Q3 2022 Revenues of $250.5 million, Net Income of $19.7 million, and Adjusted EBITDA of $172.2 million
Decrease in Revenues of 13.1% over Q3 2021, driven by lower volumes and unfavorable mix of identified potential medical cost savings, predominantly the result of softer patient utilization of healthcare services
November 8, 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 third quarter ended September 30, 2022.
“Third quarter 2022 was a challenging quarter for MultiPlan.” said Dale White, CEO of MultiPlan. “While the predominant driver of the shortfall was a decline in patient utilization of healthcare services, our results nevertheless fell short of our expectations. Despite the quarter’s results, our confidence in our business remains high. We continue to deliver best-in-class Adjusted EBITDA margins and generate significant cash flow. And even as we adjust to more difficult market conditions, we continue to drive meaningful progress on all fronts, by selling new business, building our pipeline, investing in our people and solutions to drive growth, managing our costs, and delivering high levels of value and service to our 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 $250.5 million for Q3 2022, a decrease of 13.1%, compared to Q3 2021 revenues of $288.2 million.
- Net income of $19.7 million for Q3 2022, a decrease of 74.8%, compared to net income of $78.2 million for Q3 2021.
- Adjusted EBITDA of $172.2 million for Q3 2022, a decrease of 21.2%, compared to Q3 2021 Adjusted EBITDA of $218.4 million.
- Net cash provided by operating activities of $109.0 million for Q3 2022, compared to $167.0 million for Q3 2021.
- Free Cash Flow of $88.2 million for Q3 2022, compared to $146.6 million for Q3 2021. The Company processed approximately $31.4 billion in claim charges during the third quarter of 2022, identifying potential medical cost savings of approximately $5.3 billion.
The third 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 $8-10 million and an estimated COVID-related Adjusted EBITDA impact of $6-8 million in Q3 2021.
2022 Financial Guidance
The Company is updating its Full Year 2022 guidance, detailed in the table below:
|Financial Metric||Full Year 2022 Guidance||Updated FY 2022 Guidance|
|Revenues||$1,160 million to $1,200 million||$1,075 million to $1,090 million|
|Adjusted. EBITDA||$850 million to $875 million||$765 million to $780 million|
|Cash flow from operations||$380 million to $420 million||$360 million to $380 million|
|Capital expenditures||$90 million to $100 million||$90 million to $100 million|
|Interest expense||$280 million to $290 million||$295 million to $305 million|
|Depreciation||$65 million to $70 million||$65 million to $70 million|
|Amortization of intangible assets||$335 million to $345 million||$335 million to $345 million|
|Effective tax rate||25% to 28%||26% to 29%|
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 $12-15 million.
The Company anticipates Q4 2022 revenues between $235 million and $250 million and Adjusted EBITDA between $155 million and $170 million.
Conference Call Information
The Company will host a conference call today, Tuesday, November 8, 2022 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=c4404ef1&confId=42446
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 004428.
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.