| --- | --- | |---------------------------------------------------------------|-------| | | | | | | | Investor Presentation | | | MAGELLAN HEALTH \| Q3 2020 KEN FASOLA, CEO DAVID BOURDON, CFO | | | | | | | | Safe Harbor Statement Forward-Looking Statements This presentation, and our accompanying oral statements made in connection with this presentation, include statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform A ...

Financial Data and Key Metrics Changes - For Q3 2020, revenue was $1.2 billion, a 1% increase compared to the same period in 2019, primarily driven by growth in the Pharmacy segment, offset by net contract losses in the Healthcare segment [23] - Total segment profit for the quarter was $34.1 million, down from $45.6 million in Q3 2019 [23] - The net loss from continuing operations was $17.3 million, or a loss of $0.68 per share, compared to net income of $4.1 million and earnings per share of $0.17 in Q3 2019 [23] - Adjusted net income for Q3 2020 was $2.1 million, or $0.08 per share [23] Business Line Data and Key Metrics Changes - Healthcare segment profit for Q3 2020 was $21.2 million, a decrease of $5 million from Q3 2019, primarily due to net contract losses and minimum MLR thresholds in certain contracts [23] - Pharmacy Management reported segment profit of $31.4 million for Q3 2020, a decrease of $4 million from Q3 2019, attributed to a previously disclosed contract loss and start-up costs associated with the Medi-Cal contract [25] Market Data and Key Metrics Changes - The company noted an addressable market exceeding $400 billion for patients with comorbid behavioral and physical health conditions, with the COVID-19 pandemic intensifying focus on behavioral health [9] - The Pharmacy segment's commercial PBM outlook remains stable, with strong sales results offsetting typical client churn and membership losses from the weaker economy [18] Company Strategy and Development Direction - The company is focused on transforming its cost structure, innovating its solution set, and accelerating growth through a reimagined portfolio of behavioral, specialty health, and pharmacy solutions [7] - Strategic investments include partnerships with Kaden Health for telemedicine and Livongo for digital capabilities, aimed at enhancing behavioral health offerings [12][13] - The company plans to reduce its leased office space significantly, aligning with employee needs and work preferences, which is expected to contribute to net transformation savings targeted for 2021 [27] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed 2020 guidance ranges for revenue, segment profit, adjusted net income, and adjusted earnings per share, while adjusting GAAP net income and earnings per share guidance to reflect special accounting charges [6][31] - The company expects revenue and segment profit growth in 2021, driven by business transformation initiatives and the implementation of the Medi-Cal pharmacy benefit administration contract [32][33] Other Important Information - The company recorded additional special charges of $16.6 million in Q3 2020, primarily related to noncash lease abandonment charges [27] - As of September 30, 2020, the company's unrestricted cash and investments totaled $120.9 million, down from $161.5 million at June 30, 2020 [28] Q&A Session Summary Question: 2021 Commentary and Profit Growth - The question addressed the expected profit growth for 2021 and whether it would be in addition to the previously outlined figures [42] - Management clarified that the macro statement on revenue and segment profit growth was not necessarily an addition to the previously mentioned figures [44] Question: Contract Losses in Healthcare Segment - Inquiry about new contract losses in the Healthcare segment and how contracts have been trending [45] - Management indicated that there were no extraordinary losses, attributing revenue pressure to provisions in existing contracts [46] Question: Long-term Growth Targets - A question was raised regarding long-term growth targets beyond 2021 [47] - Management acknowledged the desire for long-term strategic growth targets and indicated that updates would be provided after the transitional phase [53] Question: IT Security Costs - A follow-up question on whether the new IT security costs would persist after 2021 [55] - Management indicated that while there would be some one-time charges, the investment in IT security would be considered a run rate going forward [56] Question: Sales Force Update - Inquiry about the progress of building the sales force and the integration of behavioral with medical pharmacy [57] - Management reported that they were on track with hiring and had begun training, with positive feedback from clients regarding integrated solutions [58]

Supplemental Q3 2020 Earnings Call Material October 27, 2020 1 Forward-Looking Statements All statements, other than statements of current or historical fact, contained in this presentation are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue" and other similar words or expressions (and the negativ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ___________________________________________ FORM 10-Q ____________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | |------------------------------------------------- ...

Magellan Health, Inc. (MGLN) Q2 2020 Earnings Conference Call July 29, 2020 9:30 AM ET Company Participants Darren Lehrich - Chief Investor Relations Officer Ken Fasola - Chief Executive Officer Jon Rubin - Chief Financial Officer Conference Call Participants Dave Styblo - Jefferies Scott Fidel - Stephens Inc Kevin Fischbeck - Bank of America Operator Greetings, and welcome to the Magellan Health, Inc., Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen only-mode. A ...

