UnitedHealth Group Reports Second Quarter Results
- Second Quarter Revenues of $46.5 Billion Grew 28% Year-Over-Year
- UnitedHealthcare Grew Revenues 14% Year-Over-Year,
Adding 2.1 Million More People in the Past 12 Months
- Optum Grew Revenues 52% Year-Over-Year to $20.6 Billion
- Cash Flows from Operations were $1.7 Billion in the Quarter
- GAAP Net Earnings of $1.81 Per Share Grew 10% Year-Over-Year
- Adjusted Net Earnings of $1.96 Per Share Grew 13% Year-Over-Year
UnitedHealth Group (NYSE:UNH) reported second quarter results reflecting well-balanced growth and disciplined execution across
its core businesses.
“Our businesses were privileged again this quarter to have grown to serve more customers and consumers. We continue to invest to
differentiate our products and services to better serve our customers and fuel future growth,” said Stephen J. Hemsley, chief
executive officer of UnitedHealth Group.
The Company narrowed its outlook for 2016 GAAP net earnings to a range of $7.25 to $7.40 per share and adjusted net earnings to
a range of $7.80 to $7.95 per share.
|
Quarterly Financial Performance |
|
|
Three Months Ended
|
|
|
June 30, |
|
June 30, |
|
March 31, |
|
|
2016
|
|
2015
|
|
2016
|
Revenues |
|
$46.5 billion |
|
$36.3 billion |
|
$44.5 billion |
Earnings From Operations |
|
$3.2 billion |
|
$2.9 billion |
|
$3.0 billion |
Net Margin |
|
3.8% |
|
4.4% |
|
3.6% |
|
|
|
|
|
|
|
- UnitedHealth Group second quarter 2016 revenues grew 28 percent or $10.2 billion year-over-year to
$46.5 billion. Growth was broad-based, with all businesses driving sequential quarterly revenue increases. Year-over-year,
UnitedHealthcare revenues grew 14 percent and Optum revenues grew 52 percent, with revenue growth by business ranging from 18
percent to 69 percent at Optum.
- Second quarter earnings from operations grew 11 percent year-over-year to $3.2 billion and adjusted
net earnings grew 13 percent to $1.96 per share. Strengthened sequential margins at Optum lifted the consolidated net margin 20
basis points higher to 3.8 percent, with comparable business mix.
- Second quarter 2016 cash flows from operations of $1.7 billion increased 45 percent year-over-year
and were 1 times net earnings in the quarter, up from 0.7 times net earnings in second quarter 2015. Year-to-date 2016 cash flows
from operations of $4 billion grew 17 percent year-over-year and were 1.2 times year-to-date net earnings.
- The consolidated medical care ratio increased 30 basis points to 82.0 percent in the second quarter,
and included more than 50 basis points or approximately $200 million of additional full year losses from ACA-compliant individual
products above previous projections and fully absorbed within second quarter results.
- First half 2016 medical reserves developed favorably year-to-date by $300 million, compared to $130
million in favorable development in the first six months of 2015. Within the 2016 result, reserves developed unfavorably by $100
million in the second quarter, of which $60 million related to specific items from prior years that do not impact on-going
medical trends. The current year component of development was due entirely to higher medical costs in ACA-compliant individual
products. Overall, medical cost trends remain well-controlled and consistent with expectations.
- The second quarter 2016 operating cost ratio of 14.6 percent decreased 120 basis points
year-over-year, primarily due to changes in business mix. Effective operating cost management and long-standing seasonal spending
patterns combined to improve the operating cost ratio 60 basis points on a sequential quarter basis.
- The second quarter tax rate of 40 percent reflected the first quarter 2016 adoption of a new
accounting standard for stock-based compensation.
- Second quarter 2016 days claims payable of 51 days increased 3 days year-over-year and were stable
sequentially; days sales outstanding of 18 days increased 3 days year-over-year and 2 days sequentially, primarily due to higher
government receivable balances.
- The Company’s debt to total capital ratio was 47.8 percent at June 30, 2016, down from 48.7 percent
at year end 2015. Second quarter 2016 annualized return on equity of 19.6 percent was consistent with second quarter 2015
performance.
- During second quarter 2016 the Company increased the annual dividend payment rate by 25 percent to
$2.50 per share.
