Business Wire | Apr 30, 2021 06:30AM EDT

Magellan Health Reports First Quarter 2021 Financial Results

Apr. 30, 2021

PHOENIX--(BUSINESS WIRE)--Apr. 30, 2021--Magellan Health, Inc. (NASDAQ: MGLN) today announced financial results for the first quarter ended March 31, 2021, as summarized below:

Three Months Ended March 31(In millions, except per share amounts)

Continuing Operations 2021 2020 Chg

Net revenue $ 1,161.6 $ 1,122.4 3.5 %

Net income (loss) $ 28.5 $ (1.1 ) NM

Segment profit ^[1] $ 75.1 $ 41.6 80.6 %

Adjusted net income ^[1] $ 35.5 $ 6.0 490.1 %

Earnings (loss) per share $ 1.07 $ (0.04 ) NM

Adjusted earnings per share ^[1] $ 1.33 $ 0.25 432.0 %

^[1] Refer to the Basis of Presentation fora discussion of non-GAAP financial measures.NM = "not meaningful" First Quarter 2021 Highlights and Other Recent Developments:

* Net revenue increased 3.5% percent over the first quarter of 2020 to $1.16 billion. * Net income increased by $29.6 million over the first quarter of 2020 to $28.5 million. * Segment profit increased 80.6% percent over the first quarter of 2020 to $75.1 million. * Adjusted net income and adjusted earnings per share were $35.5 million and $1.33 as compared to the prior year period of $6.0 million and $0.25, respectively. * On March 18, 2021, Magellan announced that it had been selected to, once again, serve as a contractor for the Military and Family Life Counseling program, which provides counseling for adults and children in the military community. * On March 31, 2021, Magellan's shareholders adopted the plan of merger with Centene Corporation ("Centene"). The Merger Agreement provides for the acquisition by Centene at a price of $95 per share of Magellan common stock in cash. The Company continues to expect the transaction to close during the second half of 2021.

"I am pleased with our first quarter 2021 results, which reflect the progress of the collective efforts of our associates to transform, innovate and grow our businesses. Our pipeline of potential new business opportunities continues to build as customers recognize the growing value of our solutions in the market," said Kenneth Fasola, chief executive officer, Magellan Health.

"We are also making significant progress in our integration planning efforts with Centene, and we remain enthusiastic about the transaction," continued Fasola. "We look forward to a new chapter of growth and innovation as a payer services business operating independently under Centene's Health Care Enterprises division."

Net Revenue

Net revenue from continuing operations was $1.16 billion for the first quarter of 2021, an increase of 3.5% compared to first quarter of 2020 primarily due to growth in the Healthcare segment, partially offset by a modest decline in the Pharmacy Management segment created by the decision to exit Medicare Part D as a plan sponsor.

Segment Profit

Segment profit from continuing operations was $75.1 million for first quarter of 2021, compared to $41.6 million in the first quarter of 2020.

* Healthcare segment profit was $41.3 million, representing an increase of $5.7 million from 2020. This year-over-year increase was primarily driven by net business growth partially off-set by an increase in corporate allocations.

* Pharmacy Management segment profit was $43.7 million, representing an increase of $22.8 million from 2020. This year-over-year increase was primarily driven by revenue growth across specialty, government and commercial PBM, improved gross margin, proceeds from the settlement of a legal matter, and the exit from Medicare Part D. These gains were partially off-set by an increase in corporate allocations and start-up costs associated with a new contract implementation.

* Corporate segment costs inclusive of eliminations, but excluding stock compensation expense, totaled $9.9 million, as compared to $14.9 million in 2020. This decrease was primarily driven by the reduction of stranded corporate overhead expenses associated with discontinued operations in the prior year quarter.

Other Items

The Company recorded a special charge of $1.2 million during the first quarter of 2021 primarily associated with non-cash lease termination and abandonment costs for planned reductions to the Company's real estate footprint and severance related to the transformation operational initiatives.

