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HealthSpring, Inc.

SEC Form 10-Q filed 2010-07-30 for the period ending 2010-06-30

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Selected tables from the SEC filing

Table 0

Financial table in standard format

TABLE OF CONTENTS


	Page

PART I FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets at June 30, 2010 and December 31, 2009		1

Condensed Consolidated Statements of Income for the three and six months ended June 30, 2010 and 2009		2

Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2010 and 2009		3

Notes to Condensed Consolidated Financial Statements		4

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations		16

Item 3. Quantitative and Qualitative Disclosures About Market Risk		27

Item 4. Controls and Procedures		28

PART II OTHER INFORMATION

Item 1. Legal Proceedings		29

Item 1A. Risk Factors		29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		29

Item 3. Defaults Upon Senior Securities		30

Item 5. Other Information		30

Item 6. Exhibits		30

Exhibit 10.1
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT

HealthSpring, Inc. CIK:1339553

Notes to Condensed Consolidated Financial Statements	4
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3. Quantitative and Qualitative Disclosures About Market Risk	27
Item 4. Controls and Procedures	28
PART II OTHER INFORMATION
Item 1. Legal Proceedings	29
Item 1A. Risk Factors	29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3. Defaults Upon Senior Securities	30
Item 5. Other Information	30
Item 6. Exhibits	30
Exhibit 10.1
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT

Data column 1: Unable to interpret date in column header
Row "Exhibit 10.1": Multi-column field in a numeric row
Row "Exhibit 31.1": Multi-column field in a numeric row
Row "Exhibit 31.2": Multi-column field in a numeric row
Row "Exhibit 32.1": Multi-column field in a numeric row
Row "Exhibit 32.2": Multi-column field in a numeric row
Row "EX-101 INSTANCE DOCUMENT": Multi-column field in a numeric row
Row "EX-101 SCHEMA DOCUMENT": Multi-column field in a numeric row
Row "EX-101 CALCULATION LINKBASE DOCUMENT": Multi-column field in a numeric row
Row "EX-101 LABELS LINKBASE DOCUMENT": Multi-column field in a numeric row
Row "EX-101 PRESENTATION LINKBASE DOCUMENT": Multi-column field in a numeric row

Table 1

Financial table in standard format

Item 1:
Financial Statements
HEALTHSPRING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)


	June 30,			December 31,
	2010			2009
Assets

Current assets:
Cash and cash equivalents	$	103,697		$	439,423
Accounts receivable, net		213,671			92,442
Investment securities available for sale					8,883
Investment securities held to maturity					13,965
Funds due for the benefit of members					4,028
Deferred income taxes		5,167			6,973
Prepaid expenses and other assets		10,805			9,586

Total current assets		333,340			575,300
Investment securities available for sale		259,875			13,574
Investment securities held to maturity		42,567			38,463
Property and equipment, net		29,498			30,316
Goodwill		624,507			624,507
Intangible assets, net		194,822			203,147
Restricted investments		20,856			16,375
Risk corridor receivable from CMS		26,083
Other assets		20,654			6,585

Total assets	$	1,552,202		$	1,508,267


Liabilities and Stockholders Equity
Current liabilities:
Medical claims liability	$	216,530		$	202,308
Accounts payable, accrued expenses and other		44,396			50,954
Risk corridor payable to CMS		2,720			2,176
Funds held for the benefit of members		24,504
Current portion of long-term debt		17,500			43,069

Total current liabilities		305,650			298,507
Long-term debt, less current portion		153,125			193,904
Deferred income taxes		75,037			80,434
Other long-term liabilities		5,458			5,966

Total liabilities		539,270			578,811

Stockholders equity:
Common stock, $.01 par value, 180,000,000 shares authorized, 61,256,707 issued and 57,202,775 outstanding at June 30, 2010, and 60,758,958 issued and 57,560,350 outstanding at December 31, 2009		613			608
Additional paid-in capital		553,731			548,481
Retained earnings		518,341			428,765
Accumulated other comprehensive income (loss), net		2,224			(1,044	)
Treasury stock, at cost, 4,053,932 shares at June 30, 2010, and 3,198,608 shares at December 31, 2009		(61,977	)		(47,354	)

