Molina Healthcare, Inc. (MOH) has reported an 8.70 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $42 million, or $0.76 a share in the quarter, compared with $46 million, or $0.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $47 million, or $0.85 a share compared with $48 million or $0.81 a share, a year ago.
Revenue during the quarter grew 25.89 percent to $4,546 million from $3,611 million in the previous year period. Net premium earned for the quarter increased 24.22 percent or $842 million to $4,318 million.
Total expenses increase substantially
Operating income for the quarter was $118 million, compared with $113 million in the previous year period.
Life insurance division has clocked in a premium of $4,191 million on net basis during the quarter, up 24.10 percent or $814 million. At the same time, net premium received from other insurance division for the quarter was at $127 million, up 28.28 percent or $28 million from year-ago period.
Net investment income was at $9 million for the quarter, up 80 percent or $4 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 4.94 percent or $4 million to $85 million.
"Our third quarter results demonstrate continuing improvement in our overall business," said J. Mario Molina, M.D., chief executive officer of Molina Healthcare, Inc. "Although these results highlight the need for programmatic adjustments to the Affordable Care Act’s health insurance Marketplaces, Molina Healthcare’s combination of product and geographic diversification, quality focused medical care, and efficient operations continues to deliver value to our members, our government partners, and our investors." Update on Financial Performance
Operating cash flow drops significantly
Molina Healthcare has generated cash of $633 million from operating activities during the nine month period, down 30.13 percent or $273 million, when compared with the last year period.
The company has spent $131 million cash to meet investing activities during the nine month period as against cash outgo of $665 million in the last year period.
Cash flow from financing activities was $11 million for the nine month period, down 97.14 percent or $373 million, when compared with the last year period.
Cash and cash equivalents stood at $2,842 million as on Sep. 30, 2016, up 31.32 percent or $677.79 million from $2,164.21 million on Sep. 30, 2015.
Liabilities outpace assets growth
Total assets increased 27.98 percent or $1,654.97 million to $7,570 million on Sep. 30, 2016. On the other hand, total liabilities were at $5,879 million as on Sep. 30, 2016, up 33.70 percent or $1,481.98 million from year-ago.
Return on assets stood at 0.90 percent in the quarter, down 0.13 from 1.03 percent in the last year period. At the same time, return on equity was at 2.48 percent in the quarter, down 0.55 from 3.03 percent in the last year period.
Investments stood at $2,049 million as on Sep. 30, 2016.
Total debt was at $1,635 million as on Sep. 30, 2016. Shareholders equity stood at $1,691 million as on Sep. 30, 2016, up 11.40 percent or $172.99 million from year-ago. As a result, debt to equity ratio went up 49 basis points to 0.97 percent in the quarter from 0.48 percent in the last year period.
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