ST. LOUIS, Dec. 16, 2011
/PRNewswire/ -- Centene Corporation (NYSE: CNC) announced today its
2012 financial guidance. The Health Benefits Ratio and the
General and Administrative expense ratio below reflect the
reclassification of certain General and Administrative expenses and
Medical Costs to reflect the National Association of Insurance
Commissioners (NAIC) definitions released earlier this year.
For its 2012 fiscal year, the Company expects:
- Premium and Service Revenues in the range of $7.2 billion to $7.6 billion.
- Earnings per diluted share of approximately $2.60 to $2.80.
- Consolidated Health Benefits Ratio of approximately 87.0% to
88.0%.
- Consolidated G&A expense ratio in the range of 9.5% to
10.0%.
- Effective tax rate, excluding non-controlling interest, of
approximately 38.5% to 39.0% and diluted shares outstanding of
approximately 53.4 million.
- Days in claims payable between 39 and 44.
The table below illustrates the reclassification of certain
General and Administrative expenses and Medical Costs to reflect
the new NAIC definitions. The reclassifications will be made
to historical periods for comparability and have no impact on net
earnings. The Company's 2011 and 2012 guidance is shown in the
table below.
|
2011
Guidance
|
|
2012
Guidance
|
|
Health
Benefits Ratio:
|
|
|
|
|
Historical
|
83.2% -
83.6%
|
|
84.9% -
85.9%
|
|
NAIC reclassification impact(1)
|
2.0%
|
|
2.1%
|
|
Revised
|
85.2% -
85.6%
|
|
87.0% -
88.0%
|
|
|
|
|
|
|
G&A
expense ratio:
|
|
|
|
|
Historical
|
12.9%
-13.4%
|
|
11.5%
-12.0%
|
|
NAIC reclassification impact(1)
|
(1.9)%
|
|
(2.0)%
|
|
Revised
|
11.0% -
11.5%
|
|
9.5% -
10.0%
|
|
|
|
|
|
|
___________________________________________________
(1) The
percentage impact on the HBR and the G&A expense ratio differs
as a result of utilizing different denominators in each formula
(HBR is calculated as Medical Costs divided by Premium Revenue; the
G&A expense ratio is calculated as G&A expense divided by
Premium and Service Revenues).
|
Additionally, the Company reaffirms its 2011 guidance as
follows:
|
2011
Guidance
|
|
2012
Guidance
|
|
Premium
and Service Revenues (in millions)
|
$5,100 -
$5,200
|
|
$7,200 -
$7,600
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per diluted share
|
$2.09
-$2.13
|
|
$2.60 -
$2.80
|
|
|
|
|
|
|
Tax rate
(excluding noncontrolling interest)
|
37.3% -
37.8%
|
|
38.5%
-39.0%
|
|
|
|
|
|
|
Diluted
shares (in thousands)
|
52,500
|
|
53,400
|
|
Full year 2011 earnings will be reported on February 7, 2012, at 6:00
AM, with the conference call at 8:30
AM (Eastern Time).
Centene will host an investor meeting, including a
question-and-answer session, to discuss the details of its
guidance. The meeting will begin promptly today at 8:30 AM (Eastern Time) and end approximately at
11:00 AM (Eastern Time).
Michael F. Neidorff, Chairman and
Chief Executive Officer, and William N.
Scheffel, Executive Vice President, Chief Financial Officer
and Treasurer, of Centene Corporation will host the meeting before
an audience of investors at the New York Helmsley Hotel on East
42nd Street in New York City.
Investors and other interested parties who are unable to attend
in person are invited to listen to the investor meeting via a live
audio webcast on the Company's website at www.centene.com, under
the Investors section. In addition, questions can be submitted via
e-mail at: Questions@centene.com.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading
multi-line healthcare enterprise that provides programs and related
services to the rising number of under-insured and uninsured
individuals. Many receive benefits provided under Medicaid,
including the Children's Health Insurance Program (CHIP), as well
as Aged, Blind or Disabled (ABD), Foster
Care, long-term care, other state-sponsored programs and
Medicare (Special Needs Plans). Centene's CeltiCare subsidiary
offers states unique "exchange-based" and other cost-effective
coverage solutions for low-income populations. The company operates
local health plans and offers a range of health insurance
solutions. It also contracts with other healthcare and commercial
organizations to provide specialty services including behavioral
health, life and health management, managed vision, telehealth
services, and pharmacy benefits management. More information
regarding Centene is available 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.
SOURCE Centene Corporation