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Delaware
|
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6411
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83-3536151
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(State or Other Jurisdiction of
Incorporation or Organization) |
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(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
William B. Brentani
Simpson Thacher & Bartlett LLP 2475 Hanover Street Palo Alto, California 94304 (650) 251-5000 |
| |
Jeffrey Doctoroff
Senior Vice President, General Counsel and Secretary MultiPlan Corporation 115 Fifth Avenue New York, New York 10003 (212) 780-2000 |
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Large accelerated filer
☐
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Accelerated filer
☐
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Non-accelerated filer
☒
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Smaller reporting company
☐
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| | | |
Emerging growth company
☐
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Page
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| | | | F-1 | | |
| | |
Nine Months
Ended September 30, 2020 |
| |
Period from October 30,
2019 (inception) through December 31, 2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Statement of Operations Data: | | | | | | | | | | | | | |
Revenues
|
| | | $ | — | | | | | $ | — | | |
Loss from operations
|
| | | $ | (10,676,879) | | | | | $ | (1,450) | | |
Interest earned on cash equivalents held in Trust Account
|
| | | $ | 4,375,998 | | | | | $ | — | | |
Net (loss) income
|
| | | $ | (6,961,179) | | | | | $ | (1,450) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 30,815,111 | | | | | | 25,000,000 | | |
Basic and diluted net loss per common share(2)
|
| | | $ | (0.31) | | | | | $ | (0.00) | | |
| | |
As of September 30, 2020
|
| |
As of December 31, 2019
|
| ||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Total assets
|
| | | $ | 1,107,513,145 | | | | | $ | 318,930 | | |
| | |
Nine
Months Ended September 30, 2020 |
| |
Nine
Months Ended September 30, 2019 |
| |
Year
Ended December 31, 2019 |
| |
Year
Ended December 31, 2018 |
| |
Year
Ended December 31, 2017 |
| |
May 2 –
December 31, 2016 |
| | |
January 1 –
June 6, 2016 |
| |
Year Ended
December 31, 2015 |
| ||||||||||||||||||||||||
($ in thousands)
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| | |
Predecessor
|
| |
Predecessor
|
| ||||||||||||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| | |
(unaudited)
|
| |
(unaudited)
|
| |||||||||||||||
Consolidated Statements of Income and Comprehensive
Income Data: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues(1) | | | | $ | 682,419 | | | | | $ | 736,497 | | | | | $ | 982,901 | | | | | $ | 1,040,883 | | | | | $ | 1,067,266 | | | | | $ | 575,889 | | | | | | $ | 412,597 | | | | | $ | 865,094 | | |
Operating (loss) income
|
| | | $ | (99,400) | | | | | $ | 265,530 | | | | | $ | 368,209 | | | | | $ | 427,541 | | | | | $ | 363,636 | | | | | $ | 89,415 | | | | | | $ | (50,607) | | | | | $ | 245,570 | | |
Net (loss) income
|
| | | $ | (347,242) | | | | | $ | (2,134) | | | | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | 648,132 | | | | | $ | (56,503) | | | | | | $ | (247,598) | | | | | $ | 7,749 | | |
Basic and diluted net (loss) income per share:
|
| | | $ | (34,724,200) | | | | | $ | (213,400) | | | | | $ | 971 | | | | | $ | 3,622 | | | | | $ | 64,813 | | | | | $ | (5,650) | | | | | | $ | (24,760) | | | | | $ | 775 | | |
Other Financial Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical charges processed(2)
|
| | | $ | 76,600,000 | | | | | $ | 79,600,000 | | | | | $ | 106,300,000 | | | | | $ | 101,600,000 | | | | | $ | 97,400,000 | | | | | | — | | | | | | | — | | | | | $ | 88,600,000 | | |
Medical cost potential savings(3)
|
| | | | 18.2% | | | | | | 17.5% | | | | | | 17.8% | | | | | | 18.3% | | | | | | 18.3% | | | | | | — | | | | | | | — | | | | | | 17.2% | | |
Capital expenditures(4)
|
| | | $ | 49,322 | | | | | $ | 48,020 | | | | | $ | 66,414 | | | | | $ | 63,556 | | | | | $ | 60,709 | | | | | $ | 31,055 | | | | | | $ | 22,602 | | | | | $ | 49,714 | | |
Total assets(5)
|
| | | $ | 8,400,027 | | | | | $ | 8,503,894 | | | | | $ | 8,360,411 | | | | | $ | 8,642,973 | | | | | $ | 8,987,709 | | | | | $ | 9,285,126 | | | | | | | — | | | | | $ | 5,297,921 | | |
EBITDA(6) | | | | $ | 197,378 | | | | | $ | 577,652 | | | | | $ | 778,463 | | | | | $ | 815,503 | | | | | $ | 731,953 | | | | | $ | 309,651 | | | | | | $ | (77,656) | | | | | $ | 473,581 | | |
Adjusted EBITDA(6)
|
| | | $ | 511,261 | | | | | $ | 563,609 | | | | | $ | 750,350 | | | | | $ | 824,886 | | | | | $ | 812,086 | | | | | $ | 416,884 | | | | | | $ | 298,653 | | | | | $ | 611,845 | | |
| | |
Nine Months
Ended September 30, 2020 |
| |
Nine Months
Ended September 30, 2019 |
| |
Year
Ended December 31, 2019 |
| |
Year
Ended December 31, 2018 |
| |
Year
Ended December 31, 2017 |
| |
May 2 —
December 31, 2016 |
| | |
January 1 —
June 6, 2016 |
| |
Year
Ended December 31, 2015 |
| ||||||||||||||||||||||||
($ in thousands)
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| | |
Predecessor
|
| |
Predecessor
|
| ||||||||||||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| | |
(unaudited)
|
| |
(unaudited)
|
| |||||||||||||||
Net (loss) income
|
| | | $ | (347,242) | | | | | $ | (2,134) | | | | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | 648,132 | | | | | $ | (56,503) | | | | | | $ | (247,598) | | | | | $ | 7,749 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense(a)
|
| | | | 259,290 | | | | | | 286,438 | | | | | $ | 376,346 | | | | | $ | 383,261 | | | | | $ | 281,972 | | | | | $ | 155,140 | | | | | | $ | 81,385 | | | | | $ | 152,127 | | |
Interest income
|
| | | | (229) | | | | | | (133) | | | | | $ | (196) | | | | | $ | (51) | | | | | $ | (9) | | | | | $ | (19) | | | | | | | — | | | | | $ | (12) | | |
Income tax (benefit) provision
|
| | | | (11,219) | | | | | | (191) | | | | | $ | 799 | | | | | $ | 8,108 | | | | | $ | (586,512) | | | | | $ | (9,203) | | | | | | $ | (11,701) | | | | | $ | 85,706 | | |
Depreciation
|
| | | | 44,903 | | | | | | 41,723 | | | | | $ | 55,807 | | | | | $ | 52,268 | | | | | $ | 53,002 | | | | | $ | 30,244 | | | | | | $ | 19,818 | | | | | $ | 41,650 | | |
Amortization of intangible assets
|
| | | | 250,540 | | | | | | 250,540 | | | | | $ | 334,053 | | | | | $ | 334,053 | | | | | $ | 334,053 | | | | | $ | 189,297 | | | | | | $ | 80,152 | | | | | $ | 184,967 | | |
Non-income taxes(b)
|
| | | | 1,335 | | | | | | 1,409 | | | | | $ | 1,944 | | | | | $ | 1,641 | | | | | $ | 1,315 | | | | | $ | 695 | | | | | | $ | 288 | | | | | $ | 1,394 | | |
EBITDA
|
| | | $ | 197,378 | | | | | $ | 577,652 | | | | | $ | 778,463 | | | | | $ | 815,503 | | | | | $ | 731,953 | | | | | $ | 309,651 | | | | | | $ | (77,656) | | | | | $ | 473,581 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other expense (income)(c)
|
| | | | 1,308 | | | | | | 1,448 | | | | | $ | 1,947 | | | | | $ | 4,617 | | | | | $ | 5,857 | | | | | $ | 3,727 | | | | | | $ | 3,144 | | | | | $ | 6,252 | | |
Transaction related expenses(d)
|
| | | | 5,162 | | | | | | 3,267 | | | | | $ | 3,270 | | | | | $ | 49 | | | | | $ | 3,435 | | | | | $ | 74,503 | | | | | | $ | 14,907 | | | | | $ | 3 | | |
Loss on extinguishments and modification of
debt(e) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 20,053 | | | | | | — | | | | | | $ | 127,307 | | | | | | — | | |
Loss on equity investments(f)
|
| | | | 7,784 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | |
Gain on repurchase and cancellation of notes(g)
|
| | | | — | | | | | | (18,450) | | | | | $ | (18,450) | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | |
Stock-based compensation(h)
|
| | | | 299,629 | | | | | | (308) | | | | | $ | (14,880) | | | | | $ | 4,717 | | | | | $ | 50,788 | | | | | $ | 29,003 | | | | | | $ | 230,951 | | | | | $ | 132,009 | | |
Adjusted EBITDA
|
| | | $ | 511,261 | | | | | $ | 563,609 | | | | | $ | 750,350 | | | | | $ | 824,886 | | | | | $ | 812,086 | | | | | $ | 416,884 | | | | | | $ | 298,653 | | | | | $ | 611,845 | | |
($ in thousands, other than share and per share data)
|
| |
Nine Months
Ended September 30, 2020 |
| |
Year Ended
December 31, 2019 |
| ||||||
Summary Unaudited Pro Forma Condensed Combined Statements of (Loss) Income Data
|
| | | ||||||||||
Pro Forma as adjusted net (loss) income attributable to shareholders
|
| | | $ | (327,130) | | | | | $ | 29,796 | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 676,556,145 | | | | | | 676,556,145 | | |
Basic and diluted net (loss) income per share
|
| | | $ | (0.48) | | | | | $ | 0.04 | | |
Summary Unaudited Pro Forma Condensed Combined Balance Sheets Data
|
| | | | | | | | | | | | |
Total current assets
|
| | | $ | 226,167 | | | | | | | | |
Total assets
|
| | | $ | 8,228,351 | | | | | | | | |
Total current liabilities
|
| | | $ | 90,583 | | | | | | | | |
Total liabilities
|
| | | $ | 5,643,754 | | | | | | | | |
Shareholders’ equity
|
| | | $ | 2,584,597 | | | | | | | | |
| | |
As of and for the
Nine Months Ended September 30, 2020 |
| |
As of and for the
Year Ended December 31, 2019 |
| ||||||||||||||||||
| | |
Book value per
share – basic and diluted(1) |
| |
Net loss per
share – basic and diluted |
| |
Book value per
share – basic and diluted(1) |
| |
Net income (loss)
per share – basic and diluted |
| ||||||||||||
Churchill | | | | | | | | | | | | | | | | | | | | | |||||
Historical
|
| | | $ | 0.16 | | | | | $ | (0.31)(2) | | | | | $ | 0.00 | | | | | $ | (0.00) | | |
Pro forma as adjusted
|
| | | $ | 3.82 | | | | | $ | (0.48) | | | | | | | | | | | $ | 0.04 | | |
Multiplan Parent | | | | | | | | | | | | | | | | | | | | | | | | | |
Historical
|
| | | $ | 193,760,400 | | | | | $ | (34,724,200) | | | | | $ | 198,521,800 | | | | | $ | 971,000 | | |
Equivalent pro forma as adjusted(3)
|
| | | $ | 158,797,400 | | | | | $ | (19,953,600) | | | | | | | | | | | $ | 1,662,800 | | |
| | |
Nine Months Ended
September 30, 2020 |
| |
Period from October 30,
2019 (inception) through December 31, 2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Statement of Operations Data: | | | | | | | | | | | | | |
Revenues
|
| | | $ | — | | | | | $ | — | | |
Loss from operations
|
| | | $ | (10,676,879) | | | | | $ | (1,450) | | |
Interest earned on cash equivalents held in Trust Account
|
| | | $ | 4,375,998 | | | | | $ | — | | |
Net (loss) income
|
| | | $ | (6,961,179) | | | | | $ | (1,450) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 30,815,111 | | | | | | 25,000,000 | | |
Basic and diluted net loss per common share(2)
|
| | | $ | (0.31) | | | | | $ | (0.00) | | |
| | |
As of September 30, 2020
|
| |
As of December 31, 2019
|
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Balance Sheet Data: | | | | | | | | | | | | | |
Cash
|
| | | $ | 3,189,455 | | | | | $ | 34,000 | | |
Cash equivalents held in Trust Account, Restricted
|
| | | $ | 1,104,025,998 | | | | | $ | — | | |
Total assets
|
| | | $ | 1,107,513,145 | | | | | $ | 318,930 | | |
Total liabilities
|
| | | $ | 49,070,794 | | | | | $ | 295,380 | | |
Stockholders’ equity
|
| | | $ | 5,000,003 | | | | | $ | 23,550 | | |
| | |
Nine
Months Ended September 30, 2020 |
| |
Nine
Months Ended September 30, 2019 |
| |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| |
May 2 –
December 31, 2016 |
| | |
January 1 –
June 6, 2016 |
| |
Year Ended
December 31, 2015 |
| ||||||||||||||||||||||||
($ in thousands except share data)
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| |
Successor
|
| | |
Predecessor
|
| |
Predecessor
|
| ||||||||||||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| | |
(unaudited)
|
| |
(unaudited)
|
| |||||||||||||||
Consolidated Statements of Income and Comprehensive Income Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues(1) | | | | $ | 682,419 | | | | | $ | 736,497 | | | | | $ | 982,901 | | | | | $ | 1,040,883 | | | | | $ | 1,067,266 | | | | | $ | 575,889 | | | | | | $ | 412,597 | | | | | $ | 865,094 | | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | 244,445 | | | | | | 116,191 | | | | | | 149,607 | | | | | | 149,463 | | | | | | 193,655 | | | | | | 106,639 | | | | | | | 175,470 | | | | | | 217,956 | | |
General and administrative
expenses |
| | | | 241,931 | | | | | | 62,513 | | | | | | 75,225 | | | | | | 77,558 | | | | | | 122,920 | | | | | | 160,294 | | | | | | | 187,764 | | | | | | 174,951 | | |
Depreciation
|
| | | | 44,903 | | | | | | 41,723 | | | | | | 55,807 | | | | | | 52,268 | | | | | | 53,002 | | | | | | 30,244 | | | | | | | 19,818 | | | | | | 41,650 | | |
Amortization of intangible
assets |
| | | | 250,540 | | | | | | 250,540 | | | | | | 334,053 | | | | | | 334,053 | | | | | | 334,053 | | | | | | 189,297 | | | | | | | 80,152 | | | | | | 184,967 | | |
Total expenses
|
| | | | 781,819 | | | | | | 470,967 | | | | | | 614,692 | | | | | | 613,342 | | | | | | 703,630 | | | | | | 486,474 | | | | | | | 463,204 | | | | | | 619,524 | | |
Operating income (loss)
|
| | | | (99,400) | | | | | | 265,530 | | | | | | 368,209 | | | | | | 427,541 | | | | | | 363,636 | | | | | | 89,415 | | | | | | | (50,607) | | | | | | 245,570 | | |
Interest expense(2)
|
| | | | 259,290 | | | | | | 286,438 | | | | | | 376,346 | | | | | | 383,261 | | | | | | 281,972 | | | | | | 155,140 | | | | | | | 81,385 | | | | | | 152,127 | | |
Interest income
|
| | | | (229) | | | | | | (133) | | | | | | (196) | | | | | | (51) | | | | | | (9) | | | | | | (19) | | | | | | | — | | | | | | (12) | | |
Loss on extinguishments and modification of debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,053 | | | | | | — | | | | | | | 127,307 | | | | | | — | | |
Gain on repurchase and cancellation of notes
|
| | | | — | | | | | | (18,450) | | | | | | (18,450) | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | |
Net (loss) income before income
taxes |
| | | | (358,461) | | | | | | (2,325) | | | | | | 10,509 | | | | | | 44,331 | | | | | | 61,620 | | | | | | (65,706) | | | | | | | (259,299) | | | | | | 93,455 | | |
(Benefit) provision for income
taxes |
| | | | (11,219) | | | | | | (191) | | | | | | 799 | | | | | | 8,108 | | | | | | (586,512) | | | | | | (9,203) | | | | | | | (11,701) | | | | | | 85,706 | | |
Net (loss) income
|
| | | | (347,242) | | | | | | (2,134) | | | | | | 9,710 | | | | | | 36,223 | | | | | | 648,132 | | | | | | (56,503) | | | | | | | (247,598) | | | | | | 7,749 | | |
Weighted-average shares of
common stock outstanding − basic and diluted . |
| | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | | 10 | | | | | | 10 | | |
Net (loss) income per share − basic and diluted
|
| | | $ | (34,724,200) | | | | | $ | (213,400) | | | | | $ | 971 | | | | | $ | 3,622 | | | | | $ | 64,813 | | | | | $ | (5,650) | | | | | | $ | (24,760) | | | | | $ | 775 | | |
Other comprehensive income,
net of tax: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized gain (loss) on change in fair value of derivatives
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | (2,244) | | | | | | (3,971) | | |
Comprehensive (loss)
income |
| | | $ | (347,242) | | | | | $ | (2,134) | | | | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | 648,132 | | | | | $ | (56,503) | | | | | | $ | (249,842) | | | | | $ | 3,778 | | |
Consolidated Balance Sheets Data (at end of period):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 203,807 | | | | | $ | 23,778 | | | | | $ | 21,825 | | | | | $ | 5,014 | | | | | $ | 21,417 | | | | | $ | 26,396 | | | | | | | | | | | | $ | 56,313 | | |
Total assets(3)
|
| | | | 8,400,027 | | | | | | 8,503,894 | | | | | | 8,360,411 | | | | | | 8,642,973 | | | | | | 8,987,709 | | | | | | 9,285,126 | | | | | | | | | | | | | 5,297,921 | | |
Long-term debt
|
| | | | 5,409,451 | | | | | | 5,393,779 | | | | | | 5,397,122 | | | | | | 5,603,413 | | | | | | 5,835,697 | | | | | | 4,700,644 | | | | | | | | | | | | | 2,676,697 | | |
Shareholders’ equity
|
| | | | 1,937,604 | | | | | | 1,987,945 | | | | | | 1,985,218 | | | | | | 1,990,388 | | | | | | 1,949,448 | | | | | | 2,670,238 | | | | | | | | | | | | | 1,378,304 | | |
Cash dividends per share
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 141,971 | | | | | | 38,765 | | | | | | | | | | | | | — | | |
Consolidated Statements of Cash Flows Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows provided by (used in):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 332,301 | | | | | $ | 267,927 | | | | | $ | 284,313 | | | | | $ | 292,303 | | | | | $ | 368,945 | | | | | $ | 157,621 | | | | | | $ | 28,987 | | | | | $ | 347,117 | | |
Investing activities
|
| | | | (150,328) | | | | | | (48,020) | | | | | | (66,414) | | | | | | (63,556) | | | | | | (60,709) | | | | | | (6,838,883) | | | | | | | (22,568) | | | | | | (49,079) | | |
Financing activities
|
| | | | 9 | | | | | | (201,143) | | | | | | (201,088) | | | | | | (245,150) | | | | | | (313,215) | | | | | | 6,707,658 | | | | | | | (52,265) | | | | | | (270,083) | | |
(in millions)
|
| | | | | | |
Share issuance to MultiPlan Parent Owners(1)
|
| | | $ | 4,157.0 | | |
Shares previously issued to Churchill public shareholders, net of redemptions(1)
|
| | | | 1,013.1 | | |
Share issuance to the Sponsor (or any of its affiliates)(1)(2)
|
| | | | 275.0 | | |
Share issuance to Purchasers of the Common PIPE Shares(1)
|
| | | | 1,320.5 | | |
Share consideration – at Closing(3)
|
| | | $ | 6,765.6 | | |
(shares in millions; numbers may not sum due to rounding)
|
| |
Shares
|
| |
%
|
| ||||||
Share issuance to the MultiPlan Parent Owners
|
| | | | 415.7 | | | | | | | | |
Total MultiPlan Parent Owners shares
|
| | | | 415.7 | | | | | | 61.4% | | |
Shares held by current Churchill public shareholders
|
| | | | 110.0 | | | | | | | | |
Less: public shares redeemed
|
| | | | (8.7) | | | | | | | | |
Total held by current Churchill public shareholders
|
| | | | 101.3 | | | | | | 15.0% | | |
Shares held by the Sponsor (or any of its affiliates)(1)
|
