We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Humana Inc | NYSE:HUM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
11.39 | 2.96% | 395.60 | 401.11 | 391.02 | 395.15 | 1,773,672 | 22:57:48 |
Humana Inc. (NYSE: HUM) today reported diluted earnings per common share (EPS) for the quarter ended March 31, 2016 (1Q 2016) of $1.56 compared to $2.82 for the quarter ended March 31, 2015 (1Q 2015). The company also evaluates certain financial measures on an adjusted basis and has included certain adjusted financial measures(a) throughout this earnings press release.
Beginning with its 1Q 2016 results, the company is also adjusting for the exclusion of amortization of identifiable intangibles to align with reporting methods used across the managed care sector. For comparability to 1Q 2016, adjusted amounts for 1Q 2015 have been recast to also reflect the amortization adjustment.
Adjusted consolidated pretax income(a) and Adjusted EPS(a) for 1Q 2016 and 1Q 2015 were as follows:
Consolidated pretax income (in millions)
1Q 2016
1Q 2015Recast
Generally Accepted Accounting Principles (GAAP) $500 $744 Transaction and integration costs associated with pending transaction with Aetna Inc. (Aetna) 34 - Amortization associated with identifiable intangibles 21 26 Adjusted (non-GAAP) $555 $770Diluted earnings per common share (EPS)
1Q 2016
1Q 2015Recast
GAAP $1.56 $2.82 Transaction and integration costs associated with pending transaction with Aetna 0.21 - Amortization associated with identifiable intangibles 0.09 0.11 Tax benefit related to sale of Concentra, Inc. (Concentra) - (0.35) Adjusted (non-GAAP) $1.86 $2.58The lower year-over-year Adjusted consolidated pretax income for 1Q 2016 primarily reflected lower operating results from the Retail segment, partially offset by slightly higher operating results in the Group and Healthcare Services segments. For the Retail segment, an increase in earnings associated with higher premiums was more than offset by an increase in the benefit ratio. The Group segment experienced a lower operating cost ratio which was partially offset by a higher benefit ratio. The Healthcare Services segment grew revenues in its pharmacy and home based businesses with the related increase in pretax earnings partially offset by decreased profitability in the company’s provider services business. Further discussions of each segment’s operating results are below.
The lower year-over-year Adjusted EPS for the quarter reflected the same factors impacting Adjusted consolidated pretax income as well as the beneficial impact of a lower share count in 1Q 2016 compared to 1Q 2015.
“We are pleased with our first-quarter earnings and believe the strategic and operational initiatives implemented in 2015, focusing on both clinical processes and administrative costs, will continue to yield positive results across the enterprise,” said Bruce D. Broussard, Humana’s President and Chief Executive Officer. “As we continue to anticipate closing the pending transaction with Aetna in the second half of 2016, we believe the combination will further enhance the high-quality healthcare experience focused on the health and wellness of our members we strive for every day.”
“We are encouraged by the early indicators we are seeing in our Medicare and Healthcare Services businesses but remain cautious while our healthcare exchange experience continues to develop,” added Brian A. Kane, Senior Vice President and Chief Financial Officer. “We remain keenly focused on an enterprise-wide view of driving shareholder value by balancing continued pretax margin improvement and membership growth across our franchise.”
2016 Earnings Guidance
Humana reaffirmed Adjusted EPS for the year ending December 31, 2016 (FY16) of at least $8.85 as noted below. For comparability to FY16 Adjusted EPS guidance, FY15 Adjusted EPS is recast below to also adjust for the exclusion of amortization of identifiable intangibles as discussed above. Additional FY16 guidance points are included in the table on page 18 of this earning press release.
The company is projecting Adjusted EPS of at least $2.15 for the second quarter of 2016 and reaffirmed its expectation for Adjusted EPS for the second through fourth quarters of 2016 to generally mirror the percentage distribution of Adjusted EPS among the last three quarters of 2015.
Diluted earnings per common share FY16E FY15 Recast GAAP At least $8.32 $8.44 Premium deficiency reserve (PDR) for certain 2016 individual commercial policies - 0.74 Transaction and integration costs associated with pending transaction with Aetna; costs beyond those for 1Q 2016 are to be determined At least 0.21 0.14 Gain related to sale of Concentra - (1.57) Amortization of identifiable intangibles 0.32 0.39 Adjusted (non-GAAP) At least $8.85 $8.14Aetna Transaction
As previously announced, Humana entered into a definitive merger agreement with Aetna on July 2, 2015 under which, at the closing, Aetna will acquire each outstanding common share of Humana for $125 in cash and 0.8375 of an Aetna common share. At separate special stockholder meetings both held on October 19, 2015, Humana stockholders approved the adoption of the Aetna merger agreement and Aetna shareholders approved the issuance of the Aetna common stock in the transaction.
