Centene Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Centene Corp. has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial activities and business operations.</b>

AI Summary

CENTENE CORP (CNC) filed a Quarterly Report (10-Q) with the SEC on April 26, 2024. Centene Corp. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31. Centene Corp. is incorporated in Delaware. The company's principal business address is 7700 Forsyth Blvd., St. Louis, MO 63105.

Why It Matters

For investors and stakeholders tracking CENTENE CORP, this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial performance data for Centene Corp. for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, operational efficiency, and future outlook in the healthcare sector.

Risk Assessment

Risk Level: medium — CENTENE CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains detailed financial information but does not usually include significant new strategic announcements or material adverse events that would drastically alter the risk profile on its own.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand Centene Corp.'s performance in Q1 2024 and identify any trends or significant changes.

Key Numbers

• 2024-03-31 — Period of Report (CONFORMED PERIOD OF REPORT)
• 2024-04-26 — Filed As Of Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (2024-01-01)
• 2024-03-31 — Quarter End Date (2024-03-31)

Key Players & Entities

• CENTENE CORP (company) — FILER
• 0001071739 (company) — CENTRAL INDEX KEY
• 6324 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 7700 FORSYTH BLVD. (company) — BUSINESS ADDRESS STREET 1
• ST LOUIS (company) — BUSINESS ADDRESS CITY
• MO (company) — BUSINESS ADDRESS STATE
• 63105 (company) — BUSINESS ADDRESS ZIP

FAQ

Industry Context

Centene Corp. operates within the healthcare sector, specifically focusing on health insurance and managed care services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports to the SEC.

What Investors Should Do

1. Analyze the revenue and expense details for Q1 2024.
2. Examine any disclosures related to segments like MagellanRx or Circle Health.
3. Review the balance sheet and cash flow statement for changes in financial position.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-04-26: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $0.001 — hange on Which Registered Common Stock $0.001 Par Value CNC New York Stock Exchange
• $81 m — ievement of contingent consideration of $81 million, or $0.15 per share ($0.11 after-
• $0.15 — ingent consideration of $81 million, or $0.15 per share ($0.11 after-tax), net gain o
• $0.11 — ion of $81 million, or $0.15 per share ($0.11 after-tax), net gain on the sale of pro
• $24 m — property, subject to closing costs, of $24 million, or $0.04 per share ($0.03 after-
• $0.04 — ct to closing costs, of $24 million, or $0.04 per share ($0.03 after-tax), Health Net
• $0.03 — ts, of $24 million, or $0.04 per share ($0.03 after-tax), Health Net Federal Services
• $14 m — ICARE Managed Care Support Contracts of $14 million, or $0.03 per share ($0.02 after-
• $0.02 — cts of $14 million, or $0.03 per share ($0.02 after-tax), gain on the previously repo
• $10 m — Circle Health Group (Circle Health) of $10 million, or $0.02 per share ($0.10 after-
• $0.10 — th) of $10 million, or $0.02 per share ($0.10 after-tax), severance costs due to a re
• $9 m — verance costs due to a restructuring of $9 million, or $0.01 per share ($0.01 after-
• $0.01 — ue to a restructuring of $9 million, or $0.01 per share ($0.01 after-tax) and gain on
• $7 m — ation of working capital adjustments of $7 million, or $0.01 per share ($0.01 after-
• $79 m — an Specialty Health divestiture gain of $79 million, or $0.14 per share ($0.12 after-

Filing Documents

• cnc-20240331.htm (10-Q) — 1430KB
• a2024033110-qexhibit101.htm (EX-10.1) — 95KB
• a2024033110-qexhibit102.htm (EX-10.2) — 92KB
• a2024033110-qexhibit311.htm (EX-31.1) — 11KB
• a2024033110-qexhibit312.htm (EX-31.2) — 10KB
• a2024033110-qexhibit321.htm (EX-32.1) — 5KB
• a2024033110-qexhibit322.htm (EX-32.2) — 5KB
• 0001071739-24-000097.txt (&nbsp;) — 7559KB
• cnc-20240331.xsd (EX-101.SCH) — 33KB
• cnc-20240331_cal.xml (EX-101.CAL) — 94KB
• cnc-20240331_def.xml (EX-101.DEF) — 191KB
• cnc-20240331_lab.xml (EX-101.LAB) — 528KB
• cnc-20240331_pre.xml (EX-101.PRE) — 365KB
• cnc-20240331_htm.xml (XML) — 1364KB

Financial Statements

Item 1. Financial Statements 1 Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 1 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (unaudited) 2 Consolidated Statements of Comprehensive Earnings (Loss) for the Three Months Ended March 31, 2024 and 2023 (unaudited) 3 Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited) 5 Notes to the Consolidated Financial Statements (unaudited) 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 29 Part II Other Information

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 31

Signatures

Signatures 32 Table o f Contents CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS All statements, other than statements of current or historical fact, contained in this filing are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue," and other similar words or expressions (and the negative thereof). Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our future operating or financial performance, market opportunity, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments, and the adequacy of our available cash resources. These statements may be found in the various sections of this filing, such as Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations," Part II, Item 1. "Legal Proceedings," and Part II, Item 1A. "Risk Factors." These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments, and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend o

Financial Statements

Item 1. Financial Statements. CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except shares in thousands and per share data in dollars) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 17,585 $ 17,193 Premium and trade receivables 16,824 15,532 Short-term investments 2,082 2,459 Other current assets 1,957 5,572 Total current assets 38,448 40,756 Long-term investments 16,496 16,286 Restricted deposits 1,383 1,386 Property, software and equipment, net 1,988 2,019 Goodwill 17,558 17,558 Intangible assets, net 5,928 6,101 Other long-term assets 823 535 Total assets $ 82,624 $ 84,641 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY Current liabilities: Medical claims liability $ 18,109 $ 18,000 Accounts payable and accrued expenses 12,130 16,420 Return of premium payable 1,751 1,462 Unearned revenue 681 715 Current portion of long-term debt 113 119 Total current liabilities 32,784 36,716 Long-term debt 17,887 17,710 Deferred tax liability 734 641 Other long-term liabilities 4,155 3,618 Total liabilities 55,560 58,685 Commitments and contingencies Redeemable noncontrolling interests 16 19 Stockholders' equity: Preferred stock, $ 0.001 par value; authorized 10,000 shares; no shares issued or outstanding at March 31, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; authorized 800,000 shares; 619,173 issued and 536,383 outstanding at March 31, 2024, and 615,291 issued and 534,484 outstanding at December 31, 2023 1 1 Additional paid-in capital 20,388 20,304 Accumulated other comprehensive (loss) ( 630 ) ( 652 ) Retained earnings 13,206 12,043 Treasury stock, at cost ( 82,790 and 80,807 shares, respectively) ( 6,007 ) ( 5,856 ) Total Centene stockholders' equity 26,958 25,840 Nonredeemable noncontrolling interest 90 97 Total stockholders' equity 27,048 25,937 Total liabilities, redeemable noncontrolling interest

View Full Filing

View this 10-Q filing on SEC EDGAR