The loss from discontinued operations, net of tax, for the first quarter of 2021 was $0.7 million, as compared to income from discontinued operations of $19.3 million during the first quarter of 2020. This decrease is due to the sale of Magellan Complete Care business ("MCC Business") to Molina Healthcare, Inc. ("Molina") effective December 31, 2020. Ongoing discontinued operations post the closing of this transaction reflect transaction related costs as well as changes to accounting estimates associated with this divestiture.

Cash Flow & Balance Sheet

Cash flow used in operating activities from continuing operations for the three months ended March 31, 2021, was $77.9 million, as compared to cash flow used in operating activities of $4.1 million for the three months ended March 31, 2020. This year over year change is largely due to unfavorable changes in working capital and increased tax payments.

As of March 31, 2021, the Company's unrestricted cash and investments totaled $934.4 million, as compared to $1,148.8 million at December 31, 2020. This decrease is largely due to voluntary term loan repayments of $100 million in March and unfavorable changes in working capital. Approximately $50.0 million of the unrestricted cash and investments at March 31, 2021 is related to excess capital and undistributed earnings held at regulated entities of continuing operations.

Earnings Conference Call

Due to the pending transaction with Centene, the Company is not hosting a conference call in conjunction with its first quarter 2021 earnings release and does not expect to do so in future quarters. Please direct any questions regarding this earnings release to Magellan's Investor Relations or Media contacts.

Basis of Presentation

In addition to results determined under Generally Accepted Accounting Principles (GAAP), Magellan provides certain non-GAAP financial measures that management believes are useful in assessing the Company's performance. Following is a description of these important non-GAAP measures.

Segment profit is equal to net revenue less the sum of cost of care, cost of goods sold, direct service costs and other operating expenses, and includes income from unconsolidated subsidiaries and the settlement of a legal matter, but excludes segment profit or loss from non-controlling interests held by other parties, stock compensation expense, special charges or benefits, as well as changes in the fair value of contingent consideration recorded in relation to acquisitions.

Adjusted net income and adjusted earnings per share reflect certain adjustments made for acquisitions to exclude non?cash stock compensation expense resulting from restricted stock purchases by sellers, changes in the fair value of contingent consideration, amortization of identified acquisition intangibles, as well as impairment of identified acquisition intangibles, special charges, and any impact related to the sale of MCC.

Included in the tables issued with this press release are the reconciliations from GAAP measures to the corresponding non-GAAP measures.

MCC Business Reflected as Discontinued Operations

Due to the sale of the MCC Business to Molina, the consolidated financial statements for all periods presented reflect the MCC Business as discontinued operations.

About Magellan Health:Magellan Health, Inc. is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan's customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.

Forward-Looking Statements

This press release include statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "may," "should," "could," "estimate," "intend" and other similar expressions are intended to identify forward-looking statements. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Important proposed merger-related and other risk factors that may cause such differences include: (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed merger; (ii) the transaction closing conditions may not be satisfied in a timely manner or at all, including due to the failure to obtain regulatory approvals; (iii) the announcement and pendency of the proposed merger may disrupt the Company's business operations (including the threatened or actual loss of employees, customers or suppliers); and (iv) the Company could experience financial or other setbacks if the transaction encounters unanticipated problems. Other important factors that could cause actual results to differ materially from those expressed or implied include the effectiveness of business continuity plans during, and the risks associated with, the COVID-19 pandemic; termination or non-renewal of customer contracts; changes in rates paid to and/or by the Company by customers and/or providers; our ability to develop and maintain satisfactory relationships with providers; higher utilization of healthcare services by the Company's members; risks and uncertainties associated with the pharmacy benefits management industry; costs to maintain or upgrade our information technology and other business systems and the effectiveness and security of such systems; cyberattacks, other privacy/data security incidents, and/or our failure to comply with related regulations; delays, higher costs or inability to obtain and/or implement new business or other Company initiatives; the impact of changes in the contracting model for Medicaid contracts; impairment of our goodwill and intangible assets; the impact of new or amended laws or regulations; costs and other liabilities associated with litigation, government investigations, audits or reviews; competition; operational issues; healthcare reform; and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the "Risk Factors" section included within the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, to be filed with the Securities and Exchange Commission later today, and subsequent reports on Forms 10-Q and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