| | | | 27.5 | | | | | | 4.1% | | |
Common PIPE Shares
|
| | | | 132.1 | | | | | | 19.5% | | |
Net Churchill shares, Sponsor Shares and Common PIPE Shares
|
| | | | 260.9 | | | | | | 38.6% | | |
Pro Forma shares outstanding(2)
|
| | | | 676.6 | | | | | | 100.0% | | |
| | |
As of
September 30, 2020 |
| | | | | | | | | | |
As of
September 30, 2020 |
| | | | | | | | | | | | | |
As of September 30, 2020
|
| |||||||||||||||
| | |
Churchill
(Historical) |
| |
MultiPlan Parent
(Historical) |
| |
Transactions
Pro Forma Adjustments |
| | | | |
Pro Forma
Combined |
| |
Refinancing
Pro Forma Adjustments |
| | | | | | | |
Pro Forma
Combined As Adjusted |
| ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents(1)
|
| | | $ | 3,189 | | | | | $ | 203,807 | | | | | $ | 1,104,026 | | | |
(A)
|
| | | $ | 893,438 | | | | | $ | (1,652,633) | | | | | | (O) | | | | | $ | 150,772 | | |
| | | | | — | | | | | | — | | | | | | (38,500) | | | |
(B)
|
| | | | — | | | | | | (369,283) | | | | | | (P) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (53,000) | | | |
(C)
|
| | | | — | | | | | | 1,283,750 | | | | | | (Q) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (49,708) | | | |
(D)
|
| | | | — | | | | | | (4,500) | | | | | | (R) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1,300,000 | | | |
(E)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1,267,500 | | | |
(F)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1,235,698) | | | |
(G)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1,521,000) | | | |
(K)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (87,178) | | | |
(M)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Trade accounts receivable, net
|
| | | | — | | | | | | 53,873 | | | | | | — | | | | | | | | | 53,873 | | | | | | — | | | | | | | | | | | | 53,873 | | |
Prepaid expenses and other current assets
|
| | | | 298 | | | | | | 13,902 | | | | | | — | | | | | | | | | 14,200 | | | | | | — | | | | | | | | | | | | 14,200 | | |
Prepaid software and maintenance
|
| | | | — | | | | | | 7,322 | | | | | | — | | | | | | | | | 7,322 | | | | | | — | | | | | | | | | | | | 7,322 | | |
Deferred transaction costs
|
| | | | — | | | | | | 30,217 | | | | | | (30,217) | | | |
(D)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Total current assets
|
| | | | 3,487 | | | | | | 309,121 | | | | | | 656,225 | | | | | | | | | 968,833 | | | | | | (742,666) | | | | | | | | | | | | 226,167 | | |
Cash equivalents held in Trust Account
|
| | | | 1,104,026 | | | | | | — | | | | | | (1,104,026) | | | |
(A)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Property and equipment, net
|
| | | | — | | | | | | 182,270 | | | | | | — | | | | | | | | | 182,270 | | | | | | — | | | | | | | | | | | | 182,270 | | |
Operating lease right-of-use asset
|
| | | | — | | | | | | 31,851 | | | | | | — | | | | | | | | | 31,851 | | | | | | — | | | | | | | | | | | | 31,851 | | |
Goodwill
|
| | | | — | | | | | | 4,142,013 | | | | | | — | | | | | | | | | 4,142,013 | | | | | | — | | | | | | | | | | | | 4,142,013 | | |
Client relationships intangible, net
|
| | | | — | | | | | | 2,930,082 | | | | | | — | | | | | | | | | 2,930,082 | | | | | | — | | | | | | | | | | | | 2,930,082 | | |
Provider network intangible, net
|
| | | | — | | | | | | 638,721 | | | | | | — | | | | | | | | | 638,721 | | | | | | — | | | | | | | | | | | | 638,721 | | |
Other intangibles, net
|
| | | | — | | | | | | 67,300 | | | | | | — | | | | | | | | | 67,300 | | | | | | — | | | | | | | | | | | | 67,300 | | |
Equity investments
|
| | | | — | | | | | | 93,222 | | | | | | (93,222) | | | |
(N)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Other assets
|
| | | | — | | | | | | 5,447 | | | | | | — | | | | | | | | | 5,447 | | | | | | 4,500 | | | | | | (R) | | | | | | 9,947 | | |
Total assets
|
| | | $ | 1,107,513 | | | | | $ | 8,400,027 | | | | | $ | (541,023) | | | | | | | | $ | 8,966,517 | | | | | $ | (738,166) | | | | | | | | | | | $ | 8,228,351 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 8,761 | | | | | $ | 38,905 | | | | | $ | (8,142) | | | |
(C)
|
| | | $ | 9,816 | | | | | $ | — | | | | | | | | | | | $ | 9,816 | | |
| | | | | — | | | | | | — | | | | | | (29,708) | | | |
(D)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Accrued interest
|
| | | | — | | | | | | 70,730 | | | | | | (33,397) | | | |
(G)
|
| | | | 37,333 | | | | | | (37,050) | | | | | | (O) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | (283) | | | | | | (P) | | | | | | — | | |
Accrued taxes
|
| | | | — | | | | | | 17,630 | | | | | | — | | | | | | | | | 17,630 | | | | | | — | | | | | | | | | | | | 17,630 | | |
Income tax payable
|
| | | | 310 | | | | | | — | | | | | | — | | | | | | | | | 310 | | | | | | — | | | | | | | | | | | | 310 | | |
Operating lease obligations
|
| | | | — | | | | | | 6,811 | | | | | | — | | | | | | | | | 6,811 | | | | | | — | | | | | | | | | | | | 6,811 | | |
Accrued compensation
|
| | | | — | | | | | | 33,404 | | | | | | — | | | | | | | | | 33,404 | | | | | | — | | | | | | | | | | | | 33,404 | | |
Accrued legal
|
| | | | — | | | | | | 9,136 | | | | | | — | | | | | | | | | 9,136 | | | | | | — | | | | | | | | | | | | 9,136 | | |
Accrued administrative fees
|
| | | | — | | | | | | 3,593 | | | | | | — | | | | | | | | | 3,593 | | | | | | — | | | | | | | | | | | | 3,593 | | |
Other accrued expenses
|
| | | | — | | | | | | 9,883 | | | | | | — | | | | | | | | | 9,883 | | | | | | — | | | | | | | | | | | | 9,883 | | |
Total current liabilities
|
| | | | 9,071 | | | | | | 190,092 | | | | | | (71,247) | | | | | | | | | 127,916 | | | | | | (37,333) | | | | | | | | | | | | 90,583 | | |
Long-term debt
|
| | | | 1,500 | | | | | | 5,409,451 | | | | | | 1,023,806 | | | |
(F)
|
| | | | 5,266,773 | | | | | | (1,550,402) | | | | | | (O) | | | | | | 4,633,510 | | |
| | | | | — | | | | | | — | | | | | | (1,166,484) | | | |
(G)
|
| | | | — | | | | | | (366,611) | | | | | | (P) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1,500) | | | |
(J)
|
| | | | — | | | | | | 1,283,750 | | | | | | (Q) | | | | | | — | | |
Operating lease obligations
|
| | | | — | | | | | | 28,040 | | | | | | — | | | | | | | | | 28,040 | | | | | | — | | | | | | | | | | | | 28,040 | | |
Deferred income taxes
|
| | | | — | | | | | | 834,840 | | | | | | 56,781 | | | |
(F)
|
| | | | 891,621 | | | | | | — | | | | | | | | | | | | 891,621 | | |
Deferred underwriting fee payable
|
| | | | 38,500 | | | | | | — | | | | | | (38,500) | | | |
(B)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Other long-term liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Total liabilities
|
| | | | 49,071 | | | | | | 6,462,423 | | | | | | (197,144) | | | | | | | | | 6,314,350 | | | | | | (670,596) | | | | | | | | | | | | 5,643,754 | | |
| | |
As of
September 30, 2020 |
| | | | | | | | | | |
As of
September 30, 2020 |
| | | | | | | | | | | | | |
As of
September 30, 2020 |
| |||||||||||||||
| | |
Churchill
(Historical) |
| |
MultiPlan Parent
(Historical) |
| |
Transactions
Pro Forma Adjustments |
| | | | |
Pro Forma
Combined |
| |
Refinancing Pro
Forma Adjustments |
| | | | | | | |
Pro Forma
Combined As Adjusted |
| ||||||||||||||||||
Commitments and contingencies: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Common stock subject to possible
redemption |
| | | $ | 1,053,442 | | | | | $ | — | | | | | $ | (1,053,442) | | | |
(I)
|
| | | $ | — | | | | | $ | — | | | | | | | | | | | $ | — | | |
Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Shareholder interests
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Common stock, $0.001 par value; 1,000 shares
authorized (500 Series A and 500 Series B); 5 shares of Series A and 5 shares of Series B issued and outstanding as of September 30, 2020 |
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Class A common stock, $0.0001 par value;
250,000,000 shares authorized; 4,996,140 and no shares issued and outstanding (excluding 105,003,860 and no shares subject to possible redemption) at September 30, 2020 |
| | | | 1 | | | | | | — | | | | | | 13 | | | |
(E)
|
| | | | 69 | | | | | | — | | | | | | | | | | | | 69 | | |
| | | | | — | | | | | | — | | | | | | 42 | | | |
(K)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 14 | | | |
(I)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1) | | | |
(M)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 27,500,000 shares issued and outstanding at September 30, 2020
|
| | | | 3 | | | | | | — | | | | | | (3) | | | |
(I)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Contributed capital
|
| | | | 11,959 | | | | | | 1,647,284 | | | | | | (41,000) | | | |
(C)
|
| | | | 2,620,890 | | | | | | — | | | | | | | | | | | | 2,620,890 | | |
| | | | | — | | | | | | — | | | | | | (30,217) | | | |
(D)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1,299,987 | | | |
(E)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 186,913 | | | |
(F)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (6,963) | | | |
(H)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1,053,431 | | | |
(I)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1,500 | | | |
(J)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1,521,042) | | | |
(K)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 106,215 | | | |
(L)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (87,177) | | | |
(M)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Retained earnings
|
| | | | (6,963) | | | | | | 290,320 | | | | | | (3,858) | | | |
(C)
|
| | | | 124,430 | | | | | | (65,181) | | | | | | (O) | | | | | | 56,860 | | |
| | | | | — | | | | | | — | | | | | | (20,000) | | | |
(D)
|
| | | | — | | | | | | (2,389) | | | | | | (P) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (35,817) | | | |
(G)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 6,963 | | | |
(H)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (106,215) | | | |
(L)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Common Stock in treasury (9,094,876 shares of Class A Common Stock)
|
| | | | — | | | | | | — | | | | | | (93,222) | | | |
(N)
|
| | | | (93,222) | | | | | | — | | | | | | | | | | | | (93,222) | | |
Shareholders’ equity
|
| | | | 5,000 | | | | | | 1,937,604 | | | | | | 709,563 | | | | | | | | | 2,652,167 | | | | | | (67,570) | | | | | | | | | | | | 2,584,597 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 1,107,513 | | | | | $ | 8,400,027 | | | | | $ | (541,023) | | | | | | | | $ | 8,966,517 | | | | | $ | (738,166) | | | | | | | | | | | $ | 8,228,351 | | |
|
| | |
Nine Months Ended
September 30, 2020 |
| | | | | | | | | | |
Nine Months
Ended September 30, 2020 |
| | | | | | | | | | | | | |
Nine Months
Ended September 30, 2020 |
| |||||||||||||||
| | |
Churchill
(Historical) |
| |
MultiPlan Parent
(Historical) |
| |
Transactions
Pro Forma Adjustments |
| | | | |
Pro Forma
Combined |
| |
Refinancing
Pro Forma Adjustments |
| | | | | | | |
Pro Forma
Combined As Adjusted |
| ||||||||||||||||||
Revenues
|
| | | $ | — | | | | | $ | 682,419 | | | | | $ | — | | | | | | | | $ | 682,419 | | | | | $ | — | | | | | | | | | | | $ | 682,419 | | |
Costs of services (exclusive of depreciation
and amortization of intangible assets shown below) |
| | | | — | | | | | | 244,445 | | | | | | — | | | | | | | | | 244,445 | | | | | | — | | | | | | | | | | | | 244,445 | | |
General and administrative expenses
|
| | | | 10,677 | | | | | | 241,931 | | | | | | (8,142) | | | |
(AA)
|
| | | | 240,822 | | | | | | — | | | | | | | | | | | | 240,822 | | |
| | | | | — | | | | | | — | | | | | | (3,644) | | | |
(BB)
|
| | | | — | | | | | | | | | | | | | | | | | | — | | |
Depreciation
|
| | | | — | | | | | | 44,903 | | | | | | — | | | | | | | | | 44,903 | | | | | | — | | | | | | | | | | | | 44,903 | | |
Amortization of intangible assets
|
| | | | — | | | | | | 250,540 | | | | | | — | | | | | | | | | 250,540 | | | | | | — | | | | | | | | | | | | 250,540 | | |
Total expenses
|
| | | | 10,677 | | | | | | 781,819 | | | | | | (11,786) | | | | | | | | | 780,710 | | | | | | — | | | | | | | | | | | | 780,710 | | |
Operating (loss) income
|
| | | | (10,677) | | | | | | (99,400) | | | | | | 11,786 | | | | | | | | | (98,291) | | | | | | — | | | | | | | | | | | | (98,291) | | |
Interest earned on cash equivalents held in
Trust Account |
| | | | (4,376) | | | | | | — | | | | | | 4,376 | | | |
(AA)
|
| | | | — | | | | | | — | | | | | | | | | | | | — | | |
Interest expense
|
| | | | — | | | | | | 259,290 | | | | | | (78,870) | | | |
(CC)
|
| | | | 268,512 | | | | | | (84,976) | | | | | | (HH) | | | | | | 231,403 | | |
| | | | | — | | | | | | — | | | | | | 58,500 | | | |
(DD)
|
| | | | — | | | | | | (10,378) | | | | | | (II) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 29,592 | | | |
(EE)
|
| | | | — | | | | | | 656 | | | | | | (JJ) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | (672) | | | | | | (KK) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 675 | | | | | | (LL) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 56,063 | | | | | | (MM) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 1,523 | | | | | | (NN) | | | | | | — | | |
Interest income
|
| | | | — | | | | | | (229) | | | | | | — | | | | | | | | | (229) | | | | | | — | | | | | | | | | | | | (229) | | |
Net Income (loss) before income taxes
|
| | | | (6,301) | | | | | | (358,461) | | | | | | (1,812) | | | | | | | | | (366,574) | | | | | | 37,109 | | | | | | | | | | | | (329,465) | | |
Provision (benefit) for income taxes
|
| | | | 660 | | | | | | (11,219) | | | | | | (422) | | | |
(FF)
|
| | | | (10,981) | | | | | | 8,646 | | | | | | (FF) | | | | | | (2,335) | | |
Net income (loss)
|
| | | | (6,961) | | | | | | (347,242) | | | | | | (1,390) | | | | | | | | | (355,593) | | | | | | 28,463 | | | | | | | | | | | | (327,130) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 30,815.111 | | | | | | 10 | | | | | | 645,741,024 | | | |
(GG)
|
| | | | 676,556,145 | | | | | | — | | | | | | | | | | | | 676,556,145 | | |
Net loss per share – basic and diluted
|
| | | $ | (0.31) | | | | | $ | (34,724,200.00) | | | | | | | | | | | | | | $ | (0.53) | | | | | $ | — | | | | | | | | | | | $ | (0.48) | | |
| | |
For the Period
from October 30, 2019 (inception) through December 31, 2019 |
| |
Twelve Months
Ended December 31, 2019 |
| | | | | | | | | | | | | |
Twelve Months
Ended December 31, 2019 |
| | | | | | | | | | | | | |
Twelve Months
Ended December 31, 2019 |
| ||||||||||||
| | |
Churchill
(Historical) |
| |
MultiPlan Parent
(Historical) |
| |
Transactions
Pro Forma Adjustments |
| | | | | | | |
Pro Forma
Combined |
| |
Refinancing Pro
Forma Adjustments |
| | | | | | | |
Pro Forma
Combined As Adjusted |
| ||||||||||||||||||
Revenues
|
| | | $ | — | | | | | $ | 982,901 | | | | | $ | — | | | | | | | | | | | $ | 982,901 | | | | | $ | — | | | | | | | | | | | $ | 982,901 | | |
Costs of services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | — | | | | | | 149,607 | | | | | | — | | | | | | | | | | | | 149,607 | | | | | | — | | | | | | | | | | | | 149,607 | | |
General and administrative expenses
|
| | | | 1 | | | | | | 75,225 | | | | | | (1) | | | | | | (AA) | | | | | | 75,225 | | | | | | — | | | | | | | | | | | | 75,225 | | |
Depreciation
|
| | | | — | | | | | | 55,807 | | | | | | — | | | | | | | | | | | | 55,807 | | | | | | — | | | | | | | | | | | | 55,807 | | |
Amortization of intangible assets
|
| | | | — | | | | | | 334,053 | | | | | | — | | | | | | | | | | | | 334,053 | | | | | | — | | | | | | | | | | | | 334,053 | | |
Total expenses
|
| | | | 1 | | | | | | 614,692 | | | | | | (1) | | | | | | | | | | | | 614,692 | | | | | | — | | | | | | | | | | | | 614,692 | | |
Operating income
(loss) |
| | | | (1) | | | | | | 368,209 | | | | | | 1 | | | | | | | | | | | | 368,209 | | | | | | — | | | | | | | | | | | | 368,209 | | |
Interest expense
|
| | | | — | | | | | | 376,346 | | | | | | (112,994) | | | | | | (CC) | | | | | | 380,808 | | | | | | (113,149) | | | | | | (HH) | | | | | | 331,707 | | |
| | | | | — | | | | | | — | | | | | | 78,000 | | | | | | (DD) | | | | | | — | | | | | | (13,838) | | | | | | (II) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 39,456 | | | | | | (EE) | | | | | | — | | | | | | 876 | | | | | | (JJ) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | (672) | | | | | | (KK) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 900 | | | | | | (LL) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 74,750 | | | | | | (MM) | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 2,032 | | | | | | (NN) | | | | | | — | | |
Interest income
|
| | | | — | | | | | | (196) | | | | | | — | | | | | | | | | | | | (196) | | | | | | — | | | | | | | | | | | | (196) | | |
Gain on repurchase and
cancellation of Notes |
| | | | — | | | | | | (18,450) | | | | | | 18,450 | | | | | | (CC) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Net Income (loss) before income
taxes |
| | | | (1) | | | | | | 10,509 | | | | | | (22,911) | | | | | | | | | | | | (12,403) | | | | | | 49,101 | | | | | | | | | | | | 36,698 | | |
Provision (benefit) for income taxes
|
| | | | — | | | | | | 799 | | | | | | (5,338) | | | | | | (FF) | | | | | | (4,539) | | | | | | 11,441 | | | | | | (FF) | | | | | | 6,902 | | |
Net income (loss)
|
| | | | (1) | | | | | | 9,710 | | | | | | (17,573) | | | | | | | | | | | | (7,864) | | | | | | 37,660 | | | | | | | | | | | | 29,796 | | |
Weighted average shares
outstanding — basic and diluted |
| | | | 25,000,000 | | | | | | 10 | | | | | | 651,556,135 | | | | | | (GG) | | | | | | 676,556,145 | | | | | | — | | | | | | | | | | | | 676,556,145 | | |
Net income (loss) per share — basic and diluted
|
| | | $ | (0.00) | | | | | $ | 971,000.00 | | | | | | | | | | | | | | | | | $ | (0.01) | | | | | | | | | | | | | | | | | $ | 0.04 | | |
| | |
Nine Months
Ended September 30, 2020 |
| |
Year Ended
December 31, 2019 |
| ||||||
Share issuance to the MultiPlan Parent Owners
|
| | | | 415,700,000 | | | | | | 415,700,000 | | |
Share issuance to purchasers of the Common PIPE Shares
|
| | | | 132,050,000 | | | | | | 132,050,000 | | |
Shares previously issued to Churchill’s Sponsor .
