Sign in Subscribe
Health care industry

Molina Healthcare Reports Strong Financial Results for 2004

Strategic Insights

— 2 min read

Molina Healthcare, Inc. has announced its financial results for the fourth quarter and year ended December 31, 2004, showcasing a year of accomplishment, growth, and quality care. The company's president and CEO, J. Mario Molina, MD, highlighted the significant milestones achieved in 2004, including a 31% increase in net income and a 47.8% growth in premium revenue. Throughout the year, Molina Healthcare prioritized quality care for its members, with four of its five operating HMOs achieving accreditation by the National Committee for Quality Assurance (NCQA).

Key Takeaways:

  • Net income for the fourth quarter ended December 31, 2004, was $16.3 million, or $0.58 per diluted share, compared with net income for the quarter ended December 31, 2003, of $11.9 million, or $0.46 per diluted share.
  • Operating activities provided $42.2 million in cash for the quarter ended December 31, 2004.
  • Net income for the year ended December 31, 2004, was $55.8 million, or $2.04 per diluted share, an increase of 31% from the prior year.
  • Premium revenue for the fourth quarter of 2004 was $372.8 million, an increase of $164.8 million, or 79.2%, over 2003 premium revenue of $208.0 million.
  • Membership growth and higher premium rates contributed $105.6 million and $59.2 million in increased premium revenue, respectively, during the fourth quarter of 2004.
  • Medical care costs increased in absolute terms to $314.9 million in the fourth quarter of 2004 from $172.9 million in the fourth quarter of 2003.
  • Salary, General, and Administrative (SG&A) expenses were $31.2 million for the fourth quarter of 2004, representing 8.3% of total revenue.
  • Molina Healthcare's New Mexico acquisition contributed significantly to the increased enrollment and premium revenue.

Statistics:

  • 93% of Molina Healthcare's total members were accredited by the National Committee for Quality Assurance (NCQA) at December 31, 2004.
  • 84.2% medical care ratio in the fourth quarter of 2004, an increase from 83.0% in the fourth quarter of 2003.
  • 47.8% increase in premium revenue for the year ended December 31, 2004, to $1.167 billion.
  • 31% increase in net income for the year ended December 31, 2004, to $55.8 million.
  • $42.2 million in cash provided by operating activities for the quarter ended December 31, 2004.
  • $91.0 million in net cash provided by operating activities for the year ended December 31, 2004.
  • $316.6 million in consolidated cash and investments at December 31, 2004.

Sources:

  • Molina Healthcare, Inc.
  • Health & Medicine Week
  • NewsRx.com

Read more