– Q4 2021 Revenues of $298.3 million, Net Income of $24.9
million and Adjusted EBITDA of $223.6 million
– Full Year 2021 Revenues of $1,117.6 million, Net Income of
$102.1 million and Adjusted EBITDA of $838.3 million
– Growth driven by increased volumes and strong savings
performance across all lines of business resulting in increased
potential medical cost savings of 17% over 2020; 9% adjusted for
HST acquisition
– Full Year 2022 revenue guidance of $1,160 million to $1,200
million and Adjusted EBITDA guidance of $850 million to $875
million
MultiPlan Corporation (“MultiPlan” or the “Company”) (NYSE:
MPLN), a leading value-added provider of data analytics and
technology-enabled end-to-end cost management, payment and revenue
integrity solutions to the U.S. healthcare industry, today reported
financial results for the fourth quarter and full year ended
December 31, 2021.
“We are incredibly proud of the critical role MultiPlan
continues to play in the U.S. healthcare system, generating
billions of dollars in savings for payors, employers and consumers.
The fourth quarter of 2021 was the capstone on one of the most
successful years in MultiPlan’s history, during which we set new
records in savings for our customers and delivered exceptional
growth, demonstrating the strength and resiliency of our business
model in a challenging operating environment,” said Dale White, CEO
of MultiPlan. “Our operating assets and platform, deep domain
knowledge, extensive connectivity and customizable capabilities
reinforce our unique value in the marketplace and offer a
significant competitive advantage as we continue to invest to grow
our business and meet the changing needs of our customers.”
The Company remains focused on its mission of delivering
affordability, efficiency and fairness to the U.S. healthcare
system and driving sustained long-term growth by enhancing its
existing product offerings, extending into new payor customer
segments, and expanding its market-leading platform to include new
business models that deliver value-added services for providers,
payors and healthcare consumers.
Business and Financial Highlights
- Revenues of $298.3 million for Q4 2021, an increase of 16.8%
over Q4 2020 revenues of $255.3 million.
- Net income of $24.9 million for Q4 2021, compared to net loss
of $173.3 million for Q4 2020.
- Adjusted EBITDA of $223.6 million for Q4 2021, compared to
$195.1 million for Q4 2020.
- Revenues of $1,117.6 million for full year 2021, an increase of
19.2% over full year 2020 revenues of $937.8 million for full
year.
- Net income for full year 2021 of $102.1 million compared to net
loss of $520.6 million for full year 2020.
- Adjusted EBITDA of $838.3 million for full year 2021, compared
to $706.3 million for full year 2020.
- Net cash provided by operating activities of $404.7 million for
full year 2021, compared to $377.4 million for full year 2020.
- Free Cash Flow of $320.1 million for full year 2021, compared
to $306.6 million for full year 2020.
- The Company processed $32.2 billion in claims during the fourth
quarter 2021, identifying potential medical cost savings of
approximately $5.7 billion. For the year ended December 31, 2021,
the Company processed approximately $120.7 billion in claims and
identified approximately $21.7 billion in potential medical cost
savings compared to $101.7 billion claims and approximately $18.6
billion in potential medical cost savings for the year ended
December 31, 2020.
The fourth quarter 2021 results reflect an estimated
COVID-related revenue impact of $5-7 million and an estimated
COVID-related Adjusted EBITDA impact of $4-6 million, as compared
to an estimated COVID-related revenue impact of $12-16 million and
an estimated COVID-related Adjusted EBITDA impact of $12-14 million
in Q4 2020.
The full year 2021 results reflect an estimated COVID-related
revenue impact of $40-50 million and an estimated COVID-related
Adjusted EBITDA impact of $32-40 million, as compared to an
estimated COVID-related revenue impact of $100-110 million and an
estimated COVID-related Adjusted EBITDA impact of $80-90 million
for full year 2020.
2022 Financial Guidance
Financial Metric
Full Year 2022
Guidance
Revenues
$1,160 million to $1,200 million
Adj. EBITDA
$850 million to $875 million
Cash flow from operations
$380 million to $420 million
Capital expenditures
$90 million to $100 million
Interest expense
$280 million to $290 million
Depreciation
$65 million to $70 million
Amortization of intangible assets
$335 million to $345 million
Effective tax rate
25% to 28%
The above annual guidance assumes an estimated COVID-related
revenue impact of approximately $25-30 million and an estimated
COVID-related Adjusted EBITDA impact of approximately $20-24
million for full year 2022. The Company anticipates Q1 2022
revenues between $280 million and $295 million and Adjusted EBITDA
between $210 million and $220 million.
