On this page of StockholderLetter.com we present the latest annual shareholder letter from MOLINA HEALTHCARE, INC. — ticker symbol MOH. Reading current and past MOH letters to shareholders can bring important insights into the investment thesis.
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3/17/2025 Letter Continued (Full PDF)
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3/21/2024 MOH Stockholder Letter
• More "Diagnostics" Category Stockholder Letters
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MOH Benford's Law Stock Score = 94
3/17/2025 Letter Continued (Full PDF)
•
3/21/2024 MOH Stockholder Letter•
More "Diagnostics" Category Stockholder Letters•
MOH Benford's Law Stock Score = 94MOH Shareholder/Stockholder Letter Transcript:
Company Profile Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. Molina Healthcare served approximately 5.5 million members as of December 31, 2024. For more information about Molina Healthcare, please visit molinahealthcare.com. Line of Business Profile Membership by Line of Business Premium by Line of Business 79% 88% Medicaid Medicaid 5% 7% Marketplace Marketplace 7% Medicare 14% Medicare Historical Highlights Premium Revenue Diluted GAAP Net Income per Share ($ Millions) '20 '21 '22 '23 '24 18,299 26,855 30,883 32,529 38,627 Diluted Adjusted Net Income per Share '20 $11.23 '20 '21 $11.25 '21 '22 '23 '24 '22 $13.55 $18.77 $20.42 '23 '24 $10.67 $13.54 $17.92 $20.88 $22.65 See the reconciliation of GAAP to Adjusted Net Income per Share on Page A3 Annual Meeting The annual meeting of stockholders will be held on Wednesday, April 30, 2025, at 10:00 a.m. Eastern Time live via the internet at www.virtualshareholdermeeting.com/MOH2025. To Our Stockholders: We are pleased to report that we continued to deliver strong results for all our stakeholders this year, producing pre-tax income margins within our long-term target range while effectively growing premium revenue. Our management team and our nearly 18,500 associates worked tirelessly in our mission to improve the health and lives of the 5.5 million members we serve by delivering high quality, affordable healthcare. Their commitment is unwavering and drives successes across the enterprise, from serving our existing members, to growing business in existing states, winning new business in new states, and integrating our recently acquired health plans. We continue to execute our strategy for sustaining profitable growth. We generated 19 percent premium revenue growth that was well balanced between organic growth and bolt-on acquisitions. Our earnings per share fell short of our 2024 guidance primarily due to higher than expected medical costs in our Medicaid and Medicare segments. Our pre-tax margin, however, was squarely within our longterm target range. During the year, we closed the acquisition of the Bright Health California Medicare business, and launched new Medicaid health plans in Nebraska, New Mexico, and Texas. We also We continue to execute our strategy for sustaining profitable growth. agreed to acquire the ConnectiCare business from Emblem Health, which we closed in early 2025. 2024 was also a highly successful year on the Medicaid and Medicare Duals procurement front. In Medicaid, we successfully reprocured contracts in Florida, Michigan, and Wisconsin, and were awarded a new contract in Georgia a new state in our portfolio. In our Medicare Duals integrated product business a strategic focus for us we successfully procured new contracts in Idaho, Massachusetts, Michigan, and Ohio. Collectively, these acquisitions and organic revenue growth achievements represent approximately $10 billion of annual premium revenue when all these contracts are in force. I am extremely pleased with the momentum we created through our operational and financial successes during 2024. We continue to see sustainable, profitable growth opportunities to expand our pure-play government managed care franchise into 2025 and beyond. Thank you for your ongoing support and interest in our Company. We are most grateful for the confidence you express in our team and the Company s mission, as demonstrated by your continued ownership. Sincerely, Joseph M. Zubretsky President and Chief Executive Officer Reconciliation of GAAP to Adjusted Net Income per Diluted Share 2024 Net Income Adjustments: Amortization of intangible assets Acquisition-related expenses (1) Impairment (2) Loss (gain) of debt repayment Marketplace risk corridor judgment Other (3) Subtotal, adjustments Income tax effect Adjustments, net of tax effect Adjusted net income 2023 2022 2021 2020 $ 20.42 $ 18.77 $ 13.55 $ 11.25 $ 11.23 1.43 1.14 0.28 2.85 (0.62) 2.23 $ 22.65 $ 1.47 0.12 1.17 2.76 (0.65) 2.11 20.88 $ 1.32 0.83 3.56 5.71 (1.34) 4.37 17.92 $ 0.83 1.59 0.43 0.16 3.01 (0.72) 2.29 13.54 $ 0.26 0.37 0.26 (2.14) 0.51 (0.74) 0.18 (0.56) 10.67 (1) Reflects non-recurring costs associated with acquisitions, including various transaction and certain integration costs. (2) Impairment attributable to the Company's plan to reduce its leased real estate footprint. (3) 2024 includes non-recurring litigation. 2023 includes a non-recurring credit loss on 2022 Marketplace risk adjustment receivables due to the insolvency of an issuer in the Texas risk pool, non-recurring litigation costs and one-time termination benefits. 2022 includes certain non-recurring costs associated with gain on lease termination and disposal of fixed assets. 2021 includes change in premium deficiency reserve, loss on sale of property, and restructuring costs. 2020 includes charitable contribution, premium deficiency reserves, and restructuring costs.