Cigna Corporation 8-K March 8, 2021 6:15 AM
|Point 7.01||Disclosure of FD regulations.|
Affirmation of 2021 outlook and investor day information
As previously disclosed, on March 8, 2021, Cigna Corporation (“Cigna” or the “Company”) will host its Virtual Investor Day starting at approximately 8:30 am Eastern Time. During Investor Day, as well as in meetings with investors and analysts in the coming weeks, Cigna officials plan to reaffirm expected 2021 consolidated adjusted revenue of at least $ 165 billion, with projected consolidated adjusted operating profit for full 2021 of at least $ 6.95 billion, projected consolidated adjusted operating income for the year 2021 of at least $ 20.00 per share and the expected weighted average outstanding shares for 2021 of between $ 346 million and $ 349 million. This outlook includes approximately $ 1.25 per share of negative net impacts of COVID-19, as well as the impact of future share buybacks and dividends scheduled for 2021. The outlook also includes the expected impacts of the agreement to acquisition of MDLive, Inc., as announced on February 26, 2021.
Cigna previously discussed its outlook for full year 2021 in its February 4, 2021 press release and investor presentation and on the corresponding investor conference call. The press release, presentation and conference call transcript are available on the Investor Relations page of Cigna’s website at www.cigna.com. The forward-looking statements contained in these documents and the associated appeal speak only as of the date on which they were made.
Virtual Investor Day is expected to begin around 8:30 a.m. Eastern Time and end at 11:30 a.m. Eastern Time. Investors and analysts are invited to listen to the presentation free of charge over the Internet via webcast by visiting the Investor Relations page of Cigna’s website located at www.cigna.com. The Investor Relations section of the Company’s website also contains materials relating to Investor Day presentations, including definitions of certain parameters not determined in accordance with accounting principles generally accepted in the United States of America (“GAAP ”) And reconciliations of certain non-GAAP measures to the most directly comparable GAAP measures.
Definitions and financial information
Adjusted income is defined as total income excluding net investment results from investments in associates and special items. Cigna excludes these items because management believes they are not indicative of the underlying past or future performance of the company. Adjusted operating income is defined as shareholders’ net income excluding the following adjustments: net income from investments made, amortization of intangible assets acquired and special items. Adjusted operating income is a measure of profitability used by Cigna management as it presents the underlying operating results of Cigna’s businesses and allows for the analysis of trends in underlying revenues, expenses and net income. shareholders. These consolidated measures are not determined in accordance with GAAP and should not be considered a substitute for the most directly comparable GAAP measure, total income and net income of shareholders, respectively. Management is unable to provide a reconciliation to total revenues or net income (loss) of shareholders on a prospective basis because we are unable to predict certain elements thereof, including ( i) future realized net investment results and (ii) future special items. These elements are inherently uncertain and depend on a variety of factors, many of which are beyond our control. As such, any associated estimate and its impact on total revenues and shareholders’ net income could vary significantly.
Cigna currently intends to pay regular quarterly dividends, with future declarations subject to the approval of its board of directors and the decision of the board that the declaration of dividends remains in the best interests of Cigna and its associates. shareholders. The decision whether or not to pay future dividends and the amount of such dividends will be based on the financial condition of the Company, results of operations, cash flow, capital needs, requirements of applicable law and any other factor that the board of directors may deem relevant. .
The timing and actual number of Shares redeemed will depend on a variety of factors, including price, general business and market conditions and other uses of capital. The share repurchase program may be effected through open market purchases in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including through rule 10b5 trading plans -1 or privately negotiated transactions. The program can be suspended or interrupted at any time.
Such information will not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as as amended, or the Foreign Exchange Act, whether made before or after the date of this report, except as expressly indicated by specific reference in such filing.
CAUTION FOR THE PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES DISPUTES REFORM ACT, 1995
This report on Form 8-K (the “Report”) and oral statements made about information in this report may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements are based on Cigna’s current expectations and projections regarding future trends, events and uncertainties. These statements are not historical facts. Forward-looking statements may include, among others, statements regarding our forecast of adjusted operating income for 2021 on a consolidated and per share basis, the forecast of projected adjusted income for 2021 and the projected weighted average shares outstanding included in point 7.01 hereof. report; as well as statements regarding future financial or operational performance, including our ability to provide affordable, predictable and straightforward solutions to our customers and customers, including in light of the challenges presented by the COVID-19 pandemic; future growth, business strategy, strategic or operational initiatives; economic, regulatory or competitive environments, particularly with regard to the pace and magnitude of changes in these areas; plans for financing or deploying capital and the amounts available for future deployment; our growth prospects in the years to come; strategic transactions, including the impending acquisition of MDLive, Inc .; and other statements regarding future beliefs, expectations, plans, intentions, liquidity, cash flows, financial condition or performance of Cigna. You can identify forward-looking statements by using words such as “believe”, “expect”, “plan”, “intend”, “anticipate”, “estimate”, “predict”, “potential”, ” may “,” should “,” will “or other words or phrases with similar meanings, although not all forward-looking statements contain such terms.
Forward-looking statements are subject to risks and uncertainties, known and unknown, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to achieve our strategic and operational initiatives; our ability to adapt to changes in a changing and rapidly changing industry; the magnitude, scope and duration of the COVID-19 pandemic and its potential impact on our business, results of operations, cash flow or financial condition, our ability to compete effectively, to differentiate our products and services from those of our competitors and to maintain or increase the market share; price competition and other pressures that could reduce our margins or result in premiums insufficient to cover the cost of services provided to our customers; the possibility that actual claims will exceed our estimates of expected medical claims; our ability to develop and maintain satisfactory relationships with physicians, hospitals, other health service providers and with producers and consultants; our ability to maintain relationships with one or more key pharmaceutical manufacturers or if payments made or discounts granted decline; changes in the pharmacy supplier market or pharmacy networks; changes in drug prices or industry benchmarks; political, legal, operational, regulatory, economic and other risks that could affect our multinational operations; risks associated with strategic transactions and the realization of expected benefits from such transactions, including with respect to the impending acquisition of MDLive, Inc., as well as integration difficulties or underperformance against expectations; dependence on successful relationships with third parties; risk of material disruption to our operations or to key suppliers or third parties; our ability to invest and properly maintain our information technology and other business systems; our ability to prevent or contain the effects of a potential cyber attack or other data privacy or security incident; potential liability related to the management of medical practices and the operation of pharmacies, on-site clinics and other types of medical facilities; the substantial level of government regulation on our business and the potential effects of new laws or regulations or changes in existing laws or regulations; uncertainties surrounding participation in government sponsored programs such as Medicare; the outcome of litigation, regulatory audits, investigations; compliance with applicable privacy, security and data laws, regulations and standards; potential failure of our prevention, detection and control systems; unfavorable economic and market conditions, fall in stock markets or interest rates, risks associated with a deterioration in the financial soundness ratings of our insurance subsidiaries; the impact of our significant indebtedness and the potential for additional indebtedness in the future; adverse industrial, economic or political conditions; credit risk related to our reinsurers; as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K and subsequent reports available in the Investor Relations section of www.cigna.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results and are subject to risks, uncertainties and difficult assumptions. to predict or to quantify. Cigna assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.