moh-20210331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number: 001-31719

MOLINA HEALTHCARE, INC.

(Exact name of registrant as specified in its charter)


Delaware		13-4204626
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

200 Oceangate, Suite 100
Long Beach,	California	90802
(Address of principal executive offices)		(Zip Code)

(562) 435-3666

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value	MOH	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the issuer’s Common Stock, $0.001 par value, outstanding as of April 23, 2021, was approximately 58,400,000.

Table of Contents

MOLINA HEALTHCARE, INC. FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021

TABLE OF CONTENTS


ITEM NUMBER		Page

PART I

1.	Financial Statements	3

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

3.	Quantitative and Qualitative Disclosures About Market Risk	33

4.	Controls and Procedures	34

PART II

1.	Legal Proceedings	34

1A.	Risk Factors	34

2.	Unregistered Sales of Equity Securities and Use of Proceeds	34

3.	Defaults Upon Senior Securities	Not Applicable.

4.	Mine Safety Disclosures	Not Applicable.

5.	Other Information	Not Applicable.

6.	Exhibits	35

	Signatures	36

Table of Contents

CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended March 31,
	2021		2020

	(In millions, except per-share amounts) (Unaudited)
Revenue:
Premium revenue	$	6,306	$	4,304
Premium tax revenue	187		150
Health insurer fees reimbursed	—		66
Investment income	9		25
Other revenue	20		4
Total revenue	6,522		4,549
Operating expenses:
Medical care costs	5,474		3,716
General and administrative expenses	473		317
Premium tax expenses	187		150
Health insurer fees	—		68
Depreciation and amortization	33		20
Other	20		4
Total operating expenses	6,187		4,275
Operating income	335		274
Other expenses, net:
Interest expense	30		21

Total other expenses, net	30		21
Income before income tax expense	305		253
Income tax expense	77		75
Net income	$	228	$	178

Net income per share - Basic	$	3.95	$	2.95
Net income per share - Diluted	$	3.89	$	2.92

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended March 31,
	2021		2020

	(In millions) (Unaudited)
Net income	$	228	$	178
Other comprehensive loss:
Unrealized investment loss	(15)		(25)
Less: effect of income taxes	(4)		(6)
Other comprehensive loss, net of tax	(11)		(19)
Comprehensive income	$	217	$	159

See accompanying notes.

Molina Healthcare, Inc. March 31, 2021 Form 10-Q | 3

Table of Contents

CONSOLIDATED BALANCE SHEETS


	March 31, 2021		December 31, 2020

	(Dollars in millions, except per-share amounts)
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,431	$	4,154
Investments	1,938		1,875
Receivables	1,776		1,672
Prepaid expenses and other current assets	163		175
Total current assets	8,308		7,876
Property, equipment, and capitalized software, net	378		391
Goodwill, and intangible assets, net	923		941
Restricted investments	138		136
Deferred income taxes	66		69
Other assets	137		119
Total assets	$	9,950	$	9,532

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	2,839	$	2,696
Amounts due government agencies	1,718		1,253
Accounts payable, accrued liabilities and other	695		641
Deferred revenue	71		375
Total current liabilities	5,323		4,965
Long-term debt	2,128		2,127
Finance lease liabilities	223		225
Other long-term liabilities	112		119
Total liabilities	7,786		7,436
Stockholders’ equity:
Common stock, $0.001 par value, 150 million shares authorized; outstanding: 58 million shares at March 31, 2021, and 59 million shares at December 31, 2020	—		—
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding	—		—
Additional paid-in capital	170		199
Accumulated other comprehensive income	26		37
Retained earnings	1,968		1,860
Total stockholders’ equity	2,164		2,096
Total liabilities and stockholders’ equity	$	9,950	$

SEC Form 10-Q filed by Molina Healthcare Inc