Health Net 2005 Annual Report Download - page 44

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Item 6. Selected Financial Data.
The following selected financial and operating data are derived from our audited consolidated financial
statements. The selected financial and operating data should be read in conjunction with “Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operation” and the consolidated financial
statements and notes thereto contained elsewhere in this Annual Report on Form 10-K.
Year Ended December 31,
2005 2004 2003 2002 2001
(Amounts in thousands, except per share data)
REVENUES (1):
Health plan services premiums . . $ 9,553,525 $ 9,560,244 $ 9,093,219 $ 8,581,658 $ 8,575,012
Government contracts ......... 2,307,483 2,021,871 1,865,773 1,498,689 1,339,066
Net investment income ......... 72,751 58,147 59,332 65,210 78,785
Other income ................ 6,774 6,131 46,378 49,201 70,282
Total revenues ........... $11,940,533 $11,646,393 $11,064,702 $10,194,758 $10,063,145
INCOME SUMMARY (2):
Income from continuing
operations before cumulative
effect of changes in accounting
principle .................. $ 229,785 $ 42,604(3) $ 323,080 $ 234,521 $ 80,942
Net income .................. $ 229,785 $ 42,604 $ 234,030(5) $ 225,580(6) $ 80,942
NET INCOME PER
SHARE—DILUTED:
Income from continuing
operations before cumulative
effect of changes in accounting
principle .................. $ 1.99 $ 0.38 $ 2.73 $ 1.86 $ 0.65
Net income .................. $ 1.99 $ 0.38 $ 1.98 $ 1.79 $ 0.65
Weighted average shares
outstanding:
Diluted ................. 115,641 113,038 118,278 126,004 125,186
BALANCE SHEET DATA (4):
Cash and cash equivalents and
investments available for
sale ...................... $ 2,106,303 $ 1,782,102 $ 1,943,660 $ 1,841,768 $ 1,764,289
Total assets .................. 3,940,722 3,653,194 3,549,276 3,460,751 3,566,841
Senior credit facility and capital
leases .................... — — — — 195,182
Senior notes payable .......... 387,954 397,760 398,963 398,821 398,678
Total stockholders’ equity ...... 1,589,075 1,272,880 1,294,225 1,300,416 1,159,925
OPERATING DATA:
Pretax margin ................ 3.2% 0.6% 4.7% 3.5% 1.3%
Health plan services medical care
ratio (MCR) ............... 83.9% 88.0% 82.7% 83.5% 84.5%
Government contracts cost
ratio ..................... 95.8% 95.3% 95.9% 96.9% 98.9%
Administrative ratio ........... 10.3% 9.7% 10.6% 10.6% 10.8%
Selling costs ratio ............. 2.3% 2.5% 2.6% 2.3% 2.2%
Health plan services premiums
per member per month
(PMPM) .................. $ 236.95 $ 217.31 $ 201.97 $ 186.92 $ 176.55
Health plan services costs
PMPM ................... $ 198.75 $ 191.24 $ 166.96 $ 155.99 $ 149.17
Net cash provided by (used in)
operating activities .......... $ 191,394 $ (54,912) $ 379,772 $ 413,517 $ 544,619
(1) See Note 3 to the consolidated financial statements for discussion of divestitures during 2005, 2004, 2003,
2002 and 2001 impacting the comparability of information.
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