The transaction is subject to customary closing conditions, including the expiration of the Hart-Scott-Rodino anti-trust waiting period and approvals of certain state Departments of Insurance and other regulators. During 1Q 2016, Humana completed its submission of data to the Department of Justice (DOJ) in response to the DOJ’s request for information in connection with the pending transaction and, to date, has secured approximately two-thirds of the necessary state change of control approvals.
The company continues to expect the transaction to close in the second half of 2016.
Conference Call
Given the pending transaction with Aetna, the company is not hosting a conference call in conjunction with its 1Q 2016 earnings release and does not expect to do so for future quarters. Please direct any questions regarding this earnings release to Humana Investor Relations or Humana Corporate Communications.
Humana Consolidated Highlights
Consolidated revenues
Consolidated revenues (including investment income) for 1Q 2016 were $13.80 billion, a decrease of $33 million, or less than 1 percent, from $13.83 billion in 1Q 2015, with total premiums and services revenues for 1Q 2016 of $13.70 billion decreasing $38 million, or less than 1 percent, from $13.74 billion in 1Q 2015. The year-over-year decrease in premiums and services revenues primarily reflected lower services revenues in 1Q 2016 given the sale of Concentra in June 2015 and the loss of premiums associated with a large group Medicare account that moved to a private exchange. These decreases were partially offset by premiums associated with higher average individual Medicare membership and per-member premium increases.
Consolidated benefits expense
The 1Q 2016 consolidated benefit ratio of 84.8 percent increased by 170 basis points from 83.1 percent for the prior year’s quarter reflecting a higher ratio in the Retail and Group segments.
As discussed more fully in the segment-level highlights section of this earnings release, the year-over-year increase in the consolidated benefit ratio was primarily driven by the unfavorable seasonal impact of an extra business day from leap year, as well as a higher benefit in 1Q 2015 of the seasonal pattern of earnings associated with the individual commercial business.
Prior period medical claims development (Prior Period Development) favorably impacted the consolidated benefit ratio by $340 million in 1Q 2016 and $194 million in 1Q 2015 with both the Retail and Group segments experiencing year-over-year increases. Prior Period Development decreased the consolidated benefit ratio by 250 basis points in 1Q 2016 and 150 basis points in 1Q 2015. As discussed below, the beneficial effect to earnings of the higher favorable Prior Period Development in 1Q 2016 was partially offset by adjustments to receivables associated with the premium stabilization programs established under health care reform, commonly referred to as the 3Rs(b).
Consolidated operating expenses
Consolidated operating cost ratio
(operating costs as a percent of total revenues less investment income)
1Q 2016
1Q 2015
GAAP 12.9% 14.2% Transaction and integration costs associated with pending transaction with Aetna (0.2%) - Adjusted (non-GAAP) (a) 12.7% 14.2%The 1Q 2016 Adjusted consolidated operating cost ratio (operating costs as a percent of total revenues less investment income) of 12.7 percent, a decrease of 150 basis points from 14.2 percent in 1Q 2015, primarily reflected the sale of Concentra in June 2015, which carried a higher operating cost ratio than that for the company on a consolidated basis, as well as management cost-reduction initiatives across all lines of business.
Balance sheet
At March 31, 2016, the company had cash, cash equivalents, and investment securities of $12.48 billion, up $798 million from $11.68 billion at December 31, 2015 primarily reflecting the changes driven by higher cash flows from operations discussed below as well as the timing of net receipts from the Centers for Medicare and Medicaid Services (CMS) for both Part D reinsurance and low-income member claims.
Cash and short-term investments held at the parent company of $1.41 billion at March 31, 2016 decreased $234 million from $1.65 billion at December 31, 2015, primarily reflecting the funding in 1Q 2016 of $450 million of capital contributions into subsidiaries as a result of the statutory-based PDR for the Affordable Care Act (ACA)-compliant individual commercial business, capital expenditures and the payment of stockholder dividends, all partially offset by operating cash derived from the company’s non-insurance subsidiaries’ profits.
