UnitedHealth Group Second Quarter Highlights
Tuesday, July 18, 2017 5:55:00 AM ET --UnitedHealthcare Grew to Serve 2.5 Million More People through Employer and Government Sponsored Offerings in the Past 12 Months
--Optum Earnings from Operations Grew 21%, With All Optum Segments Producing Double-Digit Percentage Earnings Growth
--Cash Flows from Operations were $2.2 Billion in the Quarter, Up 29% Year-Over-Year
--Second Quarter Net Earnings of $2.32 Per Share Grew 28% Year-Over-Year
--Second Quarter Adjusted Net Earnings of $2.46 Per Share Grew 26% Year-Over-Year
UnitedHealth Group (UNH ) reported second quarter results,
reflecting continued broad-based growth across the enterprise.
"Continued strong revenue growth from new business and exceptional
customer retention reflects the confidence customers place in our
commitment to and effectiveness in meeting their health care needs,"
said Stephen J. Hemsley, chief executive officer of UnitedHealth Group.
Based on performance through the first half of 2017, the Company raised
its outlook for 2017 GAAP net earnings to a range of $9.20 to $9.35 per
share and adjusted net earnings to a range of $9.75 to $9.90 per share.
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Quarterly Financial Performance
Three Months Ended
--------------------------------------------------------------------------------------
June 30, June 30, March 31,
2017 2016 2017
------------- ------------- --------------------
Revenues $50.1 billion $46.5 billion $48.7 billion
Earnings From Operations $3.7 billion $3.2 billion $3.4 billion
Net Margin 4.6% 3.8% 4.5%
------------------------ -------------------- ------------- -------------------- ------------- -------------------- --------------------
--
UnitedHealth Group’s second quarter 2017 revenues of $50.1 billion
grew 7.7 percent or $3.6 billion year-over-year. UnitedHealthcare’s
withdrawals from ACA Individual markets, combined with the ACA health
insurance tax deferral, reduced consolidated second quarter 2017
revenues by approximately $1.8 billion and lowered the revenue growth
rate by 4.5 percent. These factors affect comparability of 2017
results with prior periods throughout the financial statements.
--
Second quarter earnings from operations grew 16.5 percent
year-over-year to $3.7 billion. Adjusted net earnings grew 26 percent
to $2.46 per share from $1.96 per share in the second quarter of 2016.
--
Cash flows from operations were $2.2 billion in second quarter 2017,
up 29 percent year-over-year.
--
The second quarter 2017 consolidated medical care ratio of 82.2
percent increased 20 basis points year-over-year, as a 150 basis point
increase from the health insurance tax deferral was offset by improved
business mix, product performance and favorable reserve development.
Medical reserves developed favorably by $200 million in second quarter
2017, compared to unfavorable development of $100 million in second
quarter 2016.
--
The second quarter 2017 operating cost ratio of 14.6 percent was flat
year-over-year, as the growing mix of revenues from care delivery
businesses offset the effect of the health insurance tax deferral.
--
The second quarter 2017 income tax rate declined to 31.5 percent,
primarily due to the 2017 moratorium on the nondeductible health
insurance tax.
--
Second quarter 2017 days claims payable of 50 days decreased one day
year-over-year, due to ACA Individual market withdrawals, and was
stable sequentially. Second quarter days sales outstanding rose one
day year-over-year and sequentially to 19 days, due to continued
growth in government-based offerings.
--
Annualized return on shareholders’ equity increased 190 basis points
year-over-year to 21.5 percent in second quarter, while the debt to
total capital ratio decreased 650 basis points to 41.3 percent at June
30, 2017.
--
Dividends paid to shareholders grew 22 percent year-over-year to $724
million in the second quarter, reflecting the 20 percent increase in
the annual dividend payment rate to $3.00 per share in June 2017. At
June 30, 2017, the Company had repurchased 6.4 million shares
year-to-date for $1.045 billion, including 2.2 million shares in the
second quarter.
UnitedHealthcare provides global health care benefits, serving
individuals and employers, Medicare and Medicaid beneficiaries and the
nation’s military, retirees and their families.
