Financials

Financial Highlights

WellCare’s relentless focus on financial and operational execution continues to drive our results and position the company for long-term success in the years to come.

TOTAL REVENUE ($ BILLIONS)

YearRevenue
201513.9
201614.2
201717.0
201820.4

TOTAL ASSETS ($ BILLIONS)

YearAssets
20155.1
20166.2
20178.4
201811.8

NET INCOME MARGIN (%)

YearPercent (GAAP)Percent (Adjusted)
20150.91.2
20161.71.9
20172.22.3
20182.22.6

EARNINGS PER DILUTED SHARE ($)

YearDollars (GAAP)Dollars (Adjusted)
20152.673.59
20165.435.96
20178.318.52
20189.2911.03

Reconciliation Table

Total Revenue and Adjusted Total Revenue

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$ millions 2015 2016 2017 2018
Total revenue (GAAP) $13,890.2 $14,237.1 $17,007.2 $20,414.1
Medicaid premium taxes (94.7) (110.0) (119.8) (126.8)
ACA industry fee reimbursement (219.2) (244.9) (302.2)
Adjusted total revenue (non-GAAP) $13,576.3 $13,882.2 $16,887.4 $19,985.1

Earnings per share and adjusted net income margin

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$ millions (except per share data)
 
 
2015
Per
Diluted
Share
 
 
2016
Per
Diluted
Share
 
 
2017
Per
Diluted
Share
 
 
2018
Per
Diluted
Share
GAAP net income $118.6 $2.67 $242.1 $5.43 $373.7 $8.31 $439.8 $9.29
Investigation costs 30.4 0.68 16.0 0.36 7.9 0.18 0.4 0.01
Transaction and integration costs 37.5 0.83 33.1 0.7
Sterling divestiture costs 2.0 0.05 1.7 0.04
PBM transitory costs 18.1 0.41 4.9 0.11
Iowa SG&A 11.9 0.27 5.2 0.12
Amortization expense 10.6 0.24 10.4 0.22 32.7 0.73 72.7 1.54
Gain on divestiture (6.1) (0.14)
Loss on extinguishment on debt 26.1 0.58
Tax benefit due to TCJA1 (56.1) (1.25) (1.0) (0.02)
Tax effect of adjustments (26.2) (0.59) (14.3) (0.32) (38.6) (0.86) (22.7) (0.48)
Adjusted net income (non-GAAP) $159.3 $3.59 $266.0 $5.96 $383.2 $8.52 $522.3 $11.03
GAAP net income margin 0.9% 1.7% 2.2% 2.2%
Adjusted net income margin (non-GAAP)2 1.2% 1.9% 2.3% 2.6%

Individual per share effects may not equal the total due to rounding.
GAAP is defined as generally accepted accounting principles.
1 TCJA is defined as the Tax Cuts and Jobs Act of 2017.
2 Adjusted net income margin (non-GAAP) is adjusted net income divided by adjusted total revenue.

Cautionary Statement Regarding Forward-Looking Statements
This annual review contains “forward-looking” statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “will,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions are forward-looking statements. For example, statements regarding the company’s financial outlook and new business contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause WellCare’s actual future results to differ materially from those projected or contemplated in the forward-looking statements. These risks and uncertainties include, but are not limited to, WellCare’s progress on top priorities such as integrating care management, advocating for our members, building advanced relationships with providers and government partners, ensuring a competitive cost position, and delivering prudent, profitable growth, WellCare’s ability to effectively identify, estimate and manage growth, WellCare’s ability to effectively execute and integrate acquisitions, including the ability to achieve expected synergies within the expected time frames or at all, the ability to achieve accretion to WellCare’s earnings, revenues or other benefits expected, disruption to business relationships, operating results, and business generally of WellCare and/or Meridian and the ability to retain Meridian employees, potential reductions in Medicaid and Medicare revenue, WellCare’s ability to estimate and manage medical benefits expense effectively, including through its vendors, its ability to negotiate actuarially sound rates, especially in new programs with limited experience, WellCare’s ability to improve healthcare quality and access, the appropriation and payment by state governments of Medicaid premiums receivable, the outcome of any protests and litigation related to Medicaid awards, the approval of Medicaid contracts by CMS, any changes to the programs or contracts, WellCare’s ability to address operational challenges related to new business, and WellCare’s ability to meet the requirements of readiness reviews. Given the risks and uncertainties inherent in forward-looking statements, any of WellCare’s forward-looking statements could be incorrect and investors are cautioned not to place undue reliance on any of our forward-looking statements.

Additional information concerning these and other important risks and uncertainties can be found in the company’s filings with the U.S. Securities and Exchange Commission, included under the captions “Forward-Looking Statements” and “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2018, which contain discussions of WellCare’s business and the various factors that may affect it. Subsequent events and developments may cause actual results to differ, perhaps materially, from WellCare’s forward-looking statements. WellCare’s forward-looking statements speak only as of the date on which the statements are made. WellCare undertakes no duty, and expressly disclaims any obligation, to update these forward-looking statements to reflect any future events, developments or otherwise.