Health Net 2000 Annual Report Download - page 4

2 HEALTH NET 2000 Annual Report
Financial Highlights
Health Net, Inc.
Year ended December 31,
(Amounts in thousands, except per share data) 2000 1999(3) 1998(3) 1997(3) 1996(3)
Statement of Operations Data(2):
revenues
Health plan services premiums $7,351,098 $7,031,055 $7,124,161 $5,482,893 $5,395,125
Government contracts/Specialty services 1,623,158 1,529,855 1,411,267 1,408,402 1,225,723
Investment and other income 102,299 86,977 93,441 114,300 88,392
Total revenues 9,076,555 8,647,887 8,628,869 7,005,595 6,709,240
expenses
Health plan services 6,242,282 5,950,002 6,090,472 4,470,816 4,606,574
Government contracts/Specialty services 1,080,407 1,002,893 924,075 990,576 995,820
Selling, general and administrative 1,296,881 1,301,743 1,413,771 1,185,018 868,196
Depreciation and amortization 105,899 112,041 128,093 98,353 112,916
Interest 87,930 83,808 92,159 63,555 45,372
Asset impairment, merger, restructuring
and other costs – 11,724 240,053 286,525 27,408
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 7,094,843 6,656,286
Income (loss) from continuing operations
before income taxes 262,747 244,008 (254,154) (89,248) 52,954
Income tax provision (benefit) 99,124 96,226 (88,996) (21,418) 14,124
Income (loss) from continuing operations 163,623 147,782 (165,158) (67,830) 38,830
Discontinued operations(2):
Income (loss) from discontinued
operations, net of tax – – – (30,409) 25,084
Gain (loss) on disposition, net of tax – – – (88,845) 20,317
Income (loss) before cumulative effect
of change in accounting principle 163,623 147,782 (165,158) (187,084) 84,231
Cumulative effect of a change in
accounting principle, net of tax – (5,417) – – –
Net income (loss) $ 163,623 $ 142,365 $ (165,158) $ (187,084) $ 84,231
Basic earnings (loss) per share:
Continuing operations $ 1.34 $ 1.21 $ (1.35) $ (0.55) 0.31
Income (loss) from discontinued
operations, net of tax –––(0.25) 0.20
Gain (loss) on disposition, net of tax –––(0.72) 0.16
Cumulative effect of a change in
accounting principle –(0.05) –––
Net $ 1.34 $ 1.16 $ (1.35) $ (1.52) $ 0.67
Diluted earnings (loss) per share:
Continuing operations $ 1.33 $ 1.21 $ (1.35) $ (0.55) $ 0.31
Income (loss) from discontinued
operations, net of tax –––(0.25) 0.20
Gain (loss) on disposition, net of tax –––(0.72) 0.16
Cumulative effect of a change in
accounting principle –(0.05) –––
Net $ 1.33 $ 1.16 $ (1.35) $ (1.52) $ 0.67
Weighted average shares outstanding:
Basic 122,471 122,289 121,974 123,333 124,453
Diluted 123,453 122,343 121,974 123,333 124,966
Balance Sheet Data:
Cash and cash equivalents and investments
available for sale $1,533,637 $1,467,142 $1,288,947 $1,112,361 $1,122,916
Total assets 3,670,116 3,696,481 3,863,269 4,076,350 3,423,776
Notes payable and capital leases – noncurrent 766,450 1,039,352 1,254,278 1,308,979 791,618
Stockholders’equity (1)1,061,131 891,199 744,042 895,974 1,183,411
operating cash flow $ 366,163 $ 297,128 $ 100,867 $ (125,872) $ (6,666)
(1) No cash dividends were declared in each of the years presented.
(2) See Note 3 to the Consolidated Financial Statements for discussion of dispositions during 1999 impacting the comparability of information.The Company purchased
four health plans and one insurance company during 1997 which also impacts the comparability of information. Additionally, the Company’s workers’compensation
segment sold in 1998 and physician practice management segment sold in 1996 have been accounted for as discontinued operations.
(3) Certain reclassifications have been made to 1999, 1998 and 1997 statements of operations data to conform to the 2000 presentation. Comparable information for
1996 reclassifications is not available.