At March 31, 2016, net receivables of $759 million were associated with the 3Rs. Approximately 56 percent of the total net 3Rs receivables were related to reinsurance recoverables. At March 31, 2016, net receivables (payables) for the 3Rs were as follows:
Net Amounts Accrued for the 3Rs(in millions)Assets (liabilities)
Balances Related toprior plan years at3/31/16
Balances Related to2016 plan year at3/31/16
Total Balancesat 3/31/16
Total Balances at12/31/15 (all related to2014 and 2015 planyears)
Reinsurance recoverables $402 $25 $427 $610 Net risk adjustment settlement (122) (12) (134) (87) Net risk corridor settlement (c) 369 97 466 459 Total Net Amounts Accrued for the 3Rs $649 $110 $759 $982In 1Q 2016, the Department of Health and Human Services (HHS) paid health plans a portion of the estimated reinsurance recoverables for the 2015 plan year, with the remainder expected to be paid in the third and fourth quarters of 2016. Reinsurance recoverables associated with the 2014 plan year were paid by HHS in the third and fourth quarters of 2015.
Other changes in estimate of the net 3Rs receivables for prior plan years during 1Q 2016 primarily result from Prior Period Development, as well as updates to third-party studies and tax estimates.
Net risk corridor receivables are anticipated to be primarily collected in future years and thus the related amounts have been classified as long-term receivables as of March 31, 2016.
Days in claims payable (DCP) of 43.0 at March 31, 2016 increased 1.4 days from 41.6 at December 31, 2015. DCP represents the benefits payable at the end of the quarter divided by the average benefits expense per day in the quarter. The company computes this metric excluding: (1) the impact of the military services and Medicare stand-alone PDP businesses, (2) reinsurance expense related to the commercial individual business and long-duration products and (3) the PDR related to the 2016 ACA-compliant individual commercial medical policies.
As previously disclosed and discussed above, in the fourth quarter of 2015, the company recorded a PDR related to certain of its 2016 individual commercial policies. The PDR is included on the company’s balance sheet in benefits payable. Activity associated with the PDR during 1Q 2016 was as follows:
Premium Deficiency Reserve Rollforward(in millions)
1Q 2016
Balance at January 1, 2016 $176 1Q 2016 financial results for ACA-compliant individual commercial medical business excluding related indirect administrative costs 13 Balance at March 31, 2016 $189Debt-to-total capitalization at March 31, 2016 was 28.0 percent, down 30 basis points from 28.3 percent at December 31, 2015, and below the company’s long-term target range of 30 to 35 percent needed to maintain its investment grade credit rating, providing the company with significant financial flexibility. The sequential change in this ratio primarily reflected higher capital from the net impact of 1Q 2016 earnings, partially offset by cash dividends during the quarter. As of March 31, 2016, the company had approximately $300 million outstanding on its commercial paper program compared to $299 million at December 31, 2015.
Cash flows from operations
Cash flow provided by operations of $482 million in 1Q 2016 increased $375 million from $107 million in 1Q 2015 primarily due to the favorable timing of working capital changes partially offset by lower earnings year over year. Significant year-over-year changes to working capital items primarily included the early receipt of certain commercial reinsurance recoveries from HHS in 1Q 2016 discussed above, one less payroll cycle in 1Q 2016 than in 1Q 2015 and lower management incentive payments in 1Q 2016 associated with prior-year performance than those paid in 1Q 2015.
Share repurchases
In September 2014, the company’s Board of Directors approved a new $2 billion share repurchase authorization with an expiration date of December 31, 2016 that replaced its previous $1 billion share repurchase authorization. Approximately $1.04 billion of the current $2 billion repurchase authorization remains outstanding.
Due to the pending transaction with Aetna, the company suspended its share repurchase program on July 2, 2015.
Cash dividends
The company paid cash dividends to its stockholders of $47 million in 1Q 2016 and $44 million in 1Q 2015. In April 2016, the company’s Board of Directors declared a cash dividend of $0.29 per share payable on July 29, 2016 to stockholders of record on June 30, 2016.
The company’s ability and intent to continue its quarterly dividend policy is not impacted by the pending transaction with Aetna, although the company has agreed with Aetna that its quarterly dividend will not exceed $0.29 per share prior to closing the transaction.
Humana’s Retail Segment
This segment consists of Medicare benefits, marketed to individuals or directly via group accounts, as well as individual commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and financial protection products. In addition, this segment also includes the company’s contract with CMS to administer the Limited Income Newly Eligible Transition (LI-NET) prescription drug plan program and contracts with various states to provide Medicaid, dual eligible, and Long-Term Support Services (LTSS) benefits. These contracts are collectively referred to as state-based contracts.
