Anthem Blue Cross 2001 Annual Report Download - page 66

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20. Selected Quarterly Financial Data (Unaudited)
Selected quarterly financial data is as follows:
For the Quarter Ended
March 31 June 30 September 30 December 31
2001 Data
Total revenues $2,560.5 $2,558.3 $2,663.7 $2,662.2
Operating gain 59.9 73.4 79.1 107.1
Net income 70.6 72.4 111.5 87.7
Pro forma basic earnings per share 0.68 0.70 1.08 0.85
Pro forma diluted earnings per share 0.68 0.70 1.07 0.85
Basic and diluted net income per share for
the period from November 2, 2001
(date of demutualization and initial
public offering) to December 31, 2001 – – – 0.54
2000 Data
Total revenues $1,962.1 $2,104.1 $2,320.0 $2,384.8
Operating gain 32.4 34.2 53.3 64.2
Net income 40.4 49.9 63.5 72.2
Pro forma basic earnings per share 0.39 0.48 0.62 0.70
Pro forma diluted earnings per share 0.39 0.48 0.61 0.70
There were no shares or dilutive securities outstanding prior to the demutualization and initial public offering. For
comparative pro forma earnings per share presentation, the weighted average shares outstanding and the effect of
dilutive securities for the period from November 2, 2001 to December 31, 2001 was used to calculate pro forma
earnings per share for all periods presented.
21. Subsequent Events
Anthem’s Board of Directors approved a common stock repurchase program under which management has been
authorized to purchase up to $400.0 worth of shares, subject to business and market conditions. Shares may be
repurchased in the open market and in negotiated transactions for a period of twelve months beginning February 6,
2002.
On May 30, 2001, Anthem Insurance and Blue Cross and Blue Shield of Kansas (“BCBS-KS”) signed a definitive
agreement pursuant to which BCBS-KS would become a wholly-owned subsidiary of Anthem Insurance. Under the
proposed transaction, BCBS-KS would demutualize and convert to a stock insurance company. The agreement calls
for Anthem Insurance to pay $190.0 in exchange for all of the shares of BCBS-KS. On February 11, 2002, the Kansas
Insurance Commissioner disapproved the proposed transaction, which had been previously approved by the
BCBS-KS policyholders in January 2002. On February 19, 2002, the board of directors of BCBS-KS voted
unanimously to appeal the Kansas Insurance Commissioner’s decision and BCBS-KS will seek to have the decision
overturned in Shawnee County District Court. The Company will join BCBS-KS in the appeal.
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