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Quarterly Financial Performance
Three Months Ended
--------------------------------------------------------------------------------------
June 30, June 30, March 31,
2017 2016 2017
------------- ------------- --------------------
Revenues $40.8 billion $37.6 billion $40.1 billion
Earnings From Operations $2.2 billion $1.9 billion $2.1 billion
Operating Margin 5.4% 5.2% 5.3%
------------------------ -------------------- ------------- -------------------- ------------- -------------------- --------------------
--
UnitedHealthcare’s second quarter 2017 revenues of $40.8 billion grew
$3.2 billion or 8.6 percent year-over-year. UnitedHealthcare grew to
serve 2.5 million more people year-over-year, including 195,000 in the
second quarter of 2017, across its employer-sponsored, Medicare,
Medicaid and international medical benefit offerings. Second quarter
2017 earnings from operations for UnitedHealthcare of $2.2 billion
increased $269 million or 13.9 percent from 2016, driven by strong,
diversified revenue growth and a modest improvement in operating
margins.
--
UnitedHealthcare Employer & Individual
second quarter 2017 revenues of $13 billion decreased $543 million
year-over-year due to the effects of the previously disclosed
Individual market withdrawals and health insurance tax deferral.
These factors offset revenue increases from strong growth of
765,000 people in commercial group-based benefit offerings,
including 590,000 in commercial risk-based arrangements, and rate
increases commensurate with medical cost trends. In the second
quarter, commercial risk-based group business grew by 70,000
people and fee-based programs decreased by 45,000 people, due to
seasonal reductions in workforce at certain customers.
--
UnitedHealthcare Medicare & Retirement
grew revenues by $2.5 billion or 17.2 percent year-over-year to
$16.7 billion in second quarter 2017. UnitedHealthcare served 8.7
million seniors with medical benefit products at quarter end,
growth of 935,000 people or 12 percent year-over-year. In the
second quarter of 2017, the business served 45,000 more seniors,
including 35,000 people through Medicare Advantage.
--
In the second quarter of 2017, UnitedHealthcare
Community & State revenues of $9.2 billion grew $915
million or 11.1 percent year-over-year, reflecting strong
membership growth with an increasing mix of individuals with
greater health care needs. Community & State served 705,000 more
people year-over-year, including 180,000 in the second quarter.
UnitedHealthcare is implementing new awards in California,
Missouri, Nebraska and Virginia this year.
Optum is a health services business serving the global health care
marketplace, including payers, care providers, employers, governments,
life sciences companies and consumers. Using information, technology and
clinical insights, Optum’s people help improve overall health system
performance: optimizing care quality, reducing health care costs and
improving the consumer experience and health system performance.
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Quarterly Financial Performance
Three Months Ended
--------------------------------------------------------------------------------------
June 30, June 30, March 31,
2017 2016 2017
------------- ------------- --------------------
Revenues $22.7 billion $20.6 billion $21.2 billion
Earnings From Operations $1.5 billion $1.3 billion $1.3 billion
Operating Margin 6.7% 6.1% 6.0%
------------------------ -------------------- ------------- -------------------- ------------- -------------------- --------------------
--
Optum second quarter 2017 revenues grew year-over-year by $2 billion
or 9.9 percent, and operating margins improved 60 basis points
year-over-year to 6.7 percent. Second quarter earnings from operations
increased by double-digit percentage rates for all reporting segments,
and overall earnings from operations grew $259 million or 20.5 percent
year-over-year to $1.5 billion.
--
OptumHealth second quarter revenues
of $5.1 billion grew $1.1 billion or 26 percent year-over-year,
driven by growth in care delivery, as well as behavioral health
services and health financial services. Across its business
OptumHealth served approximately 89 million consumers, or 9
million more individuals over the past year, and average revenue
per consumer increased 13.3 percent year-over-year, driven by the
growth in care delivery.
--
OptumInsight revenues grew 13.1
percent year-over-year to $2.0 billion in second quarter 2017,
driven by growth in revenue management and business process
services. OptumInsight contract backlog grew by $2.1 billion or
18.6 percent year-over-year, ending the quarter at $13.4 billion.
--
OptumRx second quarter 2017 revenues
grew 5.1 percent year-over-year to $15.8 billion. OptumRx
fulfilled 322 million adjusted scripts in second quarter 2017, an
increase of 16 million scripts or 5.2 percent over the prior year.
