Reaffirms Full Year 2024 Earnings Guidance
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241023296710/en/
Investor Contact: Jeffrey Geyer, Jeffrey.Geyer@molinahealthcare.com, 305-317-3012
Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com,
562-951-1588
Molina Healthcare (NYSE:MOH)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Molina Healthcare (NYSE:MOH)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
