Coventry Health Care, Inc. is a managed health care company operating health plans under the names Coventry Health Care, Coventry Health and Life, HealthAmerica, HealthAssurance, HealthCare USA, Group Health Plan, SouthCare, Southern Health, Carelink Health Plans, and WellPath. The Company provides a full range of managed care products and services including health maintenance organization , point-of-service, preferred provider organization products, and Medicare and Medicaid products. The Company also administers self-insured plans for large employer groups.
Industry:MED-HMO Sector: Medical Fiscal Year End:December Last Reported Quarter:03/31/12 Next EPS Date:07/27/12
Capital Structure Solvency and Cash Flow
Balance Sheet and Cash Flow
CVH’s balance sheet and investment portfolio remained strong in 4Q09. As of December 31, 2009, CVH had $1.4 billion in cash and cash equivalents with about $510 million in deployable free cash with the parent company. This compares with total cash of $1.7 billion and deployable free cash of $550 million with the parent company on September 30, 2009.
GAAP operating cash flow from operations was $93.0 million in 4Q09 versus $314.3 million in 3Q09 and $120.3 million in 2Q09.
Reported days claims payable (DCP) totaled 53.5 days in 4Q09, down 1.3 days on a sequential basis.
CVH paid down $110 million of debt during 4Q09, thereby taking its total debt pay down to $294 million in FY09. CVH had total debt of $1.6 billion on December 31, 2009, and it had a debt-to-capitalization ratio of 30.1% on December 31, 2009.
CVH repurchased $21 million of shares in 4Q09, thereby taking its total repurchases to $33 million in FY09.
Guidance: CVH stated that merger and acquisition (M&A) activity is more likely in FY10. CVH’s priority for capital deployment is (1) M&A, (2) investing in the business, and (3) share repurchase and reducing debt levels.
Last edited Fri Mar 26, 2010 03:58 AM by SudiptaMukherjee (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
In October 2009, CVH signed a definitive agreement to acquire Preferred Health Systems, Inc. (PHS), a wholly-owned subsidiary of Via Christi Health System, Inc. PHS, based in Wichita, Kansas. The PHS acquisition closed on February 1, 2010, and has been paid for by CVH.
Last edited Fri Mar 26, 2010 03:58 AM by SudiptaMukherjee (Zacks Investment Research)
Recent and Upcoming Events
Major Risks
• In the current tightened economic environment, pricing is expected to be close to cost trends, attributable to competition, especially in main markets, such as Pennsylvania and Missouri.
• Healthcare and insurance are highly regulated industries, and any unfavorable shift in the regulatory or political landscape could create headwinds for the shares.
• Excessive reliance on Medicare at a time when its products are likely to be restructured.
Last edited Fri Mar 26, 2010 03:58 AM by SudiptaMukherjee (Zacks Investment Research)
Created by: WikiMigrationBot.
Last Modification: Thursday 03 of June, 2010 06:53:34 CDT by WikiMigrationBot.
