Triple-S Management (GTS) Reports Q4 EPS of $1.13, Revenues Beat; Offers FY21 EPS Revenue Outlook Above Consensus, Provides FY21 EPS Views

Triple-S Management (NYSE: GTS) reported Q4 EPS of $1.13, versus $0.00 reported last year. Revenue for the quarter came in at $999.02 million versus the consensus estimate of $893.64 million.

Fourth Quarter 2020 Consolidated Results and Other Highlights

• Net income of $26.2 million, or $1.13 per diluted share, versus net income of $13.2 million, or $0.55 per diluted share, in the prior-year period;
• Adjusted net income of $4.2 million, or $0.18 per diluted share, versus adjusted net income of $6.0 million, or $0.25 per diluted share, in the prior-year period;
• Operating revenues of $969.8 million, a 16.7% increase from the prior-year period, primarily reflecting higher Managed Care net premiums earned;
• Consolidated loss ratio of 86.2%, a 520 basis point increase from the fourth quarter of 2019, reflecting higher Managed Care utilization;
• Medical loss ratio (MLR) of 89.4%, 570 basis points higher than the same period last year;
• Consolidated operating loss of $3.9 million, compared with operating income of $8.7 million in the prior-year period.

Roberto Garcia-Rodriguez, President and Chief Executive Officer, commented: "During the fourth quarter, our enhanced Medicare Advantage and Medicaid offerings, along with our superior service and premier brand, enabled us to further increase our membership numbers and premiums. Our solid performance was due, in great part, to our team's outstanding efforts to provide critical support to our members, providers and communities throughout an extremely challenging year."

"In 2021 we will continue investing in informatics and clinical management capabilities that improve service and health outcomes for our members. As we implement our integrated healthcare-delivery agenda over the next four years, we will be firmly positioned to generate sustainable and profitable growth as the preferred healthcare services company in Puerto Rico."

GUIDANCE:

Triple-S Management sees FY2021 EPS of $2.95-$3.15. Triple-S Management sees FY2021 revenue of $3.98-4.02 billion, versus the consensus of $3.76 billion.

The Company is initiating the following full year 2021 guidance:

• Consolidated operating revenue is expected to be between $3.98 billion and $4.02 billion, which includes Managed Care premiums earned, net between $3.58 billion and $3.62 billion;
• Consolidated claims incurred ratio is expected to be between 83.0% and 84.0%, while Managed Care MLR is expected to be between 86.0% and 87.0%;
• Consolidated operating expense ratio is expected to be between 15.5% and 16.5%;
• The effective tax rate is expected to be between 29.0% and 31.0%; and
• Adjusted net income per diluted share is expected to be between $2.95 and $3.15. Adjusted net income per diluted share does not account for any potential share repurchase activity during 2021. The Company is assuming a weighted average diluted share count for full year 2021 of 23.6 million shares.

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

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