MultiPlan Reports Fourth Quarter and Full Year 2023 Results
- Strong Q4 2023 revenues of $244.1 million, with a slight increase from Q4 2022.
- Net loss of $31.4 million in Q4 2023, showing improvement compared to the previous year.
- Adjusted EBITDA of $156.8 million in Q4 2023, indicating operational efficiency.
- Full Year 2023 revenues of $961.5 million, with a decrease from the previous year.
- Identified potential medical cost savings of $5.9 billion in Q4 2023, showcasing growth.
- Deployment of cash for acquisitions, debt repurchases, and share repurchases in 2023.
- 2024 guidance includes revenues of $1,000 million to $1,030 million and adjusted EBITDA of $630 million to $650 million.
- None.
Insights
The reported financial results for MultiPlan Corporation, including the revenue growth in Q4 and the net loss figures for both the quarter and the full year, are significant indicators of the company's performance. The slight revenue increase in Q4 compared to the previous year suggests a stabilization in the company's operations. However, the year-over-year decrease in annual revenue and the substantial net losses are areas of concern. The adjusted EBITDA, while indicating operational profitability, has decreased from the previous year, highlighting potential challenges in cost management or revenue generation.
Investors would be interested in the company's debt reduction efforts, which are evident from the repurchase and repayment of debt. This reflects a strategic move to improve the balance sheet, which could be seen as a positive step towards financial stability. The cash flow and free cash flow figures are also critical, with a noticeable decrease from the previous year, possibly affecting the company's liquidity and investment capabilities.
The 2024 financial guidance showing projected revenue growth and a stable adjusted EBITDA range provides a forward-looking perspective which may influence investor sentiment. The anticipated interest expense and effective tax rate also offer insight into the company's expected financial burden and tax liabilities.
MultiPlan's strategic initiatives, such as the launch of new products and the acquisition of Benefits Science LLC, are aimed at enhancing their core services and diversifying revenue streams. These moves suggest an attempt to capture more market share in the rapidly growing segments such as Medicare Advantage and Medicaid. The partnership with ECHO Health, Inc., could be a strategic lever to expand into the healthcare payment services market.
From a market perspective, the company's focus on reducing medical costs and out-of-pocket expenses for healthcare consumers addresses a critical pain point in the U.S. healthcare system. The reported $22.9 billion in potential medical cost savings for 2023 indicates the company's impact on the industry and its value proposition to customers.
The ongoing service and product enhancements, along with the company's positioning to serve a large number of customers and providers, could potentially increase its market competitiveness and customer retention. However, the effectiveness of these strategies in driving long-term growth remains to be seen, particularly in light of the full-year revenue decline.
The financial results of MultiPlan Corporation reflect broader economic trends affecting the healthcare sector. The company's net loss and decreased revenue suggest it may be experiencing the effects of economic pressures such as rising costs or changes in healthcare spending. The focus on debt reduction and improving the financial position indicates an awareness of the need for fiscal prudence in uncertain economic times.
The identified potential medical cost savings highlight the company's role in addressing healthcare affordability, a significant economic issue. The ability to deliver cost savings is likely to remain a critical factor in the company's value proposition amidst ongoing healthcare debates and policy changes.
Looking ahead, the company's financial guidance for 2024, with a projected increase in revenues and a stable adjusted EBITDA, suggests a cautiously optimistic outlook. However, the broader economic environment, including factors like interest rates, inflation and healthcare policy changes, will play a crucial role in determining the company's actual performance against this guidance.
– Q4 2023 Revenues of
– Full Year 2023 Revenues of
– Identified potential medical cost savings of approximately
– In Full Year 2023, the Company deployed cash of
– Full Year 2024 Revenues guidance of
“As we close out 2023, I am very encouraged by the progress we have made toward our long-term goal of transforming our business,” said Dale White, CEO of MultiPlan. “Throughout the course of the year, we successfully executed on each of the initiatives under our new Growth Plan. We launched new products to enhance our core services, we established our new Data and Decision Science service line and accelerated the development of this line with the acquisition of BST, and we partnered with ECHO Health, Inc. to offer healthcare payment services. These and our other growth initiatives will help us expand our presence in faster-growing market segments, including Medicare Advantage, Medicaid, third-party administrator, and direct-to-employer, and set us on a path to diversify our revenues by market, customer and product.”
