Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Elevance Health Reports First Quarter 2023 Results

  • First quarter GAAP net income was $8.30 per share, including net negative adjustment items of $1.16 per share. Adjusted net income was $9.46* per share.
  • Operating revenue grew 10.6% year-over-year to $41.9 billion
  • Operating gain grew 16.6% year-over-year to $2.8 billion
  • Medical enrollment increased 1.3 million members year-over-year to 48.1 million members
  • Second quarter 2023 dividend of $1.48 per share declared to shareholders

Elevance Health, Inc. (NYSE: ELV) reported first quarter 2023 results reflecting strong financial performance, including double-digit growth in revenue, operating earnings, and adjusted earnings per share.

“Elevance Health is off to a strong start in 2023, driven by our continued focus on whole health and advancing health beyond healthcare,” said Gail K. Boudreaux, President and CEO. “Through our diverse and expanding offering of products and solutions, and our alignment with high-performing, value-based care providers, we continue to meet the needs of consumers, customers and the communities we serve, advancing our strategy of becoming a lifetime, trusted health partner.”

Given the strong start to the year and the momentum in each of our primary businesses, we now expect GAAP net income to be greater than $29.50 per share in 2023, and adjusted net income to be greater than $32.70 per share.

*Refer to GAAP reconciliation tables.

CONSOLIDATED HIGHLIGHTS

Earnings Per Share: GAAP net income was $8.30 per share in the first quarter, including net negative adjustment items of $1.16 per share. Adjusted net income was $9.46* per share.

*Please refer to the GAAP reconciliation tables.

Membership: Medical membership totaled approximately 48.1 million as of March 31, 2023, an increase of 1.3 million, or 2.9 percent year-over-year, driven primarily by growth in Medicaid, commercial fee-based, Medicare Advantage and ACA health plan members, partially offset by attrition in our employer group risk-based business.

During the first quarter of 2023, medical membership increased by 593 thousand driven by organic growth in Medicaid and commercial fee-based members.

Operating Revenue: Operating revenue was $41.9 billion in the first quarter of 2023, an increase of $4.0 billion, or 10.6 percent year-over-year. The increase was primarily driven by higher premium revenue due to membership growth in Medicaid and Medicare Advantage, as well as premium rate increases in our Health Benefits business. The increase in operating revenue was further attributable to growth in pharmacy product revenue within CarelonRx driven by growth in members served and script volume.

Benefit Expense Ratio: The benefit expense ratio was 85.8 percent in the first quarter of 2023, a decrease of 30 basis points year-over-year. The decrease was driven by our commercial risk-based health plans.

Medical claims reserves established at December 31, 2022 developed in line with the Company’s expectations as of the first quarter of 2023.

Days in Claims Payable: Days in Claims Payable was 46.0 days as of March 31, 2023, a decrease of 1.5 days from December 31, 2022 and a decrease of 0.9 days compared to March 31, 2022.

Operating Expense Ratio: The operating expense ratio was 11.5 percent in the first quarter of 2023, unchanged from 11.5 percent in the first quarter of 2022.

Operating Cash Flow: Operating cash flow was approximately $6.5 billion, including the early receipt of April's premium payments from CMS. Excluding that item, operating cash flow would have been $3.5 billion, or 1.7 times net income in the first quarter of 2023, an increase of $963 million as compared to the prior year quarter. The year-over-year increase was driven by favorable working capital changes and growth in net income.

Share Repurchase Program: During the first quarter of 2023, the Company repurchased 1.3 million shares of its common stock for $622 million, at a weighted average price of $476.66. As of March 31, 2023, the Company had approximately $6.3 billion of Board-approved share repurchase authorization remaining.

Cash Dividend: During the first quarter of 2023, the Company paid a quarterly dividend of $1.48 per share, representing a distribution of cash totaling $351 million.

On April 18, 2023, the Audit Committee of the Company's Board of Directors declared a second quarter 2023 dividend to shareholders of $1.48 per share. The second quarter dividend is payable on June 23, 2023, to shareholders of record at the close of business on June 9, 2023.

Investment Portfolio & Capital Position: During the first quarter of 2023, the Company recorded net losses of $113 million. During the first quarter of 2022, the Company recorded net losses of $151 million. These amounts are excluded from adjusted earnings per share.

