CAO Joseph W. White Named Interim CEO and Appointed CFO
Board Initiates Permanent CEO Search
Dale B. Wolf Named Chairman of the Board
Pre-Releases First Quarter 2017 GAAP Net Income Per Share
LONG BEACH, Calif.--(BUSINESS WIRE)--May 2, 2017--
Molina Healthcare, Inc. (NYSE: MOH) today announced leadership changes,
under which Joseph W. White, Chief Accounting Officer, has been named
Interim President and Chief Executive Officer replacing Dr. J. Mario
Molina. The Board will immediately commence the search process for a
permanent CEO. Mr. White has also been named Chief Financial Officer,
replacing John C. Molina. In addition, the Board of Directors has named
current Director Dale B. Wolf as Non-Executive Chairman of the Board.
These changes are effective immediately. Dr. J. Mario Molina and John C.
Molina will continue to serve as directors on the Board, and Dr. Molina
remains a candidate for re-election as a director at the Company’s
upcoming annual meeting.
“The Board of Directors appreciates Mario and John Molina’s leadership
and contributions for more than two decades,” said Dale B. Wolf,
Chairman. “In light of the Company’s disappointing financial
performance, the Board has determined to change leadership in order to
drive profitability through operational improvements. These changes
represent targeted and deliberate actions to enhance the Company’s focus
and improve its competitive position within the healthcare industry.
With the industry in dynamic transition, the Board believes that now is
the right time to bring in new leadership to capitalize on Molina’s
strong franchise and the opportunities we see for sustained growth. The
Board is committed to achieving operational excellence and improving the
Company’s financial performance on behalf of our shareholders, more than
20,000 employees and our over 4 million members.”
The Board has approved the adjournment of the annual meeting from
Wednesday, May 3 to Wednesday, May 10, 2017 at 10:00 a.m. Pacific Time,
at Molina Healthcare, Inc. Corporate Headquarters, 200 Oceangate, 15th
Floor, Long Beach, California 90802 in order to allow stockholders time
to consider the information described in this press release and the
additional information that will be set forth in a Form 8-K and a proxy
supplement to be filed by the Company, and to change their votes if
desired. The record date for the meeting will remain March 9, 2017.
Mr. White has over 25 years of financial management experience in the
healthcare industry, and served as Molina Healthcare’s Chief Accounting
Officer since June 2003. Mr. White has led the Company’s most recent
operational improvement initiatives and is a widely respected leader
both within the Company and in the greater healthcare industry. Prior to
joining Molina, Mr. White was the Chief Financial Officer of Maxicare
Health Plans, Inc., where he was also a member of the Board of Directors.
After market close today, the Company will report net income per diluted
share of $1.37 (inclusive of receipt of a $75 million ($0.84 per diluted
share) acquisition break-up fee).
Earnings Conference Call
Management will host a conference call and webcast to discuss Molina
Healthcare’s first quarter results at 5:00 p.m. Eastern time on Tuesday,
May 2, 2017. The number to call for the interactive teleconference is
(212) 231-2909. A telephonic replay of the conference call will be
available from 7:00 p.m. Eastern time on Tuesday, May 2, 2017, through
6:00 p.m. Eastern Time on Wednesday, May 3, 2017, by dialing (800)
633-8284 and entering confirmation number 21849898. A live audio
broadcast of Molina Healthcare’s conference call will be available on
our website, molinahealthcare.com. A 30-day online replay will be
available approximately an hour following the conclusion of the live
broadcast.
About Molina Healthcare, Inc.
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health
care services under the Medicaid and Medicare programs and through the
state insurance marketplaces. Through our locally operated health plans
in 12 states across the nation and in the Commonwealth of Puerto Rico,
Molina serves approximately 4.2 million members. Dr. C. David Molina
founded our company in 1980 as a provider organization serving
low-income families in Southern California. Today, we continue his
mission of providing high quality and cost-effective health care to
those who need it most. For more information about Molina Healthcare,
please visit our website at molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
This press release contains “forward-looking statements” regarding the
transition in our executive and board leadership, opportunities for
growth, and our financial performance. All forward-looking statements
are based on current expectations that are subject to numerous risk
factors that could cause actual results to differ materially. Such risk
factors include, without limitation, risks related to the impact of our
announced management and organizational changes; our ability to attract
and retain qualified senior management and other personnel; the
continued service and availability of key management personnel; market
opportunities and our ability to capitalize on them; and economic,
political, or regulatory conditions and other trends affecting the
healthcare industry that are beyond the control of management.
Additional information regarding the risk factors to which we are
subject is provided in greater detail in our periodic reports and
filings with the Securities and Exchange Commission, including our most
recent Annual Report on Form 10-K. These reports can be accessed under
the investor relations tab of our website or on the SEC’s website at
sec.gov. Given these risks and uncertainties, we cannot give assurances
that our forward-looking statements will prove to be accurate, or that
any other results or events projected or contemplated by our
forward-looking statements will in fact occur, and we caution investors
not to place undue reliance on these statements. All forward-looking
statements in this release represent our judgment as of the date hereof,
and we disclaim any obligation to update any forward-looking statements
to conform the statement to actual results or changes in our
expectations that occur after the date of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170502006437/en/
Source: Molina Healthcare, Inc.
Sard Verbinnen & Co
Meghan Gavigan/Paul Frankle
415-618-8750