|
| | | | 27,500,000 | | | | | | 27,500,000 | | |
Shares previously issued to Churchill public shareholders
|
| | | | 110,000,000 | | | | | | 110,000,000 | | |
Shares redeemed
|
| | | | (8,693,855) | | | | | | (8,693,855) | | |
Shares issued and redeemed as part of the Transactions
|
| | | | 676,556,145 | | | | | | 676,556,145 | | |
| | |
For the Nine Months
Ended September 30, |
| |
For the Year Ended
December 31, |
| |||||||||||||||||||||||||||||
($ in billions)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| ||||||||||||||||||||
Medical charges processed(1)
|
| | | $ | 76.6 | | | | | | $ | 79.6 | | | | | | $ | 106.3 | | | | | | $ | 101.6 | | | | | | $ | 97.4 | | | |
Medical cost potential savings(2)
|
| | | | 18.2 | % | | | | | | 17.5 | % | | | | | | 17.8 | % | | | | | | 18.3 | % | | | | | | 18.3 | % | | |
| | |
For the Three Months
Ended September 30, |
| |
For the Nine Months
Ended September 30, |
| |
For the Year Ended
December 31, |
| |||||||||||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | ||||||||||||
Net (loss) income
|
| | | $ | (288,402) | | | | | $ | 5,362 | | | | | $ | (347,242) | | | | | $ | (2,134) | | | | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | 648,132 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense(a)
|
| | | | 82,275 | | | | | | 93,246 | | | | | | 259,290 | | | | | | 286,438 | | | | | | 376,346 | | | | | | 383,261 | | | | | | 281,972 | | |
Interest income
|
| | | | (81) | | | | | | (54) | | | | | | (229) | | | | | | (133) | | | | | | (196) | | | | | | (51) | | | | | | (9) | | |
Income tax (benefit) provision
|
| | | | (1,080) | | | | | | 1,005 | | | | | | (11,219) | | | | | | (191) | | | | | | 799 | | | | | | 8,108 | | | | | | (586,512) | | |
Depreciation
|
| | | | 15,262 | | | | | | 14,153 | | | | | | 44,903 | | | | | | 41,723 | | | | | | 55,807 | | | | | | 52,268 | | | | | | 53,002 | | |
Amortization of intangible assets
|
| | | | 83,513 | | | | | | 83,513 | | | | | | 250,540 | | | | | | 250,540 | | | | | | 334,053 | | | | | | 334,053 | | | | | | 334,053 | | |
Non-income taxes(b)
|
| | | | 415 | | | | | | 479 | | | | | | 1,335 | | | | | | 1,409 | | | | | | 1,944 | | | | | | 1,641 | | | | | | 1,315 | | |
EBITDA
|
| | | $ | (108,098) | | | | | $ | 197,704 | | | | | $ | 197,378 | | | | | $ | 577,652 | | | | | $ | 778,463 | | | | | $ | 815,503 | | | | | $ | 731,953 | | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other (income) expense(c)
|
| | | | 1,012 | | | | | | 626 | | | | | | 1,308 | | | | | | 1,448 | | | | | | 1,947 | | | | | | 4,617 | | | | | | 5,857 | | |
Transaction related expenses(d)
|
| | | | 2,464 | | | | | | 3,245 | | | | | | 5,162 | | | | | | 3,267 | | | | | | 3,270 | | | | | | 49 | | | | | | 3,435 | | |
Loss on extinguishments and modification of debt(e)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,053 | | |
Loss on equity investments(f)
|
| | | | 7,784 | | | | | | — | | | | | | 7,784 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Gain on repurchase and cancellation of notes(g)
|
| | | | — | | | | | | (18,450) | | | | | | — | | | | | | (18,450) | | | | | | (18,450) | | | | | | — | | | | | | — | | |
Stock-based compensation(h)
|
| | | | 262,356 | | | | | | 4,321 | | | | | | 299,629 | | | | | | (308) | | | | | | (14,880) | | | | | | 4,717 | | | | | | 50,788 | | |
Adjusted EBITDA
|
| | | $ | 165,518 | | | | | $ | 187,446 | | | | | $ | 511,261 | | | | | $ | 563,609 | | | | | $ | 750,350 | | | | | $ | 824,886 | | | | | $ | 812,086 | | |
| | |
For the Three Months Ended September 30,
|
| |
For the Nine Months Ended September 30,
|
| ||||||||||||||||||||||||||||||||||||||||||
($ in thousands)
|
| |
2020
|
| |
2019
|
| |
Change $
|
| |
Change %
|
| |
2020
|
| |
2019
|
| |
Change $
|
| |
Change %
|
| ||||||||||||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Network Services
|
| | | $ | 65,323 | | | | | $ | 77,038 | | | | | $ | (11,715) | | | | | | (15.2)% | | | | | $ | 200,448 | | | | | $ | 239,799 | | | | | $ | (39,351) | | | | | | (16.4)% | | |
Analytics-Based Solutions
|
| | | | 133,119 | | | | | | 141,307 | | | | | | (8,188) | | | | | | (5.8)% | | | | | | 407,216 | | | | | | 416,105 | | | | | | (8,889) | | | | | | (2.1)% | | |
Payment Integrity Solutions
|
| | | | 25,075 | | | | | | 27,475 | | | | | | (2,400) | | | | | | (8.7)% | | | | | | 74,755 | | | | | | 80,593 | | | | | | (5,838) | | | | | | (7.2)% | | |
Total Revenues
|
| | | | 223,517 | | | | | | 245,820 | | | | | | (22,303) | | | | | | (9.1)% | | | | | | 682,419 | | | | | | 736,497 | | | | | | (54,078) | | | | | | (7.3)% | | |
Costs of Services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Personnel expenses excluding stock-based compensation
|
| | | | 31,960 | | | | | | 31,152 | | | | | | 808 | | | | | | 2.6% | | | | | | 95,745 | | | | | | 92,307 | | | | | | 3,438 | | | | | | 3.7% | | |
Stock-based compensation
|
| | | | 108,777 | | | | | | 1,593 | | | | | | 107,184 | | | | | | NM | | | | | | 126,723 | | | | | | (1,324) | | | | | | 128,047 | | | | | | NM | | |
Personnel expenses including stock-based compensation
|
| | | | 140,737 | | | | | | 32,745 | | | | | | 107,992 | | | | | | 329.8% | | | | | | 222,468 | | | | | | 90,983 | | | | | | 131,485 | | | | | | 144.5% | | |
Access and bill review fees
|
| | | | 3,581 | | | | | | 3,955 | | | | | | (374) | | | | | | (9.5)% | | | | | | 10,888 | | | | | | 12,316 | | | | | | (1,428) | | | | | | (11.6)% | | |
Other
|
| | | | 3,548 | | | | | | 4,359 | | | | | | (811) | | | | | | (18.6)% | | | | | | 11,089 | | | | | | 12,892 | | | | | | (1,803) | | | | | | (14.0)% | | |
Total Costs of Services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | 147,866 | | | | | | 41,059 | | | | | | 106,807 | | | | | | 260.1% | | | | | | 244,445 | | | | | | 116,191 | | | | | | 128,254 | | | | | | 110.4% | | |
Gross Profit
|
| | | $ | 75,651 | | | | | $ | 204,761 | | | | | $ | (129,110) | | | | | | (63.1)% | | | | | $ | 437,974 | | | | | $ | 620,306 | | | | | $ | (182,332) | | | | | | (29.4)% | | |
Gross Profit %
|
| | | | 33.8% | | | | | | 83.3% | | | | | | | | | | | | | | | | | | 64.2% | | | | | | 84.2% | | | | | | | | | | | | | | |
General and administrative expenses
|
| | | | 184,164 | | | | | | 25,986 | | | | | | 158,178 | | | | | | 608.7% | | | | | | 241,931 | | | | | | 62,513 | | | | | | 179,418 | | | | | | 287.0% | | |
Depreciation expense
|
| | | | 15,262 | | | | | | 14,153 | | | | | | 1,109 | | | | | | 7.8% | | | | | | 44,903 | | | | | | 41,723 | | | | | | 3,180 | | | | | | 7.6% | | |
Amortization of intangible assets
|
| | | | 83,513 | | | | | | 83,513 | | | | | | — | | | | | | 0.0% | | | | | | 250,540 | | | | | | 250,540 | | | | | | — | | | | | | 0.0% | | |
Operating income
|
| | | | (207,288) | | | | | | 81,109 | | | | | | (288,397) | | | | | | (355.6)% | | | | | | (99,400) | | | | | | 265,530 | | | | | | (364,930) | | | | | | (137.4)% | | |
Interest expense
|
| | | | 82,275 | | | | | | 93,246 | | | | | | (10,971) | | | | | | (11.8)% | | | | | | 259,290 | | | | | | 286,438 | | | | | | (27,148) | | | | | | (9.5)% | | |
Interest income
|
| | | | (81) | | | | | | (54) | | | | | | (27) | | | | | | 50.0% | | | | | | (229) | | | | | | (133) | | | | | | (96) | | | | | | 72.2% | | |
Gain on repurchase of Notes
|
| | | | — | | | | | | (18,450) | | | | | | 18,450 | | | | | | (100.0)% | | | | | | — | | | | | | (18,450) | | | | | | 18,450 | | | | | | (100.0)% | | |
Net (loss) income before income taxes
|
| | | | (289,482) | | | | | | 6,367 | | | | | | (295,849) | | | | | | NM | | | | | | (358,461) | | | | | | (2,325) | | | | | | (356,136) | | | | | | NM | | |
Provision (benefit) for income taxes
|
| | | | (1,080) | | | | | | 1,005 | | | | | | (2,085) | | | | | | (207.5)% | | | | | | (11,219) | | | | | | (191) | | | | | | (11,028) | | | | | | NM | | |
Net (loss) income
|
| | | $ | (288,402) | | | | | $ | 5,362 | | | | | $ | (293,764) | | | | | | NM | | | | | $ | (347,242) | | | | | $ | (2,134) | | | | | $ | (345,108) | | | | | | NM | | |
| | |
Three Months Ended
|
| |
Nine Months Ended
|
| ||||||||||||||||||
(in thousands)
|
| |
September 30,
2020 |
| |
September 30,
2019 |
| |
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||||||
Costs of services (exclusive of depreciation and amortization of intangible assets)
|
| | | $ | 147,866 | | | | | $ | 41,059 | | | | | $ | 244,445 | | | | | $ | 116,191 | | |
Less: stock-based compensation
|
| | | | 108,777 | | | | | | 1,593 | | | | | | 126,723 | | | | | | (1,324) | | |
Costs of services excluding stock-based compensation
|
| | | $ | 39,089 | | | | | $ | 39,466 | | | | | $ | 117,722 | | | | | $ | 117,515 | | |
| | |
Three Months Ended
|
| |
Nine Months Ended
|
| ||||||||||||||||||
(in thousands)
|
| |
September 30,
2020 |
| |
September 30,
2019 |
| |
September 30,
2020 |
| |
September 30,
2019 |
| ||||||||||||
General and administrative expenses
|
| | | $ | 184,164 | | | | | $ | 25,986 | | | | | $ | 241,931 | | | | | $ | 62,513 | | |
Less: stock-based compensation
|
| | | | 153,579 | | | | | | 2,728 | | | | | | 172,906 | | | | | | 1,016 | | |
Less: transaction costs
|
| | | | 2,464 | | | | | | 3,245 | | | | | | 5,162 | | | | | | 3,267 | | |
Less: loss on equity investments
|
| | | | 7,784 | | | | | | — | | | | | | 7,784 | | | | | | — | | |
General and administrative expenses excluding stock-based compensation, transactions costs and loss on equity investments
|
| | | $ | 20,337 | | | | | $ | 20,013 | | | | | $ | 56,079 | | | | | $ | 58,230 | | |
| | |
For the Year Ended
December 31, |
| |
Change
|
| ||||||||||||||||||
($ in thousands)
|
| |
2019
|
| |
2018
|
| |
$
|
| |
%
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Network Services
|
| | | $ | 314,510 | | | | | $ | 363,510 | | | | | $ | (49,000) | | | | | | (13.5)% | | |
Analytics-Based Solutions
|
| | | | 561,525 | | | | | | 584,998 | | | | | | (23,473) | | | | | | (4.0)% | | |
Payment Integrity Solutions
|
| | | | 106,866 | | | | | | 92,375 | | | | | | 14,491 | | | | | | 15.7% | | |
Total Revenues
|
| | | | 982,901 | | | | | | 1,040,883 | | | | | | (57,982) | | | | | | (5.6)% | | |
Costs of Services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Personnel expenses
|
| | | | 115,827 | | | | | | 115,920 | | | | | | (93) | | | | | | (0.1)% | | |
Access and bill review fees
|
| | | | 15,996 | | | | | | 16,735 | | | | | | (739) | | | | | | (4.4)% | | |
Other
|
| | | | 17,784 | | | | | | 16,808 | | | | | | 976 | | | | | | 5.8% | | |
Total Costs of Services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | 149,607 | | | | | | 149,463 | | | | | | 144 | | | | | | 0.1% | | |
General and administrative expenses
|
| | | | 75,225 | | | | | | 77,558 | | | | | | (2,333) | | | | | | (3.0)% | | |
Depreciation expense
|
| | | | 55,807 | | | | | | 52,268 | | | | | | 3,539 | | | | | | 6.8% | | |
Amortization of intangible assets
|
| | | | 334,053 | | | | | | 334,053 | | | | | | — | | | | | | 0.0% | | |
Operating Income
|
| | | | 368,209 | | | | | | 427,541 | | | | | | (59,332) | | | | | | (13.9)% | | |
Interest expense
|
| | | | 376,346 | | | | | | 383,261 | | | | | | (6,915) | | | | | | (1.8)% | | |
Interest income
|
| | | | (196) | | | | | | (51) | | | | | | (145) | | | | | | N/M | | |
Gain on repurchase and cancellation of notes
|
| | | | (18,450) | | | | | | — | | | | | | (18,450) | | | | | | N/M | | |
Net income before income taxes
|
| | | | 10,509 | | | | | | 44,331 | | | | | | (33,822) | | | | | | (76.3)% | | |
Provision for income taxes
|
| | | | 799 | | | | | | 8,108 | | | | | | (7,309) | | | | | | (90.1)% | | |
Net income
|
| | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | (26,513) | | | | | | (73.2)% | | |
| | |
For the Year Ended
December 31, |
| |
Change
|
| ||||||||||||||||||
($ in thousands)
|
| |
2018
|
| |
2017
|
| |
$
|
| |
%
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Network Services
|
| | | $ | 363,510 | | | | | $ | 415,759 | | | | | $ | (52,249) | | | | | | (12.6)% | | |
Analytics-Based Solutions
|
| | | | 584,998 | | | | | | 584,925 | | | | | | 73 | | | | | | 0.0% | | |
Payment Integrity Solutions
|
| | | | 92,375 | | | | | | 66,582 | | | | | | 25,793 | | | | | | 38.7% | | |
Total Revenues
|
| | | | 1,040,883 | | | | | | 1,067,266 | | | | | | (26,383) | | | | | | (2.5)% | | |
Costs of Services (exclusive of depreciation and amortization
of intangible assets shown below) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Personnel expenses
|
| | | | 115,920 | | | | | | 153,046 | | | | | | (37,126) | | | | | | (24.3)% | | |
Access and bill review fees
|
| | | | 16,735 | | | | | | 20,921 | | | | | | (4,186) | | | | | | (20.0)% | | |
Other
|
| | | | 16,808 | | | | | | 19,688 | | | | | | (2,880) | | | | | | (14.6)% | | |
Total Costs of Services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | 149,463 | | | | | | 193,655 | | | | | | (44,192) | | | | | | (22.8)% | | |
General and administrative expenses
|
| | | | 77,558 | | | | | | 122,920 | | | | | | (45,362) | | | | | | (36.9)% | | |
Depreciation expense
|
| | | | 52,268 | | | | | | 53,002 | | | | | | (734) | | | | | | (1.4)% | | |
Amortization of intangible assets
|
| | | | 334,053 | | | | | | 334,053 | | | | | | — | | | | | | 0.0% | | |
Operating Income
|
| | | | 427,541 | | | | | | 363,636 | | | | | | 63,905 | | | | | | 17.6% | | |
Interest expense
|
| | | | 383,261 | | | | | | 281,972 | | | | | | 101,289 | | | | | | 35.9% | | |
Interest income
|
| | | | (51) | | | | | | (9) | | | | | | (42) | | | | | | N/M | | |
Loss on extinguishments and modification of debt
|
| | | | — | | | | | | 20,053 | | | | | | (20,053) | | | | | | N/M | | |
Net income before income taxes
|
| | | | 44,331 | | | | | | 61,620 | | | | | | (17,289) | | | | | | (28.1)% | | |
Provision for income taxes
|
| | | | 8,108 | | | | | | (586,512) | | | | | | 594,620 | | | | | | 101.4% | | |
Net income
|
| | | $ | 36,223 | | | | | $ | 648,132 | | | | | $ | (611,909) | | | | | | (94.4)% | | |
| | |
Three Months Ended
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
September 30,
2020 |
| |
June 30,
2020 |
| |
March 31,
2020 |
| |
December 31,
2019 |
| |
September 30,
2019 |
| |
June 30,
2019 |
| |
March 31,
2019 |
| |
December 31,
2018 |
| |
September 30,
2018 |
| |
June 30,
2018 |
| |
March 31,
2018 |
| |||||||||||||||||||||||||||||||||
Revenues
|
| | | $ | 223,517 | | | | | $ | 206,880 | | | | | $ | 252,022 | | | | | $ | 246,404 | | | | | $ | 245,820 | | | | | $ | 245,653 | | | | | $ | 245,024 | | | | | $ | 240,172 | | | | | $ | 258,444 | | | | | $ | 279,416 | | | | | $ | 262,851 | | |
Costs of services (exclusive of depreciation and amortization of intangible assets shown below)(1)
|
| | | | 147,866 | | | | | | 51,894 | | | | | | 44,685 | | | | | | 33,416 | | | | | | 41,059 | | | | | | 34,455 | | | | | | 40,677 | | | | | | 16,786 | | | | | | 40,138 | | | | | | 48,576 | | | | | | 43,962 | | |
General and administrative expenses(1)
|
| | | | 184,164 | | | | | | 36,066 | | | | | | 21,701 | | | | | | 12,712 | | | | | | 25,986 | | | | | | 14,337 | | | | | | 22,190 | | | | | | (2,312) | | | | | | 22,565 | | | | | | 31,899 | | | | | | 25,406 | | |
Depreciation
|
| | | | 15,262 | | | | | | 15,135 | | | | | | 14,506 | | | | | | 14,084 | | | | | | 14,153 | | | | | | 14,026 | | | | | | 13,544 | | | | | | 13,087 | | | | | | 13,005 | | | | | | 13,252 | | | | | | 12,924 | | |
Amortization of intangible assets
|
| | | | 83,513 | | | | | | 83,514 | | | | | | 83,513 | | | | | | 83,513 | | | | | | 83,513 | | | | | | 83,514 | | | | | | 83,513 | | | | | | 83,513 | | | | | | 83,513 | | | | | | 83,514 | | | | | | 83,513 | | |
Total expenses
|
| | | | 430,805 | | | | | | 186,609 | | | | | | 164,405 | | | | | | 143,725 | | | | | | 164,711 | | | | | | 146,332 | | | | | | 159,924 | | | | | | 111,074 | | | | | | 159,221 | | | | | | 177,241 | | | | | | 165,805 | | |
Operating (loss) income
|
| | | | (207,288) | | | | | | 20,271 | | | | | | 87,617 | | | | | | 102,679 | | | | | | 81,109 | | | | | | 99,321 | | | | | | 85,100 | | | | | | 129,098 | | | | | | 99,223 | | | | | | 102,175 | | | | | | 97,046 | | |
Interest expense
|
| | | | 82,275 | | | | | | 86,050 | | | | | | 90,965 | | | | | | 89,908 | | | | | | 93,246 | | | | | | 95,473 | | | | | | 97,719 | | | | | | 95,762 | | | | | | 96,970 | | | | | | 96,028 | | | | | | 94,501 | | |
Interest income
|
| | | | (81) | | | | | | (77) | | | | | | (71) | | | | | | (63) | | | | | | (54) | | | | | | (46) | | | | | | (33) | | | | | | (28) | | | | | | (15) | | | | | | (7) | | | | | | — | | |
Gain on repurchase and retirement of Notes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (18,450) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net (loss) income before income taxes
|
| | | | (289,482) | | | | | | (65,702) | | | | | | (3,277) | | | | | | 12,834 | | | | | | 6,367 | | | | | | 3,894 | | | | | | (12,586) | | | | | | 33,364 | | | | | | 2,268 | | | | | | 6,154 | | | | | | 2,545 | | |
(Benefit) provision for income taxes
|
