WellCare Announces Fourth Quarter and Full-Year 2006 Results.$1.2 Billion in Quarterly Revenues; $1.38 Diluted Earnings Per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of TAMPA, Fla. -- WellCare Health Plans, Inc. (NYSE NYSE See: New York Stock Exchange : WCG WCG World Cyber Games WCG Worldwide Church of God WCG World Community Grid WCG Wellington Caving Group (caving club in New Zealand) WCG Washington Calligraphers Guild WCG West Coast Grocery ): * Fourth quarter revenues grew 129% to $1.2 billion year over year * Fourth quarter net income grew 425.5% year over year * Membership grew to 2,258,000; 164% growth year over year * PDP (1) (Plasma Display Panel) See plasma display. (2) (Policy Decision Point) See COPS and XACML. (3) (Programmed Data P membership grew to 923,000 members * Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. membership grew to 477,000 members * 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. Advantage membership grew over 30% year over year WellCare Health Plans, Inc. (NYSE: WCG) today announced that net income for the fourth quarter of 2006 increased 425.5% to $57.0 million, or $1.38 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, based on 41.2 million weighted average shares outstanding, compared with net income of $10.8 million, or $0.27 per diluted share, based on 39.7 million weighted average shares outstanding for the same period last year. Fourth quarter 2006 revenues increased 129.0% to $1.2 billion compared with $511.5 million for the fourth quarter of 2005. "2006 was a transformative year for WellCare," said Todd S Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. . Farha, Chairman and Chief Executive Officer. "We added over 1.4 million members and doubled our revenue without losing focus on delivering high service levels to our providers and members. We look forward to building on our strong 2006 results in 2007 and in future years." Results of Operations for the Fourth Quarter Total Revenues: Total revenues in the fourth quarter of 2006 increased 129.0% to $1.2 billion compared with $511.5 million for the same period last year. Fourth quarter 2006 revenue increases were principally attributable to the Company's strong growth in membership, primarily due to the addition of the Company's PDP products and the launch of its Georgia 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. health plan. Medical Benefits Expense: Medical benefits expense for the fourth quarter of 2006 was $905.2 million, representing 78.4% of premium revenues, compared with $405.3 million, representing 80.2% of premium revenues, for the same period last year. Selling, General and Administrative Expense: Selling, general and administrative (SG&A) expense for the fourth quarter of 2006 was $166.0 million, representing 14.2% of total revenues, compared with $82.5 million, or 16.1% of total revenues, for the same period last year, which included costs to prepare for the launch of PDP and Georgia. Net Income: Net income for the fourth quarter of 2006 was $57.0 million, or $1.38 per diluted share, based on 41.2 million weighted average shares outstanding, compared with net income of $10.8 million, or $0.27 per diluted share, based on 39.7 million weighted average shares outstanding, for the same period last year. Results of Operations for the Year Total Revenues: Total revenues for the year ended December 31, 2006 increased $1.9 billion, or 100.2%, to $3.8 billion, compared with $1.9 billion for the same period last year. 2006 revenue increases were principally attributable to the Company's membership growth, including the launch of PDP and Georgia, and mix of members between product lines. Medical Benefits Expense: Medical benefits expense for the year ended December 31, 2006 was $3.0 billion, representing 81.1% of premium revenues, compared with $1.5 billion, representing 81.2% of premium revenues, for the same period last year. Selling, General and Administrative Expense: SG&A expense was $492.8 million for the year ended December 31, 2006, representing 13.1% of total revenues, compared with $259.5 million, or 13.8% of total revenues, for the same period last year. Net Income: Net income for the year ended December 31, 2006 was $139.2 million, or $3.43 per diluted share, based on 40.6 million weighted average shares outstanding, compared with net income of $51.9 million, or $1.32 per diluted share, based on 39.3 million weighted average shares outstanding, for the same period last year. Balance Sheet and Cash Flow Highlights As of December 31, 2006, the Company had cash and cash equivalents of $964.5 million as well as investments classified as current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. of $126.4 million, for a total of $1.1 billion in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. For the quarter ended December 31, 2006, the Company's net cash provided by operations was $178.4 million on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, which does not include adjustments for the timing of receipt of payments from the Company's government partners. On an adjusted basis, excluding the cash used by the change in unearned premiums of $13.2 million, the cash used in the change in other receivables/payables from government partners of $145.3 million and the cash provided by the change in premiums receivable of $49.6 million, net cash provided by operations was $69.5 million, or 1.2 times net income, for the quarter ended December 31, 2006. Days in claims payable was 47 at the end of the fourth quarter of 2006 compared with 56 at the end of the third quarter of 2006 and 55 at the end of the fourth quarter of 2005. This decrease is primarily attributable to settlement of 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. reconciliation issues. The Company previously reserved for these settlement issues.
