moh-20240630

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 June 30, 2024


☐			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 July 19, 2024, was approximately 58.6 million.

Table of Contents

MOLINA HEALTHCARE, INC. FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024

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	36

1A.	Risk Factors	36

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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

	(In millions, except per-share amounts) (Unaudited)
Revenue:
Premium revenue	$	9,446	$	8,042	$	18,950	$	15,927
Premium tax revenue	298		169		595		341

Investment income	115		97		223		168
Other revenue	21		19		43		40
Total revenue	9,880		8,327		19,811		16,476
Operating expenses:
Medical care costs	8,368		7,038		16,782		13,909
General and administrative expenses	691		618		1,402		1,209
Premium tax expenses	298		169		595		341

Depreciation and amortization	46		42		91		86
Other	43		17		81		33
Total operating expenses	9,446		7,884		18,951		15,578
Operating income	434		443		860		898

Interest expense	28		27		55		55


Income before income tax expense	406		416		805		843
Income tax expense	105		107		203		213
Net income	$	301	$	309	$	602	$	630

Net income per share - Basic	$	5.18	$	5.37	$	10.38	$	10.95
Net income per share - Diluted	$	5.17	$	5.35	$	10.33	$	10.87

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

	(In millions) (Unaudited)
Net income	$	301	$	309	$	602	$	630
Other comprehensive (loss) gain:
Unrealized investment gain (loss)	1		(29)		(4)		17
Less: effect of income taxes	1		(8)		(1)		3
Other comprehensive (loss) gain, net of tax	—		(21)		(3)		14
Comprehensive income	$	301	$	288	$	599	$	644

See accompanying notes.

Molina Healthcare, Inc. June 30, 2024 Form 10-Q | 3

Table of Contents

CONSOLIDATED BALANCE SHEETS


	June 30, 2024		December 31, 2023

	(Dollars in millions, except per-share amounts)
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,354	$	4,848
Investments	4,347		4,259
Receivables	3,231		3,104
Prepaid expenses and other current assets	399		331
Total current assets	12,331		12,542
Property, equipment, and capitalized software, net	305		270
Goodwill, and intangible assets, net	1,913		1,449
Restricted investments	268		261
Deferred income taxes, net	232		227
Other assets	136		143
Total assets	$	15,185	$	14,892

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	4,577	$	4,204
Amounts due government agencies	2,273		2,294
Accounts payable, accrued liabilities and other	973		1,252
Deferred revenue	13		418
Total current liabilities	7,836		8,168
Long-term debt	2,181		2,180
Finance lease liabilities	203		205
Other long-term liabilities	122		124
Total liabilities	10,342		10,677
Stockholders’ equity:
Common stock, $0.001 par value, 150 million shares authorized; outstanding: 59 million shares at June 30, 2024 and 58 million at December 31, 2023	—		—
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding	—		—
Additional paid-in capital	439		410
Accumulated other comprehensive loss	(85)		(82)
Retained earnings	4,489		3,887
Total stockholders’ equity	4,843		4,215
Total liabilities and stockholders’ equity	$	15,185	$	14,892

See accompanying notes.

Molina Healthcare, Inc. June 30, 2024 Form 10-Q | 4

Table of Contents

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total
	Outstanding	Amount

	(In millions)
	(Unaudited)
Balance at December 31, 2023	58	$	—	$	410	$	(82)	$	3,887	$	4,215
Net income	—	—		—		—		301		301









Other comprehensive loss, net	—	—		—		(3)		—		(3)
Share-based compensation	1	—		(20)		—		—		(20)
Balance at March 31, 2024	59	—		390		(85)		4,188		4,493
Net income	—	—		—		—		301		301










Share-based compensation	—	—

SEC Form 10-Q filed by Molina Healthcare Inc