Change Healthcare Inc (CHNG) 2023 Q1 法說會逐字稿

Good morning. Thank you for standing by, and welcome to the Change Healthcare's earnings call for the first quarter of fiscal year 2023. I would now like to hand the conference over to your host today, David Elliott, Change Healthcare Inc.'s Vice President, Enterprise Strategy and Investor Relations. Please go ahead.

早安.感謝您的支持，歡迎參加 Change Healthcare 2023 財年第一季財報電話會議。現在，我想將會議交給今天的主持人，Change Healthcare Inc. 的企業策略和投資者關係副總裁 David Elliott。請繼續。

Good morning, and welcome to Change Healthcare's Earnings Call for the first quarter of fiscal 2023, which ended on June 30, 2022. 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.

早安，歡迎參加 Change Healthcare 2023 財年第一季（於 2022 年 6 月 30 日結束）收益電話會議。今天與我一起參加會議的還有 Change Healthcare 總裁兼執行長 Neil de Crescenzo；以及 Change Healthcare 的執行副總裁兼財務長 Fredrik Eliasson。

First, Neil will provide a business update, and then Fredrik will review the financial results for the quarter, followed by closing remarks from Neil. Given the pending transaction with UnitedHealth Group, we will not be taking questions or providing financial guidance.

首先，尼爾 (Neil) 將提供業務更新，然後弗雷德里克 (Fredrik) 將回顧本季度的財務結果，最後由尼爾 (Neil) 致閉幕詞。鑑於與聯合健康集團 (UnitedHealth Group) 的交易尚未完成，我們將不會回答問題或提供財務指導。

Before we begin, I would like to remind you that the 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.

在我們開始之前，我想提醒您，今天的電話會議中包含的評論包括前瞻性陳述。由於多種原因，實際結果可能與評論所暗示的結果有重大差異，這些原因在該公司的美國證券交易委員會 (SEC) 文件中有更詳細的討論。

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 in the appendix to 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.

除法律要求外，Change Healthcare 不承擔更新任何前瞻性聲明或資訊的義務。另請注意，在適當的情況下，我們將參考非公認會計準則財務指標來評估我們的業務。非 GAAP 財務指標與 GAAP 財務指標的對帳包含在本簡報的補充投影片附錄中的收益報告中。我想提醒大家，我們的收益報告副本和本次電話會議的補充幻燈片可在我們網站 www.changehealthcare.com 的投資者關係部分找到。

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

說完這些，我會把電話轉給尼爾。尼爾？

Thank you, David. Good morning, everyone, and thank you for joining us. Our first quarter results demonstrate the underlying strength and momentum of our business. We were faced with difficult year-over-year comparables in the quarter, created by elevated COVID-related activities last year and customer attrition related to the extended UHG merger process.

謝謝你，大衛。大家早安，感謝大家的收看。我們第一季的業績證明了我們業務的潛在實力和發展勢頭。本季度，我們面臨著與去年同期相比困難的業績，這是由於去年與 COVID 相關的活動增加以及與 UHG 合併流程延長相關的客戶流失造成的。

Despite these headwinds, we grew revenue in the quarter and positioned ourselves well to deliver on our 2% to 4% revenue growth expectations for the year. We continue to invest in innovative solutions to create value for our payer, provider and consumer customers.

儘管面臨這些不利因素，我們本季的營收仍然成長，並已做好準備，實現全年 2% 至 4% 的營收成長預期。我們持續投資創新解決方案，為我們的付款人、提供者和消費者客戶創造價值。

Along with our customers and partners, we remain focused on lowering cost, enhancing access and improving outcomes for the benefit of everyone in the health care system. Now let me provide you with some financial highlights for the quarter and insights into our continued success advancing our solutions to deliver increased value for all health care stakeholders.

