Magellan Health Reports 2020 Financial Results

PHOENIX–(BUSINESS WIRE)–Magellan Health, Inc. (NASDAQ: MGLN) today announced financial results for the fourth quarter and the year ended December 31, 2020, as summarized below:

 
Three Months Ended Twelve Months Ended
December 31December 31
(In millions, except per share amounts)
Continuing Operations

2020

2019

Chg

2020

2019

Chg

Net revenue

$

1,185.0

 

$

1,133.8

4.5

%

$

4,577.5

$

4,565.6

0.3

%

Net (loss) income

$

(24.7

)

$

9.5

NM

 

$

4.0

$

12.6

-67.9

%

Segment profit [1]

$

11.3

 

$

55.9

-79.8

%

$

144.0

$

185.8

-22.5

%

Adjusted net income (loss) [1]

$

(9.8

)

$

16.5

NM

 

$

19.6

$

36.7

-46.6

%

Earnings (loss) per share

$

(0.96

)

$

0.38

NM

 

$

0.16

$

0.51

-68.6

%

Adjusted earnings (loss) per share [1]

$

(0.38

)

$

0.66

NM

 

$

0.77

$

1.49

-48.3

%

 
[1] Refer to the Basis of Presentation for a discussion of non-GAAP financial measures.
NM = “not meaningful”

Full Year 2020 Highlights and Other Recent Developments:

  • Full year 2020 net revenue from continuing operations increased 0.3% to $4.6 billion as compared to 2019.
  • Full year 2020 net income from continuing operations was $4.0 million as compared to $12.6 million for 2019. Net income was impacted by non-cash special charges related to a reduced real estate footprint and severance, higher discretionary benefits, and new contract implementation costs, partially offset by a deferred tax benefit realized from the sale of the Magellan Complete Care Business (the “MCC Business”) to Molina Healthcare, Inc. (“Molina”).
  • Full year 2020 adjusted net income and adjusted earnings per share were $19.6 million and $0.77 as compared to $36.7 million and $1.49, respectively, for 2019.
  • On December 22, 2020, the Company announced the acquisition of a majority interest in Bayless Integrated Healthcare, a leading integrated behavioral and primary care provider in Arizona.
  • On December 31, 2020 the Company completed the sale of the MCC Business to Molina for cash in the amount of $850 million plus closing adjustments of $158 million (subject to post-closing adjustments, if any), and the assumption by Molina of liabilities of the MCC Business. The Company recorded a pre-tax gain of $348.1 million from the sale in discontinued operations.
  • On January 4, 2021 the Company and Centene Corporation announced that they have entered into a definitive merger agreement under which Centene will acquire Magellan Health for $95 per share in cash for a total enterprise value of $2.2 billion. The transaction is expected to be completed in the second half of 2021, subject to customary regulatory and shareholder approvals.
  • On January 13, 2021 the Company led a Series B financing in NeuroFlow, a digital health company combining workflow automation, consumer engagement solutions, and applied AI to promote behavioral health integration in all care settings.

“I am proud of our accomplishments in 2020, and I am grateful for all of our Magellan Health associates for how well they adapted to an environment dominated by the COVID-19 pandemic. During 2020, we remained focused on delivering on our commitments to members, customers and shareholders, while also making significant progress to rationalize our cost structure and advance our innovation and growth initiatives. Through the successful transition of the MCC Business to Molina on December, 31, 2020, we also achieved our goal to reposition Magellan’s business,” said Kenneth Fasola, chief executive officer, Magellan Health.

“On January 4, 2021, we announced that we entered into a definitive merger agreement under which Centene Corporation will acquire Magellan Health for $95 per share in cash. I am pleased with the energy and enthusiasm exhibited by both organizations about this transaction,” continued Fasola. “I expect Magellan to continue to have significant opportunities serving third-party customers and growing as a payer services business operating independently under Centene’s Health Care Enterprises division.”

Net Revenue

Net revenue from continuing operations was $4.58 billion for 2020, an increase of 0.3% compared to 2019 primarily due to growth in the Pharmacy Management segment, partially offset by a modest decline in the Healthcare segment.

