UnitedHealth Group Reports Record First Quarter Net Earnings of $1.16 Per Share.MINNEAPOLIS Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. -- UnitedHealth Group UnitedHealth Group Incorporated NYSE: UNH is a managed health care company. It is the parent of United Healthcare, one of the largest health insurers in the U.S. It was created in 1977, as UnitedHealthCare Corporation (it renamed itself in 1998), but traces its origin to a (NYSE NYSE See: New York Stock Exchange :UNH Unh The symbol for the element unnilhexium. ): --Revenues for First Quarter up 34% to $10.9 Billion --Strong Growth Achieved Across Multiple Businesses --Operating Margin Expanded to 11.5% --Operating Cash Flows of $1.2 Billion, Up 33% --Earnings Per Share Increased 32% UnitedHealth Group (NYSE:UNH) achieved record results in the first quarter of 2005, reported Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. William W. McGuire William W. McGuire M.D. was the CEO of UnitedHealth Group Inc. from 1992 until 1 December 2006 (see section "Resignation" below). He attended the University of Texas-Austin and is a member of Lambda Chi Alpha Fraternity. , M.D. First quarter results were driven by strong and diverse growth and consistent operating performance across the spectrum of UnitedHealth Group businesses, with every reporting segment producing both year-over-year gains in earnings from operations and expanded operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . UnitedHealth Group(R)
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Quarterly Financial Performance
Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2005 2004 2004
-------------- -------------- --------------
Revenues $10.89 billion $10.51 billion $8.14 billion
Earnings From Operations $1.26 billion $1.19 billion $876 million
Operating Margin 11.5% 11.3% 10.8%
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UnitedHealth Group Highlights --First quarter earnings per share of $1.16 increased 32 percent from $0.88 in the first quarter of 2004, and improved 7 cents or 6 percent from the fourth quarter of 2004. --First quarter consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net earnings increased to $779 million, up $225 million or 41 percent year-over-year and $40 million or 5 percent from the fourth quarter of 2004. --Consolidated revenues of $10.9 billion increased $2.7 billion or 34 percent year-over-year, and $376 million or 4 percent from the fourth quarter of 2004. --Organic customer growth strengthened for UnitedHealth Group businesses in the first quarter. Gains include approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 600,000 people at Uniprise and nearly 100,000 at UnitedHealthcare; more than 1.8 million new individuals served through Specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. Care Services; 45,000 more people purchasing Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. supplement products from Ovations, and growth of 15,000 seniors in its Medicare Advantage programs. --Operating costs declined to 14.9 percent of revenues in the first quarter, representing an improvement of 130 basis points from the first quarter of 2004 and 20 basis points from the fourth quarter of 2004. --Earnings from operations increased to $1.26 billion in the first quarter, up $380 million or 43 percent over the prior year, and up $68 million or 6 percent sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen . --Consolidated first quarter operating margin improved to 11.5 percent from 10.8 percent in the first quarter of 2004 and from 11.3 percent in the fourth quarter of 2004, reflecting diversified diversified (di·verˑ·s growth coupled with effective management of medical and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . --The consolidated medical care ratio, excluding the AARP AARP, a nonprofit, nonpartisan national organization dedicated to "enriching the experience of aging"; membership is open to people age 50 or older. Founded in 1958 by Ethel Percy Andrus as American Association of Retired Persons, AARP now has over 30 million division of Ovations, decreased 30 basis points sequentially and 60 basis points year-over-year to 78.9 percent in the first quarter of 2005. --Medical costs payable, excluding the AARP division of Ovations, increased more than $1.1 billion or 30 percent year-over-year and $264 million or 6 percent since December December: see month. 31, 2004, standing at $4.9 billion at March 31, 2005. Medical costs days payable was 64 days for the quarter, consistent with its level at 2004 year end. --During the first quarter, the Company realized prior year favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. development of $190 million in its estimates of medical costs incurred in 2004, consistent with the significant growth in the size of the medical cost base and related medical payables Payables Related: Accounts payable , as well as reflecting continuing success in managing medical cost trends and facilitating appropriate medical care. --Accounts receivable, excluding the AARP division of Ovations, were $499 million at March 31, 2005, declining $2 million year-over-year and $18 million from the fourth quarter of 2004 and representing fewer than 5 days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). . --Cash flows from operations were $1.2 billion for the first quarter, up 33 percent year-over-year. Adjusted to reflect the January January: see month. 2005 Medicare payment Noun 1. medicare payment - a check reimbursing an aged person for the expenses of health care medicare check bank check, check, cheque - a written order directing a bank to pay money; "he paid all his bills by check" that was actually received from CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. in 2004, first quarter cash flows would have been $1.48 billion, up 36 percent year-over-year on a comparable basis. --The Company repurchased 13.2 million shares during the first quarter of 2005, representing 2 percent of the shares outstanding at December 31, 2004. --First quarter 2005 annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on equity was 29.3 percent. Closing Comment "Our focus on the imperatives of affordability, access, quality and usability How easy something is to use. Both software and Web sites can be tested for usability. Considering how difficult applications are to use and Web sites are to navigate, one would wish that more designers took this seriously. See user interface and usability lab. -- applied broadly within the heath heath, tract of open land heath, tract of open land characterized by a few scattered trees, abundant moss cover, and numerous low shrubs, principally of the heath family (see heath, in botany). care system -- has positioned us for sustained future performance," Dr. McGuire McGuire may refer to:
ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" investments in technology, tools for data analysis, and the organization of health care resources, coupled with evolving partnerships with large employers, health plans and intermediaries will improve the value of services we deliver and help us expand our market share. "Looking specifically to 2005 financial performance," Dr. McGuire concluded, "our strong first quarter results and improving business momentum are cause for a strengthened forward outlook. We anticipate a year-over-year advance of more than $1.1 billion in full year 2005 earnings from operations, and now foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. growth in earnings per share of 23 percent to 24 percent in 2005, with earnings in the range of $4.85 to $4.90 per share." UnitedHealthcare Ovations AmeriChoice Business Description - Health Care Services The Health Care Services segment consists of the UnitedHealthcare, AmeriChoice and Ovations business units. UnitedHealthcare coordinates coordinates of a point on a graph or grid map, the points on the horizontal and vertical axes which identify the location of the point on the graph/map. network-based health and well-being services on behalf of multistate mul·ti·state adj. Of, relating to, or involving several states: a multistate environmental campaign. mid-sized and local employers and for consumers. AmeriChoice facilitates and manages health care services for state-sponsored Medicaid Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. programs and their beneficiaries. Ovations delivers health and well-being services to Americans over the age of 50.
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Quarterly Financial Performance
Three Months Ended
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March 31, December 31, March 31,
2005 2004 2004
-------------- -------------- --------------
Revenues $9.63 billion $9.32 billion $7.05 billion
Earnings From Operations $910 million $834 million $577 million
Operating Margin 9.5% 8.9% 8.2%
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Key Developments for Health Care Services --Revenues for Health Care Services grew $2.6 billion or 37 percent year-over-year and $305 million or 3 percent sequentially to $9.6 billion in the first quarter of 2005. --First quarter Health Care Services operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of $910 million increased $333 million or 58 percent year-over-year and $76 million or 9 percent sequentially. --First quarter operating margin of 9.5 percent expanded 130 basis points year-over-year and 60 basis points sequentially. --First quarter revenues of $6.6 billion for UnitedHealthcare increased $2 billion or 44 percent year-over-year and $175 million or 3 percent sequentially. --UnitedHealthcare increased the number of consumers served through traditional products by 95,000 people in the first quarter, bringing the total number of people served to more than 11 million. --During the first quarter, UnitedHealthcare signed a joint marketing agreement designed to address the health benefit needs of small employers by facilitating their access to a range of UnitedHealthcare products through OPEN: The Small Business Network(SM), which is a division of American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. . --UnitedHealthcare's first quarter 2005 commercial medical care ratio of 78.4 percent compares to ratios of 78.8 percent and 79.3 percent in the fourth quarter of 2004 and the first quarter of 2004, respectively. Advances in medical cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. continued to be factored into forward customer pricing for risk business, in turn providing improved overall customer value, consistent with the approach in past years. --AmeriChoice first quarter revenues of $827 million increased $99 million or 14 percent year-over-year and $2 million from the fourth quarter of 2004. --AmeriChoice membership grew by 40,000 people over the 12 months ended March 31, 2005. First quarter 2005 enrollment was unchanged from the fourth quarter of 2004. --Ovations reported record revenues of $2.2 billion in the first quarter, up $452 million or 26 percent year-over-year and $128 million or 6 percent from the fourth quarter of 2004. --A total of 85,000 additional people acquired Ovations prescription prescription In property law, the effect of the lapse of time in creating and destroying rights. Acquisitive prescription allows an individual, after unequivocal possession for a specific period, to acquire an interest in real property, such as an easement, but not the discount cards in the first quarter, bringing the total number of people served through its card programs to more than 2.5 million at March 31, 2005. --As part of its focus on the senior health market, in the first quarter Ovations notified the Centers for Medicare and Medicaid Services The Centers for Medicare and Medicaid Services (CMS), previously known as the Health Care Financing Administration (HCFA), is a federal agency within the United States Department of Health and Human Services (DHHS) that administers the Medicare program and of its intention to participate nationally in 2006 in the new Medicare Part D drug benefit program. Ovations also contracted with Walgreen Co. to provide prescription drug prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. services to consumers under the new program. Uniprise(R) Business Description Uniprise delivers network-based health and well-being services, business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. services, consumer connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. , and technology support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to large employers and health plans, and provides health-related consumer and financial transaction products and services.
