Universal American Corp. Reports Second Quarter 2013 Results

Universal American Corp. (NYSE: UAM) today announced financial results for the quarter ended June 30, 2013.

Second Quarter 2013 Highlights
  • Net loss was $91.8 million, or $1.05 per share, which includes a $90.6 million (net of tax) non-cash goodwill impairment charge relating to APS Healthcare.
  • Revenues were $534 million.

Special Cash Dividend

On August 1, 2013, Universal American’s Board of Directors approved the payment of a special cash dividend of $1.60 per share, payable on August 19, 2013 to shareholders of record on August 12, 2013. As of August 1, 2013, there were approximately 88.8 million shares of common stock outstanding.

Stock Repurchase Program

The Board of Directors authorized the repurchase of up to $40 million of its outstanding common stock, which may occur from time to time as market conditions permit.

Results of Second Quarter 2013

We reported a net loss for the second quarter of 2013 of $91.8 million, or $1.05 per share. Adjusted net loss for the second quarter of 2013 was $1.4 million, or $0.02 per share, which excludes the following after-tax items:
  • $90.6 million, or $1.03 per share, of goodwill impairment relating to APS Healthcare;
  • $6.6 million, or $0.07 per share, of net realized investment gains; and
  • $6.4 million, or $0.07 per share, of ACO costs.

The Medicare Advantage results for the second quarter included $3.9 million, or $0.04 per share, after-tax, of unfavorable net prior period items.

Total revenues for the second quarter of 2013 were $534 million.

Six Months Ended June 30, 2013

We reported a net loss for the first half of 2013 of $77.9 million, or $0.89 per share. Adjusted net income for the first six months of 2013 was $15.8 million, or $0.18 per share, which excludes the following after-tax items:
  • $90.6 million, or $1.04 per share, of goodwill impairment relating to APS Healthcare;
  • $8.2 million, or $0.09 per share, of net realized investment gains;
  • $11.5 million, or $0.13 per share, of ACO costs; and
  • $0.2 million, or less than $0.01 per share of other non-recurring items.

The Medicare Advantage results for the first six months of 2013 included $10.4 million, or $0.12 per share, after-tax, of favorable net prior period items.

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