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Molina Healthcare Reports Fourth Quarter and Year-End 2021 Financial Results

Feb 09, 2022

Introduces Full Year 2022 Earnings Guidance

LONG BEACH, Calif.--(BUSINESS WIRE)--Feb. 9, 2022-- Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today reported fourth quarter 2021 GAAP earnings per diluted share of $1.74 and adjusted earnings per diluted share of $2.88. The Company also reported full year 2021 GAAP earnings per diluted share of $11.25 and adjusted earnings per diluted share of $13.54. Financial results are summarized below:

 

 

Quarter ended

  

Year ended

 

December 31,

         

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

       

 

 

 

(In millions, except per-share results)

Premium Revenue

$7,166

 

$4,855

 

$26,855

 

$18,299

Total Revenue

$7,409

 

$5,235

 

$27,771

 

$19,423

 

 

 

 

 

 

 

 

GAAP:

 

 

 

 

 

 

 

Net Income

$103

 

$34

 

$659

 

$673

EPS – Diluted

$1.74

 

$0.56

 

$11.25

 

$11.23

Medical Care Ratio (MCR)

88.8%

 

90.8%

 

88.3%

 

86.5%

G&A Ratio

7.8%

 

8.6%

 

7.4%

 

7.6%

After-tax Margin

1.4%

 

0.6%

 

2.4%

 

3.5%

 

 

 

 

 

 

 

 

Adjusted:

 

 

 

 

 

 

 

Net Income (loss)

$170

 

($30)

 

$793

 

$640

EPS – Diluted

$2.88

 

($0.51)

 

$13.54

 

$10.67

G&A Ratio

7.4%

 

8.6%

 

7.2%

 

7.6%

After-tax Margin

2.3%

 

(0.6%)

 

2.9%

 

3.3%

See the Reconciliation of Unaudited Non-GAAP Financial Measures at the end of this release.

Full Year Highlights

  • As of December 31, 2021, the Company served approximately 5.2 million members, an increase of 1.2 million members or 29% year over year.
  • Premium revenue was approximately $26.9 billion for the full year 2021, an increase of 47% year over year.
  • GAAP earnings were $11.25 per diluted share.
  • Adjusted earnings were $13.54 per diluted share.
  • The net effect of COVID decreased net income by approximately $3.50 per diluted share in the full year 2021.
  • The Company issued its full year 2022 earnings guidance with premium revenue of approximately $28.5 billion and 26% adjusted EPS growth to no less than $17.00 per diluted share.

“We are very pleased with the quarter and our full year results,” said Joseph Zubretsky, President and CEO. “Our proven momentum enables us to continue building this valuable and exemplary health care franchise. We are proud to serve our members in this challenging time while sustaining profitable growth.”

Texas Acquisition

On January 3, 2022, the Company announced that it closed its acquisition of Cigna Corporation’s Texas Medicaid contracts on January 1, 2022.

Premium Revenue

Premium revenue was approximately $26.9 billion for the full year 2021, an increase of 47% compared to the full year 2020. The higher premium revenue reflects increased organic membership in all lines of business and the impact of acquisitions.

Net Income

Net income for the year ended December 31, 2021, was $11.25 per diluted share, compared to $11.23 per diluted share in the year ended December 31, 2020. Adjusted net income for the year ended December 31, 2021, was $13.54 per diluted share, compared to $10.67 per diluted share in the year ended December 31, 2020. The net effect of COVID decreased full year 2021 GAAP and adjusted EPS by $3.50 per diluted share, compared to $2.30 per diluted share a year earlier.

Medical Care Ratio

The consolidated MCR for the year ended December 31, 2021, was 88.3%, compared to 86.5% for 2020. The net effect of COVID increased the consolidated MCR by approximately 90 basis points and impacted all three lines of business. In the prior year, the net effect of COVID increased the consolidated MCR by approximately 50 basis points.

