MultiPlan Reports Fourth Quarter and Full Year 2022 Results
MultiPlan Corporation (NYSE: MPLN) reported its Q4 2022 results with revenues of $241.1 million and a net loss of $650.1 million, which includes a substantial impairment charge of $662.2 million. For the full year 2022, revenues totaled $1,079.7 million, with a net loss of $572.9 million. The company anticipates 2023 revenues between $925 million and $975 million and adjusted EBITDA between $600 million and $650 million. MultiPlan repurchased over $136 million of its 5.75% Notes and authorized a $100 million share repurchase program through December 31, 2023. The company processed $155.2 billion in medical charges, identifying $22.3 billion in potential savings.
- Renewed multi-year contract with a major customer.
- Processed $155.2 billion in medical charges, identifying $22.3 billion in potential savings.
- Successful navigation of regulatory changes regarding the No Surprises Act.
- Over $300 million in cash on the balance sheet, allowing for opportunistic capital allocation.
- Net loss of $650.1 million in Q4 2022, primarily due to a $662.2 million impairment charge.
- Overall net loss of $572.9 million for full year 2022.
– Q4 2022 Revenues of
– Full Year 2022 Revenues of
– Full Year 2023 Revenues guidance of
– Repurchased over
“As we close 2022, I’m proud of the progress MultiPlan has made, even as we withstood a period of softness in the second half of the year,” said
“Further, we have continued to take steps to strengthen our business,” added
Business and Financial Highlights
-
Revenues of
$241.1 million 19.2% over Q4 2021 revenues of$298.3 million
-
Net loss of
$650.1 million $24.9 million $662.2 million
-
Adjusted EBITDA of
$161.5 million $223.6 million
-
Revenues of
$1,079.7 million 3.4% over full year 2021 revenues of$1,117.6 million
-
Net loss for full year 2022 of
$572.9 million $102.1 million $662.2 million
-
Adjusted EBITDA of
$768.7 million $838.3 million
-
Net cash provided by operating activities of
$372.4 million $404.7 million
-
Free Cash Flow of
$282.6 million $320.1 million
-
In the fourth quarter, the Company used
$100 million $136 million 5.750% Senior Unsecured Notes. The Company ended the fourth quarter with$334 million
-
The Company processed
$39.0 billion $5.4 billion December 31, 2022 , the Company processed approximately$155.2 billion $22.3 billion $144.2 billion $22.1 billion December 31, 2021 .
-
Based on the results of the annual impairment test in the fourth quarter of 2022, the estimated fair values of our goodwill and indefinite-lived assets were less than their carrying values and as a result impairment charges of
$657.9 million $4.3 million
The full year 2022 results reflect an estimated COVID-related revenue impact of
2023 Financial Guidance
Financial Metric |
|
|
Full Year 2023 Guidance |
Revenues |
|
|
|
Adjusted EBITDA1 |
|
|
|
Interest expense |
|
|
|
Cash flow from operations2 |
|
|
|
Capital expenditures |
|
|
|
Depreciation |
|
|
|
Amortization of intangible assets |
|
|
|
Effective tax rate |
|
|
|
The Company anticipates Q1 2023 revenues between
Conference Call Information
The Company will host a conference call today,
To pre-register, go to: https://www.netroadshow.com/events/login?show=26c1eac5&confId=46725
A live webcast of the conference call can be accessed through the Investor Relations section of the Company’s website at investors.multiplan.com/events-and-presentations. Participants should join the webcast ten minutes prior to the start of the conference call. The earnings release and supplemental slide deck will also be available on this section of the Company’s website.
For those unable to listen to the live conference call, an audio replay will be available approximately two hours after the call through the archived webcast on the Investor Relations section of the Company’s website or by dialing (866) 813-9403 or (929) 458-6194. The replay access code is 726753.
