MAGELLAN HEALTH INC0000019411false00000194112021-08-052021-08-05

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported):

August 5, 2021

MAGELLAN HEALTH, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware

1-6639

58-1076937

(State or Other Jurisdiction

(Commission File

(IRS Employer

of Incorporation)

Number)

Identification No.)

4801 E. Washington Street

Phoenix, Arizona

85034

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (800) 642-1716

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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, par value $0.01 per share

MGLN

The NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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 Section 13(a) of the Exchange Act.

Item 2.02. Results of Operations and Financial Condition

On August 5, 2021, Magellan Health, Inc. (the “Company”) reported operating results for the quarter ended June 30, 2021. Attached and incorporated herein by reference as Exhibit 99.1 is a copy of the press release dated August 5, 2021.

Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits

(a)  Financial Statements of business acquired:              Not applicable.

(b)  Pro forma financial information:                  Not applicable.

(d)  Exhibits:See Exhibit Index.

2

Exhibit Index

Exhibit Number

   

Description of Exhibit

99.1

Press release dated August 5, 2021.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MAGELLAN HEALTH, INC.

Date: August 5, 2021

By:

/s/ David P. Bourdon

Name:   David P. Bourdon

Title:     Chief Financial Officer

4

A picture containing text, businesscard, clipart

Description automatically generated

Exhibit 99.1

NEWS RELEASE

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

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

Magellan Health Reports Second Quarter 2021 Financial Results

PHOENIX – Aug. 5, 2021 – Magellan Health, Inc. (NASDAQ: MGLN) today announced financial results for the second quarter ended June 30, 2021, as summarized below:

Three Months Ended

Six Months Ended

June 30

June 30

(In millions, except per share amounts)

Continuing Operations

2021

2020

Chg

2021

2020

Chg

Net revenue

    

$

1,220.8

    

$

1,100.1

    

11.0

%  

$

2,382.4

    

$

2,222.5

    

7.2

%

Net income (loss)

$

(6.5)

$

47.1

-113.7

%  

$

22.0

$

46.0

-52.1

%

Segment profit [1]

$

32.3

$

57.0

-43.3

%  

$

107.4

$

98.6

8.9

%

Adjusted net income [1]

$

3.0

$

21.3

-85.8

%  

$

38.5

$

27.3

41.1

%

Earnings (loss) per share

$

(0.25)

$

1.86

-113.4

%  

$

0.83

$

1.84

-54.9

%

Adjusted earnings per share [1]

$

0.11

$

0.84

-86.9

%  

$

1.45

$

1.09

33.0

%

[1] Refer to the Basis of Presentation for a discussion of non-GAAP financial measures.

Second Quarter 2021 Highlights and Other Recent Developments:

Net revenue increased 11.0% percent over the second quarter of 2020 to $1.22 billion.
Net income from continuing operations decreased by $53.6 million from the second quarter of 2020 to a net loss of $6.5 million.
Segment profit decreased 43.3% percent from the second quarter of 2020 to $32.3 million.
Adjusted net income and adjusted earnings per share were $3.0 million and $0.11 for the quarter as compared to the prior year quarter adjusted net income and adjusted earnings per share of $21.3 million and $0.84, respectively.
The Company continues to expect the merger with Centene Corporation (“Centene”) to close during the second half of 2021.

“I am pleased with our organization’s focus during the second quarter of 2021 as we continue to execute against Magellan’s Focus Forward priorities: honoring our commitments, delivering on operational transformation initiatives, strengthening our capabilities through innovation and building a robust growth engine across our businesses,” said Kenneth Fasola, chief executive officer, Magellan Health.

“During the second quarter of 2021, we remained focused on building a more collaborative and integrated ecosystem of care that leverages our years of experience and customer relationships to provide members with a unique combination of digital tools complemented by high-touch clinical solutions. We recognize in


these unprecedented times the growing need for solutions that can bridge behavioral and physical health to close care gaps and produce better outcomes for the members of our health plan, employer and public sector customers.”

“We remain enthusiastic about the Centene transaction and are encouraged by the progress made in our integration planning efforts, which should allow us to chart a successful path for Magellan within Centene’s Health Care Enterprises division following the transaction’s close,” said Kenneth Fasola, chief executive officer, Magellan Health.

