On Nov. 7, Molina Healthcare
- Revenues rose 20.7% to $517.5 million, primarily because of the acquisition of the CAPE Health Plan in Michigan and beginning operations in Indiana and Ohio.
- Medical-care costs as a percentage of premium revenue decreased to 84.1% in the third quarter from 86.1% in the year-ago quarter.
- Net profit increased 80.9% to $12.3 million on higher sales and improved margins.
- Free cash flow growth was an unimpressive 5.3% because capital spending was up significantly.
- During the nine months ended Sept. 30, Molina Healthcare increased its long-term debt to $15 million, though its balance sheet remains strong.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$517.5 |
$428.6 |
20.7% |
|
Net Profit |
$12.3 |
$6.8 |
80.9% |
|
EPS |
$0.44 |
$0.24 |
83.3% |
|
Diluted Shares |
28.3 |
28.1 |
0.7% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
16.7% |
14.5% |
2.3 |
|
Operating Margin |
4.0% |
2.5% |
1.4 |
|
Net Margin |
2.4% |
1.6% |
0.8 |
*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. |
$428.7 |
$333.0 |
28.7% |
|
Accounts Rec. |
$84.5 |
$63.5 |
33.1% |
|
Inventory |
No data |
No data |
No data |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$40.3 |
$30.4 |
32.6% |
|
Long-Term Debt |
$15.0 |
$1.8 |
733.3% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$67.2 |
$61.0 |
10.1% |
|
Capital Expenditures |
$13.3 |
$9.8 |
35.5% |
|
Free Cash Flow |
$53.9 |
$51.2 |
5.3% |
Find out why Fools always follow the money.
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