Claritev Corporation · NYSE:CTEV
Claritev — Q3 2024 Earnings Presentation
15 slides from Claritev's earnings presentation, Nov 5, 2024
Slide 1: MultiPlan Q3 2024 Results and Business Update
MultiPlan Q3 2024 Results and Business Update November 5, 2024 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: Q3 2024 Highlights
Q3 2024 Highlights 2024 Q3 Third Quarter 2024 Results: • Revenues of $230.5 million • Adjusted EBITDA1 of $141.6 million, and Adjusted EBITDA margin2 of 61.5% • Operating cash flow of $72.8 million • Impairment of goodwill and indefinite-lived assets of $361.6 million recorded During the third quart
Slide 4: Q3 2024 Results
Q3 2024 Results Quarter-over-Quarter Year-over-Year $ in millions Q3 2024 Q2 2024 Q3 2024 Q3 2023 (1.3)% (5.1)% Revenues (18.0%) (3.4)% (7.0)% Adjusted EBITDA1 Adjusted EBITDA Margin2 61.5% 62.8% 61.5% 62.7% 1 See reconciliation of non-GAAP measures included in Appendix 2 Adjusted EBITDA Margin is d
Slide 5: Revenue by Service Line
Revenue by Service Line 2024 Q3 $ in millions Current Quarter Sequential Quarter Prior Year Quarter Service Line Q3 2024 Q2 2024 % Change Q3 2023 % Change Network-Based $46.2 $45.7 0.9% $56.8 (18.8)% Analytics-Based $157.7 $159.9 (1.4)% $158.4 (0.4)% Payment & Revenue Integrity $26.6 $27.9 (4.4)% $2
Slide 6: Commercial Health Plans - Volumes
Medical Charges Processed ($B) Commercial Health Plans - Volumes1 OON Medical Charges Processed Identified Savings “Yield” • Q3 2024 charges of $20.5B increased 3.4% QoQ and increased 10.9% YoY Identified Savings “Yield” • Q3 2024 identified savings “yield” of 29.3% Identified Potential Savings • Q3
Slide 7: Medical Charges Processed and Identified Potential Savings
Medical Charges Processed and Identified Potential Savings $ in billions Current Quarter Sequential Quarter Prior Year Quarter Q3 2024 Q2 2024 % Change Q3 2023 % Change Commercial Health Plans Current Medical charges processed $ 20.5 $ 19.8 3 % $ 18.5 11 % “Core” Potential medical cost savings $ 6.0
Slide 8: MultiPlan Share of Savings
MultiPlan Share of Savings 2024 Q3 $ in millions Key Drivers of Identified Savings Volume and Revenue as a % of Savings, Q3 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Identified potential savings - PSAV $4,473 $4,437 $4,303 $4,411 $4,239 • Identified savings from our PSAV revenue model (~90% of ou
Slide 9: Updated FY 2024 Guidance
Updated FY 2024 FY 2024 E Prior Updated Guidance Revenues $935 – 955M $930 – 940M Adjusted EBITDA1 $580 – 595M $580 – 590M • Revised 2024 revenue guidance of $930 to $940 million Interest Expense $320 – 330M (unchanged) • Revised 2024 Adj. EBITDA1 guidance of $580 to $590 million Operating Cash $135
Slide 10: Capital Allocation Highlights
Capital Allocation Highlights • Assessing our capital structure - ◦ Working with our lender groups Investment in the business HIGH PRIORITY ◦ Focus on opportunistic to drive organic growth extension of our maturities ◦ Will allow us ample HIGH PRIORITY time to implement our Debt paydown business str
Slide 11: Appendix
Appendix 11
Slide 12: Balance Sheet
Balance Sheet $ in millions, as of September 30, 2024 Debt Structure 9/30/2024 Rate Maturity Revolving credit facility - Revolver B Undrawn SOFR + CSA +4.00%1 Aug-26 Term loan B $ 1,285 SOFR + CSA +4.25%1 Sep-28 5.500% Senior Secured Notes $ 1,050 5.50% Sep-28 First lien debt, secured $ 2,335 (A) 5.
Slide 13: Reconciliation of GAAP and Non-GAAP items
Reconciliation of GAAP and Non-GAAP items $ in thousands except share data Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Net (loss) income $ (391,450) $ (576,727) $ (539,689) $ (31,391) $ (24,145) Adjustments: Interest expense 81,792 81,129 82,198 83,005 84,300 Interest incom
Slide 14: Reconciliation of GAAP and Non-GAAP items, continued
Reconciliation of GAAP and Non-GAAP items, continued $ in thousands Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Net cash provided by operating activities $ 72,842 $ 18,471 $ 49,716 $ 27,702 $ 72,118 Purchases of property and equipment (31,700) (25,445) (30,544) (31,343) (22
Slide 15: Medical Charges Processed and Identified Potential Savings
Medical Charges Processed and Identified Potential Savings1 $ in billions Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Commercial Health Plans Medical charges processed $20.5 $19.8 $18.3 $19.4 $18.5 $18.7 $18.4 $18.1 $17.9 Potential m