Centene Corporation Announces 2010 Financial Guidance
January 08 2010 - 6:00AM
PR Newswire (US)
ST. LOUIS, Jan. 8 /PRNewswire-FirstCall/ -- Centene Corporation
(NYSE: CNC) announced today its 2010 financial guidance. As
previously disclosed in our December 10, 2009 press release, the
discussions below reflect anticipated start-up costs associated
with the new Mississippi contract, announced pharmacy carve-outs in
Indiana and Ohio, and the impact of January 2010 rate changes; but
do not reflect the potential impact of federal healthcare reform.
In addition, as a result of the Company's previously announced
agreement to sell certain assets of its New Jersey health plan,
University Health Plans, Inc., the New Jersey operations are
classified as discontinued operations and have been excluded from
the guidance provided. All discussions below are in the context of
continuing operations, unless otherwise stated. For its 2010 fiscal
year, the Company expects: -- Premium and Service revenue in the
range of $4.35 billion to $4.45 billion. -- Earnings per diluted
share of approximately $1.90 to $2.00. -- Consolidated Health
Benefits Ratio, net of premium taxes, of approximately 84% to 86%
which reflects membership mix changes, the previously-mentioned
drug carve-outs, and the rate environment. -- Higher than normal
costs associated with H1N1 and traditional flu strains. --
Consolidated G&A expense ratio in the range of 12.4% to 12.9%,
net of premium taxes. -- Effective tax rate of approximately 37%
and diluted shares outstanding of approximately 45 million. -- Days
in claims payable between 45 and 50 days reflecting the inclusion
of pharmacy claims payable (which was not included in prior
periods), offset by faster claims processing as a result of
operational improvements. Centene reaffirms its 2009 financial
guidance in the previously announced ranges. Full year 2009
earnings will be reported on February 9th, 2010, with the
conference call at 8:30 AM (Eastern Time). Centene will host a
conference call today at 8:30 AM (Eastern Time) to discuss the
details of its guidance. Michael F. Neidorff, Chairman and Chief
Executive Officer, and William N. Scheffel, Executive Vice
President, Chief Financial Officer and Treasurer, of Centene
Corporation will lead the call. Investors and other interested
parties are invited to listen to the conference call by dialing
800-273-1254 in the U.S. and Canada, 973-638-3440 from abroad, or
via a live Internet broadcast on the Company's website at
http://www.centene.com/, under the Investor Relations section. A
replay will be available for on-demand listening shortly after the
completion of the call until 11:59 PM (Eastern Time) on January 22,
2010, at the aforementioned URL, or by dialing 800-642-1687 in the
U.S. and Canada, or 706-645-9291 from abroad, and entering access
code 45124123. About Centene Corporation Centene Corporation is a
leading multi-line healthcare enterprise that provides programs and
related services to individuals receiving benefits under Medicaid,
including the Children's Health Insurance Program (CHIP), as well
as Aged, Blind, or Disabled (ABD), Foster Care, Long-Term Care and
Medicare (Special Needs Plans). The Company operates local health
plans and offers a range of health insurance solutions to
individuals and the rising number of uninsured Americans. It also
contracts with other healthcare and commercial organizations to
provide specialty services including behavioral health, life and
health management, managed vision, telehealth services, pharmacy
benefits management and medication adherence. Information regarding
Centene is available via the Internet at http://www.centene.com/.
The information provided in this press release contains
forward-looking statements that relate to future events and future
financial performance of Centene. Subsequent events and
developments may cause the Company's estimates to change. The
Company disclaims any obligation to update this forward-looking
financial information in the future. Readers are cautioned that
matters subject to forward-looking statements involve known and
unknown risks and uncertainties, including economic, regulatory,
competitive and other factors that may cause Centene's or its
industry's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. Actual results may
differ from projections or estimates due to a variety of important
factors, including Centene's ability to accurately predict and
effectively manage health benefits and other operating expenses,
competition, changes in healthcare practices, changes in federal or
state laws or regulations, inflation, provider contract changes,
new technologies, reduction in provider payments by governmental
payors, major epidemics, disasters and numerous other factors
affecting the delivery and cost of healthcare. The expiration,
cancellation or suspension of Centene's Medicaid Managed Care
contracts by state governments would also negatively affect
Centene. DATASOURCE: Centene Corporation CONTACT: Investor
Relations, Edmund E. Kroll, Jr., Senior Vice President, Finance
& Investor Relations, +1-212-759-0382, or Media Relations,
Deanne Lane, Senior Director, Media Affairs, +1-314-725-4477, both
of Centene Corporation Web Site: http://www.centene.com/
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