– Q2 2021 Revenues of $276.3 million
– Q2 2021 Net Loss of $46.9 million
– Q2 2021 Adjusted EBITDA of $205.3 million
– Full Year 2021 Revenue guidance of $1.09 billion to $1.13 billion
– Full Year 2021 Adjusted EBITDA guidance of $810 million to $835 million
– Q3 2021 Revenue guidance of $280 million to $295 million
– Q3 2021 Adjusted EBITDA guidance of $205 million to $215 million
August 5, 2021 — 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, 2021.
“MultiPlan’s momentum continues, with a second quarter that marks our fourth consecutive report of strong quarterly performance during our first year as public company,” said Mark Tabak, CEO of MultiPlan. “Despite the ongoing effects and uncertainty of the COVID-19 pandemic on our business, we continue to produce results through an unyielding commitment to operational excellence and delivering value to our customers. Importantly, in the second quarter, we had growth across all of our services lines and all of our major customer groups. In consideration of our strong second quarter results, indications that the headwinds from COVID-19 have weakened, and an improved outlook for the second half of the year, we are raising our financial guidance for full-year 2021.”
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 1.2 million providers, its more than 700 payor customers, and 60 plus million consumers.
Business and Financial Highlights
- Revenues of $276.3 million for Q2 2021, an increase of 33.5% over Q2 2020 revenues of $206.9 million.
- Net loss of $46.9 million for Q2 2021 compared to net loss of $56.2 million for Q2 2020.
- Adjusted EBITDA of $205.3 million for Q2 2021, an increase of 37.1% over Q2 2020 Adjusted EBITDA of $149.8 million
- The Company processed approximately $29.3 billion in claims during the second quarter of 2021, identifying potential medical cost savings of approximately $5.0 billion.
2021 Financial Guidance
The Company is increasing its Full Year 2021 guidance for revenues, Adjusted EBITDA and cash flow from operations, reflecting the combination of: expectation that the impact of the COVID-19 pandemic on revenue and Adjusted EBITDA in the second half of 2021 will be lower than the Company’s prior estimates; continued organic growth in revenues driven by a strong pipeline of service implementations with customers, and, better-than-anticipated Q2 2021 results. A comparison of the Company’s prior and revised Full Year 2021 guidance is presented in the table below.
| Financial Metric | Prior FY 2021 Guidance | Updated FY 2021 Guidance | ||
| Revenues | $1,040 million to $1,100 million | $1,090 million to $1,130 million | ||
| Adj. EBITDA | $750 million to $790 million | $810 million to $835 million | ||
| Cash flow from operations | $380 million to $420 million | $410 million to $440 million | ||
| Capital expenditures | $75 million to $80 million | $75 million to $80 million | ||
| Interest expense | $250 million to $260 million | $250 million to $260 million | ||
| Depreciation | $60 million to $65 million | $65 million to $70 million | ||
| Amortization of intangible assets | $340 million to $345 million | $335 million to $345 million | ||
| Effective tax rate | 25% to 28% | 25% to 28% |
The Company anticipates Q3 2021 revenues between $280 million and $295 million with Adjusted EBITDA between $205 million and $215 million. The above quarterly and annual guidance reflects an estimated COVID-related revenue impact of $9-11 million per quarter and an estimated COVID-related Adjusted EBITDA impact of $7-9 million per quarter in the second half of 2021, as compared with a revenue impact of $18-22 million in Q1 2021 and $9-11 million in Q2 2021 and an Adjusted EBITDA impact of $16-$18 million in Q1 2021 and $7-9 million in Q2 2021.
Excluding the estimated potential impact of the COVID-19 pandemic and contributions from acquired businesses, the Company’s FY 2021 guidance implies a range of revenues of $1,085 million to $1,135 million, compared to a range of revenues of $1,085 million to $1,125 million for the FY 2021 estimated forecast provided in the 2020 Proxy Statement. Excluding the estimated potential impact of the COVID-19 pandemic, contributions from acquired businesses, and public company costs, the Company’s guidance implies a range of Adjusted EBITDA of $848 million to $883 million, compared to a range of Adjusted EBITDA of $845 million to $875 million for the FY 2021 forecast provided in the 2020 Proxy Statement. The FY 2021 estimated forecast provided in the 2020 Proxy Statement was based on numerous variables and assumptions known to the Company at the time of preparation, and these assumptions and variables did not include any estimated potential impact from the COVID-19 pandemic, acquisitions, or public company costs.
Conference Call Information
The Company will host a conference call today, Thursday, August 5, 2021 at 8:00 a.m. U.S. Eastern Time (ET) to discuss its financial results. Interested investors and other parties can register for the conference call using the link below:
http://www.directeventreg.com/registration/event/8938558
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. A supplemental slide deck will also be available on this section of the MultiPlan 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.
About MultiPlan
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 multiplan.com.
