Exhibit 99.1
WellCare Announces Third Quarter Results
TAMPA, Fla.--(BUSINESS WIRE)--Nov. 1, 2005--WellCare Health Plans,
Inc. (NYSE: WCG):
-- Third quarter revenues grew to $495.5 million, representing
32% growth year-over-year
-- Membership increased to 862,000, representing 17% growth
year-over-year
-- Medicare membership grew 10% in the third quarter and 41% for
the first nine months
-- Net income from core operations grew 17.4% over prior year net
income to $19.7 million
-- Adjusted cash flows from operations were 2.9x net income for
the quarter
-- Days claims payable were stable at 53 days
-- Announced launch of national prescription drug plan (PDP)
program
-- Increasing Q4 and full year 2005 guidance and establishing
2006 EPS guidance of $2.50
WellCare Health Plans, Inc. (NYSE: WCG) today announced that net
income from core operations for the third quarter of 2005 increased
17.4% to $19.7 million, or $0.50 per diluted share, based on 39.7
million weighted average shares outstanding, compared with net income
of $16.8 million, or $0.45 per diluted share, in the prior year
period. The Company also reported GAAP net income of $16.3 million for
the third quarter of 2005, or $0.41 per diluted share, after incurring
pre-tax administrative expenses of $5.6 million, or $0.09 per diluted
share after tax, related to the launches of the Company's Georgia and
prescription drug plan (PDP) new business initiatives. Total revenues
for the third quarter of 2005 increased 32% to $495.5 million compared
with $374.6 million for the third quarter of 2004. See "Supplemental
Information" below and the accompanying reconciliation of the
Company's net income from core operations and net income from core
operations per diluted share, which excludes expenses related to the
Company's Georgia and PDP initiatives, to its GAAP net income and GAAP
net income per diluted share.
"We are very pleased with our third quarter performance, and we
are proud to deliver superior results in the key growth, earnings and
cash flow measures for our business," said Todd S. Farha, President
and Chief Executive Officer of WellCare. "Our Medicaid business is
vibrant with membership growth and medical cost trends in line with
our expectations. Our Medicare business continues to expand with 41%
growth in the first nine months of the year. While we are preparing
for significant new business resulting from our Georgia and PDP
initiatives, we are committed to sound execution across all of our
operations."
Results of Operations for the Third Quarter
Total Revenues: Total revenues for the third quarter of 2005
increased $120.8 million, or 32%, to $495.5 million compared with
$374.6 million for the same period last year. Third quarter 2005
revenue increases were principally attributable to the Company's
organic membership growth, mix of members between product lines and
the demographic mix of membership.
Medical Benefits Expense: Medical benefits expense for the third
quarter of 2005 was $396.1 million, representing 80.7% of premium
revenues, compared with $296.7 million, representing 79.4% of premium
revenues for the same period last year.
Selling, General and Administrative Expense: Selling, general and
administrative (SG&A) expense was $66.7 million for the third quarter
of 2005, representing 13.5% of total revenues, compared with $46.2
million, or 12.3% of total revenues, for the same period last year.
The Company continues its investment in Medicare expansion and
information technology as well as general spending necessary to
support its growth strategy, including its investment in the launches
of its Georgia and PDP new business initiatives. Excluding
approximately $5.6 million in expenses related to the Georgia and PDP
new business initiatives, SG&A expense related to core operations was
$61.1 million for the third quarter of 2005, representing 12.3% of
total revenues.
Net Income: Net income from core operations for the third quarter
of 2005 was $19.7 million, or $0.50 per diluted share, based on 39.7
million weighted average shares outstanding, compared with net income
of $16.8 million, or $0.45 per diluted share, based on 37.6 million
weighted average shares outstanding for the same period last year.
GAAP net income for the third quarter of 2005 was $16.3 million, or
$0.41 per diluted share, after incurring pre-tax administrative
expenses of $5.6 million, or $0.09 per diluted share after tax,
related to the Company's Georgia and PDP new business initiatives.
Results of Operations for the Nine Months
Total Revenues: Total revenues for the first nine months of 2005
increased $370.1 million, or 37%, to $1.4 billion, compared with
$997.9 million for the same period last year. For the first nine
months of 2005, revenue increases were principally attributable to the
Company's organic membership growth, mix of members between product
lines, the demographic mix of membership and the Harmony acquisition.