As of March 31, 2023, the Company’s net unrealized loss position in the investment portfolio was $1.8 billion, consisting primarily of fixed maturity securities. As of March 31, 2023, cash and investments at the parent company totaled approximately $1.1 billion.

REPORTABLE SEGMENTS

Elevance Health has four reportable segments: Health Benefits, the aggregation of our Commercial & Specialty Business and Government Business (comprised of Individual, Employer Group risk-based, Employer Group fee-based, BlueCard businesses, Medicaid, Medicare, and Federal Health Products & Services businesses); CarelonRx (formerly IngenioRx); Carelon Services (formerly known as Diversified Business Group); and Corporate & Other (comprised of businesses that do not individually meet the quantitative thresholds for an operating division as well as corporate expenses not allocated to our other reportable segments).

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Elevance Health, Inc.

 

 

 

 

Reportable Segment Highlights

 

 

 

 

(Unaudited)

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

(In millions)

   

Three Months Ended March 31

 

 

 

 

 

 

   

2023

 

2022

 

Change

 

 

 

(Restated)

 

 

 

Operating Revenue

   

 

 

 

 

 

 

 

 

 

 

Health Benefits

   

$37,280

 

$34,027

 

9.6 %

 

 

 

 

 

Carelon1

   

11,336

 

9,631

 

17.7 %

 

 

 

 

 

Corporate & Other

   

251

 

273

 

(8.1) %

 

 

 

 

 

Eliminations

   

(6,969)

 

(6,045)

 

15.3 %

 

 

 

 

 

Total Operating Revenue2

   

$41,898

 

$37,886

 

10.6 %

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Operating Gain (Loss)

   

 

 

 

 

 

 

 

 

 

Health Benefits

   

$2,159

 

$1,851

 

16.6 %

 

 

 

 

 

Carelon1

   

721

 

598

 

20.6 %

 

 

 

 

 

Corporate & Other

   

(49)

 

(22)

 

NM3

 

 

 

 

 

Total Operating Gain2

   

$2,831

 

$2,427

 

16.6 %

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

 

 

Operating Margin

   

 

 

 

 

 

 

 

 

 

Health Benefits

   

5.8 %

 

5.4 %

 

40 bp

 

 

 

 

 

Carelon1

   

6.4 %

 

6.2 %

 

20 bp

 

 

 

 

 

Total Operating Margin2

   

6.8 %

 

6.4 %

 

40 bp

 

 

 

 

 

 

   

 

 

 

 

 

 

 

 

  1. Operating Revenue and Operating Gain for Carelon for the three months ended March 31, 2023 included $8,024 and $512 for CarelonRx; $3,312 and $209 for Carelon Services, respectively. Operating Revenue and Operating Gain for Carelon for the three months ended March 31, 2022 included $6,683 and $398 for CarelonRx; $2,948 and $200 for Carelon Services, respectively.
  2. See “Basis of Presentation.”
  3. "NM" = calculation not meaningful.

Health Benefits: Operating gain in the Health Benefits segment totaled $2,159 million in the first quarter of 2023, an increase of $308 million from $1,851 million in the first quarter of 2022. The increase was primarily driven by premium rate adjustments to more accurately reflect our post-pandemic cost structure and membership growth in Medicaid.

Carelon: Operating gain in the Carelon segment was $721 million in the first quarter of 2023, an increase of $123 million from $598 million in the first quarter of 2022. The increase was primarily driven by higher prescription volumes associated with growth in integrated medical and standalone pharmacy customers, improved performance in our care delivery business, and the expansion of our post-acute care business.

Corporate & Other: The Company reported an operating loss of $49 million in the Corporate & Other segment for the first quarter of 2023, a decrease of $27 million from an operating loss of $22 million in the first quarter of 2022, driven by an increase in unallocated corporate expenses.

