Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

Amerigroup Reports Second Quarter 2010 Results

Net Income of $67.2 Million or $1.31 per Diluted Share


News provided by

Amerigroup Corporation

Jul 30, 2010, 06:00 ET

Share this article

Share toX

Share this article

Share toX

VIRGINIA BEACH, Va., July 30, 2010 /PRNewswire-FirstCall/ -- Amerigroup Corporation (NYSE: AGP) today announced that net income for the second quarter of 2010 was $67.2 million, or $1.31 per diluted share, versus net income of $49.6 million, or $0.94 per diluted share, for the second quarter of 2009.  Second quarter of 2009 results were positively impacted by a tax adjustment of $0.43 per diluted share related to litigation settled in 2008.  Excluding the tax adjustment, second quarter of 2009 net income would have been $27.2 million, or $0.51 per diluted share. A reconciliation of this non-GAAP financial measure to GAAP is included on page 9 of this release.  

Highlights include:

  • Membership increased 41,000 members, or 2.2%, to approximately 1.9 million at the end of the second quarter compared to the first quarter of 2010, and a 10.5% increase over the second quarter of 2009.  
  • Second quarter total revenues were $1.4 billion, a 4.8% increase over the first quarter of 2010, and an 11.3% increase over the second quarter of 2009.  
  • Health benefits expense was 82.3% of premium revenues for the second quarter of 2010.  
  • Selling, general and administrative expenses were 7.5% of total revenues for the second quarter of 2010.
  • Cash provided by operations was $116.4 million for the three months ended June 30, 2010.
  • Unregulated cash and investments were $239.5 million as of June 30, 2010.
  • Medical claims payable, as of June 30, 2010, totaled $525.6 million compared to $549.2 million, as of March 31, 2010.
  • Days in claims payable was 41, compared to 43 days in the previous quarter.
  • The Company repurchased approximately 1.05 million shares of its common stock during the second quarter for approximately $36.7 million.
  • In May of 2010, the Texas Health and Human Services Commission announced that Amerigroup's Texas health plan was selected through a competitive procurement to expand health care coverage to seniors and people with disabilities in the six county service area surrounding Fort Worth.  Pending final contract negotiations, the Company anticipates beginning operations in early 2011.

"We are pleased with our performance in the second quarter and first-half of the year.  More than any other time in our history, our state partners need the value we offer – expanded access to care, better coordination of services and clinical outcomes, as well as cost containment for their Medicaid-dependant populations," said James G. Carlson, Amerigroup's chairman and chief executive officer.  "In particular, we are excited about our expansion of coverage to seniors and people with disabilities in Fort Worth, Texas, which is expected to begin in early 2011.  The STAR+PLUS program is a national model for how to enable people to live independently, improve the quality of their lives and save taxpayer dollars."

Premium Revenues

Premium revenues for the second quarter of 2010 increased 11.2% to $1.4 billion compared to $1.3 billion in the second quarter of 2009.  Sequentially, premium revenues increased $62.1 million, or 4.5%, compared with the first quarter of 2010.  

The sequential increase in premium revenues primarily reflects the impact of the previously announced New Jersey acquisition and launch of the Tennessee long-term care program, both of which occurred on March 1, 2010.   In addition, revenues benefited from continued membership increases across many of the Company's markets due to the macroeconomic environment driving expanded Medicaid participation.

Investment Income and Other Revenues

Second quarter investment income and other revenues were $8.6 million versus $6.5 million in the second quarter of 2009, and compared to $4.9 million in the first quarter of 2010.  Investment income and other revenue increased on a sequential basis due to the sale of a trademark for $4.0 million.

Health Benefits

Health benefits expenses, as a percent of premium revenues, were 82.3% for the second quarter of 2010 versus 85.9% in the second quarter of 2009, and compared to 83.5% in the first quarter of 2010.  The sequential decrease in the health benefits ratio was primarily due to continued moderate medical trends and normal seasonal declines in medical costs from the first to the second quarter.

Continuing what began most significantly in the fourth quarter of 2009, medical cost trends remained at moderate levels during the quarter.  Costs remained in line with or better than expectations in most markets, with all major categories of service exhibiting lower trends in recent periods.  

Favorable reserve development (net of associated accruals for experience rebate in Texas, applicable medical loss ratio floors, and other gain sharing arrangements with state customers) positively impacted the health benefits ratio in the second quarter by approximately 200 basis points compared to 250 basis points of favorable reserve development reported in the first quarter of 2010.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were 7.5% of total revenues for the second quarter of 2010, unchanged from the second quarter of 2009, and compared to 8.6% for the first quarter of 2010.  Selling, general and administrative expenses remained stable and at expected levels in the second quarter.  The selling, general and administrative expense ratio was elevated in the first quarter of 2010 due to variable compensation accruals.  