MAGELLAN HEALTH, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands) December 31, March 31, 2021 2020

(unaudited)

ASSETS Current Assets:Cash and cash equivalents $ 1,144,450 $ 456,309

Accounts receivable, net 743,502 793,504

Short-term investments 140,847 625,600

Pharmaceutical inventory 43,334 46,389

Other current assets 84,264 101,462

Total Current Assets 2,156,397 2,023,264

Property and equipment, net 136,739 142,084

Long-term investments 2,612 4,830

Deferred income taxes 1,842 921

Other long-term assets 108,797 119,947

Goodwill 873,779 873,830

Other intangible assets, net 79,689 71,631

Total Assets $ 3,359,855 $ 3,236,507

LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities:Accounts payable $ 137,380 $ 149,760

Accrued liabilities 354,906 266,217

Medical claims payable 111,851 116,580

Other medical liabilities 126,921 123,109

Current debt, finance lease and deferred 6,521 6,543 financing obligationsTotal Current Liabilities 737,579 662,209

Long-term debt, finance lease and deferred 631,855 526,682 financing obligationsDeferred income taxes 7,102 13,602

Tax contingencies 11,002 11,867

Deferred credits and other long-term 69,283 79,276 liabilitiesTotal Liabilities 1,456,821 1,293,636

Redeemable non-controlling interest 33,062 33,303

Stockholders' Equity:Ordinary common stock 555 558

Additional paid-in capital 1,477,219 1,488,975

Retained earnings 1,857,130 1,884,957

Accumulated other comprehensive loss (205 ) (195 )

Ordinary common stock in treasury, at cost (1,464,727 ) (1,464,727 )

Total Stockholders' Equity 1,869,972 1,909,568

Total Liabilities and Stockholders' Equity $ 3,359,855 $ 3,236,507

MAGELLAN HEALTH, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Unaudited)(In thousands, except per share amounts)Three Months Ended

March 31,

2020

2021

Net revenue:Managed care and other$

553,168

$

626,076

PBM569,211

535,573

Total net revenue1,122,379

1,161,649

Costs and expenses:Cost of care349,108

379,191

Cost of goods sold533,241

492,370

Direct service costs and other operating expenses (1)204,241

231,021

Legal matter settlement-

(9,000

)

Depreciation and amortization23,358

21,417

Interest expense8,958

6,426

Interest and other income(1,219

)

(341

)

Special charges-

1,151

Total costs and expenses1,117,687

1,122,235

Income from continuing operations before income taxes4,692

39,414

Provision for income taxes5,762

10,905

Net (loss) income from continuing operations(1,070

)

28,509

Income (loss) from discontinued operations, net of tax19,320

(682

)

Net Income$

18,250

$

27,827

Weighted average number of common shares outstanding - basic24,728

25,948

Weighted average number of common shares outstanding - diluted24,869

26,553

Net (loss) income per common share - basicContinuing operations$

(0.04

)

$

1.10

Discontinued operations0.78

(0.03

)

Consolidated operations$

0.74

$

1.07

Net (loss) income per common share - dilutedContinuing operations$

(0.04

)

$

1.07

Discontinued operations0.78

(0.03

)

Consolidated operations$

0.74

$

1.04

Net income$

18,250

$

27,827

Other comprehensive income:Unrealized (loss) gain on available-for-sale securities (2)(201

)

10

Comprehensive income$

18,049

$

27,837

MAGELLAN HEALTH, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Unaudited)(In thousands, except per share amounts) Three Months Ended

March 31,

2020 2021

Net revenue:Managed care and other $ 553,168 $ 626,076

PBM 569,211 535,573

Total net revenue 1,122,379 1,161,649

Costs and expenses:Cost of care 349,108 379,191

Cost of goods sold 533,241 492,370

Direct service costs and other operating 204,241 231,021 expenses (1)Legal matter settlement - (9,000 )