| | | | (1,080) | | | | | | (9,456) | | | | | | (683) | | | | | | 990 | | | | | | 1,005 | | | | | | 3,026 | | | | | | (4,222) | | | | | | 10,742 | | | | | | (6,046) | | | | | | 2,569 | | | | | | 843 | | |
(Loss) income from continuing operations
|
| | | | (288,402) | | | | | | (56,246) | | | | | | (2,594) | | | | | | 11,844 | | | | | | 5,362 | | | | | | 868 | | | | | | (8,364) | | | | | | 22,622 | | | | | | 8,314 | | | | | | 3,585 | | | | | | 1,702 | | |
Net (loss) income
|
| | | | (288,402) | | | | | | (56,246) | | | | | | (2,594) | | | | | | 11,844 | | | | | | 5,362 | | | | | | 868 | | | | | | (8,364) | | | | | | 22,622 | | | | | | 8,314 | | | | | | 3,585 | | | | | | 1,702 | | |
Weighted average shares outstanding – Basic and Diluted:
|
| | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | |
Net (loss) income per share – Basic and Diluted:
|
| | | $ | (28,840,200) | | | | | $ | (5,624,600) | | | | | $ | (259,400) | | | | | $ | 1,184,400 | | | | | $ | 536,200 | | | | | $ | 86,800 | | | | | $ | (836,400) | | | | | $ | 2,262,200 | | | | | $ | 831,400 | | | | | $ | 358,500 | | | | | $ | 170,200 | | |
Comprehensive (loss) income
|
| | | $ | (288,402) | | | | | $ | (56,246) | | | | | $ | (2,594) | | | | | $ | 11,844 | | | | | $ | 5,362 | | | | | $ | 868 | | | | | $ | (8,364) | | | | | $ | 22,622 | | | | | $ | 8,314 | | | | | $ | 3,585 | | | | | $ | 1,702 | | |
| | |
Three Months Ended
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
September 30,
2020 |
| |
June 30,
2020 |
| |
March 31,
2020 |
| |
December 31,
2019 |
| |
September 30,
2019 |
| |
June 30,
2019 |
| |
March 31,
2019 |
| |
December 31,
2018 |
| |
September 30,
2018 |
| |
June 30,
2018 |
| |
March 31,
2018 |
| |||||||||||||||||||||||||||||||||
Costs of services
|
| | | $ | 108,777 | | | | | $ | 12,494 | | | | | $ | 5,452 | | | | | $ | (6,579) | | | | | $ | 1,593 | | | | | $ | (4,714) | | | | | $ | 1,796 | | | | | $ | (12,102) | | | | | $ | 2,784 | | | | | $ | 7,140 | | | | | $ | 2,420 | | |
General and administrative expenses
|
| | | | 153,579 | | | | | | 15,417 | | | | | | 3,909 | | | | | | (7,992) | | | | | | 2,728 | | | | | | (4,952) | | | | | | 3,240 | | | | | | (16,487) | | | | | | 5,067 | | | | | | 11,632 | | | | | | 4,263 | | |
| | | | $ | 262,356 | | | | | $ | 27,911 | | | | | $ | 9,361 | | | | | $ | (14,571) | | | | | $ | 4,321 | | | | | $ | (9,666) | | | | | $ | 5,036 | | | | | $ | (28,589) | | | | | $ | 7,851 | | | | | $ | 18,772 | | | | | $ | 6,683 | | |
|
(in thousands)
|
| |
Three Months Ended
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Sepember 30,
2020 |
| |
June 30,
2020 |
| |
March 31,
2020 |
| |
December 31,
2019 |
| |
September 30,
2019 |
| |
June 30,
2019 |
| |
March 31,
2019 |
| |
December 31,
2018 |
| |
September 30,
2018 |
| |
June 30,
2018 |
| |
March 31,
2018 |
| |||||||||||||||||||||||||||||||||
Costs of services (exclusive of depreciation and amortization of intangible assets)
|
| | | $ | 147,866 | | | | | $ | 51,894 | | | | | $ | 44,685 | | | | | $ | 33,416 | | | | | $ | 41,059 | | | | | $ | 34,455 | | | | | $ | 40,677 | | | | | $ | 16,786 | | | | | $ | 40,138 | | | | | $ | 48,576 | | | | | $ | 43,962 | | |
Less: stock-based compensation
|
| | | | 108,777 | | | | | | 12,494 | | | | | | 5,452 | | | | | | (6,579) | | | | | | 1,593 | | | | | | (4,714) | | | | | | 1,796 | | | | | | (12,102) | | | | | | 2,784 | | | | | | 7,140 | | | | | | 2,420 | | |
Costs of services excluding stock-based compensation
|
| | | $ | 39,089 | | | | | $ | 39,400 | | | | | $ | 39,233 | | | | | $ | 39,995 | | | | | $ | 39,466 | | | | | $ | 39,169 | | | | | $ | 38,881 | | | | | $ | 28,888 | | | | | $ | 37,354 | | | | | $ | 41,436 | | | | | $ | 41,542 | | |
General and administrative expenses
|
| | | $ | 184,164 | | | | | $ | 36,066 | | | | | $ | 21,701 | | | | | $ | 12,712 | | | | | $ | 25,986 | | | | | $ | 14,337 | | | | | $ | 22,190 | | | | | $ | (2,312) | | | | | $ | 22,565 | | | | | $ | 31,899 | | | | | $ | 25,406 | | |
Less: stock-based compensation
|
| | | | 153,539 | | | | | | 15,417 | | | | | | 3,909 | | | | | | (7,992) | | | | | | 2,728 | | | | | | (4,952) | | | | | | 3,240 | | | | | | (16,487) | | | | | | 5,067 | | | | | | 11,632 | | | | | | 4,263 | | |
General and administrative expenses
|
| | | $ | 30,625 | | | | | $ | 20,649 | | | | | $ | 17,792 | | | | | $ | 20,704 | | | | | $ | 23,258 | | | | | $ | 19,289 | | | | | $ | 18,950 | | | | | $ | 14,175 | | | | | $ | 17,498 | | | | | $ | 20,267 | | | | | $ | 21,143 | | |
| | |
Three Months Ended
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
September 30,
2020 |
| |
June 30,
2020 |
| |
March 31,
2020 |
| |
December 31,
2019 |
| |
September 30,
2019 |
| |
June 30,
2019 |
| |
March 31,
2019 |
| |
December 31,
2018 |
| |
September 30,
2018 |
| |
June 30,
2018 |
| |
March 31,
2018 |
| |||||||||||||||||||||||||||||||||
Revenues
|
| | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | |
Costs of services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | 66% | | | | | | 25% | | | | | | 18% | | | | | | 14% | | | | | | 17% | | | | | | 14% | | | | | | 17% | | | | | | 7% | | | | | | 16% | | | | | | 17% | | | | | | 17% | | |
General and administrative
expenses |
| | | | 82% | | | | | | 17% | | | | | | 9% | | | | | | 5% | | | | | | 11% | | | | | | 6% | | | | | | 9% | | | | | | (1)% | | | | | | 9% | | | | | | 11% | | | | | | 10% | | |
Depreciation
|
| | | | 7% | | | | | | 7% | | | | | | 6% | | | | | | 6% | | | | | | 6% | | | | | | 6% | | | | | | 6% | | | | | | 5% | | | | | | 5% | | | | | | 5% | | | | | | 5% | | |
Amortization of intangible assets
|
| | | | 37% | | | | | | 40% | | | | | | 33% | | | | | | 34% | | | | | | 34% | | | | | | 34% | | | | | | 34% | | | | | | 35% | | | | | | 32% | | | | | | 30% | | | | | | 32% | | |
Total expenses
|
| | | | 193% | | | | | | 90% | | | | | | 65% | | | | | | 58% | | | | | | 67% | | | | | | 60% | | | | | | 65% | | | | | | 46% | | | | | | 62% | | | | | | 63% | | | | | | 63% | | |
Operating income
|
| | | | (93)% | | | | | | 10% | | | | | | 35% | | | | | | 42% | | | | | | 33% | | | | | | 40% | | | | | | 35% | | | | | | 54% | | | | | | 38% | | | | | | 37% | | | | | | 37% | | |
Interest expense
|
| | | | 37% | | | | | | 42% | | | | | | 36% | | | | | | 36% | | | | | | 38% | | | | | | 39% | | | | | | 40% | | | | | | 40% | | | | | | 38% | | | | | | 34% | | | | | | 36% | | |
Interest income
|
| | | | 0% | | | | | | (0)% | | | | | | (0)% | | | | | | (0)% | | | | | | (0)% | | | | | | (0)% | | | | | | (0)% | | | | | | (0)% | | | | | | (0)% | | | | | | (0)% | | | | | | 0% | | |
Gain on repurchase and retirement of Notes
|
| | | | 0% | | | | | | 0% | | | | | | 0% | | | | | | 0% | | | | | | (8)% | | | | | | 0% | | | | | | 0% | | | | | | 0% | | | | | | 0% | | | | | | 0% | | | | | | 0% | | |
Net (loss) income before income taxes
|
| | | | (130)% | | | | | | (32)% | | | | | | (1)% | | | | | | 5% | | | | | | 3% | | | | | | 2% | | | | | | (5)% | | | | | | 14% | | | | | | 1% | | | | | | 2% | | | | | | 1% | | |
(Benefit) provision for income
taxes |
| | | | 0% | | | | | | (5)% | | | | | | (0)% | | | | | | 0% | | | | | | 0% | | | | | | 1% | | | | | | (2)% | | | | | | 4% | | | | | | (2)% | | | | | | 1% | | | | | | 0% | | |
(Loss) income from continuing operations
|
| | | | (129)% | | | | | | (27)% | | | | | | (1)% | | | | | | 5% | | | | | | 2% | | | | | | 0% | | | | | | (3)% | | | | | | 9% | | | | | | 3% | | | | | | 1% | | | | | | 1% | | |
Net (loss) income
|
| | | | (129)% | | | | | | (27)% | | | | | | (1)% | | | | | | 5% | | | | | | 2% | | | | | | 0% | | | | | | (3)% | | | | | | 9% | | | | | | 3% | | | | | | 1% | | | | | | 1% | | |
Comprehensive (loss) income
|
| | | | (129)% | | | | | | (27)% | | | | | | (1)% | | | | | | 5% | | | | | | 2% | | | | | | 0% | | | | | | (3)% | | | | | | 9% | | | | | | 3% | | | | | | 1% | | | | | | 1% | | |
| | |
For the Nine Months Ended
September 30, |
| |
For the Year Ended
December 31, |
| ||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||||||||
Net cash flows provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 332,301 | | | | | $ | 267,927 | | | | | $ | 284,313 | | | | | $ | 292,303 | | | | | $ | 368,945 | | |
Investing activities
|
| | | $ | (150,328) | | | | | $ | (48,020) | | | | | $ | (66,414) | | | | | $ | (63,556) | | | | | $ | (60,709) | | |
Financing activities
|
| | | $ | 9 | | | | | $ | (201,143) | | | | | $ | (201,088) | | | | | $ | (245,150) | | | | | $ | (313,215) | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More
than 5 Years |
| |||||||||||||||
Long-term debt obligations(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Senior secured credit facilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Term Loan G
|
| | | $ | 2,710,000 | | | | | $ | — | | | | | $ | 2,710,000 | | | | | $ | — | | | | | $ | — | | |
7.125% Senior Notes due 2024
|
| | | | 1,560,000 | | | | | | — | | | | | | — | | | | | | 1,560,000 | | | | | | — | | |
Senior PIK Notes(2)
|
| | | | 1,178,727 | | | | | | — | | | | | | 1,178,727 | | | | | | — | | | | | | — | | |
Finance lease obligations
|
| | | | 187 | | | | | | 86 | | | | | | 101 | | | | | | — | | | | | | — | | |
Operating lease obligations
|
| | | | 36,607 | | | | | | 11,226 | | | | | | 23,560 | | | | | | 1,821 | | | | | | — | | |
Total contractual obligations
|
| | | $ | 5,485,521 | | | | | $ | 11,312 | | | | | $ | 3,912,388 | | | | | $ | 1,561,821 | | | | | $ | — | | |
(in thousands)
|
| |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than
5 Years |
| |||||||||||||||
Long-term debt obligations(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Senior secured credit facilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Term Loan G
|
| | | $ | 2,341,000 | | | | | $ | — | | | | | $ | 2,341,000 | | | | | $ | — | | | | | $ | — | | |
5.750% Notes due 2028
|
| | | | 1,300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,300,000 | | |
Convertible Notes(2)
|
| | | | 1,300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,300,000 | | |
Finance lease obligations
|
| | | | 207 | | | | | | 97 | | | | | | 110 | | | | | | — | | | | | | — | | |
Operating lease obligations
|
| | | | 39,162 | | | | | | 8,809 | | | | | | 16,173 | | | | | | 7,580 | | | | | | 6,600 | | |
Total contractual obligations
|
| | | $ | 4,980,369 | | | | | $ | 8,906 | | | | | $ | 2,357,283 | | | | | $ | 7,580 | | | | | $ | 2,606,600 | | |
| | |
As of June 30,
|
| |
For the Year Ended
December 31, |
| |||||||||
Range of Significant Unobservable Inputs
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| |
2017
|
|
Long term growth rate
|
| |
2.75% to 3.25%
|
| |
2.75% to 3.25%
|
| |
2.75% to 3.25%
|
| |
2.75% to 3.25%
|
| |
2.75% to 3.25%
|
|
Discount rate
|
| |
10.25% to 10.75%
|
| |
9.75% to 10.25%
|
| |
9.75% to 10.25%
|
| |
10.25% to 10.75%
|
| |
9.75% to 10.25%
|
|
Public company EBITDA multiples
|
| |
10.0x to 12.5x
|
| |
10.0x to 11.0x
|
| |
10.0x to 11.0x
|
| |
10.0x to 12.0x
|
| |
10.0x to 12.0x
|
|
Acquisition EBITDA multiples
|
| |
11.0x to 12.0x
|
| |
11.0x to 12.0x
|
| |
11.0x to 12.0x
|
| |
11.0x to 12.0x
|
| |
11.0x to 12.0x
|
|
Name
|
| |
Age
|
| |
Title
|
|
Mark Tabak | | |
70
|
| | Chief Executive Officer and Chair person of the Board | |
David Redmond | | |
69
|
| | Executive Vice President and Chief Financial Officer | |
Paul Galant | | |
52
|
| | President, New Markets | |
Dale White | | |
65
|
| | President, Payor Markets | |
Jeffrey Doctoroff | | |
52
|
| |
Senior Vice President, General Counsel and Secretary
|
|
Michael Kim | | |
54
|
| | Senior Vice President and Chief Information Officer | |
Glenn R. August | | |
59
|
| | Director | |
Richard A. Clarke | | |
70
|
| | Director | |
Anthony Colaluca | | |
54
|
| | Director | |
Paul D. Emery | | |
35
|
| | Director | |
Michael Klein | | |
57
|
| | Director | |
P. Hunter Philbrick | | |
41
|
| | Director | |
Allen R. Thorpe | | |
49
|
| | Director | |
Bill Veghte | | |
53
|
| | Director | |
Name
|
| |
2019
Base Salary |
| |||
Mr. Tabak
|
| | | $ | 858,145 | | |
Mr. Redmond
|
| | | $ | 561,834 | | |
Mr. White
|
| | | $ | 466,272 | | |
Mr. Kim
|
| | | $ | 391,565 | | |
Mr. Doctoroff
|
| | | $ | 347,323 | | |
Name
|
| |
Annual Incentive
Target % of Base Salary |
| |
Base Salary
|
| |
Annual Incentive
Target Payout |
| |||||||||
Mr. Tabak
|
| | | | 125% | | | | | $ | 858,145 | | | | | $ | 1,072,681 | | |
Mr. Redmond
|
| | | | 100% | | | | | $ | 561,834 | | | | | $ | 561,834 | | |
Mr. White
|
| | | | 100% | | | | | $ | 466,272 | | | | | $ | 466,272 | | |
Mr. Kim
|
| | | | 50% | | | | | $ | 391,565 | | | | | $ | 195,783 | | |
Mr. Doctoroff
|
| | | | 50% | | | | | $ | 347,323 | | | | | $ | 173,662 | | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Change in
Pension Value and Non- qualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($)(2) |
| |
Total
($) |
| |||||||||||||||||||||||||||
Mr. Tabak
|
| | | | 2019 | | | | | | 858,145 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,000 | | | | | | 865,145 | | |
Chief Executive Officer
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mr. Redmond
|
| | | | 2019 | | | | | | 561,834 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,000 | | | | | | 568,834 | | |
Executive Vice President &
Chief Financial Officer |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mr. White
|
| | | | 2019 | | | | | | 466,272 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,000 | | | | | | 473,272 | | |
Executive Vice President &
Chief Revenue Officer |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mr. Kim
|
| | | | 2019 | | | | | | 391,565 | | | | | | 175,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,000 | | | | | | 573,565 | | |
Senior Vice President & Chief
Information Officer |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mr. Doctoroff
|
| | | | 2019 | | | | | | 347,323 | | | | | | 150,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,000 | | | | | | 504,323 | | |
Senior Vice President & General
Counsel |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Estimated Future Payouts
Under Non-Equity Incentive Plan Awards |
| |||||||||||||||
Name
|
| |
Threshold
($) |
| |
Target
($) |
| |
Maximum
($) |
| |||||||||
Mr. Tabak
|
| | | | — | | | | | $ | 1,072,681 | | | | | | — | | |
Mr. Redmond
|
| | | | — | | | | | $ | 561,834 | | | | | | — | | |
Mr. White
|
| | | | — | | | | | $ | 466,272 | | | | | | — | | |
Mr. Kim
|
| | | | — | | | | | $ | 195,783 | | | | | | — | | |
Mr. Doctoroff
|
| | | | — | | | | | $ | 173,662 | | | | | | — | | |
| | | | | | | | |
Stock Awards
|
| |||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of Shares
or Units of Stock That Have Not Vested (#)(1) |
| |
Market Value
of Shares or Units of Stock That Have Not Vested ($)(2) |
| |
Equity Incentive
Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(3) |
| |
Equity Incentive
Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(4) |
| |||||||||||||||
Mr. Tabak
|
| | | | 6/7/2016 | | | | | | 6,433.39 | | | | | | 2,341,175 | | | | | | 21,444.64 | | | | | | 7,803,919 | | |
Mr. Redmond
|
| | | | 6/7/2016 | | | | | | 4,288.93 | | | | | | 1,560,785 | | | | | | 14,296.42 | | | | | | 5,202,610 | | |
Mr. White
|
| | | | 6/7/2016 | | | | | | 4,288.93 | | | | | | 1,560,785 | | | | | | 14,296.42 | | | | | | 5,202,610 | | |
Mr. Kim
|
| | | | 8/10/2016 | | | | | | 291.65 | | | | | | 106,134 | | | | | | 729.12 | | | | | | 265,334 | | |
Mr. Doctoroff
|
| | | | 8/10/2016 | | | | | | 291.65 | | | | | | 106,134 | | | | | | 729.12 | | | | | | 265,334 | | |
| | |
Stock Awards
|
| |||||||||
Name
|
| |
Number of Shares
Acquired on Vesting (#) |
| |
Value Realized on
Vesting ($) |
| ||||||
Mr. Tabak
|
| | | | 12,866.78 | | | | | | 4,682,350 | | |
Mr. Redmond
|
| | | | 8,577.86 | | | | | | 3,121,569 | | |
Mr. White
|
| | | | 8,577.86 | | | | | | 3,121,569 | | |
Mr. Kim
|
| | | | 437.47 | | | | | | 159,200 | | |
Mr. Doctoroff
|
| | | | 437.47 | | | | | | 159,200 | | |
Name
|
| |
Payment Type
|
| |
Termination Without
Cause or for Good Reason (Including Non- Extension of Term)(6) ($) |
| |
Termination Without
Good Reason Upon a Change in Control ($) |
| ||||||
Mr. Tabak
|
| | Cash Severance(1) | | | | | 4,934,334 | | | | | | 4,934,334 | | |
| | |
Benefit Continuation(2)
|
| | | | 24,518 | | | | | | 24,518 | | |
| | |
Total
|
| | | | 4,958,852 | | | | | | 4,958,852 | | |
Mr. Redmond
|
| | Cash Severance(3) | | | | | 2,247,336 | | | | | | 2,247,336 | | |
| | |
Benefit Continuation(2)
|
| | | | 24,518 | | | | | | 24,518 | | |
| | |
Total
|
| | | | 2,271,854 | | | | | | 2,271,854 | | |
Mr. White
|
| | Cash Severance(4) | | | | | 932,544 | | | | | | — | | |
| | |
Benefit Continuation(2)
|
| | | | 24,518 | | | | | | — | | |
| | |
Total
|
| | | | 957,062 | | | | | | — | | |
Mr. Kim
|
| | Cash Severance(5) | | | | | 195,783 | | | | | | — | | |
| | |
Benefit Continuation(2)
|
| | | | 22,637 | | | | | | — | | |
| | |
Total
|
| | | | 218,420 | | | | | | — | | |
Mr. Doctoroff
|
| | Cash Severance(5) | | | | | 173,662 | | | | | | — | | |
| | |
Benefit Continuation(2)
|
| | | | 40,428 | | | | | | — | | |
| | |
