Change Healthcare Inc (NASDAQ: CHNG) stock surged over 11.9% in the pre-market session of 14th August, 2019 (as of 7:39 am GMT-4; Source: Google finance) on the decent first quarter of FY 20 since they went public in June. Net cash provided by operating activities was $84.5 million for three months ended June 30, 2019, a decrease of 55.7% from $190.9 million for the three months ended June 30, 2018. Adjusted free cash flow was $60.8 million, a decrease of $138.5 million year over year. Change Healthcare LLC has ended the first quarter with over $27.4 million of cash, cash equivalents and restricted cash and approximately $5,790.6 million of total long-term debt. Subsequent to quarter-end, Change Healthcare Inc. closed an initial public offering of common stock and a concurrent offering of tangible equity units providing approximately $888 million in net proceeds and redeemed $805 million in Term Loan Facility obligations. Further, as of June 30, 2019, no amounts had been drawn under the senior secured revolving line of credit. On July 3, 2019, the company amended its Revolving Credit Facility to increase the current commitment amount from $500 million to $785 million and to extend the maturity to July 3, 2024.
CHNG in the first quarter of FY 20 has reported the adjusted earnings per share of 28 cents, while adjusted revenue growth was 35.9 percent to $855.6 million in the first quarter of FY 20, beating the analysts’ estimates for revenue of $796 million.
For the Second Quarter Fiscal 2020 Solutions Revenue is expected to be in the range of $710 million – $730 million, Adjusted EBITDA is expected to be in the range of $210 million – $220 million and Adjusted Net Income is expected to be in the range of $80 million – $90 million.
For FY 20, CHNG expects Solutions Revenue growth of 1-2% including the impact of the sale of the extended care business and planned contract exits in the Technology-enabled Services business. Adjusted EBITDA growth is expected to be in the range of 6% – 8% and Adjusted Net Income Growth is expected to be in the range of 9% -11%.
For the Fiscal year 2021, the Company expects Solutions Revenue growth is expected to be in the range of 4%-6% and Adjusted EBITDA growth is expected to be in the range of 6%-8%.