On Feb. 6, health-care enterprise Centene (NYSE:CNC) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenue grew by nearly 65%, largely thanks to a 44% increase in membership.
  • Operating margin decreased by 210 basis points because of higher general and administrative expenses as a percent of revenues for the Medicaid managed-care segment.
  • Earnings per share were flat at $0.31 because of a marginal decrease in net profit, offset by a decrease in the number of shares.
  • The company made stock repurchases of $7.8 million during 2006.
  • The company expects fiscal 2007 revenues to be in the range of $2.7 billion to $2.8 billion and EPS to be $1.51 to $1.61 per share. In the first quarter, the company expects revenue between $635 million and $645 million and EPS between $0.24 and $0.27.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$697.4

$423.2

64.8%

Net Profit

$13.8

$13.9

(0.2%)

EPS

$0.31

$0.31

0.0%

Diluted Shares

44.6

44.8

(0.4%)



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

18.0%

17.7%

0.2

Operating Margin

2.7%

4.8%

(2.1)

Net Margin

2.0%

3.3%

(1.3)

*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.

$338.0

$204.1

65.6%

Accounts Rec.

$91.7

$44.1

107.8%

Inventory

No Data

No Data

No Data



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable*

$72.7

$29.8

144.1%

Long-Term Debt

$174.6

$92.4

88.9%

*Accounts payable includes accrued expenses.

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$195.0

$74.0

163.4%

Capital Expenditures

$50.3

$26.9

87.0%

Free Cash Flow

$144.7

$47.1

207.0%



Find out why Fools always follow the money.

Related Companies:

  • HealthSpring (NYSE:HS)
  • UnitedHealth Group (NYSE:UNH)
  • Aetna (NYSE:AET)
  • Wellcare Health (NYSE:WCG)
  • Amerigroup (NYSE:AGP)

Related Foolishness:

UnitedHealth is a recommendation of both Inside Value and Stock Advisor. You can find out why with a 30-day free trial of either newsletter.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.