Announces Retirement of Robert A. Waegelein,
President & CFO
Company Website:
http://www.universalamerican.com
WHITE PLAINS, N.Y. -- (Business Wire)
Universal American Corp. (NYSE:UAM) today announced financial results
for the quarter ended March 31, 2015.
Results of First Quarter 2015
Universal American’s reported net income for the first quarter of 2015
was $2.2 million, or $0.03 per share. Adjusted net income for the first
quarter of 2015 was $3.6 million, or $0.04per share, which
excludes the following after-tax items:
-
$5.3 million, or $0.06 per share, of tax benefits;
-
$1.2 million, or $0.01 per share, of non-recurring expenses primarily
related to legal and settlement costs; and
-
$5.5 million, or $0.06 per share, of expenses associated with our
investment in our Accountable Care Organization (ACO) business.
Total revenues for the first quarter of 2015 were approximately $445
million.
Management Comments
Richard A. Barasch, Chairman and CEO, commented, “Entering 2015, we
reset our Medicare Advantage business to concentrate on those regions
where we have a meaningful market position and can positively impact the
quality and cost of healthcare. Approximately 86% of our members are in
plans with 4 Stars and we remain committed to enhancing the quality of
our plans.
“The most noteworthy achievement in our Medicare Advantage results is
the reduction in our administrative expense ratio to 9.7% in the first
quarter of 2015. Given the seasonality of expenses, we expect the full
year expense ratio to be approximately 10.5%, consistent with the target
we set going into 2015.
“We continued to expand our market leadership in the growing
Houston/Beaumont region. Our membership increased over 10% for the third
straight year, largely as a result of the continued success of our
partnerships with primary care physicians. We have a successful 15 year
history of working closely with our physician partners to improve
quality and reduce cost for Medicare beneficiaries.
“In the Northeast, especially central New York, we are in the process of
converting a fee-for-service market into a more value-based system by
introducing pay for performance to primary care physicians. We had a
strong 2015 Annual Election Period, with 26% growth in membership, and
combined with our Medicare Shared Savings ACO and our Total Care
Medicaid plan, we are the largest sponsor of government programs in
Central New York. The first quarter MBR results are largely a function
of the anticipated uncertainty associated with absorbing substantial new
membership and we project the ultimate MBR to be lower as we get a
clearer picture of the revenue and claims behavior of this new
membership.
“We are also optimistic about the Medicare Shared Savings ACO program,
both under the existing rules and even more so if the ACO rule-making
process removes certain weaknesses and offers ACOs more options to
expand their risk taking. Our internal projections, based on CMS data,
indicate that we should expect to receive shared savings revenue for the
2014 plan year in excess of the 2012-2013 plan years when the results
are finally determined in the third quarter.”
Medicare Advantage
Our current Medicare Advantage markets include our members in Texas,
Upstate New York and Maine.
| |
|
| |
| |
| | | | March 31, | | December 31, |
| Membership (in thousands) | | | 2015 | | 2014 |
|
Texas HMOs
| | |
66.9
| |
61.8
|
|
Upstate New York/Maine
| | |
37.9
| |
29.7
|
| Core Markets | | | 104.8 | | 91.5 |
|
Non-Core Network*
| | |
-
| |
20.7
|
|
Rural*
| | |
-
| |
1.9
|
| Total Membership | | | 104.8 | | 114.1 |
| | | | | |
|
*The Company did not renew its non-core network and rural markets for
2015.
| | |
| |
|
|
| | Three Months Ended March 31, 2015 |
| Financial Performance ($ in millions) |
|
| |
| | |
| | |
| |
|
Premiums
|
$
|
305.2
|
|
| |
|
Net Investment Income & Other Income
| |
2.6
| | | |
|
Revenue
|
$
|
307.8
| | | |
| | | | | |
|
|
Quality Initiatives
|
$
|
6.1
| | |
2.0%
|
|
Medical Benefits
| |
257.0
| | |
84.2%
|
|
Total Benefits
|
$
|
263.1
| | |
86.2%
|
| | | | | |
|
|
Admin Expenses
|
$
|
29.5
| | |
9.7%
|
|
ACA Fee
| |
6.2
| | | |
| | | | | |
|
|
Pre-Tax Operating Income
|
$
|
9.0
| | | |
| | | | | |
|
| | | Reported | | | Recast** |
|
Texas HMOs Medical Benefit Ratio
| |
82.3%
| | |
83.5%
|
|
Upstate New York/Maine Medical Benefit Ratio
| |
92.9%
| | |
88.9%
|
| | | | | |
|
|
** Recast excludes the impact of prior period items reported in 1Q
2015.
|
| | | | | |
|
The Medicare Advantage segment pre-tax operating income during the three
month period ended March 31, 2015 was $9.0 million.