Retail Segment Highlights – 1Q 2016
Individual Medicare Advantage business
The company’s individual Medicare Advantage operating results for 1Q 2016 are consistent with management’s expectations, reflecting measures taken to address challenges faced by the company in 2015 such as strategic benefit plan design changes, refinements in the company’s clinical programs and enhancements to financial recovery processes. Further, both early utilization metrics and Prior Period Development associated with claim recoveries were positive relative to the company’s expectations. Although early indications of Medicare Advantage performance are positive, the company is continuing to monitor performance and therefore has not fully reflected the impact of these early indicators in its financial guidance for FY16.
On February 22, 2016, the company issued its preliminary analysis of the 2017 Medicare Advantage and Part D Advance Notice and Draft Call Letter (the Advance Notice) issued by CMS on February 19, 2016 indicating a projected 2017 rate increase of 0.2 percent. On April 4, 2016, CMS issued its announcement of 2017 Medicare Advantage Capitation Rates and Medicare Advantage and Part D Payment Policies and Final Call Letter (the Final Rate Notice). The company believes the Final Rate Notice will result in Medicare Advantage funding pressure of approximately 1.3 percent for 2017. The primary difference between the company’s preliminary Advance Notice analysis and the analysis of the Final Rate Notice was CMS’ acknowledgement of a technical error in the Advance Notice that was corrected in the Final Rate Notice. The beneficial effect of the temporary suspension of the health insurance industry fee for 2017 announced by CMS in December 2015 is not reflected in the company’s estimate for its 2017 rate changes.
The company is in the process of designing its Medicare Advantage product offerings for 2017 and is drawing upon its program expertise to design competitive offerings that promote quality of care and service for its members while driving overall enterprise value by balancing membership growth with pretax margin improvement.
Stand-alone Prescription Drug Plan (PDP) business
For 1Q 2016 the company’s stand-alone PDP business performed in line with management’s expectations reflecting solid membership growth and emerging cost trends consistent with expectations incorporated into 2016 plan designs. Importantly, the company’s Humana-Walmart plan remains a leader in low-price product offerings.
Group Medicare Advantage business
In 1Q 2016, the company’s group Medicare Advantage business performed in line with expectations, reflecting lower revenues and earnings than those in the prior year, primarily due to the previously disclosed loss of a large profitable account on January 1, 2016 as this account moved to a private exchange. The majority of members in the account that moved to a private exchange opted for Original Medicare combined with a Medicare supplement offering.
Individual commercial business
As previously disclosed, in the fourth quarter of 2015 the company recorded a PDR associated with its 2016 individual commercial ACA-compliant offerings. Historically, this business has reported a profit in the first quarter of the year due to the related benefit designs. Because the company continues to anticipate a loss associated with this business for the full year 2016, the seasonal earnings generated in 1Q 2016 are offset by an increase in the PDR, resulting in a higher benefit ratio year over year. This first quarter seasonality was anticipated as the company developed its estimate of the full-year PDR recorded in the fourth quarter of 2015.
Financial results associated with the wind-down of the non-ACA compliant (legacy) business, including the related release of policy reserves, as well as indirect administrative costs associated with ACA-compliant offerings are included in the company’s 1Q 2016 financial results.
Consistent with data evaluated as the company established the PDR in the fourth quarter of 2015, early indications for ACA-compliant business effective in 1Q 2016 include:
The company will continue to evaluate the performance of this business for 2016 as it further develops and the corresponding impact on the PDR, if any, over the coming quarters.
Humana is in the process of finalizing plans for its ACA-compliant individual commercial medical market offerings in 2017. Humana anticipates proposing a number of changes to retain a viable product for individual consumers, where feasible, and address persistent risk selection challenges. Such changes may include certain statewide market and product exits both on and off exchange, service area reductions and pricing commensurate with anticipated levels of risk by state.
State-based contracts business
The performance of the company’s state-based contract business is generally in line with management’s expectations. Operating results projected for FY16 are primarily driven by the full-year benefit of a rate increase for the company’s Medicaid Temporary Assistance for Needy Families (TANF) products, provider network initiatives and the continued rationalization of this business’ administrative cost structure.