Membership and Other Operating Statistics <
Total State Membership (excluding PDP) < Dec. 31, 2006
Dec. 31, 2005
Florida < 525,000
545,000
Georgia < 477,000
-
New York < 117,000
95,000
Illinois < 98,000
92,000
Indiana < 70,000
85,000
Connecticut < 39,000
37,000
Missouri < 4,000
-
Louisiana < 3,000
1,000
Ohio < 2,000
-
Total State Membership (excluding PDP) < 1,335,000
855,000
Total Membership (including PDP) < Dec. 31, 2006
Dec. 31, 2005
Medicaid Membership <
TANF < 1,069,000
621,000
SCHIP < 95,000
82,000
SSI < 51,000
58,000
FHP < 30,000
25,000
Total Medicaid Membership < 1,245,000
786,000
<
Medicare Membership <
Medicare Advantage < 90,000
69,000
PDP < 923,000
-
Total Medicare Membership < 1,013,000
69,000
Total Membership (including PDP) Three
> 2006
2005
Medical Benefits Ratio > 78.4%
80.2%
SG&A Expense Ratio > 14.2%
16.1%
> Dec. 31, 2006 Sept. 30,
Dec. 31, 2005
Days in Claims Payable > 47 56
55
Growth Initiatives Medicare 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, Plans: In January 2006, the Company commenced offering its national stand-alone prescription drug plans under Medicare Part D in all 34 PDP regions established by the Centers for Medicare & Medicaid Services (CMS). As of December 31, 2006, the Company had approximately 923,000 PDP members. Georgia Expansion: The Company launched new Medicaid health plans in Georgia in June 2006 in the Atlanta and Central regions. In September and October 2006, the four remaining Georgia regions transitioned to managed care. The Company was the only health plan selected to provide Medicaid services on a statewide basis in Georgia. As of December 31, 2006, the Company had approximately 476,000 Georgia Medicaid members. Private Fee-For-Service (PFFS PFFS Private Fee-For-Service ) Plans: In January 2007, the Company began offering PFFS plans in over 739 counties in 39 states and Washington, D.C. Current membership in the Company's PFFS plans is approximately 18,000. Ohio Expansion: In the fourth quarter of 2006, the Company began participation in the Ohio northeast region managed care expansion of the Covered Families and Children and the aged, blind and disabled population programs. Current membership in the Company's Ohio plans is approximately 26,000. Guidance The Company is increasing its previously issued full-year 2007 guidance with new expectations of revenues of $4.95 billion and earnings per diluted share of $4.10 to $4.20, based on 41.8 million weighted average shares outstanding. In addition, the Company is raising its previously issued first quarter guidance to: * Revenues of $1.2 billion; and * Earnings per diluted share of $0.53, based on 41.4 million weighted average shares outstanding. Conference Call The live broadcast of WellCare's fourth quarter and full-year 2006 conference call will begin at 8:30 a.m. Eastern time on February 14, 2007. A 30-day online replay will be available beginning approximately one hour following the conclusion of the live broadcast. A link to the live broadcast and online replay can be found on the Company's website at www.wellcare.com, under the Investor Relations Investor relations The process by which the corporation communicates with its investors. section, or at www.earnings.com. Supplemental Information The Company reports cash provided by operations on a non-GAAP basis to exclude cash provided by the change in unearned premiums and cash used in the change in premiums and other receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . The Company believes that excluding changes in unearned premiums, premiums receivable and other receivables from government partners is a better measure of cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , as these changes are strictly a function of the timing of cash receipts from federal and state agencies at the end of a period. About WellCare Health Plans, Inc. WellCare Health Plans, Inc. provides managed care services exclusively for government-sponsored healthcare programs, focusing on Medicaid and Medicare. Headquartered in Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. , WellCare offers a variety of Medicaid and Medicare plans, including health plans for families, children, the aged, blind and disabled and prescription drug plans, currently serving over 2,258,000 members nationwide. For more information about WellCare, please visit the Company's website at www.wellcare.com. Cautionary Statement Regarding 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. Statements contained in this release which are not historical fact may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). The Company intends such statements to be covered by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions for forward-looking statements contained in Section 21E of the Exchange Act. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "should," "expects," "anticipates," "intends," "plans," "believes," "estimates," "predicts," "potential," "continues" and similar expressions are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to: the potential expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created , cancellation or suspension of the Company's state or federal contracts; the Company's lack of prior operating history, including lack of experience with network providers and health benefits management in expansion markets, including Georgia, Missouri and Ohio; the Company's lack of prior operating history in its Medicare PDP and PFFS plans and potential inability to accurately predict the number of members in these plans; the Company's ability to accurately predict and effectively manage health benefits and other 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. , including the Company's ability to reinsure re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. certain risks related to medical expenses; the potential for confusion in the marketplace concerning PDP and PFFS programs resulting from, among other things, the proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of health care options facing Medicare beneficiaries and the complexity of the PDP and PFFS offerings, including the benefit structures and the relative lack of awareness of these programs among health care providers, pharmacists This is a list of notable pharmacists.
When a policy of general insurance is written it will typically cover a 12 month period from inception of the policy. medical costs; risks associated with future changes in healthcare laws, including repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law. The revocation of the law can either be done through an express repeal or modification of the Medicare Modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, Act of 2003 or any portion thereof; potential reductions in funding for government healthcare programs, including reductions in funding resulting from the escalating costs of prescription drugs; risks associated with periodic government reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rate adjustments, the timing of the CMS risk-corridor payments to PDP providers and the accounting treatment for the PDP program; the Company's ability to develop processes and systems to support its operations and future growth; regulatory changes and developments, including potential marketing restrictions, sanctions Sanctions is the plural of sanction. Depending on context, a sanction can be either a punishment or a permission. The word is a contronym. Sanctions involving countries: 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. , as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , filed with the Securities and Exchange Commission in February 2006, and in the Company's periodic reports filed from time to time with the Securities and Exchange Commission, which contain discussions of the Company's business and the various factors that may affect it. The Company specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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