Our administrative expense ratio improved to 9.7%, compared to 11.1% for
the same period in 2014 primarily as a result of our cost reduction
efforts. Administrative expenses for the first quarter of 2015 decreased
$10.0 million compared to the first quarter of 2014.
For the first quarter of 2015, the reported MBR in our Texas HMOs,
excluding Quality Initiative (QI) expenses was 82.3%. Excluding positive
prior period items, the MBR was 83.5% for the first quarter.
For the first quarter of 2015, the reported MBR in our Northeast
markets, excluding Quality Initiative (QI) expenses, was 92.9%.
Excluding negative prior period items, the MBR was 88.9% for the first
quarter. As noted above, we project that the Northeast MBR will be lower
in the balance of the year.
Management Services Organization (MSO)
|
| | |
| | | Three Months Ended March 31, |
| Financial Performance ($ in millions) | 2015 |
| 2014 |
| | | | | | |
|
|
Revenue
|
$
|
-
| |
$
|
-
|
| | | | | |
|
|
Pre-tax Operating Loss
|
$
|
(11.7)
| |
$
|
(13.1)
|
| | | | | |
|
The MSO segment includes our ACO business, which collaborates with
physicians and other healthcare professionals to operate ACOs under the
Medicare Shared Savings Program (MSSP). We have 25 ACOs with
approximately 292,000 beneficiaries as compared to 34 ACOs with 360,000
beneficiaries in the first quarter of 2014. During 2014, the Company
exited certain ACOs where it determined that the MSSP could not work and
the Company could not positively impact the quality and cost of
healthcare. The operating losses in our MSO segment for the quarter
ended March 31, 2015 decreased $1.4 million as a result of fewer ACOs
than the same period in 2014. The Company expects to receive the final
results from CMS of the 2014 performance year in the third quarter.
|
| | |
| Medicaid |
| | |
|
| | | Three Months Ended March 31, |
| Financial Performance ($ in millions) | 2015 |
| 2014 |
| | | | | | |
|
|
Revenue
|
$
|
46.4
| |
$
|
39.2
|
| | | | | |
|
|
Pre-Tax Operating Income
|
$
|
0.1
| |
$
|
0.9
|
| | | | | |
|
The Medicaid segment includes the Total Care health plan in Upstate New
York with approximately 40,000 members. The pre-tax operating income for
the quarter ended March 31, 2015 decreased $0.8 million from the same
period in 2014 as a result of higher premiums from more members offset
by a higher medical benefits ratio due to increased utilization. The
medical benefits ratio was 89.1% for the three months ended March 31,
2015 compared with 88.5% for the three months ended March 31, 2014.
Traditional Insurance
| | Three Months Ended March 31, |
Financial Performance ($ in millions) | 2015 |
| 2014 |
| | | | | |
|
Revenue
|
$
|
49.3
| |
$
|
54.0
|
| | | | |
|
Pre-Tax Operating Income (Loss)
|
$
|
1.3
| |
$
|
(0.1)
|
Revenue in our Traditional Insurance segment declined in the three-month
period ended March 31, 2015 due to the continued run-off of our legacy
insurance products, which we stopped marketing and selling after June 1,
2012. Net income increased in the three-month period ended March 31,
2015 due to decreased operating expenses, primarily consulting costs
related to the transition and outsourcing of certain functions.
|
| | |
| Corporate & Other |
| | |
|
| | | Three Months Ended March 31, |
| Financial Performance ($ in millions) | 2015 |
| 2014 |
| | | | | | |
|
|
Revenue
|
$
|
42.6
| |
$
|
59.4
|
| | | | | |
|
|
Pre-Tax Operating (Loss)
|
$
|
(5.7)
| |
$
|
(15.6)
|
| | | | | |
|
Corporate & Other includes the results of APS Healthcare and the
operations of our parent holding company, including debt service. The
decrease in revenue for the quarter ended March 31, 2015 was due to the
sale of APS Puerto Rico which closed on February 4, 2015.