  • The Medicaid MCR increased to 88.7% in 2021 compared to 87.4% in 2020 mainly due to portfolio mix, but remained squarely in line with the Company’s long-term target.
  • The Medicare MCR increased to 87.2% in 2021 compared to 86.0% in 2020, driven primarily by the net effect of COVID and also in line with the Company’s long-term target.
  • The Marketplace MCR increased to 86.9% in 2021 compared to 78.7% in 2020, primarily due to the higher net effect of COVID and non-COVID utilization by Special Enrollment Period members.

General and Administrative Expense Ratio

The G&A ratio for the full year 2021 was 7.4%, compared to 7.6% for the full year 2020. The adjusted G&A ratio was 7.2% for the full year 2021, compared to 7.6% for the full year 2020 reflecting the benefits of scale produced by the Company’s growth and continued disciplined cost management while making the appropriate investments to fuel growth.

Balance Sheet

Cash and investments at the parent company amounted to $348 million as of December 31, 2021, compared to $644 million as of December 31, 2020. The decrease was due to acquisitions and share repurchases partially offset by dividends received from regulated health plan subsidiaries. In November 2021, the Company closed on its private offering of $750 million principal amount of 3.875% senior notes due May 15, 2032. The Company used the proceeds to redeem the entire $700 million outstanding principal amount of its 5.375% senior notes due 2022.

Cash Flow

Operating cash flow for the year ended December 31, 2021, amounted to $2.1 billion and was higher compared to the year ended December 31, 2020, primarily due to growth in operations and the net impact of timing differences in government receivables and payables.

2022 Guidance

The Company expects its full year 2022 total revenue to be approximately $29.5 billion, an increase of approximately 6% from the full year 2021.

Premium revenue for the full year 2022 is expected to be approximately $28.5 billion, an increase of approximately 6% from the full year 2021.

The Company expects its full year 2022 adjusted earnings per share to be no less than $17.00 per share, or 26% growth over the prior year, with key metrics in line with the Company’s long-term targets.

Guidance reflects:

  • Lower net effect of COVID;
  • Continued strong performance in Medicare and Medicaid;
  • The restoration of mid-single digit pretax margin in our Marketplace business; and
  • The impact of regulatory headwinds created by the mid-year resumption of redeterminations and the carveout of pharmacy benefits in our California and Ohio contracts.

See the Reconciliation of Unaudited Non-GAAP Financial Measures at the end of this release.

Full Year 2022 Guidance (1)

Premium Revenue

$28.5B

Total Revenue

$29.5B

GAAP Net Income

$919M

Adjusted Net Income (2)

$993M

GAAP EPS – Diluted

>$15.73

Adjusted EPS – Diluted (2)

>$17.00

Diluted weighted average shares

58.4M

 

 

Year End Total Membership

4.5M

Medicaid

4.1M

Medicare

150K

Marketplace

250K

 

 

MCR

88.0%

GAAP G&A Ratio

6.9%

Adjusted G&A Ratio

6.8%

Effective Tax Rate

25.4%

GAAP After-tax Margin

3.1%

Adjusted After-tax Margin

3.4%

______________

 

(1) All amounts are rounded and approximations.

(2) Reconciliations of non-GAAP financial measures at the end of this release.

Conference Call

Management is hosting a conference call and webcast to discuss Molina Healthcare’s fourth quarter and year-end 2021 results at 8:00 a.m. Eastern Time on Thursday, February 10, 2022. The number to call for the interactive teleconference is (877) 883-0383 and the confirmation number is 8807414. A telephonic replay of the conference call will be available through Thursday, February 24, 2022, by dialing (877) 344-7529 and entering confirmation number 9770251. A live audio broadcast of this conference call will be available on Molina Healthcare’s website, 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. Through its locally operated health plans, Molina Healthcare served approximately 5.2 million members as of December 31, 2021. 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 regarding its 2022 guidance, as well as its plans and expectations regarding future developments. 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, 2020, which is on file with the SEC, and also in its Quarterly Report on Form 10-Q for the periods ended March 31, 2021, June 30, 2021, and September 30, 2021, which are on file with the SEC. Additional information will also be set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which the Company expects to file on or about February 14, 2022.