Total
|
| | | | 214,090 | | | | | | — | | |
Name
|
| |
Equity Award
|
| |
Termination
Without “Cause” or For “Good Reason” ($)(1) |
| |
Qualifying
Realization Event ($)(2) |
| |
Liquidity
Event/Qualifying Liquidity Event ($)(3) |
| |||||||||
Mr. Tabak
|
| | Time Vested Units | | | | | 2,341,175 | | | | | | — | | | | | | 2,341,175 | | |
| | |
Performance Vested Units
|
| | | | — | | | | | | — | | | | | | 7,803,919 | | |
| | |
Total
|
| | | | 2,341,175 | | | | | | — | | | | | | 10,145,094 | | |
Mr. Redmond
|
| | Time Vested Units | | | | | 1,560,785 | | | | | | — | | | | | | 1,560,785 | | |
| | |
Performance Vested Units
|
| | | | — | | | | | | — | | | | | | 5,202,610 | | |
| | |
Total
|
| | | | 1,560,785 | | | | | | — | | | | | | 6,763,395 | | |
Mr. White
|
| | Time Vested Units | | | | | 1,560,785 | | | | | | — | | | | | | 1,560,785 | | |
| | |
Performance Vested Units
|
| | | | — | | | | | | — | | | | | | 5,202,610 | | |
| | |
Total
|
| | | | 1,560,785 | | | | | | — | | | | | | 6,763,395 | | |
Mr. Kim
|
| | Time Vested Units | | | | | — | | | | | | — | | | | | | 106,134 | | |
| | |
Performance Vested Units
|
| | | | — | | | | | | — | | | | | | 265,334 | | |
| | |
Total
|
| | | | — | | | | | | — | | | | | | 371,468 | | |
Mr. Doctoroff
|
| | Time Vested Units | | | | | — | | | | | | — | | | | | | 106,134 | | |
| | |
Performance Vested Units
|
| | | | — | | | | | | — | | | | | | 265,334 | | |
| | |
Total
|
| | | | — | | | | | | — | | | | | | 371,468 | | |
Name
|
| |
Fees Earned
or Paid in Cash ($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Change in
Pension Value and Nonqualified Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||||||||||||||
Richard Clarke
|
| | | | 200,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 200,000 | | |
Committee
|
| |
Committee Member Retainer
|
| |
Committee Chair Retainer
|
| ||||||
Audit Committee
|
| | | $ | 12,500 | | | | | $ | 25,000 | | |
Compensation Committee
|
| | | $ | 10,000 | | | | | $ | 20,000 | | |
Nominating and Corporate Governance Committee
|
| | | $ | 7,500 | | | | | $ | 15,000 | | |
Name and Address of Beneficial Owner(1)
|
| |
Number
of Shares |
| |
Percent
Owned |
| ||||||
Five Percent Holders: | | | | | | | | | | | | | |
Churchill Sponsor III LLC(2)
|
| | | | 52,000,000 | | | | | | 7.5% | | |
GIC Investor(3)
|
| | | | 49,612,794 | | | | | | 7.4% | | |
Green Equity Investors(4)
|
| | | | 38,449,957 | | | | | | 5.8% | | |
H&F Investors(5)
|
| | | | 213,802,446 | | | | | | 32.0% | | |
Oak Hill Advisors Entities(6)
|
| | | | 41,111,550 | | | | | | 5.8% | | |
The Public Investment Fund of The Kingdom of Saudi Arabia(7)
|
| | | | 53,750,000 | | | | | | 8.0% | | |
Named Executive Officers and Directors: | | | | | | | | | | | | | |
Mark Tabak(8)
|
| | | | 13,890,202 | | | | | | 2.1% | | |
David Redmond
|
| | | | — | | | | | | — | | |
Dale White
|
| | | | 8,066,106 | | | | | | 1.2% | | |
Jeff Doctoroff
|
| | | | 301,464 | | | | | | * | | |
Michael Kim
|
| | | | 301,464 | | | | | | * | | |
Glenn R. August(9)(10)
|
| | | | 41,111,550 | | | | | | 5.8% | | |
Richard Clarke
|
| | | | — | | | | | | — | | |
Anthony Colaluca
|
| | | | — | | | | | | — | | |
Paul Emery(11)
|
| | | | — | | | | | | — | | |
Michael Klein(2)(12)
|
| | | | 52,000,000 | | | | | | 7.5% | | |
Hunter Philbrick(11)
|
| | | | — | | | | | | — | | |
Allen Thorpe(11)
|
| | | | — | | | | | | — | | |
Bill Veghte(9)
|
| | | | — | | | | | | — | | |
All executive officers and directors as a group (15 individuals)
|
| | | | 115,670,786 | | | | | | 17.3% | | |
| | |
Founder
Shares |
| |||
Glenn R. August(A)
|
| | | | 3,933,137 | | |
Bill Veghte(B)
|
| | | | 669,985 | | |
| | |
Securities Beneficially Owned
Prior to this Offering |
| |
Securities to be
Sold in this Offering(1) |
| |
Securities Beneficially Owned
After this Offering |
| |||||||||||||||||||||||||||||||||||||||
Name of Selling Securityholder
|
| |
Shares of
Class A common stock(2) |
| |
Warrants(3)
|
| |
Shares of
Class A common stock |
| |
Warrants
|
| |
Shares of
Class A common stock(2) |
| |
%
|
| |
Warrants(3)
|
| |
%
|
| ||||||||||||||||||||||||
30 MP Investment, LLC(4)
|
| | | | 19,810,354 | | | | | | — | | | | | | 19,810,354 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Alberta Investment Management Corporation(5)
|
| | | | 5,346,614 | | | | | | — | | | | | | 1,855,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Alyeska Investors(6)
|
| | | | 3,251,878 | | | | | | — | | | | | | 2,650,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
BDG Enterprises, L.P.(7).
|
| | | | 2,135,034 | | | | | | — | | | | | | 2,135,034 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
CCC-III Investments LLC(8)
|
| | | | 10,600,000 | | | | | | — | | | | | | 10,600,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Churchill Sponsor III LLC(9)
|
| | | | 27,500,000 | | | | | | 24,500,000 | | | | | | 27,500,000 | | | | | | 24,500,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dale White(10)
|
| | | | 8,066,106 | | | | | | — | | | | | | 8,066,106 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Darlington Investors(11)
|
| | | | 4,025,000 | | | | | | — | | | | | | 2,650,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David L. Redmond Children’s 2007 Irrevocable Trust(12)
|
| | | | 5,911,061 | | | | | | — | | | | | | 5,911,061 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
FIAM Target Date Blue Chip Growth Commingled Pool
By: Fidelity Institutional Asset Management Trust Company as Trustee(13)(14) |
| | | | 290,124 | | | | | | — | | | | | | 290,124 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Advisor Series I: Fidelity Advisor
Equity Growth Fund(13)(15) |
| | | | 775,187 | | | | | | — | | | | | | 775,187 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Advisor Series I: Fidelity Advisor
Series Equity Growth Fund(13)(16) |
| | | | 212,762 | | | | | | — | | | | | | 212,762 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Blue Chip Growth Commingled Pool
By: Fidelity Management Trust Company, as Trustee (13)(17) |
| | | | 109,683 | | | | | | — | | | | | | 109,683 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Blue Chip Growth Institutional Trust
By its manager Fidelity Investments Canada ULC(13)(18) |
| | | | 9,990 | | | | | | — | | | | | | 9,990 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Capital Trust: Fidelity Capital Appreciation Fund(13)(19)
|
| | | | 1,117,158 | | | | | | — | | | | | | 1,117,158 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Hastings Street Trust: Fidelity Growth Discovery Fund(13)(20)
|
| | | | 519,005 | | | | | | — | | | | | | 519,005 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Securities Fund: Fidelity Blue Chip Growth Fund(13)(21)
|
| | | | 2,943,809 | | | | | | — | | | | | | 2,943,809 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Securities Fund: Fidelity Blue Chip Growth K6 Fund(13)(22)
|
| | | | 293,755 | | | | | | — | | | | | | 293,755 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Securities Fund: Fidelity Flex Large Cap Growth Fund(13)(23)
|
| | | | 4,462 | | | | | | — | | | | | | 4,462 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Fidelity Securities Fund: Fidelity Series Blue Chip Growth Fund(13)(24)
|
| | | | 513,168 | | | | | | — | | | | | | 513,168 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Garden State Capital Partners LLC(25)
|
| | | | 9,010,000 | | | | | | — | | | | | | 9,010,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
GIC Investor(26)
|
| | | | 49,612,794 | | | | | | — | | | | | | 49,612,794 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Green Equity Investors(27)
|
| | | | 38,449,957 | | | | | | — | | | | | | 38,449,957 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
H&F Investors(28)
|
| | | | 213,802,446 | | | | | | — | | | | | | 213,802,446 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Integrated Core Strategies (US) LLC(29)
|
| | | | 3,541,513 | | | | | | — | | | | | | 1,537,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Intrinsic Edge Capture, L.P.(30)
|
| | | | 1,590,000 | | | | | | — | | | | | | 1,590,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lauren Fass 2012 Dynasty Trust(31)
|
| | | | 4,433,296 | | | | | | — | | | | | | 4,433,296 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
LH Capital Markets, LLC(32)
|
| | | | 2,120,000 | | | | | | — | | | | | | 2,120,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lindsay Levin 2012 Dynasty Trust(33)
|
| | | | 4,433,296 | | | | | | — | | | | | | 4,433,296 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Longfellow Investment Management Co., LLC(34)
|
| | | | 1,289,750 | | | | | | — | | | | | | 1,219,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Securities Beneficially Owned
Prior to this Offering |
| |
Securities to be
Sold in this Offering(1) |
| |
Securities Beneficially Owned
After this Offering |
| |||||||||||||||||||||||||||||||||||||||
Name of Selling Securityholder
|
| |
Shares of
Class A common stock(2) |
| |
Warrants(3)
|
| |
Shares of
Class A common stock |
| |
Warrants
|
| |
Shares of
Class A common stock(2) |
| |
%
|
| |
Warrants(3)
|
| |
%
|
| ||||||||||||||||||||||||
Mark Tabak(35)
|
| | | | 5,023,610 | | | | | | — | | | | | | 5,023,610 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
The Michael and Susan Dell Foundation(36)
|
| | | | 5,300,000 | | | | | | — | | | | | | 5,300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Michael Ferrante(37)
|
| | | | 4,534,383 | | | | | | — | | | | | | 4,534,383 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
MMCAP International Inc. SPC(38)
|
| | | | 8,968,427 | | | | | | — | | | | | | 7,950,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Moore Global Investments, LLC(39)
|
| | | | 4,240,000 | | | | | | — | | | | | | 4,240,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
MSD Value Investments, L.P.(40)
|
| | | | 5,300,000 | | | | | | — | | | | | | 5,300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Nomura Global Financial Products
Inc.(41) |
| | | | 3,180,000 | | | | | | — | | | | | | 3,180,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Oak Hill Advisor Entities(42)
|
| | | | 2,650,000 | | | | | | — | | | | | | 2,650,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Partners Group Entities(43)
|
| | | | 30,309,824 | | | | | | — | | | | | | 30,309,824 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Periscope Capital Inc. (44)
|
| | | | 2,120,000 | | | | | | — | | | | | | 2,120,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
The Public Investment Fund of The Kingdom of Saudi Arabia(45)
|
| | | | 53,750,000 | | | | | | — | | | | | | 53,750,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Schonfeld Strategic 460 Fund LLC(46)
|
| | | | 3,847,500 | | | | | | — | | | | | | 1,060,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
SIH MPH Rollover Co, L.P.(47)
|
| | | | 24,412,106 | | | | | | — | | | | | | 24,412,106 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
TBG AG(48)
|
| | | | 5,395,000 | | | | | | — | | | | | | 4,770,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tech Opportunities LLC(49)
|
| | | | 2,120,000 | | | | | | — | | | | | | 2,120,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
UBS O’Connor(50)
|
| | | | 7,931,251 | | | | | | — | | | | | | 4,664,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Variable Insurance Products Fund III: Dynamic Capital Appreciation Portfolio(13)(51)
|
| | | | 34,543 | | | | | | — | | | | | | 34,543 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Variable Insurance Products Fund: Growth
Portfolio(13)(52) |
| | | | 1,391,354 | | | | | | — | | | | | | 1,391,354 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Additional Selling Securityholders(53)
|
| | | | 4,765,736 | | | | | | — | | | | | | 4,765,736 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Page
|
| |||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| | | | | F-17 | | | |
| | | | | F-18 | | | |
| | | | | F-19 | | | |
| | | | | F-20 | | | |
| | | | | F-21 | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-37 | | |
| | | | | F-63 | | | |
| | | | | F-64 | | | |
| | | | | F-65 | | | |
| | | | | F-66 | | | |
| | | | | F-67 | | |
| ASSETS | | | | | | | |
|
Current asset – cash
|
| | | $ | 34,000 | | |
|
Deferred offering costs
|
| | | | 284,930 | | |
|
Total Assets
|
| | | $ | 318,930 | | |
| LIABILITIES AND STOCKHOLDER’S EQUITY | | | | | | | |
|
Current liabilities
|
| | | | | | |
|
Accrued expenses
|
| | | $ | 1,450 | | |
|
Accrued offering costs
|
| | | | 168,930 | | |
|
Promissory note-related party
|
| | | | 125,000 | | |
|
Total Current Liabilities
|
| | | | 295,380 | | |
| Commitments | | | | | | | |
| Stockholder’s Equity | | | | | | | |
|
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class A common stock, $0.0001 par value; 250,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 27,500,000 shares issued and outstanding(1)
|
| | | | 2,750 | | |
|
Additional paid-in capital
|
| | | | 22,250 | | |
|
Accumulated deficit
|
| | | | (1,450) | | |
|
Total Stockholder’s Equity
|
| | | | 23,550 | | |
|
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY
|
| | | $ | 318,930 | | |
|
Formation costs
|
| | | $ | 1,450 | | |
|
Net Loss
|
| | | $ | (1,450) | | |
|
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 25,000,000 | | |
|
Basic and diluted net loss per common share
|
| | | $ | (0.00) | | |
| | |
Common Stock(1)
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholder’s Equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balance – October 30, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to Sponsor(1)
|
| | | | 27,500,000 | | | | | | 2,750 | | | | | | 22,250 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,450) | | | | | | (1,450) | | |
Balance – December 31, 2019
|
| | | | 27,500,000 | | | | | $ | 2,750 | | | | | $ | 22,250 | | | | | $ | (1,450) | | | | | $ | 23,550 | | |
| Cash Flows from Operating Activities: | | | | | | | |
|
Net loss
|
| | | $ | (1,450) | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Accrued expenses
|
| | | | 1,450 | | |
|
Net cash used in operating activities
|
| | | | — | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from issuance of common stock to Sponsor
|
| | | | 25,000 | | |
|
Proceeds from promissory note-related party
|
| | | | 125,000 | | |
|
Payment of offering costs
|
| | | | (116,000) | | |
|
Net cash provided by financing activities
|
| | | | 34,000 | | |
|
Net Change in Cash
|
| | | | 34,000 | | |
|
Cash – Beginning
|
| | | | — | | |
| Cash – Ending | | | | $ | 34,000 | | |
| Non-Cash investing and financing activities: | | | | | | | |
|
Deferred offering costs included in accrued offering costs
|
| | | $ | 168,930 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets
|
| | | | | | | | | | | | |
Cash
|
| | | $ | 3,189,455 | | | | | $ | 34,000 | | |
Prepaid expenses
|
| | | | 297,692 | | | | | | — | | |
Total Current Assets
|
| | | | 3,487,147 | | | | | | 34,000 | | |
Cash equivalents held in Trust Account
|
| | | | 1,104,025,998 | | | | | | — | | |
Deferred offering costs
|
| | | | — | | | | | | 284,930 | | |
TOTAL ASSETS
|
| | | $ | 1,107,513,145 | | | | | $ | 318,930 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
Current liabilities
|
| | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 8,760,496 | | | | | $ | 1,450 | | |
Accrued offering costs
|
| | | | — | | | | | | 168,930 | | |
Income taxes payable
|
| | | | 310,298 | | | | | | — | | |
Promissory note – related party
|
| | | | — | | | | | | 125,000 | | |
Total Current Liabilities
|
| | | | 9,070,794 | | | | | | 295,380 | | |
Convertible promissory note – related party
|
| | | | 1,500,000 | | | | | | — | | |
Deferred underwriting fee payable
|
| | | | 38,500,000 | | | | | | — | | |
Total Liabilities
|
| | | | 49,070,794 | | | | | | 295,380 | | |
Commitments
|
| | | | | | | | | | | | |
Common stock subject to possible redemption, 105,003,860 and no shares
at redemption value at September 30, 2020 and December 31, 2019, respectively |
| | | | 1,053,442,348 | | | | | | — | | |
Stockholders’ Equity
|
| | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 250,000,000 shares authorized;
4,996,140 and no shares issued and outstanding (excluding 105,003,860 and no shares subject to possible redemption) at September 30, 2020 and December 31, 2019, respectively |
| | | | 500 | | | | | | — | | |
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 27,500,000 shares issued and outstanding at September 30, 2020 and December 31, 2019(1)
|
| | | | 2,750 | | | | | | 2,750 | | |
Additional paid-in capital
|
| | | | 11,959,382 | | | | | | 22,250 | | |
Accumulated deficit
|
| | | | (6,962,629) | | | | | | (1,450) | | |
Total Stockholders’ Equity
|
| | | | 5,000,003 | | | | | | 23,550 | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | $ | 1,107,513,145 | | | | | $ | 318,930 | | |
| | |
Three Months
Ended September 30, 2020 |
| |
Nine Months
