MultiPlan Corporation (MPLN) Bundle
A Brief History of MultiPlan Corporation
MultiPlan Corporation, a leading provider of data and technology-driven solutions for the healthcare industry, has experienced significant transformations in its operational and financial landscape leading up to 2024. Established in 1980, the company has evolved through various acquisitions and strategic initiatives aimed at enhancing its service offerings and market position.
Key Financial Milestones
As of September 30, 2024, MultiPlan reported a total revenue of $230.5 million for the third quarter, reflecting a decrease of 5.1% compared to $242.8 million during the same period in 2023. For the nine months ended September 30, 2024, total revenues were $698.5 million, down from $717.4 million in 2023, marking a decline of 2.6%.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $230.5 million | $242.8 million | $(12.3 million) | (5.1%) |
| Net Loss | $(391.5 million) | $(24.1 million) | $(367.4 million) | NM |
| EBITDA | $(229.1 million) | $158.0 million | $(387.1 million) | NM |
Acquisitions and Strategic Initiatives
MultiPlan has made several strategic acquisitions to bolster its portfolio, including the acquisition of BST in May 2023. This acquisition was part of a broader strategy to enhance its capabilities in providing advanced healthcare solutions. The company also incurred a significant goodwill impairment charge of $1.4 billion in 2024, largely attributed to lower projected cash flows and decreased EBITDA multiples.
Debt and Financial Position
As of September 30, 2024, MultiPlan's long-term debt stood at $4.51 billion, which includes a $1.27 billion Term Loan B and $1.05 billion of 5.50% Senior Secured Notes. The company's weighted average cash interest rate was 6.79% as of the same date, down from 6.97% in 2023.
| Debt Component | Amount (in billions) |
|---|---|
| Term Loan B | $1.27 |
| 5.50% Senior Secured Notes | $1.05 |
| 5.750% Notes | $0.98 |
| Senior Convertible PIK Notes | $1.25 |
| Total Long-Term Debt | $4.51 |
Stock Performance and Market Capitalization
Following a reverse stock split effective September 20, 2024, MultiPlan's stock price has seen fluctuations in line with market conditions. As of September 30, 2024, the company had a weighted average of 16.14 million shares outstanding, with a net loss per share of $(24.25) for the third quarter. The stock's performance has been affected by broader market trends and the company's recent financial challenges.
Operational Challenges and Future Outlook
MultiPlan has faced operational challenges, including a significant net loss of $1.51 billion for the nine months ended September 30, 2024. The company is exploring options to restructure its capital and improve its operational efficiency while enhancing its focus on delivering technology-driven solutions to the healthcare sector.
A Who Owns MultiPlan Corporation (MPLN)
Major Shareholders
As of 2024, MultiPlan Corporation (MPLN) has a diverse ownership structure, with significant holdings by both institutional and individual investors. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership (%) | Type of Ownership |
|---|---|---|
| Vanguard Group, Inc. | 7.5% | Institutional |
| BlackRock, Inc. | 6.9% | Institutional |
| State Street Corporation | 4.1% | Institutional |
| Wellington Management Co. LLP | 3.6% | Institutional |
| Invesco Ltd. | 3.2% | Institutional |
| Company Executives and Directors | 1.8% | Insider |
| Other Individual Investors | 69.9% | Retail |
Institutional Ownership
Institutional investors hold a substantial portion of MultiPlan’s shares, reflecting confidence in the company’s business model and market position. As of September 30, 2024, institutional ownership stands at approximately 27.1% of total shares outstanding. The following table provides a detailed breakdown of institutional ownership:
| Institution | Shares Held | Ownership (%) |
|---|---|---|
| Vanguard Group, Inc. | 1,270,000 | 7.5% |
| BlackRock, Inc. | 1,150,000 | 6.9% |
| State Street Corporation | 680,000 | 4.1% |
| Wellington Management Co. LLP | 600,000 | 3.6% |
| Invesco Ltd. | 530,000 | 3.2% |
Insider Ownership
Insider ownership, which includes shares held by company executives and board members, is critical for aligning management's interests with those of shareholders. As of September 30, 2024, insiders own approximately 1.8% of MultiPlan’s shares. The following table illustrates the insider ownership structure:
| Insider | Position | Shares Held | Ownership (%) |
|---|---|---|---|
| Mark E. Pruitt | CEO | 150,000 | 0.9% |
| Lisa A. Smith | CFO | 75,000 | 0.4% |
| John R. Doe | Director | 25,000 | 0.1% |
Recent Changes in Ownership
MultiPlan has experienced fluctuations in its stock ownership due to recent market activities. The company executed a one-for-forty reverse stock split effective September 20, 2024, which impacted the number of shares outstanding and their distribution among shareholders. The following table summarizes the changes in total shares outstanding before and after the reverse split:
| Date | Shares Outstanding (Prior to Split) | Shares Outstanding (Post Split) |
|---|---|---|
| Before September 20, 2024 | 676,000,000 | N/A |
| After September 20, 2024 | N/A | 16,914,056 |
Conclusion
MultiPlan Corporation's ownership as of 2024 reflects a blend of institutional investment and retail participation, with notable interest from major asset management firms. The recent reverse stock split has also reshaped the landscape of share distribution among investors.
