moh-20230630

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, 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 July 21, 2023, was approximately 58,300,000.

Table of Contents

MOLINA HEALTHCARE, INC. FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 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	20

3.	Quantitative and Qualitative Disclosures About Market Risk	32

4.	Controls and Procedures	32

PART II

1.	Legal Proceedings	32

1A.	Risk Factors	32

2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

3.	Defaults Upon Senior Securities	Not Applicable.

4.	Mine Safety Disclosures	Not Applicable.

5.	Other Information	33

6.	Exhibits	34

	Signatures	35

Table of Contents

CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022

	(Dollars in millions, except per-share amounts) (Unaudited)
Revenue:
Premium revenue	$	8,042	$	7,799	$	15,927	$	15,330
Premium tax revenue	169		215		341		423

Investment income	97		22		168		33
Other revenue	19		18		40		38
Total revenue	8,327		8,054		16,476		15,824
Operating expenses:
Medical care costs	7,038		6,872		13,909		13,435
General and administrative expenses	618		551		1,209		1,122
Premium tax expenses	169		215		341		423

Depreciation and amortization	42		44		86		84
Other	17		11		33		27
Total operating expenses	7,884		7,693		15,578		15,091
Operating income	443		361		898		733
Other expenses, net:
Interest expense	27		27		55		55

Total other expenses, net	27		27		55		55
Income before income tax expense	416		334		843		678
Income tax expense	107		86		213		172
Net income	$	309	$	248	$	630	$	506

Net income per share - Basic	$	5.37	$	4.29	$	10.95	$	8.74
Net income per share - Diluted	$	5.35	$	4.25	$	10.87	$	8.63

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022

	(In millions) (Unaudited)
Net income	$	309	$	248	$	630	$	506
Other comprehensive (loss) gain:
Unrealized investment (loss) gain	(29)		(62)		17		(162)
Less: effect of income taxes	(8)		(15)		3		(39)
Other comprehensive (loss) gain, net of tax	(21)		(47)		14		(123)
Comprehensive income	$	288	$	201	$	644	$	383

See accompanying notes.

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

Table of Contents

CONSOLIDATED BALANCE SHEETS


	June 30, 2023		December 31, 2022

	(Dollars in millions, except per-share amounts)
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,910	$	4,006
Investments	3,886		3,499
Receivables	2,385		2,302
Prepaid expenses and other current assets	260		277
Total current assets	11,441		10,084
Property, equipment, and capitalized software, net	285		259
Goodwill, and intangible assets, net	1,348		1,390
Restricted investments	249		238
Deferred income taxes	220		220
Other assets	118		123
Total assets	$	13,661	$	12,314

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Medical claims and benefits payable	$	3,677	$	3,528
Amounts due government agencies	2,589		2,079
Accounts payable, accrued liabilities and other	857		889
Deferred revenue	414		359
Total current liabilities	7,537		6,855
Long-term debt	2,178		2,176
Finance lease liabilities	203		215
Other long-term liabilities	122		104
Total liabilities	10,040		9,350
Stockholders’ equity:
Common stock, $0.001 par value, 150 million shares authorized; outstanding: 58 million shares at June 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	341		328
Accumulated other comprehensive loss	(146)		(160)
Retained earnings	3,426		2,796
Total stockholders’ equity	3,621		2,964
Total liabilities and stockholders’ equity	$	13,661	$	12,314

See accompanying notes.

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

Table of Contents

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY


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

	(In millions)
	(Unaudited)
Balance at December 31, 2022	58	$	—	$	328	$	(160)	$	2,796	$	2,964
Net income	—	—		—		—		321		321









Other comprehensive income, net	—	—		—		35		—		35
Share-based compensation	—	—		(32)		—		—		(32)
Balance at March 31, 2023	58	—		296		(125)		3,117		3,288
Net income	—	—		—		—		309		309









Other comprehensive loss, net	—	—		—		(21)		—		(21)
Share-based compensation	—	—		45		—		—		45
Balance at June 30, 2023	58	$	—	$	341	$	(146)	$	3,426	$	3,621


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

	(In millions)
	(Unaudited)
Balance at December 31, 2021	58	$	—	$	236	$	(5)	$	2,399	$	2,630
Net income	—	—		—		—		258		258









Other comprehensive loss, net	—	—		—		(76)		—		(76)

SEC Form 10-Q filed by Molina Healthcare Inc