Medical Benefits Expense: Medical benefits expense for the nine
months ended September 30, 2005 was $1.1 billion, representing 81.6%
of premium revenues, compared with $812.0 million, representing 81.6%
of premium revenues for the same period last year.
Selling, General and Administrative Expense: SG&A expense was
$177.0 million for the first nine months of 2005, representing 12.9%
of total revenues, compared with $122.1 million, or 12.2% of total
revenues, for the same period last year. Excluding approximately $6.7
million of administrative expenses related to the PDP and Georgia
initiatives, SG&A expense related to core operations was $170.3
million for the first nine months of 2005, representing 12.4% of total
revenues.
Net Income: Net income from core operations for the nine months
ended September 30, 2005, was $45.2 million, or $1.15 per diluted
share, based on 39.1 million weighted average shares outstanding,
compared with net income of $31.6 million, or $1.07 per diluted share,
based on 29.4 million weighted average shares outstanding for the same
period last year. GAAP net income for the nine months ended September
30, 2005, was $41.1 million, or $1.05 per diluted share, after
incurring pre-tax administrative expenses of $6.7 million, or $0.10
per diluted share after tax, related to the Company's Georgia and PDP
new business initiatives.
Balance Sheet and Cash Flow Highlights
As of September 30, 2005, the Company had cash and cash
equivalents of $436.1 million as well as investments classified as
current assets of $178.4 million. For the nine month period ended
September 30, 2005, the Company's net cash provided by operations was
$172.2 million on a GAAP basis, which does not include adjustments for
the timing of receipt of premiums from our government partners. On an
adjusted basis, excluding the cash provided by the change in unearned
premiums of $74.8 million and the cash used in the change in premiums
receivable of $4.0 million, net cash provided by operations was $101.4
million, or 2.5x net income, for the nine month period ended September
30, 2005.
Days in claims payable was 53 at the end of the third quarter of
2005 compared with 53 at the end of the second quarter of 2005 and 55
at the end of the third quarter of 2004.
Membership and Other Operating Statistics:
Sept. 30, Sept. 30,
2005 2004
-------- --------
Florida 546,000 527,000
Illinois 97,000 63,000
Indiana 94,000 45,000
New York 89,000 66,000
Connecticut 35,000 33,000
Louisiana 1,000 --
-------- --------
Total 862,000 734,000
======== ========
Sept. 30, Sept. 30,
2005 2004
-------- --------
TANF 633,000 524,000
S-CHIP 80,000 95,000
SSI 61,000 57,000
FHP 23,000 14,000
Medicare 65,000 44,000
-------- --------
Total 862,000 734,000
======== ========
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2005 2004 2005 2004
-------- -------- -------- --------
Medical Benefits Ratio 80.7% 79.4% 81.6% 81.6%
SG&A Expense Ratio 13.5% 12.3% 12.9% 12.2%
Adjusted SG&A Expense Ratio
(excluding GA and PDP expenses) 12.3% 12.3% 12.4% 12.2%
Sept. 30, June 30,
2005 2005
-------- --------
Days in Claims Payable 53 53
Growth Initiatives
Medicare Prescription Drug Plan Benefits. On September 23, 2005,
the Company received formal approval from the Centers for Medicare &
Medicaid Services (CMS) to provide stand-alone prescription drug plans
under Medicare Part D in all 34 PDP regions beginning in January 2006.
In addition, the Company received notification from CMS that it will
be eligible to receive auto-assignment of Medicare dual-eligibles into
its stand-alone PDPs in 33 of those 34 PDP regions, with Arizona being
the sole exception.
The Company incurred pre-tax administrative expenses of $4.6
million, or $0.07 per diluted share after tax, related to
infrastructure, technology and systems to manage its new PDP products.
These expenses negatively impacted the Company's net income in the
second and third quarters of 2005, and the Company expects to incur
approximately $22 to $30 million in pre-tax PDP-related administrative
expenses in the fourth quarter of 2005.
Georgia Expansion. In July 2005, the Company was awarded Medicaid
managed care contracts by the Georgia Department of Community Health
(DCH), pursuant to which DCH will transition approximately 1.1 million
Medicaid and S-CHIP beneficiaries to Medicaid managed care plans
beginning on April 1, 2006. In March 2005, the Company was also
awarded a contract by CMS to offer Medicare services to beneficiaries
in Fulton and DeKalb counties in Georgia, which represent 140,000
eligible enrollees. The Company incurred pre-tax administrative
expenses of $1.1 million, or $0.02 per diluted share after tax,
related to the Georgia expansion in the third quarter of 2005 and
expects to incur approximately $3 to $5 million in pre-tax
Georgia-related administrative expenses during the fourth quarter of
2005.