UnitedHealthcare provides health care benefits, serving individuals and employers ranging from sole proprietorships to large,
multi-site and national and international organizations; delivers health and well-being benefits to Medicare beneficiaries and
retirees; manages health care benefit programs on behalf of state Medicaid and community programs; and serves the nation’s military
service members, retirees and their families through the TRICARE program.
|
Quarterly Financial Performance |
|
|
Three Months Ended
|
|
|
June 30, |
|
June 30, |
|
March 31, |
|
|
2016
|
|
2015
|
|
2016
|
Revenues |
|
$37.6 billion |
|
$33.1 billion |
|
$35.9 billion |
Earnings From Operations |
|
$1.9 billion |
|
$2.0 billion |
|
$1.9 million |
Operating Margin |
|
5.2% |
|
6.1% |
|
5.2% |
|
|
|
|
|
|
|
- UnitedHealthcare grew over the past year to serve over 2.1 million more people in domestic medical
benefits markets, including 320,000 more people in the second quarter. This broad-based growth trend is reflected in
UnitedHealthcare’s second quarter revenue growth of 14 percent or $4.5 billion year-over-year, to $37.6 billion.
- Second quarter 2016 earnings from operations for UnitedHealthcare of $1.9 billion decreased 4 percent
year-over-year. UnitedHealthcare’s second quarter operating margin of 5.2 percent was stable sequentially but decreased 90 basis
points year-over-year, primarily due to $200 million in ACA-compliant individual product losses beyond projections, as well as
overall reserve development.
UnitedHealthcare Employer & Individual
- Second quarter 2016 UnitedHealthcare Employer & Individual revenues of $13.5 billion grew $1.7
billion or 14 percent year-over-year, driven by growth in the number of consumers served and price increases to match medical
cost trends on risk-based products.
- UnitedHealthcare Employer & Individual grew to serve 60,000 more people in the second quarter and
1.1 million more people year-over-year. Second quarter was led by commercial group and individual risk-based growth.
UnitedHealthcare Medicare & Retirement
- Second quarter 2016 UnitedHealthcare Medicare & Retirement revenues of $14.3 billion grew $1.7
billion or 14 percent year-over-year, driven by growth in services to seniors through both individual and employer-sponsored
group medical products in 2016.
- In Medicare Advantage, UnitedHealthcare grew to serve 345,000 more seniors year-over-year, an 11
percent increase, including 20,000 seniors in the second quarter.
- Medicare Supplement products grew 6 percent to serve 250,000 more people year-over-year,
including 15,000 seniors in the second quarter.
- UnitedHealthcare’s stand-alone Medicare Part D program served 4.9 million people at June 30,
2016, a decrease of 135,000 people year-over-year, reflecting a planned pull-back in Part D in 2016.
UnitedHealthcare Community & State
- Second quarter 2016 UnitedHealthcare Community & State revenues of $8.3 billion grew $1.1 billion
or 15 percent year-over-year, driven by strong overall growth and an increasing mix of higher need members.
- In the past year, UnitedHealthcare grew to serve 465,000 more people in Medicaid, an increase of 9
percent, including 225,000 more people in second quarter 2016.
Optum is a health services business serving the broad health care marketplace, including payers, care providers, employers,
governments, life sciences companies and consumers. Using advanced data analytics and technology, Optum’s people help improve
overall health system performance: optimizing care quality, reducing costs and improving the consumer experience and care provider
performance.
|
Quarterly Financial Performance |
|
|
Three Months Ended
|
|
|
June 30, |
|
June 30, |
|
March 31, |
|
|
2016
|
|
2015
|
|
2016
|
Revenues |
|
$20.6 billion |
|
$13.6 billion |
|
$19.7 billion |
Earnings From Operations |
|
$1.3 billion |
|
$864 million |
|
$1.1 billion |
Operating Margin |
|
6.1% |
|
6.4% |
|
5.6% |
|
|
|
|
|
|
|
- Second quarter 2016 Optum revenues of $20.6 billion grew $7 billion or 52 percent year-over-year.
Optum earnings from operations grew 46 percent or $400 million year-over-year to $1.3 billion, with earnings growth at or above
20 percent and solid operating margins across all business segments. Strong growth in pharmacy care services increased operating
earnings and reduced Optum’s overall operating margin by 30 basis points year-over-year to 6.1 percent.
- Each business grew revenues and earnings from operations sequentially, with strong performance on a
comparable business mix lifting Optum’s operating margin by 50 basis points in the second quarter.
