Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - MultiPlan Corp | tm219686d1_8ka.htm |
Exhibit 99.1
| MultiPlan Corporation | ||||||||
| Consolidated Balance Sheets | ||||||||
| ($ in thousands, except share and per share data) | ||||||||
| December 31, | ||||||||
| | 2020 | 2019 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 126,755 | $ | 21,825 | ||||
| Trade accounts receivable, net | 63,198 | 77,071 | ||||||
| Prepaid expenses | 17,708 | 14,393 | ||||||
| Prepaid taxes | - | 2,130 | ||||||
| Other current assets, net | 1,193 | 195 | ||||||
| Total current assets | 208,854 | 115,614 | ||||||
| Property and equipment, net | 187,631 | 177,992 | ||||||
| Operating lease right-of-use assets | 31,339 | 29,998 | ||||||
| Goodwill | 4,257,336 | 4,142,013 | ||||||
| Other intangibles, net | 3,584,187 | 3,886,643 | ||||||
| Other assets | 14,231 | 8,151 | ||||||
| Total assets | $ | 8,283,578 | $ | 8,360,411 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 15,261 | $ | 9,565 | ||||
| Accrued interest | 31,528 | 17,966 | ||||||
| Accrued taxes | 10,176 | 382 | ||||||
| Operating lease obligation, short-term | 6,439 | 9,521 | ||||||
| Accrued compensation | 21,843 | 26,311 | ||||||
| Other accrued expenses | 27,251 | 22,041 | ||||||
| Total current liabilities | 112,498 | 85,786 | ||||||
| Long-term debt | 4,578,488 | 5,397,122 | ||||||
| Operating lease obligation, long-term | 27,499 | 23,086 | ||||||
| Private Placement Warrants and unvested founder shares | 106,595 | - | ||||||
| Deferred income taxes | 900,633 | 869,199 | ||||||
| Total liabilities | 5,725,713 | 6,375,193 | ||||||
| Commitments and contingencies (Note 13) | ||||||||
| Shareholders’ equity: | ||||||||
| Shareholder interests | ||||||||
| Preferred stock, $0.0001 par value — 10,000,000 shares authorized; no shares issued | - | - | ||||||
| Common stock, $0.0001 par value — 1,500,000,000 shares authorized; 664,183,318 and 415,700,000 issued; 655,075,355 and 415,700,000 outstanding | 66 | 42 | ||||||
| Additional paid-in capital | 2,530,410 | 1,347,613 | ||||||
| Retained earnings | 116,999 | 637,563 | ||||||
| Treasury stock — 9,107,963 and 0 shares | (89,610 | ) | - | |||||
| Total shareholders’ equity | 2,557,865 | 1,985,218 | ||||||
| Total liabilities and shareholders’ equity | $ | 8,283,578 | $ | 8,360,411 | ||||
| MultiPlan Corporation | ||||||||
| Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income | ||||||||
| ($ in thousands, except share and per share data) | ||||||||
| | Years Ended December 31, | |||||||
| | 2020 | 2019 | ||||||
| Revenues | $ | 937,763 | $ | 982,901 | ||||
| Costs of services (exclusive of depreciation and amortization of intangible assets shown below) | 318,675 | 149,607 | ||||||
| General and administrative expenses | 355,635 | 75,225 | ||||||
| Depreciation | 60,577 | 55,807 | ||||||
| Amortization of intangible assets | 334,697 | 334,053 | ||||||
| Total expenses | 1,069,584 | 614,692 | ||||||
| Operating (loss) income | (131,821 | ) | 368,209 | |||||
| Interest expense | 335,638 | 376,346 | ||||||
| Interest income | (288 | ) | (196 | ) | ||||
| Loss (gain) on extinguishment of debt | 102,993 | (18,450 | ) | |||||
| Loss on investments | 12,165 | - | ||||||
Change in fair value of Private Placement Warrants and unvested founder shares | (35,422 | ) | - | |||||
| Net (loss) income before income taxes | (546,907 | ) | 10,509 | |||||
| (Benefit) Provision for income taxes | (26,343 | ) | 799 | |||||
| Net (loss) income | (520,564 | ) | 9,710 | |||||
| Weighted average shares outstanding - Basic and Diluted (1) | 470,785,192 | 415,700,000 | ||||||
| Net (loss) income per share - Basic and Diluted | $ | (1.11 | ) | $ | 0.02 | |||
| Comprehensive (loss) income | $ | (520,564 | ) | $ | 9,710 | |||
(1) In accordance with the accounting guidance, the number of shares outstanding prior to the business combination of Polaris Parent Corp. and Churchill Capital Corp III (the “Transactions”) was 415,700,000, which represents the 10 historical shares of Polaris Parent Corp. multiplied by the exchange ratio established in the Transactions (41,570,000:1). At the date of the Transactions, the number of shares outstanding increased to 655,057,192. The increase represents the shares issued by Churchill Capital Corp III prior to the Transactions and the shares issued to PIPE investors at the time of the Transactions, net of shares redeemed and held in treasury upon closing. As of December 31, 2020, the number of shares outstanding is 655,075,355.