| | Three Months Ended March 31, |
Pre-Tax Income (Loss) ($ in millions) | 2015 |
| 2014 |
Corporate Expenses
| |
(5.1)
| | |
(11.0)
|
Interest expense
| |
(1.8)
| | |
(1.7)
|
APS Healthcare - Domestic
| |
2.7
| | |
0.3
|
Non-Recurring costs
| |
(1.5)
| | |
(3.2)
|
Pre-Tax Operating (Loss)
|
$
|
(5.7)
| |
$
|
(15.6)
|
Corporate expenses for the quarter ended March 31, 2015 were lower than
those in the comparable 2014 period due to corporate expense reduction
initiatives and lower costs for legal and settlement costs.
APS Healthcare recorded higher pre-tax profits for the quarter ended
March 31, 2015 compared to the comparable 2014 period due to shedding
unprofitable contracts and expense reduction initiatives. On May 1,
2015, we consummated the sale of our remaining APS Healthcare operating
subsidiaries to KEPRO, Inc., a company that provides quality improvement
and care management services to both government clients and the private
sector.
As previously disclosed, on February 4, 2015 we completed the sale of
our APS Healthcare Puerto Rico subsidiaries to an affiliate of the Metro
Pavia Health System. The purchase price at closing was $26.5 million and
generated a foreign tax credit carry-forward of $5.4 million that has
been recorded as a deferred tax asset.
Investment Portfolio
As of March 31, 2015, Universal American had $925 million of cash and
invested assets as follows:
-
24% is invested in U.S. Government and agency securities;
-
The average credit quality of the investment portfolio is AA-; and
-
Approximately 1% of the investment portfolio is non-investment grade.
A complete listing of our fixed income investment portfolio as of March
31, 2015 is available for review in the financial supplement located in
the Investors – Financial Reports section of our website, www.UniversalAmerican.com.
Balance Sheet and Liquidity
As of March 31, 2015, Universal American’s Balance Sheet had the
following characteristics:
-
Total cash and investments were $925 million and total assets were
$1.9 billion;
-
Total policyholder liabilities were $1.1 billion and total liabilities
were $1.3 billion;
-
Stockholders’ equity was $622.7 million and book value was $7.33 per
diluted common share;
-
Tangible book value per diluted common share (excluding accumulated
other comprehensive income, goodwill, amortizing intangibles and
deferred acquisition costs) was $5.62;
-
Unregulated cash and investments of $67.2 million;
-
$44.9 million of bank debt; and
-
$40.0 million of mandatorily redeemable preferred stock, reported as a
liability, with an annual dividend rate of 8.5%.
On March 31, 2015, we made a $55 million principal prepayment on our
term loan. This prepayment fulfilled our obligation to use the proceeds
from recent dispositions that were not reinvested and provides
additional restricted payment flexibility under our 2012 Credit Facility.
As of March 31, 2015, the ratio of debt to total capital, excluding the
effect of accumulated other comprehensive income and including Universal
American’s mandatorily redeemable preferred stock as debt was 12.3%.
In April 2015, the Company received a net $66 million extraordinary
dividend from its insurance subsidiary, Pyramid Life, as a result of its
exit from Medicare Advantage markets. As of April 30, 2015, unregulated
cash and investments was $125 million.
Robert A. Waegelein Retirement
The Company also announced today that President & Chief Financial
Officer Robert A. Waegelein will retire on May 31, 2015. Mr. Waegelein
joined the Company in 1990 and has been Chief Financial Officer for his
entire 25 year tenure. The Company announced that Adam Thackery, the
Company’s Senior Vice President, Financial Planning & Analysis since
October 2008, will be promoted to Chief Financial Officer and David
Monroe, the Company’s Senior Vice President, Finance since 2007, will be
promoted to Chief Accounting Officer effective May 31, 2015. Mr.
Waegelein will continue to be available to work with the Company as a
consultant for the next twelve months to ensure a smooth transition.