- OptumHealth revenues of $4.1 billion grew $627 million or 18 percent
year-over-year due to growth in its health care delivery businesses and expansion of behavioral services into new Medicaid
markets. OptumHealth served more than 80 million consumers at June 30, 2016, reflecting growth of 4 million people or 6
percent year-over-year.
- OptumInsight revenues grew 25 percent year-over-year to $1.8 billion
in the second quarter of 2016, driven by growth in technology services, care provider revenue management services and payer
service offerings. OptumInsight’s revenue backlog grew to $11.3 billion at June 30, 2016, an increase of $1.5 billion or 15
percent year-over-year.
- OptumRx revenues of $15.1 billion grew 69 percent year-over-year,
driven by acquisitions and organic growth. OptumRx grew script fulfillments by 69 percent to 250 million adjusted scripts in
the second quarter of 2016.
About UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is a diversified health and well-being company dedicated to helping people live healthier lives
and helping make the health system work better for everyone. UnitedHealth Group offers a broad spectrum of products and services
through two distinct platforms: UnitedHealthcare, which provides health care coverage and benefits services; and Optum, which
provides information and technology-enabled health services. For more information, visit UnitedHealth Group at www.unitedhealthgroup.com or follow @UnitedHealthGrp on Twitter.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the Company’s results, strategy and future outlook on a conference call
with investors at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live webcast of this conference call from the
Investors page of the Company’s website (www.unitedhealthgroup.com). Following the call, a webcast replay will be available on the same site through
August 2, 2016. The conference call replay can also be accessed by dialing 1-800-283-4642. This earnings release and the Form 8-K
dated July 19, 2016 can also be accessed from the Investors page of the Company’s website.
Non-GAAP Financial Measures
This news release presents information about the Company’s adjusted net earnings per share, which is a non-GAAP financial
measure provided as a complement to the results provided in accordance with accounting principles generally accepted in the United
States of America (“GAAP”). A reconciliation of the foregoing non-GAAP financial measure to the most directly comparable GAAP
financial measure is provided in the accompanying tables found at the end of this release.
Forward-Looking Statements
The statements, estimates, projections, guidance or outlook contained in this document include “forward-looking” statements
within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These statements are intended to take advantage
of the “safe harbor” provisions of the PSLRA. Generally the words “believe,” “expect,” “intend,” “estimate,” “anticipate,”
“forecast,” “outlook,” “plan,” “project,” “should” and similar expressions identify forward-looking statements, which generally are
not historical in nature. These statements may contain information about financial prospects, economic conditions and trends and
involve risks and uncertainties. We caution that actual results could differ materially from those that management expects,
depending on the outcome of certain factors.
Some factors that could cause actual results to differ materially from results discussed or implied in the forward-looking
statements include: our ability to effectively estimate, price for and manage our medical costs, including the impact of any new
coverage requirements; new laws or regulations, or changes in existing laws or regulations, or their enforcement or application,
including increases in medical, administrative, technology or other costs or decreases in enrollment resulting from U.S., Brazilian
and other jurisdictions’ regulations affecting the health care industry; assessments for insolvent payers under state guaranty fund
laws; our ability to achieve improvement in CMS Star ratings and other quality scores that impact revenue; reductions in revenue or
delays to cash flows received under Medicare, Medicaid and TRICARE programs, including sequestration and the effects of a prolonged
U.S. government shutdown or debt ceiling constraints; changes in Medicare, including changes in payment methodology, the CMS Star
ratings program or the application of risk adjustment data validation audits; our participation in federal and state health
insurance exchanges which entail uncertainties associated with mix and volume of business; cyber-attacks or other privacy or data
security incidents; failure to comply with privacy and data security regulations; regulatory and other risks and uncertainties of
the pharmacy benefits management industry; competitive pressures, which could affect our ability to maintain or increase our market
share; challenges to our public sector contract awards; our ability to execute contracts on competitive terms with physicians,
hospitals and other service providers; failure to achieve targeted operating cost productivity improvements, including savings
resulting from technology enhancement and administrative modernization; increases in costs and other liabilities associated with
increased litigation, government investigations, audits or reviews; failure to manage successfully our strategic alliances or
complete or receive anticipated benefits of acquisitions and other strategic transactions, including our acquisition of Catamaran;
fluctuations in foreign currency exchange rates on our reported shareholders’ equity and results of operations; downgrades in our
credit ratings; adverse economic conditions, including decreases in enrollment resulting from increases in the unemployment rate
and commercial attrition; the performance of our investment portfolio; impairment of the value of our goodwill and intangible
assets in connection with dispositions or if estimated future results do not adequately support goodwill and intangible assets
recorded for our existing businesses or the businesses that we acquire; increases in health care costs resulting from large-scale
medical emergencies; failure to maintain effective and efficient information systems or if our technology products do not operate
as intended; and our ability to obtain sufficient funds from our regulated subsidiaries or the debt or capital markets to fund our
obligations, to maintain our debt to total capital ratio at targeted levels, to maintain our quarterly dividend payment cycle or to
continue repurchasing shares of our common stock.