About MultiPlan
MultiPlan is committed to helping healthcare payors manage the cost of care, improve their competitiveness and inspire positive change. Leveraging sophisticated technology, data analytics and a team rich with industry experience, MultiPlan interprets customers’ needs and customizes innovative solutions that combine its payment and revenue integrity, network-based and analytics-based services. MultiPlan is a trusted partner to over 700 healthcare payors in the commercial health, government and property and casualty markets. For more information, visit multiplan.com.
Forward Looking Statements
This press release includes statements that express our and our subsidiaries’ opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “forecasts,” “intends,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this press release, including the discussion of 2023 outlook and guidance and the long-term prospects of the Company. Such forward-looking statements are based on available current market information and management’s expectations, beliefs and forecasts concerning future events impacting the business. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that these forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These factors include: the ongoing COVID-19 pandemic and its related effects on our results of operations, financial performance, liquidity or other financial metrics; loss of our customers, particularly our largest customers; trends in the
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on our business. There can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in our Annual Report on Form 10-K for the fiscal year ended
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles in
EBITDA, Adjusted EBITDA, Free Cash Flow, Unlevered Free Cash Flow and Adjusted cash conversion ratio are supplemental measures of MultiPlan’s performance that are not required by or presented in accordance with GAAP. These measures are not measurements of our financial or operating performance under GAAP, have limitations as analytical tools and should not be considered in isolation or as an alternative to net (loss) income, cash flows or any other measures of performance prepared in accordance with GAAP.
EBITDA represents net (loss) income before interest expense, interest income, income tax provision (benefit), depreciation, amortization of intangible assets, and non-income taxes. Adjusted EBITDA is EBITDA as further adjusted by certain items as described in the table below.
In addition, in evaluating EBITDA and Adjusted EBITDA you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of EBITDA and Adjusted EBITDA. The presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. The calculations of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Based on our industry and debt financing experience, we believe that EBITDA and Adjusted EBITDA are customarily used by investors, analysts and other interested parties to provide useful information regarding a company’s ability to service and/or incur indebtedness.
We also believe that Adjusted EBITDA is useful to investors and analysts in assessing our operating performance during the periods these charges were incurred on a consistent basis with the periods during which these charges were not incurred. Both EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider either in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of the limitations are:
- EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
- EBITDA and Adjusted EBITDA do not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
- EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes; and
- Although depreciation and amortization are non-cash charges, the tangible assets being depreciated will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements.
MultiPlan’s presentation of Adjusted EBITDA should not be construed as an inference that our future results and financial position will be unaffected by unusual items.
Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, all as disclosed in the Statements of Cash Flows. Unlevered Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, plus cash interest paid, all as disclosed in the Statements of Cash Flows. Free Cash Flow and Unlevered Free Cash Flow are measures of our operational performance used by management to evaluate our business after purchases of property and equipment and, in the case of Unlevered Free Cash Flow, prior to the impact of our capital structure. Free Cash Flow and Unlevered Free Cash Flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, MultiPlan’s definitions of Free Cash Flow and Unlevered Free Cash Flow are limited, in that they do not represent residual cash flows available for discretionary expenditures, due to the fact that the measures do not deduct the payments required for debt service, in the case of Unlevered Free Cash Flow, and other contractual obligations or payments made for business acquisitions.
Adjusted cash conversion ratio is defined as Unlevered Free Cash Flow divided by Adjusted EBITDA. MultiPlan believes that the presentation of the Adjusted cash conversion ratio provides useful information to investors because it is an financial performance measure that shows how much of its Adjusted EBITDA MultiPlan converts into Unlevered Free Cash Flow.