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 February 9, 2022, 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

 

Year Ended

 

December 31,

 

December 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

(In millions, except per-share amounts)

Revenue:

 

 

 

 

 

 

 

Premium revenue

$

7,166

 

 

$

4,855

 

 

$

26,855

 

 

$

18,299

 

Premium tax revenue

 

211

 

 

 

172

 

 

 

787

 

 

 

649

 

Health insurer fees reimbursed

 

 

 

 

65

 

 

 

 

 

 

271

 

Marketplace risk corridor judgment

 

 

 

 

128

 

 

 

 

 

 

128

 

Investment income

 

13

 

 

 

11

 

 

 

52

 

 

 

59

 

Other revenue

 

19

 

 

 

4

 

 

 

77

 

 

 

17

 

Total revenue

 

7,409

 

 

 

5,235

 

 

 

27,771

 

 

 

19,423

 

Operating expenses:

 

 

 

 

 

 

 

Medical care costs

 

6,362

 

 

 

4,408

 

 

 

23,704

 

 

 

15,820

 

General and administrative expenses

 

579

 

 

 

450

 

 

 

2,068

 

 

 

1,480

 

Premium tax expenses

 

211

 

 

 

172

 

 

 

787

 

 

 

649

 

Health insurer fees

 

 

 

 

68

 

 

 

 

 

 

277

 

Depreciation and amortization

 

35

 

 

 

24

 

 

 

131

 

 

 

88

 

Other

 

31

 

 

 

22

 

 

 

61

 

 

 

31

 

Total operating expenses

 

7,218

 

 

 

5,144

 

 

 

26,751

 

 

 

18,345

 

Operating income

 

191

 

 

 

91

 

 

 

1,020

 

 

 

1,078

 

Other expenses, net:

 

 

 

 

 

 

 

Interest expense

 

30

 

 

 

30

 

 

 

120

 

 

 

102

 

Other expense, net

 

25

 

 

 

10

 

 

 

25

 

 

 

15

 

Total other expenses, net

 

55

 

 

 

40

 

 

 

145

 

 

 

117

 

Income before income tax expense

 

136

 

 

 

51

 

 

 

875

 

 

 

961

 

Income tax expense

 

33

 

 

 

17

 

 

 

216

 

 

 

288

 

Net income

$

103

 

 

$

34

 

 

$

659

 

 

$

673

 

 

 

 

 

 

 

 

 

Net income per share – Diluted

$

1.74

 

 

$

0.56

 

 

$

11.25

 

 

$

11.23

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

58.7

 

 

 

59.4

 

 

 

58.6

 

 

 

59.9

 

 

 

 

 

 

 

 

 

Operating Statistics:

 

 

 

 

 

 

 

Medical care ratio

 

88.8

%

 

 

90.8

%

 

 

88.3

%

 

 

86.5

%

G&A ratio

 

7.8

%

 

 

8.6

%

 

 

7.4

%

 

 

7.6

%

Premium tax ratio

 

2.9

%

 

 

3.4

%

 

 

2.8

%

 

 

3.4

%

Effective income tax rate

 

24.2

%

 

 

33.8

%

 

 

24.7

%

 

 

30.0

%

After-tax margin

 

1.4

%

 

 

0.6

%

 

 

2.4

%

 

 

3.5

%

 

 

 

 

 

 

 

 

MOLINA HEALTHCARE, INC.

