EX-99.1 4 a06-11750_6ex99d1.htm EX-99.1

 

Exhibit 99.1

Selected Financial Data set forth in this Exhibit 99.1 has been revised from the Selected Financial Data included in Item 6 to Humana’s Annual Report on Form 10-K for the year ended December 31, 2005 to reflect the retrospective application of Humana’s adoption of Statement of Financial Accounting Standards (SFAS) No. 123 (revised 2004), Share-Based Payment, or SFAS 123. Revisions are highlighted in blue.

SELECTED FINANCIAL DATA WITH RETROSPECTIVE APPLICATION OF SFAS 123R

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005 (a)

 

2004 (b)

 

2003(c)

 

2002 (d)(e)

 

2001 (e)

 

Summary of Operations:

 

(in thousands, except per common share results and ratios)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

14,001,591

 

$

12,689,432

 

$

11,825,283

 

$

10,930,397

 

$

9,938,961

 

Administrative services fees

 

259,437

 

272,796

 

271,676

 

244,396

 

137,090

 

Investment and other income

 

157,099

 

142,097

 

129,352

 

86,388

 

118,835

 

Total revenues

 

14,418,127

 

13,104,325

 

12,226,311

 

11,261,181

 

10,194,886

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Medical

 

11,651,470

 

10,669,647

 

9,879,421

 

9,138,196

 

8,279,844

 

Selling, general and administrative

 

2,195,604

 

1,894,336

 

1,866,531

 

1,781,457

 

1,551,257

 

Depreciation and amortization

 

128,858

 

117,792

 

126,779

 

120,730

 

161,531

 

Total operating expenses

 

13,975,932

 

12,681,775

 

11,872,731

 

11,040,383

 

9,992,632

 

Income from operations

 

442,195

 

422,550

 

353,580

 

220,798

 

202,254

 

Interest expense

 

39,315

 

23,172

 

17,367

 

17,252

 

25,302

 

Income before income taxes

 

402,880

 

399,378

 

336,213

 

203,546

 

176,952

 

Provision for income taxes

 

106,150

 

129,431

 

112,474

 

64,694

 

63,525

 

Net income

 

$

296,730

 

$

269,947

 

$

223,739

 

$

138,852

 

$

113,427

 

Basic earnings per common share

 

$

1.83

 

$

1.68

 

$

1.41

 

$

0.85

 

$

0.69

 

Diluted earnings per common share

 

$

1.79

 

$

1.66

 

$

1.38

 

$

0.83

 

$

0.68

 

Financial Position:

 

 

 

 

 

 

 

 

 

 

 

Cash and investments

 

$

3,477,955

 

$

3,074,189

 

$

2,927,213

 

$

2,415,914

 

$

2,327,139

 

Total assets

 

6,869,614

 

5,657,617

 

5,379,814

 

4,977,029

 

4,715,445

 

Medical and other expenses payable

 

1,909,682

 

1,422,010

 

1,272,156

 

1,142,131

 

1,086,386

 

Debt

 

815,044

 

636,696

 

642,638

 

604,913

 

578,489

 

Stockholders’ equity

 

2,508,874

 

2,124,248

 

1,868,972

 

1,641,115

 

1,541,701

 

Key Financial Indicators:

 

 

 

 

 

 

 

 

 

 

 

Medical expense ratio

 

83.2

%

84.1

%

83.5

%

83.6

%

83.3

%

SG&A expense ratio

 

15.4

%

14.6

%

15.4

%

15.9

%

15.4

%

 

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2005 (a)

 

2004 (b)

 

2003

 

2002

 

2001

 

Medical Membership by Segment:

 

 

 

Government:

 

 

 

 

 

 

 

 

 

 

 

Medicare Advantage

 

557,800

 

377,200

 

328,600

 

344,100

 

393,900

 

Medicaid

 

457,900

 

478,600

 

468,900

 

506,000

 

490,800

 

TRICARE

 

1,750,900

 

1,789,400

 

1,849,700

 

1,755,800

 

1,714,600

 

TRICARE ASO

 

1,138,200

 

1,082,400

 

1,057,200

 

1,048,700

 

942,700

 

Total Government

 

3,904,800

 

3,727,600

 

3,704,400

 

3,654,600

 

3,542,000

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Fully insured

 

1,999,800

 

2,286,500

 

2,352,800

 

2,340,300

 

2,301,300

 

Administrative services only

 

1,171,000

 

1,018,600

 

712,400

 

652,200

 

592,500

 

Total Commercial

 

3,170,800

 

3,305,100

 

3,065,200

 

2,992,500

 

2,893,800

 

Total Medical Membership

 

7,075,600

 

7,032,700

 

6,769,600

 

6,647,100

 

6,435,800

 

Commercial Specialty Membership:

 

 

 

 

 

 

 

 

 

 

 

Dental

 

1,456,500

 

1,246,700

 

1,147,400

 

1,094,600

 

1,123,300

 

Other

 

445,600

 

461,500

 

520,700

 

545,400

 

571,300

 

Total specialty membership

 

1,902,100

 

1,708,200

 

1,668,100

 

1,640,000

 

1,694,600

 

 

(a)          Includes the acquired operations of CarePlus Health Plans of Florida from February 16, 2005, and the acquired operations of Corphealth, Inc. from December 20, 2005. Also includes expenses of $71.9 million ($44.8 million after tax, or $0.27 per diluted common share) for a class action litigation settlement, as well as expenses of $27.0 million ($16.9 million after tax, or $0.10 per diluted common share) related to Hurricane Katrina. These expenses were partially offset by the realization of a tax gain contingency of $22.8 million, or $0.14 per diluted common share.

(b)         Includes the acquired operations of Ochsner Health Plan from April 1, 2004.

(c)          Includes expenses of $30.8 million pretax ($18.8 million after tax, or $0.12 per diluted common share) for the writedown of building and equipment and software abandonment expenses. These expenses were partially offset by a gain of $15.2 million pretax ($10.1 million after tax, or $0.06 per diluted common share) for the sale of a venture capital investment. The net impact of these items reduced pretax income by $15.6 million ($8.7 million after tax, or $0.05 per diluted common share).

(d)         Includes expenses of $85.6 million pretax ($58.2 million after tax, or $0.35 per diluted common share) for severance and facility costs related to reducing our administrative cost structure with the elimination of three customer service centers and an enterprise-wide workforce reduction, reserves for liabilities related to a previous acquisition and the impairment in the fair value of certain private debt and equity investments.

(e)          We ceased amortizing goodwill upon adopting Statement of Financial Accounting Standards (SFAS) No. 142, or SFAS 142, on January 1, 2002. Assuming the non-amortization provisions of SFAS 142 were in effect as of January 1, 2001, diluted earnings per common share would have increased $0.31 in 2001.

 

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