Successful acquisition also includes CAC Florida Medical Centers and PrescribIT Rx Pharmacy Company. Guidance for 2005 Earnings and Cash Flows Raised
LOUISVILLE, KY - Feb 16, 2005 - Humana Inc. (NYSE: HUM) today announced it has completed its acquisition of CarePlus Health Plans of Florida as well as its 10 CAC-Florida Medical Centers, and PrescribIT Rx pharmacy company in Miami-Dade County.
CarePlus provides Medicare Advantage HMO plans and benefits to approximately 50,000 Medicare eligibles in Miami-Dade, Broward and Palm Beach counties.
As previously disclosed, Humana anticipates the acquisition to be immediately accretive to earnings, adding earnings at an annual rate of approximately $0.15 to $0.18 per diluted share during the first 12 months, including the impact of integration costs incurred.
Given the February 16, 2005 closing date for the transaction, Humana is raising its guidance for 2005 diluted earnings per common share (EPS) by $0.15 to $2.20. Prior company 2005 EPS guidance was $2.05 and excluded any impact from the CarePlus transaction.
The company is also raising its guidance for first quarter 2005 EPS to a range of $ 0.61 to $0.63; 2005 consolidated revenues to approximately $14.5 billion; 2005 cash flows from operations to a range of $625 million to $675 million; and now forecasts its Medicare membership to be in the range of 470,000 to 485,000 by the end of 2005, inclusive of the CarePlus members.
“This is a great day for CarePlus and Humana members as we join two well-known and respected companies to offer a broad choice of Medicare health benefits to the growing South Florida Medicare market,” said Michael A. Seltzer, CEO of Humana’s Florida senior products. “CarePlus members will be pleased with Humana’s commitment to their service. Their 2005 benefits will stay intact as will their relationships with their current physicians and access to the medical facilities in the CarePlus network.”
Seltzer also reiterated that patients who utilize the 10 CAC-Florida Medical Centers and the PrescribIT Rx pharmacies will continue to receive exceptional service.
“As we move through 2005, we will be adopting the best practices of both entities while continuing to provide the same level of access to health care that members enjoy today,” Seltzer added.
Cautionary Statement
This news release contains forward-looking statements. The forward-looking statements herein are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in the following documents, as filed by Humana with the Securities and Exchange Commission:
Form 10-K for the year ended December 31, 2003
Form 10-Qs for the quarters ended March 31, 2004, June 30, 2004 and September 30, 2004.