CONSOLIDATED BALANCE SHEETS

 

 

December 31,

 

 

2021

 

 

 

2020

 

Unaudited

 

 

 

(Dollars in millions,

except per-share amounts)

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

4,438

 

 

$

4,154

Investments

 

3,202

 

 

 

1,875

Receivables

 

2,177

 

 

 

1,672

Prepaid expenses and other current assets

 

247

 

 

 

175

Total current assets

 

10,064

 

 

 

7,876

Property, equipment, and capitalized software, net

 

396

 

 

 

391

Goodwill and intangible assets, net

 

1,252

 

 

 

941

Restricted investments

 

212

 

 

 

136

Deferred income taxes

 

106

 

 

 

69

Other assets

 

179

 

 

 

119

Total assets

$

12,209

 

 

$

9,532

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Medical claims and benefits payable

$

3,363

 

 

$

2,696

Amounts due government agencies

 

2,472

 

 

 

1,253

Accounts payable, accrued liabilities and other

 

842

 

 

 

641

Deferred revenue

 

370

 

 

 

375

Total current liabilities

 

7,047

 

 

 

4,965

Long-term debt

 

2,173

 

 

 

2,127

Finance lease liabilities

 

219

 

 

 

225

Other long-term liabilities

 

140

 

 

 

119

Total liabilities

 

9,579

 

 

 

7,436

Stockholders’ equity:

 

 

 

Common stock, $0.001 par value, 150 million shares authorized; outstanding: 58 million shares at December 31, 2021, and 59 million shares at December 31, 2020

 

 

 

 

Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding

 

 

 

 

Additional paid-in capital

 

236

 

 

 

199

Accumulated other comprehensive (loss) income

 

(5

)

 

 

37

Retained earnings

 

2,399

 

 

 

1,860

Total stockholders’ equity

 

2,630

 

 

 

2,096

Total liabilities and stockholders’ equity

$

12,209

 

 

$

9,532

 

 

 

 

MOLINA HEALTHCARE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Year Ended

 

December 31,

 

 

2021

 

 

 

2020

 

 

 

 

 

 

(In millions)

Operating activities:

 

 

 

Net income

$

659

 

 

$

673

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

131

 

 

 

88

 

Deferred income taxes

 

(24

)

 

 

(19

)

Share-based compensation

 

72

 

 

 

57

 

Loss on debt repayment

 

25

 

 

 

15

 

Other, net

 

33

 

 

 

12

 

Changes in operating assets and liabilities:

 

 

 

Receivables

 

(415

)

 

 

(100

)

Prepaid expenses and other current assets

 

(19

)

 

 

(16

)

Medical claims and benefits payable

 

471

 

 

 

544

 

Amounts due government agencies

 

1,046

 

 

 

446

 

Accounts payable, accrued liabilities and other

 

138

 

 

 

86

 

Deferred revenue

 

(5

)

 

 

126

 

Income taxes

 

7

 

 

 

(14

)

Net cash provided by operating activities

 

2,119

 

 

 

1,898

 

Investing activities:

 

 

 

Purchases of investments

 

(2,713

)

 

 

(670

)

Proceeds from sales and maturities of investments

 

1,329

 

 

 

1,097

 

Net cash paid in business combinations

 

(129

)

 

 

(755

)

Purchases of property, equipment, and capitalized software

 

(77

)

 

 

(74

)

Other, net

 

(63

)

 

 

2

 

Net cash used in investing activities

 

(1,653

)

 

 

(400

)

Financing activities:

 

 

 

Proceeds from senior notes offering, net of issuance costs

 

740

 

 

 

1,429

 

Repayment of senior notes

 

(723

)

 

 

(338

)

Common stock purchases

 

(128

)

 

 

(606

)

Common stock withheld to settle employee tax obligations

 

(53

)

 

 

(8

)

Contingent consideration liabilities settled

 

(20

)

 

 

 

Repayment of term loan facility

 

 

 

 

(600

)

Proceeds from borrowings under term loan facility

 

 

 

 

380

 

Cash paid for partial termination of warrants

 

 

 

 

(30

)

Cash paid for partial settlement of conversion option

 

 

 

 

(27

)

Cash received for partial settlement of call option

 

 

 

 

27

 

Repayment of principal amount of convertible senior notes

 

 

 

 

(12

)

Other, net

 

1

 

 

 

2

 

Net cash (used in) provided by financing activities

 

(183

)

 

 

217

 

Net increase in cash, cash equivalents, and restricted cash and cash equivalents

 

283

 

 

 

1,715

 

Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period

 

4,223

 

 

 

2,508

 

Cash, cash equivalents, and restricted cash and cash equivalents at end of period

$

4,506

 

 

$

4,223

 

 

 

 

 

MOLINA HEALTHCARE, INC.