Depreciation and amortization 23,358 21,417

Interest expense 8,958 6,426

Interest and other income (1,219 ) (341 )

Special charges - 1,151

Total costs and expenses 1,117,687 1,122,235

Income from continuing operations before 4,692 39,414 income taxesProvision for income taxes 5,762 10,905

Net (loss) income from continuing operations (1,070 ) 28,509

Income (loss) from discontinued operations, 19,320 (682 )net of taxNet Income $ 18,250 $ 27,827

Weighted average number of common shares 24,728 25,948 outstanding - basicWeighted average number of common shares 24,869 26,553 outstanding - diluted Net (loss) income per common share - basicContinuing operations $ (0.04 ) $ 1.10

Discontinued operations 0.78 (0.03 )

Consolidated operations $ 0.74 $ 1.07

Net (loss) income per common share - dilutedContinuing operations $ (0.04 ) $ 1.07

Discontinued operations 0.78 (0.03 )

Consolidated operations $ 0.74 $ 1.04

Net income $ 18,250 $ 27,827

Other comprehensive income:Unrealized (loss) gain on available-for-sale (201 ) 10 securities (2)Comprehensive income $ 18,049 $ 27,837

(1)

Includes stock compensation expense of $5,797 and $7,057 for the three months ended March 31, 2020 and 2021, respectively.

(2)

Net of income tax (benefit) provision of $(67) and $3 for the three months ended March 31, 2020 and 2021, respectively.

(1) Includes stock compensation expense of $5,797 and $7,057 for the three months ended March 31, 2020 and 2021, respectively.

(2) Net of income tax (benefit) provision of $(67) and $3 for the three months ended March 31, 2020 and 2021, respectively.

MAGELLAN HEALTH, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In thousands)Three Months Ended

March 31,

2020

2021

Cash flows from operating activities:Net income$

18,250

$

27,827

Adjustments to reconcile net income to net cash from operating activities:Depreciation and amortization28,684

21,417

Special charges-

1,151

Non-cash interest expense585

355

Non-cash stock compensation expense6,057

7,057

Non-cash income tax provision7,802

7,603

Non-cash accretion on investments325

592

Changes in assets and liabilities, net of effects from acquisitions of businesses:Accounts receivable, net(33,291

)

(50,013

)

Pharmaceutical inventory2,629

(3,055

)

Other assets(41,862

)

(27,283

)

Accounts payable and accrued liabilities52,746

(76,183

)

Medical claims payable and other medical liabilities(13,622

)

917

Tax contingencies925

680

Deferred credits and other long-term liabilities3,003

9,993

Other(505

)

1,067

Net cash provided by (used in) operating activities31,726

(77,875

)

Net cash provided by operating activities from discontinued operations35,805

-

Net cash used in operating activities from continuing operations(4,079

)

(77,875

)

Cash flows from investing activities:Capital expenditures(15,719

)

(19,540

)

Acquisitions and investments in businesses, net of cash acquired(369

)

(2,372

)

Purchases of investments(164,311

)

(673,169

)

Proceeds from maturities and sales of investments152,394

185,619

Net cash used in investing activities(28,005

)

(509,462

)

Net cash used in investing activities from discontinued operations(19,154

)

-

Net cash used in investing activities from continuing operations(8,851

)

(509,462

)

Cash flows from financing activities:Proceeds from borrowings on revolving line of credit80,000

-

Proceeds from exercise of stock options10,903

7,467

Payments on debt, finance lease and deferred financing obligations(34,774

)

(105,506

)

Other(1,136

)

(2,765

)

Net cash provided by (used in) financing activities54,993

(100,804

)

Net cash provided by financing activities from discontinued operations-

-

Net cash provided by (used in) financing activities from continuing operations54,993

(100,804

)

Net increase (decrease) in cash and cash equivalents42,063

(688,141

)

Cash and cash equivalents at beginning of period115,752

1,144,450

Cash and cash equivalents at end of period$

157,815

$

456,309

MAGELLAN HEALTH, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In thousands) Three Months Ended