Ended September 30, 2020 |
| ||||||
Operating costs
|
| | | $ | 8,615,032 | | | | | $ | 10,676,879 | | |
Loss from operations
|
| | | | (8,615,032) | | | | | | (10,676,879) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on cash equivalents held in Trust Account
|
| | | | 160,319 | | | | | | 4,375,998 | | |
Unrealized gain on cash equivalents held in Trust Account
|
| | | | 6,366 | | | | | | — | | |
Other income, net
|
| | | | 166,685 | | | | | | 4,375,998 | | |
Loss before provision for income taxes
|
| | | | (8,448,347) | | | | | | (6,300,881) | | |
Provision for income taxes
|
| | | | (209,330) | | | | | | (660,298) | | |
Net loss
|
| | | $ | (8,657,677) | | | | | $ | (6,961,179) | | |
Weighted average shares outstanding, basic and diluted(1)
|
| | | | 31,301,692 | | | | | | 30,815,111 | | |
Basic and diluted net loss per common share(2)
|
| | | $ | (0.28) | | | | | $ | (0.31) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid in Capital |
| |
(Accumulated
Deficit) / Retained Earnings |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2020
|
| | | | — | | | | | $ | — | | | | | | 27,500,000 | | | | | $ | 2,750 | | | | | $ | 22,250 | | | | | $ | (1,450) | | | | | $ | 23,550 | | |
Sale of 110,000,000 Units, net of underwriting discount and offering expenses
|
| | | | 110,000,000 | | | | | | 11,000 | | | | | | — | | | | | | — | | | | | | 1,042,368,980 | | | | | | — | | | | | | 1,042,379,980 | | |
Sale of 23,000,000 Private Placement Warrants
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,000,000 | | | | | | — | | | | | | 23,000,000 | | |
Common stock subject to possible redemption
|
| | | | (105,990,308) | | | | | | (10,599) | | | | | | — | | | | | | — | | | | | | (1,063,424,462) | | | | | | — | | | | | | (1,063,435,061) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,031,538 | | | | | | 3,031,538 | | |
Balance – March 31, 2020
|
| | | | 4,009,692 | | | | | | 401 | | | | | | 27,500,000 | | | | | | 2,750 | | | | | | 1,966,768 | | | | | | 3,030,088 | | | | | | 5,000,007 | | |
Change in value of common stock subject to possible redemption
|
| | | | 132,236 | | | | | | 13 | | | | | | — | | | | | | — | | | | | | 1,335,021 | | | | | | — | | | | | | 1,335,034 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,335,040) | | | | | | (1,335,040) | | |
Balance – June 30, 2020
|
| | | | 4,141,928 | | | | | | 414 | | | | | | 27,500,000 | | | | | | 2,750 | | | | | | 3,301,789 | | | | | | 1,695,048 | | | | | | 5,000,001 | | |
Change in value of common stock subject to possible redemption
|
| | | | 854,212 | | | | | | 86 | | | | | | — | | | | | | — | | | | | | 8,657,593 | | | | | | — | | | | | | 8,657,679 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,657,677) | | | | | | (8,657,677) | | |
Balance – September 30, 2020
|
| | | | 4,996,140 | | | | | $ | 500 | | | | | | 27,500,000 | | | | | $ | 2,750 | | | | | $ | 11,959,382 | | | | | $ | (6,962,629) | | | | | $ | 5,000,003 | | |
|
| Cash Flows from Operating Activities: | | | | | | | |
|
Net loss
|
| | | $ | (6,961,179) | | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | |
|
Interest earned on cash equivalents held in Trust Account
|
| | | | (4,375,998) | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Prepaid expenses
|
| | | | (297,692) | | |
|
Income tax payable
|
| | | | 310,298 | | |
|
Accrued expenses
|
| | | | 8,759,046 | | |
|
Net cash used in operating activities
|
| | | | (2,565,525) | | |
| Cash Flows from Investing Activities: | | | | | | | |
|
Investment of cash in Trust Account
|
| | | | (1,100,000,000) | | |
|
Cash withdrawn for tax payments
|
| | | | 350,000 | | |
|
Net cash used in investing activities
|
| | | | (1,099,650,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 1,081,598,000 | | |
|
Proceeds from sale of Private Placement Warrants
|
| | | | 23,000,000 | | |
|
Proceeds from convertible promissory note
|
| | | | 1,500,000 | | |
|
Proceeds from promissory note – related party
|
| | | | 209,600 | | |
|
Repayment of promissory note – related party
|
| | | | (334,600) | | |
|
Payment of offering costs
|
| | | | (602,020) | | |
|
Net cash provided by financing activities
|
| | | | 1,105,370,980 | | |
|
Net Change in Cash
|
| | | | 3,155,455 | | |
|
Cash – Beginning of period
|
| | | | 34,000 | | |
|
Cash – End of period
|
| | | $ | 3,189,455 | | |
| Supplemental cash flow information: | | | | | | | |
|
Cash paid for income taxes
|
| | | $ | 350,000 | | |
| Non-Cash investing and financing activities: | | | | | | | |
|
Initial classification of common stock subject to redemption
|
| | | $ | 1,060,389,960 | | |
|
Change in value of common stock subject to possible redemption
|
| | | $ | (6,947,612) | | |
|
Deferred underwriting fee payable
|
| | | $ | 38,500,000 | | |
| | |
Three Months
Ended September 30, 2020 |
| |
Nine Months
Ended September 30, 2020 |
| ||||||
Net loss
|
| | | $ | (8,657,677) | | | | | $ | (6,961,179) | | |
Less: Income attributable to common stock subject to possible redemption
|
| | | | — | | | | | | (2,449,217) | | |
Adjusted net loss
|
| | | $ | (8,657,677) | | | | | $ | (9,410,396) | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 31,301,692 | | | | | | 30,815,111 | | |
Basic and diluted net loss per common share
|
| | | $ | (0.28) | | | | | $ | (0.31) | | |
Description
|
| |
Level
|
| |
September 30,
2020 |
| ||||||
Assets: | | | | | | | | | | | | | |
Cash equivalents held in Trust Account
|
| | | | 1 | | | | | $ | 1,104,025,998 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 21,825 | | | | | $ | 5,014 | | |
Trade accounts receivable, net
|
| | | | 77,071 | | | | | | 82,350 | | |
Prepaid expenses and other current assets
|
| | | | 5,032 | | | | | | 7,885 | | |
Prepaid software and maintenance
|
| | | | 9,556 | | | | | | 9,723 | | |
Prepaid taxes
|
| | | | 2,130 | | | | | | 704 | | |
Total current assets
|
| | | | 115,614 | | | | | | 105,676 | | |
Property and equipment, net
|
| | | | 177,992 | | | | | | 168,486 | | |
Operating lease right-of-use assets
|
| | | | 29,998 | | | | | | — | | |
Goodwill
|
| | | | 4,142,013 | | | | | | 4,142,013 | | |
Client relationships intangible, net
|
| | | | 3,135,782 | | | | | | 3,410,049 | | |
Provider network intangible, net
|
| | | | 683,561 | | | | | | 743,347 | | |
Other intangibles, net
|
| | | | 67,300 | | | | | | 67,300 | | |
Other assets
|
| | | | 8,151 | | | | | | 6,102 | | |
Total assets
|
| | | $ | 8,360,411 | | | | | $ | 8,642,973 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 9,565 | | | | | $ | 10,852 | | |
Accrued interest
|
| | | | 17,966 | | | | | | 18,905 | | |
Operating lease obligation
|
| | | | 9,521 | | | | | | — | | |
Accrued compensation
|
| | | | 26,311 | | | | | | 12,902 | | |
Accrued legal
|
| | | | 10,038 | | | | | | 10,451 | | |
Accrued administrative fees
|
| | | | 3,861 | | | | | | 3,975 | | |
Other accrued expenses
|
| | | | 8,524 | | | | | | 8,077 | | |
Total current liabilities
|
| | | | 85,786 | | | | | | 65,162 | | |
Long-term debt
|
| | | | 5,397,122 | | | | | | 5,603,413 | | |
Operating lease obligation
|
| | | | 23,086 | | | | | | — | | |
Deferred income taxes
|
| | | | 869,199 | | | | | | 980,603 | | |
Other long-term liabilities
|
| | | | — | | | | | | 3,407 | | |
Total liabilities
|
| | | | 6,375,193 | | | | | | 6,652,585 | | |
Commitments and contingencies (Note 12) | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Shareholder interests
|
| | | | | | | | | | | | |
Common stock, par value $0.001; 1,000 shares authorized (500 Series A and 500 Series B); 5 shares of Series A and 5 shares of Series B issued and outstanding as of December 31, 2019 and 2018
|
| | | | — | | | | | | — | | |
Contributed capital
|
| | | | 1,347,656 | | | | | | 1,362,536 | | |
Retained earnings
|
| | | | 637,562 | | | | | | 627,852 | | |
Shareholders’ equity
|
| | | | 1,985,218 | | | | | | 1,990,388 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 8,360,411 | | | | | $ | 8,642,973 | | |
|
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Revenues
|
| | | $ | 982,901 | | | | | $ | 1,040,883 | | | | | $ | 1,067,266 | | |
Costs of services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | 149,607 | | | | | | 149,463 | | | | | | 193,655 | | |
General and administrative expenses
|
| | | | 75,225 | | | | | | 77,558 | | | | | | 122,920 | | |
Depreciation
|
| | | | 55,807 | | | | | | 52,268 | | | | | | 53,002 | | |
Amortization of intangible assets
|
| | | | 334,053 | | | | | | 334,053 | | | | | | 334,053 | | |
Total expenses
|
| | | | 614,692 | | | | | | 613,342 | | | | | | 703,630 | | |
Operating income
|
| | | | 368,209 | | | | | | 427,541 | | | | | | 363,636 | | |
Interest expense
|
| | | | 376,346 | | | | | | 383,261 | | | | | | 281,972 | | |
Interest income
|
| | | | (196) | | | | | | (51) | | | | | | (9) | | |
Loss on extinguishments and modification of debt
|
| | | | — | | | | | | — | | | | | | 20,053 | | |
Gain on repurchase and cancellation of Notes
|
| | | | (18,450) | | | | | | — | | | | | | — | | |
Net income before income taxes
|
| | | | 10,509 | | | | | | 44,331 | | | | | | 61,620 | | |
Provision (benefit) for income taxes
|
| | | | 799 | | | | | | 8,108 | | | | | | (586,512) | | |
Income from continuing operations
|
| | | | 9,710 | | | | | | 36,223 | | | | | | 648,132 | | |
Net income
|
| | | | 9,710 | | | | | | 36,223 | | | | | | 648,132 | | |
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 10 | | | | | | 10 | | | | | | 10 | | |
Diluted
|
| | | | 10 | | | | | | 10 | | | | | | 10 | | |
Net income per share: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 971,000 | | | | | $ | 3,622,300 | | | | | $ | 64,813,200 | | |
Diluted
|
| | | $ | 971,000 | | | | | $ | 3,622,300 | | | | | $ | 64,813,200 | | |
Comprehensive income
|
| | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | 648,132 | | |
| | |
Common Stock
Shares |
| |
Common Stock
Amount |
| |
Contributed
Capital |
| |
Retained
Earnings |
| |
Total
Shareholders’ Equity |
| |||||||||||||||
Balance as of December 31, 2016
|
| | | | 10 | | | | | $ | — | | | | | $ | 2,726,741 | | | | | $ | (56,503) | | | | | $ | 2,670,238 | | |
Distribution of capital to shareholders
|
| | | | — | | | | | | — | | | | | | (1,323,025) | | | | | | — | | | | | | (1,323,025) | | |
Distributions to Class B Units holders
|
| | | | — | | | | | | — | | | | | | (96,685) | | | | | | — | | | | | | (96,685) | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | 50,788 | | | | | | — | | | | | | 50,788 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 648,132 | | | | | | 648,132 | | |
Balance as of December 31, 2017
|
| | | | 10 | | | | | | — | | | | | | 1,357,819 | | | | | | 591,629 | | | | | | 1,949,448 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | 4,717 | | | | | | — | | | | | | 4,717 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 36,223 | | | | | | 36,223 | | |
Balance as of December 31, 2018
|
| | | | 10 | | | | | | — | | | | | | 1,362,536 | | | | | | 627,852 | | | | | | 1,990,388 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | (14,880) | | | | | | — | | | | | | (14,880) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 9,710 | | | | | | 9,710 | | |
Balance as of December 31, 2019
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,347,656 | | | | | $ | 637,562 | | | | | $ | 1,985,218 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Operating activities: | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | 648,132 | | |
Adjustments to reconcile net income to net cash provided by operating
activities: |
| | | | |||||||||||||||
Depreciation
|
| | | | 55,807 | | | | | | 52,268 | | | | | | 53,002 | | |
Amortization of intangible assets
|
| | | | 334,053 | | | | | | 334,053 | | | | | | 334,053 | | |
Amortization of debt issuance costs
|
| | | | 11,435 | | | | | | 10,993 | | | | | | 9,462 | | |
Stock-based compensation
|
| | | | (14,880) | | | | | | 4,717 | | | | | | 50,788 | | |
Deferred tax benefit
|
| | | | (111,404) | | | | | | (112,483) | | | | | | (719,239) | | |
Non-cash interest costs
|
| | | | 1,933 | | | | | | 1,932 | | | | | | 289 | | |
Gain on repurchase and cancellation of Notes
|
| | | | (18,450) | | | | | | — | | | | | | — | | |
Non-cash loss on extinguishments and modification of debt
|
| | | | — | | | | | | — | | | | | | 20,053 | | |
Loss on disposal of property and equipment
|
| | | | 163 | | | | | | 2,210 | | | | | | 2,539 | | |
Changes in assets and liabilities, net of acquired balances:
|
| | | | | | | | | | | | | | | | | | |
Accounts receivable, net
|
| | | | 5,279 | | | | | | 3,019 | | | | | | (28,910) | | |
Prepaid expenses and other assets
|
| | | | 772 | | | | | | (4,681) | | | | | | (1,589) | | |
Prepaid taxes
|
| | | | (1,426) | | | | | | 4,402 | | | | | | (5,106) | | |
Accounts payable and accrued expenses and other
|
| | | | 11,321 | | | | | | (40,350) | | | | | | 5,471 | | |
Net cash provided by operating activities
|
| | | | 284,313 | | | | | | 292,303 | | | | | | 368,945 | | |
Investing activities: | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (66,414) | | | | | | (63,556) | | | | | | (60,709) | | |
Net cash used in investing activities
|
| | | | (66,414) | | | | | | (63,556) | | | | | | (60,709) | | |
Financing activities: | | | | | | | | | | | | | | | | | | | |
Repayments of long term debt
|
| | | | (100,000) | | | | | | (245,000) | | | | | | (165,000) | | |
Borrowings on revolving credit facility
|
| | | | — | | | | | | 5,000 | | | | | | — | | |
Repayments on revolving credit facility
|
| | | | — | | | | | | (5,000) | | | | | | — | | |
Repurchase of Notes
|
| | | | (101,013) | | | | | | — | | | | | | | | |
Proceeds from issuance of Senior Notes PIK due 2022
|
| | | | — | | | | | | — | | | | | | 1,287,000 | | |
Distribution of capital to shareholders
|
| | | | — | | | | | | — | | | | | | (1,323,025) | | |
Class B Unit distribution
|
| | | | — | | | | | | — | | | | | | (96,685) | | |
Payment of debt issuance costs
|
| | | | — | | | | | | — | | | | | | (15,329) | | |
Payments on finance leases, net
|
| | | | (75) | | | | | | (150) | | | | | | (176) | | |
Net cash used in financing activities
|
| | | | (201,088) | | | | | | (245,150) | | | | | | (313,215) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 16,811 | | | | | | (16,403) | | | | | | (4,979) | | |
Cash and cash equivalents at beginning of period
|
| | | | 5,014 | | | | | | 21,417 | | | | | | 26,396 | | |
Cash and cash equivalents at end of period
|
| | | $ | 21,825 | | | | | $ | 5,014 | | | | | $ | 21,417 | | |
Noncash investing and financing activities: | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment not yet paid
|
| | | $ | 3,768 | | | | | $ | 3,782 | | | | | $ | 2,276 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | | | | | | | |
Cash paid during the period for: | | | | | | | | | | | | | | | | | | | |
Interest
|
| | | $ | (363,907) | | | | | $ | (374,168) | | | | | $ | (258,948) | | |
Income taxes, net of refunds
|
| | | $ | (114,569) | | | | | $ | (116,634) | | | | | $ | (138,817) | | |
($ in millions)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Allowance as of January 1,
|
| | | | 0.5 | | | | | | 0.6 | | | | | | 0.6 | | |
Provision for doubtful accounts
|
| | | | — | | | | | | — | | | | | | — | | |
Write-offs of uncollectible receivables
|
| | | | (0.1) | | | | | | (0.1) | | | | | | — | | |
Allowance as of December 31,
|
| | | | 0.4 | | | | | | 0.5 | | | | | | 0.6 | | |
Asset Classification
|
| |
Estimated Used Life
|
|
Leasehold improvements | | |
The shorter of the life of lease or asset life, 5 – 15 years
|
|
Furniture and equipment | | | 5 – 7 years | |
Computer hardware | | | 3 – 5 years | |
Computer software | | | 3 – 5 years | |
Asset Classification
|
| |
Estimated Used Life
|
|
Client relationships | | | 15 years | |
Provider Network | | | 15 years | |
Trade Names | | | Indefinite life | |
| | |
For the Twelve Months Ended December 31,
|
| |||||||||||||||
($ in thousands)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Revenues | | | | | | | | | | | | | | | | | | | |
Network Services
|
| | | $ | 314,510 | | | | | $ | 363,510 | | | | | $ | 415,759 | | |
Percentage of Savings
|
| | | | 249,095 | | | | | | 289,874 | | | | | | 340,084 | | |
PEPM
|
| | | | 56,841 | | | | | | 60,950 | | | | | | 60,748 | | |
Other
|
| | | | 8,574 | | | | | | 12,686 | | | | | | 14,927 | | |
Analytic-Based Services
|
| | | | 561,525 | | | | | | 584,998 | | | | | | 584,925 | | |
Percentage of Savings
|
| | | | 560,675 | | | | | | 584,453 | | | | | | 583,710 | | |
PEPM
|
| | | | 850 | | | | | | 545 | | | | | | 1,215 | | |
Payment Integrity Services
|
| | | | 106,866 | | | | | | 92,375 | | | | | | 66,582 | | |
Percentage of Savings
|
| | | | 106,782 | | | | | | 92,223 | | | | | | 66,582 | | |
PEPM
|
| | | | 84 | | | | | | 152 | | | | | | — | | |
Total Revenues
|
| | | $ | 982,901 | | | | | $ | 1,040,883 | | | | | $ | 1,067,266 | | |
| | |
2019
|
| |
2018
|
| ||||||||||||||||||||||||||||||
($ in thousands)
|
| |
Property
and Equipment |
| |
Accumulated
