Health Net Inc. (HNT, Financial) filed Quarterly Report for the period ended 2009-03-31.
Health Net Inc. is an integrated managed care organization which administers the delivery of managed health care services. The company's health maintenance organizations insured preferred provider organizations and government contracts subsidiaries provide health benefits to individuals through group individual Medicare risk Medicaid and TRICARE programs. Health Net Inc. has a market cap of $1.79 billion; its shares were traded at around $17.29 with a P/E ratio of 8.19 and P/S ratio of 0.12. Health Net Inc. had an annual average earning growth of 6.6% over the past 5 years.
Total revenues increased by $96.0 million, or 3%, for the three months ended March 31, 2009 as compared to the same period in 2008. Health plan services premium revenues increased 1% for the three months ended March 31, 2009 as compared to the same period in 2008. The health plan services medical care ratio (MCR) was 86.7% for the three months ended March 31, 2009 compared to 89.3% for the three months ended March 31, 2008. Our Government contracts revenues increased 14% to $759.3 million for the three months ended March 31, 2009 from $664.5 million for the same period in 2008.
Our cash flows used in operations decreased to $(5.8) million for the three months ended March 31, 2009 from $(117.3) million for the same period in 2008 primarily due to the $160 million settlement payment made in connection with the McCoy, Wachtel and Scharfman lawsuits in the three months ended March 31, 2008. See Legal ProceedingsProceedings Related to Claims Payment Practices for a discussion of the McCoy, Wachtel and Scharfman lawsuits.
Read the The complete ReportHNT is in the portfolios of Richard Snow of Snow Capital Management, L.P., Bill Miller of Legg Mason Value Trust, David Einhorn of Greenlight Capital Inc, Edward Owens of Vanguard Health Care Fund, Lee Ainslie.
Health Net Inc. is an integrated managed care organization which administers the delivery of managed health care services. The company's health maintenance organizations insured preferred provider organizations and government contracts subsidiaries provide health benefits to individuals through group individual Medicare risk Medicaid and TRICARE programs. Health Net Inc. has a market cap of $1.79 billion; its shares were traded at around $17.29 with a P/E ratio of 8.19 and P/S ratio of 0.12. Health Net Inc. had an annual average earning growth of 6.6% over the past 5 years.
Highlight of Business Operations:
Net income for the three months ended March 31, 2009 increased to $22.0 million from net loss of $(35.7) million for the same period in 2008. Our diluted earnings per share for the three months ended March 31, 2009 were $0.21 compared with a loss per share of $(0.33) for the three months ended March 31, 2008. Our pretax margin was 0.6% for the three months ended March 31, 2009, compared with (1.3)% for the same period in 2008. Our operating results for the three months ended March 31, 2009 included a $44.8 million pretax charge. The charge consists of $46.9 million for expenses related to our operations strategy reduced by $2.2 million benefit from a litigation reserve true-up. Our operating results for the three months ended March 31, 2008 included $82.4 million of pretax charges related to operations strategy and litigation and regulatory-related matters. Also included in the operating results for the three months ended March 31, 2008 is $94 million of unfavorable prior period reserve development and higher than expected health care costs.Total revenues increased by $96.0 million, or 3%, for the three months ended March 31, 2009 as compared to the same period in 2008. Health plan services premium revenues increased 1% for the three months ended March 31, 2009 as compared to the same period in 2008. The health plan services medical care ratio (MCR) was 86.7% for the three months ended March 31, 2009 compared to 89.3% for the three months ended March 31, 2008. Our Government contracts revenues increased 14% to $759.3 million for the three months ended March 31, 2009 from $664.5 million for the same period in 2008.
Our cash flows used in operations decreased to $(5.8) million for the three months ended March 31, 2009 from $(117.3) million for the same period in 2008 primarily due to the $160 million settlement payment made in connection with the McCoy, Wachtel and Scharfman lawsuits in the three months ended March 31, 2008. See Legal ProceedingsProceedings Related to Claims Payment Practices for a discussion of the McCoy, Wachtel and Scharfman lawsuits.
Read the The complete ReportHNT is in the portfolios of Richard Snow of Snow Capital Management, L.P., Bill Miller of Legg Mason Value Trust, David Einhorn of Greenlight Capital Inc, Edward Owens of Vanguard Health Care Fund, Lee Ainslie.