Net Revenue

Net revenue from continuing operations was $1.22 billion for the second quarter of 2021, an increase of 11.0% compared to second quarter of 2020 primarily due to growth in the Healthcare segment, partially offset by a modest decline in the Pharmacy Management segment as a result of the January 1, 2021 exit of Medicare Part D as a plan sponsor.

Segment Profit

Segment profit from continuing operations was $32.3 million for second quarter of 2021, compared to $57.0 million in the second quarter of 2020.

Healthcare segment profit was $29.6 million, representing a decrease of $31.2 million from 2020. This year-over-year decrease was most attributable to utilization patterns returning to pre-pandemic levels and an increase in corporate investments.
Pharmacy Management segment profit was $13.2 million, and largely in line with 2020 results. Growth in specialty and government coupled with the exit from Medicare Part D, were offset by an increase in corporate investments.
Corporate segment costs inclusive of eliminations, but excluding stock compensation expense, totaled $10.5 million, as compared to $17.1 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 charge of $5.1 million during the second quarter of 2021 primarily related to the impairment of an investment in a healthcare company that is carried at cost. In the second quarter of 2020 the company recognized a charge of $8.3 million 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.

Income from discontinued operations, net of tax, for the second quarter of 2021 was $5.8 million, as compared to income from discontinued operations, net of tax, of $36.4 million during the second 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. The activity recorded in the second quarter of 2021 reflects changes to accounting estimates associated with this divestiture which were partially offset by post-closing transaction related costs .

Cash Flow & Balance Sheet

Cash flow used in operating activities from continuing operations for the six months ended June 30, 2021, was $142.7 million, as compared to cash flow used in operating activities of $7.5 million for the six months ended June 30, 2020. This year over year change is largely due to unfavorable changes in working capital and increased tax payments.


As of June 30, 2021, the Company’s unrestricted cash and investments totaled $915.8 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, tax payments of approximately $75 million which mainly relate to the gain from the sale of the MCC business and unfavorable changes in working capital. Approximately $26.0 million of the unrestricted cash and investments at June 30, 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 second 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 with Centene; (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 June 30, 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 SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

    

December 31, 2020

  

  

June 30, 2021

(unaudited)

ASSETS

Current Assets:

Cash and cash equivalents

$

1,144,450

$

678,507

Accounts receivable, net

743,502

826,997

Short-term investments

140,847

325,581

Pharmaceutical inventory

43,334

38,789

Other current assets

84,264

145,156

Total Current Assets

2,156,397

2,015,030

Property and equipment, net

136,739

141,628

Long-term investments

2,612

2,985

Deferred income taxes

1,842

Other long-term assets

108,797

120,046

Goodwill

873,779

873,830

Other intangible assets, net

79,689

64,410

Total Assets

$

3,359,855

$

3,217,929

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable

$

137,380

$

132,298

Accrued liabilities

354,906

208,322

Medical claims payable

111,851

147,555

Other medical liabilities

126,921

138,279

Current debt, finance lease and deferred financing obligations

6,521

3,176

Total Current Liabilities

737,579

629,630

Long-term debt, finance lease and deferred financing obligations

631,855

521,518

Deferred income taxes

7,102

17,634

Tax contingencies

11,002

12,734

Deferred credits and other long-term liabilities

69,283

78,918

Total Liabilities

1,456,821

1,260,434

Redeemable non-controlling interest

33,062

33,674

Stockholders’ Equity:

Ordinary common stock

555

559

Additional paid-in capital

1,477,219

1,503,718

Retained earnings

1,857,130

1,884,291

Accumulated other comprehensive loss

(205)

(20)

Ordinary common stock in treasury, at cost

(1,464,727)

(1,464,727)

Total Stockholders’ Equity

1,869,972

1,923,821

Total Liabilities and Stockholders’ Equity

$

3,359,855

$

3,217,929


MAGELLAN HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2021

2020

2021

Net revenue:

  

  

  

  

  

  

Managed care and other

$

548,711

$

676,041

$

1,101,879

$

1,302,117

PBM

551,364

544,727

1,120,575

1,080,300

Total net revenue

1,100,075

1,220,768

2,222,454

2,382,417

Costs, expenses and other income:

