Welcome, and thank you for standing by for the Second Quarter 2018 Earnings Call. At this time all participants are in 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 go ahead.
Good morning, and thank you for joining Magellan Health's Second Quarter 2018 Earnings Call. With me today are Magellan's Chairman and CEO, Barry Smith; and our CFO, Jon Rubin.
The press release announcing our second quarter earnings was distributed this morning. A replay of this call will be available shortly after the conclusion of the call through August 26. 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, Friday, July 27, 2018, 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 non-controlling interests held by other parties, stock compensation expense, special charges or benefits as well as changes in 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 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. Please refer to the tables included with this morning's press release, which is available on our website for a reconciliation of these non-GAAP financial measures to their corresponding GAAP measures.
I will now turn the call over to our Chairman and CEO, Barry Smith. Barry?
Good morning, and thank you all for joining us today. This morning, our comments will focus on a few key areas. First, I'll provide a summary of the quarter and our revised guidance, then I'll give you an update on key areas of our health care business, followed by some
business, including a summary of our response to the RFI from HHS on the blueprint to lower prescription drug prices. Finally, Jon will give[ph] additional color on the second quarter results and our revised full year guidance.
For the second quarter of 2018, we reported net revenue of $1.8 billion, net income of $13.6 million and EPS of $0.53 per share. Our adjusted net income was $23.3 million or $0.92 per share. And we received segment profit of $68 million.
For the full year, we[ph]
SVP of Corporate Finance
Chairman & Chief Executive Officer
Chief Financial Officer
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