This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as
certain risk factors that may affect our business operations, financial condition and results of operations, in our filings with
the Securities and Exchange Commission, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K. Any or all forward-looking statements we make may turn out to be wrong, and can be affected by inaccurate
assumptions we might make or by known or unknown risks and uncertainties. By their nature, forward-looking statements are not
guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict
or quantify. Actual future results may vary materially from expectations expressed or implied in this document or any of our prior
communications. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.
We do not undertake to update or revise any forward-looking statements, except as required by applicable securities laws.
|
UNITEDHEALTH GROUP |
Earnings Release Schedules and Supplementary Information |
Three and Six Months Ended June 30, 2016 |
|
|
- Condensed Consolidated Statements of Operations |
- Condensed Consolidated Balance Sheets |
- Condensed Consolidated Statements of Cash Flows |
- Supplemental Financial Information - Businesses |
- Supplemental Financial Information - Business Metrics |
- Reconciliation of Non-GAAP Financial Measure |
|
UNITEDHEALTH GROUP |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
(in millions, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
|
|
|
|
|
|
|
|
Premiums |
|
$ |
36,413 |
|
|
$ |
31,961 |
|
|
$ |
71,224 |
|
|
$ |
63,635 |
|
Products |
|
|
6,610 |
|
|
|
1,223 |
|
|
|
13,003 |
|
|
|
2,453 |
|
Services |
|
|
3,269 |
|
|
|
2,865 |
|
|
|
6,409 |
|
|
|
5,571 |
|
Investment and other income |
|
|
193 |
|
|
|
214 |
|
|
|
376 |
|
|
|
360 |
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
46,485 |
|
|
|
36,263 |
|
|
|
91,012 |
|
|
|
72,019 |
|
|
|
|
|
|
|
|
|
|
Operating costs |
|
|
|
|
|
|
|
|
Medical costs |
|
|
29,872 |
|
|
|
26,127 |
|
|
|
58,302 |
|
|
|
51,917 |
|
Operating costs |
|
|
6,793 |
|
|
|
5,738 |
|
|
|
13,551 |
|
|
|
11,572 |
|
Cost of products sold |
|
|
6,106 |
|
|
|
1,124 |
|
|
|
11,983 |
|
|
|
2,238 |
|
Depreciation and amortization |
|
|
511 |
|
|
|
379 |
|
|
|
1,013 |
|
|
|
757 |
|
|
|
|
|
|
|
|
|
|
Total operating costs |
|
|
43,282 |
|
|
|
33,368 |
|
|
|
84,849 |
|
|
|
66,484 |
|
|
|
|
|
|
|
|
|
|
Earnings from operations |
|
|
3,203 |
|
|
|
2,895 |
|
|
|
6,163 |
|
|
|
5,535 |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(271 |
) |
|
|
(151 |
) |
|
|
(530 |
) |
|
|
(301 |
) |
|
|
|
|
|
|
|
|
|
Earnings before income taxes |
|
|
2,932 |
|
|
|
2,744 |
|
|
|
5,633 |
|
|
|
5,234 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
(1,172 |
) |
|
|
(1,159 |
) |
|
|
(2,246 |
) |
|
|
(2,236 |
) |
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
1,760 |
|
|
|
1,585 |
|
|
|
3,387 |
|
|
|
2,998 |
|
|
|
|
|
|
|
|
|
|
Earnings attributable to noncontrolling interests |