The Company will host a conference call today, Thursday,
February 17, 2022 at 8:00 a.m. U.S. Eastern Time (ET) to discuss
its financial results. To access the conference call, please
register using the link below:
https://www.incommglobalevents.com/registration/q4inc/9727/multiplan-corporation-fourth-quarter-2021-earnings-conference-call/
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. A supplemental slide deck will also be available
on this section of the MultiPlan 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 32573.
About MultiPlan
MultiPlan is a leading provider of data analytics and
technology-enable solutions designed to bring affordability,
efficiency and fairness to the U.S. healthcare industry. We do so
through services focused on reducing medical cost and improving
billing and payment accuracy for the payors of healthcare, which
are health insurers, self-insured employers and other health plan
sponsors (typically through their health plan administrators), and,
indirectly, the plan members who are the consumers of healthcare
services. 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 2022 outlook, guidance and impact of The No Surprises Act, and
these forward-looking statements reflect management’s expectations
regarding our future growth, results of operations, operational and
financial performance and business prospects and opportunities.
Such forward-looking statements are based on available current
market material 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 many factors could affect our actual financial results,
including: the impact from the COVID-19 pandemic and its related
effects on our projected results of operations, financial
performance or other financial metrics; loss of our customers,
particularly our largest customers; decreases in our existing
market share or the size of our Preferred Provider Organization
networks; effects of competition; effects of pricing pressure; the
inability of our customers to pay for our services; decreases in
discounts from providers; the loss of our existing relationships
with providers; the loss of key members of our management team;
pressure to limit access to preferred provider networks; 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 identify, complete and
successfully integrate acquisitions; changes in our industry;
interruptions or security breaches of our information technology
systems; our ability to protect proprietary applications; our
inability to expand our network infrastructure; our ability to
remediate any material weakness or maintain effective internal
controls over financial reporting; changes in our regulatory
environment, including healthcare law and regulations; the
expansion of privacy and security laws; heightened enforcement
activity by government agencies; our ability to pay interest and
principal on our notes and other indebtedness; the possibility that
we may be adversely affected by other political, economic,
business, and/or competitive factors; other factors disclosed in
our Securities and Exchange Commission (“SEC”) filings; and other
factors beyond our control.
The forward-looking statements contained in this press release
are based on our current expectations and beliefs concerning future
developments and 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, 2020 and our Quarterly Report on Form 10-Q for
the fiscal quarter ended September 30, 2021, including those under
“Risk Factors” therein, 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. Forward-looking
statements speak only as of the date made. 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 the United States
(“GAAP”), this press release contains certain non-GAAP financial
measures, including EBITDA, Adjusted EBITDA, Free Cash Flow,
Unlevered Free Cash Flow and Adjusted cash conversion ratio. A
non-GAAP financial measure is generally defined as a numerical
measure of a company’s financial or operating performance that
excludes or includes amounts so as to be different than the most
directly comparable measure calculated and presented in accordance
with GAAP.
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 income (loss), cash flows or any other measures
of performance prepared in accordance with GAAP.
EBITDA represents net income (loss) 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 a financial performance
measure that shows how much of its Adjusted EBITDA MultiPlan
converts into Unlevered Free Cash Flow.
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.
MULTIPLAN CORPORATION
Consolidated Balance
Sheets
(in thousands, except share and
per share data)
