Molina Healthcare, Inc. (MOH) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $91 million, or $ 1.64 a share in the quarter, against a net profit of $30 million, or $0.52 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $86 million, or $1.54 a share compared with a net profit of $33 million, or $0.58 a share in the last year period.
Revenue during the quarter grew 15.29 percent to $4,463 million from $3,871 million in the previous year period. Net premium earned for the quarter increased 14.39 percent or $532 million to $4,229 million.
Total expenses move up
Benefits, losses and expenses for the quarter were at $4,537 million, or 107.28 percent of premium earned from $3,795 million or 102.65 percent of premium earned in the last year period. Operating loss for the quarter was $74 million, compared with an operating income of $76 million in the previous year period.
For fiscal year 2017, Molina Healthcare, Inc. expects revenue to be $19,500 million. It forecasts net income to be $100 million. It projects adjusted net income to be $122 million. It projects diluted earnings per share to be $1.72. It expects diluted earnings per share to be $2.09 on adjusted basis for the same period.
Life insurance division has clocked in a premium of $4,109 million on net basis during the quarter, up 14.49 percent or $520 million. At the same time, net premium received from other insurance division for the quarter was at $120 million, up 11.11 percent or $12 million from year-ago period.
Net investment income was at $9 million for the quarter, up 50 percent or $3 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 54.10 percent or $33 million to $94 million.
"While we experienced strong enrollment growth across our business and have made progress on our cost cutting efforts, today's results highlight the continuing challenges we face in the ACA Marketplace," said J. Mario Molina, M.D., chief executive officer of Molina Healthcare, Inc. "We are clearly disappointed in these results; however, we have identified and are committed to taking decisive steps to stabilize Marketplace performance; enhance our Medicaid profitability across Illinois, Ohio and Washington; and sustain our progress in Puerto Rico. Further, we continue to advocate for measures that the federal government can take to level the Marketplace playing field for insurers, like Molina, that offer effective, affordable health care to those who need it most."
Operating cash flow drops significantly
Molina Healthcare, Inc. has generated cash of $673 million from operating activities during the year, down 40.18 percent or $452 million, when compared with the last year.
The company has spent $202 million cash to meet investing activities during the year as against cash outgo of $1,420 million in the last year.
Cash flow from financing activities was $19 million for the year, down 98.25 percent or $1,066 million, when compared with the last year.
Cash and cash equivalents stood at $2,819 million as on Dec. 31, 2016, up 21.04 percent or $490 million from $2,329 million on Dec. 31, 2015.
Liabilities outpace assets growth
Total assets increased 13.64 percent or $897 million to $7,473 million on Dec. 31, 2016. On the other hand, total liabilities were at $5,868 million as on Dec. 31, 2016, up 16.92 percent or $849 million from year-ago.
Return on assets was negative at 0.88 percent in the quarter against a positive 0.78 percent in the last year period. Return on equity was negative at 5.67 percent in the quarter against a positive 1.93 percent in the last year period.
Investments come down
Investments stood at $2,025 million as on Dec. 31, 2016, down 6.90 percent or $150 million from year-ago. Meanwhile, yield on investments went up 17 basis points to 0.44 percent in the quarter.
Shareholders equity stood at $1,605 million as on Dec. 31, 2016, up 3.08 percent or $48 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 1.02 percent in the quarter from 1.03 percent in the last year period.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