Retail segment premiums and services revenue:
Retail segment enrollment:
Retail segment benefits expense:
Retail segment operating costs:
Retail segment pretax results:
Retail segment pretax income (in millions)
1Q 2016
1Q 2015Recast
Generally Accepted Accounting Principles (GAAP) $154 $375 Amortization associated with identifiable intangibles 6 7 Adjusted (non-GAAP) $160 $382Humana’s Group Segment
This segment consists of employer group commercial fully-insured medical and specialty health insurance benefits, including dental, vision, and other supplemental health and voluntary insurance benefits, as well as Administrative Services Only (ASO) products. In addition, the Group segment includes health and wellness products (primarily marketed to employer groups) and military services business, primarily the TRICARE South Region contract.
Group Segment Highlights
The Group segment’s 1Q 2016 performance was generally in line with management’s expectations.
Group segment premiums and services revenue:
Group segment enrollment:
Group segment benefits expense:
Group segment operating costs:
Group segment pretax results:
Group segment pretax income (in millions)
1Q 20161Q 2015Recast
Generally Accepted Accounting Principles (GAAP) $158 $154 Amortization associated with identifiable intangibles 3 3 Adjusted (non-GAAP) $161 $157Humana’s Healthcare Services Segment
This segment includes services offered to the company’s health plan members as well as to third parties, including pharmacy solutions, provider services, home based services, and clinical programs, as well as services and capabilities to advance population health.
Healthcare Services Segment Highlights
1Q 2016 operating performance for the Healthcare Services segment was slightly ahead of management’s expectations, primarily driven by higher-than-projected mail order rates for Humana Pharmacy and the benefit of effective drug purchasing and contracting strategies. 1Q 2016 results exclude the impact of the company’s Concentra operations which were sold in June 2015.
Healthcare Services segment revenues:
Healthcare Services segment operating costs:
Healthcare Services segment operating statistics:
Healthcare Services segment pretax results:
Healthcare Services segment pretax income (in millions) 1Q 20161Q 2015Recast
Generally Accepted Accounting Principles (GAAP) $241 $230 Amortization associated with identifiable intangibles 11 15 Adjusted (non-GAAP) $252 $245Detailed press release
Humana’s full earnings press release including the statistical pages has been posted to the company’s Investor Relations site and may be accessed at http://phx.corporate-ir.net/phoenix.zhtml?c=92913&p=irol-IRHome or via a current report on Form 8-K filed by the company with the Securities and Exchange Commission this morning (available at www.sec.gov or on the company’s website).
Footnotes
(a)
1Q 2016
Adjusted consolidated pretax income and Adjusted EPS for 1Q 2016 exclude pretax transaction costs of $34 million, or $0.21 per diluted common share, associated with the pending transaction with Aetna and amortization expense associated with identifiable intangibles of $21 million, or $0.09 per diluted common share. The consolidated operating cost ratio has also been adjusted to exclude the impact of the $34 million in costs associated with the pending transaction with Aetna. Segment pretax results have also been adjusted to reflect each segment’s respective amount of amortization expense associated with identifiable intangibles.1Q 2015
Adjusted EPS for 1Q 2015 excludes approximately $0.35 per diluted common share of tax benefit associated with the recognition of a deferred tax asset in connection with the held-for-sale classification resulting from the company’s announcement in March 2015 of an agreement to sell its wholly-owned subsidiary, Concentra, Inc. Adjusted consolidated pretax income and Adjusted EPS for 1Q 2015 also exclude amortization expense associated with identifiable intangibles of $26 million, or $0.11 per diluted common share. Segment pretax results have also been adjusted to reflect each segment’s respective amount of identifiable intangible amortization expense.FY16
Beginning in the first quarter of 2016, the company is including an adjustment to add back amortization expense related to identifiable intangibles to align with reporting methods used across the managed care sector. For FY16, this adjustment is estimated to approximate $0.32 per diluted common share.FY15
Adjusted EPS for FY2015 excludes the PDR of $0.74 per diluted common share related to the company’s 2016 ACA-compliant individual commercial medical offerings, pretax transaction costs of $0.14 per diluted common share associated with the pending transaction with Aetna, a gain of $1.57 per diluted common share associated with the completion of the company’s sale of its wholly-owned subsidiary, Concentra, on June 1, 2015, and amortization expense of $0.39 per diluted common share. The company has included these financial measures (which are not in accordance with Generally Accepted Accounting Principles (GAAP)) in its summary of financial results within this earnings release as management believes that these measures, when presented in conjunction with the comparable GAAP measures, are useful to both management and its investors in analyzing the company’s ongoing business and operating performance. The excluded items described herein are not a recurring part of the company’s operating plan. Consequently, management uses these non-GAAP financial measures as indicators of business performance, as well as for operational planning and decision making purposes. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.(b)
Under health care reform, premium stabilization programs, commonly referred to as the 3Rs, became effective January 1, 2014. These programs include a permanent risk adjustment program, a transitional reinsurance program, and a temporary risk corridors program designed to more evenly spread the financial risk borne by issuers and to mitigate the risk that issuers would have mispriced products. In each case, operation of the program is subject to appropriation or other federal administrative action.