Cost of care

321,831

430,735

670,939

809,926

Cost of goods sold

528,067

520,514

1,061,308

1,012,884

Direct service costs and other operating expenses (1)

199,756

243,573

403,997

474,594

Legal matter settlement

(9,000)

Depreciation and amortization

23,888

22,525

47,246

43,942

Interest expense

7,995

6,234

16,953

12,660

Interest and other income

(551)

(208)

(1,770)

(549)

Special charges and other

8,309

5,054

8,309

6,205

Total costs, expenses and other income

1,089,295

1,228,427

2,206,982

2,350,662

Income (loss) from continuing operations before income taxes

10,780

(7,659)

15,472

31,755

(Benefit) provision for income taxes

(36,328)

(1,196)

(30,566)

9,709

Net income (loss) from continuing operations

47,108

(6,463)

46,038

22,046

Income from discontinued operations, net of tax

36,397

5,797

55,717

5,115

Net income (loss)

$

83,505

$

(666)

$

101,755

$

27,161

Weighted average number of common shares outstanding — basic

25,054

26,162

24,891

26,056

Weighted average number of common shares outstanding — diluted

25,278

26,162

25,074

26,576

Net income (loss) per common share — basic

Continuing operations

$

1.88

$

(0.25)

$

1.85

$

0.85

Discontinued operations

1.45

0.22

2.24

0.20

Consolidated operations

$

3.33

$

(0.03)

$

4.09

$

1.05

Net income (loss) per common share — diluted

Continuing operations

$

1.86

$

(0.25)

$

1.84

$

0.83

Discontinued operations

1.44

0.22

2.22

0.19

Consolidated operations

$

3.30

$

(0.03)

$

4.06

$

1.02

Net income (loss)

$

83,505

$

(666)

$

101,755

$

27,161

Other comprehensive income (loss):

Unrealized gains on available-for-sale securities (2)

659

175

458

185

Comprehensive income (loss)

$

84,164

$

(491)

$

102,213

$

27,346

(1)  Includes stock compensation expense of $6,592 and $6,353 for the three months ended June 30, 2020 and 2021, respectively, and $12,389 and $13,410 for the six months ended June 30, 2020 and 2021, respectively.

(2)  Net of income tax provision of $219 and $65 for the three months ended June 31, 2020 and 2021, respectively, and $152 and $69 for the six months ended June 30, 2020 and 2021, respectively.


MAGELLAN HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Six Months Ended

June 30,

2020

2021

Cash flows from operating activities:

    

  

  

Net income

$

101,755

$

27,161

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization

57,951

43,942

Special charges and other

8,309

6,205

Gain on sale of MCC

(8,000)

Non-cash interest expense

941

710

Non-cash stock compensation expense

13,015

13,410

Non-cash income tax (benefit) provision

(29,443)

12,699

Non-cash accretion on investments

907

1,603

Changes in assets and liabilities, net of effects from acquisitions of businesses:

Accounts receivable, net

(24,535)

(75,506)

Pharmaceutical inventory

8,268

4,545

Other assets

(38,322)

(78,329)

Accounts payable and accrued liabilities

62,970

(151,549)

Medical claims payable and other medical liabilities

10,510

47,062

Tax contingencies

1,343

1,339

Deferred credits and other long-term liabilities

(2,537)

9,635

Other

(289)

2,388

Net cash provided by (used in) operating activities

170,843

(142,685)

Net cash provided by operating activities from discontinued operations

178,326

Net cash used in operating activities from continuing operations

(7,483)

(142,685)

Cash flows from investing activities:

Capital expenditures

(38,305)

(35,105)

Acquisitions and investments in businesses, net of cash acquired

(369)

(2,372)

Purchases of investments

(417,688)

(680,347)

Proceeds from maturities and sales of investments

288,137

493,711

Net cash used in investing activities

(168,225)

(224,113)

Net cash used in investing activities from discontinued operations

(156,800)

Net cash used in investing activities from continuing operations

(11,425)

(224,113)

Cash flows from financing activities:

Proceeds from borrowings on revolving line of credit

80,000

Proceeds from exercise of stock options

29,825

14,271

Payments on debt, finance lease and deferred financing obligations

(40,264)

(112,238)

Other

(1,136)

(1,178)

Net cash provided by (used in) financing activities

68,425

(99,145)