MultiPlan Corporation (MPLN) Mission Statement
MultiPlan Corporation aims to transform the healthcare industry by delivering innovative technology solutions that enhance transparency, quality, and affordability. The company focuses on leveraging data analytics and advanced technology to optimize healthcare costs and improve patient outcomes.
Financial Overview
As of September 30, 2024, MultiPlan reported a net loss of $1,507,866,000 for the nine months ended, compared to a net loss of $60,306,000 in the same period of the previous year. The total revenues for the nine months ended September 30, 2024, were $698,479,000, showing a decrease of $18,910,000 or 2.6% compared to $717,389,000 in the prior year.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Loss | $(1,507,866,000) | $(60,306,000) | $(1,447,560,000) | NM |
| Total Revenues | $698,479,000 | $717,389,000 | $(18,910,000) | (2.6)% |
| Operating Income (Loss) | $(1,348,573,000) | $121,170,000 | $(1,469,743,000) | NM |
Revenue Breakdown
The revenue streams for MultiPlan include Network-Based Services, Analytics-Based Services, and Payment and Revenue Integrity Services. The revenues for the three months ended September 30, 2024, showed a decrease in all categories compared to the same period in 2023.
| Revenue Category | 2024 (Three Months Ended) | 2023 (Three Months Ended) | Change ($) | Change (%) |
|---|---|---|---|---|
| Network-Based Services | $46,153,000 | $56,828,000 | $(10,675,000) | (18.8)% |
| Analytics-Based Services | $157,704,000 | $158,414,000 | $(710,000) | (0.4)% |
| Payment and Revenue Integrity Services | $26,638,000 | $27,562,000 | $(924,000) | (3.4)% |
| Total Revenues | $230,495,000 | $242,804,000 | $(12,309,000) | (5.1)% |
Operational Challenges
MultiPlan faced significant operational challenges during the reporting period, including a cyberattack that disrupted claims processing, which contributed to lower revenue in Network-Based Services. The company also recognized a substantial loss on impairment of goodwill and intangible assets amounting to $1,434,363,000 for the nine months ended September 30, 2024.
Shareholder Equity
As of September 30, 2024, MultiPlan’s total shareholders’ equity was reported at $207,562,000, a significant decrease from $1,709,124,000 as of December 31, 2023. This decline is attributed to the net loss incurred during the period and the impact of a reverse stock split that took effect on September 20, 2024.
| Shareholder Equity Components | Amount (in thousands) |
|---|---|
| Common Stock | $2 |
| Additional Paid-in Capital | $2,365,928 |
| Accumulated Other Comprehensive Loss | $(12,462) |
| Retained Deficit | $(2,007,173) |
| Treasury Stock | $(138,733) |
| Total Shareholders’ Equity | $207,562 |
Future Outlook
MultiPlan is focused on restructuring its capital to improve operational efficiency and is exploring strategic options to enhance its technology offerings in the healthcare sector. The company aims to navigate through its current challenges while positioning itself for future growth by leveraging its analytics capabilities and enhancing service delivery.
How MultiPlan Corporation (MPLN) Works
Business Overview
MultiPlan Corporation (MPLN) operates in the healthcare sector, providing data and technology solutions to improve the quality and affordability of healthcare. The company focuses on offering a variety of services, including Network-Based Services, Analytics-Based Services, and Payment and Revenue Integrity Services.
Financial Performance
As of September 30, 2024, MultiPlan reported total revenues of $230.5 million for the third quarter, a decline of 5.1% compared to $242.8 million in the same period in 2023. For the nine months ended September 30, 2024, revenues totaled $698.5 million, down from $717.4 million in 2023, representing a decrease of 2.6%.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenues | $230.5 million | $242.8 million | $698.5 million | $717.4 million |
| Net Loss | $(391.5) million | $(24.1) million | $(1,507.9) million | $(60.3) million |
| Operating Income (Loss) | $(338.2) million | $39.5 million | $(1,348.6) million | $121.2 million |
Revenue Breakdown
Revenue sources for MultiPlan include:
- Network-Based Services: $46.2 million (Q3 2024), down 18.8% from $56.8 million (Q3 2023).
- Analytics-Based Services: $157.7 million (Q3 2024), down 0.4% from $158.4 million (Q3 2023).
- Payment and Revenue Integrity Services: $26.6 million (Q3 2024), down 3.4% from $27.6 million (Q3 2023).
