[April 17, 2018] |
|
UnitedHealth Group Reports First Quarter Results
UnitedHealth Group (NYSE: UNH) reported first quarter results, led by
continued strong, broad-based performance across the enterprise.
"Through the intense focus our 285,000 colleagues bring to helping
people live healthier lives and helping make the health system work
better for everyone, we have grown to serve more people in more ways
than ever, including through innovative uses of advanced technologies,
data analytics, and modern clinical approaches that improve quality,
lower cost and advance consumer and care provider satisfaction," said
David S. Wichmann, chief executive officer of UnitedHealth Group.
Based on first quarter results and the business outlook for the balance
of the year, UnitedHealth Group has increased its outlook for 2018 net
earnings to a range of $11.70 to $11.95 per share and adjusted net
earnings of $12.40 to $12.65 per share.
UnitedHealth Group
|
Quarterly Financial Performance
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2018
|
|
2017
|
|
2017
|
Revenues
|
|
$55.2 billion
|
|
$48.7 billion
|
|
$52.1 billion
|
Earnings From Operations
|
|
$4.1 billion
|
|
$3.4 billion
|
|
$4.0 billion
|
Net Margin
|
|
5.1%
|
|
4.5%
|
|
6.9%1
|
-
UnitedHealth Group's first quarter 2018 revenues grew 13.3 percent or
$6.5 billion year-over-year to $55.2 billion.
-
First quarter earnings from operations grew $640 million or 18.8
percent year-over-year to $4.1 billion. Adjusted net earnings of $3.04
per share grew 28.3 percent.
-
Adjusted cash flows from operations of $3.2 billion were 1.1x net
income in first quarter 2018, compared to $2.0 billion and 0.9x net
income in first quarter 2017.
-
The revenue effect from the return of the health insurance tax in
first quarter 2018 was the primary driver of the 100 basis point
year-over-year decrease in the consolidated medical care ratio to 81.4
percent. Medical cost reserves developed favorably by $290 million in
first quarter 2018.
-
The operating cost ratio of 15.4 percent in the first quarter of 2018
increased 100 basis points year-over-year in response to the return of
the health insurance tax.
-
The first quarter 2018 income tax rate of 21.5 percent reflected the
reduced federal statutory rate and seasonally higher stock-based
compensation activity, partially offset by the return of the
nondeductible health insurance tax.
-
First quarter 2018 days claims payable of 49 days were essentially
flat sequentially and year-over-year; first quarter days sales
outstanding rose two days sequentially and one day year-over-year to
19 days, due to the addition of Empresas Banmédica and growth in
government-based offerings.
-
UnitedHealth Group repurchased 11.6 million shares for $2.65 billion
in the first quarter and paid $722 million in dividends to
shareholders, an increase of 21.1 percent over first quarter 2017.
-
Annualized return on shareholders' equity increased 210 basis points
year-over-year to 23.8 percent in the first quarter. Debt to total
capital of 41.6 percent at March 31, 2018 decreased 190 basis points
year-over-year, while increasing 270 basis points sequentially due
principally to the Empresas Banmédica merger.
____________________
1 Fourth quarter 2017 included a $1.2 billion favorable
non-cash revaluation of the Company's U.S. net deferred tax liability,
increasing net margin by 230 basis points in that quarter.
UnitedHealthcare
UnitedHealthcare provides global health care benefits, serving
individuals and employers, and Medicare and Medicaid beneficiaries.
|
Quarterly Financial Performance
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2018
|
|
2017
|
|
2017
|
Revenues
|
|
$45.5 billion
|
|
$40.1 billion
|
|
$41.6 billion
|
Earnings From Operations
|
|
$2.4 billion
|
|
$2.1 billion
|
|
$1.8 billion
|
Operating Margin
|
|
5.3%
|
|
5.3%
|
|
4.2%
|
-
UnitedHealthcare grew to serve 2.2 million more consumers2
in the first quarter of 2018, helping grow revenues by $5.3 billion or
13.3 percent year-over-year to $45.5 billion. First quarter 2018
earnings from operations of $2.4 billion grew 12.5 percent.