Guidance
The Company is raising its 2005 guidance due to the continued
strong performance of its business.
For the fourth quarter of 2005, the Company expects:
-- revenues of $495 million;
-- net income from core operations of $20 to $21 million; and
-- net income from core operations per diluted share of $0.50 to
$0.53, based on 39.8 million weighted average shares
outstanding.
For calendar year 2005, the Company now expects:
-- revenues of $1.86 billion;
-- net income from core operations of $65 to $66 million; and
-- net income from core operations per diluted share of $1.65 to
$1.67, assuming 39.5 million weighted average shares
outstanding.
See "Supplemental Information" below and the accompanying
reconciliation of the Company's non-GAAP guidance to GAAP guidance.
For the fourth quarter of 2005, the Company expects GAAP results
ranging from a net loss of $1.3 million to net income of $5.8 million,
or a loss of $0.03 per diluted share to earnings of $0.15 per diluted
share. For the full year of 2005, the Company expects GAAP net income
to range from $39.7 million to $46.7 million, or $1.00 per diluted
share to $1.18 per diluted share.
The Company is also formally establishing full-year 2006 guidance,
which replaces all previously issued 2006 guidance and includes the
Company's Georgia and PDP new business initiatives. This guidance does
not include the impact of FAS 123(R) on the Company's 2006 net income
and earnings per share.
For calendar year 2006, the Company expects:
-- revenues of $3 billion;
-- net income of $100 million; and
-- net income per diluted share of $2.50, based on 40.0 million
weighted average shares outstanding.
"While 2005 has been a year of significant progress for our
Company, we look forward to new opportunities in 2006," said Mr.
Farha. "The strong performance in our core operations, along with the
PDP and Georgia initiatives, leads us to expect 50% growth in our
overall business."
Conference Call
The live broadcast of WellCare's third quarter conference call
will begin at 9:30 a.m. Eastern time on November 2, 2005. A 30-day
online replay will be available beginning approximately one hour
following the conclusion of the live broadcast. A link to the live
broadcast and online replay can be found on the Company's website at
www.wellcare.com, under the Investor Relations section, or at
www.earnings.com.
Supplemental Information
In addition to reporting financial results in accordance with
GAAP, the Company provides information regarding net income from core
operations, net income from core operations per diluted share and SG&A
expense related to core operations as additional information about its
operating results. The Company defines net income from core operations
as GAAP net income less expenses related to the Company's Georgia and
PDP expansion opportunities. The Company defines SG&A expense related
to core operations as GAAP SG&A expense less expenses related to the
Company's Georgia and PDP initiatives. These measures are not prepared
in accordance with, or as an alternative to, GAAP.
The Company's management believes that these non-GAAP financial
measures provide useful information to management, analysts and
investors to facilitate internal and external comparisons to the
Company's historical operating results and financial condition.
Management uses these measures in evaluating business trends, in
making operating decisions and for budget planning purposes. These
measures should be considered in addition to, not as a substitute for,
or superior to, net income and SG&A expense or other measures of
financial performance prepared in accordance with GAAP.
The Company also reports cash provided by operations on a non-GAAP
basis to exclude cash provided by the change in unearned premiums and
cash used in the change in premiums and other receivables. The Company
believes that excluding changes in unearned premiums and premiums and
other receivables is a better measure of cash flow from operations, as
these changes are strictly a function of the timing of cash receipts
from federal and state agencies at the end of a period.
The non-GAAP financial measures have been reconciled to the most
directly comparable GAAP measure in the accompanying tables and
elsewhere in this press release.
About WellCare Health Plans, Inc.
