moh-20230930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number: 001-31719

MOLINA HEALTHCARE, INC.

(Exact name of registrant as specified in its charter)


Delaware		13-4204626
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

200 Oceangate, Suite 100
Long Beach,	California	90802
(Address of principal executive offices)		(Zip Code)

(562) 435-3666

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value	MOH	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the issuer’s Common Stock, $0.001 par value, outstanding as of October 20, 2023, was approximately 58,300,000.

Table of Contents

MOLINA HEALTHCARE, INC. FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023

TABLE OF CONTENTS


ITEM NUMBER		Page

PART I

1.	Financial Statements	3

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

3.	Quantitative and Qualitative Disclosures About Market Risk	35

4.	Controls and Procedures	35

PART II

1.	Legal Proceedings	35

1A.	Risk Factors	35

2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

3.	Defaults Upon Senior Securities	Not Applicable.

4.	Mine Safety Disclosures	Not Applicable.

5.	Other Information	36

6.	Exhibits	37

	Signatures	38

Table of Contents

CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

	(Dollars in millions, except per-share amounts) (Unaudited)
Revenue:
Premium revenue	$	8,240	$	7,636	$	24,167	$	22,966
Premium tax revenue	176		223		517		646

Investment income	112		49		280		82
Other revenue	20		19		60		57
Total revenue	8,548		7,927		25,024		23,751
Operating expenses:
Medical care costs	7,306		6,748		21,215		20,183
General and administrative expenses	608		560		1,817		1,682
Premium tax expenses	176		223		517		646

Depreciation and amortization	42		45		128		129
Other	57		16		90		43
Total operating expenses	8,189		7,592		23,767		22,683
Operating income	359		335		1,257		1,068
Other expenses, net:
Interest expense	27		28		82		83

Total other expenses, net	27		28		82		83
Income before income tax expense	332		307		1,175		985
Income tax expense	87		77		300		249
Net income	$	245	$	230	$	875	$	736

Net income per share - Basic	$	4.24	$	4.00	$	15.18	$	12.74
Net income per share - Diluted	$	4.21	$	3.95	$	15.08	$	12.58

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022

	(In millions) (Unaudited)
Net income	$	245	$	230	$	875	$	736
Other comprehensive loss:
Unrealized investment loss	(24)		(75)		(7)		(237)
Less: effect of income taxes	(5)		(18)		(2)		(57)
Other comprehensive loss, net of tax	(19)		(57)		(5)		(180)
Comprehensive income	$	226	$	173	$	870	$	556

See accompanying notes.

Molina Healthcare, Inc. September 30, 2023 Form 10-Q | 3

Table of Contents

CONSOLIDATED BALANCE SHEETS


	September 30, 2023		December 31, 2022

	(Dollars in millions, except per-share amounts)
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	5,565	$	4,006
Investments	4,111		3,499
Receivables	2,460		2,302
Prepaid expenses and other current assets	332		277
Total current assets	12,468		10,084
Property, equipment, and capitalized software, net	290		259
Goodwill, and intangible assets, net	1,471		1,390
Restricted investments	261		238
Deferred income taxes	255		220
Other assets	125		123
Total assets	$	14,870	$	12,314

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	4,235	$	3,528
Amounts due government agencies	2,476		2,079
Accounts payable, accrued liabilities and other	1,090		889
Deferred revenue	691		359
Total current liabilities	8,492		6,855
Long-term debt	2,179		2,176
Finance lease liabilities	199		215
Other long-term liabilities	121		104
Total liabilities	10,991		9,350
Stockholders’ equity:
Common stock, $0.001 par value, 150 million shares authorized; outstanding: 58 million shares at September 30, 2023 and December 31, 2022	—		—
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding	—		—
Additional paid-in capital	373		328
Accumulated other comprehensive loss	(165)		(160)
Retained earnings	3,671		2,796
Total stockholders’ equity	3,879		2,964
Total liabilities and stockholders’ equity	$	14,870	$	12,314

See accompanying notes.

Molina Healthcare, Inc. September 30, 2023 Form 10-Q | 4

Table of Contents

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

SEC Form 10-Q filed by Molina Healthcare Inc