On Feb. 13, Molina Healthcare (NYSE:MOH) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenue was $543.9 million; it increased by about 30%, primarily due to an increase in premium income from acquisition of Cape Health Plan, and also the company's Ohio health plan.
  • The net profit rise of 8.5% was the result of higher sales, partially offset by increasing general and administrative expenses due to continued investment in infrastructure to support medical-care cost control initiatives.
  • Cash from operating activities climbed by 10.7%. The primary sources were net income, the timing of payments for medical costs, and premium receipts.
  • Molina anticipates significant growth in enrollment of the Ohio health plan in 2007, and projects a lower Ohio health plan medical-care ratio due to re-contracting and lower costs in new regions.
  • Molina hasn't earned high marks in the Motley Fool CAPS stock-rating service -- it currently has a one-star rating.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$549.5

$423.2

29.8%

Net Profit

$11.6

$10.7

8.5%

EPS

$0.41

$0.38

7.9%

Diluted Shares

28.3

28.1

0.7%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

15.8%

16.0%

(0.2)

Operating Margin

3.5%

4.2%

(0.7)

Net Margin

2.1%

2.5%

(0.4)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$485.1

$352.6

37.6%

Accounts Rec.

$110.8

$70.5

57.1%

Inventory

No Data

No Data

No Data



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$46.7

$31.5

48.5%

Long-Term Debt

$45.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$105.6

$95.4

10.7%

Capital Expenditures

$26.0

$14.0

86.2%

Free Cash Flow

$79.6

$81.4

(2.2%)



Find out why Fools always follow the money.

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