About UnitedHealth Group
UnitedHealth Group (UNH ) is a diversified health and well-being
company dedicated to helping people live healthier lives and helping
make the health system work better for everyone. UnitedHealth Group
offers a broad spectrum of products and services through two distinct
platforms: UnitedHealthcare, which provides health care coverage and
benefits services; and Optum, which provides information and
technology-enabled health services. For more information, visit
UnitedHealth Group at www.unitedhealthgroup.com
or follow @UnitedHealthGrp on Twitter.
Earnings Conference Call
As previously announced, UnitedHealth Group will discuss the Company’s
results, strategy and future outlook on a conference call with investors
at 8:45 a.m. Eastern Time today. UnitedHealth Group will host a live
webcast of this conference call from the Investors page of the Company’s
website (www.unitedhealthgroup.com).
Following the call, a webcast replay will be available on the same site
through August 1, 2017. The conference call replay can also be accessed
by dialing 1-800-727-5306. This earnings release and the Form 8-K dated
July 18, 2017 can also be accessed from the Investors page of the
Company’s website.
Non-GAAP Financial Information
This news release presents non-GAAP financial information as a
complement to the results provided in accordance with accounting
principles generally accepted in the United States of America ("GAAP").
A reconciliation of the non-GAAP financial information to the most
directly comparable GAAP financial measure is provided in the
accompanying tables found at the end of this release.
Forward-Looking Statements
The statements, estimates, projections, guidance or outlook contained in
this document include "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995 (PSLRA). These
statements are intended to take advantage of the "safe harbor"
provisions of the PSLRA. Generally the words "believe," "expect,"
"intend," "estimate," "anticipate," "forecast," "outlook," "plan,"
"project," "should" and similar expressions identify forward-looking
statements, which generally are not historical in nature. These
statements may contain information about financial prospects, economic
conditions and trends and involve risks and uncertainties. We caution
that actual results could differ materially from those that management
expects, depending on the outcome of certain factors.
Some factors that could cause actual results to differ materially from
results discussed or implied in the forward-looking statements include:
our ability to effectively estimate, price for and manage our medical
costs, including the impact of any new coverage requirements; new laws
or regulations, or changes in existing laws or regulations, or their
enforcement or application, including increases in medical,
administrative, technology or other costs or decreases in enrollment
resulting from U.S., Brazilian and other jurisdictions’ regulations
affecting the health care industry; the outcome of the Department of
Justice’s legal actions relating to risk adjustment submission matters;
our ability to maintain and achieve improvement in CMS star ratings and
other quality scores that impact revenue; reductions in revenue or
delays to cash flows received under Medicare, Medicaid and other
government programs, including the effects of a prolonged U.S.
government shutdown or debt ceiling constraints; changes in Medicare,
including changes in payment methodology, the CMS star ratings program
or the application of risk adjustment data validation audits;
cyber-attacks or other privacy or data security incidents; failure to
comply with privacy and data security regulations; regulatory and other
risks and uncertainties of the pharmacy benefits management industry;
competitive pressures, which could affect our ability to maintain or
increase our market share; changes in or challenges to our public sector
contract awards; our ability to execute contracts on competitive terms
with physicians, hospitals and other service providers; failure to
achieve targeted operating cost productivity improvements, including
savings resulting from technology enhancement and administrative
modernization; increases in costs and other liabilities associated with
increased litigation, government investigations, audits or reviews;
failure to manage successfully our strategic alliances or complete or
receive anticipated benefits of acquisitions and other strategic
transactions; fluctuations in foreign currency exchange rates on our
reported shareholders’ equity and results of operations; downgrades in
our credit ratings; the performance of our investment portfolio;
impairment of the value of our goodwill and intangible assets if
estimated future results do not adequately support goodwill and
intangible assets recorded for our existing businesses or the businesses
that we acquire; failure to maintain effective and efficient information
systems or if our technology products do not operate as intended; and
our ability to obtain sufficient funds from our regulated subsidiaries
or the debt or capital markets to fund our obligations, to maintain our
debt to total capital ratio at targeted levels, to maintain our
quarterly dividend payment cycle or to continue repurchasing shares of
our common stock.
