Centene Corp Q3 2024 10-Q Filing

TL;DR

**Centene Q3 10-Q is in. Financials and operations detailed for the period ending Sept 30, 2024.**

AI Summary

Centene Corporation filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter and the first nine months of the year. Specific financial figures and segment performance are outlined within the report.

Why It Matters

This filing provides investors with the latest financial health and operational performance of Centene Corporation, a major healthcare company, impacting its stock valuation and future outlook.

Risk Assessment

Risk Level: medium — As a large healthcare provider, Centene faces ongoing regulatory, market, and operational risks inherent in the healthcare industry.

Key Players & Entities

• Centene Corporation (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-10-25 (date) — Filing date of the 10-Q

FAQ

Key Financial Figures

• $0.001 — hange on Which Registered Common Stock $0.001 Par Value CNC New York Stock Exchange
• $83 m — ation of working capital adjustments of $83 million, or $0.15 per share ($0.11 after-
• $0.15 — capital adjustments of $83 million, or $0.15 per share ($0.11 after-tax), net gain o
• $0.11 — nts of $83 million, or $0.15 per share ($0.11 after-tax), net gain on the sale of pro
• $21 m — x), net gain on the sale of property of $21 million, or $0.04 per share ($0.03 after-
• $0.04 — the sale of property of $21 million, or $0.04 per share ($0.03 after-tax), gain on th
• $0.03 — rty of $21 million, or $0.04 per share ($0.03 after-tax), gain on the previously repo
• $20 m — Circle Health Group (Circle Health) of $20 million, or $0.04 per share ($0.12 after-
• $0.12 — th) of $20 million, or $0.04 per share ($0.12 after-tax), Health Net Federal Services
• $14 m — RICARE Managed Care Support Contract of $14 million, or $0.03 per share ($0.02 after-
• $0.02 — act of $14 million, or $0.03 per share ($0.02 after-tax), severance costs due to a re
• $13 m — verance costs due to a restructuring of $13 million, or $0.02 per share ($0.01 after-
• $0.01 — ing of $13 million, or $0.02 per share ($0.01 after-tax), an additional loss on the d
• $7 m — nish and Central European businesses of $7 million, or $0.01 per share ($0.01 after-
• $251 m — r 30, 2023: Circle Health impairment of $251 million, or $0.46 per share ($0.50 after-

Filing Documents

• cnc-20240930.htm (10-Q) — 1851KB
• a2024093010-qexhibit101.htm (EX-10.1) — 127KB
• a2024093010-qexhibit311.htm (EX-31.1) — 11KB
• a2024093010-qexhibit312.htm (EX-31.2) — 10KB
• a2024093010-qexhibit321.htm (EX-32.1) — 5KB
• a2024093010-qexhibit322.htm (EX-32.2) — 5KB
• 0001071739-24-000200.txt ( ) — 8768KB
• cnc-20240930.xsd (EX-101.SCH) — 34KB
• cnc-20240930_cal.xml (EX-101.CAL) — 96KB
• cnc-20240930_def.xml (EX-101.DEF) — 202KB
• cnc-20240930_lab.xml (EX-101.LAB) — 566KB
• cnc-20240930_pre.xml (EX-101.PRE) — 387KB
• cnc-20240930_htm.xml (XML) — 1693KB

Financial Statements

Item 1. Financial Statements 1 Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 1 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 2 Consolidated Statements of Comprehensive Earnings (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 3 Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (unaudited) 6 Notes to the Consolidated Financial Statements (unaudited) 7

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 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 37 Part II Other Information

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 39

Signatures

Signatures 40 Table of 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 on

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) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 14,577 $ 17,193 Premium and trade receivables 18,281 15,532 Short-term investments 2,992 2,459 Other current assets 1,559 5,572 Total current assets 37,409 40,756 Long-term investments 17,691 16,286 Restricted deposits 1,452 1,386 Property, software and equipment, net 2,042 2,019 Goodwill 17,558 17,558 Intangible assets, net 5,582 6,101 Other long-term assets 617 535 Total assets $ 82,351 $ 84,641 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY Current liabilities: Medical claims liability $ 17,995 $ 18,000 Accounts payable and accrued expenses 13,338 16,420 Return of premium payable 1,959 1,462 Unearned revenue 658 715 Current portion of long-term debt 111 119 Total current liabilities 34,061 36,716 Long-term debt 17,494 17,710 Deferred tax liability 769 641 Other long-term liabilities 2,618 3,618 Total liabilities 54,942 58,685 Commitments and contingencies Redeemable noncontrolling interests 13 19 Stockholders' equity: Preferred stock, $ 0.001 par value; authorized 10,000 shares; no shares issued or outstanding at September 30, 2024 and December 31, 2023 — — Common stock, $ 0.001 par value; authorized 800,000 shares; 619,945 issued and 510,078 outstanding at September 30, 2024, and 615,291 issued and 534,484 outstanding at December 31, 2023 1 1 Additional paid-in capital 20,522 20,304 Accumulated other comprehensive (loss) ( 226 ) ( 652 ) Retained earnings 15,065 12,043 Treasury stock, at cost ( 109,867 and 80,807 shares, respectively) ( 8,055 ) ( 5,856 ) Total Centene stockholders' equity 27,307 25,840 Nonredeemable noncontrolling interest 89 97 Total stockholders' equity 27,396 25,937 Total liabilities, redeemable noncontrol

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View this 10-Q filing on SEC EDGAR