Segment Profit

Segment profit from continuing operations was $144.0 million for 2020, compared to $185.8 million in 2019.

  • Healthcare segment profit was $135.2 million, representing a decrease of $9.0 million from 2019. This year-over-year decrease was primarily driven by net contract losses and higher discretionary benefits, partially off-set by lower utilization.
  • Pharmacy Management segment profit was $85.4 million, representing a decrease of $25.1 million from 2019. This year-over-year decrease was primarily driven by start-up costs associated with the Medi-Cal PBA contract, lower PBM gross margin and higher discretionary benefits, partially off-set by strong results from specialty pharmacy operations.
  • Corporate segment costs inclusive of eliminations, but excluding stock compensation expense, totaled $76.6 million, as compared to $68.8 million in 2019. This increase was primarily driven by transaction related expenses and increased discretionary compensation.

Other Items

The Company recorded a special charge of $34.1 million during 2020 primarily associated with non-cash lease termination and abandonment costs for planned reductions to the Company’s real estate footprint and severance related to the transformation operational initiatives.

Income from discontinued operations, net of tax, for 2020 was $378.3 million, as compared to $43.3 million during 2019. This increase was primarily driven by a $348.1 million gain realized on the sale of the MCC Business to Molina and lower utilization trends due to COVID-19.

Cash Flow & Balance Sheet

Cash flow provided by operations from continuing operations for the year ended December 31, 2020, was $179.5 million, as compared to $183.6 million for the year ended December 31, 2019.

As of December 31, 2020, the Company’s unrestricted cash and investments totaled $1,148.8 million, as compared to $81.1 million at December 31, 2019. This increase is largely due to the receipt of proceeds from the sale of the MCC Business to Molina. Approximately $35.0 million of the unrestricted cash and investments at December 31, 2020 is related to excess capital and undistributed earnings held at regulated entities of continuing operations.

Earnings Conference Call

Due to the pending transaction with Centene, the Company is not hosting a conference call in conjunction with its 2020 earnings release and does not expect to do so in future quarters. Please direct any questions regarding this earnings release to Magellan’s Investor Relations or Media contacts.

Basis of Presentation

In addition to results determined under Generally Accepted Accounting Principles (GAAP), Magellan provides certain non-GAAP financial measures that management believes are useful in assessing the Company’s performance. Following is a description of these important non-GAAP measures.

Segment profit is equal to net revenue less the sum of cost of care, cost of goods sold, direct service costs and other operating expenses, and includes income from unconsolidated subsidiaries, but excludes segment profit or loss from non-controlling interests held by other parties, stock compensation expense, special charges or benefits, as well as changes in the fair value of contingent consideration recorded in relation to acquisitions.

Adjusted net income and adjusted earnings per share reflect certain adjustments made for acquisitions to exclude non‑cash stock compensation expense resulting from restricted stock purchases by sellers, changes in the fair value of contingent consideration, amortization of identified acquisition intangibles, as well as impairment of identified acquisition intangibles, special charges, and any impact related to the sale of MCC.

Included in the tables issued with this press release are the reconciliations from GAAP measures to the corresponding non-GAAP measures.

MCC Business Reflected as Discontinued Operations

Due to the sale of the MCC Business to Molina, the consolidated financial statements for all periods presented reflect the MCC Business as discontinued operations.

About Magellan Health: Magellan Health, Inc. is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan’s customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.

