On Tuesday, managed health-care company Centene
- Revenues exceeded analyst estimates by 2.4%, while EPS missed estimates due to one-time charges.
- Centene's revenues increased 57.6% due to increases in premiums and members.
- An impairment charge from the loss of a contract largely affected the EPS.
- Cash flow from operations increased 177.3% because of an increase in accounts payable and estimated future medical claims.
- Free cash flow increased 203.0% because of higher cash flow from operations, which was partially offset by higher capital spending.
- The company's long-term debt increased 82% to $169 million.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$616 |
$631 |
$401 |
57.6% |
|
Net Profit |
-- |
($71) |
$12 |
N/A |
|
EPS |
$0.28 |
($1.65) |
$0.27 |
N/A |
|
Diluted Shares |
-- |
43 |
45 |
(4.5%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
18.14% |
16.87% |
1.27 |
|
Operating Margin |
(10.54%) |
3.78% |
(14.32) |
|
Net Margin |
(11.28%) |
3.02% |
(14.30) |
*Expressed in percentage points.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$268 |
$180 |
48.8% |
|
Accounts Rec. |
$86 |
$43 |
99.2% |
|
Inventory |
No data |
No data |
No data |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$68 |
$47 |
43.7% |
|
Long-Term Debt |
$169 |
$93 |
82.0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$125 |
$45 |
177.3% |
|
Capital Expenditures |
$39 |
$17 |
134.6% |
|
Free Cash Flow |
$85 |
$28 |
203.0% |
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