Consolidated Balance Sheets (in thousands, except share and per share data) |
|||||||
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
334,046 |
|
|
$ |
185,328 |
|
Restricted cash |
|
6,513 |
|
|
|
3,051 |
|
Trade accounts receivable, net |
|
78,907 |
|
|
|
99,905 |
|
Prepaid expenses |
|
22,244 |
|
|
|
24,910 |
|
Prepaid taxes |
|
1,351 |
|
|
|
5,064 |
|
Other current assets, net |
|
3,676 |
|
|
|
999 |
|
Total current assets |
|
446,737 |
|
|
|
319,257 |
|
Property and equipment, net |
|
232,835 |
|
|
|
213,238 |
|
Operating lease right-of-use assets |
|
24,237 |
|
|
|
30,104 |
|
|
|
3,705,199 |
|
|
|
4,363,070 |
|
Other intangibles, net |
|
2,940,201 |
|
|
|
3,285,037 |
|
Other assets, net |
|
21,895 |
|
|
|
9,701 |
|
Total assets |
$ |
7,371,104 |
|
|
$ |
8,220,407 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
13,295 |
|
|
$ |
13,005 |
|
Accrued interest |
|
57,982 |
|
|
|
55,685 |
|
Operating lease obligation, short-term |
|
6,363 |
|
|
|
6,883 |
|
Current portion of long-term debt |
|
13,250 |
|
|
|
13,250 |
|
Accrued compensation |
|
34,568 |
|
|
|
25,419 |
|
Accrued legal settlements |
|
33,923 |
|
|
|
9,646 |
|
Other accrued expenses |
|
16,463 |
|
|
|
18,020 |
|
Total current liabilities |
|
175,844 |
|
|
|
141,908 |
|
Long-term debt |
|
4,741,856 |
|
|
|
4,879,144 |
|
Operating lease obligation, long-term |
|
20,894 |
|
|
|
26,725 |
|
Private Placement Warrants and Unvested Founder Shares |
|
2,442 |
|
|
|
74,000 |
|
Deferred income taxes |
|
639,498 |
|
|
|
753,825 |
|
Other liabilities |
|
28 |
|
|
|
135 |
|
Total liabilities |
|
5,580,562 |
|
|
|
5,875,737 |
|
Commitments and contingencies (Note 13) |
|
|
|
||||
Shareholders’ equity: |
|
|
|
||||
Shareholder interests |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
67 |
|
|
|
67 |
|
Additional paid-in capital |
|
2,330,444 |
|
|
|
2,311,660 |
|
Retained (deficit) earnings |
|
(347,800 |
) |
|
|
225,112 |
|
|
|
(192,169 |
) |
|
|
(192,169 |
) |
Total shareholders’ equity |
|
1,790,542 |
|
|
|
2,344,670 |
|
Total liabilities and shareholders’ equity |
$ |
7,371,104 |
|
|
$ |
8,220,407 |
|
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income (in thousands, except share and per share data) |
||||||||||||
|
|
Years Ended |
||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenues |
|
$ |
1,079,716 |
|
|
$ |
1,117,602 |
|
|
$ |
937,763 |
|
Costs of services (exclusive of depreciation and amortization of intangible assets shown below) |
|
|
204,098 |
|
|
|
175,292 |
|
|
|
318,675 |
|
General and administrative expenses |
|
|
166,837 |
|
|
|
151,095 |
|
|
|
355,635 |
|
Depreciation |
|
|
68,756 |
|
|
|
64,885 |
|
|
|
60,577 |
|
Amortization of intangible assets |
|
|
340,536 |
|
|
|
340,210 |
|
|
|
334,697 |
|
Loss on impairment of goodwill and intangible assets |
|
|
662,221 |
|
|
|
— |
|
|
|
— |
|
Total expenses |
|
|
1,442,448 |
|
|
|
731,482 |
|
|
|
1,069,584 |
|
Operating (loss) income |
|
|
(362,732 |
) |
|
|
386,120 |
|
|
|
(131,821 |
) |
Interest expense |
|
|
303,401 |
|
|
|
267,475 |
|
|
|
335,638 |
|
Interest income |
|
|
(3,500 |
) |
|
|
(30 |
) |
|
|
(288 |
) |
(Gain) loss on extinguishment of debt |
|
|
(34,551 |
) |
