|
|
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
., |
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
|
|
Item 8.01.
|
Other Events.
|
For the Three Months Ended
December 31,
|
For the Year Ended
December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Company revenue:
|
||||||||||||||||
As determined under GAAP
|
$
|
6,988.5
|
$
|
6,070.8
|
$
|
27,901.0
|
$
|
20,414.1
|
||||||||
Medicaid premium taxes
|
(33.9
|
)
|
(32.6
|
)
|
(132.9
|
)
|
(126.8
|
)
|
||||||||
ACA industry fee reimbursement
|
—
|
(103.2
|
)
|
—
|
(302.2
|
)
|
||||||||||
Adjusted revenue(1)
|
$
|
6,954.6
|
$
|
5,935.0
|
$
|
27,768.1
|
$
|
19,985.1
|
||||||||
SG&A Expense:
|
||||||||||||||||
As determined under GAAP
|
$
|
667.7
|
$
|
534.0
|
$
|
2,225.7
|
$
|
1,701.0
|
||||||||
Adjustments:
|
||||||||||||||||
Investigation costs
|
—
|
(0.1
|
)
|
—
|
(0.4
|
)
|
||||||||||
Transaction and integration costs
|
(54.6
|
)
|
(7.6
|
)
|
(104.2
|
)
|
(33.1
|
)
|
||||||||
Adjusted SG&A Expense(1)
|
$
|
613.1
|
$
|
526.3
|
$
|
2,121.5
|
$
|
1,667.5
|
||||||||
SG&A expense ratio:
|
||||||||||||||||
As determined under GAAP
|
9.6
|
%
|
8.8
|
%
|
8.0
|
%
|
8.3
|
%
|
||||||||
Effect of Medicaid premium taxes
|
—
|
%
|
0.1
|
%
|
—
|
%
|
0.1
|
%
|
||||||||
Effect of ACA industry fee reimbursement
|
—
|
%
|
0.2
|
%
|
—
|
%
|
0.1
|
%
|
||||||||
Effect of SG&A expense adjustments above(1)
|
(0.8
|
)%
|
(0.2
|
)%
|
(0.4
|
)%
|
(0.2
|
)%
|
||||||||
Adjusted SG&A expense ratio(1)
|
8.8
|
%
|
8.9
|
%
|
7.6
|
%
|
8.3
|
%
|
For the Three Months Ended
December 31, 2019
|
For the Three Months Ended
December 31, 2018
|
|||||||||||||||||||||||||
GAAP
|
Adjustments
|
Adjusted
(Non-
GAAP)
|
GAAP
|
Adjustments
|
Adjusted
(Non-GAAP)
|
|||||||||||||||||||||
Selling, general, and administrative expense
|
$
|
667.7
|
$
|
(54.6
|
)
|
(1)
|
$
|
613.1
|
$
|
534.0
|
$
|
(7.7
|
)
|
(1)
|
$
|
526.3
|
||||||||||
Depreciation and amortization
|
$
|
68.7
|
$
|
(32.4
|
)
|
$
|
36.3
|
$
|
62.6
|
$
|
(31.6
|
)
|
$
|
31.0
|
||||||||||||
Income tax (benefit) expense
|
$
|
(7.9
|
)
|
$
|
22.3
|
(2)
|
$
|
14.4
|
$
|
33.3
|
$
|
12.8
|
(2)
|
$
|
46.1
|
|||||||||||
Effective tax rate
|
NM
|
NM
|
(2)
|
16.6
|
%
|
37.3
|
%
|
(1.4
|
)%
|
(2)
|
35.9
|
%
|
||||||||||||||
Net income
|
$
|
7.7
|
$
|
64.7
|
$
|
72.4
|
$
|
55.9
|
$
|
26.5
|
$
|
82.4
|
||||||||||||||
Net income margin
|
0.1
|
%
|
0.9
|
%
|
1.0
|
%
|
0.9
|
%
|
0.5
|
%
|
1.4
|
%
|
||||||||||||||
Earnings per share:
|
||||||||||||||||||||||||||
Basic
|
$
|
0.15
|
$
|
1.29
|
$
|
1.44
|
$
|
1.12
|
$
|
0.53
|
$
|
1.65
|
||||||||||||||
Diluted
|
$
|
0.15
|
$
|
1.27
|
$
|
1.42
|
$
|
1.11
|
$
|
0.52
|
$
|
1.63
|
For the Year Ended
December 31, 2019
|
For the Year Ended
December 31, 2018
|
|||||||||||||||||||||||||
GAAP
|
Adjustments
|
Adjusted
(Non-
GAAP)
|
GAAP
|
Adjustments
|
Adjusted
(Non-GAAP)
|
|||||||||||||||||||||
Selling, general, and administrative expense
|
$
|
2,225.7
|
$
|
(104.2
|
)
|
(1)
|
$
|
2,121.5
|
$
|
1,701.0
|
$
|
(33.5
|
)
|
(1)
|
$
|
1,667.5
|
||||||||||
Depreciation and amortization
|
$
|
266.3
|
$
|
(129.6
|
)
|
$
|
136.7
|
$
|
179.7
|
$
|
(72.7
|
)
|
$
|
107.0
|
||||||||||||
Income tax expense
|
$
|
159.3
|
$
|
57.9
|
(2)
|
$
|
217.2
|
$
|
253.0
|
$
|
23.7
|
(2)
|
$
|
276.7
|
||||||||||||
Effective tax rate
|
21.5
|
%
|
0.8
|
%
|
(2)
|
22.3
|
%
|
36.5
|
%
|
(1.9
|
)%
|
(2)
|
34.6
|
%
|
||||||||||||
Net income
|
$
|
582.9
|
$
|
175.9
|
$
|
758.8
|
$
|
439.8
|
$
|
82.5
|
$
|
522.3
|
||||||||||||||
Net income margin
|
2.1
|
%
|
0.6
|
%
|
2.7
|
%
|
2.2
|
%
|
0.4
|
%
|
2.6
|
%
|
||||||||||||||
Earnings per share:
|
||||||||||||||||||||||||||
Basic
|
$
|
11.60
|
$
|
3.50
|
$
|
15.10
|
$
|
9.40
|
$
|
1.77
|
$
|
11.17
|
||||||||||||||
Diluted
|
$
|
11.46
|
$
|
3.46
|
$
|
14.92
|
$
|
9.29
|
$
|
1.74
|
$
|
11.03
|
Item 9.01.
|
Financial Statements and Exhibits.
|
(a)
|
Financial Statements of Businesses Acquired.
|
(b)
|
Pro forma Financial Information.
|
(d)
|
Exhibits.
|
Exhibit
Number
|
Description
|
Audited consolidated balance sheets of WellCare Health Plans, Inc. and its subsidiaries as of December 31, 2019 and 2018 and the related consolidated
statements of comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2019.
|
|
Unaudited pro forma condensed combined financial information and explanatory notes for the year ended December 31, 2019.
|
|
Consent of Deloitte & Touche LLP, independent registered public accounting firm of WellCare Health Plans, Inc.
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
CENTENE CORPORATION
|
||
Date: February 26, 2020
|
By:
|
/s/ Jeffrey A. Schwaneke
|
Jeffrey A. Schwaneke
|
||
Executive Vice President, Chief Financial Officer and Treasurer
|