Depreciation |
| |
Property and
Equipment, Net |
| |
Property
and Equipment |
| |
Accumulated
Depreciation |
| |
Property and
Equipment, Net |
| ||||||||||||||||||
Leasehold improvements
|
| | | $ | 3,569 | | | | | $ | (2,072) | | | | | $ | 1,497 | | | | | $ | 3,078 | | | | | $ | (1,431) | | | | | $ | 1,647 | | |
Furniture & equipment
|
| | | | 5,499 | | | | | | (3,109) | | | | | | 2,390 | | | | | | 5,512 | | | | | | (2,529) | | | | | | 2,983 | | |
Computer hardware
|
| | | | 36,979 | | | | | | (23,174) | | | | | | 13,805 | | | | | | 32,086 | | | | | | (16,601) | | | | | | 15,485 | | |
Computer software
|
| | | | 32,905 | | | | | | (23,055) | | | | | | 9,850 | | | | | | 29,067 | | | | | | (17,657) | | | | | | 11,410 | | |
Capitalized software development
|
| | | | 283,391 | | | | | | (132,941) | | | | | | 150,450 | | | | | | 227,946 | | | | | | (90,985) | | | | | | 136,961 | | |
Total Property and Equipment
|
| | | $ | 362,343 | | | | | $ | (184,351) | | | | | $ | 177,992 | | | | | $ | 297,689 | | | | | $ | (129,203) | | | | | $ | 168,486 | | |
($ in thousands)
|
| | | | | | |
2019
|
| | | $ | 10,658 | | |
2020
|
| | | | 10,628 | | |
2021
|
| | | | 8,579 | | |
2022
|
| | | | 6,583 | | |
2023
|
| | | | 2,336 | | |
Thereafter
|
| | | | — | | |
Total lease payments
|
| | | $ | 38,784 | | |
($ in thousands)
|
| |
Year Ended
December 31, 2019 |
|
Cash paid for amounts included in the measurement of lease liabilities: | | | ||
Operating cash flow from operating leases
|
| |
$10,961
|
|
| | | | | |
2019
|
| |
2018
|
| ||||||||||||||||||||||||||||||
($ in thousands)
|
| |
Amortization
Period |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Value |
| ||||||||||||||||||
Client relationships
|
| |
15 years
|
| | | $ | 4,114,000 | | | | | $ | (978,218) | | | | | $ | 3,135,782 | | | | | $ | 4,114,000 | | | | | $ | (703,951) | | | | | $ | 3,410,049 | | |
Provider network
|
| |
15 years
|
| | | | 896,800 | | | | | | (213,239) | | | | | | 683,561 | | | | | | 896,800 | | | | | | (153,453) | | | | | | 743,347 | | |
Trade names
|
| |
Indefinite Life
|
| | | | 67,300 | | | | | | — | | | | | | 67,300 | | | | | | 67,300 | | | | | | — | | | | | | 67,300 | | |
Total
|
| | | | | | $ | 5,078,100 | | | | | $ | (1,191,457) | | | | | $ | 3,886,643 | | | | | $ | 5,078,100 | | | | | $ | (857,404) | | | | | $ | 4,220,696 | | |
|
($ in thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Term Loan G
|
| | | $ | 2,710,000 | | | | | $ | 2,810,000 | | |
Notes due 2024
|
| | | | 1,560,000 | | | | | | 1,560,000 | | |
Senior PIK Note
|
| | | | 1,178,727 | | | | | | 1,300,000 | | |
Capital lease obligations
|
| | | | 101 | | | | | | 101 | | |
Long-term debt
|
| | | | 5,448,828 | | | | | | 5,670,101 | | |
Premium – Notes due 2024
|
| | | | 10,327 | | | | | | 12,280 | | |
Discount – Term Loan G
|
| | | | (6,195) | | | | | | (7,765) | | |
Discount – Senior PIK Notes
|
| | | | (7,436) | | | | | | (10,596) | | |
Debt issuance costs, net: | | | | | | | | | | | | | |
Term Loan G
|
| | | | (18,332) | | | | | | (22,963) | | |
Notes Due 2024
|
| | | | (21,539) | | | | | | (25,490) | | |
Senior PIK Notes
|
| | | | (8,531) | | | | | | (12,154) | | |
Long-term debt, net
|
| | | $ | 5,397,122 | | | | | $ | 5,603,413 | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||||||||
($ in thousands)
|
| |
Total
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| ||||||||||||||||||
Term Loan G
|
| | | $ | 2,710,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,710,000 | | | | | $ | — | | |
Notes due 2024
|
| | | | 1,560,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,560,000 | | |
Senior PIK Note
|
| | | | 1,178,727 | | | | | | — | | | | | | — | | | | | | 1,178,727 | | | | | | — | | | | | | — | | |
Capital lease obligations
|
| | | | 187 | | | | | | 86 | | | | | | 66 | | | | | | 35 | | | | | | — | | | | | | — | | |
Total contractual obligations
|
| | | $ | 5,448,914 | | | | | $ | 86 | | | | | $ | 66 | | | | | $ | 1,178,762 | | | | | $ | 2,710,000 | | | | | $ | 1,560,000 | | |
| | | | | |
2019
|
| |
2018
|
| ||||||||||||||||||
($ in thousands)
|
| |
Amortization
Period |
| |
Cost
|
| |
Accumulated
Amortization |
| |
Cost
|
| |
Accumulated
Amortization |
| ||||||||||||
Term Loan G
|
| |
84 months
|
| | | $ | 34,654 | | | | | $ | (16,322) | | | | | $ | 34,654 | | | | | $ | (11,691) | | |
Notes due 2024
|
| |
96 months
|
| | | | 34,089 | | | | | | (12,550) | | | | | | 34,089 | | | | | | (8,599) | | |
Senior PIK Note
|
| |
60 months
|
| | | | 14,909 | | | | | | (6,378) | | | | | | 14,909 | | | | | | (2,755) | | |
Revolver G
|
| |
60 months
|
| | | | 971 | | | | | | (692) | | | | | | 971 | | | | | | (495) | | |
| | | | | | | $ | 84,623 | | | | | $ | (35,942) | | | | | $ | 84,623 | | | | | $ | (23,540) | | |
| | |
2019
|
| |
2018
|
| ||||||||||||||||||
($ in thousands)
|
| |
Carrying
Amount |
| |
Fair Value
|
| |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Notes due 2024, net of premium
|
| | | $ | 1,570,327 | | | | | $ | 1,544,976 | | | | | $ | 1,572,280 | | | | | $ | 1,491,988 | | |
Term Loan G, net of discount
|
| | | | 2,703,805 | | | | | | 2,769,645 | | | | | | 2,802,235 | | | | | | 2,898,934 | | |
Senior PIK Note, net of discount
|
| | | | 1,171,291 | | | | | | 1,191,694 | | | | | | 1,289,404 | | | | | | 1,284,024 | | |
Finance lease obligations
|
| | | | 101 | | | | | | 101 | | | | | | 101 | | | | | | 101 | | |
Total Liabilities
|
| | | $ | 5,445,524 | | | | | $ | 5,506,416 | | | | | $ | 5,664,020 | | | | | $ | 5,675,047 | | |
|
($ in thousands)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Current | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | 96,148 | | | | | $ | 103,806 | | | | | $ | 119,317 | | |
State and local
|
| | | | 16,055 | | | | | | 16,785 | | | | | | 13,410 | | |
| | | | | 112,203 | | | | | | 120,591 | | | | | | 132,727 | | |
Deferred | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | (97,326) | | | | | | (92,764) | | | | | | (717,152) | | |
State and local
|
| | | | (14,078) | | | | | | (19,719) | | | | | | (2,087) | | |
| | | | | (111,404) | | | | | | (112,483) | | | | | | (719,239) | | |
Total provision (benefit) from continuing operations
|
| | | $ | 799 | | | | | $ | 8,108 | | | | | $ | (586,512) | | |
| | |
For the Years Ended
December 31, |
| |||||||||||||||
($ in thousands)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Tax at Statutory
|
| | | $ | 2,207 | | | | | $ | 9,310 | | | | | $ | 21,567 | | |
Non-Deductible Expenses
|
| | | | 75 | | | | | | 57 | | | | | | 86 | | |
Equity Compensation Plan of Parent
|
| | | | (3,125) | | | | | | 990 | | | | | | 17,776 | | |
State Taxes (net)
|
| | | | 1,704 | | | | | | 2,617 | | | | | | 9,183 | | |
Other
|
| | | | 87 | | | | | | 9 | | | | | | 53 | | |
Tax Law Changes
|
| | | | (149) | | | | | | (4,875) | | | | | | (635,177) | | |
Total
|
| | | | 799 | | | | | | 8,108 | | | | | | (586,512) | | |
($ in thousands)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Deferred income tax assets: | | | | | | | | | | | | | | | | | | | |
Allowances on trade receivables
|
| | | $ | 147 | | | | | $ | 356 | | | | | $ | 271 | | |
Net operating loss carryforwards
|
| | | | 549 | | | | | | 712 | | | | | | 753 | | |
Accrued expenses and reserves
|
| | | | 2,593 | | | | | | 2,677 | | | | | | 2,992 | | |
Interest limitation carryforward
|
| | | | 73,297 | | | | | | 34,766 | | | | | | — | | |
Leases – right-of-use liability
|
| | | | 7,604 | | | | | | — | | | | | | — | | |
Transaction expenses
|
| | | | 5,859 | | | | | | 6,577 | | | | | | 7,314 | | |
Other
|
| | | | — | | | | | | 560 | | | | | | 579 | | |
Deferred income tax assets
|
| | | | 90,049 | | | | | | 45,648 | | | | | | 11,909 | | |
Deferred income tax liabilities: | | | | | | | | | | | | | | | | | | | |
Intangible assets
|
| | | | 907,039 | | | | | | 982,319 | | | | | | 1,066,684 | | |
Depreciable assets
|
| | | | 39,553 | | | | | | 36,866 | | | | | | 29,671 | | |
Leases – right-of-use asset
|
| | | | 6,957 | | | | | | — | | | | | | — | | |
Debt costs
|
| | | | 5,492 | | | | | | 6,900 | | | | | | 8,348 | | |
Other
|
| | | | 207 | | | | | | 166 | | | | | | 292 | | |
Deferred income tax liabilities
|
| | | | 959,248 | | | | | | 1,026,251 | | | | | | 1,104,995 | | |
Net deferred income tax liabilities
|
| | | $ | 869,199 | | | | | $ | 980,603 | | | | | $ | 1,093,086 | | |
| | |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Risk free rate of return
|
| | | | 1.6% | | | | | | 2.5% | | | | | | 2.6% | | |
Expected volatility
|
| | | | 24.9% | | | | | | 25.0% | | | | | | 25.1% | | |
Expected dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | |
Discount for Lack of Marketability
|
| | | | 20.0% | | | | | | 20.0% | | | | | | — | | |
| | |
For the Years Ended
December 31, |
| |||||||||||||||
($ in thousands)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Cost of services
|
| | | $ | (7,904) | | | | | $ | 242 | | | | | $ | 23,907 | | |
General and administrative
|
| | | | (6,976) | | | | | | 4,475 | | | | | | 26,881 | | |
Total stock-based compensation
|
| | | $ | (14,880) | | | | | $ | 4,717 | | | | | $ | 50,788 | | |
| | |
For the Years Ended
December 31, |
| |||||||||
($ in thousands, except number of shares and per share data)
|
| |
2019
|
| |
2018
|
| ||||||
Increase in income from continuing operations
|
| | | $ | 17,405 | | | | | $ | 15,958 | | |
Increase in net income
|
| | | | 17,405 | | | | | | 15,958 | | |
Weighted average number of shares outstanding – basic and diluted
|
| | | | 10 | | | | | | 10 | | |
Increase in net income per share – basic and diluted
|
| | | $ | 1,740,500 | | | | | $ | 1,595,800 | | |
($ in thousands)
|
| |
Number of
Units |
| |
Weighted
Average Fair Value |
| ||||||
Nonvested at December 31, 2017
|
| | | | 159,722 | | | | | $ | 654.61 | | |
Awarded
|
| | | | — | | | | | | — | | |
Vested
|
| | | | (37,751) | | | | | $ | 546.40 | | |
Forfeited
|
| | | | (3,682) | | | | | $ | 546.40 | | |
Nonvested at December 31, 2018
|
| | | | 118,289 | | | | | $ | 546.40 | | |
Awarded
|
| | | | — | | | | | | — | | |
Vested
|
| | | | (36,687) | | | | | $ | 363.91 | | |
Forfeited
|
| | | | (931) | | | | | $ | 363.91 | | |
Nonvested at December 31, 2019
|
| | | | 80,671 | | | | | $ | 363.91 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
($ in thousands, except number of shares and per share data)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Numerator for earnings per share calculation | | | | | | | | | | | | | | | | | | | |
Net Income
|
| | | $ | 9,710 | | | | | $ | 36,223 | | | | | $ | 648,132 | | |
Denominator for earnings per share calculation | | | | | | | | | | | | | | | | | | | |
Weighted average number of shares outstanding – basic and
diluted |
| | | | 10 | | | | | | 10 | | | | | | 10 | | |
Income per share – basic and diluted: | | | | | | | | | | | | | | | | | | | |
Net income per share – basic and diluted
|
| | | $ | 971,000 | | | | | $ | 3,622,300 | | | | | $ | 64,813,200 | | |
| | |
For the Years Ended
December 31, |
| |||||||||||||||
($ in thousands)
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Revenues
|
| | | $ | 2,373 | | | | | $ | 2,431 | | | | | $ | 2,837 | | |
Total revenues from related parties
|
| | | $ | 2,373 | | | | | $ | 2,431 | | | | | $ | 2,837 | | |
Cost of services
|
| | | $ | (3,753) | | | | | $ | (4,985) | | | | | $ | (5,594) | | |
General and administrative
|
| | | | (288) | | | | | | (222) | | | | | | (346) | | |
Total expense from related parties
|
| | | $ | (4,041) | | | | | $ | (5,207) | | | | | $ | (5,940) | | |
| | |
As of December 31,
|
| |||||||||
($ in thousands)
|
| |
2019
|
| |
2018
|
| ||||||
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,500 | | | | | $ | 2,200 | | |
Total liabilities from related parties
|
| | | $ | 2,500 | | | | | $ | 2,200 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 203,807 | | | | | $ | 21,825 | | |
Trade accounts receivable, net
|
| | | | 53,873 | | | | | | 77,071 | | |
Prepaid expenses and other current assets
|
| | | | 13,902 | | | | | | 5,032 | | |
Prepaid software and maintenance
|
| | | | 7,322 | | | | | | 9,556 | | |
Prepaid taxes
|
| | | | — | | | | | | 2,130 | | |
Deferred transaction costs
|
| | | | 30,217 | | | | | | — | | |
Total current assets
|
| | | | 309,121 | | | | | | 115,614 | | |
Property and equipment, net
|
| | | | 182,270 | | | | | | 177,992 | | |
Operating lease right-of-use asset
|
| | | | 31,851 | | | | | | 29,998 | | |
Goodwill
|
| | | | 4,142,013 | | | | | | 4,142,013 | | |
Client relationships intangible, net
|
| | | | 2,930,082 | | | | | | 3,135,782 | | |
Provider network intangible, net
|
| | | | 638,721 | | | | | | 683,561 | | |
Other intangibles, net
|
| | | | 67,300 | | | | | | 67,300 | | |
Equity investments
|
| | | | 93,222 | | | | | | — | | |
Other assets
|
| | | | 5,447 | | | | | | 8,151 | | |
Total assets
|
| | | $ | 8,400,027 | | | | | $ | 8,360,411 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 38,905 | | | | | $ | 9,565 | | |
Accrued interest
|
| | | | 70,730 | | | | | | 17,966 | | |
Accrued taxes
|
| | | | 17,630 | | | | | | — | | |
Operating lease obligation
|
| | | | 6,811 | | | | | | 9,521 | | |
Accrued compensation
|
| | | | 33,404 | | | | | | 26,311 | | |
Accrued legal
|
| | | | 9,136 | | | | | | 10,038 | | |
Accrued administrative fees
|
| | | | 3,593 | | | | | | 3,861 | | |
Other accrued expenses
|
| | | | 9,883 | | | | | | 8,524 | | |
Total current liabilities
|
| | | | 190,092 | | | | | | 85,786 | | |
Long-term debt
|
| | | | 5,409,451 | | | | | | 5,397,122 | | |
Operating lease obligation
|
| | | | 28,040 | | | | | | 23,086 | | |
Deferred income taxes
|
| | | | 834,840 | | | | | | 869,199 | | |
Total liabilities
|
| | | | 6,462,423 | | | | | | 6,375,193 | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Shareholder interests
|
| | | | | | | | | | | | |
Shareholder shares par value $0.001, 1,000 shares authorized (500 Series A
and 500 Series B), issued and outstanding 5 shares of Series A and 5 shares of Series B as of September 30, 2020 and December 31, 2019 |
| | | | — | | | | | | — | | |
Contributed capital
|
| | | | 1,647,284 | | | | | | 1,347,656 | | |
Retained earnings
|
| | | | 290,320 | | | | | | 637,562 | | |
Shareholders’ equity
|
| | | | 1,937,604 | | | | | | 1,985,218 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 8,400,027 | | | | | $ | 8,360,411 | | |
| | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Revenues
|
| | | $ | 223,517 | | | | | $ | 245,820 | | | | | $ | 682,419 | | | | | $ | 736,497 | | |
Costs of services (exclusive of depreciation and amortization of intangible assets shown below)
|
| | | | 147,866 | | | | | | 41,059 | | | | | | 244,445 | | | | | | 116,191 | | |
General and administrative expenses
|
| | | | 184,164 | | | | | | 25,986 | | | | | | 241,931 | | | | | | 62,513 | | |
Depreciation
|
| | | | 15,262 | | | | | | 14,153 | | | | | | 44,903 | | | | | | 41,723 | | |
Amortization of intangible assets
|
| | | | 83,513 | | | | | | 83,513 | | | | | | 250,540 | | | | | | 250,540 | | |
Total expenses
|
| | | | 430,805 | | | | | | 164,711 | | | | | | 781,819 | | | | | | 470,967 | | |
Operating (loss) income
|
| | | | (207,288) | | | | | | 81,109 | | | | | | (99,400) | | | | | | 265,530 | | |
Interest expense
|
| | | | 82,275 | | | | | | 93,246 | | | | | | 259,290 | | | | | | 286,438 | | |
Interest income
|
| | | | (81) | | | | | | (54) | | | | | | (229) | | | | | | (133) | | |
Gain on repurchase and retirement of Notes
|
| | | | — | | | | | | (18,450) | | | | | | — | | | | | | (18,450) | | |
Net (loss) income before income taxes
|
| | | | (289,482) | | | | | | 6,367 | | | | | | (358,461) | | | | | | (2,325) | | |
(Benefit) provision for income taxes
|
| | | | (1,080) | | | | | | 1,005 | | | | | | (11,219) | | | | | | (191) | | |
(Loss) income from continuing operations
|
| | | | (288,402) | | | | | | 5,362 | | | | | | (347,242) | | | | | | (2,134) | | |
Net (loss) income
|
| | | | (288,402) | | | | | | 5,362 | | | | | | (347,242) | | | | | | (2,134) | | |
Weighted average shares outstanding – Basic and
Diluted: |
| | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | |
Net (loss) income per share – Basic and Diluted:
|
| | | $ | (28,840,200) | | | | | $ | 536,200 | | | | | $ | (34,724,200) | | | | | $ | (213,400) | | |
Comprehensive (loss) income
|
| | | | (288,402) | | | | | | 5,362 | | | | | | (347,242) | | | | | | (2,134) | | |
| | |
Common Stock
Shares |
| |
Common Stock
Amount |
| |
Contributed
Capital |
| |
Retained
Earnings |
| |
Total
|
| |||||||||||||||
Balance as of January 1, 2019
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,362,536 | | | | | $ | 627,852 | | | | | $ | 1,990,388 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | 5,036 | | | | | | — | | | | | | 5,036 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (8,364) | | | | | | (8,364) | | |
Balance as of March 31, 2019