This list of important factors is not intended to be exhaustive. We
discuss certain of these matters more fully, as well as certain risk
factors that may affect our business operations, financial condition and
results of operations, in our filings with the Securities and Exchange
Commission, including our annual reports on Form 10-K, quarterly reports
on Form 10-Q and current reports on Form 8-K. Any or all forward-looking
statements we make may turn out to be wrong, and can be affected by
inaccurate assumptions we might make or by known or unknown risks and
uncertainties. By their nature, forward-looking statements are not
guarantees of future performance or results and are subject to risks,
uncertainties and assumptions that are difficult to predict or quantify.
Actual future results may vary materially from expectations expressed or
implied in this document or any of our prior communications. You should
not place undue reliance on forward-looking statements, which speak only
as of the date they are made. We do not undertake to update or revise
any forward-looking statements, except as required by applicable
securities laws.
UNITEDHEALTH GROUP
Earnings Release Schedules and Supplementary Information
Three and Six Months Ended June 30, 2017
- Condensed Consolidated Statements of Operations
- Condensed Consolidated Balance Sheets
- Condensed Consolidated Statements of Cash Flows
- Supplemental Financial Information - Businesses
- Supplemental Financial Information - Business Metrics
- Reconciliation of Non-GAAP Financial Measure
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months Ended June 30, Six Months Ended June 30,
----------------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------------------
2017 2016 2017 2016
------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Revenues
Premiums $ 39,585 $ 36,413 $ 78,523 $ 71,224
Products 6,415 6,610 12,544 13,003
Services 3,797 3,269 7,231 6,409
Investment and other income 256 193 478 376
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------
Total revenues 50,053 46,485 98,776 91,012
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------
Operating costs
Medical costs 32,549 29,872 64,628 58,302
Operating costs 7,328 6,793 14,350 13,551
Cost of products sold 5,889 6,106 11,565 11,983
Depreciation and amortization 556 511 1,089 1,013
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------
Total operating costs 46,322 43,282 91,632 84,849
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------
Earnings from operations 3,731 3,203 7,144 6,163
Interest expense (301 ) (271 ) (584 ) (530 )
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------
Earnings before income taxes 3,430 2,932 6,560 5,633
Provision for income taxes (1,080 ) (1,172 ) (2,019 ) (2,246 )
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------
Net earnings 2,350 1,760 4,541 3,387
Earnings attributable to noncontrolling interests (66 ) (6 ) (85 ) (22 )
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ --------------------
Net earnings attributable to UnitedHealth Group common $ 2,284 $ 1,754 $ 4,456 $ 3,365
shareholders
==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ==================== ====== ====================
Diluted earnings per share attributable to UnitedHealth Group $ 2.32 $ 1.81 $ 4.55 $ 3.48
common shareholders
==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ==================== ====== ====================
Adjusted earnings per share attributable to UnitedHealth Group $ 2.46 $ 1.96 $ 4.83 $ 3.77
common shareholders (a)
==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ==================== ====== ====================
Diluted weighted-average common shares outstanding 985 967 980 967
==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ==================== ====== ====================
(a)See page 6 for a reconciliation of the non-GAAP measure
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in millions)
(unaudited)
June 30, December 31,
2017 2016
--------------------------- ------------------------------
Assets
Cash and short-term investments $ 17,970 $ 13,275
Accounts receivable, net 10,538 8,152
Other current assets 12,731 12,452
-------------------- ------- -------------------- ----------
Total current assets 41,239 33,879
Long-term investments 26,397 23,868
Other long-term assets 70,461 65,063
-------------------- ------- -------------------- ----------
Total assets $ 138,097 $ 122,810
==================== ======= ==================== ==========
Liabilities, redeemable noncontrolling interests and equity
Medical costs payable $ 17,710 $ 16,391
Commercial paper and current maturities of long-term debt 5,739 7,193
Other current liabilities 33,672 25,668
-------------------- ------- -------------------- ----------
Total current liabilities 57,121 49,252
