Press Release

Centene Announces Preliminary 2015 Financial Results
-- REAFFIRMS 2016 FINANCIAL GUIDANCE --

ST. LOUIS, Jan. 26, 2016 /PRNewswire/ -- Centene Corporation (NYSE: CNC) today announced that it expects 2015 earnings per diluted share (excluding Health Net merger related costs) to exceed its previously announced range of $2.90 to $2.94.  Preliminary unaudited financial information from continuing operations for the fourth quarter and full year 2015 is as follows:

2015 Results


Q4


Full Year


Premium and Service Revenues (in billions)

$

5.9


$

21.3


Total Revenues (in billions)

$

6.3


$

22.8


Diluted earnings per share (EPS)

$

0.91


$

2.89


Diluted EPS excluding Health Net merger related expenses

$

0.95


$

3.03


The Company also reaffirms its 2016 guidance that was previously announced at its Investor Day in New York on December 18, 2015.  For 2016 guidance purposes, the Company is providing combined guidance for Centene and Health Net and has assumed the Health Net transaction closes on February 1, 2016.  The Health Net transaction remains subject to regulatory approval and the Company continues to expect the transaction to close early in 2016.   The guidance amounts are subject to adjustment, dependent on the actual closing date and financing terms.

For its 2016 fiscal year, the Company expects the following results from continuing operations (assuming a February 1, 2016 closing date):

  • Total revenues in the range of $41.2 billion to $42.0 billion.
  • GAAP earnings per diluted share of approximately $2.85 to $3.15.
  • Adjusted earnings per diluted share of approximately $4.10 to $4.40.

Adjusted earnings per diluted share excludes approximately $0.65 to $0.70 per diluted share of Health Net merger related expenses and total intangible amortization associated with acquisitions of $0.55 to $0.60 per diluted share.

On January 25, 2016, the Company announced an ongoing comprehensive internal search for six hard drives that are unaccounted for in its inventory of approximately 26,000 information technology (IT) devices.  This incident resulted from an employee not following established procedures on storing IT hardware.  While we cannot estimate the impact with certainty at this time, the Company does not expect the impact of the incident to have a material effect on its future growth opportunities, financial position, cash flow or results of operations.

Investor Call

The Company will release its full 2015 fourth quarter and year-end financial results at approximately 6:00 AM (Eastern Time) on Tuesday, February 9, 2016, and host a conference call afterwards at approximately 8:30 AM (Eastern Time) to review the results.

Investors and other interested parties are invited to listen to the conference call by dialing 1-877-883-0383 in the U.S. and Canada; +1-412-902-6577 from abroad, including the following Elite Entry Number: 1765464 to expedite caller registration; or via a live, audio webcast on the Company's website at www.centene.com, under the Investors section.  A webcast replay will be available for on-demand listening shortly after the completion of the call for the next twelve months or until 11:59 PM (Eastern Time) on Tuesday, February 9, 2017, at the aforementioned URL. In addition, a digital audio playback will be available until 9:00 AM Eastern Time on Tuesday, February 16, 2016, by dialing 1-877-344-7529 in the U.S. and Canada, or +1-412-317-0088 from abroad, and entering access code 10078696.

Non-GAAP Financial Presentation

The Company is  providing certain non-GAAP financial measures in this release as the Company  believes that these figures are helpful in allowing individuals to more  accurately assess the ongoing nature of the Company's operations and measure  the Company's performance more consistently. The Company uses the presented  non-GAAP financial measures internally to allow management to focus on  period-to-period changes in the Company's core business operations. Therefore,  the Company believes that this information is meaningful in addition to the  information contained in the GAAP presentation of financial information. The  presentation of this additional non-GAAP financial information is not intended  to be considered in isolation or as a substitute for the financial information  prepared and presented in accordance with GAAP.

About Centene Corporation

Centene Corporation, a Fortune  500 company, is a diversified, multi-national healthcare enterprise that  provides a portfolio of services to government sponsored healthcare programs,  focusing on under-insured and uninsured individuals.  Many receive  benefits provided under Medicaid,  including the State Children's Health Insurance Program (CHIP), as well as  Aged, Blind or Disabled (ABD), Foster  Care and Long Term Care (LTC), in  addition to other state-sponsored/hybrid programs, and Medicare.  The  Company operates local health plans and offers a range of health insurance  solutions.  It also contracts with other healthcare and commercial  organizations to provide specialty services including behavioral health  management, care management software, correctional healthcare services, dental  benefits management, in-home health services, life and health management,  managed vision, pharmacy benefits management, specialty pharmacy and telehealth  services.

Centene uses its investor relations website to  publish important information about the Company, including information that may  be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible  on Centene's investor relations website, http://www.centene.com/investors.

The  preliminary financial information included in this press release may differ  from actual results. Actual results remain subject to the completion of  management’s and the audit committee’s final review, as well as the year-end  audit by our independent registered public accountants. During the course of  the preparation of the financial statements and related notes and our year-end  audit, additional items that would require material adjustments to the  preliminary financial information included in this press release may be  identified.

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, Health Net'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 the ultimate closing  date of proposed merger with Health Net (Proposed Merger); the possibility that  the expected synergies and value creation from the Proposed Merger will not be  realized, or will not be realized with the expected time period; the risk that  acquired businesses will not be integrated successfully; disruption from the  Proposed Merger making it more difficult to maintain business and operational  relationships; the risk that unexpected costs related to the Proposed Merger  will be incurred; the possibility that the Proposed Merger does not close,  including, but not limited to, due to the failure to satisfy the closing  conditions thereto; the risk that financing for the Proposed Merger may not be  available on favorable terms; and the risk that the required regulatory  approvals are not obtained, on a timely basis or otherwise, or are obtained  subject to conditions that are not anticipated.   Additional factors include, but are not limited to, Centene's or Health  Net's ability to accurately predict and effectively manage health benefits and  other operating expenses and reserves; competition; membership and revenue  projections; timing of regulatory contract approval; changes in healthcare  practices; changes in federal or state laws or regulations, including the  Patient Protection and Affordable Care Act and the Health Care and Education  Affordability Reconciliation Act and any regulations enacted thereunder;  changes in expected contract start dates; changes in expected closing dates,  estimated purchase price and accretion for acquisitions, including our Proposed  Merger; inflation; foreign currency fluctuations; provider and state contract  changes; new technologies; advances in medicine; 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 our or Health Net's managed care contracts by federal or state  governments (including but not limited to Medicare and Medicaid); the outcome  of our or Health Net's pending legal proceedings; availability of debt and  equity financing, on terms that are favorable to us; and changes in economic,  political and market conditions; as well as those factors disclosed in the  Company's and Health Net’s publicly filed documents.

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 and the joint proxy statement/prospectus we filed on Form S-4 on  September 21, 2015.

 

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SOURCE Centene Corporation

Investor Relations Inquiries, Edmund E. Kroll, Jr., Senior Vice President, Finance & Investor Relations, (212) 759-0382; or Media Inquiries, Marcela Manjarrez-Hawn, Senior Vice President and Chief Communications Officer, (314) 725-4477