-
UnitedHealthcare Employer & Individual
first quarter 2018 revenues of $13.4 billion increased $675
million year-over-year, due to growth in people served over the
past 12 months, increases in rates to cover expected medical cost
trends and the resumption of the health insurance tax. As
expected, UnitedHealthcare Employer & Individual served 195,000
fewer people in commercial group plans in the quarter, reflecting
employers shifting their retirees from self-funded offerings to
group Medicare Advantage plans, and lower retention due to pricing
actions to cover the full cost of the health insurance tax.
-
UnitedHealthcare Medicare & Retirement
grew revenues by $2.4 billion or 14.3 percent year-over-year to
$18.9 billion in the first quarter of 2018. The business served
375,000 more seniors in the quarter, including 330,000 in Medicare
Advantage through individual products and employer-sponsored group
retiree plans. The number of people served through Medicare
Advantage grew 10.6 percent year-over-year.
-
In first quarter 2018, UnitedHealthcare
Community & State revenues of $10.7 billion grew $1.7
billion or 19.2 percent year-over-year, reflecting strong 12-month
membership growth and an increasing mix of individuals with higher
clinical needs. First quarter membership was consistent with year
end 2017, as strong growth serving people in continuing markets
offset the Delaware market withdrawal.
-
UnitedHealthcare Global served 6.1
million people at March 31, 2018, having broadened its platform to
serve people in Chile, Colombia and Peru through a merger with
Empresas Banmédica, a leading health plan and care delivery
organization serving more than 2 million people with health care
benefits. Global revenues of $2.45 billion grew 29.2 percent
year-over-year.
____________________
2 Reflects net consumer growth excluding the TRICARE military
health program, which concluded in 2017.
Optum
Optum is a health services business serving the global health care
marketplace, including payers, care providers, employers, governments,
life sciences companies and consumers. Using market-leading information,
data analytics, technology and clinical insights, Optum's people help
improve overall health system performance: optimizing care quality,
reducing health care costs and improving the consumer experience and
health system performance.
|
Quarterly Financial Performance
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2018
|
|
2017
|
|
2017
|
Revenues
|
|
$23.6 billion
|
|
$21.2 billion
|
|
$24.4 billion
|
Earnings From Operations
|
|
$1.7 billion
|
|
$1.3 billion
|
|
$2.2 billion
|
Operating Margin
|
|
7.0%
|
|
6.0%
|
|
9.1%
|
-
In the first quarter of 2018, Optum revenues grew year-over-year by
$2.4 billion or 11.1 percent to $23.6 billion. Optum's operating
margin of 7 percent increased 100 basis points year-over-year in
total, with performance improvements at each business. First quarter
earnings from operations grew $374 million or 29.2 percent
year-over-year to $1.7 billion, with double-digit percentage increases
for every business segment.
-
OptumHealth revenues of $5.8 billion
grew $1 billion or 21.7 percent year-over-year, driven by growth
in care delivery and behavioral, digital consumer engagement and
health financial services. OptumHealth served 91 million people at
quarter end, having grown by 9 million people3 or 11
percent over the past year.
-
OptumInsight revenues grew 12.3
percent to $2.1 billion in first quarter 2018, driven by growth
and expansion in payer technology and services and care provider
advisory services. OptumInsight's contract backlog of $15.2
billion grew year-over-year by $2.1 billion or 16 percent.
-
OptumRx first quarter 2018 revenues
grew 7.8 percent year-over-year to $16.1 billion. OptumRx
fulfilled 332 million adjusted scripts in first quarter 2018,
growing 3.1 percent over the prior year, with favorable mix in
specialty pharmacy and home delivery services.