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Quarterly Financial Performance
Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2005 2004 2004
-------------- -------------- --------------
Revenues $941 million $845 million $835 million
Earnings From Operations $189 million $169 million $167 million
Operating Margin 20.1% 20.0% 20.0%
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Key Developments --First quarter revenues of $941 million increased $106 million or 13 percent year-over-year and $96 million or 11 percent over the fourth quarter of 2004. --Uniprise serves more than 10.4 million people in the national multilocation employer segment, having increased the number of individuals served by just under 600,000 people in the first quarter. Strong organic growth resulted from excellent new business generation, modestly offset by continued employment attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: at certain large customers. --Separately, Uniprise has seen strong market response to its HealthAllies offering, which served more than 4.4 million people at March 31, 2005. --During the first quarter, Uniprise was selected as the national health benefits provider for the Human Resource Policy Association (HRPA HRPA Human Resources Policy Association HRPA Historic Royal Palaces Agency HRPA Human Resources Professional Association (formerly Human Resources Professionals Association of Ontario) HRPA Higher Random Phase Approximation ), a consortium of approximately 60 large multilocation employers. These employers will offer UnitedHealth Group products to their non-insured workers, including part-time part-time adj. For or during less than the customary or standard time: a part-time job. part , contract and other special status employees. The HRPA estimates these employers represent 3 million people who will be eligible for the new benefit programs. --Uniprise operating earnings of $189 million grew $22 million or 13 percent year-over-year and $20 million or 12 percent over the fourth quarter of 2004. The Uniprise operating margin of 20.1 percent expanded 10 basis points year-over-year and sequentially. Specialized Care Services Business Description Specialized Care Services offers a comprehensive array of specialized benefits, networks, services and resources to help consumers improve their health and well-being.
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Quarterly Financial Performance
Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2005 2004 2004
-------------- -------------- --------------
Revenues $647 million $588 million $554 million
Earnings From Operations $133 million $129 million $113 million
Operating Margin 20.6 % 21.9% 20.4%
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Key Developments --First quarter revenues rose to $647 million, up $93 million or 17 percent year-over-year and $59 million or 10 percent from the fourth quarter of 2004, driven by strong customer growth aggregating 1.8 million new individuals served across the portfolio of Specialized Care Services companies. --Customers accessing Specialized Care Services products are now purchasing an average of 3.7 products per person, up from 3.4 products per person at March 31, 2004. --In the first quarter, earnings from operations of $133 million increased $20 million or 18 percent year-over-year and $4 million or 3 percent sequentially. --The Specialized Care Services operating margin of 20.6 percent expanded 20 basis points year-over-year, resulting from operating efficiency gains that continued to more than offset the ongoing business mix shift due to strong growth trends in comparatively higher revenue, lower margin service lines such as vision and dental dental /den·tal/ (den´t'l) pertaining to a tooth or teeth. den·tal adj. 1. Of, relating to, or for the teeth. 2. Of, relating to, or intended for dentistry. . Ingenix Business Description Ingenix is a leader in the field of health care data, analysis and application, serving pharmaceutical companies, health insurers and other payers, physicians and other health care providers, large employers and governments.