Total stockholders equity		1,012,932			929,456

Total liabilities and stockholders equity	$	1,552,202		$	1,508,267

HealthSpring, Inc. CIK:1339553
	2010-06-30	2009-12-31
Assets
Current assets:
Cash and cash equivalents	$103,697	$439,423
Accounts receivable, net	213,671	92,442
Investment securities available for sale		8,883
Investment securities held to maturity		13,965
Funds due for the benefit of members		4,028
Deferred income taxes	5,167	6,973
Prepaid expenses and other assets	10,805	9,586
Total current assets	333,340	575,300
Investment securities available for sale	259,875	13,574
Investment securities held to maturity	42,567	38,463
Property and equipment, net	29,498	30,316
Goodwill	624,507	624,507
Intangible assets, net	194,822	203,147
Restricted investments	20,856	16,375
Risk corridor receivable from CMS	26,083
Other assets	20,654	6,585
Total assets	$1,552,202	$1,508,267
Liabilities and Stockholders Equity
Current liabilities:
Medical claims liability	$216,530	$202,308
Accounts payable, accrued expenses and other	44,396	50,954
Risk corridor payable to CMS	2,720	2,176
Funds held for the benefit of members	24,504
Current portion of long-term debt	17,500	43,069
Total current liabilities	305,650	298,507
Long-term debt, less current portion	153,125	193,904
Deferred income taxes	75,037	80,434
Other long-term liabilities	5,458	5,966
Total liabilities	539,270	578,811
Stockholders equity:
Common stock, $.01 par value, 180,000,000 shares authorized, 61,256,707 issued and 57,202,775 outstanding at June 30, 2010, and 60,758,958 issued and 57,560,350 outstanding at December 31, 2009	613	608
Additional paid-in capital	553,731	548,481
Retained earnings	518,341	428,765
Accumulated other comprehensive income (loss), net	2,224	(1,044)
Treasury stock, at cost, 4,053,932 shares at June 30, 2010, and 3,198,608 shares at December 31, 2009	(61,977)	(47,354)
Total stockholders equity	1,012,932	929,456
Total liabilities and stockholders equity	$1,552,202	$1,508,267

Table 2

Financial table in standard format

HEALTHSPRING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data)
(unaudited)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
Revenue:
Premium revenue	$	756,342		$	671,450		$	1,505,720		$	1,306,046
Management and other fees		10,590			9,987			20,778			19,956
Investment income		1,547			1,106			2,423			2,656

Total revenue		768,479			682,543			1,528,921			1,328,658

Operating expenses:
Medical expense		604,933			558,403			1,217,452			1,088,002
Selling, general and administrative		66,216			62,306			142,746			134,557
Depreciation and amortization		7,510			7,642			15,297			15,166
Interest expense		2,254			3,970			12,225			8,251

Total operating expenses		680,913			632,321			1,387,720			1,245,976

Income before income taxes		87,566			50,222			141,201			82,682
Income tax expense		(31,791	)		(18,331	)		(51,625	)		(30,179	)

Net income	$	55,775		$	31,891		$	89,576		$	52,503

Net income per common share:
Basic	$	0.98		$	0.59		$	1.57		$	0.96

Diluted	$	0.98		$	0.58		$	1.56		$	0.96

Weighted average common shares outstanding:
Basic		56,917,219			54,497,780			57,069,994			54,490,155

Diluted		57,049,980			54,770,212			57,302,567			54,794,251

HealthSpring, Inc. CIK:1339553
	2010-03-30 to 2010-06-30 (3-months)	2009-03-30 to 2009-06-30 (3-months)	2009-12-30 to 2010-06-30 (6-months)	2008-12-30 to 2009-06-30 (6-months)
Revenue:
Premium revenue	$756,342	$671,450	$1,505,720	$1,306,046
Management and other fees	10,590	9,987	20,778	19,956
Investment income	1,547	1,106	2,423	2,656
Total revenue	768,479	682,543	1,528,921	1,328,658
Operating expenses:
Medical expense	604,933	558,403	1,217,452	1,088,002
Selling, general and administrative	66,216	62,306	142,746	134,557
Depreciation and amortization	7,510	7,642	15,297	15,166
Interest expense	2,254	3,970	12,225	8,251
Total operating expenses	680,913	632,321	1,387,720	1,245,976
Income before income taxes	87,566	50,222	141,201	82,682
Income tax expense	(31,791)	(18,331)	(51,625)	(30,179)
Net income	$55,775	$31,891	$89,576	$52,503
Net income per common share:
Basic	$0.98	$0.59	$1.57	$0.96
Diluted	$0.98	$0.58	$1.56	$0.96
Weighted average common shares outstanding:
Basic	56,917,219	54,497,780	57,069,994	54,490,155
Diluted	57,049,980	54,770,212	57,302,567	54,794,251

Table 3

Table column format standardization was unsuccessful.

