- Revenues of $80.1 Billion Grew $10 Billion or 14%
Year-Over-Year, with Double-Digit Growth at both Optum and
UnitedHealthcare
- Earnings from Operations were $7 Billion
- Cash Flows from Operations were $5.3 Billion
- Earnings were $5.27 Per Share, Adjusted Earnings $5.49 Per
Share
Strong and well-balanced growth continued across UnitedHealth
Group (NYSE: UNH) in the first quarter of 2022.
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“Disciplined execution of our long-term strategy, with a sharp
focus on ensuring access to care for the people we serve, enabled
us to deliver high-quality, diversified growth across Optum and
UnitedHealthcare during this first quarter of 2022,” said Andrew
Witty, chief executive officer of UnitedHealth Group.
Based upon the first quarter performance and enterprise-wide
growth outlook, the Company increased its full year net earnings
outlook to $20.30 to $20.80 per share and adjusted net earnings to
$21.20 to $21.70 per share.
Quarterly Financial Performance
Three
Months Ended
March 31,
2022
March 31,
2021
December 31,
2021
Revenues
$80.1 billion
$70.2 billion
$73.7 billion
Earnings from Operations
$ 7.0 billion
$ 6.7 billion
$ 5.5 billion
Net Margin
6.3%
6.9%
5.5%
- UnitedHealth Group’s first quarter 2022 revenues grew $10
billion or 14.2% to $80.1 billion year-over-year, including
diversified, double-digit growth at both Optum and
UnitedHealthcare.
- First quarter 2022 earnings from operations were $7 billion and
adjusted net earnings were $5.49 per share. Year-over-year earnings
growth was led by Optum Health, due to its positive impact for
patients and the accelerating expansion of its value-based care
delivery initiatives.
- The first quarter 2022 medical care ratio was 82% compared to
80.9% last year, due to COVID effects and business mix. Favorable
medical reserve development of $290 million compared to $1 billion
in the year ago first quarter. Days claims payable were 49.1,
compared to 46.8 in the fourth quarter 2021 and 49.8 in the first
quarter 2021.
- The first quarter 2022 operating cost ratio of 14.2% decreased
from 14.6% in 2021 due to COVID effects and continued productivity
advances, partially offset by business mix and the investments the
Company continues to make to accelerate and support future growth
opportunities.
- Cash flows from operations for the first quarter 2022 were $5.3
billion or 1-times net income. The Company returned $3.9 billion to
shareholders in the first quarter through dividends and share
repurchases. Return on equity of 27.8% in the quarter reflected the
Company’s consistent and diverse earnings profile and efficient
capital structure.
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,
2022
March 31,
2021
December 31,
2021
Revenues
$62.6 billion
$55.1 billion
$56.4 billion
Earnings from Operations
$ 3.8 billion
$ 4.1 billion
$ 2.1 billion
Operating Margin
6.1%
7.5%
3.8%
- UnitedHealthcare first quarter revenues of $62.6 billion grew
$7.5 billion or 13.6% year-over-year reflecting broad-based
growth.
- In the first quarter of 2022, UnitedHealthcare grew to serve
1.5 million more people than a year ago, led by continued strong
growth in Medicare Advantage and Dual Special Needs Plans and in
the broader Medicaid market. UnitedHealthcare’s expanding portfolio
of innovative, new offerings for people served by commercial
benefits, including physician-led, consumer-tailored and
virtual-first products, grew by 350,000 people over the past
year.
- First quarter 2022 operating earnings were $3.8 billion
compared to $4.1 billion last year, reflecting strong growth in
people served and revenue, and continued effective medical and
operating cost management. The year ago result reflects the effects
of pandemic-disrupted care patterns.
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, technology and clinical
insights, Optum helps improve overall health system performance:
optimizing care quality, reducing care costs and improving the
consumer experience.
Quarterly Financial Performance
Three
Months Ended
March 31,
2022
March 31,
2021
December 31,
2021
Revenues
$43.3 billion
$36.4 billion
$41.1 billion
Earnings from Operations
$ 3.2 billion
$ 2.6 billion
$ 3.4 billion
Operating Margin
7.3%
7.2%
8.3%
- Optum first quarter revenues grew 18.9% to $43.3 billion and
operating earnings grew 19.8% to $3.2 billion.
- Optum Health revenue per consumer served increased 33% over the
year ago quarter, driven by growth of people served under
value-based care arrangements. Optum Health now expects to serve
600,000 new patients under such arrangements in 2022 compared to
its initial outlook of 500,000. The results reflect the continued
expansion of care services offered, with at-home and digital
offerings complementing and integrating with growing clinic-based
and outpatient services, including ambulatory surgical care.
- Optum Insight’s revenue backlog increased by $2 billion to
$22.8 billion compared to a year ago, driven by strong growth and
execution in its expanding comprehensive managed services offerings
for health systems. The breadth of services offered by Optum
Insight continues to advance in areas such as payment integrity,
digital modernization and care coordination.