|
|
15,843 |
|
|
|
102,993 |
|
(Gain) loss on investments |
|
|
(289 |
) |
|
|
(25 |
) |
|
|
12,165 |
|
Gain on change in fair value of Private Placement Warrants and Unvested Founder Shares |
|
|
(67,050 |
) |
|
|
(32,596 |
) |
|
|
(35,422 |
) |
Net (loss) income before taxes |
|
|
(560,743 |
) |
|
|
135,453 |
|
|
|
(546,907 |
) |
Provision (benefit) for income taxes |
|
|
12,169 |
|
|
|
33,373 |
|
|
|
(26,343 |
) |
Net (loss) income |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
|
$ |
(520,564 |
) |
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding – Basic |
|
|
638,925,689 |
|
|
|
651,006,567 |
|
|
|
470,785,192 |
|
Weighted average shares outstanding – Diluted |
|
|
638,925,689 |
|
|
|
651,525,791 |
|
|
|
470,785,192 |
|
|
|
|
|
|
|
|
||||||
Net (loss) income per share – Basic |
|
$ |
(0.90 |
) |
|
$ |
0.16 |
|
|
$ |
(1.11 |
) |
Net (loss) income per share – Diluted |
|
$ |
(0.90 |
) |
|
$ |
0.16 |
|
|
$ |
(1.11 |
) |
|
|
|
|
|
|
|
||||||
Comprehensive (loss) income |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
|
$ |
(520,564 |
) |
Consolidated Statements of Cash Flows (in thousands) |
|||||||||||
|
Years Ended |
||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
Operating activities: |
|
|
|
|
|
||||||
Net (loss) income |
$ |
(572,912 |
) |
|
$ |
102,080 |
|
|
$ |
(520,564 |
) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
||||||
Depreciation |
|
68,756 |
|
|
|
64,885 |
|
|
|
60,577 |
|
Amortization of intangible assets |
|
340,536 |
|
|
|
340,210 |
|
|
|
334,697 |
|
Amortization of the right-of-use asset |
|
6,367 |
|
|
|
6,963 |
|
|
|
8,405 |
|
Loss on impairment of goodwill and intangible assets |
|
662,221 |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
16,739 |
|
|
|
18,010 |
|
|
|
406,054 |
|
Deferred income taxes |
|
(114,378 |
) |
|
|
(81,929 |
) |
|
|
(45,041 |
) |
Non-cash interest costs |
|
10,539 |
|
|
|
12,259 |
|
|
|
22,888 |
|
Loss (gain) on extinguishment of debt |
|
(34,551 |
) |
|
|
15,843 |
|
|
|
102,993 |
|
(Gain) Loss on equity investments |
|
(289 |
) |
|
|
— |
|
|
|
12,165 |
|
Loss on disposal of property and equipment |
|
1,051 |
|
|
|
2,991 |
|
|
|
610 |
|
Change in fair value of Private Placement Warrants and Unvested Founder Shares |
|
(67,050 |
) |
|
|
(32,596 |
) |
|
|
(35,422 |
) |
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: |
|
|
|
|
|
||||||
Accounts receivable, net |
|
20,998 |
|
|
|
(33,826 |
) |
|
|
14,758 |
|
Prepaid expenses and other assets |
|
2,795 |
|
|
|
(6,952 |
) |
|
|
(7,480 |
) |
Prepaid taxes |
|
3,713 |
|
|
|
(5,064 |
) |
|
|
2,130 |
|
Operating lease obligation |
|
(6,520 |
) |
|
|
(5,900 |
) |
|
|
(8,461 |
) |
Accounts payable and accrued expenses and other |
|
34,349 |
|
|
|
7,713 |
|
|
|
29,065 |
|
Net cash provided by operating activities |
|
372,364 |
|
|
|
404,687 |
|
|
|
377,374 |
|
Investing activities: |
|
|
|
|
|
||||||
Purchases of property and equipment |
|
(89,735 |
) |
|
|
(84,590 |
) |
|
|
(70,813 |
) |
Proceeds from sale of investment |
|
289 |
|
|
|
5,641 |
|
|
|
— |
|
Purchase of equity investments |
|
(15,000 |
) |
|
|
— |
|
|
|
— |
|
HST Acquisition, net of cash acquired |
|
— |
|
|
|
246 |
