FOR
IMMEDIATE RELEASE
CENTENE
CORPORATION ANNOUNCES
2009
FINANCIAL GUIDANCE AND RELATED UPDATES
ST.
LOUIS, MISSOURI (December 19, 2008)—Centene Corporation (NYSE:
CNC) announced today its 2009 financial guidance. As a result of the
Company’s previously announced decision to exit from the New Jersey market,
operations of University Health Plans, Inc. will be 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 2009 fiscal year, the Company expects:
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Revenues
in the range of $3.650 billion to $3.775 billion, excluding premium
taxes.
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Earnings
per diluted share of approximately $1.82 to
$1.94.
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Consolidated
Health Benefits Ratio, net of premium taxes, which reflects medical costs
as a percentage of premium revenues, of approximately 82.0% to
84.0%.
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Consolidated
G&A expense ratio in the range of 13.0% to 13.5%, net of premium
taxes.
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Effective
tax rate of approximately 38.0% and diluted shares outstanding of
approximately 44.8 million.
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Eric R.
Slusser, Centene’s Chief Financial Officer, stated, “The 2009 financial guidance
anticipates the conversion of Florida membership to an at-risk health plan,
continued expansion of our South Carolina membership, full year contributions
from Texas Foster Care, Celtic and the new Arizona acute care contract and low
single digit rate increases.”
Centene
reaffirms its 2008 financial guidance in the previously announced ranges,
exclusive of any one time charges and reclassifications associated with the sale
of our New Jersey health plan. Full year 2008 earnings will be
reported on February 10th, 2009,
with the conference call at 8:30 AM (Eastern Time).
Separately,
Centene has received notification of approval to serve Florida Medicaid members
on a full-risk basis effective January 1, 2009. Sunshine State Health Plan, a
wholly-owned subsidiary of Centene, will begin to convert members from its joint
venture partner, Access Health Solutions, LLC, in the Tampa Bay and Miami-Dade
markets in the first quarter of 2009. Sunshine will collaborate with
the Florida Agency for Healthcare Administration and Access to expand its
geographic presence in Florida and transition the Access members to Sunshine
throughout 2009.
As
previously announced, Centene entered into two agreements with AMERIGROUP on
November 19, 2008 under which Centene would sell to AMERIGROUP certain assets in
New Jersey and would purchase from AMERIGROUP certain assets in South
Carolina. Closing of the transactions is contingent upon regulatory
approvals and satisfaction of other conditions. Since the
announcement of the transactions, issues have arisen that have required the
parties to discuss the satisfaction of certain closing
conditions. The parties are in discussions to resolve these matters
and it remains Centene’s objective to close both transactions.
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 Eric R. Slusser, Executive Vice President and Chief
Financial Officer, 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 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 2, 2009, 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 74434480.
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 State Children’s Health Insurance Program (SCHIP), 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 healthcare solutions for the rising number of uninsured
Americans. It contracts with other healthcare and commercial organizations
to provide specialty services including behavioral health, life and health
management, managed vision, nurse triage, pharmacy benefits management and
treatment compliance. Information regarding Centene is available via the
Internet at 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.
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