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WellPoint Reports Second Quarter 2013 Results

Stocks in this article: WLP

WellPoint, Inc. (NYSE: WLP) today announced that second quarter 2013 net income was $800.1 million, or $2.64 per share. These results included net investment gains of approximately $0.09 per share, partially offset by costs of $0.05 per share related to the early termination notice of Amerigroup’s pharmacy benefits management (“PBM”) contract. Net income in the second quarter of 2012 was $643.6 million, or $1.94 per share, and included net costs of approximately $0.10 per share for litigation and acquisition-related expenses, partially offset by net investment gains.

Excluding the items noted in each period, adjusted net income was $2.60 per share in the second quarter of 2013, an increase of 27.5 percent compared with adjusted net income of $2.04 per share in the prior year quarter (refer to GAAP reconciliation table for a reconciliation to the most directly comparable measure calculated in accordance with U.S. generally accepted accounting principles, or “GAAP”).

“We are pleased with our second quarter results and encouraged by the positive momentum we have across the organization. Our Commercial businesses continue to perform well and we have achieved improvements in our Medicaid operations, largely reflecting benefits from the Amerigroup transaction,” said Joseph Swedish, chief executive officer. “Looking ahead, we continue to actively prepare for the coming marketplace changes, and believe we are well-positioned for the significant growth opportunities on the horizon. We’re also seeing improving trends in the Local Group and National Account ASO markets, and expect membership growth from those areas next year.”

"Our quarterly results were ahead of our forecast and supported by higher than expected operating cash flow, a strong balance sheet and stability in the operating environment. We have modestly raised our full year EPS and operating cash flow outlooks, reflecting our strong year-to-date performance. However, we are still being prudent given our continued expectation for a fluid environment and investment spending over the second half of the year as we prepare for 2014," said Wayne DeVeydt, executive vice president and chief financial officer.

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