Magellan Health, Inc. (NASDAQ:MGLN) Q3 2017 Earnings Conference Call - Final Transcript
Nov 01, 2017 • 10:00 am ET
Welcome, and thank you for standing by for the third quarter 2017 earnings call. At this time, all participants are in a listen-only mode. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.
Now I will turn the meeting over to Joe Bogdan. Please begin.
Good morning, and thank you for joining Magellan Health's Third Quarter 2017 Earnings Call. With me today are Magellan's Chairman and CEO, Barry Smith; and our CFO, Jon Rubin. The press release announcing our third quarter earnings was distributed this morning. A replay of this call will be available shortly after the conclusion of the call through December 1. The numbers to access the replay are in the earnings release. For those who listen to the rebroadcast of this presentation, we remind you that the remarks made herein are as of today, Wednesday, November 1, 2017, and have not been updated subsequent to the initial earnings call.
(Forward-Looking Cautionary Statements)
In addition, please note that Magellan uses certain non-GAAP financial measures when describing our financial results. Specifically, we refer to segment profit, adjusted net income and adjusted EPS, which are defined in our SEC filings and in today's press release. Segment profit is equal to net revenues less the sum of cost of care, cost of goods sold, direct service costs and other operating expenses and includes income from unconsolidated subsidiaries, but excludes segment profit from noncontrolling 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 EPS reflect certain adjustments made for acquisitions completed after January 1, 2013, to exclude noncash 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. Please refer to the tables included with this morning's press release, which is available on our website for a reconciliation of GAAP financial measures to the corresponding non-GAAP measures.
I will now turn the call over to our Chairman and CEO, Barry Smith.
Thank you, Joe. Good morning, and thank you all for joining us today. Before we begin, I'd like to acknowledge the unfortunate series of events across our country that have transpired since our last call. Several hurricanes, wildfires, and the mass shooting in Las Vegas and yesterday's tragic events in New York, have once again brought behavioral health issues and the emotional toll of such events to the forefront of our national conversation. I am so proud of the way our company responded in the face of such tragedy. Many of our associates donated their time and money to organizations that are helping victims of these incidents. In addition, we offered free confidential 24-hour counseling and referrals to local community resources, leveraging our unique expertise in behavioral health management. In the face of such devastation, it is reassuring