Humana Inc. to Host Investor Day on November 9, 2006
LOUISVILLE, Ky.--(BUSINESS WIRE)--Nov. 8, 2006--Humana Inc. (NYSE: HUM) announced today that its leadership team will be hosting an Investor Day in New York, New York on Thursday, November 9, 2006. The company's Investor Day will include presentations by various company executives regarding Humana's strategic, operational and financial progress to date as well as expectations for future performance. Humana's event is scheduled to begin at 8:00 a.m. eastern.
In conjunction with this event, the company is reiterating its guidance for diluted earnings per common share of $2.82 to $2.88 for the year ending December 31, 2006 and $3.90 to $4.10 for the year ending December 31, 2007. Additional earnings guidance points which may be discussed at the company's Investor Day are detailed below.
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 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.
Cautionary Statement
This news release contains forward-looking statements and earnings guidance points. The forward-looking statements herein 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 the following documents filed by Humana with the Securities and Exchange Commission:
-- Form 10-K for the year ended December 31, 2005,
-- Form 10-Qs for the quarters ended March 31, 2006, June 30,
2006, and September 30, 2006.
About Humana
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's largest publicly traded health benefits companies, with more than 11 million medical members. 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 45-year history, Humana has consistently seized opportunities to meet changing customer needs. Today, the company is a leader in consumer engagement, providing guidance that leads to lower costs and a better health plan experience throughout its diversified customer portfolio.
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 news releases;
-- Replays 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 research analysts and institutional
investors);
-- Corporate Governance Information.
Humana's Investor Day 2006
AGENDA
----------------------------------------------------------------------
7:30 a.m. - Registration/Continental Breakfast
8:00 a.m. - Business Session
11:45 a.m. - Luncheon with Humana Management
----------------------------------------------------------------------
Business Session Speaker Title
----------------------------------------------------------------------
Welcome Regina C. Nethery Vice President,
Investor Relations
Humana's Growth Strategy Michael B. McCallister President and Chief
Executive Officer
Commercial Operations James E. Murray Chief Operating
Officer
Medicare Operations Stefen F. Brueckner Vice President,
Senior Products
Clinical Operations Jonathan T. Lord, M.D. Senior Vice
President and Chief
Innovation Officer
Financials James H. Bloem Senior Vice
President, Chief
Financial Officer,
and Treasurer
Closing Remarks Michael B. McCallister President and Chief
Executive Officer
----------------------------------------------------------------------
Earnings Guidance Points
Humana Investor Day 2006
For the year For the year
ending December ending December
31, 2006 31, 2007 Comments
----------------------------------------------------------------------
Diluted Full year EPS: Full year EPS: 2006 EPS growth rate
earnings per $2.82 to $2.88; $3.90 to $4.10 of 58% to 61%
common share Fourth quarter 2007 EPS growth rate
(EPS) EPS: $0.84 to of 35% to 45%
$0.90
----------------------------------------------------------------------
Revenues Consolidated Consolidated
revenues: $21 revenues: $24
billion to $22 billion to $26
billion; billion;
Medicare Medicare
Advantage: $8.5 Advantage:
billion to $9.0 $10.5 billion
billion; to $12.0
Medicare stand- billion;
alone PDPs: Medicare stand-
$2.8 billion to alone PDPs:
$3.2 billion; $3.0 billion to
TRICARE: $2.5 $3.5 billion;
billion to $2.9 TRICARE: $2.5
billion; billion to $3.5
Commercial: $6.5 billion;
billion to $7.0 Commercial: $6.0
billion billion to $7.0
billion
----------------------------------------------------------------------
Ending medical Medicare Medicare Commercial
membership Advantage: Advantage: represents combined
approximately 1 approximately ASO and fully
million; 1.1 million to insured medical
Medicare stand- 1.2 million; membership
alone PDPs: Medicare stand-
approximately alone PDPs:
3.5 million; approximately
TRICARE: No 3.5 million
material change including the
from prior anticipated
year; loss of
Medicaid: Down approximately
approximately 300,000
50,000 from Complete plan
prior year; members;
Commercial: Up TRICARE: No
approximately material change
110,000 to from prior
120,000 from year;
prior year Medicaid: No
including the material change
benefit of from prior
members year;
acquired via Commercial: Up
the CHA Health approximately
acquisition 50,000 to
75,000 from
prior year
----------------------------------------------------------------------
Medical costs Total Medicare Total Medicare 2007 same-store
products products trend for
(Medicare (Medicare individual medical
Advantage and Advantage and cost trend
stand-alone stand-alone components is not
PDP) MER in the PDP) MER in the anticipated to be
range of 84% to range of 82% to materially
85%; 84%; different from 2006
Commercial fully Commercial fully
insured groups: insured groups:
Medical cost Medical cost
trends in the trends in the
range of 5% to range of 5% to
6%; premium 6%; premium
yields in line yields in line
with medical with medical
cost trends cost trends
----------------------------------------------------------------------
Selling, Consolidated Consolidated
general & SG&A expense SG&A expense
administrative ratio of 13.5% ratio of 13% to
expenses to 14.5% 14%
----------------------------------------------------------------------
Investment Investment Investment 2007 is not forecast
income and income of $280 income of $280 to include any
interest million to $290 million to $290 material gains from
expense million million with no venture capital
including material investments due to
approximately benefit from fewer such
$75 million in venture capital investments now
venture capital gains; held by the company
gains; Interest expense Investment income
Interest expense of (net of interest
of approximately expense) is
approximately $70 million recorded to the
$64 million Net investment business segments
Net investment income by based upon changes
income by segment: 55% to in working capital
segment: 35% to 60% Government that fund cash
40% Government Segment; 40% to available for
Segment; 60% to 45% Commercial investment
65% Commercial Segment
Segment
----------------------------------------------------------------------
Pretax results Total Medicare Total Medicare Investment and other
products products income and interest
(Medicare (Medicare expense are not
Advantage and Advantage and recorded at the
stand-alone stand-alone line-of-business
PDP): 2.5% to PDP): 4% to 5% level
3.5% pretax pretax margin
margin including a
including a pretax gain on
pretax loss on stand-alone
stand-alone PDP;
PDP; TRICARE:
TRICARE: Approximately
Approximately 3% to 4% pretax
3% to 4% pretax margin;
margin; Commercial
Commercial Segment: $190
Segment: $210 million to $210
million to $230 million
million including no
including material
approximately benefit from
$45 million in venture capital
venture capital gains
investment
gains
----------------------------------------------------------------------
Cash flows from $1.6 billion to At least $1.8 2006 cash flows from
operations $1.8 billion billion operations is
anticipated to be
used towards
capital
expenditures
(approximately
10%), net Part D
risk-share payment
to be remitted in
2007 (approximately
40%), and capital
contributions into
the subsidiaries
(approximately 50%)
2007 cash flows from
operations include
the forecasted
payment to CMS of
the net Part D
risk-share payable
related to the 2006
plan year
----------------------------------------------------------------------
Capital $190 million to Approximately
expenditures $200 million $200 million
----------------------------------------------------------------------
Effective tax Approximately Approximately
rate 35% to 37% 36% to 38%
----------------------------------------------------------------------
Shares used in Approximately Approximately
computing EPS 168 million 171 million
----------------------------------------------------------------------
CONTACT: Humana Inc., Louisville
Regina Nethery, 502-580-3644
Humana Investor Relations
Rnethery@humana.com
or
Tom Noland, 502-580-3674
Humana Corporate Communications
Tnoland@humana.com
SOURCE: Humana Inc.