Coventry Health Care (NYSE: CVH) Publishes Earnings and Increases 2009 Guidance

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Coventry Health Care, Inc. (NYSE: CVH) recently published consolidated operating results for the quarter ended June 30, 2009. Operating revenues totaled $3.5 billion for the quarter with GAAP net earnings of $18.4 million, or $0.12 per diluted share. Excluding the impact of the First Health Services Corporation (FHSC) goodwill impairment, which resulted in a net $55.4 million, or $0.38 per diluted share, non-cash charge in the second quarter, adjusted net earnings were $73.8 million, or $0.50 per diluted share.

Excluding the impact of the anticipated FHSC divestiture and related current quarter goodwill impairment, the Company is increasing its full year 2009 adjusted earnings per diluted share (EPS) guidance to a range of $1.85 to $1.95, an increase of $0.10 from the midpoint of the prior EPS range of $1.70 to $1.90. GAAP EPS for the full year is now expected to be in a range of $1.25 to $1.40 as, consistent with the FHSC divestiture announcement on June 5, 2009, the Company expects to record a largely non-cash full year charge of $0.55 to $0.60 per diluted share as a result of the transaction.

I am pleased with the financial and operational progress made by the Company during the past six months," said Allen F. Wise, chairman and chief executive officer of Coventry. "Coventry remains focused on continually improving our seven core businesses while we work to deliver on our 2009 commitments. While there is always more hard work to be done, we are making progress as evidenced by today's increase to full year EPS guidance."

Coventry Health Care Inc. is a diversified national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental and workers' compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators.

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