| MultiPlan Corporation | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| ($ in thousands) | ||||||||
| Years Ended December 31, | ||||||||
| 2020 | 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | (520,564 | ) | $ | 9,710 | |||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation | 60,577 | 55,807 | ||||||
| Amortization of intangible assets | 334,697 | 334,053 | ||||||
| Amortization of the right-of-use asset | 8,405 | 9,594 | ||||||
| Stock-based compensation | 406,054 | (14,880 | ) | |||||
| Deferred tax benefit | (45,041 | ) | (111,404 | ) | ||||
| Non-cash interest costs | 22,888 | 13,368 | ||||||
| Loss (gain) on extinguishment of debt | 102,993 | (18,450 | ) | |||||
| Losses on investments | 12,165 | - | ||||||
| Loss on disposal of property and equipment | 610 | 163 | ||||||
| Change in fair value of Private Placement Warrants and unvested founder shares | (35,422 | ) | - | |||||
| Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: | ||||||||
| Accounts receivable, net | 14,758 | 5,279 | ||||||
| Prepaid expenses and other assets | (7,480 | ) | (8,822 | ) | ||||
| Prepaid taxes | 2,130 | (1,426 | ) | |||||
| Operating lease obligation | (8,461 | ) | (9,462 | ) | ||||
| Accounts payable and accrued expenses and other | 29,065 | 20,783 | ||||||
| Net cash provided by operating activities | 377,374 | 284,313 | ||||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (70,813 | ) | (66,414 | ) | ||||
| HST Acquisition, net of cash acquired | (140,032 | ) | - | |||||
| Net cash used in investing activities | (210,845 | ) | (66,414 | ) | ||||
| Financing activities: | ||||||||
| Repayments of Term Loan G | (369,000 | ) | (100,000 | ) | ||||
| Extinguishment of 7.125% Notes | (1,615,583 | ) | - | |||||
| Extinguishment of Senior PIK Notes | (1,202,302 | ) | (101,013 | ) | ||||
| Issuance of Senior Convertible PIK Notes | 1,267,500 | - | ||||||
| Issuance of 5.750% Notes | 1,300,000 | - | ||||||
| Borrowings on revolving credit facility | 98,000 | - | ||||||
| Repayment of revolving credit facility | (98,000 | ) | - | |||||
| Effect of the Transactions (see note 4) | 682,408 | - | ||||||
| Purchase of treasury stock | (101,123 | ) | - | |||||
| Payment of debt issuance costs | (23,489 | ) | - | |||||
| Payments on finance leases, net | (10 | ) | (75 | ) | ||||
| Net cash used in financing activities | (61,599 | ) | (201,088 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 104,930 | 16,811 | ||||||
| Cash and cash equivalents at beginning of period | 21,825 | 5,014 | ||||||
| Cash and cash equivalents at end of period | $ | 126,755 | $ | 21,825 | ||||
| Noncash investing and financing activities: | ||||||||
| Purchases of property and equipment not yet paid | $ | 4,334 | $ | 3,768 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | (312,349 | ) | $ | (363,907 | ) | ||
| Income taxes, net of refunds | $ | (3,917 | ) | $ | (114,569 | ) | ||
MultiPlan Corporation
Calculation of EBITDA and Adjusted EBITDA
| ($ in thousands) | For the Year Ended | |||||||
| Dec. 31, 2020 | Dec. 31, 2019 | |||||||
| Net income (loss) - GAAP | $ | (520,564 | ) | $ | 9,710 | |||
| Adjustments: | ||||||||
| Interest expense | 335,638 | 376,346 | ||||||
| Interest income | (288 | ) | (196 | ) | ||||
| Income tax (benefit) provision | (26,343 | ) | 799 | |||||
| Depreciation | 60,577 | 55,807 | ||||||
| Amortization of intangible assets | 334,697 | 334,053 | ||||||
| Non-income taxes (a) | 3,221 | 1,944 | ||||||
| EBITDA | $ | 186,938 | $ | 778,463 | ||||
| Adjustments: | ||||||||