Mr. Barasch commented, “The entire Universal American family wishes Bob
well on his retirement. For the past 25 years, he has been an
indispensable part of our team as we built our company. Personally, I
will greatly miss Bob’s steady advice and daily support. One of Bob’s
many contributions to our company is that he built a terrific team of
financial executives. I am very confident that Adam and Dave will
continue to manage our finances at Bob’s high standards.”
Conference Call
Universal American will host a conference call at 8:30 a.m. Eastern Time
on Tuesday, May 5, 2015 to discuss financial results and other corporate
developments. Interested parties may participate in the call by dialing
(201) 493-6744. Please call in 10 minutes before the scheduled time and
ask for the Universal American call. This conference call will also be
available live over the Internet and can be accessed at Universal
American’s website at www.UniversalAmerican.com,
and clicking on the “Investors” link in the upper right. To listen to
the live call on the website, please go to the website at least 15
minutes early to download and install any necessary audio software. A
replay of the call will be available on the investor relations section
of the Company’s website for approximately two weeks following the call.
Prior to the conference call, Universal American will make available on
its website a 1st Quarter 2015 Investor Presentation and
supplemental financial data in connection with its quarterly earnings
release. You can access the 1st Quarter 2015 Investor
Presentation and supplemental financial data at www.UniversalAmerican.com
in the “Investors” section under the “Presentations” and “Financial
Reports” sections.
About Universal American Corp.
Universal American (NYSE:UAM), through our family of healthcare
companies, provides health benefits to people covered by Medicare and/or
Medicaid. We are dedicated to working collaboratively with healthcare
professionals, especially primary care physicians, in order to improve
the health and well-being of those we serve and reduce healthcare costs.
For more information on Universal American, please visit our website at www.UniversalAmerican.com.
Forward Looking Statements
This news release and oral statements made from time to time by our
executive officers may contain "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995, known
as the PSLRA. Such statements that are not historical facts are hereby
identified as forward-looking statements and intended to be covered by
the safe harbor provisions of the PSLRA and can be identified by the use
of the words "believe," "expect," "predict," "project," "potential,"
"estimate," "anticipate," "should," "intend," "may," "will," and similar
expressions or variations of such words, or by discussion of future
financial results and events, strategy or risks and uncertainties,
trends and conditions in our business and competitive strengths, all of
which involve risks and uncertainties.
Where, in any forward-looking statement, we or our management expresses
an expectation or belief as to future results or actions, there can be
no assurance that the statement of expectation or belief will result or
be achieved or accomplished. Our actual results may differ materially
from our expectations, plans or projections. We warn you that
forward-looking statements are only predictions and estimates, which are
inherently subject to risks, trends and uncertainties, many of which are
beyond our ability to control or predict with accuracy and some of which
we might not even anticipate. We give no assurance that we will achieve
our expectations and we do not assume responsibility for the accuracy
and completeness of the forward-looking statements. Future events and
actual results, financial and otherwise, may differ materially from the
results discussed in the forward-looking statements as a result of many
factors, including the risk factors described in the risk factor section
of our SEC reports.
A summary of the information set forth in the "Risk Factors" section of
our SEC reports and other risks includes, but is not limited to the
following: the impact of CMS’s final Medicare Advantage reimbursement
rates for calendar year 2016; we are subject to extensive government
regulation and the potential that CMS and/or other regulators could
impose significant fines, penalties or operating restrictions on the
Company, including with respect to False Claims Act matters or RADV
audits; the Affordable Care Act and subsequent rules promulgated by CMS
could have a material adverse effect on our opportunities for growth and
our financial results; we are investing significant capital and
management attention in new business opportunities, including our ACOs,
that may not be successful; we may experience higher than expected
medical loss ratios or lower revenues, especially with our new members
in our Northeast markets, which could materially adversely affect our
results of operations; if we fail to design and price our products
properly and competitively or if the premiums and fees we charge are
insufficient to cover the cost of health care services delivered to our
members, our profitability may be materially adversely affected; changes
in governmental regulation or legislative reform could increase our
costs of doing business and adversely affect our profitability;reductions
in funding for Medicare programs could materially reduce our
profitability; failure to reduce our operating costs could have a
material adverse effect on our financial position, results of operations
and cash flows; we may not be able to maintain or improve our CMS Star
ratings which may cause certain of our plans to receive less bonuses or
rebates than our competitors; changes in governmental regulation or
legislative reform, including the impact of Sequestration, could reduce
our revenues, increase our costs of doing business and adversely affect
our profitability; a substantial portion of our revenues are tied to our
Medicare businesses and regulated by CMS and if our government contracts
are not renewed or are terminated, our business could be substantially
impaired; we no longer sell long-term care insurance and the premiums
that we charge for the long-term care policies that remain in force may
not be adequate to cover the claims expenses that we incur; any failure
by us to manage our operations or to successfully complete or integrate
acquisitions, dispositions and other significant transactions could harm
our financial results, business and prospects; we could be subject to a
cyber-attack or similar network breach that could damage our reputation
and have a material adverse effect. Other unknown or unpredictable
factors could also have material adverse effects on future results,
performance or achievements of Universal American.
