– Q1 2024 Revenues of $234.5 million, Net Loss of $539.7 million (including a $519.1 million impairment of goodwill and indefinite-lived intangible assets), and Adjusted EBITDA of $146.8 million
– Identified potential medical cost savings of approximately $5.7 billion in Q1 2024, up 3% from Q1 2023 and down 3% from Q4 2023
– Repurchased or repaid $24.4 million of face value of debt, including $21.1 million of 6.0% Senior Convertible PIK Notes
May 8, 2024 — 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 first quarter ended March 31, 2024.
“As you heard me say a just few months ago, I joined as CEO because I saw an incredible opportunity to help us follow through on our transformation to a world class public company that is fit to deliver sustainable growth and to fulfill our important mission to bend the cost curve in healthcare,” said Travis Dalton, CEO.
“After engaging with countless employees and clients over the last two months, I have even greater admiration for our exceptional talent, appreciation of our strong customer relationships and our hard-earned reputation for providing world class service, and confidence that we will leverage our unique data and technology assets to innovate products for our existing clients and new market segments.”
“At the same time,” continued Mr. Dalton, “we have work to do to enhance our foundation so that we can execute our strategy with discipline and speed. Among the many steps we are taking, we recently added our Chief Operating Officer, Jerry Hogge, who is focused on enhancing our operating and product development capabilities and intensifying our sales engagement, all of which will help us go to market more efficiently and maximize our potential.”
“Our first quarter was affected by a cybersecurity incident at a major medical claims clearinghouse, which disrupted claims flows across the healthcare industry and ultimately downstream to our platform,” said Mr. Dalton. “Despite this disruption, our first quarter results were just below the low end of our guidance ranges for revenues and Adjusted EBITDA. Excluding an estimated $5 to 6 million revenue impact from this disruption, our results would have landed within our guidance ranges.”
“We did not allow the disruption to distract us, and I am proud of the progress the team made during the quarter,” said Mr. Dalton. “We remained focused on delivering on our growth initiatives and product roadmap. And moreover, we remained steadfast in the pursuit of our mission to drive down the costs of healthcare for consumers and our clients, while fulfilling our purpose to make healthcare transparent, fair, and affordable for all.”
Business and Financial Highlights
• Revenues of $234.5 million for Q1 2024, a decrease of 0.9%, compared to revenues of $236.6 million for Q1 2023.
• Net loss of $539.7 million for Q1 2024, compared to net income of $0.2 million for Q1 2023. The net loss was principally due to an impairment charge of $519.1 million for goodwill and indefinite-lived intangibles.
• Adjusted EBITDA of $146.8 million for Q1 2024, compared to Adjusted EBITDA of $156.3 million for Q1 2023.
• Net cash provided by operating activities of $49.7 million for Q1 2024, compared to net cash provided by operating activities of $64.2 million for Q1 2023.
• Free Cash Flow of $19.2 million for Q1 2024, compared to Free Cash Flow of $41.1 million for Q1 2023.
• In Q1 2024, the Company used $18.2 million of cash to repurchase or repay $24.4 million face value of its debt, including $21.1 million of its 6.0% Senior Convertible PIK Notes, and also used $10.4 million of cash to repurchase shares of its common stock in the open market. The Company ended Q1 2024 with $58.7 million of unrestricted cash and cash equivalents on the balance sheet.
• The Company processed approximately $41.5 billion in claim charges during Q1 2024, identifying potential medical cost savings of approximately $5.7 billion.
• Based on the results of an impairment test as of March 31, 2024, the estimated fair values of our goodwill and indefinite-lived assets were less than their carrying values and as a result impairment charges of $516.4 million for our goodwill and $2.7 million for our indefinite-lived intangibles were recorded.
2024 Financial Guidance
The Company is maintaining its Full Year 2024 guidance, as detailed in the table below.
| Financial Metric | FY 2024 Guidance |
| Revenues | $1,000 million to $1,030 million |
| Adjusted EBITDA1 | $630 million to $650 million |
| Interest expense | $320 million to $330 million |
| Cash flow from operations | $170 million to $200 million |
| Capital expenditures | $120 million to $130 million |
| Depreciation | $80 million to $90 million |
| Amortization of intangible | $345 million to $350 million |
| Effective tax rate | 25% to 28% |
The Company anticipates Q2 2024 revenues between $235 million and $250 million and Adjusted EBITDA1 between $145 million to $160 million.
1 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.
Conference Call Information
The Company will host a conference call today, Wednesday, May 8, 2024 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=0ebae0ec&confId=63320
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. This 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. For those requiring operator assistance, please dial (833) 470-1428 or (404) 975-4839. The access code is 298805.
About MultiPlan
MultiPlan is committed to bending the cost curve in healthcare by delivering transparency, fairness, and affordability to the US healthcare system. Our focus is on identifying medical savings, helping to lower out-of-pocket costs, and reducing or eliminating balance billing for healthcare consumers. 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, data and decision science, and analytics-based services. MultiPlan delivers value to more than 700 healthcare payors, over 100,000 employers, 60 million consumers, and 1.4 million contracted providers. For more information, visit multiplan.com.