HEALTHSPRING, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
The Company had no derivative financial instruments outstanding at June 30, 2010. A summary of the aggregate notional amounts, balance sheet location and estimated fair values of derivative financial instruments at December 31, 2009 was as follows (in thousands):

Notional

Estimated Fair Value

Hedging instruments

Amount

Balance Sheet Location

Asset

(Liability)

Interest rate swaps

100,000

Other noncurrent liabilities

(2,066

)

Unable to find the column headers.

Table internal representation dump (debug use)

First numeric data row: 0
First row with column header attributes: 
Last row with column header attributes:  

Row 0

Row 1
    (2..3)   [1..1] (stub): 'Notional'
   (8..13)   [3..3] (stub): 'Estimated Fair Value'

Row 2
    [0..0)   [0..0] (stub): 'Hedging instruments'
    (2..3)   [1..1] (stub): 'Amount'
    (6..6)   [2..2] (stub): 'Balance Sheet Location'
    (8..9)   [2..3] (stub): 'Asset'
  (12..13)   [3..3] (stub): '(Liability)'

Row 3

Row 4
    [0..0)   [0..0] (stub): 'Interest rate swaps'
    [2..3]   [1..1] ( num): '$100,000'
      Attributes: num=>000 [1..1]  
    [6..6)   [2..2] (stub): 'Other noncurrent liabilities'
  (13..14)   [3..3] ( num): '(2,066)'

Row 5



Prototype ranges:
2 rows: 4 5 
    [0..0)   [0..0] (stub): ''
    [2..3]   [1..1] ( num): ''
    [6..6)   [2..2] (stub): ''
  (13..14)   [3..3] ( num): ''

Best data column prototype:
2 rows: 4 5 
    [0..0)   [0..0] (stub): ''
    [2..3]   [1..1] ( num): ''
    [6..6)   [2..2] (stub): ''
  (13..14)   [3..3] ( num): ''

Table attributes: balancesheet,date,liabilities

Table 4

Financial table in standard format

Notional

Estimated Fair Value

Hedging instruments

Amount

Balance Sheet Location

Asset

(Liability)

Interest rate swaps

$
100,000

Other noncurrent liabilities

(2,066
)

A summary of the effect of cash flow hedges on the Companys financial statements for the periods presented is as follows (in thousands):

Effective Portion

Hedge Gain

Income Statement

(Loss)

Pretax Hedge

Location of Gain

Reclassified

Ineffective Portion

Gain (Loss)

(Loss) Reclassified

from

Income

Recognized in

from Accumulated

Accumulated

Statement

Other

Location of

Hedge Gain

Comprehensive

Gain (Loss)

(Loss)

Type of Cash Flow Hedge

Income

Recognized

For the three months ended June 30, 2010:

Interest rate swaps

Interest Expense

None

For the three months ended June 30, 2009:

Interest rate swaps

374

Interest Expense

None

For the six months ended June 30, 2010:

Interest rate swaps

Interest Expense

(1,253

)

None

For the six months ended June 30, 2009:

Interest rate swaps

588

Interest Expense

None

HealthSpring, Inc. CIK:1339553

Interest rate swaps	$588

Data column 1: "numyear" is ambiguous (2010 or 2009 or 2010 or 2009)
Data column 1: "month" is ambiguous (6 or 6 or 6 or 6)
Data column 1: "dayofmonth" is ambiguous (30 or 30 or 30 or 30)
Data column 1: Unable to interpret date in column header
Data column 2: "numyear" is ambiguous (2010 or 2009 or 2010 or 2009)
Data column 2: "month" is ambiguous (6 or 6 or 6 or 6)
Data column 2: "dayofmonth" is ambiguous (30 or 30 or 30 or 30)
Data column 2: Unable to interpret date in column header
Data column 3: "numyear" is ambiguous (2010 or 2009 or 2010 or 2009)
Data column 3: "month" is ambiguous (6 or 6 or 6 or 6)
Data column 3: "dayofmonth" is ambiguous (30 or 30 or 30 or 30)
Data column 3: Unable to interpret date in column header
Data column 4: "numyear" is ambiguous (2010 or 2009 or 2010 or 2009)
Data column 4: "month" is ambiguous (6 or 6 or 6 or 6)
Data column 4: "dayofmonth" is ambiguous (30 or 30 or 30 or 30)
Data column 4: Unable to interpret date in column header
Data column 5: "numyear" is ambiguous (2010 or 2009 or 2010 or 2009)
Data column 5: "month" is ambiguous (6 or 6 or 6 or 6)
Data column 5: "dayofmonth" is ambiguous (30 or 30 or 30 or 30)
Data column 5: Unable to interpret date in column header

Table 5

Table column format standardization was unsuccessful.

