Triple-S Management (GTS) Reports Q2 EPS of $1.76, Revenues Beat; Raises FY20 EPS Outlook

Triple-S Management (NYSE: GTS) reported Q2 EPS of $1.76. Revenue for the quarter came in at $904.38 million versus the consensus estimate of $887.58 million.

Second Quarter 2020 Consolidated Results and Other Highlights

• Net income of $43.6 million, or $1.87 per diluted share, versus net income of $30.9 million, or $1.35 per diluted share, in the prior-year period;
• Adjusted net income of $40.9 million, or $1.76 per diluted share, versus adjusted net income of $25.6 million, or $1.12 per diluted share, in the prior-year period;
• Operating revenues of $875.5 million, a 0.4% decrease from the prior-year period, primarily reflecting lower Managed Care net premiums earned;
• Consolidated loss ratio of 76.1%, a 610 basis-point decline from the second quarter of 2019, reflecting lower Managed Care utilization of services during the quarter as the result of the government-enforced lockdown related to the COVID-19 pandemic;
• Medical loss ratio ("MLR") declined 510 basis points to 79.4%;
• Consolidated operating income was $43.7 million, compared to consolidated operating income of $38.2 million in the prior-year period;
• During the second quarter of 2020, the Company repurchased 375,373 shares at an aggregate cost of approximately $6.0 million, completing its share repurchase program.

"We are proud of our team's tireless efforts to provide our customers, providers and communities with quality health care services and support as we all navigate through the COVID-19 pandemic," said Roberto Garcia-Rodriguez, President and Chief Executive Officer. "Through the expansion of virtual health care consultations and home delivery of prescription drugs, food delivery to our elderly population and protective equipment to providers, as well as our focused efforts to enable the continuity of care for our most vulnerable members, we are committed to ensuring the safety and well-being of all our stakeholders in this challenging environment."

"Our second quarter results reflected lower utilization caused by the stay-at-home measures instituted by the government to combat COVID-19," added Mr. Garcia-Rodriguez. "Utilization has begun normalizing but will depend on the rate of progress containing the coronavirus and re-opening the economy. While we anticipate demand for deferred procedures to resume during the second half of 2020, we continue to be measured and thoughtful about our business, and our focus squarely remains on ensuring current and prospective members receive quality service and a superior health care experience."

GUIDANCE:

Triple-S Management sees FY2020 EPS of $2.80-$3.00.

The Company is raising its full year 2020 guidance for adjusted net income per diluted share to be between $2.80 and $3.00, compared to its previous outlook for adjusted net income per diluted share between $2.60 and $2.80. The Company is currently assuming a weighted average diluted share count for full year 2020 of 23.4 million shares and no further share repurchases.

For earnings history and earnings-related data on Triple-S Management (GTS) click here.

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