COBALT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended Year ended
December 31, December 31,
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Pro Forma(1)
2002 2001 2002 2001
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(In thousands, except share data)
Health services revenues and premium equivalents(2): $ 576,098 $ 545,114 $ 2,231,337 $ 2,195,908
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Revenues:
Health services revenues:
Premium $ 351,928 $ 368,760 $ 1,373,760 $ 1,472,238
Government contract fees 26,564 28,365 111,719 117,192
Other 12,174 10,582 48,167 45,290
Investment income 3,789 2,997 14,845 12,810
Net realized investment gains (losses) (1,348) 465 (1,141) 1,091
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Total revenues 393,107 411,169 1,547,350 1,648,621
Expenses:
Medical and other benefits 289,700 325,305 1,166,671 1,311,185
Selling, general, administrative and other 84,778 84,093 323,239 331,615
Interest 316 120 675 744
Amortization of goodwill - 1,905 - 6,470
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Total expenses 374,794 411,423 1,490,585 1,650,014
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Operating income (loss) from continuing operations 18,313 (254) 56,765 (1,393)
Income (loss) from investment in affiliates, net of tax(3) 236 (23,112) 15,556 (23,158)
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Pre-tax income (loss) from continuing operations 18,549 (23,366) 72,321 (24,551)
Income tax expense (benefit) 3,426 (2,064) 7,304 (1,574)
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Income (loss) from continuing operations 15,123 (21,302) 65,017 (22,977)
Income from discontinued operations, net of tax - 452 8,938 1,122
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Net income (loss) $ 15,123 $ (20,850) $ 73,955 $ (21,855)
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Earnings (loss) per share:
Diluted EPS from continuing operations excluding AMZ $ 0.35 $ 0.05 $ 1.21 $ 0.01
Diluted EPS from investment in AMZ 0.00 (0.57) 0.33 (0.57)
Diluted EPS discontinued operations 0.00 0.01 0.21 0.02
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Total diluted EPS $ 0.35 $ (0.51) $ 1.75 $ (0.54)
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Diluted weighted average common shares 42,634,726 40,548,560 42,229,727 40,453,690
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(1) Includes the operations of UWS and BCBSUW with elimination of intracompany transactions, the recording of purchase
accounting adjustments and the amortization of goodwill calculated as if the Combination was completed at the beginning
of the reporting period.
(2) Includes consolidated premium, Government contract fees and other revenue, along with the processed claim dollars from
self-funded business.
(3) The year ended December 31, 2002 includes a $10.0 million after tax gain on the sale of 4.4 million shares of AMZ. The
three months ended December 31, 2001 and the year ended December 31, 2001, include a $25.2 million write-down to market
value of $12.45 per share on the Investment in AMZ.