Effective Portion

Hedge Gain

Income Statement

(Loss)

Pretax Hedge

Location of Gain

Reclassified

Ineffective Portion

Gain (Loss)

(Loss) Reclassified

from

Income

Recognized in

from Accumulated

Accumulated

Statement

Other

Other

Other

Location of

Hedge Gain

Comprehensive

Comprehensive

Comprehensive

Gain (Loss)

(Loss)

Type of Cash Flow Hedge

Income

Income

Income

Recognized

Recognized

For the three months ended June 30, 2010:

Interest rate swaps

$

Interest Expense

$

None

$

For the three months ended June 30, 2009:

Interest rate swaps

$
374

Interest Expense

$

None

$

For the six months ended June 30, 2010:

Interest rate swaps

$
38

Interest Expense

$
(1,253
)

None

$

For the six months ended June 30, 2009:

Interest rate swaps

$
588

Interest Expense

$

None

$

(9) Intangible Assets
A breakdown of the identifiable intangible assets and their assigned value and accumulated amortization at June 30, 2010 is as follows (in thousands):


	Gross Carrying		Accumulated
	Amount		Amortization		Net
Trade name	$	24,497	$		$	24,497
Noncompete agreements		800		800
Provider network		137,679		26,875		110,804
Medicare member network		93,620		35,136		58,484
Management contract right		1,555		518		1,037

	$	258,151	$	63,329	$	194,822

Unable to find the column headers.

Table internal representation dump (debug use)

First numeric data row: 0
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Last row with column header attributes:  

Row 0

Row 1
    (2..3)   [1..1] (stub): 'Gross Carrying'
    (6..7)   [2..2] (stub): 'Accumulated'

Row 2
    (2..3)   [1..1] (stub): 'Amount'
    (6..7)   [2..2] (stub): 'Amortization'
  (10..11)   [3..3] (stub): 'Net'

Row 3
    [0..0)   [0..0] (stub): 'Trade name'
    [2..3]   [1..1] ( num): '$24,497'
      Attributes: num=>497 [1..1]  
    [6..6)   [1..2] (stub): '$'
  [10..11]   [3..3] ( num): '$24,497'
      Attributes: num=>497 [3..3]  

Row 4
    [0..0)   [0..0] (stub): 'Noncompete agreements'
    (3..3]   [1..1] ( num): '800'
      Attributes: num=>800 [1..1]  
    (7..7]   [2..2] ( num): '800'
      Attributes: num=>800 [2..2]  

Row 5
    [0..0)   [0..0] (stub): 'Provider network'
    (3..3]   [1..1] ( num): '137,679'
      Attributes: num=>137 [1..1]  num=>679 [1..1]  
    (7..7]   [2..2] ( num): '26,875'
      Attributes: num=>26 [2..2]  num=>875 [2..2]  
  (11..11]   [3..3] ( num): '110,804'
      Attributes: num=>110 [3..3]  num=>804 [3..3]  

Row 6
    [0..0)   [0..0] (stub): 'Medicare member network'
    (3..3]   [1..1] ( num): '93,620'
      Attributes: num=>93 [1..1]  num=>620 [1..1]  
    (7..7]   [2..2] ( num): '35,136'
      Attributes: num=>35 [2..2]  num=>136 [2..2]  
  (11..11]   [3..3] ( num): '58,484'
      Attributes: num=>58 [3..3]  num=>484 [3..3]  

Row 7
    [0..0)   [0..0] (stub): 'Management contract right'
    (3..3]   [1..1] ( num): '1,555'
      Attributes: num=>1 [1..1]  num=>555 [1..1]  
    (7..7]   [2..2] ( num): '518'
      Attributes: num=>518 [2..2]  
  (11..11]   [3..3] ( num): '1,037'
      Attributes: num=>1 [3..3]  num=>037 [3..3]  

Row 8

Row 9
    [2..3]   [1..1] ( num): '$258,151'
      Attributes: num=>151 [1..1]  
    [6..7]   [2..2] ( num): '$63,329'
      Attributes: num=>329 [2..2]  
  [10..11]   [3..3] ( num): '$194,822'
      Attributes: num=>822 [3..3]  