____________________
3 Reflects net consumer growth excluding the TRICARE military
health program, which concluded in 2017.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a diversified health and well-being
company dedicated to helping people live healthier lives and helping
make the health system work better for everyone. UnitedHealth Group
offers a broad spectrum of products and services through two distinct
platforms: UnitedHealthcare, which provides health care coverage and
benefits services; and Optum, which provides information and
technology-enabled health services. For more information, visit
UnitedHealth Group at www.unitedhealthgroup.com
or follow @UnitedHealthGrp on Twitter.
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 Investors page of the Company's
website (www.unitedhealthgroup.com).
Following the call, a webcast replay will be available on the same site
through May 1, 2018. The conference call replay can also be accessed by
dialing 1-800-753-8878. This earnings release and the Form 8-K dated
April 17, 2018 can also be accessed from the Investors page of the
Company's website.
Non-GAAP Financial Information
This news release presents non-GAAP financial information provided as a
complement to the results provided in accordance with accounting
principles generally accepted in the United States of America ("GAAP").
A reconciliation of the non-GAAP financial information to the most
directly comparable GAAP financial measure is provided in the
accompanying tables found at the end of this release.
Forward-Looking Statements
The statements, estimates, projections, guidance or outlook contained in
this document include "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995 (PSLRA). These
statements are intended to take advantage of the "safe harbor"
provisions of the PSLRA. Generally the words "believe," "expect,"
"intend," "estimate," "anticipate," "forecast," "outlook," "plan,"
"project," "should" and similar expressions identify forward-looking
statements, which generally are not historical in nature. These
statements may contain information about financial prospects, economic
conditions and trends and involve risks and uncertainties. We caution
that actual results could differ materially from those that management
expects, depending on the outcome of certain factors.
Some factors that could cause actual results to differ materially from
results discussed or implied in the forward-looking statements include:
our ability to effectively estimate, price for and manage our medical
costs, including the impact of any new coverage requirements; new laws
or regulations, or changes in existing laws or regulations, or their
enforcement or application, including increases in medical,
administrative, technology or other costs or decreases in enrollment
resulting from U.S., Brazilian and other jurisdictions' regulations
affecting the health care industry; the outcome of the Department of
Justice's legal actions relating to risk adjustment submission matters;
our ability to maintain and achieve improvement in CMS star ratings and
other quality scores that impact revenue; reductions in revenue or
delays to cash flows received under Medicare, Medicaid and other
government programs, including the effects of a prolonged U.S.
government shutdown or debt ceiling constraints; changes in Medicare,
including changes in payment methodology, the CMS star ratings program
or the application of risk adjustment data validation audits;
cyber-attacks or other privacy or data security incidents; failure to
comply with privacy and data security regulations; regulatory and other
risks and uncertainties of the pharmacy benefits management industry;
competitive pressures, which could affect our ability to maintain or
increase our market share; changes in or challenges to our public sector
contract awards; our ability to execute contracts on competitive terms
with physicians, hospitals and other service providers; failure to
achieve targeted operating cost productivity improvements, including
savings resulting from technology enhancement and administrative
modernization; increases in costs and other liabilities associated with
increased litigation, government investigations, audits or reviews;
failure to manage successfully our strategic alliances or complete or
receive anticipated benefits of acquisitions and other strategic
transactions; fluctuations in foreign currency exchange rates on our
reported shareholders' equity and results of operations; downgrades in
our credit ratings; the performance of our investment portfolio;
impairment of the value of our goodwill and intangible assets if
estimated future results do not adequately support goodwill and
intangible assets recorded for our existing businesses or the businesses
that we acquire; failure to maintain effective and efficient information
systems or if our technology products do not operate as intended; and
our ability to obtain sufficient funds from our regulated subsidiaries
or the debt or capital markets to fund our obligations, to maintain our
debt to total capital ratio at targeted levels, to maintain our
quarterly dividend payment cycle or to continue repurchasing shares of
our common stock.