Basis of Presentation

  1. Operating revenue and operating gain/loss are the key measures used by management to evaluate performance in each of its reporting segments, allocate resources, set incentive compensation targets and to forecast future operating performance. Operating gain/loss is calculated as total operating revenue less benefit expense, cost of products sold and operating expense. It does not include net investment income, net gains/losses on financial instruments, interest expense, amortization of other intangible assets, gains/losses on extinguishment of debt or income taxes, as these items are managed in a corporate shared service environment and are not the responsibility of operating segment management. Refer to the GAAP reconciliation tables.
  2. Operating margin is defined as operating gain divided by operating revenue.

Conference Call and Webcast

Management will host a conference call and webcast today at 8:30 a.m. Eastern Daylight Time (“EDT”) to discuss the company’s first quarter results and outlook. The conference call should be accessed at least 15 minutes prior to the start of the call with the following numbers:

888-947-9963 (Domestic)

   

866-361-4942 (Domestic Replay)

312-470-0178 (International)

   

203-369-0190 (International Replay)

The access code for today's conference call is 3972058. There is no access code for the replay. The replay will be available from 11:30 a.m. EDT today, until the end of the day on May 19, 2023. The call will also be available through a live webcast at www.elevancehealth.com under the “Investors” link. A webcast replay will be available following the call.

About Elevance Health, Inc.

Elevance Health is a lifetime, trusted health partner fueled by its purpose to improve the health of humanity. The company supports consumers, families, and communities across the entire care journey – connecting them to the care, support, and resources they need to lead healthier lives. Elevance Health’s companies serve more than 118 million people through a diverse portfolio of industry-leading medical, digital, pharmacy, behavioral, clinical, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on Twitter and Elevance Health on LinkedIn.

Elevance Health, Inc.

Membership and Other Metrics

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change from

Medical Membership (in thousands)

March 31,

2023

 

March 31,

2022

 

December 31,

2022

 

March 31,

2022

 

December 31,

2022

Individual

942

 

818

 

789

 

15.2 %

 

19.4 %

Employer Group Risk-Based

3,798

 

4,028

 

3,988

 

(5.7) %

 

(4.8) %

Commercial Risk-Based

4,740

 

4,846

 

4,777

 

(2.2) %

 

(0.8) %

BlueCard®

6,607

 

6,370

 

6,462

 

3.7 %

 

2.2 %

Employer Group Fee-Based

20,278

 

20,148

 

20,174

 

0.6 %

 

0.5 %

Commercial Fee-Based

26,885

 

26,518

 

26,636

 

1.4 %

 

0.9 %

Medicare Advantage

2,053

 

1,921

 

1,977

 

6.9 %

 

3.8 %

Medicare Supplement

925

 

939

 

947

 

(1.5) %

 

(2.3) %

Total Medicare

2,978

 

2,860

 

2,924

 

4.1 %

 

1.8 %

Medicaid

11,889

 

10,919

 

11,571

 

8.9 %

 

2.7 %

Federal Employees Health Benefits

1,632

 

1,632

 

1,623

 

— %

 

0.6 %

Total Medical Membership

48,124

 

46,775

 

47,531

 

2.9 %

 

1.2 %

Other Membership (in thousands)

 

 

 

 

 

 

 

 

 

Life and Disability Members

4,771

 

4,679

 

4,834

 

2.0 %

 

(1.3) %

Dental Members

6,743

 

6,649

 

6,692

 

1.4 %

 

0.8 %

Dental Administration Members

1,697

 

1,588

 

1,586

 

6.9 %

 

7.0 %

Vision Members

9,904

 

9,211

 

9,813

 

7.5 %

 

0.9 %

Medicare Part D Standalone Members

264

 

279

 

271

 

(5.4) %

 

(2.6) %

Other Metrics (in millions)

 

 

 

 

 

 

 

 

 

CarelonRx Quarterly Adjusted Scripts

75.7

 

73.0

 

82.0

 

3.7 %

 

(7.7) %

Carelon Services Consumers Served

104.0

 

104.0

 

105.0

 

— %

 

(1.0) %

Elevance Health, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

(In millions, except per share data)

 

Three Months Ended

March 31

 

 

 

 

2023

 

2022

 

Change

 

 

 

 

(Restated)

 

 

Revenues

 

 

 

 

 

 

Premiums

 

$

35,868

 

 

$

32,785

 

 

9.4 %

Product revenue

 

 

4,022

 

 

 