(c)
On October 1, 2015, Humana and other industry participants received notification from CMS that 12.6 percent of risk corridor receivables for the 2014 coverage year would be paid on an interim basis given expected risk corridor collections for the 2014 coverage year. The risk corridor program is a three-year program and guidance from HHS provides that risk corridor collections over the life of the three-year program will first be applied to any shortfalls from previous benefit years before application to current year obligations. Subsequent to the October 1, 2015 notification from CMS, HHS reiterated its recognition that the ACA requires the Secretary of HHS to make full payments to issuers, and that amounts unpaid following the 12.6 percent payment will be recorded as obligations of the United States Government for which full payment is required. In the event of a shortfall for the 2016 program year, HHS has asserted it will explore other sources of funding for risk corridors payments, subject to the availability of appropriations, including working with Congress on the necessary funding for outstanding risk corridor payments.
(d)
The company provides a full range of insured specialty products including dental, vision, other supplemental health, financial protection, and voluntary insurance benefits. Members included in these products may not be unique to each product since members have the ability to enroll in multiple products. Other supplemental benefits include life, disability, and fixed benefit products including cancer and critical illness policies.
Cautionary Statement
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, Securities and Exchange Commission (SEC) filings, and in oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “believes,” “anticipates,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which includes but is not limited to the following:
In making forward-looking statements, Humana is not undertaking to address or update them in future filings or communications regarding its business or results. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed herein may or may not occur. There also may be other risks that the company is unable to predict at this time. Any of these risks and uncertainties may cause actual results to differ materially from the results discussed in the forward-looking statements.
Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance:
About Humana
Humana Inc., headquartered in Louisville, Ky., is a leading health and well-being company focused on making it easy for people to achieve their best health with clinical excellence through coordinated care. The company’s strategy integrates care delivery, the member experience, and clinical and consumer insights to encourage engagement, behavior change, proactive clinical outreach and wellness for the millions of people we serve across the country.
More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at www.humana.com, including copies of:
Humana Inc. – Earnings Guidance Points as of May 4, 2016
In accordance with GenerallyAccepted AccountingPrinciples (GAAP) unlessotherwise noted
Projections for thequarter endingJune 30, 2016
Projections for the yearendingDecember 31, 2016
CommentsDiluted earnings per common share(EPS)
GAAP: At least $2.06Adjustments: At least $0.09Adjusted: At least $2.15(New guidance point)
GAAP: At least $8.32Adjustments: At least $0.53Adjusted: At least $8.85(No change to Adjusted EPS)
As previously disclosed, Adjusted EPS for 2Q
2016 through 4Q 2016 are expected to
generally mirror the percentage
distribution of Adjusted EPS among the
last three quarters of 2015.
Projected adjustments to GAAP EPS include
(1) transaction and integration costs
associated with the pending Aetna
transaction and (2) amortization of
identifiable intangibles. See also footnote
(a) within this earnings press release
which discusses the use of non-GAAP
financial measures.
Transaction and integration costs beyond
those incurred in 1Q 2016 are to be
determined.
Consolidated revenuesAt least $53.5 billion(No change from prior guidance)
Revenues include expected investment
income
Effective tax rate49% to 51%(No change from prior guidance)
Reflects the non-deductibility of the health
insurance industry fee.
Parent company cash and short-term
investments at year end
$1.2 billion to $1.5 billion(No change from prior guidance)
Assumes no outstanding commercial paper
balances
Change in ending medical
membership from prior year end
Projections for the year ending December 31, 2016(No changes from prior guidance)
Medicare stand-alone PDP excludes
membership associated with the Limited
Income Newly Eligible Transition program.
Segment level resultsProjections for the year ending December 31, 2016 (No changes from prior guidance)
View source version on businesswire.com: http://www.businesswire.com/news/home/20160504005458/en/
Humana Inc.Investor Relations:Regina Nethery, 502-580-3644Rnethery@humana.comorCorporate CommunicationsTom Noland, 502-580-3674Tnoland@humana.com
1 Year Humana Chart |
1 Month Humana Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions