 |
) |
|
|
(89 |
) |
Other, net |
|
68 |
|
|
|
(2 |
) |
Net cash used in investing activities |
|
(483 |
) |
|
|
(719 |
) |
Financing activities: |
|
|
|
||||
Common stock purchases |
|
(500 |
) |
|
|
— |
|
Proceeds from borrowings under credit facility |
|
300 |
|
|
|
— |
|
Repayment of credit facility |
|
(150 |
) |
|
|
— |
|
Common stock withheld to settle employee tax obligations |
|
(57 |
) |
|
|
(60 |
) |
Other, net |
|
(7 |
) |
|
|
(1 |
) |
Net cash used in financing activities |
|
(414 |
) |
|
|
(61 |
) |
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents |
|
(29 |
) |
|
|
1,572 |
|
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period |
|
4,908 |
|
|
|
4,048 |
|
Cash, cash equivalents, and restricted cash and cash equivalents at end of period |
$ |
4,879 |
|
|
$ |
5,620 |
|
|
|
|
|
||||
MOLINA HEALTHCARE, INC. |
||||||
UNAUDITED SEGMENT DATA |
||||||
(Dollars in millions) |
||||||
|
|
September 30, |
|
December 31, |
|
September 30, |
|
|
2024 |
|
2023 |
|
2023 |
Ending Membership by Segment: |
|
|
|
|
|
|
Medicaid |
4,941,000 |
|
4,542,000 |
|
4,757,000 |
|
Medicare |
247,000 |
|
172,000 |
|
173,000 |
|
Marketplace |
410,000 |
|
281,000 |
|
276,000 |
|
Total |
5,598,000 |
|
4,995,000 |
|
5,206,000 |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
Premium
|
|
Medical
|
|
MCR (1) |
|
Premium
|
|
Medical
|
|
MCR (1) |
||||||
|
|
|
|
|
|
||||||||||||
Medicaid |
$ |
7,668 |
|
$ |
730 |
|
90.5 |
% |
|
$ |
6,711 |
|
$ |
752 |
|
88.8 |
% |
Medicare |
|
1,367 |
|
|
142 |
|
89.6 |
|
|
|
1,032 |
|
|
78 |
|
92.4 |
|
Marketplace |
|
659 |
|
|
179 |
|
73.0 |
|
|
|
497 |
|
|
104 |
|
78.9 |
|
Consolidated |
$ |
9,694 |
|
$ |
1,051 |
|
89.2 |
% |
|
$ |
8,240 |
|
$ |
934 |
|
88.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended September 30, |
||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||
|
Premium
|
|
Medical
|
|
MCR (1) |
|
Premium
|
|
Medical
|
|
MCR (1) |
||||||
|
|
|
|
|
|
||||||||||||
Medicaid |
$ |
22,538 |
|
$ |
2,188 |
|
90.3 |
% |
|
$ |
19,545 |
|
$ |
2,242 |
|
88.5 |
% |
Medicare |
|
4,250 |
|
|
522 |
|
87.7 |
|
|
|
3,122 |
|
|
317 |
|
89.8 |
|
Marketplace |
|
1,856 |
|
|
509 |
|
72.6 |
|
|
|
1,500 |
|
|
393 |
|
73.8 |
|
Consolidated |
$ |
28,644 |
|
$ |
3,219 |
|
88.8 |
% |
|
$ |
24,167 |
|
$ |
2,952 |
|
87.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) The MCR represents medical costs as a percentage of premium revenue.
|
|||||||||||||||||
MOLINA HEALTHCARE, INC. |
|||||||
CHANGE IN MEDICAL CLAIMS AND BENEFITS PAYABLE |
|||||||
(Dollars in millions) |
|||||||
|
|||||||
The Company’s claims liabilities include additional reserves to account for moderately adverse conditions based on historical experience and other factors including, but not limited to, variations in claims payment patterns, changes in utilization and cost trends, known outbreaks of disease, and large claims. The Company’s reserving methodology is consistently applied across all periods presented. The amounts displayed for “Components of medical care costs related to: Prior year” represent the amounts by which the original estimates of claims and benefits payable at the beginning of the year were more than the actual liabilities based on information (principally the payment of claims) developed since those liabilities were first reported. The following table presents the components of the change in medical claims and benefits payable for the periods indicated: |
|||||||
|
Nine Months Ended |
||||||
|
September 30, |
||||||
|
2024 |
|
2023 |
||||
|
|
|
|
||||
|
Unaudited |
||||||
Medical claims and benefits payable, beginning balance |
$ |
4,204 |
|
|
$ |
3,528 |
|
Components of medical care costs related to: |
|
|
|
||||
Current year |
|
26,050 |
|
|
|
21,573 |
|
Prior year |
|
(625 |
) |
|
|
(358 |
) |
Total medical care costs |
|
25,425 |
|
|
|
21,215 |
|
Payments for medical care costs related to: |
|
|
|
||||
Current year |
|
22,172 |
|
|
|
18,228 |
|
Prior year |
|
3,215 |
|
|
|
2,707 |
|
Total paid |
|
25,387 |
|
|
|
20,935 |
|
Acquired balances, net of post-acquisition adjustments |
|
463 |
|
|
|
96 |
|
Change in non-risk and other payables |
|
27 |
|
|
|
331 |
|
Medical claims and benefits payable, ending balance |
$ |
4,732 |
|
|
$ |
4,235 |
|
|
|
|
|
||||
Days in Claims Payable (1) |
|
48 |
|
|
|
51 |
|
__________________ |
|
(1) |