Long-term debt, less current maturities 26,197 25,777
Other long-term liabilities 7,786 7,592
Redeemable noncontrolling interests 1,657 2,012
Equity 45,336 38,177
-------------------- ------- -------------------- ----------
Total liabilities, redeemable noncontrolling interests and equity $ 138,097 $ 122,810
==================== ======= ==================== ==========
UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(in millions)
(unaudited)
Six Months Ended
June 30,
----------------------------------------------------------------------------------------------------------------
2017 2016
------------------------------------------------- -------------------------------------------------
Operating Activities
Net earnings $ 4,541 $ 3,387
Noncash items:
Depreciation and amortization 1,089 1,013
Deferred income taxes and other (89 ) (161 )
Share-based compensation 332 262
Net changes in operating assets and liabilities 2,754 (500 )
-------------------- ------ -------------------- -------------------- ------ --------------------
Cash flows from operating activities 8,627 4,001
-------------------- ------ -------------------- -------------------- ------ --------------------
Investing Activities
Purchases of investments, net of sales and maturities (2,082 ) (3,581 )
Purchases of property, equipment and capitalized software (925 ) (813 )
Cash paid for acquisitions, net (704 ) (2,035 )
Other, net 55 16
-------------------- ------ -------------------- -------------------- ------ --------------------
Cash flows used for investing activities (3,656 ) (6,413 )
-------------------- ------ -------------------- -------------------- ------ --------------------
Financing Activities
Common share repurchases (1,045 ) (980 )
Dividends paid (1,320 ) (1,071 )
Net change in commercial paper and long-term debt (2,171 ) 1,008
Other, net 3,724 684
-------------------- ------ -------------------- -------------------- ------ --------------------
Cash flows used for financing activities (812 ) (359 )
-------------------- ------ -------------------- -------------------- ------ --------------------
Effect of exchange rate changes on cash and cash equivalents (7 ) 65
-------------------- ------ -------------------- -------------------- ------ --------------------
Increase (decrease) in cash and cash equivalents 4,152 (2,706 )
Cash and cash equivalents, beginning of period 10,430 10,923
-------------------- ------ -------------------- -------------------- ------ --------------------
Cash and cash equivalents, end of period $ 14,582 $ 8,217
==================== ====== ==================== ==================== ====== ====================
Supplemental Schedule of Noncash Investing Activities
Common stock issued for acquisitions $ 1,867 $ -
UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION
- BUSINESSES
(in millions, except percentages)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------
2017 2016 2017 2016
-------------------------------------------------- -------------------------------------------------- -------------------------------------------------- --------------------------------------------------
Revenues
UnitedHealthcare $ 40,788 $ 37,556 $ 80,924 $ 73,456
Optum 22,671 20,623 43,908 40,307
Eliminations (13,406 ) (11,694 ) (26,056 ) (22,751 )
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Total consolidated revenues $ 50,053 $ 46,485 $ 98,776 $ 91,012
==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
Earnings from Operations
UnitedHealthcare $ 2,211 $ 1,942 $ 4,345 $ 3,796
Optum (a) 1,520 1,261 2,799 2,367
-------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Total consolidated earnings from operations $ 3,731 $ 3,203 $ 7,144 $ 6,163
==================== ======= ==================== ==================== ======= ==================== ==================== ======= ==================== ==================== ======= ====================
Operating Margin
UnitedHealthcare 5.4 % 5.2 % 5.4 % 5.2 %
Optum 6.7 % 6.1 % 6.4 % 5.9 %
Consolidated operating margin 7.5 % 6.9 % 7.2 % 6.8 %
Revenues
UnitedHealthcare Employer & Individual $ 12,966 $ 13,509 $ 25,705 $ 26,329
UnitedHealthcare Medicare & Retirement 16,747 14,294 33,299 28,359
UnitedHealthcare Community & State 9,178 8,263 18,127 15,991
UnitedHealthcare Global 1,897 1,490 3,793 2,777
OptumHealth $ 5,122 $ 4,065 $ 9,855 $ 8,063
OptumInsight 1,993 1,762 3,836 3,429
OptumRx 15,840 15,073 30,787 29,346
Optum eliminations (284 ) (277 ) (570 ) (531 )
(a) Earnings from operations for Optum for the three and six months
ended June 30, 2017 included $422 and $754 for OptumHealth; $372 and
$666 for OptumInsight; and $726 and $1,379 for OptumRx,
respectively. Earnings from operations for Optum for the three and
six months ended June 30, 2016 included $304 and $604 for
OptumHealth; $333 and $579 for OptumInsight; and $624 and $1,184 for
OptumRx, respectively.