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,367,572 | | | | | $ | 619,488 | | | | | $ | 1,987,060 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | (9,666) | | | | | | — | | | | | | (9,666) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 868 | | | | | | 868 | | |
Balance as of June 30, 2019
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,357,906 | | | | | $ | 620,356 | | | | | $ | 1,978,262 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | 4,321 | | | | | | — | | | | | | 4,321 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5,362 | | | | | | 5,362 | | |
Balance as of September 30, 2019
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,362,227 | | | | | $ | 625,718 | | | | | $ | 1,987,945 | | |
Balance as of January 1, 2020
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,347,656 | | | | | $ | 637,562 | | | | | $ | 1,985,218 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | 9,361 | | | | | | — | | | | | | 9,361 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2,594) | | | | | | (2,594) | | |
Balance as of March 31, 2020
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,357,017 | | | | | $ | 634,968 | | | | | $ | 1,991,985 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | 27,911 | | | | | | — | | | | | | 27,911 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (56,246) | | | | | | (56,246) | | |
Balance as of June 30, 2020
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,384,928 | | | | | $ | 578,722 | | | | | $ | 1,963,650 | | |
Class B Unit expense
|
| | | | — | | | | | | — | | | | | | 262,356 | | | | | | — | | | | | | 262,356 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (288,402) | | | | | | (288,402) | | |
Balance as of September 30, 2020
|
| | | | 10 | | | | | $ | — | | | | | $ | 1,647,284 | | | | | $ | 290,320 | | | | | $ | 1,937,604 | | |
| | |
Nine Months
Ended September 30, 2020 |
| |
Nine Months
Ended September 30, 2019 |
| ||||||
| | | | ||||||||||
Operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (347,242) | | | | | $ | (2,134) | | |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation
|
| | | | 44,903 | | | | | | 41,723 | | |
Amortization of the right-of-use asset
|
| | | | 6,537 | | | | | | 7,120 | | |
Amortization of intangible assets
|
| | | | 250,540 | | | | | | 250,540 | | |
Amortization of debt issuance costs
|
| | | | 11,016 | | | | | | 8,546 | | |
Stock-based compensation
|
| | | | 299,629 | | | | | | (308) | | |
Deferred tax benefit
|
| | | | (34,359) | | | | | | (17,129) | | |
Non-cash interest costs
|
| | | | 1,434 | | | | | | 1,476 | | |
Loss on equity investments
|
| | | | 7,784 | | | | | | — | | |
Gain on repurchase and cancellation of Notes
|
| | | | — | | | | | | (18,450) | | |
Loss on disposal of property and equipment
|
| | | | 77 | | | | | | 152 | | |
Changes in assets and liabilities, net of acquired balances:
|
| | | | | | | | | | | | |
Accounts receivable, net
|
| | | | 23,198 | | | | | | 6,270 | | |
Prepaid expenses and other assets
|
| | | | (34,280) | | | | | | (2,389) | | |
Prepaid taxes
|
| | | | 2,130 | | | | | | (64,897) | | |
Operating lease obligation
|
| | | | (6,082) | | | | | | (7,171) | | |
Accounts payable and accrued expenses and other
|
| | | | 107,016 | | | | | | 64,578 | | |
Net cash provided by operating activities
|
| | | | 332,301 | | | | | | 267,927 | | |
Investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (49,322) | | | | | | (48,020) | | |
Purchases of equity investments
|
| | | | (101,006) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (150,328) | | | | | | (48,020) | | |
Financing activities: | | | | | | | | | | | | | |
Repayments of long term debt
|
| | | | — | | | | | | (100,000) | | |
Repurchase and cancellation of Senior PIK Toggle Notes
|
| | | | — | | | | | | (101,013) | | |
Borrowings on revolving credit facility
|
| | | | 98,000 | | | | | | — | | |
Repayment of revolving credit facility
|
| | | | (98,000) | | | | | | — | | |
Borrowings (payments) on capital leases, net
|
| | | | 9 | | | | | | (130) | | |
Net cash provided by (used in) financing activities
|
| | | | 9 | | | | | | (201,143) | | |
Net change in cash and cash equivalents
|
| | | | 181,982 | | | | | | 18,764 | | |
Cash and cash equivalents at beginning of period
|
| | | | 21,825 | | | | | | 5,014 | | |
Cash and cash equivalents at end of period
|
| | | $ | 203,807 | | | | | $ | 23,778 | | |
Noncash investing and financing activities: | | | | | | | | | | | | | |
Purchases of property, plant and equipment not yet paid
|
| | | $ | 4,327 | | | | | $ | 3,850 | | |
Operating lease right-of-use assets obtained in exchange for operating lease
liabilities |
| | | $ | 10,158 | | | | | $ | 3,908 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid during the period for: | | | | | | | | | | | | | |
Interest
|
| | | $ | (194,074) | | | | | $ | (221,934) | | |
Income taxes, net of refunds
|
| | | $ | (4,415) | | | | | $ | (82,225) | | |
| | |
Three Months Ended September 30,
|
| |
Nine Months Ended September 30,
|
| ||||||||||||||||||
($ in thousands)
|
| |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Network Services
|
| | | $ | 65,323 | | | | | $ | 77,038 | | | | | $ | 200,448 | | | | | $ | 239,799 | | |
Percentage of Savings
|
| | | | 49,721 | | | | | | 61,026 | | | | | | 153,127 | | | | | | 190,748 | | |
PEPM
|
| | | | 13,772 | | | | | | 14,042 | | | | | | 41,643 | | | | | | 43,112 | | |
Other
|
| | | | 1,830 | | | | | | 1,970 | | | | | | 5,678 | | | | | | 5,939 | | |
Analytic-Based Services
|
| | | | 133,119 | | | | | | 141,307 | | | | | | 407,216 | | | | | | 416,105 | | |
Percentage of Savings
|
| | | | 132,541 | | | | | | 141,055 | | | | | | 405,849 | | | | | | 415,580 | | |
PEPM
|
| | | | 578 | | | | | | 252 | | | | | | 1,367 | | | | | | 525 | | |
Payment Integrity Services
|
| | | | 25,075 | | | | | | 27,475 | | | | | | 74,755 | | | | | | 80,593 | | |
Percentage of Savings
|
| | | | 25,054 | | | | | | 27,454 | | | | | | 74,689 | | | | | | 80,530 | | |
PEPM
|
| | | | 21 | | | | | | 21 | | | | | | 66 | | | | | | 63 | | |
Total Revenues
|
| | | $ | 223,517 | | | | | $ | 245,820 | | | | | $ | 682,419 | | | | | $ | 736,497 | | |
|
($ in thousands)
|
| |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Term Loan G
|
| | | $ | 2,710,000 | | | | | $ | 2,710,000 | | |
Notes due 2024
|
| | | | 1,560,000 | | | | | | 1,560,000 | | |
Senior PIK Note
|
| | | | 1,178,727 | | | | | | 1,178,727 | | |
Finance lease obligations
|
| | | | 110 | | | | | | 101 | | |
Long-term debt
|
| | | | 5,448,837 | | | | | | 5,448,828 | | |
Premium – Notes due 2024
|
| | | | 8,776 | | | | | | 10,327 | | |
Discount – Term Loan G
|
| | | | (4,945) | | | | | | (6,195) | | |
Discount – Senior PIK Notes
|
| | | | (5,701) | | | | | | (7,436) | | |
Debt issuance costs, net:
|
| | | | | | | | | | | | |
Term Loan G
|
| | | | (12,600) | | | | | | (18,332) | | |
Notes Due 2024
|
| | | | (18,375) | | | | | | (21,539) | | |
Senior PIK Notes
|
| | | | (6,541) | | | | | | (8,531) | | |
Long- term debt, net
|
| | | $ | 5,409,451 | | | | | $ | 5,397,122 | | |
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||||||||||||||
($ in thousands)
|
| |
Carrying
Amount |
| |
Fair Value
|
| |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity investments
|
| | | $ | 93,222 | | | | | $ | 93,222 | | | | | $ | — | | | | | $ | — | | |
Total Assets
|
| | | $ | 93,222 | | | | | $ | 93,222 | | | | | $ | — | | | | | $ | — | | |
Liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Notes due 2024, net of premium
|
| | | $ | 1,568,776 | | | | | $ | 1,613,640 | | | | | $ | 1,570,327 | | | | | $ | 1,544,976 | | |
Term Loan G, net of discount
|
| | | | 2,705,055 | | | | | | 2,770,910 | | | | | | 2,703,805 | | | | | | 2,769,645 | | |
Senior PIK Note, net of discount
|
| | | | 1,173,026 | | | | | | 1,221,992 | | | | | | 1,171,291 | | | | | | 1,191,694 | | |
Finance lease obligations
|
| | | | 110 | | | | | | 110 | | | | | | 101 | | | | | | 101 | | |
Total Liabilities
|
| | | $ | 5,446,967 | | | | | $ | 5,606,652 | | | | | $ | 5,445,524 | | | | | $ | 5,506,416 | | |
| | |
As of
September 30, 2019 |
| |||
Risk free rate of return
|
| | | | 1.7% | | |
Expected volatility
|
| | | | 23.2% | | |
Expected dividend yield
|
| | | | 0.0% | | |
Discount for lack of marketability
|
| | | | 19.0% | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
($ in thousands)
|
| |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Cost of services
|
| | | $ | 108,777 | | | | | $ | 1,593 | | | | | $ | 126,723 | | | | | $ | (1,324) | | |
General and administrative
|
| | | | 153,579 | | | | | | 2,728 | | | | | | 172,906 | | | | | | 1,016 | | |
Total stock-based compensation
|
| | | $ | 262,356 | | | | | $ | 4,321 | | | | | $ | 299,629 | | | | | $ | (308) | | |
| | |
Number of
Units |
| |
Weighted
Average Fair Value Per Unit |
| ||||||
Nonvested at December 31, 2019
|
| | | | 80,671 | | | | | $ | 363.91 | | |
Awarded
|
| | | | — | | | | | | — | | |
Vested
|
| | | | (18,978) | | | | | $ | 1,775.68 | | |
Forfeited
|
| | | | (1,877) | | | | | $ | 1,775.68 | | |
Nonvested at September 30, 2020
|
| | | | 59,816 | | | | | $ | 1,775.68 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
($ in thousands, except number of shares and per share data)
|
| |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Numerator for (loss) income per share calculation | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (288,402) | | | | | $ | 5,362 | | | | | $ | (347,242) | | | | | $ | (2,134) | | |
Denominator for (loss) income per share calculation
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average number of shares outstanding – basic and diluted
|
| | | | 10 | | | | | | 10 | | | | | | 10 | | | | | | 10 | | |
(Loss) income per share – basic and diluted: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income per share – basic and diluted
|
| | | $ | (28,840,200) | | | | | $ | 536,200 | | | | | $ | (34,724,200) | | | | | $ | (213,400) | | |
|
| | |
Three months ended
September 30, As Adjusted(1) |
| |
Nine months ended
September 30, As Adjusted(1) |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net (loss) income per share – basic and diluted
|
| | | $ | (0.69) | | | | | $ | 0.01 | | | | | $ | (0.84) | | | | | $ | (0.01) | | |
Shares
|
| | | | 415,700,000 | | | | | | 415,700,000 | | | | | | 415,700,000 | | | | | | 415,700,000 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
($ in thousands)
|
| |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Revenues
|
| | | $ | 509 | | | | | $ | 1,209 | | | | | $ | 1,545 | | | | | $ | 2,373 | | |
Total revenues from related parties
|
| | | $ | 509 | | | | | $ | 1,209 | | | | | $ | 1,545 | | | | | $ | 2,373 | | |
Cost of services
|
| | | $ | (500) | | | | | $ | (857) | | | | | $ | (1,666) | | | | | $ | (2,961) | | |
General and administrative
|
| | | | (63) | | | | | | (53) | | | | | | (163) | | | | | | (159) | | |
Total expense from related parties
|
| | | $ | (563) | | | | | $ | (910) | | | | | $ | (1,829) | | | | | $ | (3,120) | | |
($ in thousands)
|
| |
September
30, 2020 |
| |
December
31, 2019 |
| ||||||
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,414 | | | | | $ | 2,500 | | |
Total liabilities from related parties
|
| | | $ | 2,414 | | | | | $ | 2,500 | | |
| | |
Amount paid
or to be paid |
| |||
SEC registration fee ..
|
| | | $ | 549,198 | | |
Printing and engraving expenses ..
|
| | | $ | 100,000 | | |
Legal fees and expenses ..
|
| | | $ | 500,000 | | |
Accounting fees and expenses ..
|
| | | $ | 154,000 | | |
Miscellaneous ..
|
| | | $ | 100,000 | | |
Total ..
|
| | | $ | 1,403,198 | | |
| | | | | | |
Incorporated by Reference
|
| ||||||||||||
|
Exhibit
Number |
| |
Description
|
| |
Form
|
| |
File No.
|
| |
Exhibit
|
| |
Filing
Date |
| |
Filed
Herewith |
|
| 10.13#+ | | | Amended and Restated Employment Agreement, dated May 5, 2016, by and among David Redmond, Polaris Investment Holdings, L.P. and MultiPlan, Inc. | | | 8-K | | | 001-39228 | | | 10.12 | | | October 9, 2020 | | | ||
| 10.14#+ | | | Amended and Restated Employment Agreement, dated May 5, 2016, by and among Dale White, Polaris Investment Holdings, L.P. and MultiPlan, Inc. | | | 8-K | | | 001-39228 | | | 10.13 | | | October 9, 2020 | | | ||
| 10.15# | | | Offer Letter to Jeffrey Doctoroff, dated June 25, 2014 | | | 8-K | | | 001-39228 | | | 10.14 | | | October 9, 2020 | | | ||
| 10.16# | | | Form of Director and Officer Indemnification Agreement | | | 8-K | | | 001-39228 | | | 10.15 | | | October 9, 2020 | | | ||
| 14.1 | | | Code of Business Conduct and Ethics of MultiPlan Corporation, effective October 8, 2020 | | | 8-K | | | 001-39228 | | | 14.1 | | | October 9, 2020 | | | ||
| 16.1 | | | Letter from Marcum LLP, dated October 8, 2020 | | | 8-K | | | 001-39228 | | | 16.1 | | | October 9, 2020 | | | ||
| 16.2 | | | Letter from Marcum LLP, dated November 16, 2020 | | | | | | | | | | | | | | |
X
|
|
| 21.1 | | | List of Subsidiaries | | | 8-K | | | 001-39228 | | | 21.1 | | | October 9, 2020 | | | ||
| 23.1 | | | Consent of Simpson Thacher & Bartlett LLP (included in Exhibit 5.1) | | | | | | | | | | | | | | | | |
| 23.2 | | | Consent of PricewaterhouseCoopers LLP | | | | | | | | | | | | | | |
X
|
|
| 23.3 | | | Consent of Marcum LLP | | | | | | | | | | | | | | |
X
|
|
| 24.1 | | | Power of Attorney | | | S-1 | | | 333-249779 | | | 24.1 | | | October 30, 2020 | | | | |
| 101.INS | | | XBRL Instance Document | | | | | | | | | | | | | | |
X
|
|
| 101.SCH | | | XBRL Taxonomy Extension Schema Document | | | | | | | | | | | | | | |
X
|
|
| 101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document | | | | | | | | | | | | | | |
X
|
|
| 101.DEF | | | 101.DEF XBRL Taxonomy Extension Definition Linkbase Document | | | | | | | | | | | | | | |
X
|
|
| 101.LAB | | | XBRL Taxonomy Extension Label Linkbase Document | | | | | | | | | | | | | | |
X
|
|
| 101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document | | | | | | | | | | | | | | |
X
|
|
|
Signature
|
| |
Title
|
| |
Date
|
|
|
*
Mark Tabak
|
| | Chief Executive Officer (Principal Executive Officer) and Chairperson of the Board of Directors | | |
November 16, 2020
|
|
|
*
David Redmond
|
| |
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
| |
November 16, 2020
|
|
|
*
Gerald Kozel
|
| |
Chief Accounting Officer
(Principal Accounting Officer) |
| |
November 16, 2020
|
|
|
*
Allen R. Thorpe
|
| | Lead Independent Director | | |
November 16, 2020
|
|
|
*
Glenn R. August
|
| | Director | | |
November 16, 2020
|
|
|
*
Richard A. Clarke
|
| | Director | | |
November 16, 2020
|
|
|
*
Anthony Colaluca
|
| | Director | | |
November 16, 2020
|
|
|
*
Paul D. Emery
|
| | Director | | |
November 16, 2020
|
|
|
*
Michael Klein
|
| | Director | | |
November 16, 2020
|
|
|
*
P. Hunter Philbrick
|
| | Director | | |
November 16, 2020
|
|
|
*
Bill Veghte
|
| | Director | | |
November 16, 2020
|
|
|
*By:
/s/ Jeffrey Doctoroff
Jeffrey Doctoroff
As Attorney-in-Fact |
| | |
Exhibit 16.2
November 16, 2020
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
Commissioners:
We have read the statements made by MultiPlan Corporation (formerly Churchill Capital Corp III) under the Change in Registrant’s Certifying Accountant of its Amendment No. 1 to Form S-1 (File No. 333-249779) dated November 16, 2020. We agree with the statements concerning our Firm in such Amendment No. 1 to Form S-1; we are not in a position to agree or disagree with other statements of MultiPlan Corporation contained therein.
Very truly yours,
/s/ Marcum llp
Marcum llp
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Amendment No. 1 to the Registration Statement on Form S-1 of MultiPlan Corporation of our report dated July 30, 2020 relating to the financial statements of MultiPlan Corporation (formerly known as Polaris Parent Corp.), which appears in this Registration Statement. We also consent to the reference to us under the heading “Experts” in such Registration Statement.
/s/ PricewaterhouseCoopers LLP
Chicago, IL
November 16, 2020
Exhibit 23.3
Independent Registered Public Accounting Firm’s Consent
We consent to the inclusion in this Registration Statement of Multiplan Corporation on Amendment No. 1 to Form S-1 (File No. 333-249779) of our report dated January 29, 2020, except for Note 8, as to which the date is February 14, 2020, which includes an explanatory paragraph as to the Company’s ability to continue as a going concern with respect to our audit of the financial statements of Churchill Capital Corp. III as of December 31, 2019 and for the period from October 30, 2019 (inception) through December 31, 2019, which report appears in the Prospectus, which is part of this Registration Statement. We were dismissed as auditors on November 13, 2020 and, accordingly, we have not performed any audit or review procedures with respect to any financial statements appearing in such Prospectus for the periods after the date of our dismissal. We also consent to the reference to our Firm under the heading “Experts” in such Prospectus.
/s/ Marcum llp
Marcum llp
New York, NY
November 16, 2020