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Earnings per diluted share for third quarter 2012 of $0.07, down from $0.41 in 2011
Quarterly premium revenues of $1.5 billion, up 31% over 2011
Aggregate membership up 9% over 2011
Year to date cash provided by operating activities up $109 million over 2011
Molina Healthcare, Inc. (NYSE: MOH) today reported its financial results for the third quarter and nine months ended September 30, 2012.
Net income for the quarter was $3.4 million, or $0.07 per diluted share, compared with net income of $19.0 million, or $0.41 per diluted share, for the quarter ended September 30, 2011.
“Our third quarter results demonstrate the tremendous opportunities we have before us,” said J. Mario Molina, M.D., chief executive officer of Molina Healthcare, Inc. “The growth in our Washington revenue in the third quarter was more than enough to replace the revenue we lost as a result of the termination of our contract in Missouri. The developments in Washington are an example of the growth that is happening in our industry even without the impetus of federal legislation. I am also pleased with the rapid turnaround at our Texas health plan, where we have made remarkable progress in the last three months.”
Overview of Financial Results
The Company’s financial performance in the third quarter of 2012 improved substantially over the second quarter of 2012 due to a significant improvement in the profitability of its Texas health plan. Revenue was consistent between the second and third quarters of 2012 as a 30% increase in revenue at the Washington health plan offset both the termination of the Company’s Missouri enrollment and the slight decline in Texas enrollment.
Health Plans Segment ResultsPremium Revenue
Premium revenue for the third quarter of 2012 increased 31% over the third quarter of 2011, primarily due to an increase in membership, a shift in member mix to populations generating higher premium revenue per member per month (PMPM), and benefit expansions.