我們與客戶和合作夥伴一道，始終致力於降低成本、增強可及性和改善結果，以造福醫療保健系統中的每個人。現在，讓我向您提供本季度的一些財務亮點，以及我們繼續成功推進解決方案以為所有醫療保健利益相關者提供更高價值的見解。

Solutions revenue, adjusted EBITDA and free cash flow were $831 million, $280 million and $4 million, respectively, in the first quarter. This represents year-over-year solutions revenue growth of 1.8% and an adjusted EBITDA decline of 0.9%. Our performance reflects continued new bookings momentum, existing customers expanding their business with Change Healthcare, new product introductions and new business initiatives, partially offset by lower revenue from COVID-related activities, customer attrition related to the extended UHG merger process and our continued investments to support business initiatives.

第一季度，解決方案收入、調整後 EBITDA 和自由現金流分別為 8.31 億美元、2.8 億美元和 400 萬美元。這意味著解決方案營收年增 1.8%，調整後 EBITDA 下降 0.9%。我們的業績反映了持續的新預訂動能、現有客戶透過 Change Healthcare 擴展業務、新產品的推出和新的業務計劃，但部分被 COVID 相關活動的收入下降、與延長的 UHG 合併流程相關的客戶流失以及我們為支持業務計劃而進行的持續投資所抵消。

As the combined year-over-year challenges from COVID-related volumes and the UHG merger-related attrition start to subside in the third quarter, we expect significantly stronger growth starting in the fourth quarter and throughout our next fiscal year, starting in April 2023, our fiscal year '24. Fredrik will provide more details on our financial performance shortly.

隨著與 COVID 相關的業務量和與 UHG 合併相關的人員流失帶來的同比挑戰在第三季度開始消退，我們預計從第四季度開始以及從 2023 年 4 月開始的下一個財年（即我們的 24 財年）將出現明顯更強勁的增長。 Fredrik 很快就會提供有關我們財務表現的更多詳細資訊。

With regards to the pending transaction with UnitedHealth Group, we remain firm in our belief in the benefits for U.S. health care of Change Healthcare becoming part of Optum, and we are committed to contesting the legal challenge to this merger. We and UnitedHealth Group are currently detailing the benefits of this combination at a 2-week trial that began earlier this week on August 1.

關於與聯合健康集團 (UnitedHealth Group) 的未決交易，我們堅信 Change Healthcare 成為 Optum 的一部分將為美國醫療保健帶來益處，並且我們致力於應對此次合併的法律挑戰。我們和聯合健康集團目前正在本週稍早（8 月 1 日）開始的為期兩週的試驗中詳細說明這種組合的益處。

If the merger closes, we expect that Change Healthcare shareholders will receive $27.75 in cash, comprised of the $25.75 per share deal price along with a special cash dividend of $2 per share. These payments will only occur if the merger closes, and the dividend is subject to final approval of Change Healthcare's Board at the time of the closing. In the event the merger is unable to be completed due to the court's decision, UnitedHealth Group will pay a $650 million fee to Change Healthcare. Now let me provide an update on our success across our segments, starting with our Software and Analytics segment.

如果合併完成，我們預計 Change Healthcare 股東將獲得 27.75 美元現金，其中包括每股 25.75 美元的交易價格以及每股 2 美元的特別現金股息。這些付款僅在合併完成後才會發生，且股息須在合併結束時獲得 Change Healthcare 董事會的最終批准。如果由於法院的判決導致合併無法完成，聯合健康集團將向 Change Healthcare 支付 6.5 億美元的費用。現在，讓我介紹一下我們各個部門的成功，首先從軟體和分析部門開始。

We continue to see opportunities across this segment as payers, providers and partners take advantage of our high ROI solutions and realize the benefits of our data, AI models and workflow capabilities. In Payment Accuracy, we again closed several multimillion dollar deals, including claims extend secondary editing deals with 2 Blues plan customers. These customers both recognize the value that Change Healthcare can provide in quickly developing and deploying new content via secondary editing to provide them significant savings.