Row 10



Prototype ranges:
2 rows: 3 10 
    [0..0)          (stub): ''
    [2..3]          ( num): ''
    [6..6)          (stub): ''
  [10..11]          ( num): ''
4 rows: 7 6 5 4 
    [0..0)   [0..0] (stub): ''
    (3..3]   [1..1] ( num): ''
    (7..7]   [2..2] ( num): ''
  (11..11]   [3..3] ( num): ''
Row 9
    [2..3]          ( num): ''
    [6..7]          ( num): ''
  [10..11]          ( num): ''

Best data column prototype:
4 rows: 7 6 5 4 
    [0..0)   [0..0] (stub): ''
    (3..3]   [1..1] ( num): ''
    (7..7]   [2..2] ( num): ''
  (11..11]   [3..3] ( num): ''

Table attributes: assets,date,cash,incomestatement

Table 6

Financial table in standard format

MA-PD

PDP

Corporate

Total

Three months ended June 30, 2010

Revenue

$
653,074

$
115,395

$
10

$
768,479

EBITDA

99,371

4,162

(6,203
)

97,330

Depreciation and amortization expense

6,238

1,272

7,510

Three months ended June 30, 2009

Revenue

$
595,034

$
87,496

$
13

$
682,543

EBITDA

64,263

3,302

(5,731
)

61,834

Depreciation and amortization expense

6,366

20

1,256

7,642

Six months ended June 30, 2010

Revenue

$
1,284,024

$
244,871

$
26

$
1,528,921

EBITDA

181,822

(601
)

(12,498
)

168,723

Depreciation and amortization expense

12,430

31

2,836

15,297

Six months ended June 30, 2009

Revenue

$
1,148,519

$
180,114

$
25

$
1,328,658

EBITDA

116,241

2,256

(12,398
)

106,099

Depreciation and amortization expense

12,722

40

2,404

15,166

As of January 1, 2010, the Company revised its methodology for allocating SGA expenses within its prescription drug operations to its MA-PD and PDP segments, which resulted in allocating a greater share of such expenses to its PDP segment. As a result of these revisions, the segment EBITDA amounts for the 2009 period include reclassification adjustments between segments such that the periods presented are comparable.
The Company uses segment EBITDA as an analytical indicator for purposes of assessing segment performance, as is common in the healthcare industry. Segment EBITDA should not be considered as a measure of financial performance under generally accepted accounting principles and segment EBITDA, as presented, may not be comparable to other companies.
A reconciliation of reportable segment EBITDA to net income included in the consolidated statements of income for the three and six months ended June 30 is as follows (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
EBITDA	$	97,330		$	61,834		$	168,723		$	106,099
Income tax expense		(31,791	)		(18,331	)		(51,625	)		(30,179	)
Interest expense		(2,254	)		(3,970	)		(12,225	)		(8,251	)
Depreciation and amortization		(7,510	)		(7,642	)		(15,297	)		(15,166	)

Net Income	$	55,775		$	31,891		$	89,576		$	52,503

HealthSpring, Inc. CIK:1339553
	2010-03-30 to 2010-06-30 (3-months)	2009-03-30 to 2009-06-30 (3-months)	2009-12-30 to 2010-06-30 (6-months)	2008-12-30 to 2009-06-30 (6-months)
EBITDA	$97,330	$61,834	$168,723	$106,099
Income tax expense	(31,791)	(18,331)	(51,625)	(30,179)
Interest expense	(2,254)	(3,970)	(12,225)	(8,251)
Depreciation and amortization	(7,510)	(7,642)	(15,297)	(15,166)
Net Income	$55,775	$31,891	$89,576	$52,503

Table 7

Financial table in standard format

We report our business in three segments: Medicare Advantage; PDP; and Corporate. The following discussion of our results of operations includes a discussion of revenue and certain expenses by reportable segment. See Segment Information below for additional information related thereto.
Results of Operations
The consolidated results of operations include the accounts of HealthSpring and its subsidiaries. The following table sets forth the consolidated statements of income data expressed in dollars (in thousands) and as a percentage of total revenue for each period indicated:


	Three Months Ended June 30,
	2010					2009
Revenue:
Premium revenue	$	756,342		98.4	%	$	671,450		98.4	%
Management and other fees		10,590		1.4			9,987		1.5
Investment income		1,547		0.2			1,106		0.1