March 31,

2020 2021

Cash flows from operating activities:Net income $ 18,250 $ 27,827

Adjustments to reconcile net income to net cashfrom operating activities:Depreciation and amortization 28,684 21,417

Special charges - 1,151

Non-cash interest expense 585 355

Non-cash stock compensation expense 6,057 7,057

Non-cash income tax provision 7,802 7,603

Non-cash accretion on investments 325 592

Changes in assets and liabilities, net ofeffects from acquisitions of businesses:Accounts receivable, net (33,291 ) (50,013 )

Pharmaceutical inventory 2,629 (3,055 )

Other assets (41,862 ) (27,283 )

Accounts payable and accrued liabilities 52,746 (76,183 )

Medical claims payable and other medical (13,622 ) 917 liabilitiesTax contingencies 925 680

Deferred credits and other long-term 3,003 9,993 liabilitiesOther (505 ) 1,067

Net cash provided by (used in) operating 31,726 (77,875 )activitiesNet cash provided by operating activities from 35,805 - discontinued operationsNet cash used in operating activities from (4,079 ) (77,875 )continuing operations Cash flows from investing activities:Capital expenditures (15,719 ) (19,540 )

Acquisitions and investments in businesses, net (369 ) (2,372 )of cash acquiredPurchases of investments (164,311 ) (673,169 )

Proceeds from maturities and sales of 152,394 185,619 investmentsNet cash used in investing activities (28,005 ) (509,462 )

Net cash used in investing activities from (19,154 ) - discontinued operationsNet cash used in investing activities from (8,851 ) (509,462 )continuing operations Cash flows from financing activities:Proceeds from borrowings on revolving line of 80,000 - creditProceeds from exercise of stock options 10,903 7,467

Payments on debt, finance lease and deferred (34,774 ) (105,506 )financing obligationsOther (1,136 ) (2,765 )

Net cash provided by (used in) financing 54,993 (100,804 )activitiesNet cash provided by financing activities from - - discontinued operationsNet cash provided by (used in) financing 54,993 (100,804 )activities from continuing operations Net increase (decrease) in cash and cash 42,063 (688,141 )equivalentsCash and cash equivalents at beginning of 115,752 1,144,450 periodCash and cash equivalents at end of period $ 157,815 $ 456,309

MAGELLAN HEALTH, INC. AND SUBSIDIARIESCONTINUING OPERATIONS RESULTS BY BUSINESS SEGMENT(Unaudited)(In thousands)Three Months Ended

March 31,

2020

2021

HealthcareManaged care and other revenue$

488,906

$

533,010

Cost of care(349,108

)

(379,191

)

Direct service costs and other(105,936

)

(114,993

)

Stock compensation expense (1)1,761

2,519

Healthcare segment profit35,623

41,345

Pharmacy ManagementManaged care and other revenue64,435

93,227

PBM revenue573,778

538,972

Cost of goods sold(537,574

)

(495,593

)

Direct service costs and other(81,866

)

(104,596

)

Legal matter settlement-

9,000

Stock compensation expense (1)2,107

2,696

Pharmacy Management segment profit20,880

43,706

Corporate and Elimination (2)Managed care and other revenue(173

)

(161

)

PBM revenue(4,567

)

(3,399

)

Cost of goods sold4,333

3,223

Direct service costs and other(16,439

)

(11,432

)

Stock compensation expense (1)1,929

1,842

Corporate and Elimination(14,917

)

(9,927

)

ConsolidatedManaged care and other revenue553,168

626,076

PBM revenue569,211

535,573

Cost of care(349,108

)

(379,191

)

Cost of goods sold(533,241

)

(492,370

)

Direct service costs and other(204,241

)

(231,021

)

Legal matter settlement-

9,000

Stock compensation expense (1)5,797

7,057

Segment profit from continuing operations$

41,586

$

75,124

Reconciliation of income from continuing operations before income taxes (GAAP) to segment profit (non-GAAP):Income from continuing operations before income taxes$

4,692

$

39,414

Stock compensation expense5,797

7,057

Depreciation and amortization23,358

21,417

Interest expense8,958

6,426

Interest and other income(1,219

)

