Humana Inc. Announces Investor Day and Raises Earnings Guidance
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LOUISVILLE, Ky., Dec 1, 2004 /PRNewswire-FirstCall via COMTEX/ -- Humana Inc. (NYSE: HUM) today announced that its management team will be hosting an Investor Day in New York City on Thursday, December 2, 2004. The company's Investor Day will include presentations by various members of management regarding Humana's strategic, operational and financial progress to date and future earnings guidance. Humana's event is scheduled to begin at 8:00 a.m. eastern.
In conjunction with the meeting, the company is raising its guidance for diluted earnings per common share for 2004 to approximately $1.69, at the higher-end of its previous guidance range of $1.66 to $1.69, with 2005 expected to be a 15 percent increase over the current 2004 estimate. Other earnings guidance points anticipated to be discussed at the Investor Day are detailed in this release.
The attached guidance points include projections for cash flows from operations that are not in accordance with Generally Accepted Accounting Principles ("GAAP"). When reviewing and analyzing Humana's cash flow position, company management apportions the Centers for Medicare and Medicaid Services ("CMS") premium payment in each month to match disbursements. To do otherwise distorts meaningful analysis of the company's operating cash flow. Therefore, decisions such as management's forecasting and business plans regarding cash flow use this non-GAAP measurement.
Humana invites the investing public and the media to listen to its Investor Day via the Internet. A live virtual presentation (audio with slides) will be available and may be accessed via Humana's Investor Relations page at http://www.humana.com . The company suggests web participants sign on approximately 15 minutes in advance of the meeting. The company also suggests web participants visit the site well in advance of the call to run a system test and to download any free software needed to view the presentation.
This news release contains forward-looking statements. The forward- looking statements made in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in Humana's Form 10-K for the year ended December 31, 2003, and its Form 10-Qs for the quarters ended March 31, 2004, June 30, 2004, and September 30, 2004, as filed by Humana with the Securities and Exchange Commission.
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's largest publicly traded health benefits companies, with approximately 7 million medical members located primarily in 15 states and Puerto Rico. Humana offers a diversified portfolio of health insurance products and related services -- through traditional and consumer-choice plans -- to employer groups, government-sponsored plans, and individuals.
Over its 43-year history, Humana has consistently seized opportunities to meet changing customer needs. Today, Humana is a leader in consumer engagement. Throughout its diversified customer portfolio, the company provides guidance that can both help lower costs and lead to a better health plan experience.
More information regarding Humana is available to investors via the Investor Relations page of the company's web site at http://www.humana.com , including copies of:
* Annual report to stockholders;
* Securities and Exchange Commission filings;
* Most recent investor conference presentation;
* Quarterly earnings press releases (including detailed description of
unusual items, where applicable);
* Audio archive of most recent earnings release conference call;
* Calendar of events (includes upcoming earnings conference call dates,
times, and access number, as well as planned interaction with
institutional investors);
* Corporate Governance Information.
Humana's Investor Day 2004
AGENDA
Business session - 8:00 a.m. - 12:30 p.m. eastern
Topic Speaker Title
Welcome Regina C. Nethery Vice President,
Investor Relations
Opening Remarks Michael B. McCallister President and
Chief Executive
Officer
Product & Clinical Jonathan T. Lord, M.D. Senior Vice President
Innovation and Chief Innovation
Officer
Elizabeth D. Bierbower Vice President,
Product Innovation
Customer Experience Jeremy B. Sochol Vice President-Human
Resources
Standard Register
Technological Bruce J. Goodman Senior Vice President
Innovation & Service and Chief Service and
Operations Information Officer
Operational Review James E. Murray Chief Operating
Officer
R. Eugene Shields Senior Vice President,
Government and Senior
Operations
Tod J. Zacharias Vice President,
Individual and Small
Group Operations
Stefen F. Brueckner Vice President,
Commercial Markets and
Mid-Market Operations
William J. Tait Vice President,
Sales and National
Accounts
David J. Baker President and
Chief Executive
Officer HMHS
Financials James H. Bloem Senior Vice President
and Chief Financial
Officer
Closing Remarks Michael B. McCallister President and
Chief Executive
Officer
Earnings Guidance Points
Humana Investor Day 2004
2004 Guidance Points 2005 Guidance Points
Earnings per share - Approximately $1.69 15% increase over 2004
full year
Earnings per share - Approximately $0.26
4Q04
Consolidated revenues $13 billion
Commercial segment $140 million Increase of 10% to 15%
pretax income
Commercial medical Year-over-year growth Slightly higher
enrollment of 220,000 to 230,000 excluding loss of 89K
(including acquisition member account on
of Ochsner Health Plan January 1, 2005
on April 1, 2004)
Increase in Commercial 6% to 8% overall; 6.5% to 8.5% overall;
segment fully insured 7.5% to 9.5% group 8.5% to 10.5% group
medical premiums on a only only
per-member basis
Increase in Commercial 6.5% to 8.5% overall; 6.5% to 8.5% overall;
segment fully insured 8.5% to 10.5% group 8.5% to 10.5% group
medical costs on a only only
per-member basis
TRICARE pretax margin 2% to 3% 2% to 3%
Medicare year-end Growth of 15% Growth of 10% to 15%
membership (including acquisition
of Ochsner Health Plan
on April 1, 2004)
TRICARE membership 2.8 million No material change
Increase in Medicare 9% to 11% 5% to 7%
medical premiums on a
per-member basis
Increase in Medicare 9% to 11% 5% to 7%
medical costs on a
per-member basis
TRICARE revenues $2.2 billion
Consolidated SG&A 14% to 15% 13.5% to 14.5%
ratio
Commercial segment 16% to 17%
SG&A expense ratio
Government segment 11% to 12%
SG&A expense ratio
Cash Flows from $288 million to
Operations - GAAP $338 million
Cash Flows from $500 million to
Operations - Non-GAAP $550 million (GAAP
cash flows plus
$212 million related
to the timing of the
premium payment from
CMS)
Capital expenditures $100 million to
$110 million
Effective tax rate Approximately 34% Approximately 34%
SOURCE Humana Inc.
Regina Nethery of Humana Investor Relations, +1-502-580-3644, or Rnethery@humana.com , or Tom Noland of Humana Corporate Communications, +1-502-580-3674, or Tnoland@humana.com /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030425/HUMANALOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com /Company News On-Call: http://www.prnewswire.com/comp/423125.html
http://www.humana.com