Total revenue		768,479		100.0	%		682,543		100.0	%

Operating expenses:
Medical expense		604,933		78.7			558,403		81.8
Selling, general and administrative		66,216		8.6			62,306		9.1
Depreciation and amortization		7,510		1.0			7,642		1.1
Interest expense		2,254		0.3			3,970		0.6

Total operating expenses		680,913		88.6			632,321		92.6

Income before income taxes		87,566		11.4			50,222		7.4
Income tax expense		(31,791	)	(4.1	)		(18,331	)	(2.7	)

Net income	$	55,775		7.3	%	$	31,891		4.7	%

HealthSpring, Inc. CIK:1339553
	2010-03-30 to 2010-06-30 (3-months)	2010-03-30 to 2010-06-30 (3-months)	2009-03-30 to 2009-06-30 (3-months)	2009-03-30 to 2009-06-30 (3-months)
Revenue:
Premium revenue	$756,342	98.4	$671,450	98.4
Management and other fees	10,590	1.4	9,987	1.5
Investment income	1,547	0.2	1,106	0.1
Total revenue	768,479	100.0	682,543	100.0
Operating expenses:
Medical expense	604,933	78.7	558,403	81.8
Selling, general and administrative	66,216	8.6	62,306	9.1
Depreciation and amortization	7,510	1.0	7,642	1.1
Interest expense	2,254	0.3	3,970	0.6
Total operating expenses	680,913	88.6	632,321	92.6
Income before income taxes	87,566	11.4	50,222	7.4
Income tax expense	(31,791)	(4.1)	(18,331)	(2.7)
Net income	$55,775	7.3	$31,891	4.7

Table 8

Financial table in standard format

MA-PD

PDP

Corporate

Total

Three months ended June 30, 2010

Revenue

$
653,074

$
115,395

$
10

$
768,479

EBITDA

99,371

4,162

(6,203
)

97,330

Depreciation and amortization expense

6,238

1,272

7,510

Three months ended June 30, 2009

Revenue

$
595,034

$
87,496

$
13

$
682,543

EBITDA

64,263

3,302

(5,731
)

61,834

Depreciation and amortization expense

6,366

20

1,256

7,642

Six months ended June 30, 2010

Revenue

$
1,284,024

$
244,871

$
26

$
1,528,921

EBITDA

181,822

(601
)

(12,498
)

168,723

Depreciation and amortization expense

12,430

31

2,836

15,297

Six months ended June 30, 2009

Revenue

$
1,148,519

$
180,114

$
25

$
1,328,658

EBITDA

116,241

2,256

(12,398
)

106,099

Depreciation and amortization expense

12,722

40

2,404

15,166

As of January 1, 2010, the company revised its methodology for allocating selling, general, and administrative expenses within its prescription drug operations to its MA-PD and PDP segments, which resulted in allocating a greater share of such expenses to its PDP segment. As a result of these revisions, the segment EBITDA amounts for the 2009 period includes reclassification adjustments between segments such that the periods presented are comparable.
We use segment EBITDA as an analytical indicator for purposes of assessing segment performance, as is common in the healthcare industry. Segment EBITDA should not be considered as a measure of financial performance under generally accepted accounting principles and segment EBITDA, as presented, may not be comparable to other companies.
A reconciliation of reportable segment EBITDA to net income included in the consolidated statements of income for the three and six months ended June 30 is as follows (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
EBITDA	$	97,330		$	61,834		$	168,723		$	106,099
Income tax expense		(31,791	)		(18,331	)		(51,625	)		(30,179	)
Interest expense		(2,254	)		(3,970	)		(12,225	)		(8,251	)
Depreciation and amortization		(7,510	)		(7,642	)		(15,297	)		(15,166	)

Net Income	$	55,775		$	31,891		$	89,576		$	52,503

HealthSpring, Inc. CIK:1339553
	2010-03-30 to 2010-06-30 (3-months)	2009-03-30 to 2009-06-30 (3-months)	2009-12-30 to 2010-06-30 (6-months)	2008-12-30 to 2009-06-30 (6-months)
EBITDA	$97,330	$61,834	$168,723	$106,099
Income tax expense	(31,791)	(18,331)	(51,625)	(30,179)
Interest expense	(2,254)	(3,970)	(12,225)	(8,251)
Depreciation and amortization	(7,510)	(7,642)	(15,297)	(15,166)
Net Income	$55,775	$31,891	$89,576	$52,503

Original filing from SEC EDGAR system.