Premium Taxes

Second quarter premium taxes were $33.2 million versus $34.6 million for the second quarter of 2009, and compared to $31.5 million in the first quarter of 2010.   The composite premium tax rate was essentially unchanged from the first to the second quarter of 2010.

Balance Sheet Highlights

Cash and investments at June 30, 2010 totaled $1.5 billion of which $239.5 million was unregulated, compared to $257.4 million of unregulated cash and investments at the end of the first quarter of 2010.  Unregulated cash declined during the quarter primarily due to $36.7 million in share repurchase activity under the Company's ongoing stock repurchase program.  

The debt to total capital ratio decreased to 18.4%, as of June 30, 2010, from 18.8%, as of March 31, 2010.

Medical claims payable as of June 30, 2010 totaled $525.6 million compared to $549.2 million as of March 31, 2010.  Days in claims payable represented 41 days of health benefits expense, compared to 43 days in the previous quarter.  The primary factor that drove the decline in days in claims payable was an increase in claims processing speed.  

Included on page 9 is a table presenting the components of the change in medical claims payable for the six months ended June 30, 2010 and the year ended December 31, 2009.  

Cash Flow Highlights

Cash flow from operations totaled $109.6 million for the six months ended June 30, 2010 and $116.4 million for the three months ended June 30, 2010.  The key drivers of cash flow in the quarter were solid earnings and a net favorable change in working capital accounts.  

Second Quarter Earnings Call

Amerigroup senior management will discuss the Company's second quarter results on a conference call Friday, July 30, 2010 at 8:00 a.m. Eastern Daylight Time (EDT).  The conference can be accessed by dialing 866-260-3161 (domestic) or 706-679-7245 (international) approximately ten minutes prior to the start time of the call.  A recording of the call may be accessed by dialing 800-642-1687 (domestic) or 706-645-9291 (international) and providing passcode 84750550.  The replay will be available shortly after the conclusion of the call until Friday, August 6, at 11:59 p.m. EDT.  The conference call will also be available through the investors' page of the Company's web site, www.amerigroupcorp.com, or through www.earnings.com.  A 30-day replay of this webcast will be available on these web sites beginning approximately two hours following the conclusion of the live broadcast earnings conference call.

About Amerigroup Corporation

Amerigroup, a Fortune 500 Company, coordinates services for individuals in publicly funded health care programs. Serving approximately 1.9 million members in 11 states nationwide, Amerigroup accepts all eligible people regardless of age, sex, race or disability. The Company's product offerings do not utilize any individual underwriting nor deny coverage due to pre-existing medical conditions. Amerigroup is dedicated to offering real solutions that improve health care access and quality for its members, while proactively working to reduce the overall cost of care to taxpayers. For more information and real story examples of these solutions, please visit www.amerigroupcorp.com.

Forward-Looking Statements

This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the Securities and Exchange Commission's Fair Disclosure Regulation. This release contains certain ''forward-looking'' statements, including statements related to moderating medical cost trends and the timing and expansion of our services in Texas.  These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to: our inability to manage medical costs; our inability to operate new products and markets at expected levels, including, but not limited to, profitability, membership and targeted service standards; local, state and national economic conditions, including their effect on the rate-setting process and timing of payments; the effect of government regulations and changes in regulations governing the health care industry including the impact of recently enacted health care reform legislation; changes in Medicaid and Medicare payment levels and methodologies; increased use of services, increased cost of individual services, epidemics, pandemics, the introduction of new or costly treatments and technology, new mandated benefits, insured population characteristics and seasonal changes in the level of health care use; our ability to maintain and increase membership levels; our ability to enter into new markets or remain in existing markets; changes in market interest rates or any disruptions in the credit markets; our ability to maintain compliance with all minimum capital requirements; liabilities and other claims asserted against us; demographic changes; the competitive environment in which we operate; the availability and terms of capital to fund acquisitions, capital improvements and maintain capitalization levels required by state agencies; our ability to attract and retain qualified personnel; the unfavorable resolution of new or pending litigation; and catastrophes, including acts of terrorism or severe weather.

Investors should also refer to our annual report on Form 10-K for the year ended December 31, 2009 filed with the Securities and Exchange Commission ("SEC") and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with or furnished to the SEC, for a discussion of certain known risk factors that could cause our actual results to differ materially from our current estimates. Given these risks and uncertainties, we can give no assurances that any forward-looking statements will, in fact, transpire and, therefore, caution investors not to place undue reliance on them. We specifically disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.  