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
185,328
$
126,755
Restricted cash
3,051
—
Trade accounts receivable, net
99,905
63,198
Prepaid expenses
24,910
17,708
Prepaid taxes
5,064
—
Other current assets, net
999
1,193
Total current assets
319,257
208,854
Property and equipment, net
213,238
187,631
Operating lease right-of-use assets
30,104
31,339
Goodwill
4,363,070
4,257,336
Other intangibles, net
3,285,037
3,584,187
Other assets
9,701
14,231
Total assets
$
8,220,407
$
8,283,578
Liabilities and Shareholders’
Equity
Current liabilities:
Accounts payable
$
13,005
$
15,261
Accrued interest
55,685
31,528
Accrued taxes
—
10,176
Operating lease obligation, short-term
6,883
6,439
Current portion of long-term debt
13,250
—
Accrued compensation
25,419
21,843
Other accrued expenses
27,666
27,251
Total current liabilities
141,908
112,498
Long-term debt
4,879,144
4,578,488
Operating lease obligation, long-term
26,725
27,499
Private Placement Warrants and unvested
founder shares
74,000
106,595
Deferred income taxes
753,825
900,633
Other liabilities
135
—
Total liabilities
5,875,737
5,725,713
Commitments and contingencies (Note
13)
Shareholders’ equity:
Shareholder interests
Preferred stock, $0.0001 par value —
10,000,000 shares authorized; no shares issued
—
—
Common stock, $0.0001 par value —
1,500,000,000 shares authorized; 665,456,180 and 664,183,318
issued; 638,338,774 and 655,075,355 shares outstanding
67
66
Additional paid-in capital
2,311,660
2,530,410
Retained earnings
225,112
116,999
Treasury stock — 27,117,406 and 9,107,963
shares
(192,169
)
(89,610
)
Total shareholders’ equity
2,344,670
2,557,865
Total liabilities and shareholders’
equity
$
8,220,407
$
8,283,578
MULTIPLAN CORPORATION
Consolidated Statements of
Income (Loss) and Comprehensive Income (Loss)
(in thousands, except share and
per share data)
Years Ended December
31,
2021
2020
2019
Revenues
$
1,117,602
$
937,763
$
982,901
Costs of services (exclusive of
depreciation and amortization of intangible assets shown below)
175,292
318,675
149,607
General and administrative expenses
151,095
355,635
75,225
Depreciation
64,885
60,577
55,807
Amortization of intangible assets
340,210
334,697
334,053
Total expenses
731,482
1,069,584
614,692
Operating income (loss)
386,120
(131,821
)
368,209
Interest expense
267,475
335,638
376,346
Interest income
(30
)
(288
)
(196
)
Loss (gain) on extinguishment of debt
15,843
102,993
(18,450
)
(Gain) loss on investments
(25
)
12,165
—
Change in fair value of Private Placement
Warrants and unvested founder shares
(32,596
)
(35,422
)
—
Net income (loss) before taxes
135,453
(546,907
)
10,509
Provision (benefit) for income taxes
33,373
(26,343
)
799
Net income (loss)
$
102,080
$
(520,564
)
$
9,710
Weighted average shares outstanding –
Basic(1)
651,006,567
470,785,192
415,700,000
Weighted average shares outstanding –
Diluted
651,525,791
470,785,192
415,700,000
Net income (loss) per share – Basic
$
0.16
$
(1.11
)
$
0.02
Net income (loss) per share – Diluted
$
0.16
$
(1.11
)
$
0.02
Comprehensive income (loss)
$
102,080
$
(520,564
)
$
9,710
1 In accordance with the accounting
guidance, the number of shares outstanding prior to the business
combination of Polaris Parent Corp. and Churchill Capital Corp III
(the “Transactions”) was 415,700,000, which represents the 10
historical shares of Polaris Parent Corp. multiplied by the
exchange ratio established in the Transactions (41,570,000:1). At
the date of the Transactions, the number of shares outstanding
increased to 655,057,192. The increase represents the shares issued
by Churchill Capital Corp III prior to the Transactions and the
shares issued to PIPE investors at the time of the Transactions,
net of shares redeemed and held in treasury upon closing.
MULTIPLAN CORPORATION
Consolidated Statements of
Cash Flows
(in thousands)
Years Ended December
31,
2021
2020
2019
Operating activities:
Net income (loss)
$
102,080
$
(520,564
)
$
9,710
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation
64,885
60,577
55,807
Amortization of intangible assets
340,210
334,697
334,053
Amortization of the right-of-use asset
6,963
8,405
9,594
Stock-based compensation
18,010
406,054
(14,880
)
Deferred income taxes
(81,929
)
(45,041
)
(111,404
)
Non-cash interest costs
12,259
22,888
13,368
Loss on extinguishment of debt
15,843
102,993
(18,450
)
Loss on equity investments
—
12,165
—
Loss on disposal of property and
equipment
2,991
610
163
Change in fair value of Private Placement
Warrants and unvested founder shares
(32,596
)
(35,422
)
—
Changes in assets and liabilities, net of
assets acquired and liabilities assumed from acquisitions:
