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Coventry Health Care Inc. (CVH) filed Quarterly Report for the period ended 2011-09-30.
Coventry Health Care Inc. has a market cap of $4.66 billion; its shares were traded at around $31.4 with a P/E ratio of 9.5 and P/S ratio of 0.4. Coventry Health Care Inc. had an annual average earning growth of 19.5% over the past 10 years.
This is the annual revenues and earnings per share of CVH over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CVH.
Highlight of Business Operations:
The provision for income taxes decreased from the prior year quarter due to a decrease in earnings. The effective tax rate on operations decreased to 34.5% as compared to 35.0% for the prior year quarter, primarily due to the proportion of earnings in states with lower tax rates.Specialized Managed Care division revenue decreased from the quarter and nine months ended September 30, 2011 as compared to the quarter and nine months ended September 30, 2010, primarily due to lower Medicare Part D membership as a result of the loss of auto assign regions as well as a reduction in product offerings from five in 2010 to two in 2011. Including the effect of the CMS risk sharing premium adjustments as well as ceded revenue, the premium per member per month was $91.15 in 2011 compared to $86.09 in 2010. Excluding the effect of CMS risk sharing premium adjustments and revenue ceded to external parties, Medicare Part D premium per member per month for 2011 increased to $92.89 compared to $88.70 in 2010, primarily due to pharmacy cost trends and the loss of the lower priced premium products.
Net cash from operating activities for the nine months ended September 30, 2011 was an inflow as a result of net earnings, net of adjustments, and an increase in deferred revenue related to the early receipt of the October 2011 Medicare premium payment from CMS. Offsetting these inflows was $150.5 million paid to settle the provider class action litigation in Louisiana. For additional information regarding this matter, refer to Note E, Contingencies, to the condensed consolidated financial statements, which is incorporated herein by reference.
Our net cash from operating activities for the nine months ended September 30, 2011 increased by $449.5 million from the corresponding 2010 period. The increase was a result of the unusually low cash flows in the prior year due to payments of medical claims liabilities associated with the non-renewal of the Medicare PFFS product, effective January 1, 2010. The nature of our business is such that premium revenues are generally received in advance of the expected cash payment for the related medical costs. This results in strong cash inflows upon the implementation of a benefit program and cash outflows upon the termination. Also contributing to the increase in net cash from operating activities was the early receipt of the October 2011 Medicare premium payment from CMS and a decrease in other accrued liabilities outflows as a result of lower tax payments during the current nine-month period compared to the prior year. The lower tax payments in 2011 were a result of recognizing the deduction in 2011 for the settlement paid related to the provider class action in Louisiana.
Excluding funds held by entities subject to regulation and excluding our equity method investments, we had cash and investments of approximately $1.6 billion and $1.1 billion at September 30, 2011 and December 31, 2010, respectively. The increase primarily resulted from the issuance of the 2021 Notes discussed previously, dividends received from our regulated subsidiaries, and earnings generated from our non-regulated entities partially offset by repayment of debt, share repurchases and a cash payment into escrow related to the provider class action litigation in Louisiana.
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