WellCare Health Plans, Inc. provides managed care services
targeted exclusively to government-sponsored healthcare programs,
focusing on Medicaid and Medicare. Headquartered in Tampa, Florida,
WellCare serves approximately 862,000 members in Florida, New York,
Connecticut, Illinois, Indiana, Louisiana and Georgia. WellCare will
provide stand-alone prescription drug plans on a national basis under
the Medicare prescription drug program commencing January 1, 2006. For
more information about WellCare, please visit the Company's website at
www.wellcare.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are predictive in
nature, that depend upon or refer to future events or conditions, or
that include words such as "may," "will," "should," "expects,"
"anticipates," "intends," "plans," "believes," "estimates,"
"predicts," "potential," "continues" and similar expressions are
forward-looking statements. Forward-looking statements involve known
and unknown risks and uncertainties that may cause the Company's
actual future results to differ materially from those projected or
contemplated in the forward-looking statements. These risks and
uncertainties include, but are not limited to: the potential
expiration, cancellation or suspension of the Company's state or
federal contracts; the Company's lack of prior operating history,
including lack of experience with network providers and health
benefits management, in expansion markets, including Georgia; the
Company's lack of prior operating history in the PDP business and
potential inability to accurately predict the number of new members in
the Company's PDP programs, including those who enroll through
affirmative choice as well as through auto-assignment; the Company's
ability to accurately predict and effectively manage health benefits
and other operating expenses; the potential for confusion in the
marketplace concerning PDP programs resulting from, among other
things, the proliferation of health care options facing Medicare
beneficiaries and the complexity of the PDP offerings, including the
benefit structures; the potential that the Company will receive
inquiries regarding the Company's PDP programs in excess of its
ability to service such inquiries; the Company's ability to accurately
estimate incurred but not reported medical costs; risks associated
with future changes in healthcare laws, including repeal or
modification of the Medicare Modernization Act of 2003 or any portion
thereof; potential reductions in funding for government healthcare
programs, including reductions in funding resulting from the
escalating costs of prescription drugs; risks associated with periodic
government reimbursement rate adjustments, the timing of the CMS
risk-corridor payments to PDP providers and the accounting treatment
for the PDP program; the Company's ability to develop processes and
systems to support its operations and future growth; regulatory
changes and developments, including potential marketing restrictions
or sanctions and premium recoupment; potential fines, penalties or
operating restrictions resulting from regulatory audits, examinations,
investigations or other inquiries; risks associated with the Company's
acquisition strategy; risks associated with the Company's efforts to
expand into additional states and counties; risks associated with the
Company's substantial debt obligations; and risks associated with the
Company's rapid growth, including the Company's ability to attract and
retain qualified management personnel. Additional information
concerning these and other important risks and uncertainties can be
found under the headings "Forward-Looking Statements" and "Risk
Factors" in the Company's Registration Statement on Form S-1, filed
with the Securities and Exchange Commission in June 2005, which
contain discussions of the Company's business and the various factors
that may affect it. The Company specifically disclaims any obligation
to update or revise any forward-looking statements, whether as a
result of new information, future developments or otherwise.
WELLCARE HEALTH PLANS, INC.
RECONCILIATION BETWEEN NET INCOME, AS REPORTED
UNDER GAAP, AND NET INCOME FROM CORE OPERATIONS
(Unaudited, in thousands, except share data)
For the Three Months Ended
September 30, 2005
----------------------------------------------
Adjusted For Core
GAAP PDP Georgia Operations
---------- ---------- ---------- ----------
Revenues:
Premium $490,902 -- -- $490,902
Investment and
other income 4,553 -- -- 4,553
---------- ---------- ---------- ----------
Total revenues 495,455 -- -- 495,455
---------- ---------- ---------- ----------
Expenses:
Medical benefits 396,111 -- -- 396,111