AMERIGROUP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(dollars in thousands, except per share data)

(unaudited)










Three months ended


Six months ended


June 30,


June 30,


2010


2009


2010


2009









Revenues:








Premium

$1,428,879


$1,284,890


$2,795,646


$2,502,337

Investment income and other

8,634


6,517


13,516


18,864

Total revenues

1,437,513


1,291,407


2,809,162


2,521,201

Expenses:








Health benefits

1,176,445


1,103,213


2,318,017


2,122,516

Selling, general and administrative

108,189


96,285


225,612


206,660

Premium taxes

33,172


34,623


64,644


62,741

Depreciation and amortization

8,905


9,680


17,615


18,006

Interest

4,019


4,232


8,009


8,470

Total expenses

1,330,730


1,248,033


2,633,897


2,418,393

Income before income taxes

106,783


43,374


175,265


102,808

Income tax expense (benefit)

39,570


(6,225)


65,870


16,300

Net income

$67,213


$49,599


$109,395


$86,508

















Diluted net income per share

$1.31


$0.94


$2.14


$1.63









Weighted average number of common  








shares and dilutive potential common  








shares outstanding

51,318,044


53,029,943


51,235,939


53,224,753

The following table sets forth selected operating ratios.  All ratios, with the exception of the health benefits ratio,

are shown as a percentage of total revenues.
















Three months ended


Six months ended



June 30,


June 30,



2010


2009


2010


2009

Premium revenue


99.4

%


99.5

%


99.5

%


99.3

%

Investment income and other


0.6



0.5



0.5



0.7


Total revenues


100.0

%


100.0

%


100.0

%


100.0

%

Health benefits [1]


82.3

%


85.9

%


82.9

%


84.8

%

Selling, general and administrative expenses


7.5

%


7.5

%


8.0

%


8.2

%

Income before income taxes


7.4

%


3.4

%


6.2

%


4.1

%

Net income


4.7

%


3.8

%


3.9

%


3.4

%














[1] The health benefits ratio is shown as a percentage of premium revenue because there is a direct relationship

   between the premium received and the health benefits provided.

The following table sets forth the approximate number of members the Company served in

each state as of June 30, 2010 and 2009.  Because the Company receives two premiums for

members that are both in the Medicare Advantage and Medicaid products, these members have

been counted twice in the states where we offer both plans.





June 30,





2010


2009



Texas[1]


539,000


476,000



Florida


259,000


264,000



Georgia


259,000


220,000



Maryland  


202,000


183,000



Tennessee


199,000


195,000



New Jersey


145,000


112,000



New York


111,000


111,000



Nevada


72,000


53,000



Ohio


58,000


60,000



Virginia


39,000


29,000



New Mexico


21,000


20,000



     Total  


1,904,000


1,723,000








[1] Membership includes approximately 14,000 members under an ASO contract in 2010 and 13,000 in 2009.  

The following table sets forth the approximate number of members in each of the Company's

products as of June 30, 2010 and 2009.  Because the Company receives two premiums for

members that are in both the Medicare Advantage and Medicaid products, these members

have been counted in each product.





June 30,



Product

2010


2009



TANF (Medicaid)

1,337,000


1,189,000



CHIP

274,000


262,000



ABD (Medicaid)[1]

204,000


205,000



FamilyCare (Medicaid)

71,000


54,000



Medicare Advantage

18,000


13,000



Total

1,904,000


1,723,000














(1) Membership includes approximately 14,000 members under an ASO contract in 2010 and
13,000 in 2009.

AMERIGROUP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

(unaudited)


June 30,


December 31,


2010


2009







Assets

Current assets:




Cash and cash equivalents

$409,833


$505,915

Short-term investments  

221,007


137,523

Premium receivables  

115,007


104,867

Deferred income taxes  

26,779


26,361

Prepaid expenses, provider and other receivables and other

55,058


47,316

Total current assets

827,684


821,982





Property, equipment and software, net

97,809


101,002

Goodwill

260,496


249,276

Long-term investments, including investments on deposit for licensure

889,324


813,976

Other long-term assets  

13,550


13,398


$2,088,863


$1,999,634





Liabilities and Stockholders' Equity

Current liabilities:




Claims payable

$525,603


$529,036

Unearned revenue

47,824


98,298

Accounts payable

4,844


4,685

Accrued expenses and other

183,565


127,278

Total current liabilities

761,836


759,297





Long-term debt

240,427


235,104

Other long-term liabilities

18,017


20,789

Total liabilities

1,020,280


1,015,190





Stockholders’ equity:




Common stock, $.01 par value

552


546

Additional paid-in capital, net of treasury stock

365,706


391,912

Accumulated other comprehensive income

2,298


1,354

Retained earnings

700,027


590,632

Total stockholders’ equity

1,068,583


984,444


$2,088,863


$1,999,634

AMERIGROUP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


Six months ended

June 30,


2010


2009


(dollars in thousands)

