Humana Inc. (NYSE:HUM) Q1 2018 Earnings Conference Call Transcript

May 02, 2018 • 09:00 am ET

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Humana Inc. (NYSE:HUM) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Andrew and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Humana, Inc. First Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

(Operator Instructions) Thank you.

Amy Smith, Vice President of Investor Relations, you may begin your conference.

Executive
Amy K. Smith

Thank you, and good morning. In a moment, Bruce Broussard, Humana's President and Chief Executive Officer; and Brian Kane, Chief Financial Officer, will discuss our first quarter 2018 results and our financial outlook for the full year. Following these prepared remarks, we will open up the lines for a question-and-answer session with industry analysts. We encourage the investing public and media to listen to both management's prepared remarks and the related Q&A with analysts. This call is being recorded for replay purposes. That replay will be available on the Investor Relations page of Humana's website, Humana.com, later today.

Before we begin our discussion, I need to advise call participants of our cautionary statement. Certain of the matters discussed in this conference call are forward-looking and involve a number of risks and uncertainties. Actual results could differ materially. Investors are advised to read the detailed risk factors discussed in our first quarter 2018 earnings press release, as well as in our filings with the Securities and Exchange Commission. Today's press release, our historical financial news releases and our filings with the SEC are all also available on our Investor Relations site.

Call participants should note that today's discussion includes financial measures that are not in accordance with Generally Accepted Accounting Principles or GAAP. Management's explanation for the use of these non-GAAP measures, and reconciliations of GAAP to non-GAAP financial measures are included in today's press release.

Finally, any references to earnings per share or EPS made during this conference call refer to diluted earnings per common share. With that, I'll turn the call over to Bruce Broussard.

Executive
Bruce D. Broussard

Good morning and thank you for joining us. Today, we reported adjusted earnings per share of $3.36 for the first quarter of 2018 and raised our full year 2018 adjusted EPS guidance to $13.70 to $14.10. We continue to expect strong individual Medicare Advantage membership growth of 180,000 to 200,000 members for full year 2018, and all segments are performing well.

We are pleased that we continue to consistently deliver strong financial results, while significantly advancing our consumer-focused health strategy, demonstrating excellence in operational execution. We continue to be very active in building our primary care model. In March, we acquired the remaining 51% interest in MCCI and officially launched Conviva, bringing together our fully-owned and JV primary care assets in South Florida and Texas under one brand and one management team.

In addition, in April, we acquired Family Physicians Group, one of the largest value-based providers serving Medicare Advantage and managed Medicaid HMO patients in Greater Orlando with a footprint that includes 22 clinics. This