Forward-Looking Statements

This press release include statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend” and other similar expressions are intended to identify forward-looking statements. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Important proposed merger-related and other risk factors that may cause such differences include: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed merger; (ii) the transaction closing conditions may not be satisfied in a timely manner or at all, including due to the failure to obtain the Company stockholder approval and regulatory approvals; (iii) the announcement and pendency of the proposed merger may disrupt the Company’s business operations (including the threatened or actual loss of employees, customers or suppliers); and (iv) the Company could experience financial or other setbacks if the transaction encounters unanticipated problems. Other important factors that could cause actual results to differ materially from those expressed or implied include the effectiveness of business continuity plans during, and the risks associated with, the COVID-19 pandemic; termination or non-renewal of customer contracts; changes in rates paid to and/or by the Company by customers and/or providers; our ability to develop and maintain satisfactory relationships with providers; higher utilization of healthcare services by the Company’s members; risks and uncertainties associated with the pharmacy benefits management industry; costs to maintain or upgrade our information technology and other business systems and the effectiveness and security of such systems; cyberattacks, other privacy/data security incidents, and/or our failure to comply with related regulations; delays, higher costs or inability to implement new business or other Company initiatives; the impact of changes in the contracting model for Medicaid contracts; impairment of our goodwill and intangible assets; the impact of new or amended laws or regulations; costs and other liabilities associated with litigation, government investigations, audits or reviews; competition; operational issues; healthcare reform; and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included within the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2020, to be filed with the Securities and Exchange Commission later today, and subsequent reports on Forms 10-Q and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

 
MAGELLAN HEALTH, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
 
December 31, 2019December 31, 2020
ASSETS
 
Current Assets:
Cash and cash equivalents

$

115,752

 

$

1,144,450

 

Accounts receivable, net

 

680,569

 

 

743,502

 

Short-term investments

 

98,797

 

 

140,847

 

Pharmaceutical inventory

 

44,962

 

 

43,334

 

Other current assets

 

69,687

 

 

84,264

 

Current portion of assets held for sale

 

663,276

 

 

 

Total Current Assets

 

1,673,043

 

 

2,156,397

 

Property and equipment, net

 

131,712

 

 

136,739

 

Long-term investments

 

2,864

 

 

2,612

 

Deferred income taxes

 

1,840

 

 

1,842

 

Other long-term assets

 

58,905

 

 

108,797

 

Goodwill

 

806,421

 

 

873,779

 

Other intangible assets, net

 

81,675

 

 

79,689

 

Assets held for sale, less current portion

 

335,713

 

 

 

Total Assets

$

3,092,173

 

$

3,359,855

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current Liabilities:
Accounts payable

$

83,790

 

$

137,380

 

Accrued liabilities

 

191,854

 

 

354,906

 

Medical claims payable

 

128,114

 

 

111,851

 

Other medical liabilities

 

92,915

 

 

126,921

 

Current debt, finance lease and deferred financing obligations

 

3,491

 

 

6,521

 

Current portion of liabilities held for sale

 

409,983

 

 

 

Total Current Liabilities

 

910,147

 

 

737,579

 

Long-term debt, finance lease and deferred financing obligations

 

679,125

 

 

631,855

 

Deferred income taxes

 

1,971

 

 

7,102

 

Tax contingencies

 

9,453

 

 

11,002

 

Deferred credits and other long-term liabilities

 

56,393

 

 

69,283

 

Liabilities held for sale, less current portion

 

37,301

 

 

 

Total Liabilities

 

1,694,390

 

 

1,456,821

 

Redeemable non-controlling interest

 

 

 

33,062

 

Stockholders’ Equity:
Ordinary common stock

 

543

 

 

555

 

Additional paid-in capital

 

1,386,616

 

 

1,477,219

 

Retained earnings

 

1,475,207

 

 

1,857,130

 

Accumulated other comprehensive income (loss)

 

144

 

 

(205

)

Ordinary common stock in treasury, at cost

 

(1,464,727

)

 

(1,464,727

)

Total Stockholders’ Equity

 

1,397,783

 

 

1,869,972

 

Total Liabilities and Stockholders’ Equity

$

3,092,173

 

$

3,359,855

 

MAGELLAN HEALTH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share amounts)
 
 
 
Three Months EndedYears Ended
December 31, December 31,

 

2019

 

 

2020

 

 

2019

 

 

2020

 

(unaudited)(unaudited)
Net revenue:
Managed care and other

$

580,544

 

$

579,454

 

$

2,346,935

 

$

2,250,021

 

PBM

 

553,231

 

 

605,506

 

 

2,218,678

 

 

2,327,510

 

Total net revenue

 

1,133,775

 

 

1,184,960

 

 

4,565,613

 

 

4,577,531

 

 
Costs and expenses:
Cost of care

 

367,819

 

 

362,478

 

 

1,543,524

 

 

1,397,855

 

Cost of goods sold

 

