- Q3 2023 Revenues of $242.8 million, Net Loss of $24.1 million, and Adjusted EBITDA of $152.3 million
- Identified potential medical cost savings of approximately $5.8 billion in Q3 2023, up 2% from Q2 2023 and up 7% from Q3 2022
- Repurchased an additional $46.1 million in face value of our 5.75% Senior Unsecured Notes in the open market in Q3 2023
November 7, 2023 — 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, 2023.
“The third quarter results continued to track to our plan for the year and our expectation for growth in the second half of 2023,” said Dale White, CEO of MultiPlan. “We delivered sequential growth in revenues, with flat Adjusted EBITDA reflecting accelerated investments in new products for the core business and in our new Data & Decision Science Services line. As a result, we remain on track to deliver on our full-year 2023 guidance.”
“Moreover, we continued to make excellent progress on our Growth Plan during the third quarter, with a number of new product launches delivered on or ahead of schedule,” said Mr. White. “Following the expansion of our HST platform with the launch of our Balance Bill ProtectionTM product in the second quarter, during the third quarter we launched our Pro PricerTM product to enhance our core out-of-network services, and we broadened our service offerings with the launches of our PlanOptixTM price transparency product and B2B healthcare payment service. Importantly, these 2023 product initiatives are already driving an expansion of our pipeline of new business and positioning us to deliver growth in 2024 and beyond.”
“We also continued to make progress on our capital allocation plan during the third quarter,” said Mr. White. “Specifically, we continued to focus on debt retirement by repurchasing our 5.75% Senior Unsecured Notes in the open market, contributing to the reduction of the face value of our debt by $333 million over the last four quarters.”
Mr. White concluded, “The progress we made in the third quarter speaks to our unwavering focus on executing our longer-term plan, outlined at our Investor Day in June, to transform our business and unlock the value of our franchise, by leveraging the enormous strength of our platform, expanding our products and services, accelerating our growth, diversifying our revenues, and improving our capital structure.”
Business and Financial Highlights
- Revenues of $242.8 million for Q3 2023, a decrease of 3.1%, compared to revenues of $250.5 million for Q3 2022. Benefits Science Technologies (BST) contributed $3.6 million to revenues in Q3 2023.
- Net loss of $24.1 million for Q3 2023, compared to net income of $19.7 million for Q3 2022.
- Adjusted EBITDA of $152.3 million for Q3 2023, compared to Adjusted EBITDA of $172.2 million for Q3 2022.
- Net cash provided by operating activities of $72.1 million for Q3 2023, compared to net cash provided by operating activities of $109.0 million for Q3 2022.
- Free Cash Flow of $49.7 million for Q3 2023, compared to Free Cash Flow of $88.2 million for Q3 2022.
- In Q3 2023, the Company used $35.0 million of cash to repurchase $46.1 million face value of its 5.75% Senior Unsecured Notes in the open market. The Company ended Q3 2023 with $101.3 million of unrestricted cash and cash equivalents on the balance sheet.
- The Company processed approximately $42.5 billion in claim charges during the third quarter of 2023, identifying potential medical cost savings of approximately $5.8 billion.
2023 Financial Guidance
The Company is updating its Full Year 2023 guidance for revenues and Adjusted EBITDA, as detailed in the table below. All other guidance items remain unchanged.
|Financial Metric||Prior FY 2023 Guidance||Revised FY 2023 Guidance|
|Revenues||$950 million to $980 million||$960 million to $970 million|
|Adjusted EBITDA1||$615 million to $635 million||$615 million to $625 million|
|Interest expense||$325 million to $335 million|
|Cash flow from operations2||$160 million to $190 million|
|Capital expenditures||$110 million to $120 million|
|Depreciation||$70 million to $75 million|
|Amortization of intangible assets||$340 million to $345 million|
|Effective tax rate||25% to 28%|
The Company anticipates Q4 2023 revenues between $240 million and $250 million and Adjusted EBITDA1 between $155 million and $165 million.
Conference Call Information
The Company will host a conference call today, Tuesday, November 7, 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=c7ea7a97&confId=55851
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 a 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 475386.
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 www.multiplan.com.
 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, and certain fair value measurements, 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.
2 Cash flow from operations guidance includes the impact of approximately $22 million that MultiPlan paid in Q1 2023 in connection with the settlement of our previously disclosed Delaware stockholder litigation.