Centene Corporation Announces 2009 Financial Guidance and Related Updates
December 19 2008 - 6:00AM
Business Wire
Centene Corporation (NYSE: CNC) announced today its 2009 financial
guidance. As a result of the Company�s previously announced
decision to exit from the New Jersey market, operations of
University Health Plans, Inc. will be classified as discontinued
operations and have been excluded from the guidance provided. All
discussions below are in the context of continuing operations,
unless otherwise stated. For its 2009 fiscal year, the Company
expects: Revenues in the range of $3.650 billion to $3.775 billion,
excluding premium taxes. Earnings per diluted share of
approximately $1.82 to $1.94. Consolidated Health Benefits Ratio,
net of premium taxes, which reflects medical costs as a percentage
of premium revenues, of approximately 82.0% to 84.0%. Consolidated
G&A expense ratio in the range of 13.0% to 13.5%, net of
premium taxes. Effective tax rate of approximately 38.0% and
diluted shares outstanding of approximately 44.8 million. Eric R.
Slusser, Centene�s Chief Financial Officer, stated, �The 2009
financial guidance anticipates the conversion of Florida membership
to an at-risk health plan, continued expansion of our South
Carolina membership, full year contributions from Texas Foster
Care, Celtic and the new Arizona acute care contract and low single
digit rate increases.� Centene reaffirms its 2008 financial
guidance in the previously announced ranges, exclusive of any one
time charges and reclassifications associated with the sale of our
New Jersey health plan. Full year 2008 earnings will be reported on
February 10th, 2009, with the conference call at 8:30 AM (Eastern
Time). Separately, Centene has received notification of approval to
serve Florida Medicaid members on a full-risk basis effective
January 1, 2009. Sunshine State Health Plan, a wholly-owned
subsidiary of Centene, will begin to convert members from its joint
venture partner, Access Health Solutions, LLC, in the Tampa Bay and
Miami-Dade markets in the first quarter of 2009. Sunshine will
collaborate with the Florida Agency for Healthcare Administration
and Access to expand its geographic presence in Florida and
transition the Access members to Sunshine throughout 2009. As
previously announced, Centene entered into two agreements with
AMERIGROUP on November 19, 2008 under which Centene would sell to
AMERIGROUP certain assets in New Jersey and would purchase from
AMERIGROUP certain assets in South Carolina. Closing of the
transactions is contingent upon regulatory approvals and
satisfaction of other conditions. Since the announcement of the
transactions, issues have arisen that have required the parties to
discuss the satisfaction of certain closing conditions. The parties
are in discussions to resolve these matters and it remains
Centene�s objective to close both transactions. Centene will host a
conference call today at 8:30 AM (Eastern Time) to discuss the
details of its guidance. Michael F. Neidorff, Chairman and Chief
Executive Officer, and Eric R. Slusser, Executive Vice President
and Chief Financial Officer, of Centene Corporation will lead the
call. Investors and other interested parties are invited to listen
to the conference call by dialing 800-273-1254 in the U.S. and
Canada, 973-638-3440 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 January 2, 2009, 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 74434480. 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 the State
Children�s Health Insurance Program (SCHIP), as well as Aged,
Blind, or Disabled (ABD), Foster Care,�Long-Term Care�and Medicare
(Special Needs Plans). The Company operates local health plans and
offers a range of healthcare solutions for the rising number of
uninsured Americans. It contracts with other healthcare and
commercial organizations to provide specialty services including
behavioral health, life and health management, managed vision,
nurse triage, pharmacy benefits management and treatment
compliance. Information regarding Centene is available via the
Internet at www.centene.com. The information provided in this press
release contains 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. Readers are
cautioned that 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 may differ from projections or estimates due to a variety
of important factors, including 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.
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