507,917

 

 

559,140

 

 

2,059,285

 

 

2,180,717

 

Direct service costs and other operating expenses (1)

 

207,616

 

 

259,401

 

 

801,667

 

 

880,168

 

Depreciation and amortization

 

27,869

 

 

26,411

 

 

110,367

 

 

98,387

 

Interest expense

 

8,826

 

 

6,626

 

 

35,868

 

 

30,865

 

Interest and other income

 

(1,578

)

 

(1,935

)

 

(6,857

)

 

(4,054

)

Special charges

 

 

 

9,170

 

 

 

 

34,078

 

Total costs and expenses

 

1,118,469

 

 

1,221,291

 

 

4,543,854

 

 

4,618,016

 

Income (loss) from continuing operations before income taxes

 

15,306

 

 

(36,331

)

 

21,759

 

 

(40,485

)

Provision (benefit) for income taxes

 

5,854

 

 

(11,635

)

 

9,162

 

 

(44,531

)

Net income (loss) from continuing operations

 

9,452

 

 

(24,696

)

 

12,597

 

 

4,046

 

Income from discontinued operations, net of tax

 

11,132

 

 

293,629

 

 

43,305

 

 

378,289

 

Net Income

$

20,584

 

$

268,933

 

$

55,902

 

$

382,335

 

 
Weighted average number of common shares outstanding — basic

 

24,491

 

 

25,781

 

 

24,243

 

 

25,255

 

Weighted average number of common shares outstanding — diluted

 

24,905

 

 

25,781

 

 

24,563

 

 

25,532

 

 
Net income (loss) per common share — basic
Continuing operations

$

0.39

 

$

(0.96

)

$

0.52

 

$

0.16

 

Discontinued operations

 

0.45

 

 

11.39

 

 

1.79

 

 

14.98

 

Consolidated operations

$

0.84

 

$

10.43

 

$

2.31

 

$

15.14

 

Net income (loss) per common share — diluted
Continuing operations

$

0.38

 

$

(0.96

)

$

0.51

 

$

0.16

 

Discontinued operations

 

0.45

 

 

11.39

 

 

1.76

 

 

14.82

 

Consolidated operations

$

0.83

 

$

10.43

 

$

2.27

 

$

14.98

 

 
Net income

$

20,584

 

$

268,933

 

$

55,902

 

$

382,335

 

Other comprehensive income:
Unrealized (loss) gain on available-for-sale securities (2)

 

(173

)

 

(326

)

 

468

 

 

(349

)

Comprehensive income

$

20,411

 

$

268,607

 

$

56,370

 

$

381,986

 

(1) Includes stock compensation expense of $5,462 and $7,342 for the three months ended December 31, 2019 and 2020, respectively, and $24,673 and $25,172 for the years ended December 31, 2019 and 2020, respectively.

(2) Net of income tax (benefit) provision of $(51) and $(116) for the three months ended December 31, 2019 and 2020, respectively, and $150 and $(124) for the years ended December 31, 2019 and 2020, respectively.

MAGELLAN HEALTH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Years Ended
December 31,

 

2019

 

 

2020

 

Cash flows from operating activities:
Net income

$

55,902

 

$

382,335

 

Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization

 

131,509

 

 

118,745

 

Special charges

 

 

 

34,078

 

Gain on sale of MCC

 

 

 

(348,145

)

Non-cash interest expense

 

1,537

 

 

1,652

 

Non-cash stock compensation expense

 

25,501

 

 

25,450

 

Non-cash income tax provision (benefit)

 

7,052

 

 

(10,435

)

Non-cash (amortization) accretion on investments

 

(433

)

 

4,282

 

Changes in assets and liabilities, net of effects from acquisitions of businesses:
Accounts receivable, net

 

(133,999

)

 

17,078

 

Pharmaceutical inventory

 

(4,144

)

 

1,628

 

Other assets

 

19,492

 

 

(48,328

)

Accounts payable and accrued liabilities

 

56,843

 

 

225,055

 

Medical claims payable and other medical liabilities

 

(28,969

)

 

44,449

 

Contingent consideration

 

(3,877

)

 

 

