Health Net 2009 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,
2009 2008 2007 2006 2005
(Dollars in thousands, except per share and PMPM data)
REVENUES:
Health plan services premiums ............... $12,440,589 $12,392,006 $11,435,314 $10,364,740 $ 9,506,865
Government contracts ...................... 3,104,700 2,835,261 2,501,677 2,376,014 2,307,483
Net investment income ..................... 105,930 91,042 120,176 111,042 72,751
Administrative services fees and other income . . . 62,022 48,280 51,104 56,554 53,434
Total revenues ........................ $15,713,241 $15,366,589 $14,108,271 $12,908,350 $11,940,533
INCOME SUMMARY (1):
Net (loss) income .......................... $ (49,004) $ 95,003 $ 193,697 $ 329,313 $ 229,785
NET INCOME PER SHARE—DILUTED (1):
Net (loss) income .......................... $ (0.47) $ 0.88 $ 1.70 $ 2.78 $ 1.99
Weighted average shares outstanding:
Diluted .............................. 103,849 107,610 113,829 118,310 115,641
BALANCE SHEET DATA:
Cash and cash equivalents and investments
available for sale ........................ $ 2,079,815 $ 2,172,859 $ 2,564,295 $ 2,120,844 $ 2,106,303
Total assets .............................. 4,282,651 4,816,350 4,933,055 4,297,022 3,940,722
Loans payable—Current .................... 104,007 27,335 35,000 200,000 —
Loans payable—Long term .................. 100,000 253,992 112,363 300,000 —
Senior notes payable ....................... 398,480 398,276 398,071 — 387,954
Total stockholders’ equity (2) ................ 1,695,783 1,752,126 1,875,582 1,778,965 1,589,075
OPERATING DATA:
Pretax margin ............................ (0.2)% 1.0% 2.5% 3.7% 3.2%
Health plan services medical care ratio (MCR) . . 86.3% 86.9% 85.4% 83.0% 84.3%
Government contracts cost ratio .............. 94.7% 95.3% 92.2% 94.0% 95.8%
G&A expense ratio ........................ 10.9% 10.4% 11.1% 11.2% 10.0%
Selling costs ratio ......................... 2.7% 2.9% 2.9% 2.4% 2.3%
Health plan services premiums per member per
month (PMPM) ......................... $ 294.25 $ 277.79 $ 263.54 $ 243.70 $ 235.80
Health plan services costs PMPM ............. $ 253.84 $ 241.27 $ 225.00 $ 202.22 $ 198.75
Net cash provided by (used in) operating
activities ............................... $ 247,533 $ (158,962) $ 605,482 $ 277,937 $ 191,394
Net cash (used in) investing activities .......... $ (135,174) $ (67,871) $ (230,195) $ (184,879) $ (244,046)
Net cash (used in) provided by financing
activities ............................... $ (97,757) $ (111,983) $ (73,076) $ (130,737) $ 73,035
(1) For 2009, includes pretax charges of $105.9 million for loss on Northeast Sale, $174.9 million of asset impairment on
Northeast operations and $123.6 million related to our operations strategy, reductions for a litigation reserve true-ups and
Northeast Sale-related expenses. For 2008, includes a $175.1 million pretax charge of which $119.6 million was
primarily related to severance and other expenses associated with the Company’s operations strategy and included in
G&A expenses, $37.5 million of which was included in health plan services expenses for estimated litigation liability
and regulatory actions, $14.6 million of which was an investment impairment charge included in net investment income,
and $3.4 million of which related to an impairment of the assets of a subsidiary and was included in other income. For
2007, includes a $306.8 million pretax litigation and regulatory-related charge. For 2006, includes a $107.2 million
pretax charge relating to debt refinancing and litigation. For 2005, includes a $83.3 million pretax charge for litigation
and severance.
(2) No cash dividends were declared in any of the years presented.
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