This list of important factors is not intended to be exhaustive. We
discuss certain of these matters more fully, as well as certain risk
factors that may affect our business operations, financial condition and
results of operations, in our filings with the Securities and Exchange
Commission, including our annual reports on Form 10-K, quarterly reports
on Form 10-Q and current reports on Form 8-K. Any or all forward-looking
statements we make may turn out to be wrong, and can be affected by
inaccurate assumptions we might make or by known or unknown risks and
uncertainties. By their nature, forward-looking statements are not
guarantees of future performance or results and are subject to risks,
uncertainties and assumptions that are difficult to predict or quantify.
Actual future results may vary materially from expectations expressed or
implied in this document or any of our prior communications. You should
not place undue reliance on forward-looking statements, which speak only
as of the date they are made. We do not undertake to update or revise
any forward-looking statements, except as required by applicable
securities laws.
|
UNITEDHEALTH GROUP
|
|
Earnings Release Schedules and Supplementary Information
|
Quarter Ended March 31, 2018
|
|
- Condensed Consolidated Statements of Operations
|
- Condensed Consolidated Balance Sheets
|
- Condensed Consolidated Statements of Cash Flows
|
- Supplemental Financial Information - Businesses
|
- Supplemental Financial Information - Business Metrics
|
- Reconciliation of Non-GAAP Financial Measures
|
|
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (in millions, except per share data) (unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2018
|
|
2017
|
Revenues
|
|
|
|
|
Premiums
|
|
$
|
44,084
|
|
|
$
|
38,938
|
|
Products
|
|
|
6,702
|
|
|
|
6,129
|
|
Services
|
|
|
4,104
|
|
|
|
3,434
|
|
Investment and other income
|
|
|
298
|
|
|
|
222
|
|
Total revenues
|
|
|
55,188
|
|
|
|
48,723
|
|
Operating costs
|
|
|
|
|
Medical costs
|
|
|
35,863
|
|
|
|
32,079
|
|
Operating costs
|
|
|
8,506
|
|
|
|
7,022
|
|
Cost of products sold
|
|
|
6,184
|
|
|
|
5,676
|
|
Depreciation and amortization
|
|
|
582
|
|
|
|
533
|
|
Total operating costs
|
|
|
51,135
|
|
|
|
45,310
|
|
Earnings from operations
|
|
|
4,053
|
|
|
|
3,413
|
|
Interest expense
|
|
|
(329
|
)
|
|
|
(283
|
)
|
Earnings before income taxes
|
|
|
3,724
|
|
|
|
3,130
|
|
Provision for income taxes
|
|
|
(800
|
)
|
|
|
(939
|
)
|
Net earnings
|
|
|
2,924
|
|
|
|
2,191
|
|
Earnings attributable to noncontrolling interests
|
|
|
(88
|
)
|
|
|
(19
|
)
|
Net earnings attributable to UnitedHealth Group common
shareholders
|
|
$
|
2,836
|
|
|
$
|
2,172
|
|
Diluted earnings per share attributable to UnitedHealth Group
common shareholders
|
|
$
|
2.87
|
|
|
$
|
2.23
|
|
Adjusted earnings per share attributable to UnitedHealth Group
common shareholders (a)
|
|
$
|
3.04
|
|
|
$
|
2.37
|
|
Diluted weighted-average common shares outstanding
|
|
|
987
|
|
|
|
975
|
|
|
|
|
|
|