隨著付款人、提供者和合作夥伴利用我們的高投資回報率解決方案並實現我們的數據、人工智慧模型和工作流程功能的優勢，我們繼續看到這一領域的機會。在支付準確性方面，我們再次完成了幾筆數百萬美元的交易，包括與 2 位 Blues 計劃客戶達成的索賠延長二次編輯交易。這些客戶都認識到 Change Healthcare 可以透過二次編輯快速開發和部署新內容所提供的價值，從而為他們節省大量成本。

We also signed a multimillion dollar prepayment insight and review deal with a high-growth, technology-enabled health plan with over 1 million members. With prepay insight and review, we help customers reduce waste in the payment process by identifying improper payments before they are paid. Our risk adjustment and quality solutions continue to be a strong offering in the market as they help customers close gaps in care more rapidly to improve health outcomes and lower costs.

我們還與一家擁有超過 100 萬會員的高成長、技術支援的健康計劃簽署了價值數百萬美元的預付款洞察和審查協議。透過預付款洞察和審查，我們可以幫助客戶在付款前識別不當付款，從而減少付款過程中的浪費。我們的風險調整和品質解決方案繼續在市場上佔據強勢地位，因為它們可以幫助客戶更快地縮小護理差距，從而改善健康結果並降低成本。

In Q1, we signed a medical record retrieval and clinical review deal worth over $5 million annually with one of the largest managed care organizations in the country. Continuing our innovation in this field, we also introduced Community Connector in Q1, a new service for payers who want to assess their members' social determinants of health needs and refer members to community-based organizations to provide social service program assistance. This product reimagines how whole person-focused services such as home environment, housing, education, access to food and transportation can work together to improve people's health, well-being and quality of life.

在第一季度，我們與國內最大的管理式醫療機構之一簽署了一份每年價值超過 500 萬美元的醫療記錄檢索和臨床審查協議。我們繼續在該領域進行創新，也在第一季度推出了社區連接器，這是一項新服務，面向希望評估其成員的健康需求社會決定因素並將成員轉介到社區組織以提供社會服務計劃援助的付款人。該產品重新構想了家庭環境、住房、教育、食品和交通等以人為本的整體服務如何共同改善人們的健康、福祉和生活品質。

In our RCM Technology business, we had a strong bookings quarter for both our clearance and assurance solutions, including a large new deal with a health system in Hawaii. Last quarter, we announced a partnership with Luma Health to develop new patient engagement solutions. We have now launched our patient engagement suite, combining Luma Health's patient success platform solution with Change Healthcare's revenue cycle management solutions to give patients and providers a cohesive experience that spans the entire health care journey.

在我們的 RCM 技術業務中，我們的清關和保證解決方案的預訂量在本季度表現強勁，其中包括與夏威夷一家醫療系統達成的一項大型新交易。上個季度，我們宣布與 Luma Health 合作開發新的患者參與解決方案。我們現已推出患者參與套件，將 Luma Health 的患者成功平台解決方案與 Change Healthcare 的收入週期管理解決方案相結合，為患者和提供者提供涵蓋整個醫療保健過程的統一體驗。

As evidenced by a large and growing pipeline, the market is excited about this vision to improve the patient and provider experience by keeping patients connected to all aspects of their care and providing communication between staff, providers and patients.

從不斷增長的龐大產品線可以看出，市場對這一願景感到興奮，即透過讓患者與護理的各個方面保持聯繫，並在員工、提供者和患者之間提供溝通，改善患者和提供者的體驗。

With our clinical decision support solutions, we continue to provide innovative ways for clinicians to leverage real-time, evidence-based guidance as they serve patients. We brought 3 new customers live on InterQual AutoReview in Q1, representing 25 facilities and 6,500 beds. We've also seen continued momentum with our CareSelect lab decision support product with 3 new sales in the quarter. Clients are seeing laboratory decision support as a key tool in their expense reduction initiatives.

透過我們的臨床決策支援解決方案，我們繼續為臨床醫生提供創新的方法，讓他們能夠在為患者服務時利用即時的、基於證據的指導。我們在第一季為 InterQual AutoReview 帶來了 3 個新客戶，涉及 25 個設施和 6,500 個床位。我們也看到 CareSelect 實驗室決策支援產品持續保持良好勢頭，本季新增 3 款產品銷售量。客戶將實驗室決策支援視為其削減開支計劃的關鍵工具。

Moving on to our Network segment. We've seen continued year-over-year growth in transaction volumes across our core networks, driven by new customers and expansions of our business with existing customers, offset by customer attrition and lower COVID-related claims volume. Q1 was a strong new bookings quarter, particularly in our pharmacy network business, where we signed several multimillion dollar deals, including a deal worth nearly $5 million annually with an innovative technology company focused on reducing wasteful pharmacy and patient spending.

