Health Net 2000 Annual Report Download - page 22

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20 HEALTH NET 2000 Annual Report
The table below and the discussion that follows summarize the Company’s performance in the last three fiscal years.
Certain 1999 and 1998 amounts have been reclassified to conform to the 2000 presentation.These reclassifications did
not affect net income or loss or earnings or losses per share.
Year Ended December 31,
(Amounts in thousands, except per member per month data) 2000 1999 1998
revenues:
Health plan services premiums $7,351,098 $7,031,055 $7,124,161
Government contracts/Specialty services 1,623,158 1,529,855 1,411,267
Investment and other income 102,299 86,977 93,441
Total revenues 9,076,555 8,647,887 8,628,869
expenses:
Health plan services 6,242,282 5,950,002 6,090,472
Government contracts/Specialty services 1,080,407 1,002,893 924,075
Selling, general and administrative 1,296,881 1,301,743 1,413,771
Depreciation 67,260 70,010 78,951
Amortization 38,639 42,031 49,142
Interest 87,930 83,808 92,159
Asset impairment, merger, restructuring and other costs –11,724 240,053
Net loss (gain) on sale of businesses and properties 409 (58,332) (5,600)
Total expenses 8,813,808 8,403,879 8,883,023
Income (loss) from operations before income tax provision
and cumulative effect of a change in accounting principle 262,747 244,008 (254,154)
Income tax provision (benefit) 99,124 96,226 (88,996)
Income (loss) before cumulative effect of a change
in accounting principle 163,623 147,782 (165,158)
Cumulative effect of a change in accounting principle, net of tax –(5,417) –
Net income (loss) $ 163,623 $ 142,365 $ (165,158)
Health plan services medical care ratio (“MCR”) 84.9% 84.6% 85.5%
Government contracts/Specialty services MCR 66.6% 65.6% 65.5%
Administrative (SG&A + Depreciation) Ratio 15.2% 16.0% 17.5%
Health plan premiums per member per month $ 156.71 $ 138.76 $ 128.98
Health plan services per member per month $ 133.07 $ 117.42 $ 110.27
within the Company’s filings with the Securities and
Exchange Commission (“SEC”). Readers are cautioned
not to place undue reliance on these forward-looking
statements, which reflect management’s analysis, judg-
ment, belief or expectation only as of the date hereof.
Except as required by law, the Company undertakes no
obligation to publicly revise these forward-looking state-
ments to reflect events or circumstances that arise after
the date hereof.
results of operations
consolidated operating results
The Company’s net income for the year ended
December 31, 2000 was $163.6 million, or $1.33 per
diluted share, compared to net income for the same
period in 1999 of $142.4 million, or $1.16 per diluted
share.The Company’s net loss for the year ended
December 31, 1998 was $165.2 million, or $1.35 per
diluted share.