MultiPlan (MPLN) - 2023 Q4 - Annual Results

Revenue Performance - Q4 2023 revenues were $244.1 million, a 1.3$241.1 million[5] - Full year 2023 revenues totaled $961.5 million, a decrease of 10.9$1,079.7 million in 2022[5] - MultiPlan's revenues for 2023 were $961,524 thousand, a decrease of 10.9$1,079,716 thousand in 2022[27] - Full year 2024 revenue guidance is set between $1,000 million and$1,030 million, with Adjusted EBITDA guidance of $630 million to$650 million[4] Net Loss and Financial Improvement - The net loss for Q4 2023 was $31.4 million, significantly improved from a net loss of$650.1 million in Q4 2022[5] - The company reported a net loss of $91,697 thousand in 2023, compared to a net loss of$572,912 thousand in 2022, indicating an improvement in financial performance[27] - Net loss for 2023 was $91,697, compared to a loss of$572,912 in 2022, indicating a significant improvement[34] EBITDA and Cash Flow - Adjusted EBITDA for Q4 2023 was $156.8 million, compared to$161.5 million in Q4 2022[5] - Adjusted EBITDA for 2023 was $161,982 thousand, a significant recovery from an operating loss of$362,732 thousand in 2022[27] - EBITDA for 2023 reached $640,215, a substantial increase from$150,103 in 2022[34] - Net cash provided by operating activities for 2023 was $171,720 thousand, a decrease from$372,364 thousand in 2022[30] - Net cash provided by operating activities decreased to $171,720 in 2023 from$372,364 in 2022, indicating lower operational cash flow[36] Medical Cost Savings - The company identified potential medical cost savings of approximately $5.9 billion in Q4 2023, up 2.3$22.9 billion, compared to $22.3 billion in 2022[5] Debt Management - The company repurchased and repaid$222 million of debt during 2023, including $25 million in Q4[3] - Long-term debt was reduced to$4,532,733 thousand in 2023 from $4,741,856 thousand in 2022, reflecting a focus on debt management[25] Cash and Assets - The company ended Q4 2023 with$71.5 million of unrestricted cash and cash equivalents[5] - Cash and cash equivalents at the end of 2023 were $71,547 thousand, down from$334,046 thousand at the end of 2022[25] - Total current assets decreased to $193,593 thousand in 2023 from$446,737 thousand in 2022, primarily due to a reduction in cash and cash equivalents[25] - The company’s total assets decreased to $6,964,687 thousand in 2023 from$7,371,104 thousand in 2022[25] Capital Expenditures and Investments - The company made significant investments in property and equipment, totaling $108,852 thousand in 2023, compared to$89,735 thousand in 2022[30] - Net cash used in investing activities rose to $249,792 in 2023, compared to$104,446 in 2022, reflecting increased capital expenditures[36] Efficiency and Cost Management - The Adjusted cash conversion ratio, which measures how much of Adjusted EBITDA is converted into Unlevered Free Cash Flow, is a key performance indicator for the company[23] - Adjusted Cash Conversion Ratio fell to 62% in 2023, compared to 74% in 2022, suggesting a decline in cash conversion efficiency[36] - Integration expenses decreased to $3,358 in 2023 from$4,055 in 2022, showing improved integration efficiency[34] - Stock-based compensation increased to $18,018 in 2023 from$15,083 in 2022, indicating higher employee compensation costs[34] Interest and Expenses - Interest expense increased to $333,208 in 2023 from$303,401 in 2022, highlighting rising borrowing costs[34] - Free Cash Flow decreased to $62,868 in 2023 from$282,629 in 2022, reflecting a decline in cash generation[36] - Unlevered Free Cash Flow for 2023 was $386,264, down from$572,395 in 2022, indicating reduced operational efficiency[36]