The Company calculates Days in Claims Payable using claims incurred but not paid, or IBNP, and other fee-for-service payables included in medical claims and benefits payable, and quarterly fee-for-service related costs included in medical care costs within the Company’s consolidated financial statements. |
MOLINA HEALTHCARE, INC. |
RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES |
(In millions, except per diluted share amounts) |
|
The Company believes that certain non-GAAP (generally accepted accounting principles) financial measures are useful supplemental measures to investors in comparing the Company’s performance to the performance of other public companies in the health care industry. The non-GAAP financial measures are also used internally to enable management to assess the Company’s performance consistently over time. These non-GAAP financial measures, presented below, should be considered as supplements to, and not as substitutes for or superior to, GAAP measures. |
|
Adjustments represent additions and deductions to GAAP net income as indicated in the table below, which include the non-cash impact of amortization of acquired intangible assets, acquisition-related expenses, and the impact of certain expenses and other items that management believes are not indicative of longer-term business trends and operations. |
|
Adjusted G&A Ratio represents the GAAP G&A ratio, recognizing adjustments. |
|
Adjusted net income represents GAAP net income recognizing the adjustments, net of tax. The Company believes that adjusted net income is helpful to investors in assessing the Company’s financial performance. |
|
Adjusted net income per diluted share represents adjusted net income divided by weighted average common shares outstanding on a fully diluted basis. |
|
Adjusted after-tax margin represents adjusted net income, divided by total revenue. |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||||||||||||||
|
Amount |
|
Per
|
|
Amount |
|
Per
|
|
Amount |
|
Per
|
|
Amount |
|
Per
|
||||||||||||||||
GAAP Net income |
$ |
326 |
|
|
$ |
5.65 |
|
|
$ |
245 |
|
|
$ |
4.21 |
|
|
$ |
928 |
|
|
$ |
15.97 |
|
|
$ |
875 |
|
|
$ |
15.08 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Amortization of intangible assets |
$ |
21 |
|
|
$ |
0.35 |
|
|
$ |
20 |
|
|
$ |
0.36 |
|
|
$ |
62 |
|
|
$ |
1.07 |
|
|
$ |
63 |
|
|
$ |
1.09 |
|
Acquisition-related expenses (1) |
|
11 |
|
|
|
0.19 |
|
|
|
2 |
|
|
|
0.04 |
|
|
|
46 |
|
|
|
0.79 |
|
|
|
4 |
|
|
|
0.07 |
|
Other (2) |
|
(4 |
) |
|
|
(0.07 |
) |
|
|
41 |
|
|
|
0.70 |
|
|
|
16 |
|
|
|
0.27 |
|
|
|
41 |
|
|
|
0.70 |
|
Subtotal, adjustments |
|
28 |
|
|
|
0.47 |
|
|
|
63 |
|
|
|
1.10 |
|
|
|
124 |
|
|
|
2.13 |
|
|
|
108 |
|
|
|
1.86 |
|
Income tax effect |
|
(7 |
) |
|
|
(0.11 |
) |
|
|
(14 |
) |
|
|
(0.26 |
) |
|
|
(30 |
) |
|
|
(0.51 |
) |
|
|
(25 |
) |
|
|
(0.44 |
) |
Adjustments, net of tax |
|
21 |
|
|
|
0.36 |
|
|
|
49 |
|
|
|
0.84 |
|
|
|
94 |
|
|
|
1.62 |
|
|
|
83 |
|
|
|
1.42 |
|
Adjusted net income |
$ |
347 |
|
|
$ |
6.01 |
|
|
$ |
294 |
|
|
$ |
5.05 |
|
|
$ |
1,022 |
|
|
$ |
17.59 |
|
|
$ |
958 |
|
|
$ |
16.50 |
|
__________________ |
|
(1) |
Reflects non-recurring costs associated with acquisitions, including various transaction and certain integration costs. |
(2) |
The nine months ended September 30, 2024 includes non-recurring litigation and one-time termination benefits. The nine months ended September 30, 2023, reflect a credit loss on 2022 Marketplace risk adjustment receivables due to the insolvency of an issuer in the |
MOLINA HEALTHCARE, INC. |
|||||||
RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (CONTINUED) |
|||||||
2024 GUIDANCE |
|||||||
|
Amount |
|
Per
|
||||
GAAP Net income |
$ |
1,250 |
|
|
$ |
21.59 |
|
Adjustments: |
|
|
|
||||
Amortization of intangible assets |
|
83 |
|
|
|
1.43 |
|
Acquisition-related expenses |
|
49 |
|
|
|
0.86 |
|
Other |
|
16 |
|
|
|
0.27 |
|
Subtotal, adjustments |
|
148 |
|
|
|
2.56 |
|
Income tax effect (1) |
|
(38 |
) |
|
|
(0.65 |
) |
Adjustments, net of tax |
|
110 |
|
|
|
1.91 |
|
Adjusted net income |
$ |
1,360 |
|
|
$ |
23.50 |
|
__________________ |
|
(1) |
Income tax effect calculated at the statutory tax rate of approximately |
(2) |
Computations assume approximately 57.9 million diluted weighted average shares outstanding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023296710/en/
Investor Contact: Jeffrey Geyer, Jeffrey.Geyer@molinahealthcare.com, 305-317-3012
Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, 562-951-1588
Source: Molina Healthcare, Inc.
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