-- Successful acquisition also includes CAC Florida Medical Centers and
PrescribIT Rx Pharmacy Company
-- Guidance for 2005 Earnings and Cash Flows Raised
LOUISVILLE, Ky., Feb. 16 /PRNewswire-FirstCall/ -- Humana Inc. (NYSE: HUM)
today announced it has completed its acquisition of CarePlus Health Plans of
Florida as well as its 10 CAC-Florida Medical Centers, and PrescribIT Rx
pharmacy company in Miami-Dade County.
CarePlus provides Medicare Advantage HMO plans and benefits to
approximately 50,000 Medicare eligibles in Miami-Dade, Broward and Palm Beach
counties.
As previously disclosed, Humana anticipates the acquisition to be
immediately accretive to earnings, adding earnings at an annual rate of
approximately $0.15 to $0.18 per diluted share during the first 12 months,
including the impact of integration costs incurred.
Given the February 16, 2005 closing date for the transaction, Humana is
raising its guidance for 2005 diluted earnings per common share (EPS) by $0.15
to $2.20. Prior company 2005 EPS guidance was $2.05 and excluded any impact
from the CarePlus transaction.
The company is also raising its guidance for first quarter 2005 EPS to a
range of $ 0.61 to $0.63; 2005 consolidated revenues to approximately
$14.5 billion; 2005 cash flows from operations to a range of $625 million to
$675 million; and now forecasts its Medicare membership to be in the range of
470,000 to 485,000 by the end of 2005, inclusive of the CarePlus members.
"This is a great day for CarePlus and Humana members as we join two well-
known and respected companies to offer a broad choice of Medicare health
benefits to the growing South Florida Medicare market," said Michael A.
Seltzer, CEO of Humana's Florida senior products. "CarePlus members will be
pleased with Humana's commitment to their service. Their 2005 benefits will
stay intact as will their relationships with their current physicians and
access to the medical facilities in the CarePlus network."
Seltzer also reiterated that patients who utilize the 10 CAC-Florida
Medical Centers and the PrescribIT Rx pharmacies will continue to receive
exceptional service.
"As we move through 2005, we will be adopting the best practices of both
entities while continuing to provide the same level of access to health care
that members enjoy today," Seltzer added.
Cautionary Statement
This news release contains forward-looking statements. 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, as filed by Humana with the Securities
and Exchange Commission:
-- Form 10-K for the year ended December 31, 2003;
-- Form 10-Qs for the quarters ended March 31, 2004, June 30, 2004 and
September 30, 2004.
About Humana
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's
largest publicly traded health benefits companies, with approximately
7 million medical members located primarily in 15 states and Puerto Rico.
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 44-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 press releases;
-- Audio archive 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
institutional investors);
-- Corporate Governance Information.
( Summary of Earnings Guidance Points
Note: The company's earnings guidance points described throughout this
press release (including the table below) exclude any potential impact from
new stock option accounting rules required for implementation by all companies
in the latter half of 2005.
2005 Guidance Points
2005 EPS Approximately $2.20
1Q05 EPS $0.61 to $0.63
Consolidated revenues Approximately $14.5 billion
Commercial segment pretax income Increase of 10% to 15%
Commercial medical membership Slightly higher excluding loss of
89K member account on January 1, 2005
Increase in Commercial segment 6.5% to 8.5% overall;
fully insured medical premiums 8.5% to 10.5% group only
K-er-member basis
Increase in Commercial segment 6.5% to 8.5% overall;
fully insured medical costs on 8.5% to 10.5% group only
a per-member basis
TRICARE pretax margin Approximately 3%
Medicare medical membership 470,000 to 485,000 by year end
TRICARE medical membership No material change from 2004 ending
membership
Increase in Medicare medical 9% to 11% (excluding CarePlus)
premiums on a per-member basis
Increase in Medicare medical 9% to 11% (excluding CarePlus)
costs on a per-member basis
TRICARE revenues Approximately $2.5 billion
Consolidated SG&A expense ratio 13.5% to 14.5%
Cash flows from operations $625 million to $675 million
Capital expenditures Approximately $115 million
Effective tax rate FY 2005 approximately(30 percent;
1Q05 approximately 12 percent
Shares used in computation of EPS FY 2005 approximately 166 million;
1Q05 approximately 165 million
SOURCE Humana Inc.
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Related links:
http://www.humana.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20030425/HUMANALOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Regina Nethery, Investor Relations,
+1-502-580-3644, or rnethery@humana.com ; or Dick Brown,
Corporate Communications, +1-502-580-3683, or dbrown4@humana.com
, both of Humana Inc.
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