“Further, in 2023 we took steps to put our business on stronger footing by reducing our risk and improving our financial position,” added Mr. White. “We delivered on our expectation to resume growth in the second half and improved the visibility of our revenues, following the renewal of our contracts with our larger customers earlier in the year. We have also continued to reduce our debt, repurchasing and repaying
“As we look forward to 2024,” Mr. White continued, “we are excited to welcome our new CEO, Travis Dalton, to the Company. Travis is precisely the right leader to guide us through the next chapter of our transformation, and he shares our confidence that our strategy for unlocking the value of our franchise through product diversification and new markets penetration will drive accelerated growth in 2024 and will amplify our growth trajectory in 2025 and beyond.”
Mr. White concluded, “We remain incredibly proud of the critical role MultiPlan plays in the
Business and Financial Highlights
-
Revenues of
$244.1 million 1.3% over Q4 2022 revenues of$241.1 million
-
Net loss of
$31.4 million $650.1 million
-
Adjusted EBITDA of
$156.8 million $161.5 million
-
Revenues of
$961.5 million 10.9% over full year 2022 revenues of$1,079.7 million
-
Net loss for full year 2023 of
$91.7 million $572.9 million
-
Adjusted EBITDA of
$618.0 million $768.7 million
-
Net cash provided by operating activities of
$171.7 million $372.4 million
-
Free Cash Flow of
$62.9 million $282.6 million
-
In Q4 2023, the Company used
$17.6 million $25 million 6.0% Senior Convertible PIK Notes and used$2.0 million $71.5 million
-
The Company processed
$43.4 billion $5.9 billion $168.6 billion $22.9 billion $155.2 billion $22.3 billion
2024 Financial Guidance1
Financial Metric |
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|
Full Year 2024 Guidance |
Revenues |
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|
|
Adjusted EBITDA1 |
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|
|
Interest expense |
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|
|
Cash flow from operations |
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|
|
Capital expenditures |
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Depreciation |
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Amortization of intangible assets |
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Effective tax rate |
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The Company anticipates Q1 2024 revenues between
Conference Call Information
The Company will host a conference call today, Thursday, February 29, 2024 at 8:00 a.m.
To pre-register, go to: https://www.netroadshow.com/events/login?show=e463e890&confId=59576
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, a replay will be available approximately two hours after the call through the archived webcast on the Investor Relations section of the Company’s website. For those requiring operator assistance please dial (404) 975-4839 or (833) 470-1428. The access code is 925922.
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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, 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. |
About MultiPlan
MultiPlan is committed to delivering affordability, efficiency, and fairness to the US healthcare system by 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, and data and decision science services. MultiPlan is a trusted partner to over 700 healthcare payors, brokers, employer groups, and supplemental carriers 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 2024 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: loss of our customers, particularly our largest customers; interruptions or security breaches of our information technology systems and other cybersecurity attacks; the ability to achieve the goals of our strategic plans and recognize the anticipated strategic, operational, growth and efficiency benefits when expected; our ability to enter new lines of business and broaden the scope of our services; the loss of key members of our management team or inability to maintain sufficient qualified personnel; our ability to continue to attract, motivate and retain a large number of skilled employees, and adapt to the effects of inflationary pressure on wages; 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 December 31, 2022 and our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023, and other documents filed or to be filed with the SEC by us. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
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.