Cash flows from operating activities:




Net income

$109,395


$86,508

Adjustments to reconcile net income to net cash provided by




operating activities:




Depreciation and amortization

17,615


18,006

Loss on disposal of property, equipment and software

24


412

Deferred tax (benefit) expense

(1,972)


4,630

Compensation expense related to share-based payments

9,571


8,022

Convertible debt non-cash interest expense

5,323


4,987

Gain on sale of intangible assets

(4,000)


-

Gain on sale of contract rights

-


(5,810)

Other

4,189


(201)

Changes in assets and liabilities (decreasing) increasing  cash flows




from operations:




Premium receivables

(10,140)


(15,683)

Prepaid expenses, provider and other receivables and other




  current assets

(6,138)


(35,928)

Other assets

(55)


(439)

Claims payable

(3,433)


26,883

Unearned revenue

(50,474)


(18,161)

Accounts payable, accrued expenses and other current liabilities

41,371


(36,605)

Other long-term liabilities

(1,714)


(2,583)

                     Net cash provided by operating activities

109,562


34,038





Cash flows from investing activities:




     Purchase of investments, net

(150,908)


(72,369)

Purchase of investments on deposit for licensure, net

(12,516)


(3,913)

Purchase of property, equipment and software

(13,508)


(15,865)

Proceeds from sale of intangible assets

4,000


-

Proceeds from sale of contract rights

-


5,810

Purchase of contract rights and other related assets

(13,420)


-

                     Net cash used in investing activities

(186,352)


(86,337)





Cash flows from financing activities:




     Repayments of borrowings under credit facility

-


(26,318)

Proceeds and tax benefits from exercise of stock options and change




  in bank overdrafts and other, net

24,384


(1,609)

Treasury stock repurchases

(43,676)


(28,555)

                     Net cash used in financing activities

(19,292)


(56,482)

Net decrease in cash and cash equivalents

(96,082)


(108,781)

Cash and cash equivalents at beginning of period

505,915


763,272

Cash and cash equivalents at end of period

$409,833


$654,491

AMERIGROUP CORPORATION AND SUBSIDIARIES

Components of the Change in Medical Claims Payable

(dollars in thousands)






Six months ended


Twelve months ended


June 30, 2010


December 31, 2009

Medical claims payable, beginning of period

$529,036


$536,107





Health benefits expenses incurred during period:




Related to current year

2,408,166


4,492,590

Related to prior years

(90,149)


(85,317)

Total incurred

2,318,017


4,407,273





Health benefits payments during period:




Related to current year

1,960,389


4,007,789

Related to prior years

361,061


406,555

Total payments

2,321,450


4,414,344





Medical claims payable, end of period

$525,603


$529,036





Health benefits expense incurred during both periods were reduced for amounts related to prior years.  The amounts related to
prior years include the impact of amounts previously included in the liability to establish it at a level sufficient under moderately
adverse conditions that were not needed and the reduction in health benefits expense due to revisions to prior estimates.  

Reconciliation of Non-GAAP Financial Measures







Second Quarter 2009 Operating Results Excluding the Favorable Tax Adjustment

AMERIGROUP CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(dollars in thousands, except per share data)

(unaudited)


GAAP


Less: Impact


Adjusted


Three months ended


of Tax


Three months ended


June 30, 2009


Adjustment


June 30, 2009

Revenues:






   Premium

$1,284,890


$                   -


$1,284,890

   Investment income and other

6,517


-


6,517

Total revenues

1,291,407


-


1,291,407

Expenses:






   Health benefits

1,103,213


-


1,103,213

   Selling, general and administrative

96,285


-


96,285

   Premium taxes

34,623


-


34,623

   Depreciation and amortization

9,680


-


9,680

   Interest

4,232


-


4,232

Total expenses

1,248,033


-


1,248,033

Income before income taxes

43,374


-


43,374

Income tax (benefit) expense

(6,225)


(22,449)


16,224

Net income

$49,599


$22,449


$27,150







   Diluted net income per share

$0.94


$0.43


$0.51







Weighted average number of common shares and






dilutive potential common shares outstanding

53,029,943




53,029,943



CONTACTS:


Investors: Julie Loftus Trudell

Media: Tara J. Wall  

Senior Vice President, Investor Relations

Senior Vice President, Communications

Amerigroup Corporation

Amerigroup Corporation

(757) 321-3597

(757) 518-3671

[email protected]

[email protected]



SOURCE Amerigroup Corporation

21%

more press release views with 
Request a Demo

Modal title

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.