|
|
(6 |
) |
|
|
- |
|
|
|
(22 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to UnitedHealth Group common shareholders
|
|
$ |
1,754 |
|
|
$ |
1,585 |
|
|
$ |
3,365 |
|
|
$ |
2,998 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to UnitedHealth Group common shareholders
|
|
$ |
1.81 |
|
|
$ |
1.64 |
|
|
$ |
3.48 |
|
|
$ |
3.10 |
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share attributable to UnitedHealth Group common shareholders (a)
|
|
$ |
1.96 |
|
|
$ |
1.73 |
|
|
$ |
3.77 |
|
|
$ |
3.28 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average common shares outstanding |
|
|
967 |
|
|
|
966 |
|
|
|
967 |
|
|
|
967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See page 6 for a reconciliation of the non-GAAP measure
|
|
UNITEDHEALTH GROUP |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2016 |
|
2015 |
Assets |
|
|
|
|
Cash and short-term investments |
|
$ |
10,974 |
|
$ |
12,911 |
Accounts receivable, net |
|
|
9,346 |
|
|
6,523 |
Other current assets |
|
|
12,978 |
|
|
12,205 |
|
|
|
|
|
Total current assets |
|
|
33,298 |
|
|
31,639 |
|
|
|
|
|
Long-term investments |
|
|
22,211 |
|
|
18,792 |
Other long-term assets |
|
|
64,094 |
|
|
60,823 |
|
|
|
|
|
Total assets |
|
$ |
119,603 |
|
$ |
111,254 |
|
|
|
|
|
|
|
|
|
|
Liabilities, redeemable noncontrolling interests and equity |
|
|
|
|
Medical costs payable |
|
$ |
16,632 |
|
$ |
14,330 |
Commercial paper and current maturities of long-term debt |
|
|
6,364 |
|
|
6,634 |
Other current liabilities |
|
|
24,380 |
|
|
21,934 |
|
|
|
|
|
Total current liabilities |
|
|
47,376 |
|
|
42,898 |
|
|
|
|
|
Long-term debt, less current maturities |
|
|
26,834 |
|
|
25,331 |
Other long-term liabilities |
|
|
7,362 |
|
|
7,564 |
Redeemable noncontrolling interests |
|
|
1,744 |
|
|
1,736 |
Equity |
|
|
36,287 |
|
|
33,725 |
|
|
|
|
|
Total liabilities, redeemable noncontrolling interests and equity |
|
$ |
119,603 |
|
$ |
111,254 |
|
|
|
|
|
|
|
UNITEDHEALTH GROUP |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2016 |
|
2015 |
Operating Activities |
|
|
|
|
Net earnings |
|
$ |
3,387 |
|
|
$ |
2,998 |
|
Noncash items: |
|
|
|
|
Depreciation and amortization |
|
|
1,013 |
|
|
|
757 |
|
Deferred income taxes and other |
|
|
(161 |
) |
|
|
(190 |
) |
Share-based compensation |
|
|
262 |
|
|
|
211 |
|
Net changes in operating assets and liabilities |
|
|
(500 |
) |
|
|
(344 |
) |
Cash flows from operating activities |
|
|
4,001 |
|
|
|
3,432 |
|
|
|
|
|
|
Investing Activities |
|
|
|
|
Purchases of investments, net of sales and maturities |
|
|
(3,581 |
) |
|
|
(404 |
) |
Purchases of property, equipment and capitalized software |
|
|
(813 |
) |
|
|
(716 |
) |
Cash paid for acquisitions, net |
|
|
(2,035 |
) |
|
|
(1,778 |
) |
Other, net |
|
|
16 |
|
|
|
48 |
|
Cash flows used for investing activities |
|
|
(6,413 |
) |
|
|
(2,850 |
) |
|
|
|
|
|
Financing Activities |
|
|
|
|
Common share repurchases |
|
|