| Other expense (b) | 1,896 | 1,947 | ||||||
| Change in fair value of Private Placement Warrants and unvested founder shares (c) | (35,422 | ) | - | |||||
| Transaction related expenses (d) | 31,689 | 3,270 | ||||||
| Loss on investments (e) | 12,165 | - | ||||||
| Loss (gain) on debt extinguishment (f) | 102,993 | (18,450 | ) | |||||
| Stock-based compensation (g) | 406,054 | (14,880 | ) | |||||
| Adjusted EBITDA | $ | 706,313 | $ | 750,350 | ||||
| ($ in thousands) | For the Three Months Ended | |||||||||||||||||||
| Dec. 31, 2020 | Sept. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||||||||||||||||
| Net income (loss) - GAAP | $ | (173,322 | ) | $ | (288,402 | ) | $ | (56,246 | ) | $ | (2,594 | ) | $ | 11,844 | ||||||
| Adjustments: | ||||||||||||||||||||
| Interest expense | 76,348 | 82,275 | 86,050 | 90,965 | 89,908 | |||||||||||||||
| Interest income | (59 | ) | (81 | ) | (77 | ) | (71 | ) | (63 | ) | ||||||||||
| Income tax (benefit) provision | (15,124 | ) | (1,080 | ) | (9,456 | ) | (683 | ) | 990 | |||||||||||
| Depreciation | 15,674 | 15,262 | 15,135 | 14,506 | 14,084 | |||||||||||||||
| Amortization of intangible assets | 84,157 | 83,513 | 83,514 | 83,513 | 83,513 | |||||||||||||||
| Non-income taxes (a) | 1,886 | 415 | 481 | 439 | 535 | |||||||||||||||
| EBITDA | $ | (10,440 | ) | $ | (108,098 | ) | $ | 119,401 | $ | 186,075 | $ | 200,811 | ||||||||
| Adjustments: | ||||||||||||||||||||
| Other expense (b) | 587 | 1,012 | 149 | 148 | 499 | |||||||||||||||
| Change in fair value of Private Placement Warrants and unvested founder shares (c) | (35,422 | ) | - | - | - | - | ||||||||||||||
| Transaction related expenses (d) | 26,527 | 2,464 | 2,338 | 360 | 3 | |||||||||||||||
| Loss on investments (e) | 4,381 | 7,784 | - | - | - | |||||||||||||||
| Loss on debt extinguishment (f) | 102,993 | - | - | - | - | |||||||||||||||
| Stock-based compensation (g) | 106,426 | 262,356 | 27,911 | 9,361 | (14,572 | ) | ||||||||||||||
| Adjusted EBITDA | $ | 195,052 | $ | 165,518 | $ | 149,799 | $ | 195,944 | $ | 186,741 | ||||||||||
(a) Non-income taxes includes personal property taxes, real estate taxes, sales and use taxes and franchise taxes which are included in costs of services and general and administrative expenses in our consolidated statements of income and comprehensive income.
(b) Represents miscellaneous expenses, gain or loss on disposal of assets, gain or loss on disposal of leases, tax penalties, management fees, and costs associated with the integration of acquired companies into MultiPlan.
(c) Represents the changes in fair value of the Private Placement Warrants and unvested founder shares.
(d) Represents ordinary course transaction costs and transaction costs related to the Transactions, the acquisition of HST and the acquisition of Discovery Health Partners.
(e) Loss on investments primarily reflects the change in fair value of shares purchased prior to the Transaction. These shares are now held in treasury.
(f) Represents the 2019 gain related to the repurchase and cancellation of $121.3 million in aggregate principal amount of Senior PIK Notes and the 2020 loss on debt extinguishment related to the prepayment of $369.0 million of indebtedness under our term loan facility, redemption in full of the 7.125% Senior Notes on October 29, 2020 and redemption in full of the Senior PIK Notes on October 8, 2020.
(g) Includes the cost of employee and non-employee director stock-based compensation plans.
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