Health Net 2003 Annual Report Download - page 114

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Note 17—Quarterly Information (Unaudited)
The following interim financial information presents the 2003 and 2002 results of operations on a quarterly basis
(amounts in thousands, except per share data).
2003
March 31 June 30 September 30 December 31
Totalrevenues.......................................... $2,715,685 $2,752,662 $2,816,723 $2,779,632
Income from continuing operations before income taxes and loss
on settlement from disposition ........................... 116,348 118,514 138,742 143,367
Netincome(loss) ....................................... 72,135 74,784 (2,238) 89,349
BASIC EARNINGS (LOSS) PER SHARE
Netincome(loss) ............................... $ 0.61 $ 0.64 $ (0.02) $ 0.79
DILUTED EARNINGS (LOSS) PER SHARE
Netincome(loss) ............................... $ 0.60 $ 0.63 $ (0.02) $ 0.77
2002
March 31 June 30 September 30 December 31
Totalrevenues.......................................... $2,469,334 $2,505,250 $2,574,060 $2,646,114
Income from continuing operations before income taxes and
cumulative effect of a change in accounting principle ......... 89,540 96,471 100,891 64,993
Netincome ............................................ 49,617 64,214 66,597 45,152
BASIC EARNINGS PER SHARE
Netincome ............................................ $ 0.40 $ 0.51 $ 0.53 $ 0.37
DILUTED EARNINGS PER SHARE
Netincome ............................................ $ 0.39 $ 0.50 $ 0.53 $ 0.36
Note 18—Subsequent Event
On March 1, 2004, we completed the sale of two subsidiaries, American VitalCare, Inc. and Managed Alternative
Care, Inc., to a subsidiary of Rehabcare Group, Inc. We received a payment of approximately $11 million, subject to
certain post-closing adjustments, and a $3 million subordinated promissory note. In addition, we retained an interest in
certain accounts receivables of the subsidiaries. These subsidiaries are reported as part of our Government Contracts
reportable segment.
These subsidiaries had $14.7 million, $11.5 million and $13.0 million of total revenues for the year ended
December 31, 2003, 2002 and 2001, respectively, and $3.4 million, $1.3 million and $3.4 million of income before
income taxes for the year ended December 31, 2003, 2002 and 2001, respectively. As of December 31, 2003, these
subsidiaries had a combined total of approximately $7 million in net equity, excluding certain assets that we will retain as
part of the agreement, which we will recover through the sales proceeds.
F-41