繼續我們的網路部分。我們看到核心網路的交易量持續同比增長，這得益於新客戶的增加和現有客戶業務的擴展，但被客戶流失和 COVID 相關索賠量的下降所抵消。第一季是新預訂量強勁的季度，尤其是在我們的藥房網路業務中，我們簽署了幾筆數百萬美元的交易，其中包括與一家專注於減少浪費的藥房和患者支出的創新技術公司簽署的每年價值近 500 萬美元的交易。

We continue to see solid execution in our high-growth strategic priorities like payments, data solutions and our API marketplace. In Q1, we grew our API-related transaction volume by more than 50% versus Q1 of last year. As of the end of Q1, we had a total of 335 API software and hardware products from across our portfolio available in the Change Healthcare marketplace and in multiple online storefronts, including AWS and Azure, Epic App Orchard and the Salesforce AppExchange.

我們持續看到支付、數據解決方案和 API 市場等高成長策略重點的穩健執行。第一季度，我們的 API 相關交易量與去年第一季相比成長了 50% 以上。截至第一季末，我們在 Change Healthcare 市場和多個線上商店（包括 AWS 和 Azure、Epic App Orchard 和 Salesforce AppExchange）上共有 335 種 API 軟體和硬體產品。

Our leadership in providing microservice-based and API-based solutions to the health care industry, along with our payments and data solutions businesses, are fueling the continued growth of our Network segment beyond underlying transaction volume growth.

我們在為醫療保健產業提供基於微服務和基於 API 的解決方案方面的領導地位，以及我們的支付和數據解決方案業務，正在推動我們的網路部門持續成長，超越基礎交易量的成長。

Moving to our newly formed Enterprise Imaging segment. In Q1, we established Enterprise Imaging as a standalone reporting segment under its own general manager reporting directly to me. We made this change in connection with Kris Joshi's promotion to assume the role of President, Software and Analytics, in addition to continuing his role as EVP and President for Network Solutions.

轉向我們新成立的企業成像部門。在第一季度，我們設立了企業影像部門，作為一個獨立的報告部門，由其總經理直接向我報告。我們做出這項變動是因為克里斯喬希 (Kris Joshi) 晉升擔任軟體和分析總裁，同時繼續擔任執行副總裁兼網路解決方案總裁。

Given our market-leading, cloud-native Enterprise Imaging platform, establishing Enterprise Imaging as a standalone reporting segment will help our team better address the growing demand and unique market opportunities in imaging while best positioning the imaging team to grow and deliver for our customers. You can find 8 quarters of recast results that reflect these segment changes in the appendix of the slides accompanying this presentation.

鑑於我們市場領先的雲端原生企業成像平台，將企業成像設立為獨立的報告部門將有助於我們的團隊更好地滿足成像領域日益增長的需求和獨特的市場機遇，同時使成像團隊能夠更好地發展並為我們的客戶提供服務。您可以在本簡報隨附的投影片附錄中找到反映這些細分變更的 8 個季度的重算結果。

In the quarter, we again signed several multimillion dollar imaging contracts, winning competitive deals over some of the largest imaging companies in the world. As evidenced by our continued new contract wins, the market is embracing our vision of a cloud-native, AI-driven Enterprise Imaging platform.

本季度，我們再次簽署了幾份價值數百萬美元的成像合同，並與世界上一些最大的成像公司競爭。我們不斷贏得的新合約證明，市場正在接受我們基於雲端的、人工智慧驅動的企業成像平台的願景。

Now moving on to our Technology-Enabled Services segment. In TES, we're continuing our focus on client performance and value creation. We've continued to refine and communicate our value proposition for both payer and provider customers, updating 10 return on investment calculators across TES with our sales and account management teams. We used one of these ROI calculators along with other customer data analysis to help a large national physician group understand the value that Change Healthcare could bring to their practices. This helped us sign our largest contract in this market segment in over 4 years.

