Molina Healthcare Inc · NYSE:MOH
Molina Healthcare — Corporate Update (January 2008)
10 slides from Molina Healthcare's corporate update, Jan 22, 2008
Slide 1: Molina Healthcare, Inc. 2008 Guidance
Molina Healthcare, Inc. January 22, 2007 Long Beach, CA John Molina Chief Financial Officer 2008 Guidance
Slide 2: Forward-looking statements
This presentation contains numerous "forward-looking statements" regarding the Company's 2008 earnings guidance as provided on January 22, 2008. Any statements herein that refer to guidance, projections, expectations, strategies, challenges, and opportunities, or their underlying assumptions, or oth
Slide 3: 2008 Earnings Guidance (January 22, 2008)
^ $2.9B ^ $29.0M ^ 84.3% ^ 11.4% ^ 8.5% ^ $34.0M ^ $9.5M ^ $64.8M to $70.6M ^ $2.25 to $2.45 ^ 28.8M ^ 38.3% Premium Revenue Investment Income Medical Care Ratio (% of Premium Revenue) G&A Ratio Core G&A D&A Interest Expense Net Income Diluted EPS Diluted Shares Outstanding Effective Tax Rate 2008 E
Slide 4: Projected Key Developments for 2008 Guidance
Projected Key Developments for 2008 Guidance Mercy CarePlus: Growth in enrollment of 7,000 members MCR continues to be below MOH consolidated average Ohio: Reduction of MCR to 88% Medicaid Enrollment: 4% overall MOH organic growth Medicare: Enrollment to double to 10,000 by year end Continued invest
Slide 5: Projected Premium Increases for 2008
Projected Premium Increases for 2008 Health Plan Projected Premium Increase Incorporated Into 2008 Guidance Projected Effective Date Michigan 1.5% October 1, 2008 Missouri 3.0% July 1, 2008 Texas TANF 2.0% September 1, 2008 SCHIP 2.0% September 1, 2008
Slide 6: Previously Received Premium Increases
Previously Received Premium Increases Health Plan Previously Received Premium Increase Effective Date California Sacramento San Diego Inland Empire 14.0% 5.0% 7.8% January 1, 2008 July 1, 2007 October 1, 2007 Michigan 2.0% October 1, 2007 New Mexico 5.0% July 1, 2007 Ohio (ABD only) 2.6% January 1,
Slide 7: Membership 2008 Guidance
Membership Medicaid: California Michigan Missouri New Mexico Ohio Texas Utah Washington Total Medicaid Total Medicare Total Consolidated 314,000 210,000 75,000 77,000 143,000 33,000 52,000 291,000 1,195,000 10,000 1,205,000 2008 Guidance
Slide 8: Historical Net Income Distribution
1st Qrt 2nd Qrt 3rd Qrt 4th Qrt East 0.22 0.21 0.3 0.28 Historical Net Income Distribution Average Quarterly Contribution 2001-2007E 1st Half - 43% 2nd Half- 57% Semi-annual contribution not anticipated to change materially in 2008
Slide 9: Opportunities and Challenges
Opportunities and Challenges Opportunities / Challenges Discussion Medicare Growth Guidance adds 5,000 members Diversifies revenue stream Continued investment in infrastructure Medicare MCR Projecting 85.0% MCR Ohio Medical Costs Expecting lower medical cost in Ohio 2007 MCR of 90%-91% declines to 8
Slide 10: Opportunities and Challenges
Opportunities / Challenges Discussion New Mexico Medical Cost Floor Guidance assumes retention of contract Guidance assumes an 85% MCR in New Mexico for the 2nd half of the year California Premiums Guidance includes Sacramento rate increase effective 1/1/08 Guidance does not include any other CA rat