All forward-looking statements included in this release are based upon
information available to Universal American as of the date of the
release, and we assume no obligation to update or revise any such
forward-looking statements.
(Tables to follow)
|
| | |
| UNIVERSAL AMERICAN CORP. AND SUBSIDIARIES |
| SELECTED CONSOLIDATED FINANCIAL DATA |
| In millions, except per share amounts |
| (Unaudited) |
| | |
|
| | | Three Months Ended March 31, |
| Consolidated Results | 2015 |
| 2014 |
| | | | | | |
|
| | | | | |
|
|
Net premiums and policyholder fees
|
$
|
412.9
| |
$
|
481.7
|
|
Net investment income
| |
7.4
| | |
8.0
|
|
Other income
| |
24.4
| | |
21.9
|
|
Realized gains
| |
0.1
| | |
1.0
|
|
|
Total revenues
| |
444.8
| | |
512.6
|
| | | | | | |
|
|
Policyholder benefits
| |
354.2
| | |
396.8
|
|
Change in deferred acquisition costs
| |
3.3
| | |
3.0
|
|
Amortization of present value of future profits
| |
1.1
| | |
1.3
|
|
Affordable Care Act Fee
| |
7.1
| | |
5.4
|
|
Commissions and general expenses, net of allowances
| |
78.6
| | |
99.8
|
| |
Total benefits and expenses
| |
444.3
| | |
506.3
|
| | | | | |
|
|
Income before equity in losses of unconsolidated subsidiaries
| |
0.5
| | |
6.3
|
| | | | | | |
|
|
Equity in losses of unconsolidated subsidiaries
| |
(7.4)
| | |
(8.3)
|
|
Loss before income taxes
| |
(6.9)
| | |
(2.0)
|
|
(Benefit from) provision for income taxes (1) | |
(9.1)
| | |
3.1
|
| | | | | | |
|
| Net income (loss) | $ | 2.2 | | $ | (5.1) |
| | | | | | |
|
| Per Share Data (Diluted) | | | | | |
| | Net income (loss) | $ | 0.03 | | $ | (0.06) |
| | | | | | |
|
|
Diluted weighted average shares outstanding
| |
83.4
| | |
87.5
|
| | | | | |
|
|
| | | |
| UNIVERSAL AMERICAN CORP. AND SUBSIDIARIES |
| SELECTED CONSOLIDATED FINANCIAL DATA |
| In millions, except per share amounts |
| (Unaudited) |
| | | |
|
| | | | Three Months Ended March 31, |
| Income (Loss) before income taxes by segment | 2015 |
|
| | 2014 |
|
| | | | | | |
|
|
Medicare Advantage
|
$
|
9.0
| | |
$
|
24.9
| |
|
MSO
| |
(11.7
|
)
| | |
(13.1
|
)
|
|
Total Care
| |
0.1
| | | |
0.9
| |
|
Traditional Insurance
| |
1.3
| | | |
(0.1
|
)
|
|
Corporate & Other
| |
(5.7
|
)
| | |
(15.6
|
)
|
|
Realized gains
| |
0.1
|
| | |
1.0
|
|
| |
Loss before income taxes
|
$
|
(6.9
|
)
| |
$
|
(2.0
|
)
|
| |
| | |
| BALANCE SHEET DATA | | | March 31, 2015 |
|
Total cash and investments
| | |
$ 924.5
| |
|
Total assets
| | |
$ 1,942.7
| |
|
Total policyholder related liabilities
| | |
$ 1,094.8
| |
|
Total reinsurance recoverable (ceded policyholder liabilities)
| | |
$ 629.0
| |
|
Outstanding bank debt
| | |
$ 44.9
| |
|
Mandatorily redeemable preferred shares
| | |
$ 40.0
| |
|
Total stockholders' equity
| | |
$ 622.7
| |
|
Diluted book value per common share
| | |
$ 7.33
| |
|
Diluted common shares outstanding at balance sheet date
| | |
85.0
| |
| | | |
|
| Non-GAAP Financial Measures * | | | |
|
Total stockholders’ equity (excluding AOCI) *
| | |
$ 607.5
| |
|
Diluted book value per common share (excluding AOCI) * (2) | | |
$ 7.15
| |
|
Diluted tangible book value per common share (excluding AOCI) * (3) | | |
$ 5.62
| |
|
Debt to total capital ratio (excluding AOCI) * (4) | | |
12.3
|
%
|
| | | |
|
|
| |
|
| | Three Months Ended March 31, |
| | 2015 |
| | 2014 |
|
Adjusted net income(5) | | |
$
|
3.6
| |
$
|
5.6
|
|
Adjusted net income per share (diluted)