(341

)

Special charges-

1,151

Segment profit from continuing operations$

41,586

$

75,124

MAGELLAN HEALTH, INC. AND SUBSIDIARIESCONTINUING OPERATIONS RESULTS BY BUSINESS SEGMENT(Unaudited)(In thousands) Three Months Ended

March 31,

2020 2021

HealthcareManaged care and other revenue $ 488,906 $ 533,010

Cost of care (349,108 ) (379,191 )

Direct service costs and other (105,936 ) (114,993 )

Stock compensation expense (1) 1,761 2,519

Healthcare segment profit 35,623 41,345

Pharmacy ManagementManaged care and other revenue 64,435 93,227

PBM revenue 573,778 538,972

Cost of goods sold (537,574 ) (495,593 )

Direct service costs and other (81,866 ) (104,596 )

Legal matter settlement - 9,000

Stock compensation expense (1) 2,107 2,696

Pharmacy Management segment profit 20,880 43,706

Corporate and Elimination (2)Managed care and other revenue (173 ) (161 )

PBM revenue (4,567 ) (3,399 )

Cost of goods sold 4,333 3,223

Direct service costs and other (16,439 ) (11,432 )

Stock compensation expense (1) 1,929 1,842

Corporate and Elimination (14,917 ) (9,927 )

ConsolidatedManaged care and other revenue 553,168 626,076

PBM revenue 569,211 535,573

Cost of care (349,108 ) (379,191 )

Cost of goods sold (533,241 ) (492,370 )

Direct service costs and other (204,241 ) (231,021 )

Legal matter settlement - 9,000

Stock compensation expense (1) 5,797 7,057

Segment profit from continuing operations $ 41,586 $ 75,124

Reconciliation of income from continuingoperations before income taxes (GAAP) tosegment profit (non-GAAP):Income from continuing operations before $ 4,692 $ 39,414 income taxesStock compensation expense 5,797 7,057

Depreciation and amortization 23,358 21,417

Interest expense 8,958 6,426

Interest and other income (1,219 ) (341 )

Special charges - 1,151

Segment profit from continuing operations $ 41,586 $ 75,124

(1) Stock compensation expense, changes in the fair value of contingent consideration recorded in relation to acquisitions and impairment of intangible assets are included in direct service costs and other operating expenses; however, these amounts are excluded from the computation of segment profit.(2) Pharmacy Management provides pharmacy benefits management for certain Healthcare customers, and the Company's employees covered under its medical plan. As such, revenue, cost of goods sold and direct service costs and other related to these arrangements are eliminated.(1) Stock compensation expense, changes in the fair value of contingentconsideration recorded in relation to acquisitions and impairment of intangibleassets are included in direct service costs and other operating expenses;however, these amounts are excluded from the computation of segment profit. (2) Pharmacy Management provides pharmacy benefits management for certainHealthcare customers, and the Company's employees covered under its medicalplan. As such, revenue, cost of goods sold and direct service costs and otherrelated to these arrangements are eliminated.MAGELLAN HEALTH, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Unaudited)(In thousands, except per share amounts)Three Months Ended

March 31,

2020

2021

Net (loss) income from continuing operations$

(1,070

)

$

28,509

AdjustmentsStock compensation expense-

246

Amortization of acquired intangibles9,686

8,059

Special charges-

1,151

Tax impact(2,605

)

(2,492

)

Adjusted net income from continuing operations$

6,011

$

35,473

Net (loss) income per common share attributable to Magellan -Diluted$

(0.04

)

$

1.07

AdjustmentsStock compensation expense-

0.01

Amortization of acquired intangibles0.39

0.30

Special charges-

0.04

Tax impact(0.10

)

(0.09

)

Adjusted earnings per share$

0.25

$

1.33

(MGLN-GEN)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005084/en/

CONTACT: Media Contact: Lilly Ackley, ackleyl@magellanhealth.com, (860) 507-1923

CONTACT: Investor Contact: Darren Lehrich, lehrichd@magellanhealth.com, (860) 507-1814