Claritev Corporation · NYSE:CTEV
Claritev — MultiPlan — Q2 2023 Earnings Presentation
17 slides from Claritev's earnings presentation, Aug 2, 2023
Slide 1: MultiPlan Q2 2023 Results and Business Update
MultiPlan Q2 2023 Results and Business Update August 2, 2023 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes statements that express our management’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements”.
Slide 3: Q2 2023 Highlights
Q2 2023 Highlights 2023 Q2 Second Quarter 2023 Results: • Revenues of $238.0 million • Adjusted EBITDA1 of $152.7 million, and Adjusted EBITDA2 margin of 64.2% • Operating cash flow of $7.7 million • Benefits Science Technologies (BST) acquisition contributed $2.1 million to revenues During the seco
Slide 4: Q2 2023 Results
Q2 2023 Results Quarter-over-Quarter Year-over-Year $ in millions Q1 2023 Q2 2023 Q2 2022 Q2 2023 0.6% (18.0%) $290.1 $236.6 $238.0 $238.0 Revenues (18.0%) (2.3)% (27.2)% $209.6 Adjusted EBITDA1 $156.3 $152.7 $152.7 Adjusted EBITDA Margin2 66.0% 64.2% 72.3% 64.2% 1 See reconciliation of non-GAAP mea
Slide 5: Revenue by Service Line
Revenue by Service Line 2023 Q2 $ in millions Current Quarter Sequential Quarter Prior Year Quarter Service Line Q2 2023 Q1 2023 % Change Q2 2022 % Change Network-Based $57.1 $57.2 (0.1%) $63.4 (9.9%) Analytics-Based $151.4 $152.4 (0.6%) $193.3 (21.7%) Payment & Revenue Integrity $29.4 $27.0 9.0% $3
Slide 6: Medical Charges Processed and Identified Potential Savings
Medical Charges Processed and Identified Potential Savings1 $ in billions Current Quarter Sequential Quarter Prior Year Quarter Q2 2023 Q1 2023 % Change Q2 2022 % Change Commercial Health Plans Medical charges processed $18.7 $18.4 2% $18.6 1% Potential medical cost savings $5.4 $5.3 2% $5.4 —% Pote
Slide 7: MultiPlan Share of Savings
MultiPlan Share of Savings1 2023 Q2 $ in millions Key Drivers of Identified Savings Volume and Revenue as a % of Savings, Q2 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Identified potential savings - PSAV $4,199 $4,208 $4,040 $4,165 $4,475 • Identified savings from our PSAV revenue model (~90% of o
Slide 8: Our Growth Plan
Our Growth Plan Our key initiatives are on track and are expected to generate $200M - $275M+ in incremental annual revenue over the next several years Annual Revenue 2023 Initiatives 2024 Initiatives Opportunity Expand HST Platform Balance Bill Protection Pharmacy On Track Care Navigation, Oth
Slide 9: Revised FY 2023 Guidance
Revised FY 2023 FY 2023E Prior Revised Guidance Revenues $925 – 975M $950 – 980M Adjusted EBITDA1 $600 – 650M $615 – 635M 2023 performance tracking to our expectations Interest Expense $325 – 340M $325 – 335M Continue to expect modest growth in Operating Cash $175 – 215M $160 – 190M 2H ‘23 Flow2
Slide 10: Revised FY 2023 Guidance Bridge
Revised FY 2023 Guidance Bridge Key 2H ‘23 Revenue Drivers ~$10M $950-980M 1H ‘23 results tracked as expected ~1-2% $940-970M $945M ~(1%) ~1% Modest incremental run rate headwind from contract renewals in 2H vs. 1H 1H ‘23 had some residual benefit of a prior contract through January; 2H ‘23 wi
Slide 11: Q3 2023 Guidance
Q3 2023 Guidance $235-250M $150-160M Revenues Adjusted EBITDA1 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 resp
Slide 12: Capital Allocation
Capital Allocation Strong free cash flow generation allows us to balance our capital priorities Free Cash Flow Highlights Approximately $350M deployed in the last 3 Investment in the business HIGH PRIORITY quarters to drive organic growth $200M debt retirement $140M acquisition of BST LOW PRIO
Slide 13: Appendix
Appendix 13
Slide 14: Balance Sheet
Balance Sheet $ in millions, as of June 30, 2023 Debt Structure 6/30/2023 Rate Maturity Revolving credit facility - Revolver B Undrawn LIBOR +3.75%1 Aug-26 Term loan B $ 1,302 LIBOR +4.25%1 Sep-28 5.500% Senior Secured Notes $ 1,050 5.50% Sep-28 First lien debt, secured $ 2,352 (A) 5.75% Senior Unse
Slide 15: Reconciliation of GAAP and NON-GAAP items
Reconciliation of GAAP and NON-GAAP items $ in thousands except share data Three Months Ended 06/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Net income (loss) $ (36,370) $ 209 $ (650,138) $ 19,736 $ 13,512 Adjustments: Interest expense 82,475 83,428 82,173 77,087 72,696 Interest income (2,366)
Slide 16: Reconciliation of GAAP and NON-GAAP items, continued
Reconciliation of GAAP and NON-GAAP items, continued $ in thousands Three Months Ended 6/30/23 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Net cash provided by operating activities $ 7,685 $ 64,215 $ 27,689 $ 109,036 $ 40,702 Purchases of property and equipment (31,994) (23,101) (25,526) (20,810) (18,9
Slide 17: Medical Charges Processed and Identified Potential Savings
Medical Charges Processed and Identified Potential Savings1 ($ in billions) Three Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Commercial Health Plans Medical charges processed $ 18.7 $ 18.4 $ 18.1 $ 17.9 $ 18.6 $ 19.5 $ 20.0 $ 19.2 $ 19.0