January 20, 2017 2:44 AM 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. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016 Reports Impairment of Long-Lived Assets for the Third Quarter Ended September 30, 2016

Change Healthcare Holdings, Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported total revenue was $381.466 million compared to $377.785 million a year ago. Operating income was $15.254 million compared to operating loss of $2.303 million a year ago. Income before income tax provision was $31.28 million compared to loss before income tax benefit of $43.184 million a year ago. Net income was $2.485 million compared to net loss of $32.906 million a year ago. EBITDA was $25.171 million compared to $13.607 million a year ago. Adjusted EBITDA was $106.324 million compared to $101.781 million a year ago. For the nine months, the company reported total revenue was $1,176.567 million compared to $1,078.281 million a year ago. Operating income was $55.976 million compared to $53.868 million a year ago. Loss before income tax provision was $83.744 million compared to $62.992 million a year ago. Net loss was $26.306 million compared to $30.728 million a year ago. Net cash provided by operating activities was $145.012 million compared to $152.343 million a year ago. Purchases of property and equipment was $53.83 million compared to $39.175 million a year ago. Purchases of technology-based intangible assets was $43.495 million compared to $3.676 million a year ago. EBITDA was $69.844 million compared to $45.092 million a year ago. Adjusted EBITDA was $314.702 million compared to $287.231 million a year ago. The company reported Impairment of long-lived assets were $20,000 compared to $219,000 a year ago.

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

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