– Q4 2022 Revenues of $241.1 million, Net Loss of $650.1 million (including a $662.2 million impairment of goodwill and indefinite-lived intangible assets) and Adjusted EBITDA of $161.5 million
– Full Year 2022 Revenues of $1,079.7 million, Net Loss of $572.9 million (including a $662.2 million impairment of goodwill and indefinite-lived intangible assets) and Adjusted EBITDA of $768.7 million
– Full Year 2023 Revenues guidance of $925 million to $975 million and Adjusted EBITDA guidance of $600 million to $650 million
– Repurchased over $136 million face value of our 5.75% Notes in the open market, and the Board of Directors authorized share repurchase program of $100 million through December 31, 2023
NEW YORK- 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, 2022.
“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 Dale White, CEO of MultiPlan. “We continued to deliver critical value to stakeholders in the healthcare ecosystem by processing $155.2 billion in medical charges and identifying $22.3 billion in potential medical cost savings. And, we successfully navigated one of the most significant regulatory changes in the history of U.S. healthcare by helping our customers through the complexities of the new No Surprises Act.”
“Further, we have continued to take steps to strengthen our business,” added Mr. White. “We are pleased to announce that, since our last earnings call, we renewed a multi-year contract with another one of our larger customers. During the fourth quarter, we made progress on debt reduction, and with over $300 million of cash remaining on our balance sheet, we will continue to be opportunistic regarding capital allocation given market conditions. And importantly, we led our team through an extensive, forward-looking review of our service and product positioning, and enacted a concrete plan to reposition our business for growth in the coming years.”
Mr. White concluded, “The year 2023 will be a pivotal one for MultiPlan, as the steps we are taking to reposition the business will help us land on solid footing with greater visibility and resume growth in 2024 and beyond.”
Business and Financial Highlights
- Revenues of $241.1 million for Q4 2022, a decrease of 19.2% over Q4 2021 revenues of $298.3 million.
- Net loss of $650.1 million for Q4 2022, compared to net income of $24.9 million for Q4 2021. The net loss was principally due to an impairment charge of$662.2 million for goodwill and indefinite-lived intangibles recorded.
- Adjusted EBITDA of $161.5 million for Q4 2022, compared to $223.6 million for Q4 2021.
- Revenues of $1,079.7 million for full year 2022, a decrease of 3.4% over full year 2021 revenues of $1,117.6 million.
- Net loss for full year 2022 of $572.9 million compared to net income of $102.1 million for full year 2021. The net loss was principally due to an impairment charge of$662.2 million for goodwill and indefinite-lived intangibles recorded.
- Adjusted EBITDA of $768.7 million for full year 2022, compared to $838.3 million for full year 2021.
- Net cash provided by operating activities of $372.4 million for full year 2022, compared to $404.7 million for full year 2021.
- Free Cash Flow of $282.6 million for full year 2022, compared to $320.1 million for full year 2021.
- In the fourth quarter, the Company used $100 million of cash to repurchase $136 million face value of its 5.750% Senior Unsecured Notes. The Company ended the fourth quarter with $334 million of unrestricted cash and cash equivalents on the balance sheet.
- The Company processed $39.0 billion in medical charges during the fourth quarter 2022, identifying potential medical cost savings of approximately $5.4 billion. For the year ended December 31, 2022, the Company processed approximately $155.2 billion in medical charges and identified approximately $22.3 billion in potential medical cost savings compared to $144.2 billion medical charges and approximately $22.1 billion in potential medical cost savings for the year ended 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 for our goodwill and $4.3 million for our indefinite-lived intangibles were recorded.
The full year 2022 results reflect an estimated COVID-related revenue impact of $12-20 million and an estimated COVID-related Adjusted EBITDA impact of $8-16 million, as compared to an estimated COVID-related revenue impact of $40-50 million and an estimated COVID-related Adjusted EBITDA impact of $32-40 million for full year 2021. Given the de minimis net COVID impact in 2022, particularly in the second half of the year, the Company will discontinue disclosure of the net COVID-related revenue and adjusted EBITDA impacts going forward.
2023 Financial Guidance
|Financial Metric||Full Year 2023 Guidance|
|Revenues||$925 million to $975 million|
|Adjusted EBITDA1||$600 million to $650 million|
|Interest expense||$325 million to $340 million|
|Cash flow from operations2||$175 million to $215 million|
|Capital expenditures||$100 million to $115 million|
|Depreciation||$70 million to $75 million|
|Amortization of intangible assets||$335 million to $345 million|
|Effective tax rate||25% to 28%|
The Company anticipates Q1 2023 revenues between $225 million and $240 million and Adjusted EBITDA between $145 million and $160 million.
Conference Call Information
The Company will host a conference call today, Tuesday, February 28, 2023 at 8:00 a.m. U.S. Eastern 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 receive access details via email. Pre-registration may be completed at any time up to and following the call start time.
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.
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.