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moh20241112_8k.htm
false 0001179929 0001179929 2024-11-13 2024-11-13
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K 
 
Current Report
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 13, 2024
 
MOLINA HEALTHCARE, INC. 
(Exact name of registrant as specified in its charter)
 
Delaware
001-31719
13-4204626
     
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
 
200 Oceangate, Suite 100,
Long Beach,
California
90802
       
(Address of principal executive offices)
(Zip Code)
 
Registrant’s telephone number, including area code: (562) 435-3666 
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.001 Par Value 
MOH
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act.
 ☐
 
 
 
 
Item 7.01. Regulation FD Disclosure.
 
On November 13, 2024, Molina Healthcare, Inc. (the "Company") announced that it intends to privately offer (the “Offering”), subject to market and other conditions, $500 million aggregate principal amount of senior notes due 2033 (the “Notes”). The Notes are to be sold only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain persons outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This Current Report on Form 8-K shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes and shall not constitute an offer, solicitation or sale in any state or jurisdiction where such offer, solicitation or sale is prohibited.
 
Uses and Definitions of Non-GAAP Financial Measures
 
The financial data provided to potential investors in connection with the Offering includes non-GAAP financial measures, including EBITDA and Adjusted EBITDA (collectively, the “Non-GAAP Financial Measures”). The Non-GAAP Financial Measures are supplemental measures of the Company’s performance that are not required by, or presented in accordance with, generally accepted accounting principles in the U.S. (“GAAP”). The Company believes that the Non-GAAP Financial Measures are useful supplemental measures to investors in comparing its performance to the performance of other public companies in the healthcare industry.
 
The Company defines EBITDA as net income adjusted for interest, taxes, depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA adjusted for non-cash stock-based compensation expense, impairment charges, acquisition-related costs and other non-cash or non-recurring charges.
 
EBITDA and Adjusted EBITDA have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of the Company’s results as reported under GAAP. Some of these limitations are that EBITDA and Adjusted EBITDA:
 
•
exclude certain tax payments that may represent a reduction in cash available to the Company;
 
•
do not reflect the Company’s cash expenditures, or future requirements, for capital expenditures or contractual commitments;
 
•
do not reflect changes in, or cash requirements for, the Company’s working capital needs;
 
•
do not reflect the significant interest expense, or the cash requirements, necessary to service interest or principal payments on the Company’s debt;
 
•
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; and
 
•
may be calculated differently than other companies in the Company’s industry, limiting their usefulness as comparative measures.
 
In addition to the foregoing, Adjusted EBITDA adjusts for certain exceptional items that reflect cash payments that were made or received, or will be made or received, in the future.
 
Because of these limitations, the Non-GAAP Financial Measures should not be considered as measures of discretionary cash available to the Company to invest in the growth of the Company’s business. The Company compensates for these limitations by relying primarily on its GAAP results and using the Non-GAAP Financial Measures only on a supplemental basis.
 
 
 
 
The following EBITDA and Adjusted EBITDA information was provided to potential investors in connection with the Offering:
 
   
Year Ended
December 31,
    
Nine Months
Ended September 30,
    
Twelve
Months
Ended
September
30,
  
   
2021
    
2022
    
2023
    
2023
    
2024
    
2024
  
   
(unaudited)
   
(dollars in millions)
  
Net income
   $ 659     $ 792     $ 1,091     $ 875     $ 928     $ 1,144  
Adjustments:
                                                
Depreciation, and amortization of intangible assets and capitalized software
     131       176       171       128       138       181  
Interest expense
     120       110       109       82       84       111  
Income tax expense
     216       271       373       300       315       388  
EBITDA
   $ 1,126     $ 1,349     $ 1,744     $ 1,385     $ 1,465     $ 1,824  
Stock-based compensation
     72       103       115       88       98       125  
Acquisition-related expenses
     93       49       7       4       46       49  
Non-cash or non-recurring charges(1)
     34       -       68       41       16       43  
Impairment charges(2)
     -       208       -       -       -       -  
Adjusted EBITDA
   $ 1,325     $ 1,709     $ 1,934     $ 1,518     $ 1,625     $ 2,041  
 
