Financials

The investments we made in our people, processes and technology over the past few years, combined with an unrelenting drive towards excellence, made 2017 the strongest year in WellCare’s history.

TOTAL REVENUE ($ BILLIONS)

YearRevenue
201413.0
201513.9
201614.2
201717.0

TOTAL ASSETS ($ BILLIONS)

YearAssets
20144.4
20155.1
20166.2
20178.4

NET INCOME MARGIN (%)

YearPercent (GAAP)Percent (Adjusted)
20140.50.7
20150.91.2
20161.71.9
20172.22.3

EARNINGS PER DILUTED SHARE (%)

YearPercent (GAAP)Percent (Adjusted)
20141.442.06
20152.673.59
20165.435.96
20178.318.52

Reconciliation Table

Premium Revenue

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$ millions 2014 2015 2016 2017
GAAP premium revenue $12,915.5 $13,874.8 $14,220.9 $16,960.3
Medicaid premium taxes (76.5) (94.7) (110.0) (119.8)
ACA industry fee reimbursement (124.6) (219.2) (244.9)
Adjusted premium revenue (non-GAAP) $12,714.4 $13,560.9 $13,866.0 $16,840.5

Earnings per share and adjusted net income margin

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$ millions (except per share data)
 
 
2014
Per
Diluted
Share
 
 
2015
Per
Diluted
Share
 
 
2016
Per
Diluted
Share
 
 
2017
Per
Diluted
Share
GAAP net income $63.7 $1.44 $118.6 $2.67 $242.1 $5.43 $373.7 $8.31
Investigation costs 37.6 0.86 30.4 0.68 16.0 0.36 7.9 0.18
Transaction and integration costs 37.5 0.83
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 costs 11.9 0.27 5.2 0.12
Amortization expense 10.6 0.24 10.4 0.22 32.7 0.73
Gain on divestiture (6.1) (0.14)
Loss on extinguishment on debt 26.1 0.58
Tax benefit due to TCJA(1) (56.1) (1.25)
Tax effect of adjustments (10.4) (0.24) (26.2) (0.59) (14.3) (0.32) (38.6) (0.86)
Adjusted net income (non-GAAP) $90.9 $2.06 $159.3 $3.59 $266.0 $5.96 $383.2 $8.52
GAAP net income margin 0.5% 0.9% 1.7% 2.2%
Adjusted net income margin (non-GAAP)(2) 0.7% 1.2% 1.9% 2.3%

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 premium revenue.

Cautionary Statement Regarding Forward-Looking Statements
This information 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 our financial outlook contain forward-looking statements. Subsequent events and developments may cause actual results to differ, perhaps materially, from these forward-looking statements. Investors are cautioned not to place undue reliance on any of our forward-looking statements. Additional information describing the risks and uncertainties can be found in our filings with the U.S. Securities and Exchange Commission (“SEC”), included under the captions “Forward-Looking Statements” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, and our other filings with the SEC, which contain discussions of our business and the various factors that may affect it. Our forward-looking statements speak only as of the date on which the statements are made. We undertake no duty, and expressly disclaim any obligation, to update these forward-looking statements to reflect any future events, developments or otherwise.