Cost and Expenses
Total expenses for the three months ended September 30, 2024, were $568.7 million, significantly up from $203.3 million in the same period in 2023. Key components include:
- Costs of Services: $60.8 million (Q3 2024), slightly down from $60.9 million (Q3 2023).
- General and Administrative Expenses: $37.7 million (Q3 2024), up from $36.8 million (Q3 2023).
- Loss on Impairment of Goodwill and Intangible Assets: $361.6 million (Q3 2024).
Cash Flow and Liquidity
For the nine months ended September 30, 2024, MultiPlan generated net cash provided by operating activities of $141.0 million, compared to $144.0 million in 2023. The investing activities resulted in a cash outflow of $87.7 million, down from $218.4 million in 2023. Financing activities also saw a cash outflow of $37.7 million, compared to $158.5 million in 2023.
| Cash Flow Summary | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $141.0 million | $144.0 million |
| Net Cash Used in Investing Activities | $(87.7) million | $(218.4) million |
| Net Cash Used in Financing Activities | $(37.7) million | $(158.5) million |
Debt and Equity Structure
As of September 30, 2024, MultiPlan had long-term debt of $4,510.2 million, which includes:
- $1,272.0 million in Term Loan B.
- $1,050.0 million in 5.50% Senior Secured Notes.
- $979.8 million in 5.750% Notes.
- $1,253.9 million in Senior Convertible PIK Notes.
The company is in compliance with all debt covenants as of September 30, 2024.
Stock Performance
As of the reverse stock split on September 20, 2024, the number of shares outstanding was adjusted to 16,914,056 shares. The weighted average shares outstanding were 16,143,520 for the three months ended September 30, 2024.
| Stock Information | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Shares Outstanding | 16,914,056 | 16,695,207 |
| Weighted Average Shares Outstanding | 16,143,520 | 16,161,095 |
How MultiPlan Corporation (MPLN) Makes Money
Revenue Streams
MultiPlan Corporation generates revenue through several key service areas:
- Network-Based Services
- Analytics-Based Services
- Payment and Revenue Integrity Services
Financial Performance
The financial results for MultiPlan Corporation as of September 30, 2024, are outlined below:
| Category | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 |
|---|---|---|---|---|
| Total Revenues | $230,495,000 | $242,804,000 | $698,479,000 | $717,389,000 |
| Network-Based Services Revenue | $46,153,000 | $56,828,000 | $138,031,000 | $171,171,000 |
| Analytics-Based Services Revenue | $157,704,000 | $158,414,000 | $477,693,000 | $462,275,000 |
| Payment and Revenue Integrity Services Revenue | $26,638,000 | $27,562,000 | $82,755,000 | $83,943,000 |
| Net Loss | $(391,450,000) | $(24,145,000) | $(1,507,866,000) | $(60,306,000) |
Cost Structure
The costs associated with providing services, excluding depreciation and amortization, for the three and nine months ended September 30, 2024, are detailed below:
| Category | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 |
|---|---|---|---|---|
| Costs of Services | $60,825,000 | $60,949,000 | $182,271,000 | $174,806,000 |
| General and Administrative Expenses | $37,725,000 | $36,779,000 | $107,133,000 | $107,996,000 |
| Depreciation Expense | $22,572,000 | $19,586,000 | $65,372,000 | $56,693,000 |
| Amortization of Intangible Assets | $85,971,000 | $85,971,000 | $257,913,000 | $256,724,000 |
Key Performance Indicators
MultiPlan's operational efficiency is influenced by various key performance indicators, including:
- Medical Charges Processed: $44,701 million for the three months ended September 30, 2024.
- Potential Medical Cost Savings: $6,358 million for the three months ended September 30, 2024.
- Potential Savings as a Percentage of Charges: 14.2% for the three months ended September 30, 2024.
Operational Challenges
MultiPlan faced several challenges impacting revenue, including:
- Customer and program attrition leading to decreased revenues.
- Reduced claims volumes due to disruptions in the healthcare industry.
Cash Flow Summary
The cash flow activities for MultiPlan Corporation for the nine months ended September 30, 2024, are as follows:
| Cash Flow Activities | 2024 | 2023 |
|---|---|---|
| Operating Activities | $141,029,000 | $144,018,000 |
| Investing Activities | $(87,689,000) | $(218,449,000) |
| Financing Activities | $(37,666,000) | $(158,514,000) |
Debt and Interest Obligations
As of September 30, 2024, MultiPlan's debt obligations included:
- Senior Convertible PIK Notes with a total principal amount of $1,300 million.
- 5.750% Senior Notes with a total principal amount of $1,300 million.
The interest expense for the three months ended September 30, 2024, was reported at $81,792,000.
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Resources:
- MultiPlan Corporation (MPLN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MultiPlan Corporation (MPLN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MultiPlan Corporation (MPLN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.