現在轉到我們的技術支援服務部門。在 TES，我們繼續專注於客戶績效和價值創造。我們不斷改進和傳達我們針對付款人和提供者客戶的價值主張，並與我們的銷售和客戶管理團隊一起更新了整個 TES 的 10 個投資回報計算器。我們使用其中一種 ROI 計算器以及其他客戶數據分析來幫助一個大型的國家醫生團體了解 Change Healthcare 可以為他們的實踐帶來的價值。這幫助我們簽署了四年多來該領域最大的合約。

We've also been successfully expanding our service contracts in other market segments. We recently increased our communications business substantially with a large payer, closing 2 deals worth several million dollars combined. And as in prior quarters, we remain focused on expanding the underlying margins in the Technology-Enabled Services businesses through automation and AI to increase our efficiency and drive stronger performance for our customers. Our RCM transformation efforts are on track and remain a top priority alongside navigating the current challenges in the labor market.

我們也成功地擴大了其他細分市場的服務合約。我們最近大幅增加了與一家大型付款人的通訊業務，完成了兩筆總價值數百萬美元的交易。與前幾季一樣，我們仍然專注於透過自動化和人工智慧來擴大技術支援服務業務的潛在利潤率，以提高我們的效率並為我們的客戶帶來更強勁的業績。我們的 RCM 轉型工作進展順利，在應對勞動市場當前挑戰的同時，仍是重中之重。

In closing, our Q1 results demonstrated our team's customer and partner focus, their resilience and their ever-increasing innovation. We continued our strong execution in attaining our strategic, operational and financial objectives. Through continued innovation, we are providing greater value by leveraging technology and insights to reduce administrative wait, streamline and accelerate payments and enhance consumer engagement to better drive experiences and outcomes throughout the patient journey.

最後，我們的第一季業績證明了我們團隊對客戶和合作夥伴的關注、他們的韌性以及他們不斷增強的創新能力。我們繼續強力執行，以實現我們的策略、營運和財務目標。透過持續創新，我們利用技術和洞察力來減少行政等待、簡化和加速支付並增強消費者參與度，從而更好地推動患者整個旅程的體驗和結果，從而提供更大的價值。

We remain confident that Change Healthcare, which provides best-in-class connectivity, transaction management, insights and integrated experiences, will continue to play a vital role in helping our customers through the continuing transformation of health care.

我們堅信，Change Healthcare 提供一流的連接、交易管理、洞察力和全面體驗，將繼續在幫助我們的客戶實現醫療保健的持續轉型方面發揮重要作用。

Now let me turn the call over to Fredrik, who will review our financial performance. Fredrik?

現在，讓我將電話轉給 Fredrik，他將審查我們的財務表現。弗雷德里克？

Thank you, Neil, and good morning, everyone. Our first quarter growth demonstrates that despite headwinds from lower COVID-related volumes and customer attrition related to the extended UHG merger process, the underlying momentum of our core franchises remain strong. And with our sales pipeline and investments in innovation, we are well positioned to materially accelerate growth as we get to the fourth quarter and the 4 mentioned year-over-year challenges become less impactful.

謝謝你，尼爾，大家早安。我們第一季的成長表明，儘管面臨與 COVID 相關的銷售下降以及與 UHG 合併流程延長相關的客戶流失帶來的阻力，但我們核心特許經營的潛在勢頭仍然強勁。憑藉我們的銷售管道和對創新的投資，隨著進入第四季度，上述 4 個同比挑戰的影響將逐漸減小，我們已做好準備，大幅加速成長。

Starting with Slide 6. For the first quarter, solutions revenue was $831 million compared to $870 million in the same period of the prior fiscal year, which included a $4 million fair value adjustment associated with the McKesson exit. The quarter was positively impacted by volume growth and new sales, partially offset by the aforementioned UHG merger-related attrition and more normalized health care activity compared to last year.