| | |
$
|
0.04
| |
$
|
0.06
|
| | | | | | | |
|
| |
| |
| * | |
Non-GAAP Financial Measures - See supplemental tables on the
following pages of this release for a reconciliation of these items
to financial measures calculated under U.S. generally accepted
accounting principles (GAAP).
|
| (1) | |
The effective tax rate was 131.1% for the first quarter of 2015
compared to -153.2% for the first quarter of 2014. For the quarter
ended March 31, 2015, the tax benefit was driven primarily by $5.4
million in foreign tax credit carryforwards created in connection
with the February 2015 sale of APS Puerto Rico. Excluding the
foreign tax credit carryforwards, the effective tax rate was 52.9%,
which exceeds the statutory rate of 35% as a result of permanent
items, including the non-deductible ACA Fee and non-deductible
interest expense. For the quarter ended March 31, 2014, the tax
effect of permanent items exceeded the tax effect of our loss from
operations, resulting in income tax expense. Permanent items include
the non-deductible ACA fee, non-deductible executive compensation
and non-deductible interest expense. State and foreign income taxes
also contributed to the variance in the effective tax rate.
|
| (2) | |
Diluted book value per common share (excluding AOCI) represents
Total Stockholders’ Equity, excluding accumulated other
comprehensive income (“AOCI”), plus assumed proceeds from the
exercise of vested, in-the-money options, divided by the total
shares outstanding plus the shares assumed issued from the exercise
of vested, in-the-money options.
|
| (3) | |
Tangible book value per common share represents Total Stockholders’
Equity, excluding AOCI and intangible assets plus assumed proceeds
from the exercise of vested, in-the-money options, divided by the
total shares outstanding plus the shares assumed issued from the
exercise of vested, in-the-money options.
|
| (4) | |
The Debt to Total Capital Ratio (excluding AOCI) is calculated as
the ratio of the Mandatorily Redeemable Preferred Shares to the sum
of Stockholders’ Equity (excluding AOCI) plus the Mandatorily
Redeemable Preferred Shares.
|
| (5) | |
Adjusted net income (loss) is calculated as net income (loss)
excluding the following items on after tax basis: ACO costs, net
realized gains and losses, non-recurring tax benefits/expenses and
other non-recurring items.
|
| | |
|
| |
| UNIVERSAL AMERICAN CORP. AND SUBSIDIARIES |
| SUPPLEMENTAL FINANCIAL INFORMATION |
| NON-GAAP FINANCIAL MEASURES |
| In millions, except per share amounts |
| (Unaudited) |
|
|
Universal American uses both GAAP and non-GAAP financial measures to
evaluate the Company’s performance for the periods presented in this
press release. You should not consider non-GAAP measures to be an
alternative to measurements required by GAAP. Because Universal
American’s calculation of these measures may differ from the calculation
of similar measures used by other companies, investors should be careful
when comparing Universal American’s non-GAAP financial measures to those
of other companies. We have not included a reconciliation of projected
earnings per diluted share because projections for some components of
this reconciliation are not possible to forecast at this time. The key
non-GAAP measures presented in our press release, including
reconciliation to GAAP measures, are set forth below.
