Page 1 of 8 N E W S R E L E A S E Investors: Brett Manderfeld John Penshorn Media: Don Nathan Tyler Mason Vice President Senior Vice President Senior Vice President Vice President 952-936-7216 952-936-7214 952-936-1885 424-333-6122 (For Immediate Release) UNITEDHEALTH GROUP REPORTS THIRD QUARTER RESULTS • Third Quarter Revenues of $32.8 Billion Grew 7% Year-Over-Year • Optum Revenues of $12 Billion Grew 21% and Operating Earnings Grew 27% Year-Over-Year • UnitedHealthcare Operating Earnings of $2 Billion Grew 5% Year-Over-Year • Cash Flows from Operations of $3.2 Billion were Double the Level of Net Income in the Quarter • Third Quarter Net Earnings Grew 7% Year-Over-Year to $1.63 Per Share NEW YORK, N.Y. (October 16, 2014) – UnitedHealth Group (NYSE: UNH) today reported third quarter results that included year-over-year growth in revenues, revenue backlog, earnings from operations, and net earnings per share. “Our continued focus on fundamental execution in service to our customers is strengthening performance and momentum across our enterprise, and we are committed to accelerating that effort,” said Stephen J. Hemsley, president and chief executive officer of UnitedHealth Group. Reflecting the strong third quarter results, UnitedHealth Group expects 2014 revenues of approximately $130 billion and net earnings in a range of $5.60 to $5.65 per share, up from the previous estimate of $5.50 to $5.60 per share.
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Page 1 of 8
N E W S R E L E A S E
Investors: Brett Manderfeld John Penshorn Media: Don Nathan Tyler Mason Vice President Senior Vice President Senior Vice President Vice President 952-936-7216 952-936-7214 952-936-1885 424-333-6122
(For Immediate Release)
UNITEDHEALTH GROUP REPORTS THIRD QUARTER RESULTS
• Third Quarter Revenues of $32.8 Billion Grew 7% Year-Over-Year
• Optum Revenues of $12 Billion Grew 21% and Operating Earnings Grew 27% Year-Over-Year
• UnitedHealthcare Operating Earnings of $2 Billion Grew 5% Year-Over-Year
• Cash Flows from Operations of $3.2 Billion were Double the Level of Net Income in the Quarter
• Third Quarter Net Earnings Grew 7% Year-Over-Year to $1.63 Per Share
NEW YORK, N.Y. (October 16, 2014) – UnitedHealth Group (NYSE: UNH) today reported third quarter results
that included year-over-year growth in revenues, revenue backlog, earnings from operations, and net earnings
per share.
“Our continued focus on fundamental execution in service to our customers is strengthening performance and
momentum across our enterprise, and we are committed to accelerating that effort,” said Stephen J. Hemsley,
president and chief executive officer of UnitedHealth Group.
Reflecting the strong third quarter results, UnitedHealth Group expects 2014 revenues of approximately
$130 billion and net earnings in a range of $5.60 to $5.65 per share, up from the previous estimate of
AssetsCash and short-term investments ............................................. $ 9,212 $ 9,213Accounts receivable, net ........................................................... 3,826 3,052Other current assets ................................................................. 9,925 8,115
Total current assets .......................................................... 22,963 20,380Long-term investments ............................................................. 19,346 19,605Other long-term assets ............................................................. 43,117 41,897
Total assets ......................................................................... $ 85,426 $ 81,882Liabilities and Shareholders' EquityMedical costs payable .............................................................. $ 12,328 $ 11,575Commercial paper and current maturities of long-term debt ..... 2,925 1,969Other current liabilities .............................................................. 15,877 14,337
Total current liabilities ....................................................... 31,130 27,881Long-term debt, less current maturities ..................................... 14,592 14,891Other long-term liabilities .......................................................... 5,714 5,786Redeemable noncontrolling interests ........................................ 1,386 1,175Shareholders' equity ................................................................. 32,604 32,149
Total liabilities and shareholders' equity .............................. $ 85,426 $ 81,882
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UNITEDHEALTH GROUPCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Depreciation and amortization .................................................................. 1,097 1,025Deferred income taxes and other ............................................................. (360) (25)Share-based compensation ...................................................................... 269 255
Net changes in operating assets and liabilities ............................................ 507 422Cash flows from operating activities ...................................................... 5,622 5,923
Investing ActivitiesSales and maturities of investments, net of (purchases) ............................. 253 (1,148)Purchases of property, equipment and capitalized software, net ................. (1,121) (840)Cash paid for acquisitions, net .................................................................... (851) (330)Other, net .................................................................................................... (139) 45
Cash flows used for investing activities ................................................. (1,858) (2,273)Financing ActivitiesAcquisition of noncontrolling interest shares ................................................ — (1,474)Common stock repurchases ........................................................................ (3,024) (2,348)Dividends paid ............................................................................................. (1,004) (777)Net change in commercial paper and long-term debt .................................. 542 146Other, net .................................................................................................... (324) 770
Cash flows used for financing activities ................................................. (3,810) (3,683)Effect of exchange rate changes on cash and cash equivalents ................. 3 (87)Decrease in cash and cash equivalents ...................................................... (43) (120)Cash and cash equivalents, beginning of period ......................................... 7,276 8,406Cash and cash equivalents, end of period ................................................... $ 7,233 $ 8,286
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UNITEDHEALTH GROUPSUPPLEMENTAL FINANCIAL INFORMATION
(a) Earnings from operations for Optum for the three and nine months ended September 30, 2014 included $314 and $749 for OptumHealth; $225 and $635 for OptumInsight; and $326 and $859 for OptumRx, respectively. Earnings from operations for Optum for the three and nine months ended September 30, 2013 included $271 and $707 for OptumHealth; $212 and $650 for OptumInsight; and $198 and $457 for OptumRx, respectively.
2013Commercial risk-based ......................................... 7,545 7,610 8,185 8,130Commercial fee-based ......................................... 18,300 18,330 19,055 19,060Commercial fee-based TRICARE......................... 2,910 2,910 2,920 2,930 Total Commercial........................................... 28,755 28,850 30,160 30,120Medicare Advantage ............................................. 2,995 2,985 2,990 2,970Medicaid ............................................................... 4,920 4,670 4,035 3,955Medicare Supplement (Standardized) .................. 3,715 3,665 3,455 3,415 Total Public and Senior ................................. 11,630 11,320 10,480 10,340International .......................................................... 4,550 4,765 4,805 4,815 Total UnitedHealthcare - Medical ................. 44,935 44,935 45,445 45,275Supplemental Data Medicare Part D stand-alone ........................... 5,155 5,150 4,950 4,895
Note: UnitedHealth Group served 88.5 million individuals across all businesses at September 30, 2014, 88.1 million at June 30, 2014, 88.2 million at December 31, 2013, and 89.7 million at September 30, 2013.