UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
Current
Report
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): January 31, 2006
MOLINA
HEALTHCARE, INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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1-31719
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13-4204626
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(State
of incorporation)
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(Commission
File Number)
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(I.R.S.
Employer Identification
Number)
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One
Golden Shore Drive, Long Beach, California 90802
(Address
of principal executive offices)
Registrant’s
telephone number, including area code: (562) 435-3666
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting
material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement
communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02. Results
of Operations and Financial Condition.
On
January
31, 2006, Molina Healthcare, Inc. issued a press release announcing 2006
guidance and preliminary earnings for the fourth quarter of 2005. The full
text of the press release is included as Exhibit 99.1 to this report. The
information contained in the websites cited in the press release is not part
of
this report.
The
information in this Form 8-K and the exhibit attached hereto shall not be deemed
to be “filed” for purposes of Section 18 of the Securities Act of 1934 or
otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933 or
the
Securities Act of 1934, except as expressly set forth by specific reference
in
such a filing.
Item
9.01. Financial
Statements and Exhibits.
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Exhibits:
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Exhibit
No.
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Description |
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99.1
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Press release of Molina Healthcare, Inc. issued January 31, 2006, as to 2006 guidance and preliminary earnings for the fourth quarter of 2005. |
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| MOLINA HEALTHCARE, INC. | ||
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| Date: January 31, 2006 | By: | /s/ Mark L. Andrews |
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Mark L. Andrews |
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Chief
Legal Officer, General Counsel
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EXHIBIT
INDEX
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Exhibit
No.
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Description |
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99.1
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Press
release of Molina Healthcare, Inc. issued January 31, 2006, as to
2006
guidance and preliminary earnings for the fourth quarter of
2005.
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Exhibit
99.1
News
Release
Contact:
Juan
José
Orellana
Investor
Relations
Molina
Healthcare, Inc.
562-435-3666
ext. 111143
MOLINA
HEALTHCARE ANNOUNCES 2006 GUIDANCE
Company
Announces Preliminary Earnings for Fourth Quarter
2005
Long
Beach, California (January 31, 2006) — Molina Healthcare, Inc. (NYSE: MOH) today
announced its guidance for full year 2006. For calendar year 2006, the Company
expects:
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Earnings
per diluted share of approximately
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$1.37
- $1.47
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Net
income of approximately
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$40
million
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Premium
revenue of approximately
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$1.9
billion
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Medical
care costs as a percentage of total revenue of approximately
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86.0%
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Core
G&A (administrative expenses excluding premium taxes)
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as
a
percentage of total revenue of approximately
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7.0%
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Administrative
expenses (including premium taxes)
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as
a
percentage of total revenue of approximately
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10.1%
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Guidance
for 2006 assumes an effective tax rate of 38% and weighted average diluted
shares outstanding of 28.5 million. The guidance includes results of the
California plan’s Medi-Cal contracts for Riverside and San Bernardino counties,
which the Company expects the California plan to retain throughout 2006.
The
guidance also includes the recording of stock-based employee compensation
expense of approximately $0.08 per diluted share.
In
addition to its 2006 guidance, the Company also announced that, based upon
its
preliminary analysis, it expects to report earnings per diluted share for
the
fourth quarter of 2005 in the range of $0.35 to $0.39, resulting in full
year
2005 earnings per diluted share of $0.95 to $0.99.
Conference
Call
The
live broadcast of Molina Healthcare’s conference call to discuss its 2006
earnings guidance will begin at 5:00 p.m. Eastern Time, January 31st. The
number
to call for this interactive conference call is 212-231-6047. A 30-day
online
replay will be available beginning approximately one hour following the
conclusion of the live broadcast. A link to these events can be found on
the
Company’s website at www.molinahealthcare.com
or at www.earnings.com.
-MORE-
Molina
Healthcare, Inc. is a multi-state managed care organization that arranges
for
the delivery of healthcare services to persons eligible for Medicaid and
other
programs for low-income families and individuals. Molina Healthcare, Inc.
currently operates health plans in California, Indiana, Michigan, New Mexico,
Utah, and Washington. More information about Molina Healthcare, Inc. can
be
obtained at www.molinahealthcare.com.
“Safe
Harbor” Statement under the Private Securities Litigation Reform Act of
1995:
This press release contains “forward-looking statements” identified by words
such as “expects,” “assumes,” “believe,” “will,” and similar words and
expressions. In addition, any statements that refer to earnings guidance,
expectations, projections, or their underlying assumptions, or other
characterizations of future events or circumstances, are forward-looking
statements. All of the Company’s forward-looking statements are based on
current expectations and assumptions that are subject to numerous known and
unknown risks, uncertainties, and other factors that could cause actual results
to differ materially. Such factors include, without limitation, risks
related to: the
Company’s ability to identify medical care cost issues and to address them
successfully through its medical care cost control initiatives; the Company’s
ability to accurately estimate incurred but not reported medical costs; the
Company’s ability to accurately estimate for the fourth quarter of fiscal year
2005 its earnings per diluted share; high
dollar claims related to catastrophic illness; potential
reductions in funding for Medicaid and other government-sponsored healthcare
programs; entering into a final one-year extension of the Medi-Cal contract
of
Molina Healthcare of California for Riverside and San Bernardino Counties;
the
successful renewal and continuation of the government contracts of the Company’s
health plans; the favorable resolution or settlement of pending litigation
or
arbitration; the implementation of announced rate increases; the Company’s
ability to obtain timely regulatory approvals for acquisitions or to
successfully integrate its completed acquisitions; the ability to enter into
more favorable hospital or provider contracts; changes in healthcare practices,
technologies, or utilization patterns; changes in federal or state laws or
regulations or the interpretation thereof; risks associated with the Company’s
start-up operations in new states; retention of key employees; disasters
or
epidemics; and other risks and uncertainties as detailed in the
Company’s reports and filings with the Securities and Exchange Commission and
available on its website at www.sec.gov.
All forward-looking statements in this release represent the Company’s judgment
as of January 31, 2006. The Company disclaims any obligation to update any
forward-looking statement to conform the statement to actual results or changes
in the Company’s expectations.
-END-