|
|
|
(140,032 |
) |
DHP Acquisition, net of cash acquired |
|
— |
|
|
|
(149,676 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(104,446 |
) |
|
|
(228,379 |
) |
|
|
(210,845 |
) |
Financing activities: |
|
|
|
|
|
||||||
Repayments of Term Loan G |
|
— |
|
|
|
(2,341,000 |
) |
|
|
(369,000 |
) |
Extinguishment of |
|
— |
|
|
|
— |
|
|
|
(1,615,583 |
) |
Extinguishment of Senior |
|
— |
|
|
|
— |
|
|
|
(1,202,302 |
) |
Issuance of Senior Convertible PIK Notes |
|
— |
|
|
|
— |
|
|
|
1,267,500 |
|
Repurchase of |
|
(99,999 |
) |
|
|
— |
|
|
|
— |
|
Issuance of |
|
— |
|
|
|
— |
|
|
|
1,300,000 |
|
Repayments of Term Loan B |
|
(13,250 |
) |
|
|
(3,313 |
) |
|
|
— |
|
Issuance of Term Loan B |
|
— |
|
|
|
1,298,930 |
|
|
|
— |
|
Issuance of |
|
— |
|
|
|
1,034,520 |
|
|
|
— |
|
Taxes paid on settlement of vested share awards |
|
(2,463 |
) |
|
|
(3,789 |
) |
|
|
— |
|
Borrowings on revolving credit facility |
|
— |
|
|
|
— |
|
|
|
98,000 |
|
Repayment of revolving credit facility |
|
— |
|
|
|
— |
|
|
|
(98,000 |
) |
Effect of the Transactions |
|
— |
|
|
|
— |
|
|
|
682,408 |
|
Consolidated Statements of Cash Flows Continued (in thousands) |
|||||||||||
|
Years Ended |
||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
Purchase of treasury stock |
|
— |
|
|
|
(100,000 |
) |
|
|
(101,123 |
) |
Payment of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(23,489 |
) |
Borrowings on finance leases, net |
|
(26 |
) |
|
|
(32 |
) |
|
|
(10 |
) |
Net cash used in financing activities |
|
(115,738 |
) |
|
|
(114,684 |
) |
|
|
(61,599 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
152,180 |
|
|
|
61,624 |
|
|
|
104,930 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
188,379 |
|
|
|
126,755 |
|
|
|
21,825 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
340,559 |
|
|
$ |
188,379 |
|
|
$ |
126,755 |
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
334,046 |
|
|
$ |
185,328 |
|
|
$ |
126,755 |
|
Restricted cash |
|
6,513 |
|
|
|
3,051 |
|
|
|
— |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
340,559 |
|
|
$ |
188,379 |
|
|
$ |
126,755 |
|
|
|
|
|
|
|
||||||
Noncash investing and financing activities: |
|
|
|
|
|
||||||
Purchases of property and equipment not yet paid |
$ |
4,784 |
|
|
$ |
5,930 |
|
|
$ |
4,334 |
|
Operating lease right-of-use assets obtained in exchange for operating lease liabilities |
$ |
3,631 |
|
|
$ |
6,880 |
|
|
$ |
10,210 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
||||||
Cash paid during the period for: |
|
|
|
|
|
||||||
Interest |
$ |
(289,766 |
) |
|
$ |
(231,049 |
) |
|
$ |
(312,349 |
) |
Income taxes, net of refunds |
$ |
(124,082 |
) |
|
$ |
(131,517 |
) |
|
$ |
(3,917 |
) |
Calculation of EBITDA and Adjusted EBITDA (in thousands) |
||||||||||||
|
|
Year Ended |
||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
||||||
Net (loss) income |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
|
$ |
(520,564 |
) |
Adjustments: |
|
|
|
|
|
|
||||||
Interest expense |
|
|
303,401 |
|
|
|
267,475 |
|
|
|
335,638 |
|
Interest income |
|
|
(3,500 |
) |
|
|
(30 |
) |
|
|
(288 |
) |
Income tax provision (benefit) |
|
|
12,169 |
|
|
|
33,373 |
|
|
|