Accounts receivable, net
(33,826
)
14,758
5,279
Prepaid expenses and other assets
(6,952
)
(7,480
)
(8,822
)
Prepaid taxes
(5,064
)
2,130
(1,426
)
Operating lease obligation
(5,900
)
(8,461
)
(9,462
)
Accounts payable and accrued expenses and
other
7,713
29,065
20,783
Net cash provided by operating
activities
404,687
377,374
284,313
Investing activities:
Purchases of property and equipment
(84,590
)
(70,813
)
(66,414
)
Proceeds from sale of investment
5,641
—
—
Purchase of equity investments
—
—
—
HST Acquisition, net of cash acquired
246
(140,032
)
—
DHP Acquisition, net of cash acquired
(149,676
)
—
—
Net cash used in investing activities
(228,379
)
(210,845
)
(66,414
)
Financing activities:
Repayments of Term Loan G
(2,341,000
)
(369,000
)
(100,000
)
Extinguishment of 7.125% Notes
—
(1,615,583
)
—
Extinguishment of Senior PIK Notes
—
(1,202,302
)
(101,013
)
Issuance of Senior Convertible PIK
Notes
—
1,267,500
—
Issuance of 5.750% Notes
—
1,300,000
—
Repayments of Term Loan B
(3,313
)
—
—
Issuance of Term Loan B
1,298,930
—
—
Issuance of 5.50% Senior Secured Notes
1,034,520
—
—
Taxes paid on settlement of vested share
awards
(3,789
)
—
—
Borrowings on revolving credit
facility
—
98,000
—
Repayment of revolving credit facility
—
(98,000
)
—
Effect of the Transactions
—
682,408
—
MULTIPLAN CORPORATION
Consolidated Statements of
Cash Flows Continued
(in thousands)
Years Ended December
31,
2021
2020
2019
Purchase of treasury stock
(100,000
)
(101,123
)
—
Payment of debt issuance costs
—
(23,489
)
—
Borrowings on finance leases, net
(32
)
(10
)
(75
)
Net cash used in financing activities
(114,684
)
(61,599
)
(201,088
)
Net increase in cash, cash equivalents and
restricted cash
61,624
104,930
16,811
Cash, cash equivalents and restricted cash
at beginning of period
126,755
21,825
5,014
Cash, cash equivalents and restricted cash
at end of period
$
188,379
$
126,755
$
21,825
Cash and cash equivalents
$
185,328
$
126,755
$
21,825
Restricted cash
3,051
—
—
Cash, cash equivalents and restricted cash
at end of period
$
188,379
$
126,755
$
21,825
Noncash investing and financing
activities:
Purchases of property and equipment not
yet paid
$
5,930
$
4,334
$
3,768
Operating lease right-of-use assets
obtained in exchange for operating lease liabilities
$
6,880
$
10,210
$
4,000
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest
$
(231,049
)
$
(312,349
)
$
(363,907
)
Income taxes, net of refunds
$
(131,517
)
$
(3,917
)
$
(114,569
)
MULTIPLAN CORPORATION
Calculation of EBITDA and
Adjusted EBITDA
(in thousands)
Year Ended December
31,
2021
2020
2019
Net income (loss)
$
102,080
$
(520,564
)
$
9,710
Adjustments:
Interest expense
267,475
335,638
376,346
Interest income
(30
)
(288
)
(196
)
Income tax provision (benefit)
33,373
(26,343
)
799
Depreciation
64,885
60,577
55,807
Amortization of intangible assets
340,210
334,697
334,053
Non-income taxes
1,698
3,221
1,944
EBITDA
$
809,691
$
186,938
$
778,463
Adjustments:
Other expenses
8,295
1,095
1,947
Integration expenses
9,460
801
—
Change in fair value of Private Placement
Warrants and unvested founder shares
(32,596
)
(35,422
)
—
Transaction-related expenses
9,647
31,689
3,270
(Gain) loss on investments
(25
)
12,165
—
Loss (gain) on extinguishment of debt
15,843
102,993
(18,450
)
Stock-based compensation
18,010
406,054
(14,880
)
Adjusted EBITDA
$
838,325
$
706,313
$
750,350
Calculation of Free Cash Flow,
Unlevered Free Cash Flow and Adjusted Cash Conversion Ratio
(in thousands)
Year Ended December
31,
2021
2020
2019
Net cash provided by operating
activities
$
404,687
$
377,374
$
284,313
Purchases of property and equipment
(84,590
)
(70,813
)
(66,414
)
Free Cash Flow
320,097
306,561
217,899
Interest paid
231,049
312,349
363,907
Unlevered Free Cash Flow
$
551,146
$
618,910
$
581,806
Adjusted EBITDA
$
838,325
$
706,313
$
750,350
Adjusted Cash Conversion Ratio
66
%
88
%
78
%
Net cash used in investing activities
$
(228,379
)
$
(210,845
)
$
(66,414
)
Net cash used in financing activities
$
(114,684
)
$
(61,599
)
$
(201,088
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220217005278/en/
Investor Relations Luke Montgomery, CFA SVP, Finance
& Investor Relations MultiPlan 866-909-7427
investor@multiplan.com
Shawna Gasik AVP, Investor Relations MultiPlan 866-909-7427
investor@multiplan.com
Media Relations Pamela Walker Senior Director, Marketing
& Communications MultiPlan 781-895-3118 press@multiplan.com
Churchill Capital Corp III (NYSE:MPLN)
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From Feb 2024 to Mar 2024
Churchill Capital Corp III (NYSE:MPLN)
Historical Stock Chart
From Mar 2023 to Mar 2024