- Revenues of $99.8 Billion Grew Nearly $8 Billion Year Over
Year
- Earnings Reflect $0.74 per Share of Impacts from Change
Healthcare Cyberattack; $0.49 to Support Direct Response Efforts
and $0.25 in Business Disruption Impacts
- Company has Provided Over $6 Billion in Advance Funding and
Interest-Free Loans to Support Care Providers in Need
- First Quarter Net Loss of $1.53 Per Share is Due Primarily
to Currency Effects of Previously Reported Brazil Sale and the
Cyberattack
- Adjusted Earnings of $6.91 Per Share Include the $0.25 in
Business Disruption Impacts but Exclude Brazil Sale and Direct
Response Costs
UnitedHealth Group (NYSE: UNH) reported first quarter 2024
results reflecting broad-based growth at Optum and
UnitedHealthcare, medical care activity consistent with
expectations and the impact of the recent cyberattack on Change
Healthcare.
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UnitedHealth Group corporate headquarters
(Photo: Business Wire)
“The core story at UnitedHealth Group remains our colleagues
delivering improved experiences for the people we serve and driving
balanced growth even while swiftly and effectively addressing the
attack on Change Healthcare,” said Andrew Witty, chief executive
officer of UnitedHealth Group.
The company continues to make significant progress in restoring
the affected Change Healthcare services while providing financial
support to impacted health care providers. To date, the company has
provided over $6 billion in advance funding and interest-free loans
to support care providers in need.
Total cyberattack impacts in the first quarter amounted to $0.74
per share and the company estimates full year 2024 impacts of $1.15
to $1.35 per share. In the first quarter, this included $0.49 per
share to support direct response efforts such as the Change
Healthcare clearinghouse platform restoration and increased medical
care expenditures as the company suspended some care management
activities to help care providers with their workflow processes.
The company estimates direct response costs of $0.85 to $0.95 per
share for full year 2024. Direct response costs are included in net
earnings and excluded from adjusted earnings per share.
Additionally, Change Healthcare business disruption impacts,
reflecting lost revenue and the costs of maintaining full readiness
of the affected Change Healthcare services, were $0.25 per share in
the first quarter. The company currently estimates $0.30 to $0.40
per share business disruption impact for full year 2024. These
business disruption impacts are included in both net earnings and
adjusted earnings per share.
As reported previously, the company recorded an approximately $7
billion charge in the quarter due to the sale of its Brazil
operations, the majority of which was noncash and due to the
cumulative impact of foreign currency translation losses.
The company updated its full year 2024 net earnings outlook to
$17.60 to $18.20 per share to reflect the Brazil sale and the
estimated direct response costs of the cyberattack. The company
maintained its adjusted net earnings outlook of $27.50 to $28.00
per share. This adjusted earnings per share outlook excludes the
impacts of the direct response costs and Brazil sale, while
including the estimated $0.30 to $0.40 per share of business
disruption impacts for the affected Change Healthcare services.
Quarterly Financial Performance
Three
Months Ended
March 31,
2024
March 31,
2024
(Adjusted)
March 31,
2023
December 31,
2023
Revenues
$99.8 billion
$99.8 billion
$91.9 billion
$94.4 billion
Earnings from Operations
$ 7.9 billion
$ 8.5 billion
$ 8.1 billion
$ 7.7 billion
Net Margin
(1.4%)
6.1%
6.1%
5.8%
- UnitedHealth Group’s first quarter 2024 revenues grew nearly $8
billion year over year to $99.8 billion. First quarter earnings
from operations were $7.9 billion, including $872 million in
unfavorable cyberattack effects. Adjusted earnings from operations
of $8.5 billion include the Change Healthcare business disruption
impacts and exclude the cyberattack direct response costs. Growth
was led by a strong expansion in the number of people served at
Optum and UnitedHealthcare.
- The company did not reflect any favorable earnings impacting
medical reserve development in the quarter. Out of prudence, due to
the potential for the cyberattack to affect claims receipt timing,
the company reflected an additional $800 million of claims
reserves.
- Days claims payable of 47.1 compared to 47.9 in fourth quarter
2023 and 47.8 in first quarter 2023. Within this, the acceleration
of payments to care providers and the Brazil sale reduced reported
days claims payable by three days. The company’s medical costs
payable balance increased $1.6 billion from year-end 2023 to $34
billion. The change was due to a $3 billion increase in the
incurred but not yet reported (IBNR) component of this balance in
part to prudently accommodate the related ongoing claims receipt
assessment, partially offset by a reduction in the fully processed
claims component due to accelerated care provider claims
payments.