3,301

 

 

21.8 %

Service fees

 

 

2,008

 

 

 

1,800

 

 

11.6 %

Total operating revenue

 

 

41,898

 

 

 

37,886

 

 

10.6 %

Net investment income

 

 

387

 

 

 

360

 

 

7.5 %

Net losses on financial instruments

 

 

(113

)

 

 

(151

)

 

NM

Total revenues

 

 

42,172

 

 

 

38,095

 

 

10.7 %

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Benefit expense

 

 

30,786

 

 

 

28,231

 

 

9.1 %

Cost of products sold

 

 

3,481

 

 

 

2,883

 

 

20.7 %

Operating expense

 

 

4,800

 

 

 

4,345

 

 

10.5 %

Interest expense

 

 

251

 

 

 

201

 

 

24.9 %

Amortization of other intangible assets

 

 

235

 

 

 

129

 

 

82.2 %

Total expenses

 

 

39,553

 

 

 

35,789

 

 

10.5 %

 

 

 

 

 

 

 

Income before income tax expense

 

 

2,619

 

 

 

2,306

 

 

13.6 %

 

 

 

 

 

 

 

Income tax expense

 

 

615

 

 

 

527

 

 

16.7 %

 

 

 

 

 

 

 

Net income

 

 

2,004

 

 

 

1,779

 

 

12.6 %

 

 

 

 

 

 

 

Net (income) loss attributable to noncontrolling interests

 

 

(15

)

 

 

10

 

 

NM

 

 

 

 

 

 

 

Shareholders' net income

 

$

1,989

 

 

$

1,789

 

 

11.2 %

 

 

 

 

 

 

 

Shareholders' net income per diluted share

 

$

8.30

 

 

$

7.32

 

 

13.4 %

 

 

 

 

 

 

 

Diluted shares

 

 

239.7

 

 

 

244.4

 

 

(1.9)%

 

 

 

 

 

 

 

Benefit expense as a percentage of premiums

 

 

85.8

%

 

 

86.1

%

 

(30)bp

Operating expense as a percentage of total operating revenue

 

 

11.5

%

 

 

11.5

%

 

— bp

Income before income tax expense as a percentage of total revenue

 

 

6.2

%

 

 

6.1

%

 

10 bp

 

"NM" = calculation not meaningful

 

Elevance Health, Inc.

Consolidated Balance Sheets

 

(In millions)

March 31,

2023

 

December 31,

2022

Assets

(Unaudited)

 

(Restated)

Current assets:

 

 

 

Cash and cash equivalents

$

10,142

 

 

$

7,387

 

Fixed maturity securities

 

27,636

 

 

 

25,952

 

Equity securities

 

392

 

 

 

953

 

Premium receivables

 

8,246

 

 

 

7,083

 

Self-funded receivables

 

3,786

 

 

 

4,663

 

Other receivables

 

4,678

 

 

 

4,298

 

Other current assets

 

4,943

 

 

 

5,281

 

Total current assets

 

59,823

 

 

 

55,617

 

 

 

 

 

Long-term investments:

 

 

 

Fixed maturity securities

 

783

 

 

 

752

 

Other invested assets

 

5,971

 

 

 

5,685

 

Property and equipment, net

 

4,418

 

 

 

4,316

 

Goodwill

 

25,273

 

 

 

24,383

 

Other intangible assets

 

10,915

 

 

 

10,315

 

Other noncurrent assets

 

1,857

 

 

 

1,687

 

Total assets

$

109,040

 

 

$

102,755

 

 

 

 

 

Liabilities and equity

 

 

 

Liabilities

 

 

 

Current liabilities:

 

 

 

Medical claims payable

$

15,728

 

 

$

15,596

 

Other policyholder liabilities

 

6,098

 

 

 

5,933

 

Unearned income

 

4,394

 

 

 

1,112

 

Accounts payable and accrued expenses

 

4,873

 

 

 

5,607

 

Short-term borrowings

 

265

 

 

 

265

 

Current portion of long-term debt

 

 

 

 

1,500

 

Other current liabilities

 

10,531

 

 

 

9,683

 

Total current liabilities

 

41,889

 

 

 

39,696

 

 

 

 