Tax contingencies

 

(1,352

)

 

(3,075

)

Deferred credits and other long-term liabilities

 

(10,668

)

 

6,361

 

Other

 

1,452

 

 

(369

)

Net cash provided by operating activities

 

115,846

 

 

450,761

 

Net cash (used in) provided by operating activities from discontinued operations

 

(67,768

)

 

271,256

 

Net cash provided by operating activities from continuing operations

 

183,614

 

 

179,505

 

 
Cash flows from investing activities:
Capital expenditures

 

(60,402

)

 

(75,480

)

Acquisitions and investments in businesses, net of cash acquired

 

(727

)

 

(100,604

)

Sale of MCC

 

 

 

1,013,828

 

Purchases of investments

 

(514,324

)

 

(804,150

)

Proceeds from maturities and sales of investments

 

555,960

 

 

645,345

 

Net cash (used in) provided by investing activities

 

(19,493

)

 

678,939

 

Net cash provided by (used in) investing activities from discontinued operations

 

41,830

 

 

(119,017

)

Net cash (used in) provided by investing activities from continuing operations

 

(61,323

)

 

797,956

 

 
Cash flows from financing activities:
Proceeds from borrowings on revolving line of credit

 

 

 

80,000

 

Payments to acquire treasury stock

 

(4,125

)

 

 

Proceeds from exercise of stock options

 

32,708

 

 

64,167

 

Payments on debt, finance lease and deferred financing obligations

 

(67,511

)

 

(131,667

)

Payments on contingent consideration

 

(6,247

)

 

 

Other

 

1,763

 

 

637

 

Net cash (used in) provided by financing activities

 

(43,412

)

 

13,137

 

Net cash provided by (used in) financing activities from discontinued operations

 

50,050

 

 

(38,100

)

Net cash (used in) provided by financing activities from continuing operations

 

(93,462

)

 

51,237

 

 
Net increase in cash and cash equivalents

 

28,829

 

 

1,028,698

 

Cash and cash equivalents at beginning of period

 

86,923

 

 

115,752

 

Cash and cash equivalents at end of period

$

115,752

 

$

1,144,450

 

MAGELLAN HEALTH, INC. AND SUBSIDIARIES
CONTINUING OPERATIONS RESULTS BY BUSINESS SEGMENT
(In thousands)
 
 
Three Months EndedYears Ended
December 31, December 31,

 

2019

 

 

2020

 

 

2019

 

 

2020

 

(unaudited)(unaudited)
Healthcare
Managed care and other revenue

$

507,774

 

$

500,491

 

$

2,082,088

 

$

1,959,869

 

Cost of care

 

(367,819

)

 

(362,478

)

 

(1,543,524

)

 

(1,397,855

)

Direct service costs and other

 

(104,166

)

 

(122,727

)

 

(402,006

)

 

(433,723

)

Stock compensation expense (1)

 

1,864

 

 

2,180

 

 

7,639

 

 

6,876

 

Healthcare segment profit

 

37,653

 

 

17,466

 

 

144,197

 

 

135,167

 

 
Pharmacy Management
Managed care and other revenue

 

72,928

 

 

79,171

 

 

265,439

 

 

290,855

 

PBM revenue

 

558,168

 

 

610,927

 

 

2,236,829

 

 

2,347,446

 

Cost of goods sold

 

(512,599

)

 

(564,294

)

 

(2,076,509

)

 

(2,199,674

)

Direct service costs and other

 

(84,909

)

 

(108,010

)

 

(323,162

)

 

(360,970

)

Stock compensation expense (1)

 

2,369

 

 

2,062

 

 

7,834

 

 

7,723

 

Pharmacy Management segment profit

 

35,957

 

 

19,856

 

 

110,431

 

 

85,380

 

 
Corporate and Elimination (2)
Managed care and other revenue

 

(158

)

 

(208

)

 

(592

)

 

(703

)

PBM revenue

 

(4,937

)

 

(5,421

)

 

(18,151

)

 

(19,936

)

Cost of goods sold

 

4,682

 

 

5,154

 

 

17,224

 

 

18,957

 

Direct service costs and other

 

(18,541

)

 