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Quarterly Financial Performance
Three Months Ended
--------------------------------------------
March 31, December 31, March 31,
2005 2004 2004
-------------- -------------- --------------
Revenues $166 million $214 million $140 million
Earnings From Operations $24 million $56 million $19 million
Operating Margin 14.5 % 26.2% 13.6%
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Key Developments --Ingenix revenues increased $26 million, or 19 percent year-over-year, to $166 million in the first quarter of 2005. This gain reflects strong growth performance and provides the most meaningful measure of Ingenix results, due to the markedly seasonal sales characteristics of some key product lines. --A diversified group of U.S., European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and life sciences companies executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. clinical research service agreements in the first quarter, including 12 contracts with total values of at least $1 million each. --Ingenix secured significant orders in the first quarter from a broad variety of payers and providers for software and database products related to claims data, editing and management. --The Ingenix revenue backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. grew 17 percent on a year-over-year basis and currently represents approximately 80 percent of its 2005 revenue expectation. --Ingenix first quarter operating earnings increased $5 million or 26 percent year-over-year to $24 million, and the operating margin increased to 14.5 percent, up 90 basis points from first quarter 2004. The results reflect the combination of strong contribution margins on software system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. and focused operating efficiencies across its business lines. About UnitedHealth Group UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through six operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, Specialized Care Services and Ingenix. Through its family of businesses, UnitedHealth Group serves approximately 55 million individuals nationwide. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release may contain statements, estimates or projections that constitute "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements as defined under U.S. federal securities laws. Generally the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. A list and description of some of the risks and uncertainties can be found in our reports filed with the Securities and Exchange Commission from time to time, including our annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , quarterly reports on Form 10-Q Form 10-Q See 10-Q. and current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. . You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Except to the extent otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements. Earnings Conference Call As previously announced, UnitedHealth Group will discuss the Company's results, strategy and future outlook on a conference call with investors at 8:45 a.m. Eastern time today. UnitedHealth Group will host a live webcast of this conference call from the Investor Information page of the Company's Web site (www.unitedhealthgroup.com). The webcast replay of the call will be available on the same site for one week following the live call. The conference call replay can also be accessed by dialing 1-800-642-1687, conference ID #4978700. This earnings release and the Form 8-K dated April 14, 2005, which may also be accessed in the Investor Information section of the Company's Web site, include a reconciliation of non-GAAP financial measures.
UNITEDHEALTH GROUP
Earnings Release Schedules and Supplementary Information
Quarter Ended March 31, 2005
- Consolidated Statements of Operations
- Condensed Consolidated Balance Sheets
- Condensed Consolidated Statements of Cash Flows
- Segment Financial Information
- Customer Profile Summary
UNITEDHEALTH GROUP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months Ended March 31,
----------------------------
2005 2004
-------------- -------------
REVENUES
Premiums $9,871 $7,264
Services 902 789
Investment and Other Income 114 91
-------------- -------------
Total Revenues 10,887 8,144
-------------- -------------
COSTS
Medical Costs 7,902 5,869
Operating Costs 1,620 1,317
Depreciation and Amortization 109 82
-------------- -------------
Total Costs 9,631 7,268
-------------- -------------
EARNINGS FROM OPERATIONS 1,256 876
Interest Expense (49) (24)
-------------- -------------
EARNINGS BEFORE INCOME TAXES 1,207 852
Provision for Income Taxes (428) (298)
-------------- -------------
NET EARNINGS $779 $554
============== =============
BASIC NET EARNINGS PER COMMON SHARE $1.22 $0.92
============== =============
DILUTED NET EARNINGS PER COMMON SHARE $1.16 $0.88
============== =============
Diluted Weighted-Average Common Shares
Outstanding 670 630
============== =============
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
March 31, December 31,
2005 2004
-------------- -------------
ASSETS
Cash and Short-Term Investments $4,350 $4,505
Accounts Receivable, net 908 906
Other Current Assets 2,799 2,830
-------------- -------------
Total Current Assets 8,057 8,241
Long-Term Investments 8,213 7,748
Other Long-Term Assets 11,948 11,890
-------------- -------------
Total Assets $28,218 $27,879
============== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Medical Costs Payable $5,875 $5,540
Commercial Paper and Current Maturities
of Long-Term Debt 400 673
Other Current Liabilities 5,010 5,116
-------------- -------------
Total Current Liabilities 11,285 11,329
Long-Term Debt, less current maturities 3,850 3,350
Future Policy Benefits for Life and
Annuity Contracts 1,691 1,669
Deferred Income Taxes and Other
Liabilities 837 814
Shareholders' Equity 10,555 10,717
-------------- -------------
Total Liabilities and Shareholders'
Equity $28,218 $27,879
============== =============
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The table below summarizes certain balance sheet data excluding
AARP related amounts.