(a) See page 6 for a reconciliation of the non-GAAP measure
|
|
|
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED BALANCE
SHEETS (in millions) (unaudited)
|
|
|
|
|
|
|
|
March 31, 2018
|
|
December 31, 2017
|
Assets
|
|
|
|
|
Cash and short-term investments
|
|
$
|
22,041
|
|
$
|
15,490
|
Accounts receivable, net
|
|
|
11,512
|
|
|
9,568
|
Other current assets
|
|
|
14,800
|
|
|
12,026
|
Total current assets
|
|
|
48,353
|
|
|
37,084
|
Long-term investments
|
|
|
29,441
|
|
|
28,341
|
Other long-term assets
|
|
|
77,775
|
|
|
73,633
|
Total assets
|
|
$
|
155,569
|
|
$
|
139,058
|
|
|
|
|
|
Liabilities, redeemable noncontrolling interests and equity
|
|
|
|
|
Medical costs payable
|
|
$
|
19,589
|
|
$
|
17,871
|
Commercial paper and current maturities of long-term debt
|
|
|
7,379
|
|
|
2,857
|
Other current liabilities
|
|
|
40,699
|
|
|
29,735
|
Total current liabilities
|
|
|
67,667
|
|
|
50,463
|
Long-term debt, less current maturities
|
|
|
28,206
|
|
|
28,835
|
Other long-term liabilities
|
|
|
7,770
|
|
|
7,738
|
Redeemable noncontrolling interests
|
|
|
1,890
|
|
|
2,189
|
Equity
|
|
|
50,036
|
|
|
49,833
|
Total liabilities, redeemable noncontrolling interests and equity
|
|
$
|
155,569
|
|
$
|
139,058
|
|
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (in millions) (unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2018
|
|
2017
|
Operating Activities
|
|
|
|
|
Net earnings
|
|
$
|
2,924
|
|
|
$
|
2,191
|
|
Noncash items:
|
|
|
|
|
Depreciation and amortization
|
|
|
582
|
|
|
|
533
|
|
Deferred income taxes and other
|
|
|
(47
|
)
|
|
|
(46
|
)
|
Share-based compensation
|
|
|
208
|
|
|
|
196
|
|
Net changes in operating assets and liabilities
|
|
|
4,702
|
|
|
|
3,582
|
|
Cash flows from operating activities
|
|
|
8,369
|
|
|
|
6,456
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
Purchases of investments, net of sales and maturities
|
|
|
(1,385
|
)
|
|
|
(1,339
|
)
|
Purchases of property, equipment and capitalized software
|
|
|
(477
|
)
|
|
|
(507
|
)
|
Cash paid for acquisitions, net
|
|
|
(2,583
|
)
|
|
|
(468
|
)
|
Other, net
|
|
|
(72
|
)
|
|
|
25
|
|
Cash flows used for investing activities
|
|
|
(4,517
|
)
|
|
|
(2,289
|
)
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
Common share repurchases
|
|
|
(2,650
|
)
|
|
|
(682
|
)
|
Dividends paid
|
|
|
(722
|
)
|
|
|
(596
|
)
|
Net change in commercial paper and long-term debt
|
|
|
3,159
|
|
|
|
(189
|
)
|
Other, net
|
|
|
2,635
|
|
|
|
2,992
|
|
Cash flows from financing activities
|
|
|
2,422
|
|
|
|
1,525
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(12
|
)
|
|
|
20
|
|
Increase in cash and cash equivalents
|
|
|
6,262
|
|
|
|
5,712
|
|
Cash and cash equivalents, beginning of period
|
|
|
11,981
|
|
|
|
10,430
|
|
Cash and cash equivalents, end of period
|
|
$
|
18,243
|
|
|
$
|
16,142
|
|
|
|
|
|
|
Supplemental Schedule of Noncash Investing Activities
|
|
|
|
|
Common stock issued for acquisition
|
|
$
|
-
|
|
|
$
|
1,860
|
|
|
UNITEDHEALTH GROUP SUPPLEMENTAL FINANCIAL INFORMATION