(28,664

)

 

(76,499

)

 

(85,475

)

Stock compensation expense (1)

 

1,229

 

 

3,099

 

 

9,200

 

 

10,573

 

Corporate and Elimination

 

(17,725

)

 

(26,040

)

 

(68,818

)

 

(76,584

)

 
Consolidated
Managed care and other revenue

 

580,544

 

 

579,454

 

 

2,346,935

 

 

2,250,021

 

PBM revenue

 

553,231

 

 

605,506

 

 

2,218,678

 

 

2,327,510

 

Cost of care

 

(367,819

)

 

(362,478

)

 

(1,543,524

)

 

(1,397,855

)

Cost of goods sold

 

(507,917

)

 

(559,140

)

 

(2,059,285

)

 

(2,180,717

)

Direct service costs and other

 

(207,616

)

 

(259,401

)

 

(801,667

)

 

(880,168

)

Stock compensation expense (1)

 

5,462

 

 

7,341

 

 

24,673

 

 

25,172

 

Segment profit from continuing operations

$

55,885

 

$

11,282

 

$

185,810

 

$

143,963

 

 
 
Reconciliation of income from continuing before income taxes (GAAP) to segment profit (non-GAAP):
Income from continuing operations before income taxes

$

15,306

 

$

(36,331

)

$

21,759

 

$

(40,485

)

Stock compensation expense

 

5,462

 

 

7,341

 

 

24,673

 

 

25,172

 

Depreciation and amortization

 

27,869

 

 

26,411

 

 

110,367

 

 

98,387

 

Interest expense

 

8,826

 

 

6,626

 

 

35,868

 

 

30,865

 

Interest and other income

 

(1,578

)

 

(1,935

)

 

(6,857

)

 

(4,054

)

Special charges

 

 

 

9,170

 

 

 

 

34,078

 

Segment profit from continuing operations

$

55,885

 

$

11,282

 

$

185,810

 

$

143,963

 

(1) Stock compensation expense, changes in the fair value of contingent consideration recorded in relation to acquisitions and impairment of intangible assets are included in direct service costs and other operating expenses; however, these amounts are excluded from the computation of segment profit.
(2) Pharmacy Management provides pharmacy benefits management for certain Healthcare customers, and the Company’s employees covered under its medical plan. As such, revenue, cost of goods sold and direct service costs and other related to these arrangements are eliminated.
MAGELLAN HEALTH, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
 
 
Three Months EndedYears Ended
December 31, December 31,

 

2019

 

 

2020

 

 

2019

 

 

2020

 

(unaudited)(unaudited)
 
Net income (loss) from continuing operations

$

9,452

 

$

(24,696

)

$

12,597

 

$

4,046

 

Adjustments
Amortization of acquired intangibles

 

9,750

 

 

10,610

 

 

33,002

 

 

39,793

 

Special charges

 

 

 

9,170

 

 

 

 

34,078

 

Tax impact

 

(2,689

)

 

(5,077

)

 

(8,874

)

 

(19,465

)

Nonrecurring tax benefit – divestiture

 

 

 

153

 

 

 

 

(38,859

)

Adjusted net income (loss) from continuing operations

$

16,513

 

$

(9,840

)

$

36,725

 

$

19,593

 

 
 
Net income (loss) per common share attributable to Magellan —Diluted

$

0.38

 

$

(0.96

)

$

0.51

 

$

0.16

 

Adjustments
Amortization of acquired intangibles

 

0.39

 

 

0.41

 

 

1.34

 

 

1.56

 

Special charges

 

 

 

0.36

 

 

 

 

1.33

 

Tax impact

 

(0.11

)

 

(0.20

)

 

(0.36

)

 

(0.76

)

Nonrecurring tax benefit – divestiture

 

 

 

0.01

 

 

 

 

(1.52

)

Adjusted earnings (loss) per share

$

0.66

 

$

(0.38

)

$

1.49

 

$

0.77

 

Contacts

Media Contact: Lilly Ackley, ackleyl@magellanhealth.com, (860) 507-1923

Investor Contact: Darren Lehrich, lehrichd@magellanhealth.com, (860) 507-1814

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