Financial Performance - Centene Corporation reported GAAP net earnings of $1,206 million for the three months ended June 30, 2020, compared to $495 million for the same period in 2019, reflecting a significant increase [11]. - Adjusted net earnings for the same period were $1,410 million, up from $561 million year-over-year, indicating a growth of approximately 151% [11]. - GAAP diluted earnings per share (EPS) increased to $2.05 for the three months ended June 30, 2020, compared to $1.18 in the prior year, representing a growth of 73.7% [11]. - Total revenues for the three months ended June 30, 2020, were $27,712 million, a 51.0% increase from $18,356 million in the same period of 2019 [14]. - Net earnings attributable to Centene Corporation for the three months ended June 30, 2020, were $1,206 million, compared to $495 million in the same period of 2019, representing a 143.6% increase [15]. - Total revenues for the six months ended June 30, 2020, reached $53,737 million, compared to $36,800 million for the same period in 2019, an increase of about 46% [53]. - The Managed Care segment generated $26,740 million in total revenues for Q2 2020, compared to $17,546 million in Q2 2019, marking a growth of about 52% [52]. - The Specialty Services segment reported total revenues of $4,092 million for Q2 2020, compared to $3,403 million in Q2 2019, indicating a growth of about 20% [52]. Expenses and Costs - The company incurred acquisition-related expenses of $71 million in Q2 2020, compared to $23 million in Q2 2019, highlighting increased costs associated with acquisitions [12]. - Selling, general, and administrative expenses (GAAP) rose to $2,255 million in Q2 2020, up from $1,574 million in Q2 2019, marking a 43.3% increase [12]. - Adjusted selling, general, and administrative expenses were $2,185 million for Q2 2020, compared to $1,553 million in Q2 2019, reflecting a year-over-year increase of 40.6% [12]. - Medical costs for the three months ended June 30, 2020, were $20,307 million, compared to $14,354 million in the same period of 2019, indicating a 41.5% increase [14]. - Total operating expenses for the three months ended June 30, 2020, were $25,694 million, up from $17,713 million in the same period of 2019, representing a 45.0% increase [14]. Acquisitions - The Company acquired WellCare Health Plans, Inc. on January 23, 2020, for a total consideration of $17,605 million, including $11,431 million in common shares and $6,079 million in cash [24]. - The acquisition added a Medicare prescription drug plan to the Company's existing business lines and enhanced its Medicaid offerings [24]. - The WellCare acquisition was accounted for as a business combination, with assets and liabilities recognized at fair value as of the acquisition date [24]. - The Company recognized $71 million and $384 million of acquisition-related costs for the three and six months ended June 30, 2020, respectively [24]. - The acquisition resulted in $10,637 million of goodwill, primarily due to expected synergies and the assembled workforce of WellCare [29]. Membership and Market Position - Managed care membership reached 24.6 million, an increase of 9.6 million members, or 64% year-over-year [70]. - The company expects a decrease in membership due to increased competition in the Oregon market, pending contract negotiations [75]. - Medicaid revenue grew by 50% to $18,129 million in Q2 2020, up from $12,119 million in Q2 2019 [78]. Cash Flow and Investments - Cash provided by operating activities for the six months ended June 30, 2020, was $3,474 million, up from $2,233 million in the prior year, indicating a 55.7% increase [18]. - The company reported a net cash used in investing activities of $3,032 million for the six months ended June 30, 2020, compared to $929 million in the same period of 2019 [18]. - The company completed an exchange offer for $1,200 million of 5.25% Senior Notes and $750 million of 5.375% Senior Notes as part of the WellCare acquisition, recorded at a fair value of $2,055 million [44]. - As of June 30, 2020, the company had unregulated cash and investments of $2.0 billion, a decrease from $7.2 billion at December 31, 2019 [95]. Risks and Challenges - The company anticipates challenges in achieving expected synergies and value creation from the WellCare Acquisition, which may not be realized within the expected timeframe [8]. - The company faces risks related to competition, membership and revenue declines, and changes in healthcare practices and costs [9]. - Forward-looking statements indicate potential impacts from COVID-19 on financial performance and operational results, with uncertainties surrounding market conditions and regulatory changes [7]. - Incremental COVID-19 costs are expected to continue impacting financial results as the pandemic evolves [68]. Tax and Regulatory - The effective tax rate for Q2 2020 was 38.2%, compared to 25.7% in Q2 2019, reflecting the reinstatement of the health insurer fee [85]. - The effective tax rate for the six months ended June 30, 2020, was 39.9%, compared to 24.9% in the same period of 2019, reflecting the reinstatement of the health insurer fee [90].

CEN 1 June 2020 Virtual Investor Day CENTENE | 2020 INVESTOR DAY | --- | --- | |--------------------|--------------------------------------------------------------------| | | | | | | | Jennifer Gilligan | Introduction Senior Vice President, Finance & Investor Relations | CENTENE | 2020 INVESTOR DAY 2 Forward-Looking Statements All statements, other than statements of current or historical fact, contained in this presentation are forward-looking statements. Without limiting the foregoing, forward-looking sta ...

Jefferies Conference MAGELLAN HEALTH | JUNE 2, 2020 KEN FASOLA, CEO JON RUBIN, CFO Cautionary Statement and Non-GAAP Measures This slide presentation and our accompanying oral comments include forward-looking statements contemplated under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and are subject to known and unknown uncertainties and risks which could cause actual results to differ materially from those reflected, co ...

Magellan Health, Inc. (MGLN) Q1 2020 Results Conference Call May 11, 2020 8:00 AM ET Company Participants Joe Bogdan - SVP, Corporate Finance Ken Fasola - CEO Jon Rubin - CFO Conference Call Participants Scott Fidel - Stephens Kevin Fischbeck - Bank of America Dave Styblo - Jefferies Operator Welcome, and thank you for standing by for the First Quarter 2020 Earnings Call. At this time, all participants are in a listen only-mode. [Operator Instructions]. Today's conference is being recorded. [Operator Inst ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ___________________________________________ FORM 10-Q ____________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ____________________________________________ Commission file number: ...