|Third Quarter Financial Results*|
|Three Months Ended September 30||Nine Months Ended September 30|
|(Millions, except per share results)||2016||2015||Inc/ (Dec)||2016||2015||Inc/ (Dec)|
|Net Income (Loss)||25.5||(7.8||)||N/A||42.7||4.1||941.5||%|
|Adjusted Net Income*||33.3||18.9||76.2||%||67.1||58.0||15.7||%|
|Per Share Results:|
|Earnings (Loss) per Share||1.06||(0.31||)||N/A||1.75||0.16||993.8||%|
|Adjusted Earnings per Share*||1.39||0.76||82.9||%||2.76||2.20||25.5||%|
|* Refer to the Basis of Presentation for a discussion of non-GAAP financial measures.|
- The increase in net revenue is attributable to new business and same store growth, as well as revenue from the Armed Forces Services Corporation (AFSC) and The Management Group (TMG) acquisitions, partially offset by the loss of revenues associated with terminated contracts.
- The change in net income between periods is due to the after-tax impact of higher segment profit, and a reduction in contingent consideration expense and stock compensation expense related to acquisitions.
- The increase in segment profit is primarily due to new business, improved results in our Magellan Complete Care (MCC) business, net same store growth, and the inclusion of AFSC and TMG results in the current quarter, partially offset by the impact of contract terminations. Included in segment profit this quarter is approximately $13 million of net favorable out-of-period items, primarily related to favorable medical claims development in the healthcare segment.
- The change in adjusted net income between periods was mainly due to the after-tax impact of higher segment profit in the current quarter.