- Optum Rx’s robust revenue growth of 11% in the first quarter
reflects continued advancements in serving new, large health plan
clients and further expansion of community-behavioral, specialty
pharmacy and e-commerce services. Adjusted scripts grew to 352
million compared to 329 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 @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 Investor
Relations page of the company’s website
(www.unitedhealthgroup.com). Following the call, a webcast replay
will be available on the same site through April 28, 2022. The
conference call replay can also be accessed by dialing
1-888-203-1112, Conference Code: 3063505. This earnings release and
the Form 8-K dated April 14, 2022, 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 law. 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: risks associated with
public health crises, large-scale medical emergencies and
pandemics, such as the COVID-19 pandemic; 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; the DOJ’s legal action relating to the
risk adjustment submission matter; our ability to maintain and
achieve improvement in quality scores impacting revenue; 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; failure to
maintain effective and efficient information systems or if our
technology products do not operate as intended; cyberattacks, other
privacy/data security incidents, or our failure to comply with
related regulations; failure to protect proprietary rights to our
databases, software and related products; risks and uncertainties
associated with our businesses providing pharmacy care services;
competitive pressures, including our ability to develop and deliver
innovative products to health care payers and expand access to
virtual care; changes in or challenges to our public sector
contract awards; failure to develop and maintain satisfactory
relationships with health care payers, physicians, hospitals and
other service providers; failure to attract, develop, retain, and
manage the succession of key employees and executives; the impact
of potential changes in tax laws and regulations (including any
increase in the U.S. income tax rate applicable to corporations);
failure to achieve targeted operating cost productivity
improvements; increases in costs and other liabilities associated
with litigation, government investigations, audits or reviews;
failure to manage successfully our strategic alliances or complete
or receive anticipated benefits of strategic transactions;
fluctuations in foreign currency exchange rates; downgrades in our
credit ratings; our investment portfolio performance; impairment of
our goodwill and intangible assets; and our ability to obtain
sufficient funds from our regulated subsidiaries or from external
financings to fund our obligations, 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, 2022 - 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 Measure
UNITEDHEALTH
GROUP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data) (unaudited)
Three Months EndedMarch 31,
2022
2021
Revenues Premiums
$
64,070
$
55,486
Products
9,340
8,340
Services
6,372
5,918
Investment and other income
367
452
Total revenues
80,149
70,196
Operating costs Medical costs
52,523
44,904
Operating costs
11,401
10,223
Cost of products sold
8,487
7,572
Depreciation and amortization
788
758
Total operating costs
73,199
63,457
Earnings from operations
6,950
6,739
Interest expense
(433
)
(397
)
Earnings before income taxes
6,517
6,342
Provision for income taxes
(1,369
)
(1,364
)
Net earnings
5,148
4,978
Earnings attributable to noncontrolling interests
(121
)
(116
)
Net earnings attributable to UnitedHealth
Group common shareholders
$
5,027
$
4,862
Diluted earnings per share attributable to
UnitedHealth Group common shareholders
$
5.27
$
5.08
Adjusted earnings per share attributable to
UnitedHealth Group common shareholders (a)
$
5.49
$
5.31
Diluted weighted-average common shares outstanding
954
957
(a) See page 6 for a
reconciliation of the non-GAAP measure
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED BALANCE
SHEETS (in millions) (unaudited)
March 31,
December 31,
2022
2021
Assets Cash and short-term investments
$
28,396
$
23,907
Accounts receivable, net
18,871
14,216
Other current assets
21,762
23,635
Total current assets
69,029
61,758
Long-term investments
42,353
43,114
Other long-term assets
109,856
107,334
Total assets
$
221,238
$
212,206
Liabilities, redeemable
noncontrolling interests and equity Medical costs
payable
$
28,676
$
24,483
Short-term borrowings and current maturities of long-term debt
6,697
3,620
Other current liabilities
52,797
50,189
Total current liabilities
88,170
78,292
Long-term debt, less current maturities
40,796
42,383
Other long-term liabilities
14,625
15,052
Redeemable noncontrolling interests
1,519