(980 |
) |
|
|
(953 |
) |
Dividends paid |
|
|
(1,071 |
) |
|
|
(833 |
) |
Net change in commercial paper and long-term debt |
|
|
1,008 |
|
|
|
670 |
|
Other, net |
|
|
684 |
|
|
|
995 |
|
Cash flows used for financing activities |
|
|
(359 |
) |
|
|
(121 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
65 |
|
|
|
(69 |
) |
(Decrease) increase in cash and cash equivalents |
|
|
(2,706 |
) |
|
|
392 |
|
Cash and cash equivalents, beginning of period |
|
|
10,923 |
|
|
|
7,495 |
|
Cash and cash equivalents, end of period |
|
$ |
8,217 |
|
|
$ |
7,887 |
|
|
|
|
|
|
|
|
|
|
UNITEDHEALTH GROUP |
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESSES |
(in millions, except percentages) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Revenues |
|
|
|
|
|
|
|
|
UnitedHealthcare |
|
$ |
37,556 |
|
|
$ |
33,073 |
|
|
$ |
73,456 |
|
|
$ |
65,696 |
|
Optum |
|
|
20,623 |
|
|
|
13,588 |
|
|
|
40,307 |
|
|
|
26,403 |
|
Eliminations |
|
|
(11,694 |
) |
|
|
(10,398 |
) |
|
|
(22,751 |
) |
|
|
(20,080 |
) |
|
|
|
|
|
|
|
|
|
Total consolidated revenues |
|
$ |
46,485 |
|
|
$ |
36,263 |
|
|
$ |
91,012 |
|
|
$ |
72,019 |
|
|
|
|
|
|
|
|
|
|
Earnings from Operations |
|
|
|
|
|
|
|
|
UnitedHealthcare |
|
$ |
1,942 |
|
|
$ |
2,031 |
|
|
$ |
3,796 |
|
|
$ |
3,929 |
|
Optum (a) |
|
|
1,261 |
|
|
|
864 |
|
|
|
2,367 |
|
|
|
1,606 |
|
|
|
|
|
|
|
|
|
|
Total consolidated earnings from operations |
|
$ |
3,203 |
|
|
$ |
2,895 |
|
|
$ |
6,163 |
|
|
$ |
5,535 |
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
|
|
|
|
|
|
|
UnitedHealthcare |
|
|
5.2 |
% |
|
|
6.1 |
% |
|
|
5.2 |
% |
|
|
6.0 |
% |
Optum |
|
|
6.1 |
% |
|
|
6.4 |
% |
|
|
5.9 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
Consolidated operating margin |
|
|
6.9 |
% |
|
|
8.0 |
% |
|
|
6.8 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
UnitedHealthcare Employer & Individual |
|
$ |
13,509 |
|
|
$ |
11,845 |
|
|
$ |
26,329 |
|
|
$ |
23,268 |
|
UnitedHealthcare Medicare & Retirement |
|
|
14,294 |
|
|
|
12,559 |
|
|
|
28,359 |
|
|
|
25,340 |
|
UnitedHealthcare Community & State |
|
|
8,263 |
|
|
|
7,205 |
|
|
|
15,991 |
|
|
|
14,110 |
|
UnitedHealthcare Global |
|
|
1,490 |
|
|
|
1,464 |
|
|
|
2,777 |
|
|
|
2,978 |
|
|
|
|
|
|
|
|
|
|
OptumHealth |
|
|
4,065 |
|
|
|
3,438 |
|
|
|
8,063 |
|
|
|
6,727 |
|
OptumInsight |
|
|
1,762 |
|
|
|
1,409 |
|
|
|
3,429 |
|
|
|
2,799 |
|
OptumRx |
|
|
15,073 |
|
|
|
8,913 |
|
|
|
29,346 |
|
|
|
17,208 |
|
Optum eliminations |
|
|
(277 |
) |
|
|
(172 |
) |
|
|
(531 |
) |
|
|
(331 |
) |
|
|
|
|
|
|
|
|
|
(a) Earnings from operations for Optum for the three and six months ended June 30, 2016 included
$304 and $604 for OptumHealth; $333 and $579 for OptumInsight; and $624 and $1,184 for OptumRx, respectively. Earnings from
operations for Optum for the three and six months ended June 30, 2015 included $253 and $487 for OptumHealth; $271 and $493
for OptumInsight; and $340 and $626 for OptumRx, respectively.