UNITEDHEALTH GROUP
SUPPLEMENTAL FINANCIAL INFORMATION
- BUSINESS METRICS
UNITEDHEALTHCARE CUSTOMER PROFILE
(in thousands)
People Served June 30, March 31, December 31, June 30,
2017 2017 2016 2016
------------------------------------------------ -------------------------- -------------------------- -------------------------- -------------------- ----------------------------------------
Commercial group:
Risk-based 7,765 7,695 7,470 7,175
Fee-based 19,110 19,155 18,900 18,935
-------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------------------
Total commercial group 26,875 26,850 26,370 26,110
Individual 540 585 1,350 1,520
Fee-based TRICARE 2,855 2,860 2,860 2,855
-------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------------------
Total Commercial 30,270 30,295 30,580 30,485
-------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------------------
Medicare Advantage 4,340 4,305 3,630 3,550
Medicaid 6,380 6,200 5,890 5,675
Medicare Supplement (Standardized) 4,360 4,350 4,265 4,215
-------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------------------
Total Public and Senior 15,080 14,855 13,785 13,440
-------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------------------
Total UnitedHealthcare - Domestic Medical 45,350 45,150 44,365 43,925
International 4,115 4,165 4,220 4,050
-------------------- ------ -------------------- ------ -------------------- ------ -------------------- --------------------
Total UnitedHealthcare - Medical 49,465 49,315 48,585 47,975
==================== ====== ==================== ====== ==================== ====== ==================== ====================
Supplemental Data
Medicare Part D stand-alone 4,935 4,955 4,930 4,940
==================== ====== ==================== ====== ==================== ====== ==================== ====================
OPTUM PERFORMANCE METRICS
June 30, March 31, December 31, June 30,
2017 2017 2016 2016
-------------------------- -------------------------- -------------------------- -------------------- ----------------------------------------
OptumHealth Consumers Served (in millions) 89 85 83 80
OptumInsight Contract Backlog (in billions) $ 13.4 $ 13.1 $ 12.6 $ 11.3
OptumRx Quarterly Adjusted Scripts (in millions) 322 322 318 306
Note: UnitedHealth Group served 139 million unique individuals
across all businesses at June 30, 2017.
UNITEDHEALTH GROUP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURE
ADJUSTED NET EARNINGS PER SHARE (a)
(in
millions, except per share data)
(unaudited)
Three Months Ended Six Months Ended Projected
June 30, June 30, Year Ended
December 31,
---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- --------------------
2017 2016 2017 2016 2017
------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- --------------------
GAAP net earnings $ 2,284 $ 1,754 $ 4,456 $ 3,365 $9,050 to $9,200
Intangible amortization 220 223 439 438 890
Tax effect of intangible amortization (81 ) (83 ) (163 ) (158 ) (330)
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- --------------------
Adjusted net earnings $ 2,423 $ 1,894 $ 4,732 $ 3,645 $9,600 to $9,750
==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ====================
GAAP diluted earnings per share $ 2.32 $ 1.81 $ 4.55 $ 3.48 $9.20 to $9.35
Intangible amortization per share 0.22 0.23 0.45 0.45 0.90
Tax effect of intangible amortization per share (0.08 ) (0.08 ) (0.17 ) (0.16 ) (0.35)
-------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- --------------------
Adjusted diluted earnings per share $ 2.46 $ 1.96 $ 4.83 $ 3.77 $9.75 to $9.90
==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ==================== ====== ==================== ====================
(a) GAAP and adjusted net earnings are attributable to UnitedHealth
Group common shareholders.
----------------------- ----------------------------------- -------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------
Use of Non-GAAP Financial Measure
Adjusted net earnings per share is a non-GAAP financial measure.
Non-GAAP financial measures should be considered in addition to, but
not as a substitute for, or superior to, financial measures prepared
in accordance with GAAP. Management believes that the use of
adjusted net earnings per share provides investors and management
useful information about the earnings impact of acquisition-related
intangible asset amortization.
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SOURCE: UnitedHealth Group
UnitedHealth Group
Investors:
Brett Manderfeld, 952-936-7216
Vice President
John S. Penshorn, 952-936-7214
Senior Vice President
or
Media:
Tyler Mason, 424-333-6122
Vice President