(26,343 |
) |
Depreciation |
|
|
68,756 |
|
|
|
64,885 |
|
|
|
60,577 |
|
Amortization of intangible assets |
|
|
340,536 |
|
|
|
340,210 |
|
|
|
334,697 |
|
Non-income taxes |
|
|
1,653 |
|
|
|
1,698 |
|
|
|
3,221 |
|
EBITDA |
|
$ |
150,103 |
|
|
$ |
809,691 |
|
|
$ |
186,938 |
|
Adjustments: |
|
|
|
|
|
|
||||||
Other expenses, net (1) |
|
|
4,477 |
|
|
|
8,295 |
|
|
|
1,095 |
|
Integration expenses |
|
|
4,055 |
|
|
|
9,460 |
|
|
|
801 |
|
Change in fair value of Private Placement Warrants and Unvested Founder Shares |
|
|
(67,050 |
) |
|
|
(32,596 |
) |
|
|
(35,422 |
) |
Transaction-related expenses |
|
|
34,693 |
|
|
|
9,647 |
|
|
|
31,689 |
|
(Gain) loss on investments |
|
|
(289 |
) |
|
|
(25 |
) |
|
|
12,165 |
|
(Gain) loss on extinguishment of debt |
|
|
(34,551 |
) |
|
|
15,843 |
|
|
|
102,993 |
|
Loss on impairment of goodwill and intangible assets |
|
|
662,221 |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
|
15,083 |
|
|
|
18,010 |
|
|
|
406,054 |
|
Adjusted EBITDA |
|
$ |
768,742 |
|
|
$ |
838,325 |
|
|
$ |
706,313 |
|
| (1) | "Other expenses, net" represents miscellaneous non-recurring income, miscellaneous non-recurring expenses, gain or loss on disposal of assets, impairment of other assets, gain or loss on disposal of leases, tax penalties, and non-integration related severance costs. |
Calculation of Free Cash Flow, Unlevered Free Cash Flow and Adjusted Cash Conversion Ratio (in thousands) |
||||||||||||
|
|
Year Ended |
||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
|
$ |
372,364 |
|
|
$ |
404,687 |
|
|
$ |
377,374 |
|
Purchases of property and equipment |
|
|
(89,735 |
) |
|
|
(84,590 |
) |
|
|
(70,813 |
) |
Free Cash Flow |
|
|
282,629 |
|
|
|
320,097 |
|
|
|
306,561 |
|
Interest paid |
|
|
289,766 |
|
|
|
231,049 |
|
|
|
312,349 |
|
Unlevered Free Cash Flow |
|
$ |
572,395 |
|
|
$ |
551,146 |
|
|
$ |
618,910 |
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA |
|
$ |
768,742 |
|
|
$ |
838,325 |
|
|
$ |
706,313 |
|
Adjusted Cash Conversion Ratio |
|
|
74 |
% |
|
|
66 |
% |
|
|
88 |
% |
|
|
|
|
|
|
|
||||||
Net cash used in investing activities |
|
$ |
(104,446 |
) |
|
$ |
(228,379 |
) |
|
$ |
(210,845 |
) |
Net cash used in financing activities |
|
$ |
(115,738 |
) |
|
$ |
(114,684 |
) |
|
$ |
(61,599 |
) |
_______________
1 We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses (including expenses relating to the business combination), certain fair value measurements and costs related to the uncertainties caused by the global COVID-19 pandemic, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
2 Cash flow from operations guidance includes the impact of approximately
View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005477/en/
Investor Relations
SVP, Finance & Investor Relations
MultiPlan
866-909-7427
investor@multiplan.com
AVP, Investor Relations
MultiPlan
866-909-7427
investor@multiplan.com
Source:
FAQ
What were MultiPlan's Q4 2022 financial results?
What is MultiPlan's revenue guidance for 2023?
How much did MultiPlan repurchase in 5.75% Notes?
What was the impact of the No Surprises Act on MultiPlan?
What is the adjusted EBITDA guidance for MultiPlan in 2023?