- Overall care patterns in the first quarter were consistent with
the company’s expectations. The first quarter 2024 medical care
ratio at 84.3% included 40 basis points of impact due to
accommodations to support care providers. The increase from the
prior year 82.2% was due to the previously noted revenue effects of
the Medicare funding reductions, considerations driven by the
Change Healthcare cyberattack, including accommodations to support
care providers, medical reserve and development effects, and
business mix.
- The first quarter 2024 operating cost ratio of 14.1% included
approximately 30 basis points of impact due to costs incurred to
support the company’s direct response efforts. The result compared
to 14.8% in 2023, reflecting strong operating cost management,
partially offset by continued growth of the services businesses and
investments to support growth.
- Cash flows from operations from the first quarter 2024 were
$1.1 billion and were affected by approximately $3 billion due to
the company’s cyberattack response actions, including funding
acceleration to care providers, and were additionally impacted due
to the timing of public sector cash receipts. The company returned
$4.8 billion to shareholders in the first quarter through dividends
and share repurchases.
UnitedHealthcare provides health care benefits globally, serving
individuals and employers, and Medicare and Medicaid beneficiaries.
UnitedHealthcare is dedicated to improving the value customers and
consumers receive by improving health and wellness, enhancing the
quality of care received, simplifying the health care experience
and reducing the total cost of care.
Quarterly Financial Performance
Three
Months Ended
March 31,
2024
March 31,
2024
(Adjusted)
March 31,
2023
December 31,
2023
Revenues
$75.4 billion
$75.4 billion
$70.5 billion
$70.8 billion
Earnings from Operations
$ 4.4 billion
$ 4.6 billion
$ 4.3 billion
$ 3.1 billion
Operating Margin
5.8%
6.1%
6.2%
4.4%
- UnitedHealthcare first quarter revenues of $75.4 billion
increased nearly $5 billion over the prior year reflecting growth
in the number of people served domestically. Operating earnings
were $4.4 billion and adjusted operating earnings were $4.6
billion.
- UnitedHealthcare total domestic consumers served grew by nearly
2 million in the first quarter 2024, led by commercial and senior,
offset by expected member attrition in Medicaid due to ongoing
eligibility redeterminations. Growth across the UnitedHealthcare
portfolio reflects strong customer response to the company’s
innovative and affordable benefit offerings.
- The number of consumers served with domestic commercial
offerings grew in the first quarter 2024 to 29.4 million. This
growth reflects recognition among the employer and individual
markets of UnitedHealthcare’s diverse and innovative product
portfolio that drives affordability and consumer ease.
- The total number of people served by the company’s offerings
for seniors and people with complex needs grew to 9.4 million.
UnitedHealthcare offerings feature product designs tailored to meet
the specific needs of people with limited economic resources and
who are often underserved. Unique offerings, such as integrated
card and simplified transportation offerings, led to a significant
increase in member engagement and greater consumer
satisfaction.
- Total people served by the company’s state-based community
offerings moderated to 7.7 million, with the year-over-year change
due to the ongoing Medicaid eligibility redetermination process.
The UnitedHealthcare team is continuing its comprehensive outreach
to help families maintain, reinstate or find other affordable
coverage. During the first quarter, UnitedHealthcare was selected
to provide expanded care services in Texas and to continue
providing services in Virginia and Michigan, with the additional
support commencing in 2025.
Optum’s health services businesses serve the global health care
marketplace, including payers, care providers, employers,
governments, life sciences companies and consumers. Using
market-leading information, analytics and technology to yield
clinical insights, Optum helps improve overall health system
performance by optimizing care quality, reducing care costs and
improving the consumer experience.
Quarterly Financial Performance
Three
Months Ended
March 31,
2024
March 31,
2024
(Adjusted)
March 31,
2023
December 31,
2023
Revenues
$61.1 billion
$61.1 billion
$54.1 billion
$59.5 billion
Earnings from Operations
$ 3.5 billion
$ 3.9 billion
$ 3.7 billion
$ 4.6 billion
Operating Margin
5.8%
6.4%
6.9%
7.7%
- Optum first quarter revenues of $61 billion grew $7 billion.
The growth was led by Optum Health and Optum Rx due to continued
strong expansion in the number of people served. Operating earnings
were $3.5 billion and adjusted earnings were $3.9 billion. Adjusted
operating earnings exclude costs to support the direct Change
Healthcare response efforts. Operating earnings and adjusted
operating earnings include $279 million in business disruption
impacts at Change Healthcare.
