AGP Reports First Quarter 2012 Results
Revenues Increased 14.8% Year‐Over‐Year to $1.8 Billion
Net Income of $33.1 Million or $0.64 per Diluted Share
VIRGINIA BEACH, Va. (May 2, 2012) – Amerigroup Corporation (NYSE: AGP) today announced that net income for the first quarter of 2012 was $33.1 million, or $0.64 per diluted share, versus $70.5 million, or $1.37 per diluted share, for the first quarter of 2011 and compared to $32.8 million, or $0.67 per diluted share, for the fourth quarter of 2011. Total revenues for the first quarter of 2012 increased 14.8% to $1.77 billion compared with $1.54 billion in the first quarter of 2011. Sequentially, total revenues increased 7.4% from the fourth quarter of 2011.
- Membership increased 149,000 members, or 7.4%, to approximately 2.2 million at the end of the first quarter of 2012 compared to the fourth quarter of 2011.
- Health benefits expense was 85.3% of premium revenue for the first quarter of 2012.
- Selling, general and administrative expenses were 8.4% of total revenues for the first quarter of 2012. The first quarter selling, general and administrative expense ratio included 70 basis points of expense associated with business development efforts.
- Cash flow from operations was $31.0 million for the three months ended March 31, 2012.
- Unregulated cash and investments were $824 million as of March 31, 2012 compared to $725 million as of December 31, 2011.
- In January 2012, the Company issued an additional $75 million in aggregate principal amount of senior notes due in 2019.
- Medical claims payable as of March 31, 2012 totaled $618 million compared to $573 million as of December 31, 2011.
- Days in claims payable in the quarter was 37, compared to 38 days in the fourth quarter of 2011.
- On February 1, 2012, the Company’s Louisiana health plan began offering services to Medicaid recipients in the state.
- On March 1, 2012, the Company expanded its presence in Texas, the Company’s largest market.
- In April 2012, the Company was notified by the Ohio Department of Jobs and Family Services that the Company’s Ohio health plan was not selected to provide managed care services beginning January 2013 pursuant to the recent re‐bid of its existing Medicaid business. The Company has submitted a protest contesting the results.
- On May 1, 2012, the Company announced that its New York health plan had received the necessary regulatory approvals and closed the previously announced acquisition of Health Plus.
“In 2012, we expect to grow revenue approximately 40%, so the effective implementation of new business is critically important. We are off to a great start in both the Texas expansion and in Louisiana,” said James G. Carlson, Amerigroup’s chairman and chief executive officer. “Our expectation that earnings will be more heavily weighted towards the back‐half of the year continues to play out according to plan. We continue to project that our net income margin will be higher in the second‐half of the year and are very pleased that first quarter performance has come in better than we expected.”