September 27, 2016 7:42 PM ET

Health Care Technology

Company Overview of Change Healthcare Holdings, Inc.

Company Overview

Change Healthcare Holdings, Inc., through its subsidiaries, provides software and analytics, network solutions, and technology-enabled services for healthcare market. The company operates in three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment offers payment and reimbursement optimization and decision support solutions that include revenue cycle technology, revenue optimization, payment integrity, electronic payment, risk adjustment, quality reporting, data and analytics, and engagement solutions. The Network Solutions segment provides network solutions offerings comprising financial and administrative information exch...

3055 Lebanon Pike

Suite 1000

Nashville, TN 37214

United States

Founded in 2006

5,000 Employees

Phone:

615-932-3000

Key Executives for Change Healthcare Holdings, Inc.

Chief Executive Officer, President and Director
Age: 55
Chief Financial Officer and Executive Vice President
Age: 58
Executive Vice President of Operations
Executive Vice President of Change Healthcare, Chief Executive Officer of Altegra Health and President of Altegra Health
Chief Information Officer and Executive Vice President of Research & Development
Age: 54
Compensation as of Fiscal Year 2016.

Change Healthcare Holdings, Inc. Key Developments

Change Healthcare Holdings, Inc. Announces Unaudited Consolidated Financial Results for the Second Quarter and Six Months Ended June 30, 2016; Announces Impairment of Long-Lived Assets

Change Healthcare Holdings, Inc. announced unaudited consolidated financial results for the second quarter and six months ended June 30, 2016. Second quarter solutions revenue increased 22.5% to $323.3 million from $263.8 million for the comparable period in 2015. This increase in solutions revenue as compared to the prior year period was primarily due to the Altegra Health acquisition in August 2015 and continued growth in electronic payments and payment integrity solutions. These gains were partially offset by lower volumes in communication and payment print solutions and eligibility and enrollment solutions. Second quarter net loss was $13.3 million as compared to net income of $7.9 million for the comparable period in Second quarter net loss was primarily impacted by increased amortization and interest expense as a result of the Altegra Health acquisition and related financing, as well as costs related to the pending MTS transaction. The prior year period net income benefitted from changes in state tax laws. Second quarter Non-GAAP Adjusted EBITDA increased 14.5% to $112.1 million, or 34.7% of solutions revenue, from $97.9 million, or 37.1% of solutions revenue, for the comparable period in 2015. This increase in Adjusted EBITDA compared to the prior year period was primarily due to business growth, including the impact of acquisitions. Total revenue was $400,892,000 against $354,801,000 for the same period of last year. Operating income was $22,559,000 against $31,966,000 for the same period of last year. Loss before income tax provision was $24,005,000 against $8,019,000 for the same period of last year. Purchases of property and equipment was $38,078,000 against $24,654,000 for the same period of last year. Purchases of technology-based intangible assetswas $41,109,000 against $90,000 for the same period of last year. EBITDA was $84,415,000 against $79,631,000 for the same period of last year. Year-to-date solutions revenue was $634.8 million, an increase of 21.6%, compared to $522.2 million for the same period in 2015. Year-to-date net loss was $28.8 million compared to net income of $2.2 million for the same period in 2015. Year-to-date Non-GAAP Adjusted EBITDA increased 12.4% to $208.4 million, or 32.8% of solutions revenue, from $185.5 million, or 35.5% of solutions revenue, for the comparable period in 2015. Total debt was $2.8 billion as of June 30, 2016 and December 31, 2015. Cash flow provided by operations totaled $40.1 million for the six months ended June 30, 2016 compared to $123.6 million for the same period in the prior year. Cash flow from operations for the six months ended June 30, 2016 was negatively impacted by increased interest payments as a result of the Altegra Health acquisition and related financing, delays in the collection of receivables as a result of customer administrative requirements following the corporate rebranding to Change Healthcare completed in the fourth quarter of 2015 and the timing of collections and related disbursements. Total revenue was $795,100,000 against $700,496,000 for the same period of last year. Operating income was $40,720,000 against $56,169,000 for the same period of last year. Loss before income tax provision was $52,466,000 against $19,809,000 for the same period of last year. EBITDA was $163,703,000 against $153,963,000 for the same period of last year. Purchases of property and equipment was $38,078,000 against $24,654,000 for the same period of last year. Purchases of technology-based intangible assetswas $41,109,000 against $90,000 for the same period of last year. For the quarter, impairment of long-lived assets was $165,000 against $122,000 for the same period of last year.

Change Healthcare Holdings, Inc., McKesson Corporation - M&A Call

To discuss on McKesson Corporation and Change Healthcare Holdings, Inc. creation of a new healthcare information technology company

McKesson Corporation and Change Healthcare Holdings, Inc. Announce Executive Appointments for New Company

McKesson Corporation and Change Healthcare Holdings, Inc. announced the creation of a new healthcare information technology company. The entity will combine substantially all of Change Healthcare’s business and the majority of McKesson Technology Solutions (MTS) into a new company. McKesson will own approximately 70% of the new company, with the remaining equity stake held by Change Healthcare stockholders, which includes Blackstone and Hellman & Friedman. McKesson and Change Healthcare stockholders will jointly govern the new company and John H. Hammergren will serve as chairman. Neil de Crescenzo will serve as chief executive officer, joined by an experienced management team comprised of leaders from both McKesson and Change Healthcare.

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