Q1 2022 Revenues of $298.0 million, Net Income of $44.0 million, and Adjusted EBITDA of $225.4 million
Growth in revenues of 16.9% over Q1 2021, driven by an increase in identified potential medical cost savings to approximately $5.6 billion in Q1 2022
May 10, 2022 – MultiPlan Corporation (NYSE:MPLN) (“MultiPlan” or the “Company”), a leading value-added provider of data analytics and technology-enabled end-to-end cost management, and payment and revenue integrity solutions to the U.S. healthcare industry, today reported financial results for the first quarter ended March 31, 2022.
“MultiPlan delivered very strong results, exceeding our expectations on revenue and Adjusted EBITDA for the first quarter 2022. Our results continue to demonstrate the strength and recurring nature of our business model and the unique value MultiPlan provides to all stakeholders in a complex U.S. healthcare system,” said Dale White, CEO of MultiPlan. “To accomplish this while implementing the No Surprises Act on behalf of customers speaks to our platform’s scale and our speed and flexibility in customizing solutions that meet our customers’ needs. Our relentless focus on operational excellence continues to underpin our industry-leading position with our payor customers, and I remain confident that MultiPlan is well-positioned to deliver strong results in 2022 and beyond.”
The Company remains focused on its mission of delivering fairness, efficiency and affordability to the U.S. healthcare system and on driving sustained long-term growth by enhancing its product offerings to payors, extending into new payor customer segments, and expanding its platform to serve MultiPlan’s 1.2 million providers, its more than 700 payor customers, and 60 plus million consumers.
Business and Financial Highlights
- Revenues of $298.0 million for Q1 2022, an increase of 16.9% over Q1 2021 revenues of $254.9 million.
- Net income of $44.0 million for Q1 2022, a decrease of 4.1% from Q1 2021 net income of $45.9 million.
- Adjusted EBITDA of $225.4 million for Q1 2022, an increase of 17.9% over Q1 2021 Adjusted EBITDA of $191.1 million.
- Net Cash provided by operating activities of $194.9 million for Q1 2022, compared to $170.9 million for Q1 2021.
- Free Cash Flow of $170.5 million for Q1 2022, compared to $152.8 million for Q1 2021.
- The Company processed approximately $31.7 billion in claim charges during the first quarter of 2022, identifying potential medical cost savings of approximately $5.6 billion.
The first quarter 2022 results reflect an estimated COVID-related revenue impact of $3-5 million and an estimated COVID-related Adjusted EBITDA impact of $2-4 million, as compared to an estimated COVID-related revenue impact of $18-22 million and an estimated COVID-related Adjusted EBITDA impact of $16-18 million in Q1 2021.
2022 Financial Guidance
The Company is maintaining its Full Year 2022 guidance, detailed in the table below:
|Financial Metric||FY 2022 Guidance|
|Revenues||$1,160 million to $1,200 million|
|Adjusted. 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 Company is updating the estimated COVID impact in its annual guidance to assume an estimated COVID-related revenue impact of approximately $15-20 million, which compares with a prior estimate of $25-30 million, and an estimated COVID-related Adjusted EBITDA impact of approximately $12-16 million, which compares with a prior estimate of $20-24 million.
The Company anticipates Q2 2022 revenues between $285 million and $295 million and Adjusted EBITDA between $205 million and $215 million.
Conference Call Information
The Company will host a conference call today, Tuesday, May 10, 2022 at 8:00 a.m. U.S. Eastern Daylight Time (ET) to discuss its financial results. Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will be given a unique PIN to gain immediate access to the call. Pre-registration may be completed at any time up to and following the call start time.
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 press 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 or by dialing (866) 813-9403 or (929) 458-6194. The replay access code is 996246.
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 clients’ 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 it www.multiplan.com.