MULTIPLAN CORPORATION |
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Consolidated Balance Sheets |
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(in thousands, except share and per share data) |
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December 31, |
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|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
71,547 |
|
|
$ |
334,046 |
|
Restricted cash |
|
9,947 |
|
|
|
6,513 |
|
Trade accounts receivable, net |
|
76,558 |
|
|
|
78,907 |
|
Prepaid expenses |
|
23,432 |
|
|
|
22,244 |
|
Prepaid taxes |
|
1,364 |
|
|
|
1,351 |
|
Other current assets, net |
|
10,745 |
|
|
|
3,676 |
|
Total current assets |
|
193,593 |
|
|
|
446,737 |
|
Property and equipment, net |
|
267,429 |
|
|
|
232,835 |
|
Operating lease right-of-use assets |
|
19,680 |
|
|
|
24,237 |
|
Goodwill |
|
3,829,002 |
|
|
|
3,705,199 |
|
Other intangibles, net |
|
2,633,207 |
|
|
|
2,940,201 |
|
Other assets, net |
|
21,776 |
|
|
|
21,895 |
|
Total assets |
$ |
6,964,687 |
|
|
$ |
7,371,104 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
19,590 |
|
|
$ |
13,295 |
|
Accrued interest |
|
56,827 |
|
|
|
57,982 |
|
Operating lease obligation, short-term |
|
4,792 |
|
|
|
6,363 |
|
Current portion of long-term debt |
|
13,250 |
|
|
|
13,250 |
|
Accrued compensation |
|
44,720 |
|
|
|
34,568 |
|
Accrued legal contingencies |
|
12,123 |
|
|
|
33,923 |
|
Other accrued expenses |
|
15,437 |
|
|
|
16,463 |
|
Total current liabilities |
|
166,739 |
|
|
|
175,844 |
|
Long-term debt |
|
4,532,733 |
|
|
|
4,741,856 |
|
Operating lease obligation, long-term |
|
17,124 |
|
|
|
20,894 |
|
Private Placement Warrants and Unvested Founder Shares |
|
477 |
|
|
|
2,442 |
|
Deferred income taxes |
|
521,707 |
|
|
|
639,498 |
|
Other liabilities |
|
16,783 |
|
|
|
28 |
|
Total liabilities |
|
5,255,563 |
|
|
|
5,580,562 |
|
Commitments and contingencies (Note 13) |
|
|
|
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Shareholders’ equity: |
|
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|
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Shareholder interests |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
67 |
|
|
|
67 |
|
Additional paid-in capital |
|
2,348,505 |
|
|
|
2,330,444 |
|
Accumulated other comprehensive loss |
|
(11,778 |
) |
|
|
— |
|
Retained deficit |
|
(499,307 |
) |
|
|
(347,800 |
) |
Treasury stock — 19,488,917 and 27,117,406 shares |
|
(128,363 |
) |
|
|
(192,169 |
) |
Total shareholders’ equity |
|
1,709,124 |
|
|
|
1,790,542 |
|
Total liabilities and shareholders’ equity |
$ |
6,964,687 |
|
|
$ |
7,371,104 |
|
MULTIPLAN CORPORATION |
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Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income |
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(in thousands, except share and per share data) |
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Years Ended December 31, |
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|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
$ |
961,524 |
|
|
$ |
1,079,716 |
|
|
$ |
1,117,602 |
|
Costs of services (exclusive of depreciation and amortization of intangible assets shown below) |
|
|
235,468 |
|
|
|
204,098 |
|
|
|
175,292 |
|
General and administrative expenses |
|
|
144,057 |
|
|
|
166,837 |
|
|
|
151,095 |
|
Depreciation |
|