- BUSINESSES (in millions, except percentages) (unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
|
2017
|
Revenues
|
|
|
|
|
UnitedHealthcare
|
|
$
|
45,459
|
|
|
$
|
40,136
|
|
Optum
|
|
|
23,601
|
|
|
|
21,237
|
|
Eliminations
|
|
|
(13,872
|
)
|
|
|
(12,650
|
)
|
|
Total consolidated revenues
|
|
$
|
55,188
|
|
|
$
|
48,723
|
|
|
|
|
|
|
|
Earnings from Operations
|
|
|
|
|
UnitedHealthcare
|
|
$
|
2,400
|
|
|
$
|
2,134
|
|
Optum (a)
|
|
|
1,653
|
|
|
|
1,279
|
|
|
Total consolidated earnings from operations
|
|
$
|
4,053
|
|
|
$
|
3,413
|
|
|
|
|
|
|
|
Operating Margin
|
|
|
|
|
UnitedHealthcare
|
|
|
5.3
|
%
|
|
|
5.3
|
%
|
Optum
|
|
|
7.0
|
%
|
|
|
6.0
|
%
|
|
Consolidated operating margin
|
|
|
7.3
|
%
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
UnitedHealthcare Employer & Individual
|
|
$
|
13,414
|
|
|
$
|
12,739
|
|
UnitedHealthcare Medicare & Retirement
|
|
|
18,925
|
|
|
|
16,552
|
|
UnitedHealthcare Community & State
|
|
|
10,671
|
|
|
|
8,949
|
|
UnitedHealthcare Global
|
|
|
2,449
|
|
|
|
1,896
|
|
|
|
|
|
|
|
OptumHealth
|
|
$
|
5,759
|
|
|
$
|
4,733
|
|
OptumInsight
|
|
|
2,069
|
|
|
|
1,843
|
|
OptumRx
|
|
|
16,106
|
|
|
|
14,947
|
|
Optum eliminations
|
|
|
(333
|
)
|
|
|
(286
|
)
|
|
|
|
|
|
|
(a)
|
Earnings from operations for Optum for the three months ended March
31, 2018 and 2017 included $488 and $332 for OptumHealth; $395 and
$294 for OptumInsight; and $770 and $653 for OptumRx, respectively.
|
|
UNITEDHEALTH GROUP SUPPLEMENTAL FINANCIAL INFORMATION
- BUSINESS METRICS
|
|
|
|
|
|
|
|
UNITEDHEALTHCARE CUSTOMER PROFILE (in thousands)
|
|
|
|
|
|
|
|
People Served
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
|
|
|
|
|
|
|
Commercial group:
|
|
|
|
|
|
|
Risk-based
|
|
|
7,860
|
|
|
7,935
|
|
|
7,695
|
Fee-based
|
|
|
18,475
|
|
|
18,595
|
|
|
19,155
|
Total commercial group
|
|
|
26,335
|
|
|
26,530
|
|
|
26,850
|
Individual
|
|
|
475
|
|
|
485
|
|
|
585
|
Total Commercial (a)
|
|
|
26,810
|
|
|
27,015
|
|
|
27,435
|
Medicare Advantage
|
|
|
4,760
|
|
|
4,430
|
|
|
4,305
|
Medicaid
|
|
|
6,695
|
|
|
6,705
|
|
|
6,200
|
Medicare Supplement (Standardized)
|
|
|
4,490
|
|
|
4,445
|
|
|
4,350
|
Total Public and Senior
|
|
|
15,945
|
|
|
15,580
|
|
|
14,855
|
Total UnitedHealthcare - Domestic Medical
|
|
|
42,755
|
|
|
42,595
|
|
|
42,290
|
International
|
|
|
6,095
|
|
|
4,080
|
|
|
4,165
|
Total UnitedHealthcare - Medical
|
|
|
48,850
|
|
|
46,675
|
|
|
46,455
|
|
|
|
|
|
|
|
Supplemental Data
|
|
|
|
|
|
|
Medicare Part D stand-alone
|
|
|
4,770
|
|
|
4,940
|
|
|
4,955
|
|
|
|
|
|
|
|
OPTUM PERFORMANCE METRICS
|
|
|
|
|
|
|
|
|
|
March 31,
2018
|
|
December 31,
2017
|
|
March 31,
2017
|
|
|
|
|
|
|
|
OptumHealth Consumers Served (in millions) (a)
|
|
|
91
|
|
|
88
|
|
|
82
|
OptumInsight Contract Backlog (in billions)
|
|
$
|
15.2
|
|
$
|
15.0
|
|
$
|
13.1
|
OptumRx Quarterly Adjusted Scripts (in millions)
|
|
|
332
|
|
|
333
|
|
|
322
|
|
|
|
|
|
|
|
(a) Excludes TRICARE of 2.9 million at December 31, 2017 and March
31, 2017.