1,434
Equity
76,128
75,045
Total liabilities, redeemable noncontrolling
interests and equity
$
221,238
$
212,206
UNITEDHEALTH GROUP CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in millions) (unaudited)
Three Months EndedMarch 31,
2022
2021
Operating Activities Net earnings
$
5,148
$
4,978
Noncash items: Depreciation and amortization
788
758
Deferred income taxes and other
178
286
Share-based compensation
299
256
Net changes in operating assets and liabilities
(1,094
)
(273
)
Cash flows from operating activities
5,319
6,005
Investing Activities Purchases of
investments, net of sales and maturities
(1,632
)
(1,714
)
Purchases of property, equipment and capitalized software
(555
)
(568
)
Cash paid for acquisitions, net
(1,231
)
(1,193
)
Other, net
(255
)
(232
)
Cash flows used for investing activities
(3,673
)
(3,707
)
Financing Activities Common share
repurchases
(2,500
)
(1,650
)
Dividends paid
(1,363
)
(1,181
)
Net change in short-term borrowings and long-term debt
2,048
2,907
Other, net
4,119
711
Cash flows from financing activities
2,304
787
Effect of exchange rate changes on cash and cash
equivalents
157
(51
)
Increase in cash and cash equivalents
4,107
3,034
Cash and cash equivalents, beginning of period
21,375
16,921
Cash and cash equivalents, end of period
$
25,482
$
19,955
UNITEDHEALTH GROUP SUPPLEMENTAL FINANCIAL INFORMATION -
BUSINESSES (in millions, except percentages) (unaudited)
Three Months EndedMarch 31,
2022
2021
Revenues UnitedHealthcare
$
62,595
$
55,114
Optum
43,259
36,384
Eliminations
(25,705
)
(21,302
)
Total consolidated revenues
$
80,149
$
70,196
Earnings from Operations
UnitedHealthcare
$
3,798
$
4,108
Optum (a)
3,152
2,631
Total consolidated earnings from operations
$
6,950
$
6,739
Operating Margin UnitedHealthcare
6.1
%
7.5
%
Optum
7.3
%
7.2
%
Consolidated operating margin
8.7
%
9.6
%
Revenues UnitedHealthcare
Employer & Individual - Domestic
$
15,822
$
14,632
UnitedHealthcare Employer & Individual - Global
2,133
2,035
UnitedHealthcare Employer & Individual - Total
17,955
16,667
UnitedHealthcare Medicare & Retirement
29,100
25,474
UnitedHealthcare Community & State
15,540
12,973
Optum Health
$
16,682
$
12,403
Optum Insight
3,219
2,852
Optum Rx
23,911
21,604
Optum eliminations
(553
)
(475
)
(a) Earnings from operations for Optum for the three
months ended March 31, 2022 and 2021 included $1,366 and $962 for
Optum Health; $847 and $779 for Optum Insight; and $939 and $890
for Optum Rx, respectively.
UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS
UNITEDHEALTHCARE CUSTOMER PROFILE (in thousands)
People Served March 31,2022 December
31,2021 March 31,2021 Commercial - Domestic:
Risk-based
7,950
7,985
7,860
Fee-based
18,460
18,595
18,455
Total Commercial - Domestic
26,410
26,580
26,315
Medicare Advantage
6,890
6,490
6,335
Medicaid
7,810
7,655
6,975
Medicare Supplement (Standardized)
4,355
4,395
4,390
Total Community and Senior
19,055
18,540
17,700
Total UnitedHealthcare - Domestic Medical
45,465
45,120
44,015
Commercial - Global
5,500
5,510
5,460
Total UnitedHealthcare - Medical
50,965
50,630
49,475
Supplemental Data Medicare Part D
stand-alone
3,360
3,700
3,795
OPTUM PERFORMANCE METRICS March
31,2022 December 31,2021 March
31,2021 Optum Health Consumers Served (in
millions)
100
100
99
Optum Insight Contract Backlog (in billions)
$
22.8
$
22.4
$
20.8
Optum Rx Quarterly Adjusted Scripts (in millions)
352
353
329
Note: UnitedHealth Group served 148 million unique individuals
across all businesses at March 31, 2022.
UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (in millions,
except per share data) (unaudited)
ADJUSTED NET EARNINGS
PER SHARE(a) Three Months EndedMarch 31,
ProjectedYear EndedDecember 31,
2022
2021
2022
GAAP net earnings attributable to UnitedHealth Group common
shareholders
$
5,027
$
4,862
$19,250 - $19,825 Intangible amortization
281
294
~1,130 Tax effect of intangible amortization
(69
)
(71
)
~(280) Adjusted net earnings attributable to UnitedHealth Group
common shareholders
$
5,239
$
5,085
$20,100 - $20,675 GAAP diluted earnings per share
$
5.27
$
5.08
$20.30 - $20.80 Intangible amortization per share
0.29
0.31
~1.20 Tax effect per share of intangible amortization
(0.07
)
(0.08
)
~(0.30) Adjusted diluted earnings per share
$
5.49
$
5.31
$21.20 - $21.70 (a) Adjusted net earnings per share
is a non-GAAP financial measure. 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. As amortization fluctuates based on
the size and timing of the Company’s acquisition activity,
management believes this exclusion provides 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220414005287/en/
Investor Contact: Zack Sopcak Senior Vice President
952-936-7215 zack.sopcak@uhg.com Media Contact: Matt Stearns
Senior Vice President 202-276-0085 matt.stearns@uhg.com
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