March 31, December 31,
2005 2004
-------------- -------------
Accounts Receivable, net $499 $517
Other Current Assets $983 $947
Other Current Liabilities $3,755 $3,743
Medical Costs Payable $4,905 $4,641
Days Medical Costs in Medical Costs
Payable 64 64
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UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Three Months Ended March 31,
----------------------------
2005 2004
-------------- -------------
Operating Activities
Net Earnings $779 $554
Noncash Items:
Depreciation and amortization 109 82
Deferred income taxes and other 16 22
Net changes in operating assets and
liabilities 302 252
-------------- -------------
Cash Flows From Operating
Activities 1,206 910
-------------- -------------
Investing Activities
Cash paid for acquisitions, net of
cash assumed (19) (527)
Purchases of property, equipment and
capitalized software (113) (83)
Net sales and maturities/(purchases)
of investments (267) 217
-------------- -------------
Cash Flows Used For Investing
Activities (399) (393)
-------------- -------------
Financing Activities
Common stock repurchases (1,100) (627)
Net change in commercial paper and
debt 227 421
Other, net 148 141
-------------- -------------
Cash Flows Used For Financing
Activities (725) (65)
-------------- -------------
Increase in cash and cash equivalents 82 452
Cash and cash equivalents, beginning of
period 3,991 2,262
-------------- -------------
Cash and cash equivalents, end of period $4,073 $2,714
============== =============
Supplemental Schedule of Noncash
Investing Activities:
Common Stock Issued for Acquisitions $- $1,932
UNITEDHEALTH GROUP
SEGMENT FINANCIAL INFORMATION
(in millions)
(unaudited)
REVENUES
--------
Three Months Ended March 31,
----------------------------
2005 2004
-------------- -------------
UnitedHealthcare $6,606 $4,579
Ovations 2,195 1,743
AmeriChoice 827 728
-------------- -------------
Health Care Services 9,628 7,050
Uniprise 941 835
Specialized Care Services 647 554
Ingenix 166 140
Corporate and eliminations (495) (435)
-------------- -------------
Total Consolidated $10,887 $8,144
============== =============
EARNINGS FROM OPERATIONS
------------------------
Three Months Ended March 31,
----------------------------
2005 2004
-------------- -------------
Health Care Services $910 $577
Uniprise 189 167
Specialized Care Services 133 113
Ingenix 24 19
-------------- -------------
Total Consolidated $1,256 $876
============== =============
UNITEDHEALTH GROUP
CUSTOMER PROFILE SUMMARY
(in thousands)
(unaudited)
March December March December
Customer Profile 2005 2004 2004 2003
------------------------------ --------- --------- --------- ---------
Commercial Businesses
Risk-based 10,940 10,820 9,370 8,360
Fee-based 16,190 15,525 14,875 14,110
Governments
Federal 1,450 1,420(a) 4,130 4,325
State and municipal 5,470 5,615 5,335 5,035
Consumers 1,520 1,455 1,190 1,190
Business-to-Business 19,675 19,005 19,330 17,440
--------- --------- --------- ---------
Grand Total 55,245 53,840 54,230 50,460
========= ========= ========= =========
(a) Department of Defense (DOD) contract for Optum Nurseline Services
involving 2.8 million members and $11 million in annual revenue
managed directly by the DOD beginning in the third quarter of
2004.
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Supplemental Segment Profile - March December March December
Health Care Services and 2005 2004 (a) 2004 (b) 2003
Uniprise --------- --------- --------- ---------
Health Care Services:
Risk-based commercial 7,675 7,655 6,200 5,400
Fee-based commercial 3,380 3,305 3,045 2,895
Medicare 345 330 235 230
Medicaid 1,260 1,260 1,220 1,105
--------- --------- --------- ---------
Total Health Care
Services 12,660 12,550 10,700 9,630
========= ========= ========= =========
Uniprise 10,470 9,875 9,530 9,060
========= ========= ========= =========
(a) Includes 1,375,000 risk-based commercial, 35,000 fee-based
commercial and 70,000 Medicare individuals served in connection
with the acquisition of Oxford Health Plans, Inc. in the third
quarter of 2004 and 315,000 Uniprise individuals served in
connection with the acquisition of Definity Health Corporation in
the fourth quarter of 2004.
(b) Includes 920,000 risk-based commercial, 90,000 fee-based
commercial, 50,000 Uniprise and 95,000 Medicaid individuals served
in connection with the acquisitions of Mid-Atlantic Medical
Services, Inc. and other businesses in the first quarter of 2004.
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