從投影片 6 開始。第一季度，解決方案營收為 8.31 億美元，而上一財年同期為 8.7 億美元，其中包括與 McKesson 退出相關的 400 萬美元公允價值調整。本季受到銷售成長和新銷售的正面影響，但部分抵消了上述與 UHG 合併相關的人員流失以及與去年相比更正常化的醫療保健活動的影響。

Net of the impact of the deferred revenue fair value adjustment in the prior period, solutions revenue increased 1.2% year-over-year. Net loss for the quarter was $23 million, resulting in net loss of $0.07 per diluted share compared to a net loss of $4 million or $0.01 per diluted share for the same period of the prior fiscal year. Adjusted EBITDA for the quarter was $280 million, a decrease of 0.9% over the same period of the prior fiscal year.

扣除上期遞延收入公允價值調整的影響，解決方案營收年增1.2%。本季淨虧損為 2,300 萬美元，導致每股淨虧損 0.07 美元，而上一財年同期的淨虧損為 400 萬美元或每股淨虧損 0.01 美元。本季調整後EBITDA為2.8億美元，較上年同期下降0.9%。

Adjusted EBITDA reflects the items outlined relative to revenue and our continued investments to support business initiatives. Adjusted net income was $124 million, resulting in adjusted net income of $0.38 per diluted share compared with adjusted net income of $133 million or $0.41 per diluted share for the first fiscal quarter of the prior year.

調整後的 EBITDA 反映了與收入相關的項目以及我們為支持業務計劃而持續進行的投資。調整後淨收入為 1.24 億美元，導致每股攤薄淨收入為 0.38 美元，而去年同期調整後淨收入為 1.33 億美元或每股攤薄淨收入為 0.41 美元。

Adjusted net income benefited from revenue growth and a slightly lower tax rate, but these improvements were more than offset by higher depreciation and amortization. There were 327 million diluted shares in the first quarter of fiscal '23 compared to 323 million diluted shares in the same period of the prior fiscal year. Now let's take a look in more detail at the performance of our segments on Slide 7.

調整後的淨收入受益於收入成長和略低的稅率，但這些改善被更高的折舊和攤提所抵消。 23 財年第一季稀釋股份為 3.27 億股，而上一財年同期稀釋股份為 3.23 億股。現在讓我們更詳細地看一下幻燈片 7 上各個部分的表現。

Starting with revenue, the Software and Analytics segment increased 2.1% year-over-year, driven by new customers, volume growth with existing customers and new product innovations, partially offset by attrition related to the pending UHG transaction. Our Network Solutions revenue increased 2.3% year-over-year. Key drivers include volume growth from existing customers and implementation of new customers. The favorable impact from COVID-related activities was significantly smaller in the quarter compared to the prior year.

從收入開始，軟體和分析部門年增 2.1%，這得益於新客戶、現有客戶數量成長和新產品創新，但部分被待決 UHG 交易相關的人員流失所抵消。我們的網路解決方案營收年增2.3%。關鍵驅動因素包括現有客戶的銷售成長和新客戶的實施。與去年同期相比，本季與 COVID 相關的活動產生的有利影響明顯較小。

Revenue in our new Enterprise Imaging segment increased 0.8% year-over-year, driven by new sales growth and partially offset by the timing of implementation revenue. In our Technology-Enabled Services segment, overall revenue decreased 1.7% year-over-year as a result of onetime projects during the prior year that did not recur during the current quarter and lower COVID revenue. We continue to see positive long-term trends in both RCM win rates and deal size.

我們新的企業成像部門的營收年增 0.8%，這得益於新的銷售成長，但部分被實施收入的時間所抵銷。在我們的技術支援服務部門，由於上一年的一次性專案在本季度沒有再次發生以及 COVID 收入下降，總收入同比下降 1.7%。我們繼續看到 RCM 中標率和交易規模呈現積極的長期趨勢。

Turning to adjusted EBITDA. Software and Analytics increased 5.8% year-over-year, driven by the aforementioned revenue growth. Network Solutions adjusted EBITDA decreased 1.9% year-over-year, driven primarily by continued investment to support a significant number of new product launches and market expansion initiatives that we have underway and negative mix as COVID-related activities in the network abated.

