Universal American Corp. Reports Third Quarter 2012 Results; Announces $1.00 Per Share Special Dividend

Universal American Corp. (NYSE: UAM) today announced financial results for the quarter ended September 30, 2012.

Third Quarter 2012 Highlights
  • Net income was $13.8 million, or $0.16 per share.
  • Revenues were $549 million.

Special Cash Dividend

On November 1, 2012, Universal American’s board of directors approved the payment of a special cash dividend of $1.00 per share, payable on November 19, 2012 to shareholders of record as of November 12, 2012. As of November 1, 2012, there were approximately 88.3 million shares of common stock outstanding.

2012 Guidance

Universal American expects to earn approximately $0.64 to $0.68 per diluted share for 2012, excluding any realized capital gains or losses and investments in Accountable Care Organizations (ACOs), our Medicare Advantage business and other growth opportunities.

Results of Third Quarter 2012

Universal American’s reported net income for the third quarter of 2012 was $13.8 million, or $0.16 per share. These results include the following after-tax items:
  • $3.0 million, or $0.03 per share, of net realized investment gains;
  • $1.4 million, or $0.02 per share of non-recurring tax benefit;
  • $0.5 million, or $0.01 per share, of expenses related to the vesting of options and restricted stock as part of the Part D sale and APS Healthcare transaction costs;
  • $3.9 million, or $0.04 per share, of ACO start-up costs; and
  • $1.1 million, or $0.01 per share, of investment in our Medicare Advantage business, largely in Stars related programs.

Excluding these items, adjusted net income for the third quarter of 2012 was $14.9 million, or $0.17 per share. Total revenues for the third quarter of 2012 were $549 million.

Nine Months Ended September 30, 2012

Universal American's reported net income for the nine months ended September 30, 2012 was $39.3 million, or $0.45 per share. These results include the following after-tax items:
  • $8.4 million, or $0.10 per share, of net realized investment gains;
  • $1.5 million, or $0.02 per share of non-recurring tax benefit;
  • $4.8 million, or $0.06 per share, of expenses related to the vesting of options and restricted stock as part of the Part D sale and APS Healthcare transaction costs;
  • $10.2 million, or $0.12 per share, of ACO start-up costs; and
  • $2.2 million, or $0.03 per share, of investment in our Medicare Advantage business, largely in Stars related programs.

Excluding these items, adjusted net income for the first nine months of 2012 was $46.6 million, or $0.54 per share. Total revenues for the first nine months of 2012 were approximately $1.6 billion.

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