LONG BEACH, Calif.--(BUSINESS WIRE)--Jan. 22, 2009--Molina Healthcare, Inc. (NYSE:MOH) today announced its guidance for
2009. For its 2009 fiscal year, the Company currently expects the
financial results shown below (all amounts are approximate):
Earnings per diluted share $2.20 to $2.40
Net income $59 to $65 million
Investment income $15 million
Premium revenue $3.6 billion
EBITDA $158 to $167 million
EBITDA as a percentage of premium revenue 4.4% to 4.7%
Medical care costs as a percentage of premium revenue 85.5%
Core G&A (administrative expenses excluding premium
taxes) 7.5%
as a percentage of total revenue
Administrative expenses (including premium taxes)
10.5%
as a percentage of total revenue
Depreciation and amortization $43 million
Interest expense 14 million
Total membership 1.44 million
Diluted shares outstanding 27 million
Effective tax rate 41%
The Company's guidance for diluted shares outstanding does not include
any potential dilution from its senior convertible notes.
Molina Healthcare, Inc. is a multi-state managed care organization that
arranges for the delivery of healthcare services to persons eligible for
Medicaid, Medicare, and other government-sponsored programs for
low-income families and individuals. Molina Healthcare's ten licensed
health plan subsidiaries in California, Florida, Michigan, Missouri,
Nevada, New Mexico, Ohio, Texas, Utah, and Washington serve
approximately 1.26 million members. More information about Molina
Healthcare can be obtained at www.molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains numerous
"forward-looking statements" regarding our expected results for 2009.
All of our forward-looking statements are based on current
expectations and assumptions that are subject to numerous known and
unknown risks, uncertainties, and other factors that could cause our
actual results to differ materially. Such factors include,
without limitation, risks related to: budgetary pressures on the
federal and state governments and their resulting inability to fully
fund Medicaid, Medicare, or SCHIP or to maintain current membership
eligibility thresholds and criteria; the successful management of our
medical costs and the achievement of our projected medical care ratios
in all our health plans, including the reduction of the medical care
ratio of our Ohio health plan; the success of our efforts to leverage
our administrative costs to address the needs associated with increased
enrollment; risks related to our limited experience operating in Florida
and attendant claims estimation difficulties; growth in our Medicaid and
Medicare enrollment consistent with our expectations; uncertainties
regarding the impact of federal health care reform efforts and the new
presidential administration; rate increases and the maintenance of
existing rate levels that are consistent with our expectations; our
inability to pass on to our contracted providers any rate cuts under our
governmental contracts; the budget and liquidity crisis in California
and the state's inability to make payment under its contracts with our
California health plan; the successful resolution of pending rate
litigation in California; the renewal of the provider premium tax beyond
October 1, 2009; our ability to accurately estimate incurred but not
reported medical costs across all health plans; the successful renewal
and continuation of the government contracts of all of our health plans,
including the re-selection of our Michigan and Missouri health plans in
response to Medicaid RFPs in 2009; in light of the current turmoil and
illiquidity in credit markets, the availability of financing to fund and
capitalize our acquisitions and start-up activities and to meet our
liquidity needs; the illiquidity of our auction rate securities; the
successful and cost-effective integration of our acquisitions; earnings
seasonality; interest rates on invested balances that are lower than
expected; high profile qui tam matters and negative publicity regarding
Medicaid managed care and Medicare Advantage; changes in funding under
our contracts as a result of regulatory and programmatic adjustments and
reforms; approval by state regulators of dividends and distributions by
our subsidiaries; unexpected changes in member utilization patterns,
healthcare practices, or healthcare technologies; high dollar claims
related to catastrophic illness; changes in federal or state laws or
regulations or in their interpretation; the favorable resolution of
litigation or arbitration matters; and other risks and uncertainties as
detailed in our reports and filings with the Securities and Exchange
Commission and available on its website at www.sec.gov.
All forward-looking statements in this release represent our judgment
as of January 22, 2009. We disclaim any obligation to update any
forward-looking statement to conform the statement to actual results or
changes in our expectations.
Note regarding EBITDA Measures: The Company calculates EBITDA
by adding back depreciation and amortization expense to operating income.
EBITDA is not prepared in conformity with GAAP since it excludes
depreciation and amortization expense, interest expense, and the
provision for income taxes. This non-GAAP financial measure
should not be considered as an alternative to net income, operating
income, operating margin, or cash provided by operating activities. Management
uses EBITDA as a supplemental metric in evaluating the Company's
financial performance, in evaluating financing and business development
decisions, and in forecasting and analyzing future periods. For
these reasons, management believes that EBITDA is a useful supplemental
measure to investors in evaluating the Company's performance and the
performance of other companies in our industry.
CONTACT: Molina Healthcare, Inc.
Juan Jose Orellana, Investor Relations, 562-435-3666, ext. 111143
Source: Molina Healthcare, Inc.
