Molina Healthcare(US:MOH)2025-02-05 21:18Financial Performance - For the full year 2024, Molina Healthcare reported premium revenue of approximately $38.6 billion, an increase of 19% year over year[3]. - GAAP net income for the full year 2024 was $20.42 per diluted share, reflecting a 9% increase year over year[6]. - Adjusted net income for the full year 2024 was $22.65 per diluted share, representing an 8% increase year over year[6]. - The company expects full year 2025 premium revenue to be approximately $42 billion, indicating a 9% growth from 2024[11]. - Full year 2025 adjusted earnings per diluted share are projected to be at least $24.50, reflecting an 8% growth over 2024[12]. - Net income for the year ended December 31, 2024, was $1,179 million, up from $1,091 million in 2023, reflecting a year-over-year increase of 8.0%[26]. - For the year ended December 31, 2024, the company reported a GAAP net income of $1,251 million, translating to $22.50 per diluted share[39]. - Adjusted net income for the same period was $1,362 million, or $24.50 per diluted share, after accounting for adjustments totaling $111 million[39]. - Adjusted net income for the year was $1,308 million, up from $1,213 million in 2023, reflecting an increase of 7.8%[36]. Membership and Market Presence - As of December 31, 2024, Molina Healthcare served approximately 5.5 million members[3]. - Ending membership in Medicaid increased to 4,890,000 in 2024, up from 4,542,000 in 2023, marking a growth of 7.7%[28]. - The company reported a total of 5,535,000 members across all segments by the end of 2024, compared to 4,995,000 in 2023, an increase of 10.9%[28]. - The company is focused on expanding its market presence through newly awarded state Medicaid contracts and acquisitions[41]. Financial Ratios and Cash Flow - The consolidated Medical Care Ratio (MCR) for the full year 2024 was 89.1%, indicating effective management of medical costs[10]. - The medical care ratio (MCR) for Medicaid improved to 90.3% in 2024 from 88.7% in 2023, indicating better cost management[28]. - Operating cash flow for the year ended December 31, 2024, was $644 million, a decrease from $1,662 million in 2023[10]. - Cash and cash equivalents at the end of the period were $4,741 million, down from $4,908 million in 2023, a decrease of 3.4%[26]. Assets and Liabilities - Total assets increased to $15,630 million in 2024 from $14,892 million in 2023, representing a growth of 4.9%[24]. - Total current liabilities decreased to $7,896 million in 2024 from $8,168 million in 2023, a reduction of 3.3%[24]. - The company’s long-term debt rose to $2,923 million in 2024 from $2,180 million in 2023, an increase of 34.0%[24]. Future Outlook - The company anticipates approximately 13% growth in earnings due to recent Medicaid and Medicare Duals contract wins scheduled to commence in 2026[4]. - The company anticipates incremental diluted earnings per share from new Medicaid contracts and acquisitions to be included in the 2026-2028 period, with a focus on states like California, Iowa, and Texas[41]. - Non-recurring costs associated with recently announced acquisitions are estimated at approximately $20 million[41]. - The company’s guidance for 2025 includes a statutory tax rate effect of approximately 24.1% on income tax adjustments[39]. Shareholder Actions - The company purchased approximately 1.7 million shares for $500 million in the fourth quarter of 2024[9]. - The diluted weighted average shares outstanding for the calculations were approximately 55.6 million[40]. Adjustments and Non-Recurring Items - The adjustments for amortization of intangible assets amounted to $96 million, contributing $1.73 per diluted share[39]. - The year ended December 31, 2023, included non-recurring litigation and a credit loss due to the insolvency of an issuer in the Texas risk pool[37]. - The company’s performance metrics include non-GAAP measures such as "new store embedded earnings," which reflect expected earnings from new contracts not included in the 2025 guidance[41].