Change Healthcare Inc. (CHNG) on Q3 2021 Results - Earnings Call Transcript
Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Change Healthcare, Inc. Third Quarter Fiscal Year 2021 Earnings Conference Call. I would now like to hand the conference over to your host today, Evan Smith, Head of Investor Relations. Please go ahead.
Evan Smith: Thank you, operator. Good morning, and welcome to Change Healthcare's earnings call for the third quarter of fiscal 2021, which ended on December 31, 2020. 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, and then Fredrik will provide a review of the financial results for the quarter, followed by closing remarks from Neil. The presentations which will be referenced in the formal remarks is posted on the IR website.
Neil de Crescenzo: Thank you, Evan. Good morning, everyone. While COVID-19 continues to impact our daily lives, I hope everyone remains safe and healthy. Today, I will review Change Healthcare's performance in the third quarter, which was driven by sequential improvement in health care utilization as well as positive trends in sales activity across our platform. I will provide insights into our ongoing new business successes, our continued execution on delivering innovation and value to our customers and the strategic initiatives we completed to accelerate growth and expands our opportunities. Before I get into the details of the quarter, let me provide you with some background on the pending combination of Change Healthcare and OptumInsight which we announced on January 6. Under the terms of the agreement, Change Healthcare shareholders will receive $25.75 in cash for each share of common stock. The consideration per share represents a premium of approximately 41% over the closing stock price on January 5, 2021 and an approximately 98% premium over the $13 IPO share price on June 26, 2019. The transaction, which is currently expected to be completed in the second half of calendar 2021 is subject to the satisfaction of customary closing conditions, including the receipt of applicable regulatory and stockholder approvals. We are excited by the opportunity to unite 2 technology and service companies focused on serving health care. The combined capabilities will more effectively connect and simplify core clinical, administrative and payment processes, resulting in better health outcomes and experiences for everyone at lower costs.
Fredrik Eliasson: Thank you, Neil. Good morning, everyone. I'm happy to report a strong third quarter, underscoring the central role we play in the health care system as health care activity continued to improve throughout the quarter. We believe the recovery in activity levels was a result of the trend towards more normal underlying demand and some catch-up of previously deferred visits and procedures. As Neil mentioned, we continue to see underlying strength in our sales efforts across the platform, including positive market reception for our newly introduced solutions.
End of Q&A: Thank you, Fredrik. Over the past several years, Change Healthcare has worked diligently to develop and deliver innovative and transformative solutions for care providers, health care payers and patients in order to improve clinical, financial and care outcomes so that everyone in the health care system can thrive. I am incredibly proud of what our company has accomplished. And I am grateful to our employees for their hard work, dedication and contributions. As the quarter demonstrates, we continue to deliver increased value to our payer and provider customers as well as consumers. This transaction with OptumInsight, when completed, will mark the start of an exciting new chapter for Change Healthcare, bringing together highly-complementary cultures and teams to realize the long-term value and benefits that this combination will deliver. Thanks to the dedication of the Change Healthcare team members, I remain confident that we will continue to deliver innovation and value to our customers and the communities we serve, helping them navigate the current market environment and future opportunities to lower cost, enhance access and improve outcomes. Thank you.
