Exhibit 99.2
WCG Reports First Quarter 2010 Results
Page 6
May 5, 2010
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; dollars in thousands)
Three Months Ended March 31, | ||||||||
2010 | 2009 | |||||||
Cash from (used in) operating activities: | ||||||||
Net income (loss) | $ | 6,418 | $ | (36,933 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 5,756 | 5,739 | ||||||
Equity-based compensation expense | 1,142 | 9,612 | ||||||
Deferred taxes, net | 11,532 | (318 | ) | |||||
Changes in operating accounts: | ||||||||
Premium and other receivables, net | 23,781 | (69,876 | ) | |||||
Other receivables from government partners, net | – | (50,689 | ) | |||||
Prepaid expenses and other current assets, net | (2,985 | ) | 4,907 | |||||
Medical benefits payable | (95,690 | ) | 113,622 | |||||
Unearned premiums | (90,353 | ) | (62,554 | ) | ||||
Accounts payable and other accrued expenses | (18,466 | ) | (87,028 | ) | ||||
Other payables to government partners | 4,547 | 22,912 | ||||||
Amounts accrued related to investigation resolution | 511 | 44,800 | ||||||
Taxes, net | (14,401 | ) | 2,288 | |||||
Other, net | (2,336 | ) | (2,236 | ) | ||||
Net cash used in operating activities | (170,544 | ) | (105,754 | ) | ||||
Cash from (used in) investing activities: | ||||||||
Purchases of investments | (117 | ) | (18,756 | ) | ||||
Proceeds from sales and maturities of investments | 12,322 | 19,051 | ||||||
Purchases of restricted investments | (289 | ) | (17,088 | ) | ||||
Proceeds from maturities of restricted investments | 368 | 39,390 | ||||||
Additions to property, equipment and capitalized software, net | (4,235 | ) | (5,141 | ) | ||||
Net cash provided by investing activities | 8,049 | 17,456 | ||||||
Cash from (used in) financing activities: | ||||||||
Proceeds from option exercises and other | 770 | – | ||||||
Purchase of treasury stock | (3,030 | ) | (1,432 | ) | ||||
Payments on debt | – | (400 | ) | |||||
Payments on capital leases | (58 | ) | – | |||||
Funds received for the benefit of members | 34,019 | 42,788 | ||||||
Net cash provided by financing activities | 31,701 | 40,956 | ||||||
Cash and cash equivalents: | ||||||||
Decrease during the period | (130,794 | ) | (47,342 | ) | ||||
Balance at beginning of year | 1,158,131 | 1,181,922 | ||||||
Balance at end of year | $ | 1,027,337 | $ | 1,134,580 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid for taxes | $ | 8,161 | $ | 903 | ||||
Cash paid for interest | $ | 7 | $ | 1,790 | ||||
Property, equipment and capitalized software acquired through capital leases | $ | 8,411 | $ | – |
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