- Optum Health revenue increased 16% over last year, driven by
growth in the number of patients served under value-based care
offerings and continued expansion of the types and level of care
provided. Operating earnings were $1.9 billion and adjusted
operating earnings were $2 billion. Optum Health continued to
advance and deepen its clinical support for patients, including
those with complex medical needs, through virtual, in-home, and
in-clinic engagement.
- Optum Insight first quarter operating earnings were $490
million and adjusted operating earnings, which exclude direct
response costs, were $715 million. Operating earnings and adjusted
operating earnings include the $279 million of Change Healthcare
business disruption impacts. The revenue backlog grew by over $2
billion compared to the year ago quarter, bringing backlog to
nearly $33 billion, reflecting new health system partnerships.
- Optum Rx revenue increased 12% in the first quarter due to
growth in serving new customers, expanded relationships with
existing clients and continued advancement in the comprehensive
scope of pharmacy services offered, including specialty and
community-based pharmacies. Adjusted scripts grew to 395 million
compared to 378 million last year.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a health care and well-being
company with a mission to help people live healthier lives and help
make the health system work better for everyone through two
distinct and complementary businesses. Optum delivers care aided by
technology and data, empowering people, partners and providers with
the guidance and tools they need to achieve better health.
UnitedHealthcare offers a full range of health benefits, enabling
affordable coverage, simplifying the health care experience and
delivering access to high-quality care. Visit UnitedHealth Group at
www.unitedhealthgroup.com and follow UnitedHealth Group on
LinkedIn.
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
Relations page of the company’s website
(www.unitedhealthgroup.com). Following the call, a webcast replay
will be on the Investor Relations page and at
https://uhg.com/Replay through April 30, 2024. This earnings
release and the Form 8-K dated April 16, 2024, can also be accessed
from the Investor Relations 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
which are intended to take advantage of the “safe harbor”
provisions of the federal securities laws. The words “believe,”
“expect,” “intend,” “estimate,” “anticipate,” “forecast,”
“outlook,” “plan,” “project,” “should” and similar expressions
identify forward-looking statements. These statements may contain
information about financial prospects, economic conditions and
trends and involve risks and uncertainties. Actual results could
differ materially from those that management expects, depending on
the outcome of certain factors including: our ability to
effectively estimate, price for and manage medical costs; new or
changes in existing health care laws or regulations, or their
enforcement or application; cyberattacks, other privacy/data
security incidents, or our failure to comply with related
regulations; reductions in revenue or delays to cash flows received
under government programs; changes in Medicare, the CMS star
ratings program or the application of risk adjustment data
validation audits; the DOJ’s legal action relating to the risk
adjustment submission matter; our ability to maintain and achieve
improvement in quality scores impacting revenue; failure to
maintain effective and efficient information systems or if our
technology products do not operate as intended; risks and
uncertainties associated with our businesses providing pharmacy
care services; competitive pressures, including our ability to
maintain or increase our market share; changes in or challenges to
our public sector contract awards; failure to achieve targeted
operating cost productivity improvements; failure to develop and
maintain satisfactory relationships with health care payers,
physicians, hospitals and other service providers; the impact of
potential changes in tax laws and regulations; increases in costs
and other liabilities associated with litigation, government
investigations, audits or reviews; failure to complete, manage or
integrate strategic transactions; risks associated with public
health crises arising from large-scale medical emergencies,
pandemics, natural disasters and other extreme events; failure to
attract, develop, retain, and manage the succession of key
employees and executives; our investment portfolio performance;
impairment of our goodwill and intangible assets; failure to
protect proprietary rights to our databases, software and related
products; downgrades in our credit ratings; and our ability to
obtain sufficient funds from our regulated subsidiaries or from
external financings to fund our obligations, reinvest in our
business, maintain our debt to total capital ratio at targeted
levels, maintain our quarterly dividend payment cycle, or continue
repurchasing shares of our common stock.
This above list is not exhaustive. We discuss these matters, and
certain risks that may affect our business operations, financial
condition and results of operations, more fully in our filings with
the SEC, including our reports on Forms 10-K, 10-Q and 8-K. 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 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 law.