|
|
| | |
| Adjusted Net Income (Loss) ($ in millions, except per share
amounts) |
| | | |
|
| | | | Three Months Ended March 31, |
| | 2015 |
| | 2014 |
| | | | | | |
|
|
Net income (loss)
|
$
|
2.2
| |
$
|
(5.1)
|
|
ACO results, after-tax
| |
5.5
| | |
8.5
|
|
Net realized gains (losses), after-tax
| |
0.0
| | |
(0.7)
|
|
Non-recurring tax (benefit)
| |
(5.3)
| | |
0.8
|
|
Other non-recurring items, after-tax
| |
1.2
| | |
2.1
|
|
Adjusted net income
|
$
|
3.6
| |
$
|
5.6
|
| | | | | |
|
|
Per share (diluted)
| | | | | |
|
Net Income (loss)
|
$
|
0.03
| |
$
|
(0.06)
|
|
ACO results, after-tax
| |
0.06
| | |
0.10
|
|
Net realized losses (gains), after-tax
| |
0.00
| | |
(0.01)
|
|
Non-recurring tax (benefit) expense
| |
(0.06)
| | |
0.01
|
|
Other non-recurring items, after-tax
| |
0.01
| | |
0.02
|
|
Adjusted net income
|
$
|
0.04
| |
$
|
0.06
|
| | | | | |
|
Universal American uses adjusted net income (loss), calculated as net
income (loss) excluding ACO results after tax, net realized gains
(losses) after-tax, non-recurring tax (benefit) expense and other
non-recurring items after-tax as a basis for evaluating operating
results. Although the excluded items may recur, we believe that the
excluded items do not relate to the performance of Universal American’s
core business operations and that adjusted net income (loss) provides a
more useful comparison of our business performance from period to period.
| |
|
| | |
| | |
| Total Stockholders’ Equity (excluding AOCI) | | | | March 31, 2015 | | | December 31, 2014 |
|
Total stockholders’ equity
| | |
$
|
622.7
| |
$
|
614.5
|
|
Less: Accumulated other comprehensive income
| | | |
(15.2)
| | |
(12.7)
|
|
| | | | | | | | |
| | Total stockholders’ equity (excluding AOCI) | | |
$
|
607.5
| |
$
|
601.8
|
| | | | | | | | |
|
| |
| UNIVERSAL AMERICAN CORP. AND SUBSIDIARIES |
| SUPPLEMENTAL FINANCIAL INFORMATION |
| NON-GAAP FINANCIAL MEASURES |
| In millions, except per share amounts |
| (Unaudited) |
|
|
Universal American uses total stockholders’ equity (excluding AOCI), as
a basis for evaluating growth in equity on both an absolute dollar basis
and on a per share basis, as well as in evaluating the ratio of debt to
total capitalization. We believe that fluctuations in stockholders’
equity that arise from changes in unrealized appreciation or
depreciation on investments, as well as changes in the other components
of accumulated other comprehensive income or loss, do not relate to the
performance of Universal American’s core business operations.
| |
| | |
|
| | |
| Diluted Book Value per Common Share | | | March 31, 2015 | | | | December 31, 2014 |
|
Total stockholders’ equity
| |
$
|
622.7
| | |
$
|
614.5
|
|
Proceeds from assumed exercises of vested options
| | |
-
| | | |
-
|
| | |
$
|
622.7
| | |
$
|
614.5
|
|
Diluted common shares outstanding
| | |
85.0
| | | |
84.2
|
|
| | | | | | | | |
| | Diluted book value per common share | |
$
|
7.33
| | |
$
|
7.30
|
| | | | | | | | |
|
| |
| | |
|
| | |
|
Total stockholders’ equity (excluding AOCI)
| |
$
|
607.5
| | |
$
|
601.8
|
|
Proceeds from assumed exercises of vested options
| | |
-
| | | |
-
|
| | |
$
|
607.5
| | |
$
|
601.8
|
|
Diluted common shares outstanding
| | |
85.0
| | | |
84.2
|
|
| | | | | | | | |
| | Diluted book value per common share (excluding AOCI) | |
$
|
7.15
| | |
$
|
7.15
|
| | | | | | | | |
|
As noted above, Universal American uses total stockholders’ equity
(excluding AOCI), as a basis for evaluating growth in equity on a per
share basis. We believe that fluctuations in stockholders’ equity that
arise from changes in unrealized appreciation or depreciation on
investments, as well as changes in the other components of accumulated
other comprehensive income, do not relate to the performance of
Universal American’s core business operations.