Net cash provided by financing activities from discontinued operations

4,850

Net cash provided by (used in) financing activities from continuing operations

63,575

(99,145)

Net increase (decrease) in cash and cash equivalents from continuing operations

44,667

(465,943)

Cash and cash equivalents at beginning of period

115,752

1,144,450

Cash and cash equivalents at end of period

$

160,419

$

678,507


MAGELLAN HEALTH, INC. AND SUBSIDIARIES

CONTINUING OPERATIONS RESULTS BY BUSINESS SEGMENT

(Unaudited)

(In thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2021

2020

2021

Healthcare

    

  

  

    

  

  

Managed care and other revenue

$

481,021

$

585,139

$

969,927

$

1,118,149

Cost of care

(321,831)

(430,735)

(670,939)

(809,926)

Direct service costs and other

(100,450)

(126,741)

(206,386)

(241,734)

Stock compensation expense (1)

2,102

1,935

3,863

4,454

Healthcare segment profit

60,842

29,598

96,465

70,943

Pharmacy Management

Managed care and other revenue

67,867

91,046

132,302

184,273

PBM revenue

556,195

548,335

1,129,973

1,087,307

Cost of goods sold

(532,685)

(523,933)

(1,070,259)

(1,019,526)

Direct service costs and other

(80,082)

(104,556)

(161,948)

(209,152)

Legal matter settlement

9,000

Stock compensation expense (1)

1,939

2,346

4,046

5,042

Pharmacy Management segment profit

13,234

13,238

34,114

56,944

Corporate and Elimination (2)

Managed care and other revenue

(177)

(144)

(350)

(305)

PBM revenue

(4,831)

(3,608)

(9,398)

(7,007)

Cost of goods sold

4,618

3,419

8,951

6,642

Direct service costs and other

(19,224)

(12,276)

(35,663)

(23,708)

Stock compensation expense (1)

2,551

2,072

4,480

3,914

Corporate and Elimination

(17,063)

(10,537)

(31,980)

(20,464)

Consolidated

Managed care and other revenue

548,711

676,041

1,101,879

1,302,117

PBM revenue

551,364

544,727

1,120,575

1,080,300

Cost of care

(321,831)

(430,735)

(670,939)

(809,926)

Cost of goods sold

(528,067)

(520,514)

(1,061,308)

(1,012,884)

Direct service costs and other

(199,756)

(243,573)

(403,997)

(474,594)

Legal matter settlement

9,000

Stock compensation expense (1)

6,592

6,353

12,389

13,410

Segment profit from continuing operations

$

57,013

$

32,299

$

98,599

$

107,423

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

Income (loss) from continuing operations before income taxes

$

10,780

$

(7,659)

$

15,472

$

31,755

Stock compensation expense

6,592

6,353

12,389

13,410

Depreciation and amortization

23,888

22,525

47,246

43,942

Interest expense

7,995

6,234

16,953

12,660

Interest and other income

(551)

(208)

(1,770)

(549)

Special charges and other

8,309

5,054

8,309

6,205

Segment profit from continuing operations

$

57,013

$

32,299

$

98,599

$

107,423

(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.


MAGELLAN HEALTH, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2021

2020

2021

Net income (loss) from continuing operations

    

$

47,108

  

  

$

(6,463)

    

$

46,038

  

  

$

22,046

Adjustments

Stock compensation expense

249

495

Amortization of acquired intangibles

9,573

7,587

19,259

15,646

Special charges and other

8,309

5,054

8,309

6,205

Tax impact

(4,808)

(3,396)

(7,413)

(5,888)

Nonrecurring tax benefit - divestiture

(38,907)

(38,907)

Adjusted net income from continuing operations

$

21,275

$

3,031

$

27,286

$

38,504

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

$

1.86

$

(0.25)

$

1.84

$

0.83

Adjustments

Stock compensation expense

0.01

0.02

Amortization of acquired intangibles

0.38

0.29

0.77

0.59

Special charges and other

0.33

0.19

0.33

0.23

Tax impact

(0.19)

(0.13)

(0.30)

(0.22)

Nonrecurring tax benefit - divestiture

(1.54)

(1.55)

Adjusted earnings per share

$

0.84

$

0.11

$

1.09

$

1.45

(MGLN-GEN)

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