UNAUDITED SEGMENT DATA

(Dollars in millions)

 

 

 

December 31,

 

 

2021

 

2020

Ending Membership by Segment:

 

 

 

Medicaid

4,329,000

 

3,599,000

Medicare

142,000

 

115,000

Marketplace

728,000

 

318,000

Total (1)

5,199,000

 

4,032,000

 

 

 

 

 

 

 

 

 

 

(1) Approximately 200,000 members, from the Magellan Complete Care acquisition that closed on December 31, 2020, are not included in the totals as of December 31, 2020.

 

Three Months Ended September 30,

 

2021

 

2020

 

Premium

Revenue

 

Medical

Margin

 

MCR (1)

 

Premium

Revenue

 

Medical

Margin

 

MCR (1)

 

 

 

 

 

 

Medicaid

$

5,146

 

$

532

 

89.6

%

 

$

3,754

 

$

509

 

86.4

%

Medicare

 

875

 

 

151

 

82.8

 

 

 

632

 

 

91

 

85.6

 

Marketplace

 

779

 

 

68

 

91.3

 

 

 

382

 

 

70

 

81.6

 

Consolidated

$

6,800

 

$

751

 

88.9

%

 

$

4,768

 

$

670

 

85.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

2021

 

2020

 

Premium

Revenue

 

Medical

Margin

 

MCR (1)

 

Premium

Revenue

 

Medical

Margin

 

MCR (1)

 

 

 

 

 

 

Medicaid

$

5,441

 

$

635

 

88.3

%

 

$

3,850

 

$

377

 

90.2

%

Medicare

 

873

 

 

101

 

88.3

 

 

 

616

 

 

18

 

97.1

 

Marketplace

 

852

 

 

68

 

92.1

 

 

 

389

 

 

52

 

86.6

 

Consolidated

$

7,166

 

$

804

 

88.8

%

 

$

4,855

 

$

447

 

90.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2021

 

2020

 

Premium

Revenue

 

Medical

Margin

 

MCR (1)

 

Premium

Revenue

 

Medical

Margin

 

MCR (1)

 

 

 

 

 

 

Medicaid

$

20,461

 

$

2,322

 

88.7

%

 

$

14,265

 

$

1,804

 

87.4

%

Medicare

 

3,361

 

 

430

 

87.2

 

 

 

2,512

 

 

351

 

86.0

 

Marketplace

 

3,033

 

 

399

 

86.9

 

 

 

1,522

 

 

324

 

78.7

 

Consolidated

$

26,855

 

$

3,151

 

88.3

%

 

$

18,299

 

$

2,479

 

86.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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:

 

Year Ended

 

December 31,

 

 

2021

 

 

 

2020

 

 

 

 

 

 

Unaudited

Medical claims and benefits payable, beginning balance

$

2,696

 

 

$

1,854

 

Components of medical care costs related to:

 

 

 

Current year

 

23,943

 

 

 

15,939

 

Prior year

 

(239

)

 

 

(119

)

Total medical care costs

 

23,704

 

 

 

15,820

 

Payments for medical care costs related to:

 

 

 

Current year

 

21,148

 

 

 

13,871

 

Prior year

 

2,080

 

 

 

1,507

 

Total paid

 

23,228

 

 

 

15,378

 

Acquired balances, net of post-acquisition adjustments

 

197

 

 

 

294

 

Change in non-risk and other provider payables

 

(6

)

 

 

106

 

Medical claims and benefits payable, ending balance

$

3,363

 

 

$

2,696

 

 

 

 

 

Days in claims payable, fee for service (1)

 

51

 

 

 

50

 

______________

 

 

 

(1) Claims payable includes primarily claims incurred but not paid, or IBNP. It also includes certain fee-for-service payables reported in medical claims and benefits payable amounting to $150 million and $78 million, as of December 31, 2021, and 2020, respectively.