UNITEDHEALTH GROUP
Earnings Release Schedules and
Supplementary Information
Quarter Ended March 31,
2024
- Condensed Consolidated Statements of Operations
- Condensed Consolidated Balance Sheets
- Condensed Consolidated Statements of Cash Flows
- Revenues by Business - Supplemental Financial Information
- Earnings by Business - Supplemental Financial Information
- People Served and Performance Metrics - Supplemental Financial
Information
- 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,
2024
2023
Revenues
Premiums
$77,988
$72,786
Products
11,909
10,267
Services
8,888
8,080
Investment and other income
1,011
798
Total revenues
99,796
91,931
Operating costs
Medical costs
65,735
59,845
Operating costs
14,077
13,625
Cost of products sold
11,056
9,405
Depreciation and amortization
997
970
Total operating costs
91,865
83,845
Earnings from operations
7,931
8,086
Interest expense
(844)
(754)
Loss on sale of subsidiary
(7,086)
—
Earnings before income taxes
1
7,332
Provision for income taxes
(1,222)
(1,558)
Net (loss) earnings
(1,221)
5,774
Earnings attributable to noncontrolling
interests
(188)
(163)
Net (loss) earnings attributable to
UnitedHealth Group common shareholders
$(1,409)
$5,611
Diluted (loss) earnings per share
attributable to UnitedHealth Group common shareholders
$(1.53)
$5.95
Adjusted earnings per share
attributable to UnitedHealth Group common shareholders
(a)(b)
$6.91
$6.26
Diluted weighted-average common shares
outstanding (b)
922
943
(a)
See page 7 for a reconciliation of
non-GAAP measures.
(b)
Due to the anti-dilutive effect on the
calculation of loss per share, the Company excluded 8 million
potentially dilutive shares outstanding for the three months ended
March 31, 2024. Adjustments to net loss and adjusted earnings per
share are calculated using dilutive weighted-average common shares
outstanding of 930 for the three months ended March 31, 2024.
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions; unaudited)
March 31, 2024
December 31,
2023
Assets
Cash and short-term investments
$32,710
$29,628
Accounts receivable, net
27,197
21,276
Other current assets
29,035
27,533
Total current assets
88,942
78,437
Long-term investments
45,928
47,609
Other long-term assets
149,340
147,674
Total assets
$284,210
$273,720
Liabilities, redeemable noncontrolling
interests and equity
Medical costs payable
$34,032
$32,395
Short-term borrowings and current
maturities of long-term debt
9,787
4,274
Other current liabilities
60,612
62,385
Total current liabilities
104,431
99,054
Long-term debt, less current
maturities
63,850
58,263
Other long-term liabilities
19,011
17,484
Redeemable noncontrolling interests
4,548
4,498
Equity
92,370
94,421
Total liabilities, redeemable
noncontrolling interests and equity
$284,210
$273,720
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in millions; unaudited)
Three Months Ended
March 31,
2024
2023
Operating Activities
Net (loss) earnings
$(1,221)
$5,774
Noncash items:
Depreciation and amortization
997
970
Deferred income taxes and other
152
(263)
Share-based compensation
372
362
Loss on sale of subsidiary
7,086
—
Net changes in operating assets and
liabilities
(6,242)
9,484
Cash flows from operating activities
1,144
16,327
Investing Activities
Sales and maturities of investments, net
of purchases (purchases, net of sales and maturities)
492
(2,319)
Purchases of property, equipment and
capitalized software
(743)
(760)
Cash paid for acquisitions, net
(3,006)
(7,826)
Other, net
(3,083)
(115)
Cash flows used for investing
activities
(6,340)
(11,020)
Financing Activities
Common share repurchases
(3,072)
(2,000)
Dividends paid
(1,729)
(1,537)
Net change in short-term borrowings and
long-term debt
11,364
12,375
Other, net
1,668
4,352
Cash flows from financing activities
8,231
13,190
Effect of exchange rate changes on cash
and cash equivalents
(48)
51
Increase in cash and cash equivalents
2,987
18,548
Cash and cash equivalents, beginning of
period
25,427
23,365
Cash and cash equivalents, end of
period
$28,414
$41,913
UNITEDHEALTH GROUP
REVENUES BY BUSINESS -
SUPPLEMENTAL FINANCIAL INFORMATION
(in millions; unaudited)
Optum
UnitedHealth Group
Consolidated (a)
UnitedHealthcare
Optum Health
Optum Insight
Optum Rx
Total Optum(a)
Three Months Ended March 31,
2024
Total revenues
$75,357
$26,731
$4,502
$30,835
$61,052
$99,796
Business disruption impacts - cyberattack
(b)
$—
$—
$279
$—
$279
$279
Three Months Ended March 31,
2023
Total revenues
$70,468
$23,004
$4,496
$27,418
$54,059
$91,931
UnitedHealthcare
Revenues
(in millions; unaudited)
Employer & Individual
(E&I)
Total UnitedHealthcare
Domestic
Global
Total E&I
Medicare &
Retirement
Community & State
Three Months Ended March 31,
2024
Total revenues
$17,839
$1,532
$19,371
$35,486
$20,500
$75,357
Three Months Ended March 31,
2023
Total revenues
$16,544
$2,163
$18,707
$33,006
$18,755
$70,468
(a)
Optum and consolidated revenues for the
three months ended March 31, 2024 and 2023 include Optum
eliminations of $1,016 and $859; and corporate eliminations of
$36,613 and $32,596, respectively.
