MAGELLAN HEALTH INC

CIK:0000019411|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net revenue:
Net revenue	$ 1,254,118	$ 1,170,117	$ 3,636,535	$ 3,392,571
Costs, expenses and other income:
Cost of care	437,308	364,438	1,247,234	1,035,377
Cost of goods sold	546,337	560,269	1,559,221	1,621,577
Direct service costs and other operating expenses	238,471	216,770	713,065	620,767
Legal matter settlement			(9,000)
Depreciation and amortization	23,671	24,730	67,613	71,976
Interest expense	5,969	7,286	18,629	24,239
Interest and other income	(299)	(349)	(848)	(2,119)
Special charges and other	1,914	16,599	8,119	24,908
Total costs, expenses and other income	1,253,371	1,189,743	3,604,033	3,396,725
(Loss) income from continuing operations before income taxes	747	(19,626)	32,502	(4,154)
(Benefit) provision for income taxes	861	(2,330)	10,570	(32,896)
Net (loss) income from continuing operations	(114)	(17,296)	21,932	28,742
Income from discontinued operations, net of tax	6,050	28,943	11,165	84,660
Net income	$ 5,936	$ 11,647	$ 33,097	$ 113,402
Basic
Continuing operations (in dollars per share)	$ (0.20)	$ (0.68)	$ 0.65	$ 1.15
Discontinued operations (in dollars per share)	0.23	1.14	0.43	3.37
Consolidated operations (in dollars per share)	0.03	0.46	1.08	4.52
Diluted
Continuing operations (in dollars per share)	(0.20)	(0.68)	0.63	1.14
Discontinued operations (in dollars per share)	0.23	1.14	0.42	3.34
Consolidated operations (in dollars per share)	$ 0.03	$ 0.46	$ 1.05	$ 4.48
Other comprehensive income
Unrealized (losses) gains on available-for-sale securities	$ (24)	$ (481)	$ 161	$ (23)
Comprehensive income	5,912	11,166	33,258	113,379
Managed care and other
Net revenue:
Net revenue	668,591	568,688	1,970,708	1,670,567
PBM
Net revenue:
Net revenue	$ 585,527	$ 601,429	$ 1,665,827	$ 1,722,004

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 33,097	$ 113,402
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	67,613	88,061
Special charges and other	8,119	24,908
Gain on sale of MCC	(16,713)
Non-cash interest expense	1,066	1,297
Non-cash stock compensation expense	19,384	18,854
Non-cash income tax (benefit) provision	13,883	(26,537)
Non-cash accretion on investments	2,271	2,371
Changes in assets and liabilities, net of effects from acquisitions of businesses:
Accounts receivable, net	(30,846)	(78,682)
Pharmaceutical inventory	3,502	7,325
Other assets	(75,253)	(66,612)
Accounts payable and accrued liabilities	(89,065)	110,710
Medical claims payable and other medical liabilities	111,063	47,478
Tax contingencies	1,478	1,914
Deferred credits and other long-term liabilities	6,936	(11,572)
Other	3,521	(965)
Net cash provided by operating activities	60,056	231,952
Net cash provided by operating activities from discontinued operations		177,800
Net cash provided by operating activities from continuing operations	60,056	54,152
Cash flows from investing activities:
Capital expenditures	(48,000)	(56,006)
Acquisitions and investments in businesses, net of cash acquired	(2,373)	(2,066)
Purchases of investments	(779,758)	(661,004)
Proceeds from maturities and sales of investments	765,468	500,660
Net cash used in investing activities	(64,663)	(218,416)
Net cash used in investing activities from discontinued operations		(164,836)
Net cash used in investing activities from continuing operations	(64,663)	(53,580)
Cash flows from financing activities:
Proceeds from borrowings on revolving line of credit		80,000
Proceeds from exercise of stock options	17,758	48,284
Payments on debt, finance lease and deferred financing obligations	(117,706)	(126,110)
Other	(1,437)	902
Net cash provided by (used in) financing activities	(101,385)	3,076
Net cash used in financing activities from discontinued operations		(32,650)
Net cash provided by (used in) financing activities from continuing operations	(101,385)	35,726
Net increase (decrease) in cash and cash equivalents from continuing operations	(105,992)	36,298
Cash and cash equivalents at beginning of period	1,144,450	115,752
Cash and cash equivalents at end of period	$ 1,038,458	152,050
Non-cash investing activities:
Assets acquired under finance leases and deferred financing obligations		$ 3,599

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents ($49,227 and $79,746 restricted at December 31, 2020 and September 30, 2021, respectively)	$ 1,038,458	$ 1,144,450
Accounts receivable, net	827,169	743,502
Short-term investments ($88,867 and $101,884 restricted at December 31, 2020 and September 30, 2021, respectively)	155,518	140,847
Pharmaceutical inventory	39,832	43,334
Other current assets ($43,547 and $74,385 restricted at December 31, 2020 and September 30, 2021, respectively)	143,442	84,264
Total Current Assets	2,204,419	2,156,397
Property and equipment, net	137,046	136,739
Long-term investments ($1,026 and $0 restricted at December 31, 2020 and September 30, 2021, respectively)		2,612
Deferred income taxes		1,842
Other long-term assets	81,008	108,797
Goodwill	873,830	873,779
Other intangible assets, net	57,147	79,689
Total Assets	3,353,450	3,359,855
Current Liabilities:
Accounts payable	171,774	137,380
Accrued liabilities	231,196	354,906
Medical claims payable	187,177	111,851
Other medical liabilities	162,658	126,921
Current debt, finance lease and deferred financing obligations	3,214	6,521
Total Current Liabilities	756,019	737,579
Long-term debt, finance lease and deferred financing obligations	516,368	631,855
Deferred income taxes	18,768	7,102
Tax contingencies	12,913	11,002
Deferred credits and other long-term liabilities	76,219	69,283
Total Liabilities	1,380,287	1,456,821
Redeemable non-controlling interest	39,261	33,062
Stockholder's Equity:
Preferred stock, par value $.01 per share Authorized-10,000 shares at December 31, 2020 and September 30, 2021-Issued and outstanding-none
Common stock, par value $.01 per share: Authorized-100,000 shares at December 31, 2020 and September 30, 2021-Issued and outstanding-55,549 and 25,887 shares at December 31, 2020, respectively, and 55,994 and 26,332 shares at September 30, 2021, respectively	560	555
Other Stockholders' Equity:
Additional paid-in capital	1,512,919	1,477,219
Retained earnings	1,885,194	1,857,130
Accumulated other comprehensive loss	(44)	(205)
Treasury stock, at cost, 29,662 and 29,662 shares at December 31, 2020 and September 30, 2021, respectively	(1,464,727)	(1,464,727)
Total Stockholders' Equity	1,933,902	1,869,972
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity	$ 3,353,450	$ 3,359,855