 

Long-term debt, less current portion

 

25,201

 

 

 

22,349

 

Reserves for future policy benefits

 

811

 

 

 

803

 

Deferred tax liabilities, net

 

2,029

 

 

 

2,015

 

Other noncurrent liabilities

 

1,650

 

 

 

1,562

 

Total liabilities

 

71,580

 

 

 

66,425

 

 

 

 

 

Shareholders’ equity

 

 

 

Common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

8,697

 

 

 

9,084

 

Retained earnings

 

30,707

 

 

 

29,647

 

Accumulated other comprehensive loss

 

(2,050

)

 

 

(2,490

)

Total shareholders’ equity

 

37,356

 

 

 

36,243

 

Noncontrolling interests

 

104

 

 

 

87

 

Total equity

 

37,460

 

 

 

36,330

 

Total liabilities and equity

$

109,040

 

 

$

102,755

 

Elevance Health, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

(In millions)

Three Months Ended March 31

 

 

2023

 

 

 

2022

 

 

 

 

(Restated)

Operating activities

 

 

 

Net income

$

2,004

 

 

$

1,779

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Net losses on financial instruments

 

113

 

 

 

151

 

Equity in net earnings of other invested assets

 

30

 

 

 

(153

)

Depreciation and amortization

 

462

 

 

 

358

 

Deferred income taxes

 

(255

)

 

 

(96

)

Share-based compensation

 

61

 

 

 

50

 

Changes in operating assets and liabilities:

 

 

 

Receivables, net

 

(29

)

 

 

(1,348

)

Other invested assets

 

(15

)

 

 

7

 

Other assets

 

(348

)

 

 

(350

)

Policy liabilities

 

306

 

 

 

1,092

 

Unearned income

 

3,282

 

 

 

57

 

Accounts payable and other liabilities

 

18

 

 

 

428

 

Income taxes

 

839

 

 

 

568

 

Other, net

 

1

 

 

 

(2

)

Net cash provided by operating activities

 

6,469

 

 

 

2,541

 

 

 

 

 

Investing activities

 

 

 

Purchases of investments

 

(7,443

)

 

 

(5,050

)

Proceeds from sale of investments

 

2,489

 

 

 

3,047

 

Maturities, calls and redemptions from investments

 

3,533

 

 

 

1,209

 

Changes in securities lending collateral

 

204

 

 

 

(441

)

Purchases of subsidiaries, net of cash acquired

 

(1,638

)

 

 

(61

)

Purchases of property and equipment

 

(301

)

 

 

(254

)

Other, net

 

(28

)

 

 

(28

)

Net cash used in investing activities

 

(3,184

)

 

 

(1,578

)

 

 

 

 

Financing activities

 

 

 

Net proceeds from commercial paper borrowings

 

325

 

 

 

225

 

Net proceeds from (repayments of) long-term borrowings

 

666

 

 

 

(14

)

Changes in securities lending payable

 

(205

)

 

 

441

 

Changes in bank overdrafts

 

(291

)

 

 

529

 

Repurchase and retirement of common stock

 

(622

)

 

 

(545

)

Cash dividends

 

(351

)

 

 

(309

)

Proceeds from issuance of common stock under employee stock plans

 

43

 

 

 

76

 

Taxes paid through withholding of common stock under employee stock plans

 

(98

)

 

 

(86

)

Other, net

 

2

 

 

 

5

 

Net cash (used in) provided by financing activities

 

(531

)

 

 

322

 

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

 

1

 

 

 

(4

)

 

 

 

 

Change in cash and cash equivalents

 

2,755

 

 

 

1,281

 

Cash and cash equivalents at beginning of period

 

7,387

 

 

 

4,880

 

 

 

 

 

Cash and cash equivalents at end of period

$

10,142

 

 

$

6,161

 

Elevance Health, Inc.