Selling, general
and administrative 66,674 (4,552) (1,058) 61,064
Depreciation and
amortization 2,286 -- -- 2,286
Interest 3,630 -- -- 3,630
---------- ---------- ---------- ----------
Total expenses 468,701 (4,552) (1,058) 463,091
---------- ---------- ---------- ----------
Income before
income taxes 26,754 4,552 1,058 32,364
Income tax expense 10,459 1,775 413 12,647
---------- ---------- ---------- ----------
Net income $16,295 $2,777 $645 $19,717
========== ========== ========== ==========
Net income per
share, diluted $0.41 $0.07 $0.02 $0.50
========== ========== ========== ==========
For the Nine Months Ended
September 30, 2005
----------------------------------------------
Adjusted For Core
GAAP PDP Georgia Operations
---------- ---------- ---------- ----------
Revenues:
Premium $1,356,956 -- -- $1,356,956
Investment and
other income 11,056 -- -- 11,056
---------- ---------- ---------- ----------
Total revenues 1,368,012 -- -- 1,368,012
---------- ---------- ---------- ----------
Expenses:
Medical benefits 1,106,841 -- -- 1,106,841
Selling, general
and administrative 177,015 (5,652) (1,058) 170,305
Depreciation and
amortization 6,376 -- -- 6,376
Interest 10,401 -- -- 10,401
---------- ---------- ---------- ----------
Total expenses 1,300,633 (5,652) (1,058) 1,293,923
---------- ---------- ---------- ----------
Income before
income taxes 67,379 5,652 1,058 74,089
Income tax expense 26,290 2,204 413 28,907
---------- ---------- ---------- ----------
Net income $41,089 $3,448 $645 $45,182
========== ========== ========== ==========
Net income per
share, diluted $1.05 $0.09 $0.02 $1.15
========== ========== ========== ==========
WELLCARE HEALTH PLANS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues:
Premium $490,902 $373,625 $1,356,956 $995,615
Investment and
other income 4,553 1,019 11,056 2,296
---------- ---------- ---------- ----------
Total revenues 495,455 374,644 1,368,012 997,911
---------- ---------- ---------- ----------
Expenses:
Medical benefits 396,111 296,737 1,106,841 811,956
Selling, general
and administrative 66,674 46,164 177,015 122,076
Depreciation and
amortization 2,286 1,916 6,376 5,601
Interest 3,630 2,915 10,401 7,026
---------- ---------- ---------- ----------
Total expenses 468,701 347,732 1,300,633 946,659
---------- ---------- ---------- ----------
Income before
income taxes 26,754 26,912 67,379 51,252
Income tax expense 10,459 10,119 26,290 19,701
---------- ---------- ---------- ----------
Net income $16,295 $16,793 $41,089 $31,551
========== ========== ========== ==========
Net income per share:
Basic $0.43 $0.48 $1.09 $1.18
Diluted $0.41 $0.45 $1.05 $1.07
Weighted average common
shares outstanding:
Basic 37,848,513 35,093,632 37,559,719 26,767,093
Diluted 39,668,723 37,611,428 39,140,583 29,417,475
WELLCARE HEALTH PLANS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share data)
Sept. 30, Dec. 31,
2005 2004
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $436,084 $397,627
Investments 178,403 75,515
Premiums and other receivables, net 56,167 52,170
Prepaid expenses and other current assets 7,033 6,119
Income taxes receivable -- 1,615
Deferred income taxes 19,195 15,362
---------- ----------
Total current assets 696,882 548,408
Property and equipment, net 29,526 12,587
Goodwill 185,779 180,848
Other intangibles, net 22,854 25,441
Restricted investment assets 36,595 31,473
Other assets 111 279
---------- ----------
TOTAL ASSETS $971,747 $799,036
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Medical benefits payable $228,712 $190,595
Unearned premiums 138,252 63,449
Income taxes payable 3,308 --
Accounts payable and accrued expenses 46,188 35,520
Current portion of long-term debt 1,600 1,600
---------- ----------
Total current liabilities 418,060 291,164
Notes payable to related party 25,000 25,000
Long-term debt 155,821 156,901
Accrued interest 881 --
Deferred income taxes 16,110 14,818
Other liabilities 2,667 2,522
---------- ----------
Total liabilities 618,539 490,405
Commitments and contingencies
Stockholders' Equity:
Preferred Stock, $0.01 par value (20,000,000
authorized, no shares issued or outstanding)
Common Stock, $0.01 par value (100,000,000
authorized, 39,224,921 and 38,590,655 shares
issued and outstanding at September 30, 2005
and December 31, 2004, respectively) 392 386
Paid-in capital 234,266 230,804
Retained earnings 118,533 77,444
Accumulated other comprehensive
income (expense) 17 (3)
---------- ----------
Total stockholders' equity 353,208 308,631
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $971,747 $799,036
========== ==========
WELLCARE HEALTH PLANS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Nine Months Ended
