Coventry Health Care Inc. (CVH, Financial) filed Quarterly Report for the period ended 2009-03-31.
Coventry Health Care Inc. is a managed health care company operating health plans under the names Coventry Health Care Coventry Health and Life HealthAmerica HealthAssurance HealthCare USA Group Health Plan SouthCare Southern Health Carelink Health Plans and WellPath. The Company provides a full range of managed care products and services including health maintenance organization point-of-service preferred provider organization products and Medicare and Medicaid products. The Company also administers self-insured plans for large employer groups. Coventry Health Care Inc. has a market cap of $2.73 billion; its shares were traded at around $18.4 with a P/E ratio of 8.4 and P/S ratio of 0.2. Coventry Health Care Inc. had an annual average earning growth of 43.3% over the past 10 years. GuruFocus rated Coventry Health Care Inc. the business predictability rank of 4.5-star.
Our cash and investments, consisting of cash and cash equivalents and short-term and long-term investments, but excluding deposits of $66.6 million at March 31, 2009, and $66.5 million at December 31, 2008 that are restricted under state regulations, increased $0.4 billion to $3.5 billion at March 31, 2009, from $3.1 billion at December 31, 2008.
Our net cash from operating activities for the three months ended March 31, 2009, was $176 million higher than the corresponding 2008 period. Contributing to the increase was the fact that medical liabilities were $131 million greater during the 2009 period as a result of membership increases. The nature of our business is such that premium revenues are generally received up to two months prior to the expected cash payment for the related medical costs. This results in strong cash inflows upon the implementation of a benefit program. Also contributing was a $92.9 million smaller change in other receivables during the current quarter related to Medicare accruals. Additionally, the increase in other payables was $69.8 million greater during the current period due to incentive compensation being paid during the first quarter 2008 but not paid in 2009. Offsetting the higher first quarter 2009 cash from operating activities were the lower net earnings during the current quarter of $80.9 million and a lower increase in deferred revenue during the current quarter of $38 million.
Projected capital expenditures for fiscal 2009 are estimated at $65 to $75 million and consist primarily of computer hardware, software and other equipment.
Read the The complete ReportCVH is in the portfolios of Richard Snow of Snow Capital Management, L.P., Edward Owens of Vanguard Health Care Fund, Edward Owens of Vanguard Health Care Fund, David Dreman of Dreman Value Management.
Coventry Health Care Inc. is a managed health care company operating health plans under the names Coventry Health Care Coventry Health and Life HealthAmerica HealthAssurance HealthCare USA Group Health Plan SouthCare Southern Health Carelink Health Plans and WellPath. The Company provides a full range of managed care products and services including health maintenance organization point-of-service preferred provider organization products and Medicare and Medicaid products. The Company also administers self-insured plans for large employer groups. Coventry Health Care Inc. has a market cap of $2.73 billion; its shares were traded at around $18.4 with a P/E ratio of 8.4 and P/S ratio of 0.2. Coventry Health Care Inc. had an annual average earning growth of 43.3% over the past 10 years. GuruFocus rated Coventry Health Care Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:
Specialized Managed Care revenue experienced a significant increase over the prior year quarter due to an increase in membership of 76% in Medicare Part D. Medicare Part D premium yields for the period ending March 31, 2009, excluding the effect of CMS risk sharing premium adjustments and revenue ceded to external parties, decreased in 2009 compared to 2008, primarily due to the mix of products sold in 2009. The majority of the Medicare Part D growth was in the lower cost, leaner benefit plans, which have a lower premium. Including the effect of the CMS risk sharing premium adjustments as well as the ceded revenue, the premium yields were $108.15 in 2009 compared to $110.73 in 2008.Our cash and investments, consisting of cash and cash equivalents and short-term and long-term investments, but excluding deposits of $66.6 million at March 31, 2009, and $66.5 million at December 31, 2008 that are restricted under state regulations, increased $0.4 billion to $3.5 billion at March 31, 2009, from $3.1 billion at December 31, 2008.
Our net cash from operating activities for the three months ended March 31, 2009, was $176 million higher than the corresponding 2008 period. Contributing to the increase was the fact that medical liabilities were $131 million greater during the 2009 period as a result of membership increases. The nature of our business is such that premium revenues are generally received up to two months prior to the expected cash payment for the related medical costs. This results in strong cash inflows upon the implementation of a benefit program. Also contributing was a $92.9 million smaller change in other receivables during the current quarter related to Medicare accruals. Additionally, the increase in other payables was $69.8 million greater during the current period due to incentive compensation being paid during the first quarter 2008 but not paid in 2009. Offsetting the higher first quarter 2009 cash from operating activities were the lower net earnings during the current quarter of $80.9 million and a lower increase in deferred revenue during the current quarter of $38 million.
Projected capital expenditures for fiscal 2009 are estimated at $65 to $75 million and consist primarily of computer hardware, software and other equipment.
Read the The complete ReportCVH is in the portfolios of Richard Snow of Snow Capital Management, L.P., Edward Owens of Vanguard Health Care Fund, Edward Owens of Vanguard Health Care Fund, David Dreman of Dreman Value Management.
