鈥� Q1 2023 Revenues of $236.6 million, Net Income of $0.2 million, and Adjusted EBITDA of $156.3 million
鈥� Identified potential medical cost savings of approximately $5.6 billion in Q1 2023, up 3% from Q4 2022
鈥� Repurchased an additional $137.8 million in face value of our 5.75% Senior Unsecured Notes and $5.7 million of shares of our common stock in the open market in Q1 2023
May 4, 2023 鈥� 野花社区 (鈥溡盎ㄉ缜�� or the 鈥淐ompany鈥�) (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, 2023.
鈥淲e are making meaningful progress improving the position of the Company, advancing our core business, and adding new avenues of growth,鈥� said Dale White, CEO of 野花社区. 鈥淒uring the first quarter, we delivered results consistent with our expectations, renewed yet another multi-year contract with one of our larger customers, and continued to reduce our debt. As healthcare utilization continues to stabilize, our first quarter volumes solidified, helping to establish a foundation for growth in the second half of the year.鈥�
鈥淢oreover, we remained firmly focused on the execution of our Growth Plan,鈥� continued Mr. White. 鈥淲e are on track to launch several new products and product enhancements for our core service lines in 2023, starting as early as June. I am also pleased with the significant progress we have made on the formation of our new Data & Decision Science service line, which is a critical part of our planned expansion beyond out-of-network claim processing and into larger and growing markets like in-network commercial and Medicare Advantage.鈥�
Mr. White concluded, 鈥淲ith the progress we are making across so many fronts, I am increasingly confident that we are landing on solid footing with greater visibility, and that the Company is positioned to accelerate growth in 2024 and beyond.鈥�
Business and Financial Highlights
- Revenues of $236.6 million for Q1 2023, a decrease of 20.6%, compared to revenues of $298.0 million for Q1 2022.
- Net income of $0.2 million for Q1 2023, a decrease of 99.5%, compared to net income of $44.0 million for Q1 2022.
- Adjusted EBITDA of $156.3 million for Q1 2023, a decrease of 30.7%, compared to Adjusted EBITDA of $225.4 million for Q1 2022.
- Net cash provided by operating activities of $64.2 million for Q1 2023, compared to net cash provided by operating activities of $194.8 million for Q1 2022.
- Free Cash Flow of $41.1 million for Q1 2023, compared to Free Cash Flow of $170.4 million for Q1 2022.
- In Q1 2023, the Company used $100 million of cash to repurchase $137.8 million face value of its 5.750% Senior Unsecured Notes and used $5.7 million to repurchase shares of its common stock in the open market. The Company ended Q1 2023 with $265.7 million of unrestricted cash and cash equivalents on the balance sheet.
- The Company processed approximately $39.7 billion in claim charges during the first quarter of 2023, identifying potential medical cost savings of approximately $5.6 billion.
2023 Financial Guidance
The Company is reaffirming its Full Year 2023 guidance, as detailed in the table below:
| Financial Metric | Full Year 2023 Guidance |
| Revenues | $925 million to $975 million |
| Adjusted EBITDA1 | $600 million to $650 million |
| Interest expense | $325 million to $340 million |
| Cash flow from operations2 | $175 million to $215 million |
| Capital expenditures | $100 million to $115 million |
| Depreciation | $70 million to $75 million |
| Amortization of intangible assets | $335 million to $345 million |
| Effective tax rate | 25% to 28% |
The Company anticipates Q2 2023 revenues between $220 million and $235 million and Adjusted EBITDA1 between $140 million and $155 million.
Conference Call Information
The Company will host a conference call today, Thursday, May 4, 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: .
A live webcast of the conference call can be accessed through the Investor Relations section of the Company鈥檚 website at . 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鈥檚 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鈥檚 website or by dialing (866) 813-9403 or (929) 458-6194. The replay access code is 718568.
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 (including expenses relating to the business combination), 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 in payments that 野花社区 paid in connection with the settlement of our previously disclosed Delaware stockholder litigation.
About 野花社区
野花社区 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, 野花社区 interprets customers鈥� needs and customizes innovative solutions that combine its payment and revenue integrity, network-based and analytics-based services. 野花社区 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.