September 30,
2005 2004
---------- ----------
Cash from operating activities:
Net income $41,089 $31,551
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization expense 6,376 5,601
Disposal of property and equipment (42) --
Realized losses (gains) on investments 20 (2)
Equity-based compensation expense 2,698 1,713
Accreted interest 120 338
Deferred taxes, net (2,541) (2,256)
Deferred rent expense 289 --
Provision for doubtful receivables -- 1,789
Net gain on loan prepayment -- (2,697)
Changes in operating accounts, net of
effect of acquisition:
Premiums and other receivables (3,997) (22,144)
Prepaid expenses and other current assets (786) (7,714)
Medical benefits payable 38,117 11,029
Unearned premiums 74,803 (9,657)
Accounts payable and accrued expenses 11,628 1,119
Accrued interest (468) (598)
Taxes payable 4,923 17,539
Other liabilities (53) (168)
--------- ---------
Net cash provided by operating activities 172,176 25,443
--------- ---------
Cash from investing activities:
Purchase of business (5,931) (36,542)
Proceeds from sale and maturities
of investments, net 41,148 8,728
Purchases of investments (144,036) (119,776)
Purchases and depositions
of restricted investments (5,122) (8,435)
Additions to property and equipment, net (19,529) (4,471)
--------- ---------
Net cash used in investing activities (133,470) (160,496)
--------- ---------
Cash from financing activities:
Contribution of capital -- 95
Proceeds from options exercised 951 --
Proceeds from debt issuance, net -- 159,200
Payments on debt (1,200) (108,433)
Proceeds from initial public offering, net -- 112,295
--------- ---------
Net cash (used in) provided by
financing activities (249) 163,157
--------- ---------
Net increase in cash and cash equivalents 38,457 28,104
Cash and cash equivalents
at beginning of period 397,627 237,321
--------- ---------
Cash and cash equivalents at end of period $436,084 $265,425
========= =========
Supplemental disclosures of
cash flow information:
Cash paid for taxes $23,888 $4,925
========= =========
Cash paid for interest $9,756 $8,691
========= =========
WELLCARE HEALTH PLANS, INC.
GUIDANCE RECONCILIATION
(Unaudited, in thousands, except per share data)
Fourth Quarter 2005
Core Operations
----------------------
Low High
---------- ----------
Total revenues $495,000 495,000
Total expenses 462,200 460,500
---------- ----------
Pre-tax income 32,800 34,500
Tax expense (12,800) (13,500)
---------- ----------
Net income $20,000 $21,000
========== ==========
Net income per
diluted share $0.50 $0.53
========== ==========
Adjusted For
----------------------------------------------
PDP Georgia
---------------------- -----------------------
Low High Low High
---------- ---------- ---------- ----------
Total revenues $-- $-- $-- $--
Total expenses 30,000 22,000 5,000 3,000
---------- ---------- ---------- ----------
Pre-tax income (30,000) (22,000) (5,000) (3,000)
Tax expense 11,700 8,600 2,000 1,200
---------- ---------- ---------- ----------
Net income $(18,300) $(13,400) $(3,000) $(1,800)
========== ========== ========== ==========
GAAP
----------------------
Low High
---------- ----------
Total revenues $495,000 $495,000
Total expenses 497,200 485,500
---------- ----------
Pre-tax income (2,200) 9,500
Tax expense 900 (3,700)
---------- ----------
Net income $(1,300) $5,800
========== ==========
Net income per
diluted share $(0.03) $0.15
========== ==========
Full Year 2005
Core Operations
----------------------
Low High
---------- ----------
Total revenues $1,860,000 $1,860,000
Total expenses 1,753,500 1,751,800
---------- ----------
Pre-tax income 106,500 108,200
Tax expense (41,500) (42,200)
---------- ----------
Net income $65,000 $66,000
========== ==========
Net income per
diluted share $1.65 $1.67
========== ==========
Adjusted For
PDP Georgia
---------------------- ----------------------
Low High Low High
---------- ---------- --------- ----------
Total revenues $-- $-- $-- $--
Total expenses 35,600 27,600 6,100 4,100
---------- ---------- ---------- ----------
Pre-tax income (35,600) (27,600) (6,100) (4,100)
Tax expense 14,000 10,800 2,400 1,600
---------- ---------- ---------- ----------
Net income $(21,600) $(16,800) $(3,700) $(2,500)
========== ========== ========== ==========
GAAP
----------------------
Low High
---------- ----------
Total revenues $1,860,000 $1,860,000
Total expenses 1,795,200 1,783,500
---------- ----------
Pre-tax income 64,800 76,500
Tax expense (25,100) (29,800)
---------- ----------
Net income $39,700 $46,700
========== ==========
Net income per
diluted share $1.00 $1.18
========== ==========
CONTACT: WellCare Health Plans, Inc.
Thad Waugh, 813-865-1284
thad.waugh@wellcare.com