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Molina Healthcare Reports Third Quarter 2024 Financial Results

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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.

Positive
  • 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
Negative
  • 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 18% year-over-year to $9.7 billion, while adjusted EPS grew 19% to $6.01. The company maintained its full-year guidance of $38 billion in premium revenue and adjusted EPS of at least $23.50.

Key performance indicators show mixed results: The Medical Care Ratio increased to 89.2% from 88.7%, indicating higher medical costs, while the G&A ratio improved to 6.5% from 7.1%. Membership grew 8% to 5.6 million members, demonstrating solid market expansion despite Medicaid redetermination headwinds.

The balance sheet shows some pressure with parent company cash declining to $195 million from $742 million, partly due to $500 million in share repurchases. Operating cash flow decreased significantly year-over-year, primarily due to timing differences in government receivables and payables.

Reaffirms Full Year 2024 Earnings Guidance

LONG BEACH, Calif.--(BUSINESS WIRE)-- Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today reported third quarter 2024 GAAP earnings per diluted share of $5.65 and adjusted earnings per diluted share of $6.01. Financial results are summarized below:

 

Three months ended

 

Nine months ended

 

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.

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 for the third quarter of 2024, an increase of 18% year over year.
  • GAAP net income was $5.65 per diluted share for the third quarter of 2024, an increase of 34% year over year.
  • Adjusted net income was $6.01 per diluted share for the third quarter of 2024, an increase of 19% year over year.
  • The Company reaffirmed its full year 2024 guidance with expected premium revenue of approximately $38 billion and adjusted earnings of at least $23.50 per diluted share.

“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 $9.7 billion for the third quarter of 2024, an increase of 18% year over year. The higher premium revenue reflects new contract wins, acquisitions, and growth in our current footprint, partially offset by the impact of Medicaid redeterminations.

Net Income

GAAP net income for the third quarter of 2024 was $5.65 per diluted share, an increase of 34% year over year. Adjusted net income for the third quarter of 2024 was $6.01 per diluted share, an increase of 19% year over year.

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 approximately 89.8%, 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 6.5% and 6.4%, respectively, reflecting disciplined cost management, one-time credits related to certain vendor contracts, and operating leverage.

Balance Sheet

Cash and investments at the parent company were $195 million as of September 30, 2024 compared to $742 million as of December 31, 2023. The Company purchased approximately 1.5 million shares for $500 million in the third quarter of 2024.

Days in claims payable at September 30, 2024 was 48.

Cash Flow

Operating cash flow for the nine months ended September 30, 2024 was $868 million, compared to $2,352 million for the nine months ended September 30, 2023. The decrease in cash flow for the period year-over-year was driven mainly by the net impact of timing differences in government receivables and payables, including Medicare and Medicaid prepayments, risk corridor settlement activity, and timing differences in receipts and payments of provider payables.

2024 Guidance

Premium revenue for the full year is unchanged and expected to be approximately $38 billion, an increase of approximately 17% from the full year 2023.

Adjusted earnings per diluted share for the full year is unchanged and expected to be at least $23.50, representing approximately 13% growth over the full year 2023. Continued strong performance due to Marketplace, operating leverage, and higher net investment income are expected to offset the higher-than-expected trend in Medicaid and Medicare in the second half of the year.

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 U.S. Securities and Exchange Commission (the “SEC”), and in the Company’s other filings with the SEC, including its Quarterly Report on Form 10-Q for the period ended September 30, 2024, to be filed with the SEC.

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, $0.001 par value, 150 million shares authorized; outstanding: 57 million shares at September 30, 2024, and 58 million at December 31, 2023

 

 

 

 

 

Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding

 

 

 

 

 

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
Revenue

 

Medical
Margin

 

MCR (1)

 

Premium
Revenue

 

Medical
Margin

 

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
Revenue

 

Medical
Margin

 

MCR (1)

 

Premium
Revenue

 

Medical
Margin

 

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
Diluted
Share

 

Amount

 

Per
Diluted
Share

 

Amount

 

Per
Diluted
Share

 

Amount

 

Per
Diluted
Share

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 Texas risk pool.

MOLINA HEALTHCARE, INC.

RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (CONTINUED)

2024 GUIDANCE

 

 

Amount

 

Per
Diluted
Share (2)

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 25.5%.

(2)

Computations assume approximately 57.9 million diluted weighted average shares outstanding.

 

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.

FAQ

What was Molina Healthcare's (MOH) Q3 2024 earnings per share?

Molina Healthcare reported Q3 2024 GAAP earnings of $5.65 per diluted share and adjusted earnings of $6.01 per diluted share.

What is Molina Healthcare's (MOH) premium revenue for Q3 2024?

Molina Healthcare's premium revenue for Q3 2024 was $9.7 billion, an 18% increase year-over-year.

What is Molina Healthcare's (MOH) full year 2024 guidance?

Molina Healthcare reaffirmed its 2024 guidance with expected premium revenue of $38 billion and adjusted earnings of at least $23.50 per diluted share.

What was Molina Healthcare's (MOH) Medical Care Ratio in Q3 2024?

Molina Healthcare's consolidated Medical Care Ratio for Q3 2024 was 89.2%.

Molina Healthcare, Inc.

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