Reconciliation of Medical Claims Payable

 

 

Three Months Ended March 31

 

Years Ended December 31

 

 

2023

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2020

 

(In millions)

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross medical claims payable, beginning of period

$

15,348

 

 

$

13,282

 

 

$

13,282

 

 

$

11,135

 

 

$

8,647

 

Ceded medical claims payable, beginning of period

 

(6

)

 

 

(21

)

 

 

(21

)

 

 

(46

)

 

 

(33

)

Net medical claims payable, beginning of period

 

15,342

 

 

 

13,261

 

 

 

13,261

 

 

 

11,089

 

 

 

8,614

 

 

 

 

 

 

 

 

 

 

 

Business combinations and purchase adjustments

 

 

 

 

3

 

 

 

133

 

 

 

420

 

 

 

339

 

 

 

 

 

 

 

 

 

 

 

Net incurred medical claims:

 

 

 

 

 

 

 

 

 

Current year

 

30,751

 

 

 

28,064

 

 

 

113,414

 

 

 

100,440

 

 

 

85,094

 

Prior years redundancies(1)

 

(1,068

)

 

 

(933

)

 

 

(869

)

 

 

(1,703

)

 

 

(637

)

Total net incurred medical claims

 

29,683

 

 

 

27,131

 

 

 

112,545

 

 

 

98,737

 

 

 

84,457

 

 

 

 

 

 

 

 

 

 

 

Net payments attributable to:

 

 

 

 

 

 

 

 

 

Current year medical claims

 

19,948

 

 

 

17,116

 

 

 

98,997

 

 

 

88,156

 

 

 

74,629

 

Prior years medical claims

 

9,593

 

 

 

8,826

 

 

 

11,600

 

 

 

8,829

 

 

 

7,692

 

Total net payments

 

29,541

 

 

 

25,942

 

 

 

110,597

 

 

 

96,985

 

 

 

82,321

 

 

 

 

 

 

 

 

 

 

 

Net medical claims payable, end of period

 

15,484

 

 

 

14,453

 

 

 

15,342

 

 

 

13,261

 

 

 

11,089

 

Ceded medical claims payable, end of period

 

7

 

 

 

17

 

 

 

6

 

 

 

21

 

 

 

46

 

Gross medical claims payable, end of period

$

15,491

 

 

$

14,470

 

 

$

15,348

 

 

$

13,282

 

 

$

11,135

 

 

 

 

 

 

 

 

 

 

 

Current year medical claims paid as a percentage of current year net incurred medical claims

 

64.9

%

 

 

61.0

%

 

 

87.3

%

 

 

87.8

%

 

 

87.7

%

 

 

 

 

 

 

 

 

 

 

Prior year redundancies in the current year as a percentage of prior year net medical claims payable less prior year redundancies in the current year

 

7.5

%

 

 

7.6

%

 

 

7.0

%

 

 

18.1

%

 

 

8.0

%

 

 

 

 

 

 

 

 

 

 

Prior year redundancies in the current year as a percentage of prior year net incurred medical claims

 

0.9

%

 

 

0.9

%

 

 

0.9

%

 

 

2.0

%

 

 

0.8

%

 

 

 

 

 

 

 

 

 

 

(1) Negative amounts reported for net incurred medical claims related to prior years result from claims being settled for amounts less than originally estimated.

Elevance Health, Inc.

GAAP Reconciliation

(Unaudited)

Elevance Health, Inc. has referenced “Adjusted Net Income” and “Adjusted Net Income Per Share,” which are non-GAAP measures, in this document. These non-GAAP measures are not intended to be alternatives to any measure calculated in accordance with GAAP. In addition to these non-GAAP measures, references are made to the measures “Operating Revenue” and “Operating Gain.” Each of these measures is provided to further aid investors in understanding and analyzing the company’s core operating results and comparing Elevance Health, Inc.’s financial results. A reconciliation of Operating Revenue to Total Revenue is set forth in the Consolidated Statements of Income herein. A reconciliation of the non-GAAP measures to the most directly comparable measures calculated in accordance with GAAP, together with a reconciliation of reportable segments operating gain to income before income tax expense, is reported below. Prior amounts may be grouped differently to conform to current presentation.