| |
| | |
| | |
| Tangible Book Value per Common Share | | | March 31, 2015 | | | December 31, 2014 |
|
Total stockholders’ equity (excluding AOCI)
| |
$
|
607.5
| |
$
|
601.8
|
|
Less: intangible assets (1) | | |
(130.1)
| | |
(132.9)
|
|
Proceeds from assumed exercises of vested options
| | |
-
| | |
-
|
|
| Tangible Book Value | |
$
|
477.4
| |
$
|
468.9
|
|
Diluted common shares outstanding
| | |
85.0
| | |
84.2
|
| | | | | | | |
|
| | Tangible book value per common share | |
$
|
5.62
| |
$
|
5.57
|
| | | | | | | |
|
Universal American uses tangible book value per common share as a basis
for evaluating the value of the Company’s tangible net assets.
| |
| |
|
(1)
| |
Intangible assets include the following at March 31, 2015 and
December 31, 2014, respectively: goodwill ($73.3 million), deferred
acquisition costs, net of taxes ($48.4 million and $50.6 million)
and amortizing intangible assets, net of taxes ($8.4 million and
$9.1 million).
|
| | |
|
| |
| | |
| | |
| UNIVERSAL AMERICAN CORP. AND SUBSIDIARIES |
| SUPPLEMENTAL FINANCIAL INFORMATION |
| NON-GAAP FINANCIAL MEASURES |
| In millions, except per share amounts |
| (Unaudited) |
| | | | | | |
|
| Debt to Total Capital Ratio | | | March 31, 2015 | | | December 31, 2014 |
|
Outstanding bank debt
| |
$
|
44.9
| |
$
|
103.4
|
|
Mandatorily redeemable preferred shares
| | |
40.0
| | |
40.0
|
|
Total outstanding debt
| |
$
|
84.9
| |
$
|
143.4
|
| | | | | | |
|
|
Total stockholders’ equity
| |
$
|
622.7
| |
$
|
614.5
|
|
Outstanding bank debt
| | |
44.9
| | |
103.4
|
|
Mandatorily redeemable preferred shares
| | |
40.0
| | |
40.0
|
|
Total capital
| |
$
|
707.6
| |
$
|
757.9
|
|
| | | | | | | |
| | Debt to total capital ratio | | |
12.0%
| | |
18.9%
|
Total stockholders’ equity (excluding AOCI)
|
|
$
|
607.5
|
|
$
|
601.8
|
Total outstanding bank debt
| | |
44.9
| | |
103.4
|
Mandatorily redeemable preferred shares
| | |
40.0
| | |
40.0
|
Total capital
| |
$
|
692.4
| |
$
|
745.2
|
| | | | | | | |
| Debt to total capital ratio (excluding AOCI) | | |
12.3%
| | |
19.2%
|
| | | | | | |
|
As noted above, Universal American uses total stockholders’ equity
(excluding AOCI), as a basis for evaluating the ratio of debt to total
capital. We believe that fluctuations in stockholders’ equity that arise
from changes in unrealized appreciation or depreciation on investments,
as well as changes in the other components of accumulated other
comprehensive income, do not relate to the performance of Universal
American’s core business operations.
Contacts:
Universal American Corp.
Robert A. Waegelein, 914-934-8820
President
&
Chief Financial Officer
or
INVESTOR RELATIONS
COUNSEL:
The Equity Group Inc.
Fred Buonocore, 212-836-9607
or
Linda
Latman, 212-836-9609
www.theequitygroup.com
Source: Universal American Corp.
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