Newly emerged from Chapter 11 bankruptcy, Magellan Health Services, the nation's largest behavioral health managed-care company, reported a net profit of $451.8 million, or $12.69 per share, on net revenue of $1.5 billion for the year ended Dec. 31, 2003. The company's profit included a pre-tax reorganization benefit of $457.7 million and a pre-tax charge for impaired goodwill of $28.8 million. Magellan also restated its 2002 earnings to a net loss of $540.8 million, or $15.47 per share, on revenue of $1.8 billion. The company, newly relocated to Farmington, Conn., emerged from bankruptcy in January after a restructuring that reduced its gross debt by about $700 million, leaving it with total outstanding debt of $401.3 million. Magellan was delisted from the New York Stock Exchange in November 2002 and filed for Chapter 11 bankruptcy protection in March 2003, saying it was unable to repay debt from acquisitions. -- by Julie Piotrowski
Fresh out of bankruptcy, Magellan posts profit
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