Health Net 2007 Annual Report Download - page 52

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 Operations” and the consolidated financial
statements and notes thereto contained elsewhere in this Annual Report on Form 10-K.
Year Ended December 31,
2007 2006 2005 2004 2003
(Dollars in thousands, except per share and PMPM data)
REVENUES:
Health plan services premiums ............... $11,435,314 $10,364,740 $ 9,506,865 $ 9,517,530 $ 9,046,303
Government contracts ...................... 2,501,677 2,376,014 2,307,483 2,021,871 1,865,773
Net investment income ..................... 120,176 111,042 72,751 58,147 59,332
Administrative services fees and other income . . . 51,104 56,554 53,434 48,845 93,294
Total revenues ........................ $14,108,271 $12,908,350 $11,940,533 $11,646,393 $11,064,702
INCOME SUMMARY (1):
Income from continuing operations ........... $ 193,697 $ 329,313 $ 229,785 $ 42,604 $ 323,080
Net income .............................. $ 193,697 $ 329,313 $ 229,785 $ 42,604 $ 234,030(3)
NET INCOME PER SHARE—DILUTED (1):
Income from continuing operations ........... $ 1.70 $ 2.78 $ 1.99 $ 0.38 $ 2.73
Net income .............................. $ 1.70 $ 2.78 $ 1.99 $ 0.38 $ 1.98(3)
Weighted average shares outstanding:
Diluted .............................. 113,829 118,310 115,641 113,038 118,278
BALANCE SHEET DATA:
Cash and cash equivalents and investments
available for sale ........................ $ 2,564,295 $ 2,120,844 $ 2,106,303 $ 1,782,102 $ 1,943,660
Total assets .............................. 4,933,055 4,297,022 3,940,722 3,653,194 3,549,276
Loans payable—Current .................... 35,000 200,000 — — —
Loans payable—Long term .................. 112,363 300,000 — — —
Senior notes payable ....................... 398,071 — 387,954 397,760 398,963
Total stockholders’ equity (2) ................ 1,875,582 1,778,965 1,589,075 1,272,880 1,294,225
OPERATING DATA:
Pretax margin ............................ 2.5% 3.7% 3.2% 0.6% 4.7%
Health plan services medical care ratio (MCR) . . 85.4% 83.0% 84.3% 88.4% 83.1%
Government contracts cost ratio .............. 92.2% 94.0% 95.8% 95.3% 95.9%
G&A expense ratio ........................ 11.1% 11.2% 10.0% 9.3% 10.0%
Selling costs ratio ......................... 2.9% 2.4% 2.3% 2.5% 2.6%
Health plan services premiums per member per
month (PMPM) ......................... $ 263.54 $ 243.70 $ 235.80 $ 216.34 $ 200.93
Health plan services costs PMPM ............. $ 225.00 $ 202.22 $ 198.75 $ 191.24 $ 166.96
Net cash provided by (used in) operating
activities ............................... $ 605,482 $ 277,937 $ 191,394 $ (54,912) $ 379,772
Net cash (used in) investing activities .......... $ (230,195) $ (184,879) $ (244,046) $ (14,242) $ (105,522)
Net cash (used in) provided by financing
activities ............................... $ (73,076) $ (130,737) $ 73,035 $ (69,615) $ (246,172)
(1) Includes $306.8 million pretax litigation and regulatory-related charge for 2007; $107.2 million pretax debt refinancing
and litigation charge for 2006; $83.3 million pretax litigation and severance charge for 2005; and $31.7 million pretax
severance, asset impairment and other charge and $169 million pretax charge associated with provider settlements for
2004. See Notes 12 and 14 to the consolidated financial statements for additional information on these charge items.
(2) No cash dividends were declared in each of the years presented.
(3) Includes loss on settlement from disposition of discontinued operations of $89.1 million, net of tax.
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