|
77,323 |
|
|
|
68,756 |
|
|
|
64,885 |
|
Amortization of intangible assets |
|
|
342,694 |
|
|
|
340,536 |
|
|
|
340,210 |
|
Loss on impairment of goodwill and intangible assets |
|
|
— |
|
|
|
662,221 |
|
|
|
— |
|
Total expenses |
|
|
799,542 |
|
|
|
1,442,448 |
|
|
|
731,482 |
|
Operating income (loss) |
|
|
161,982 |
|
|
|
(362,732 |
) |
|
|
386,120 |
|
Interest expense |
|
|
333,208 |
|
|
|
303,401 |
|
|
|
267,475 |
|
Interest income |
|
|
(8,233 |
) |
|
|
(3,500 |
) |
|
|
(30 |
) |
(Gain) loss on extinguishment of debt |
|
|
(53,968 |
) |
|
|
(34,551 |
) |
|
|
15,843 |
|
Gain on investments |
|
|
— |
|
|
|
(289 |
) |
|
|
(25 |
) |
Gain on change in fair value of Private Placement Warrants and Unvested Founder Shares |
|
|
(1,965 |
) |
|
|
(67,050 |
) |
|
|
(32,596 |
) |
Net (loss) income before taxes |
|
|
(107,060 |
) |
|
|
(560,743 |
) |
|
|
135,453 |
|
(Benefit) provision for income taxes |
|
|
(15,363 |
) |
|
|
12,169 |
|
|
|
33,373 |
|
Net (loss) income |
|
$ |
(91,697 |
) |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
|
|
|
|
|
|
|
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Weighted average shares outstanding – Basic |
|
|
645,134,657 |
|
|
|
638,925,689 |
|
|
|
651,006,567 |
|
Weighted average shares outstanding – Diluted |
|
|
645,134,657 |
|
|
|
638,925,689 |
|
|
|
651,525,791 |
|
|
|
|
|
|
|
|
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Net (loss) income per share – Basic |
|
$ |
(0.14 |
) |
|
$ |
(0.90 |
) |
|
$ |
0.16 |
|
Net (loss) income per share – Diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.90 |
) |
|
$ |
0.16 |
|
|
|
|
|
|
|
|
||||||
Net (loss) income |
|
$ |
(91,697 |
) |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
Other comprehensive income: |
|
|
|
|
|
|
||||||
Unrealized loss on interest rate swap, net of tax |
|
|
(11,778 |
) |
|
|
— |
|
|
$ |
— |
|
Comprehensive (loss) income |
|
$ |
(103,475 |
) |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
MULTIPLAN CORPORATION |
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Consolidated Statements of Cash Flows |
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(in thousands) |
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Years Ended December 31, |
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|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
|
|
||||||
Net (loss) income |
$ |
(91,697 |
) |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
||||||
Depreciation |
|
77,323 |
|
|
|
68,756 |
|
|
|
64,885 |
|
Amortization of intangible assets |
|
342,694 |
|
|
|
340,536 |
|
|
|
340,210 |
|
Amortization of the right-of-use asset |
|
5,769 |
|
|
|
6,367 |
|
|
|
6,963 |
|
Loss on impairment of goodwill and intangible assets |
|
— |
|
|
|
662,221 |
|
|
|
— |
|
Stock-based compensation |
|
18,018 |
|
|
|
16,739 |
|
|
|
18,010 |
|
Deferred income taxes |
|
(114,060 |
) |
|
|
(114,378 |
) |
|
|
(81,929 |
) |
Amortization of debt issuance costs and discounts |
|
10,663 |
|
|
|
10,539 |
|
|
|
12,259 |
|
(Gain) loss on extinguishment of debt |
|
(53,968 |
) |
|
|
(34,551 |
) |
|
|
15,843 |
|
Gain on equity investments |
|
— |
|
|
|
(289 |
) |
|
|
— |
|
Loss on disposal of property and equipment |
|
851 |
|
|
|
1,051 |
|
|
|
2,991 |
|
Change in fair value of Private Placement Warrants and Unvested Founder Shares |
|
(1,965 |
) |
|
|
(67,050 |
) |
|
|
(32,596 |
