Magellan Health Services Inc. (NASDAQ: MGLN) today announced that, for 2013, it expects to generate net revenue in the range of $3.56 to $3.74 billion, and net income in the range of $91 million to $109 million, which translates into diluted earnings per share in the range of $3.22 to $3.85 inclusive of share repurchases to date. The company also expects segment profit (which represents income before income taxes, excluding stock compensation expense, depreciation and amortization, interest expense, interest income, gain on the sale of assets, and special charges or benefits) for 2013 to be in the range of $250 million to $270 million.
With regard to Magellan’s share repurchase program, during the period October 26th through December 10th, the company repurchased 336,622 shares for a total cost of $16.8 million. To date, $49.5 million of the $200 million program authorized by our Board of Directors in October 2011 has been completed. As of December 10, 2012, there are approximately 27.4 million shares outstanding.
With respect to 2012, the company confirmed its current guidance for segment profit, net income, EPS and cash flow, which was most recently updated in October.
“Magellan will complete 2012 with solid financial performance, and is well positioned as we enter 2013,” said René Lerer, M.D. “We are pleased with our results across all of our business lines, and the new contracts we won in 2012. In the coming year, we will focus on retention of our current business, particularly in Maricopa County, Arizona, where in partnership with the State we have transformed the behavioral health system over the past five years. We will continue to execute on our growth initiatives, make strategic investments to fuel our success, and maintain a capital strategy which allows us to maximize shareholder return, while retaining sufficient liquidity to pursue strategic options and invest in our future growth.”