|
|
Note: UnitedHealth Group served 139 million unique individuals
across all businesses at March 31, 2018.
|
|
UNITEDHEALTH GROUP
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
- Adjusted Net Earnings per Share
|
|
- Adjusted Cash Flows from Operations
|
|
Use of Non-GAAP Financial Measures
|
Adjusted net earnings per share and adjusted cash flows from
operations are non-GAAP financial measures. Non-GAAP financial
measures should be considered in addition to, but not as a
substitute for, or superior to, financial measures prepared in
accordance with GAAP.
Adjusted net earnings per share excludes from the relevant GAAP
metric, as applicable, intangible amortization and other items, if
any, that do not relate to the Company's underlying business
performance. Management believes that the use of adjusted net
earnings per share provides investors and management useful
information about the earnings impact of acquisition-related
intangible asset amortization. Management believes the exclusion
of these items provides a more useful comparison of the Company's
underlying business performance from period to period.
Management believes that the use of adjusted cash flows from
operations provides investors and management with useful
information to compare our cash flows from operations for the
current period to that of other periods, when the Company does not
receive its monthly payment from the Centers for Medicare and
Medicaid Services (CMS) in the applicable quarter. CMS generally
remits their monthly payments on the first calendar day of the
applicable month. However, if the first calendar day of the month
falls on a weekend or a holiday, CMS has typically paid the
Company on the last business day of the preceding calendar month.
As such, quarterly operating cash flows determined in accordance
with GAAP may occasionally include CMS premium payments for two
months or four months. Adjusted cash flows from operating
activities presents operating cash flows assuming all CMS payments
were received on the first calendar day of the applicable month.
|
|
UNITEDHEALTH GROUP RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (in millions, except per share data) (unaudited)
|
|
|
|
|
|
|
|
|
ADJUSTED NET EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Projected
Year Ended
December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
GAAP net earnings attributable to UnitedHealth Group common
shareholders
|
|
|
$
|
2,836
|
|
|
$
|
2,172
|
|
|
$11,525 to $11,775
|
Intangible amortization
|
|
|
|
220
|
|
|
|
219
|
|
|
~885
|
Tax effect of intangible amortization
|
|
|
|
(55
|
)
|
|
|
(82
|
)
|
|
~(220)
|
Adjusted net earnings attributable to UnitedHealth Group common
shareholders
|
|
|
$
|
3,001
|
|
|
$
|
2,309
|
|
|
$12,200 to $12,450
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share
|
|
|
$
|
2.87
|
|
|
$
|
2.23
|
|
|
$11.70 to $11.95
|
Intangible amortization per share
|
|
|
|
0.22
|
|
|
|
0.22
|
|
|
~0.90
|
Tax effect per share of intangible amortization
|
|
|
|
(0.05
|
)
|
|
|
(0.08
|
)
|
|
~(0.20)
|
Adjusted diluted earnings per share
|
|
|
$
|
3.04
|
|
|
$
|
2.37
|
|
|
~$12.40 to $12.65
|
|
|
|
|
|
|
|
|
ADJUSTED CASH FLOWS FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2018
|
|
2017
|
|
|
GAAP cash flows from operations
|
|
|
$
|
8,369
|
|
|
$
|
6,456
|
|
|
|
Add: April CMS premium payments received in March
|
|
|
|
(5,144
|
)
|
|
|
(4,442
|
)
|
|
|
Adjusted cash flows from operations
|
|
|
$
|
3,225
|
|
|
$
|
2,014
|
|
|
|
Click
here to subscribe to Mobile Alerts for UnitedHealth Group.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180417005655/en/
[ Back To TMCnet.com's Homepage ]
|