CHANGE HEALTHCARE INC (NASDAQ:CHNG) Q3 2020 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:00 am ET

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CHANGE HEALTHCARE INC (NASDAQ:CHNG) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Change Healthcare Inc. Q3 Fiscal Year 2020 Earnings Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to Evan Smith, Vice President of Investor Relations. Please proceed, sir.

Executive
Evan Smith

Thank you, operator. Good morning, and welcome to Change Healthcare's earnings call for the third quarter of fiscal 2020, which ended on December 31, 2019. I'm joined today by Neil de Crescenzo, Change Healthcare's President and CEO; and Fredrik Eliasson, Change Healthcare's Executive Vice President and Chief Financial Officer. First, Neil will provide a business update, then Fredrik will review the financial results for the quarter, followed by closing remarks from Neil. After that, we'll open up the call for your questions. Before we begin, I would like to remind everyone that comments included in today's conference call include forward-looking statements. Actual results may differ materially from the results suggested by the comments for several reasons, which are discussed in more detail in the company's SEC filings. Except as required by law, Change Healthcare assumes no obligation to update any forward-looking statements or information. Please also note that, where appropriate, we will refer to non-GAAP financial measures to evaluate our business. Reconciliations for non-GAAP financial measures to GAAP financial measures are included in our earnings release and the appendix of the supplemental slides accompanying this presentation. I want to remind everyone that copies of our earnings release and the supplemental slides accompanying this conference call are available in the Investor Relations section of our website at www.changehealthcare.com.

With that, I'll turn the call over to Neil. Neil?

Executive
Neil de Crescenzo

Thank you, Evan. Good morning, everyone. I'm pleased to report third quarter solutions revenue of $753 million and adjusted EBITDA of $232 million, another strong quarter. During the quarter, the 14,000 team members of Change Healthcare continue to execute on our strategic initiatives to deliver organic growth across our leading franchises, transform our RCM Services and imaging businesses, and focus on operational excellence to further improve margins and free cash flow. As a result of the strength of our performance, during the quarter, we paid down an additional $150 million of our debt, in line with our commitment to reduce our leverage. The major opportunities in healthcare cross thee dimensions, how efficiently healthcare can be delivered, how we can improve outcomes and how we, as consumers, need to pay for it. Given Change Healthcare sits at the center of the ecosystem, we will continue to play a key role in the digital transformation of the U.S. healthcare market, delivering new, innovative solutions to address these critical areas. We will continue to invest in and deliver advanced solutions in areas like payment accuracy, risk adjustment and quality and revenue excellence, as well as expand our reach with new solutions that address the needs of consumers and empower them with information to improve price transparency, affordability and their overall healthcare