Change Healthcare Inc. (Nasdaq: CHNG), a leading independent healthcare technology company, today announced increased financial guidance for the second quarter of fiscal 2021 as summarized below.
$ in Millions except per share data
$670 - $690
$690 - $710
$180 - $190
$200 - $215
Adjusted Earnings Per Share
$0.20 - $0.23
$0.24 - $0.28
The Company's updated guidance reflects slightly higher than expected healthcare utilization trends in the current period primarily impacting the Technology-Enabled Services and Network Solutions businesses. While favorable trends are expected to have a positive impact on the company’s year-to-date performance, the company continues to assume a gradual improvement of healthcare utilization throughout the remainder of the fiscal year.
"The increase in our earnings guidance for our second quarter reflects continued improvement in healthcare utilization in the U.S., and we believe it demonstrates our ability to effectively manage our business during the pandemic while ensuring we meet the critical needs of our customers and partners," said Neil de Crescenzo, president and chief executive officer. "With heightened awareness and demand for solutions that improve efficiency, reduce waste, and enhance transparency, Change Healthcare is well positioned to address customer needs and accelerate growth and performance."
About Change Healthcare
Change Healthcare (Nasdaq: CHNG) is a leading independent healthcare technology company, focused on insights, innovation, and accelerating the transformation of the U.S. healthcare system through the power of the Change Healthcare Platform. We provide data and analytics-driven solutions to improve clinical, financial, administrative, and patient engagement outcomes in the U.S. healthcare system.
Learn more at changehealthcare.com.
This press release contains "forward-looking statements" within the meaning of federal securities laws. Any statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including, but not limited to, our second quarter fiscal 2021 guidance, the supplemental information and assumptions regarding fiscal 2021, the potential length and impact of COVID-19 and descriptions of our business plans and strategies. These statements often include words such as "anticipate," "expect," "suggest," "plan," "believe," "intend," "estimate," "target," "project," "should," "could," "would," "may," "will," "forecast," "outlook," "potential," "continues," "seeks," "predicts," and the negatives of these words and other similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, including, but not limited to, the uncertainty around the length and severity of the COVID-19 pandemic; the ongoing impact of the COVID-19 pandemic on our operations and financial results, on our customers and on national, state and local economies; and new risks that may arise due to responses to the pandemic by the government, our customers and us; and other factors disclosed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 in the section entitled "Risk Factors," as such factors may be updated from time to time in our periodic filings with the SEC, and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on any forward-looking statements in this release. All forward-looking statements are based on information currently available to Change Healthcare and are qualified in their entirety by this cautionary statement. The statements herein speak only as of the date such statements were first made. Except to the extent required by law, Change Healthcare assumes no obligation to update or revise any such forward-looking statements or other statements included in this release.
Non-GAAP Financial Measures
In the company’s press releases, prepared remarks, conference calls, slide presentations and webcasts, there may be use or discussion of non-GAAP financial measures. We believe such measures provide supplemental information to investors with regard to our operating performance and assist investors’ ability to compare our financial results to those of other companies in the same industry. These non-GAAP financial measures are calculated and presented on the basis of methodologies other than in accordance with GAAP. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP and may be defined and calculated differently by others in the same industry.
A reconciliation of the forward-looking second-quarter 2021 adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, Change Healthcare is unable to assess the probable significance of the unavailable information, which could have a material impact on its future financial results in accordance with generally accepted accounting principles in the United States of America ("GAAP").
Evan Smith, CFA