Q2 2022 Revenues of $290.1 million, Net Income of $13.5 million, and Adjusted EBITDA of $209.6 million
Growth in revenues of 5.0% over Q2 2021, driven by an increase in identified potential medical cost savings to approximately $5.5 billion in Q2 2022
August 4, 2022 – 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 second quarter ended June 30, 2022.
“Once again, MultiPlan delivered strong operating results in second quarter 2022,” said Dale White, CEO of MultiPlan. “Moreover, we achieved several new milestones in the quarter, including continued expansion of our No Surprises Act services footprint and activity, investment in a leading data management and interoperability platform that offers a number of opportunities to enhance our technology, and developments with key customers that enhance our operational and financial visibility. As I look forward, I remain confident that the unique value we provide to the U.S. healthcare system, together with the investments we are making in our platform, will drive long-term growth and deepen our industry-leading position with our payor customers.”
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 1.3 million providers, its more than 700 payor customers, and 60 plus million consumers.
Business and Financial Highlights
- Revenues of $290.1 million for Q2 2022, an increase of 5.0% over Q2 2021 revenues of $276.3 million.
- Net income of $13.5 million for Q2 2022, compared to a net loss of $46.9 million for Q2 2021.
- Adjusted EBITDA of $209.6 million for Q2 2022, an increase of 2.1% over Q2 2021 Adjusted EBITDA of $205.3 million.
- Net Cash provided by operating activities of $40.7 million for Q2 2022, compared to $33.5 million for Q2 2021.
- Free Cash Flow of $21.8 million for Q2 2022, compared to $14.8 million for Q2 2021.
- The Company processed approximately $32.0 billion in claim charges during the second quarter of 2022, identifying potential medical cost savings of approximately $5.5 billion.
The second quarter 2022 results reflect an estimated COVID-related revenue impact of $4-6 million and an estimated COVID-related Adjusted EBITDA impact of $3-5 million, as compared to an estimated COVID-related revenue impact of $9-11 million and an estimated COVID-related Adjusted EBITDA impact of $7-9 million in Q2 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’s annual guidance assumes an estimated COVID-related revenue impact of approximately $15-20 million, and an estimated COVID-related Adjusted EBITDA impact of approximately $12-16 million
The Company anticipates Q3 2022 revenues between $280 million and $290 million and Adjusted EBITDA between $200 million and $210 million.
Conference Call Information
The Company will host a conference call today, Thursday, August 4, 2022 at 10:00 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 receive access details via email. 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 132537.
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 www.multiplan.com.