(1)
The year ended December 31, 2021 includes loss on debt repayment, change in premium deficiency reserves, loss on sale of property, and restructuring costs. The year ended December 31, 2022 includes gain on lease termination and disposal of fixed assets. The year ended December 31, 2023, includes a non-recurring credit loss on 2022 Marketplace risk adjustment receivables due to the insolvency of an issuer in the Texas risk pool, non-recurring litigation costs and one-time termination benefits. The nine months ended September 30, 2023, include a credit loss on 2022 Marketplace risk adjustment receivables due to the insolvency of an issuer in the Texas risk pool. The nine months ended September 30, 2024 includes non-recurring litigation and one-time termination benefits.
   
(2) Attributable to the Company's plan to reduce its leased real estate footprint.
 
Note: The information furnished herewith pursuant to Item 7.01 of this Current Report on Form 8-K shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed by the Company under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The furnishing of this report is not intended to constitute a determination by the Company that the information is material or that dissemination of the information is required by Regulation FD.
 
Item 8.01. Other Events.
 
As disclosed above in Item 7.01, on November 13, 2024, the Company issued a press release announcing the Offering of the Notes. The full text of the press release is attached as Exhibit 99.1.
 
Item 9.01. Financial Statements and Exhibits.
 
(d) Exhibits:
 
Exhibit
No.
Description
   
99.1
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 
 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   
MOLINA HEALTHCARE, INC.
  
       
Date: November 13, 2024
By:
 /s/ Jeff D. Barlow  
   
Jeff D. Barlow,
Chief Legal Officer and Secretary
  
 
 
 
ex_746937.htm

Exhibit 99.1

 https://cdn.kscope.io/e9f9476c14739062a32e41c06b20dc95-mh01.jpg

News Release
Investor Contact: Jeff Geyer, Jeffrey.Geyer@molinahealthcare.com, 305-317-3012
Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, 562-951-1588

 

 

Molina Healthcare Announces Proposed Offering

of $500 Million of Senior Notes Due 2033

 

Long Beach, Calif., November 13, 2024 – Molina Healthcare, Inc. (NYSE: MOH) (the “Company”) today announced that it intends to privately offer, subject to market and other conditions, $500 million aggregate principal amount of senior notes due 2033 (the “Notes”). The Company will make the offering pursuant to an exemption under the Securities Act of 1933, as amended (the “Securities Act”). The initial purchasers will sell the Notes only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside the United States in reliance on Regulation S under the Securities Act (“Regulation S”).

 

The Notes will not be guaranteed by any of the Company’s subsidiaries at the time of issuance. The interest rate, offering price and other terms of the Notes will be determined by negotiations between the Company and the representative of the initial purchasers. The issuance of the Notes will be subject to customary closing conditions.

 

The Company intends to use the net proceeds from this offering for general corporate purposes, which may include repayment of indebtedness, funding for acquisitions, share repurchases, capital expenditures, additions to working capital and capital contributions to the Company’s health plan subsidiaries to meet statutory requirements in new or existing states.

 

The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, a U.S. person (as defined in Regulation S) except in transactions exempt from, or not subject to, the registration requirements of the Securities Act.

 

This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the Notes and shall not constitute an offer, solicitation or sale in any state or jurisdiction where such offer, solicitation or sale is prohibited.

 

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.

 

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MOH Announces Proposed Offering of $500 Million of Senior Notes Due 2033
Page 2
November 13, 2024

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

 

This press release contains 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 press release may be forward-looking statements. In some cases, you can identify forward-looking statements by words such as “intends,” “will,” “may,” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements related to the Company’s offering of the Notes and the intended use of net proceeds of the offering, which are subject to risks and uncertainties, including, without limitation, risks related to whether the Company will consummate the offering of the Notes on the expected terms, or at all, market and other general economic conditions, and whether the Company will be able to satisfy the conditions required to close any sale of the Notes. 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 events projected or contemplated by its forward-looking statements will in fact occur, and it cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of the date hereof, and, except as otherwise required by law, the Company disclaims any obligation to update any forward‑looking statements to conform the statement to actual results or changes in its expectations.

 

-END-