) |
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: |
|
|
|
|
|
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Accounts receivable, net |
|
4,402 |
|
|
|
20,998 |
|
|
|
(33,826 |
) |
Prepaid expenses and other assets |
|
(6,615 |
) |
|
|
2,795 |
|
|
|
(6,952 |
) |
Prepaid taxes |
|
(13 |
) |
|
|
3,713 |
|
|
|
(5,064 |
) |
Operating lease obligation |
|
(6,601 |
) |
|
|
(6,520 |
) |
|
|
(5,900 |
) |
Accounts payable and accrued expenses and other |
|
(13,081 |
) |
|
|
34,349 |
|
|
|
7,713 |
|
Net cash provided by operating activities |
|
171,720 |
|
|
|
372,364 |
|
|
|
404,687 |
|
Investing activities: |
|
|
|
|
|
||||||
Purchases of property and equipment |
|
(108,852 |
) |
|
|
(89,735 |
) |
|
|
(84,590 |
) |
Proceeds from sale of investment |
|
— |
|
|
|
289 |
|
|
|
5,641 |
|
Purchase of equity investments |
|
— |
|
|
|
(15,000 |
) |
|
|
— |
|
BST Acquisition, net of cash acquired |
|
(140,940 |
) |
|
|
— |
|
|
|
— |
|
HST Acquisition, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
246 |
|
DHP Acquisition, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(149,676 |
) |
Net cash used in investing activities |
|
(249,792 |
) |
|
|
(104,446 |
) |
|
|
(228,379 |
) |
Financing activities: |
|
|
|
|
|
||||||
Repayments of Term Loan G |
|
— |
|
|
|
— |
|
|
|
(2,341,000 |
) |
Repayments of Term Loan B |
|
(13,250 |
) |
|
|
(13,250 |
) |
|
|
(3,313 |
) |
Repurchase of |
|
(134,975 |
) |
|
|
(99,999 |
) |
|
|
— |
|
Repurchase of Senior Convertible PIK Notes |
|
(17,563 |
) |
|
|
— |
|
|
|
— |
|
Issuance of Term Loan B |
|
— |
|
|
|
— |
|
|
|
1,298,930 |
|
Issuance of |
|
— |
|
|
|
— |
|
|
|
1,034,520 |
|
Taxes paid on settlement of vested share awards |
|
(465 |
) |
|
|
(2,463 |
) |
|
|
(3,789 |
) |
MULTIPLAN CORPORATION |
|||||||||||
|
|||||||||||
Consolidated Statements of Cash Flows Continued |
|||||||||||
(in thousands) |
|||||||||||
|
Years Ended December 31, |
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Purchase of treasury stock |
|
(15,218 |
) |
|
|
— |
|
|
|
(100,000 |
) |
Borrowings on finance leases, net |
|
(30 |
) |
|
|
(26 |
) |
|
|
(32 |
) |
Proceeds from issuance of common stock under Employee Stock Purchase Plan |
|
508 |
|
|
|
— |
|
|
|
— |
|
Net cash used in financing activities |
|
(180,993 |
) |
|
|
(115,738 |
) |
|
|
(114,684 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(259,065 |
) |
|
|
152,180 |
|
|
|
61,624 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
340,559 |
|
|
|
188,379 |
|
|
|
126,755 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
81,494 |
|
|
$ |
340,559 |
|
|
$ |
188,379 |
|
|
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
71,547 |
|
|
$ |
334,046 |
|
|
$ |
185,328 |
|
Restricted cash |
|
9,947 |
|
|
|
6,513 |
|
|
|
3,051 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
81,494 |
|
|
$ |
340,559 |
|
|
$ |
188,379 |
|
|
|
|
|
|
|
||||||
Noncash investing and financing activities: |
|
|
|
|
|
||||||
Purchases of property and equipment not yet paid |
$ |
8,649 |
|
|
$ |
4,784 |
|
|
$ |
5,930 |
|
Operating lease right-of-use assets obtained in exchange for operating lease liabilities |
$ |
1,304 |
|
|
$ |
3,631 |
|
|
$ |
6,880 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
||||||
Cash paid during the period for: |
|
|
|
|
|
||||||
Interest |
$ |
(323,396 |
) |
|
$ |
(289,766 |
) |
|
$ |
(231,049 |
) |