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 December 31,

 

Year Ended December 31,

2021

 

2020

 

2021

 

2020

 

Amount

 

Per

Diluted

Share

 

Amount

 

Per

Diluted

Share

 

Amount

 

Per

Diluted

Share

 

Amount

 

Per

Diluted

Share

Net income

$

103

 

 

$

1.74

 

 

$

34

 

 

$

0.56

 

 

$

659

 

 

$

11.25

 

 

$

673

 

 

$

11.23

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses (1)

 

49

 

 

 

0.84

 

 

 

18

 

 

 

0.31

 

 

 

93

 

 

 

1.59

 

 

 

22

 

 

 

0.37

 

Amortization of intangible assets

 

14

 

 

 

0.23

 

 

 

4

 

 

 

0.07

 

 

 

49

 

 

 

0.83

 

 

 

16

 

 

 

0.26

 

Loss on debt repayment

 

25

 

 

 

0.43

 

 

 

10

 

 

 

0.18

 

 

 

25

 

 

 

0.43

 

 

 

15

 

 

 

0.26

 

Marketplace risk corridor judgment

 

 

 

 

 

 

 

(128

)

 

 

(2.15

)

 

 

 

 

 

 

 

 

(128

)

 

 

(2.14

)

Other (2)

 

 

 

 

 

 

 

12

 

 

 

0.19

 

 

 

9

 

 

 

0.16

 

 

 

31

 

 

 

0.51

 

Subtotal, adjustments

 

88

 

 

 

1.50

 

 

 

(84

)

 

 

(1.40

)

 

 

176

 

 

 

3.01

 

 

 

(44

)

 

 

(0.74

)

Income tax effect

 

(21

)

 

 

(0.36

)

 

 

20

 

 

 

0.33

 

 

 

(42

)

 

 

(0.72

)

 

 

11

 

 

 

0.18

 

Adjustments, net of tax

 

67

 

 

 

1.14

 

 

 

(64

)

 

 

(1.07

)

 

 

134

 

 

 

2.29

 

 

 

(33

)

 

 

(0.56

)

Adjusted net income (loss)

$

170

 

 

$

2.88

 

 

$

(30

)

 

$

(0.51

)

 

$

793

 

 

$

13.54

 

 

$

640

 

 

$

10.67

 

__________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Beginning in the third quarter of 2020, reflects non-recurring costs associated with acquisitions, including various transaction and integration costs.

(2) The year ended December 31, 2021 includes change in premium deficiency reserves, loss on sale of property, and restructuring costs. The year ended December 31, 2020 includes charitable contribution, premium deficiency reserves, and restructuring costs.

 

MOLINA HEALTHCARE, INC.

RECONCILIATION OF UNAUDITED NON-GAAP FINANCIAL MEASURES (CONTINUED)

2022 GUIDANCE

 

 

Amount

 

Per Diluted Share (2)

Net income

$

919

 

 

$

15.73

 

Adjustments:

 

 

 

Acquisition-related expenses

 

33

 

 

 

0.56

 

Amortization of intangible assets

 

64

 

 

 

1.10

 

Subtotal, adjustments

 

97

 

 

 

1.66

 

Income tax effect (1)

 

(23

)

 

 

(0.39

)

Adjustments, net of tax

 

74

 

 

 

1.27

 

Adjusted net income per diluted share

$

993

 

 

$

17.00

 

__________________

 

 

 

(1) Income tax effect calculated at the statutory tax rate of approximately 23.8%.

(2) Computations assume approximately 58.4 million diluted weighted average shares outstanding.

 

Investor Contact: Joseph Krocheski, Joseph.Krocheski@molinahealthcare.com, 562-951-8382
Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, 562-951-1588

Source: Molina Healthcare, Inc.

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