Mar 3 2014
Magellan Health Services, Inc. (NASDAQ:MGLN) today reported financial results for the fourth quarter and full year 2013, as summarized below. For the year ended December 31, 2013, the company reported net revenue of $3.5 billion, segment profit of $259.4 million, and net income of $125.3 million, or $4.53 per diluted common share. Segment profit is equal to net revenues less the sum of cost of care, cost of goods sold, direct service costs and other operating expenses, and includes income from unconsolidated subsidiaries, but excludes income from non-controlling interests held by other parties, as well as stock compensation expense.
As of December 31, 2013, the company had unrestricted cash and investments of $261.4 million.
"Magellan Health Services is a very different company today than it was a year ago," said Barry M. Smith, chairman and chief executive officer of Magellan Health Services. "While our core businesses continue to perform admirably, we have made significant advancements in our two strategic initiatives. Magellan Complete Care is operational and continues to expand. In addition, we now have a single, integrated and growing pharmacy operation with a complete set of product offerings. The two acquisitions completed last year, Partners Rx and AlphaCare, have given us additional scale, capabilities, and market focus to further these strategies.
"In addition, we've implemented changes to our operations and products to ensure that Magellan is nimble, competitive and poised to respond quickly to the changing health care marketplace. We are moving closer to our vision of becoming a growth company."
Outlook
"Magellan Health Services posted solid financial results during 2013, and the continued progress on our strategic growth initiatives will position us for future success," said Jonathan N. Rubin, chief financial officer. "Additionally, while we continue to invest in our business, we also returned capital to shareholders through our share repurchase program.
"Relative to 2014, we are maintaining the ranges discussed in our December guidance call for net revenue of $3.6 billion to $3.8 billion, net income of $57 million to $73 million, and segment profit of $215 million to $235 million. We are also maintaining our guidance for cash flow from operations in the range of $181 million to $203 million. Taking into account the impact of share repurchase activity through February 26, 2014, but not considering any potential future share repurchases, our guidance range for fully diluted EPS is estimated to be $2.02 to $2.58 per fully diluted share."
SOURCE Magellan Health Services Inc.