(b)
Amounts represent reduced revenues during
the business disruption period.
UNITEDHEALTH GROUP
EARNINGS BY BUSINESS -
SUPPLEMENTAL FINANCIAL INFORMATION
(in millions, except percentages;
unaudited)
Optum
UnitedHealth Group
Consolidated
UnitedHealthcare
Optum Health
Optum Insight
Optum Rx
Total Optum
Three Months Ended March 31,
2024
Earnings from operations
$4,395
$1,899
$490
$1,147
$3,536
$7,931
Direct response costs - cyberattack
230
(a)
138
(a)
225
—
363
593
Adjusted earnings from operations (b)
$4,625
$2,037
$715
$1,147
$3,899
$8,524
Operating margin
5.8%
7.1%
10.9%
3.7%
5.8%
7.9%
Adjusted operating margin (b)
6.1%
7.6%
15.9%
3.7%
6.4%
8.5%
Business disruption impacts - cyberattack
(c)
$—
$—
$279
$—
$279
$279
Total cyberattack impacts (d)
$230
$138
$504
$—
$642
$872
Three Months Ended March 31,
2023
Earnings from operations
$4,343
$1,776
$907
$1,060
$3,743
$8,086
Operating margin
6.2%
7.7%
20.2%
3.9%
6.9%
8.8%
(a)
Amounts primarily represent incremental
medical costs for accommodations to support care providers.
(b)
See page 7 for description of non-GAAP
measures.
(c)
Amounts represent reduced revenues during
the business disruption period. These amounts are not included
within the adjustment to earnings from operations for the three
months ended March 31, 2024.
(d)
Amounts represent the total impact of the
cyberattack, including cyberattack direct response costs and the
business disruption impacts.
UNITEDHEALTH GROUP
PEOPLE SERVED AND PERFORMANCE
METRICS - SUPPLEMENTAL FINANCIAL INFORMATION
(unaudited)
UnitedHealthcare Customer
Profile
(in thousands)
People Served
March 31, 2024
December 31, 2023
March 31, 2023
Commercial - Domestic:
Risk-based
8,545
8,115
8,025
Fee-based
20,870
19,200
19,325
Total Commercial - Domestic
29,415
27,315
27,350
Medicare Advantage
7,760
7,695
7,545
Medicaid
7,680
7,845
8,380
Medicare Supplement (Standardized)
4,325
4,355
4,320
Total Community and Senior
19,765
19,895
20,245
Total UnitedHealthcare - Domestic
Medical
49,180
47,210
47,595
Commercial - Global
2,295
5,540
5,295
Total UnitedHealthcare -
Medical
51,475
52,750
52,890
Supplemental Data
Medicare Part D stand-alone
3,085
3,315
3,380
Optum Performance
Metrics
March 31, 2024
December 31, 2023
March 31, 2023
Optum Health Consumers Served (in
millions)
104
103
103
Optum Insight Contract Backlog (in
billions)
$32.8
$32.1
$30.7
Optum Rx Quarterly Adjusted Scripts (in
millions)
395
400
378
Note: UnitedHealth Group served 149
million unique individuals across all businesses at March 31,
2024.
UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Use of Non-GAAP Financial
Measures
Adjusted net earnings per share, adjusted
earnings from operations, adjusted operating margin and adjusted
net margin 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. Adjustments made to these measures are as
follows:
Intangible Amortization: Adjusted
net earnings per share excludes intangible amortization from the
relevant GAAP measure. As amortization fluctuates based on the size
and timing of the Company’s acquisition activity, management
believes this exclusion presents a more useful comparison of the
Company's underlying business performance and trends from period to
period. While intangible assets contribute to the Company’s revenue
generation, the intangible amortization is not directly related.