Income taxes, net of refunds |
$ |
(100,083 |
) |
|
$ |
(124,082 |
) |
|
$ |
(131,517 |
) |
MULTIPLAN CORPORATION |
||||||||||||
|
||||||||||||
Calculation of EBITDA and Adjusted EBITDA |
||||||||||||
(in thousands) |
||||||||||||
|
|
Year Ended December 31, |
||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
||||||
Net (loss) income |
|
$ |
(91,697 |
) |
|
$ |
(572,912 |
) |
|
$ |
102,080 |
|
Adjustments: |
|
|
|
|
|
|
||||||
Interest expense |
|
|
333,208 |
|
|
|
303,401 |
|
|
|
267,475 |
|
Interest income |
|
|
(8,233 |
) |
|
|
(3,500 |
) |
|
|
(30 |
) |
Income tax provision (benefit) |
|
|
(15,363 |
) |
|
|
12,169 |
|
|
|
33,373 |
|
Depreciation |
|
|
77,323 |
|
|
|
68,756 |
|
|
|
64,885 |
|
Amortization of intangible assets |
|
|
342,694 |
|
|
|
340,536 |
|
|
|
340,210 |
|
Non-income taxes |
|
|
2,283 |
|
|
|
1,653 |
|
|
|
1,698 |
|
EBITDA |
|
$ |
640,215 |
|
|
$ |
150,103 |
|
|
$ |
809,691 |
|
Adjustments: |
|
|
|
|
|
|
||||||
Other expenses, net (1) |
|
|
4,323 |
|
|
|
4,477 |
|
|
|
8,295 |
|
Integration expenses |
|
|
3,358 |
|
|
|
4,055 |
|
|
|
9,460 |
|
Change in fair value of Private Placement Warrants and Unvested Founder Shares |
|
|
(1,965 |
) |
|
|
(67,050 |
) |
|
|
(32,596 |
) |
Transaction-related expenses |
|
|
8,064 |
|
|
|
34,693 |
|
|
|
9,647 |
|
Gain on investments |
|
|
— |
|
|
|
(289 |
) |
|
|
(25 |
) |
(Gain) loss on extinguishment of debt |
|
|
(53,968 |
) |
|
|
(34,551 |
) |
|
|
15,843 |
|
Loss on impairment of goodwill and intangible assets |
|
|
— |
|
|
|
662,221 |
|
|
|
— |
|
Stock-based compensation |
|
|
18,018 |
|
|
|
15,083 |
|
|
|
18,010 |
|
Adjusted EBITDA |
|
$ |
618,045 |
|
|
$ |
768,742 |
|
|
$ |
838,325 |
|
(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 December 31, |
||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
|
$ |
171,720 |
|
|
$ |
372,364 |
|
|
$ |
404,687 |
|
Purchases of property and equipment |
|
|
(108,852 |
) |
|
|
(89,735 |
) |
|
|
(84,590 |
) |
Free Cash Flow |
|
|
62,868 |
|
|
|
282,629 |
|
|
|
320,097 |
|
Interest paid |
|
|
323,396 |
|
|
|
289,766 |
|
|
|
231,049 |
|
Unlevered Free Cash Flow |
|
$ |
386,264 |
|
|
$ |
572,395 |
|
|
$ |
551,146 |
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA |
|
$ |
618,045 |
|
|
$ |
768,742 |
|
|
$ |
838,325 |
|
Adjusted Cash Conversion Ratio |
|
|
62 |
% |
|
|
74 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
||||||
Net cash used in investing activities |
|
$ |
(249,792 |
) |
|
$ |
(104,446 |
) |
|
$ |
(228,379 |
) |
Net cash used in financing activities |
|
$ |
(180,993 |
) |
|
$ |
(115,738 |
) |
|
$ |
(114,684 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229642362/en/
Investor Relations Contact
Luke
SVP, Finance & Investor Relations
MultiPlan
866-909-7427
investor@multiplan.com
Shawna Gasik
AVP, Investor Relations
MultiPlan
866-909-7427
investor@multiplan.com
Source: MultiPlan Corporation
FAQ
What were MultiPlan Corporation's Q4 2023 revenues?
What was the net loss in Q4 2023 for MultiPlan Corporation?
What was MultiPlan Corporation's adjusted EBITDA in Q4 2023?
What were the full year 2023 revenues for MultiPlan Corporation?
What was the potential medical cost savings identified by MultiPlan Corporation in Q4 2023?
What is MultiPlan Corporation's revenue guidance for full year 2024?
What is MultiPlan Corporation's adjusted EBITDA guidance for full year 2024?