|
|
UNITEDHEALTH GROUP |
SUPPLEMENTAL FINANCIAL INFORMATION - BUSINESS METRICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITEDHEALTHCARE CUSTOMER PROFILE |
(in thousands) |
|
|
|
|
|
|
|
|
|
People Served |
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
June 30, 2015 |
|
|
|
|
|
|
|
|
|
Commercial risk-based |
|
|
8,695 |
|
|
8,600 |
|
|
8,285 |
|
|
8,105 |
Commercial fee-based, including TRICARE |
|
|
21,790 |
|
|
21,825 |
|
|
21,445 |
|
|
21,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial |
|
|
30,485 |
|
|
30,425 |
|
|
29,730 |
|
|
29,400 |
|
|
|
|
|
|
|
|
|
Medicare Advantage |
|
|
3,550 |
|
|
3,530 |
|
|
3,235 |
|
|
3,205 |
Medicaid |
|
|
5,675 |
|
|
5,450 |
|
|
5,305 |
|
|
5,210 |
Medicare Supplement (Standardized) |
|
|
4,215 |
|
|
4,200 |
|
|
4,035 |
|
|
3,965 |
|
|
|
|
|
|
|
|
|
Total Public and Senior |
|
|
13,440 |
|
|
13,180 |
|
|
12,575 |
|
|
12,380 |
Total UnitedHealthcare - Domestic Medical |
|
|
43,925 |
|
|
43,605 |
|
|
42,305 |
|
|
41,780 |
International |
|
|
4,050 |
|
|
4,065 |
|
|
4,090 |
|
|
4,080 |
|
|
|
|
|
|
|
|
|
Total UnitedHealthcare - Medical |
|
|
47,975 |
|
|
47,670 |
|
|
46,395 |
|
|
45,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medicare Part D stand-alone |
|
|
4,940 |
|
|
4,990 |
|
|
5,060 |
|
|
5,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTUM PERFORMANCE METRICS |
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
March 31, 2016 |
|
December 31, 2015 |
|
June 30, 2015 |
|
|
|
|
|
|
|
|
|
OptumHealth Consumers Served (in millions) |
|
|
80 |
|
|
79 |
|
|
78 |
|
|
76 |
OptumInsight Contract Backlog (in billions) |
|
$ |
11.3 |
|
$ |
11.0 |
|
$ |
10.4 |
|
$ |
9.8 |
OptumRx Quarterly Adjusted Scripts (in millions) |
|
|
250 |
|
|
252 |
|
|
258 |
|
|
148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: UnitedHealth Group served 132 million unique individuals across
all businesses at June 30, 2016, 132 million at March 31, 2016, 129 million at December 31, 2015, and 102 million at June 30,
2015. |
|
|
UNITEDHEALTH GROUP |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE |
ADJUSTED NET EARNINGS AND EARNINGS PER SHARE (a) |
(in millions, except per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
Projected
Year Ended
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
December 31, 2016 |
GAAP net earnings |
|
$ |
1,754 |
|
|
$ |
1,585 |
|
|
$ |
3,365 |
|
|
$ |
2,998 |
|
|
$7,025 to $7,200 |
Intangible amortization |
|
|
223 |
|
|
|
133 |
|
|
|
438 |
|
|
|
265 |
|
|
~880 |
Tax effect of intangible amortization |
|
|
(83 |
) |
|
|
(47 |
) |
|
|
(158 |
) |
|
|
(93 |
) |
|
~(325) |
Adjusted net earnings |
|
$ |
1,894 |
|
|
$ |
1,671 |
|
|
$ |
3,645 |
|
|
$ |
3,170 |
|
|
$7,575 to $7,750 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share |
|
$ |
1.81 |
|
|
$ |
1.64 |
|
|
$ |
3.48 |
|
|
$ |
3.10 |
|
|
$7.25 to $7.40 |
Intangible amortization per share |
|
|
0.23 |
|
|
|
0.14 |
|
|
|
0.45 |
|
|
|
0.27 |
|
|
~0.90 |
Tax effect of intangible amortization per share |
|
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
(0.16 |
) |
|
|
(0.09 |
) |
|
~(0.35) |
Adjusted diluted earnings per share |
|
$ |
1.96 |
|
|
$ |
1.73 |
|
|
$ |
3.77 |
|
|
$ |
3.28 |
|
|
$7.80 to $7.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) GAAP and adjusted net earnings and earnings per share are attributable to UnitedHealth Group
common shareholders.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measure |
Adjusted earnings per share is a non-GAAP financial
measure and should not be considered a substitute for or superior to a financial measure calculated in accordance with GAAP.
Management believes that the use of adjusted earnings per share provides investors and management useful information about the
earnings impact of acquisition-related intangible asset amortization. This non-GAAP measure does not reflect all of the
expenses associated with the operations of our business as determined in accordance with GAAP. As a result, one should not
consider this measure in isolation. |
|
|
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UnitedHealth Group
Investors:
Brett Manderfeld, 952-936-7216
Vice President
or
John S. Penshorn, 952-936-7214
Senior Vice President
or
Media:
Don Nathan, 952-936-1885
Senior Vice President
or
Tyler Mason, 424-333-6122
Vice President
View source version on businesswire.com: http://www.businesswire.com/news/home/20160719005573/en/