Therefore, the related revenues are included in adjusted earnings
per share.
Loss on Sale of Subsidiary:
Adjusted net earnings per share and adjusted net margin excludes
the loss on sale of subsidiary. On February 6, 2024, the Company
completed the sale of its operations in Brazil. As the loss on sale
is not representative of the Company's underlying business
performance, management believes the exclusion presents a more
useful comparison of the Company's underlying business performance
and trends from period to period.
Direct Response Costs -
Cyberattack: Adjusted net earnings per share, adjusted earnings
from operations, adjusted operating margin and adjusted net margin
excludes cyberattack direct response costs. Management believes the
exclusion of costs incurred to investigate and remediate the
attack, other direct and incremental costs incurred as a result of
the cyberattack and incremental costs for accommodations to support
care providers presents a more useful comparison of the Company's
and its reportable segments' underlying business performance and
trends from period to period.
Note: See page 5 for reconciliation
of GAAP amounts to adjusted earnings from operations and adjusted
operating margin.
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,
2024
2023
2024
Net (loss) earnings attributable to
UnitedHealth Group common shareholders
$(1,409)
$5,611
$16,235 - $16,935
Intangible amortization
399
388
~1,600
Tax effect of intangible amortization
(98)
(96)
(400)
Loss on sale of subsidiary (a)
7,086
—
~7,100
Direct response costs - cyberattack
593
—
1,000 - 1,150
Tax effect of direct response costs -
cyberattack
(141)
—
(235) - (285)
Adjusted net earnings attributable to
UnitedHealth Group common shareholders
$6,430
$5,903
$25,400 - $26,000
Diluted (loss) earnings per share (b)
$(1.53)
$5.95
$17.60 - $18.20
Intangible amortization per share
0.43
0.41
~1.75
Tax effect of intangible amortization per
share
(0.10)
(0.10)
~(0.45)
Loss on sale of subsidiary per share
(a)
7.62
—
~7.65
Direct response costs - cyberattack per
share
0.64
—
1.10 - 1.25
Tax effects of direct response costs -
cyberattack per share
(0.15)
—
(0.25) - (0.30)
Adjusted diluted earnings per share
(b)
$6.91
$6.26
$27.50 - $28.00
Additional Information: Total
Cyberattack Impacts
Business disruption impacts (c)
$279
$—
$350 - $450
Tax effect of business disruption impacts
(c)
(48)
—
(70) - (90)
Business disruption impacts, net of tax
(c)
$231
$—
$280 - $360
Business disruption impacts per share
(c)
$0.25
$—
$0.30 - $0.40
Total cyberattack impacts (d)
$872
$—
$1,350 - $1,600
Tax effect of total cyberattack impacts
(d)
(189)
—
(305) - (375)
Total cyberattack impacts, net of tax
(d)
$683
$—
$1,045 - $1,225
Total cyberattack impacts per share
(d)
$0.74
$—
$1.15 - $1.35
Note: See following page for applicable
footnotes.
Adjusted Net Margin
Three Months Ended
March 31, 2024
Net loss attributable to UnitedHealth
Group common shareholders
$(1,409)
Loss on sale of subsidiary (a)
7,086
Direct response costs - cyberattack
593
Tax effect of direct response costs -
cyberattack
(141)
Adjusted net earnings attributable to
UnitedHealth Group common shareholders for loss on sale and direct
response costs
$6,129
Net margin attributable to UnitedHealth
Group common shareholders
(1.4)%
Adjusted net margin attributable to
UnitedHealth Group common shareholders for loss on sale and direct
response costs
6.1%
(a)
There were no tax effects for the loss on
sale of subsidiary.
(b)
Due to the anti-dilutive effect on the
calculation of loss per share, the Company excluded 8 million
potentially dilutive shares outstanding for the three months ended
March 31, 2024. Adjustments to net loss and adjusted earnings per
share are calculated using dilutive weighted-average common shares
outstanding of 930 for the three months ended March 31, 2024.
(c)
Amounts represent reduced revenues during
the business disruption period. These amounts are not included
within the adjustment to net earnings for the three months ended
March 31, 2024 and the projected year ended December 31, 2024.
(d)
Amounts represent the total impact of the
cyberattack, including cyberattack direct response costs and the
business disruption impacts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240416450656/en/
Investor Contact: Zack Sopcak 952-936-7215
zack.sopcak@uhg.com
Media Contact: Eric Hausman 952-936-3963
eric.hausman@uhg.com
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