Coventry Health Care, Inc. (CVH) reported consolidated operating results for the quarter ended December 31, 2009. Operating revenues totaled $3.4 billion for the quarter with net earnings of $109.1 million, or $0.74 earnings per diluted share (EPS). For the year ended December 31, 2009, total revenues from continuing operations were $13.9 billion with net earnings from continuing operations of $315.3 million, or $2.14 per diluted share.
"I am pleased with the progress that the Company has made during 2009 including a strong finish to the year in the fourth quarter," said Allen F. Wise, chairman and chief executive officer of Coventry. "Although we continue to operate in a challenging economic environment, as we enter 2010 we remain confident that our focus on Coventry’s seven core businesses will best position us for the future."
Fourth Quarter 2009 Consolidated Highlights
- Revenues from continuing operations increased 15.2% from the prior year quarter
- Medicare Coordinated Care Product (CCP) membership growth of 36% from the prior year quarter
- Medicare Part D membership growth of 47,000 from the prior quarter
- Health plan commercial group risk medical loss ratio of 82.9%
- Excellent liquidity position — Approximately $510 million of deployable free cash at the parent at quarter-end
- Debt repayment of $110 million during the quarter
- Investment portfolio continues to be in a net unrealized gain position at quarter-end
- Announced agreement to acquire Preferred Health Systems, Inc., a commercial health plan based in Wichita, Kansas, which closed on February 1, 2010
Full Year 2009 Consolidated Highlights
- Revenues from continuing operations increased 18.5% from the prior year
- Fourth consecutive year of strong performance from Medicare Part D including growth of 752,000 members from the prior year, an increase of 81%
- Health plan commercial group risk medical loss ratio of 81.9%
- Individual commercial risk membership growth of 23,000 from the prior year
- Cash flows from operations were $881.8 million
- Debt reduction of $303.5 million from the prior year resulting in a 30.1% debt to capital ratio at year-end
- Completed the divestiture of a non-core business, First Health Services Corporation (FHSC), during the third quarter of 2009
Coventry Health Care is a diversified national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental and workers’ compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators. For more information, visit www.coventryhealthcare.com.
Contact:
John Stelben
Interim Chief Financial Officer
301-581-5729
Drew Asher
SVP, Corporate Finance
301-581-5717