 

Three Months Ended

March 31

 

 

(In millions, except per share data)

 

2023

 

 

 

2022

 

 

Change

Shareholders' net income - As reported

$

1,989

 

 

$

1,805

 

 

10.2

%

Impact of Accounting Standards Update 2018-12 Adoption

 

 

 

 

(16

)

 

 

Shareholders' net income - Restated

$

1,989

 

 

$

1,789

 

 

11.2

%

Add / (Subtract):

 

 

 

 

 

Net losses on financial instruments

 

113

 

 

 

151

 

 

 

Amortization of other intangible assets

 

235

 

 

 

129

 

 

 

Transaction and integration related costs

 

26

 

 

 

9

 

 

 

Litigation expenses

 

1

 

 

 

1

 

 

 

Tax impact of non-GAAP adjustments

 

(97

)

 

 

(78

)

 

 

Net adjustment items

 

278

 

 

 

212

 

 

 

Adjusted shareholders' net income

$

2,267

 

 

$

2,001

 

 

13.3

%

 

 

 

 

 

 

Shareholders' net income per diluted share - As reported

$

8.30

 

 

$

7.39

 

 

12.3

%

Impact of Accounting Standards Update 2018-12 Adoption

 

 

 

 

(0.07

)

 

 

Shareholders' net income per diluted share - Restated

 

8.30

 

 

 

7.32

 

 

13.4

%

Add / (Subtract):

 

 

 

 

 

Net losses on financial instruments

 

0.47

 

 

 

0.62

 

 

 

Amortization of other intangible assets

 

0.98

 

 

 

0.53

 

 

 

Transaction and integration related costs

 

0.11

 

 

 

0.04

 

 

 

Litigation expenses

 

 

 

 

 

 

 

Tax impact of non-GAAP adjustments

 

(0.40

)

 

 

(0.32

)

 

 

Net adjustment items

 

1.16

 

 

 

0.87

 

 

 

Adjusted shareholders' net income per diluted share

$

9.46

 

 

$

8.19

 

 

15.5

%

 

 

 

 

 

 

 

Full Year 2023 Outlook

 

 

Shareholders' net income per diluted share

Greater than $29.50

 

 

Add / (Subtract):

 

 

 

Net losses on financial instruments

$

0.47

 

 

 

Transaction and integration related costs

$

0.11

 

 

 

Amortization of other intangible assets

$

3.63

 

 

 

Tax impact of non-GAAP adjustments

Approximately $(1.01)

 

 

Net adjustment items

$

3.20

 

 

 

Adjusted shareholders' net income per diluted share

Greater Than $32.70

 

 

 

 

 

 

 

 

 

Three Months Ended March 31

 

 

(In millions)

 

2023

 

 

 

2022

 

 

Change

 

 

 

(Restated)

 

 

Income before income tax expense

$

2,619

 

 

$

2,306

 

 

13.6

%

Net investment income

 

(387

)

 

 

(360

)

 

 

Net losses on financial instruments

 

113

 

 

 

151

 

 

 

Interest expense

 

251

 

 

 

201

 

 

 

Amortization of other intangible assets

 

235

 

 

 

129

 

 

 

Reportable segments operating gain

$

2,831

 

 

$

2,427

 

 

16.6

%

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent required by law, we do not undertake to update or revise any forward-looking statements to reflect events or circumstances occurring after the date hereof. These risks and uncertainties include, but are not limited to: trends in healthcare costs and utilization rates; reduced enrollment; our ability to secure and implement sufficient premium rates; the impact of large scale medical emergencies, such as public health epidemics and pandemics, including COVID-19, and other catastrophes; the impact of new or changes in existing federal, state and international laws or regulations, including healthcare laws and regulations, or their enforcement or application; the impact of cyber-attacks or other privacy or data security incidents or breaches or our failure to comply with any privacy or security laws or regulations, including any investigations, claims or litigation related thereto; information technology disruptions; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services Star ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; our ability to contract with providers on cost-effective and competitive terms; failure to effectively maintain and modernize our information systems; risks associated with providing pharmacy, healthcare and other diversified products and services, including medical malpractice or professional liability claims and non-compliance by any party with the pharmacy services agreement between us and CaremarkPCS Health, L.L.C.; risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness and the risk that increased interest rates or market volatility could impact our access to or further increase the cost of financing; a downgrade in our financial strength ratings; the effects of any negative publicity related to the health benefits industry in general or us in particular; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; intense competition to attract and retain employees; risks associated with our international operations; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.