Centene Corporation Announces Preliminary 2006 Second Quarter Results; Updates Full-Year Guidance
July 18 2006 - 6:00AM
Business Wire
Centene Corporation (NYSE: CNC) today announced preliminary
earnings per diluted share of $0.10-$0.12 for the second quarter of
2006, which includes an adjustment of approximately $9.7 million,
or $0.14 per diluted share, for additional medical costs primarily
related to March 2006 in Indiana and Texas. Centene also announced
today that it is revising its 2006 annual earnings guidance to
$0.95-$1.04 per diluted share from its previous guidance of
$1.53-$1.70 per diluted share, primarily due to these adverse
medical cost trends. The Company will provide additional details to
this guidance on its conference call scheduled for Tuesday, July
25, 2006. Michael F. Neidorff, Centene's Chairman and Chief
Executive Officer, said, "We are truly disappointed and are working
to resolve the factors which impacted our second quarter results
and will provide additional details on our conference call next
week. We are in the process of finalizing an in-depth analysis to
determine the root cause of these issues." The Company is in the
process of finalizing the earnings results for the second quarter
of 2006. Centene's independent registered public accounting firm
has not yet completed its review of the Company's second quarter
results. As such, there can be no assurance that the final earnings
per diluted share for the second quarter of 2006 will be within the
ranges specified in this press release. The estimates of earnings
per diluted share included in this press release constitute
forward-looking statements and are subject to all the risks and
uncertainties described elsewhere in this press release. Second
Quarter Conference Call The Company will report its earnings for
the second quarter of 2006 at 8:30 a.m. Eastern Time on Tuesday,
July 25, 2006. Investors and other interested parties are invited
to listen to the conference call by dialing 800-273-1254 in the
U.S. and Canada, 706-679-8592 from abroad, or via a live Internet
broadcast on the Company's website at www.centene.com, under the
Investor Relations section. A replay will be available for
on-demand listening shortly after the completion of the call until
11:59 PM (Eastern Time) on August 8, 2006 at the aforementioned
URL, or by dialing 800-642-1687 in the U.S. and Canada, or
706-645-9291 from abroad, and entering access code 1800936.
Investor Meeting The Company will also host a meeting in New York
City on Wednesday, July 26, 2006. at the St. Regis Hotel. Further
details will be posted on the Company's website. The second
paragraph of this press release contain forward-looking statements
that relate to future events and future financial performance of
Centene; subsequent events and developments may cause the Company's
estimates to change. The Company disclaims any obligation to update
this forward-looking financial information in the future. Matters
subject to forward-looking statements involve known and unknown
risks and uncertainties, including economic, regulatory,
competitive and other factors that may cause Centene's or its
industry's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. Actual results also
may differ from projections or estimates due to a variety of
important factors, including Centene's ability to successfully
integrate and manage acquisitions, Centene's ability to accurately
predict and effectively manage health benefits and other operating
expenses, competition, changes in healthcare practices, changes in
federal or state laws or regulations, inflation, provider contract
changes, new technologies, reduction in provider payments by
governmental payors, major epidemics, disasters and numerous other
factors affecting the delivery and cost of healthcare. The
expiration, cancellation or suspension of Centene's Medicaid
managed care contracts by state governments would also negatively
affect Centene. About Centene Corporation Centene Corporation is a
leading multi-line healthcare enterprise that provides programs and
related services to individuals receiving benefits under Medicaid,
including Supplemental Security Income (SSI) and the State
Children's Health Insurance Program (SCHIP). The Company operates
health plans in Georgia, Indiana, Kansas, Missouri, New Jersey,
Ohio, Texas and Wisconsin. In addition, the Company contracts with
other healthcare organizations to provide specialty services
including behavioral health, disease management, nurse triage,
pharmacy benefit management and treatment compliance. Information
regarding Centene is available via the Internet at www.centene.com.
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