轉向調整後的 EBITDA。受上述收入成長的推動，軟體和分析業務年增 5.8%。網路解決方案調整後的 EBITDA 年比下降 1.9%，主要原因是持續投資以支持我們正在進行的大量新產品發布和市場擴張計劃，以及網路中與 COVID 相關的活動減少導致的負面組合。

Enterprise Imaging adjusted EBITDA decreased $1.3 million year-over-year, driven by hiring to support business growth and research and development expenses. In Technology-Enabled Services, adjusted EBITDA decreased $7 million year-over-year, driven by the same factors that impacted revenue as well as increased wage inflation and hiring challenges in a difficult labor market.

企業影像調整後的 EBITDA 年比減少 130 萬美元，原因是招募以支援業務成長和研發費用。在技​​術支援服務方面，調整後的 EBITDA 年比減少 700 萬美元，原因包括影響收入的相同因素以及工資上漲和勞動力市場困難帶來的招聘挑戰。

Moving on to cash flow and our balance sheet on Slide 8. Free cash flow for the quarter was $4 million compared to $44 million in the same period of the prior fiscal year. In addition to lower net income, the decline versus last year was due to unfavorable net working capital and CapEx timing, both of which are expected to reverse in the remainder of the year.

我們來看投影片 8 的現金流量和資產負債表。本季的自由現金流為 400 萬美元，而上一財年同期為 4,400 萬美元。除了淨收入下降之外，與去年相比的下降還歸因於不利的淨營運資本和資本支出時機，預計這兩種情況都將在今年剩餘時間內扭轉。

Total long-term debt, net of cash at quarter end, was $4.4 billion. Net leverage ratio was 4.1% at quarter end. During the quarter, the company repaid $100 million in senior note obligations and subsequent to the end of the quarter, we paid an additional $50 million on the senior notes. Our liquidity remained strong, ending the quarter with $94 million of cash and cash equivalents and $780 million in undrawn revolver capacity.

季度末扣除現金後的長期債務總額為 44 億美元。季末淨槓桿率為4.1%。在本季度，該公司償還了 1 億美元的優先票據債務，在本季結束後，我們又支付了 5,000 萬美元的優先票據。我們的流動性依然強勁，本季末擁有 9,400 萬美元的現金和現金等價物以及 7.8 億美元的未提取循環信貸額度。

As noted in the press release, due to the pending transaction, we will not be providing financial guidance. With that said, let me provide some color regarding our expectations for the full fiscal year and the second quarter. Starting with the full year, our expectation of 2% to 4% solutions revenue growth is unchanged from what we outlined last quarter. The underlying growth of the business is strong. But as mentioned earlier, we are experiencing headwinds from lower COVID-related activities and customer attrition related to the extended UHG merger process. We expect that these factors, along with negative mix shift and wage inflation within TES, will drive flat to slightly contracting full year adjusted EBITDA margin versus last year.

正如新聞稿中所述，由於交易尚未完成，我們將不會提供財務指導。話雖如此，請允許我提供一些有關我們對整個財年和第二季度的預期的資訊。從全年來看，我們預計解決方案營收將成長 2% 至 4%，與上個季度的預測一致。業務的潛在成長強勁。但如前所述，我們正面臨 COVID 相關活動減少以及 UHG 合併流程延長導致的客戶流失所帶來的阻力。我們預計，這些因素加上 TES 內部的負面組合變化和工資上漲，將導致全年調整後的 EBITDA 利潤率與去年相比持平或略有收縮。

Our full year free cash flow expectation of $450 million to $500 million remains the same, albeit most likely at the lower end of the range due to the higher litigation costs associated with the merger.

我們對全年自由現金流的預期為 4.5 億至 5 億美元，保持不變，但由於合併帶來的訴訟成本較高，這一預期很可能處於該範圍的低端。

As for the full year cadence, we began seeing a material impact from attrition related to the UHG merger in the fourth quarter of fiscal year '22, which is why we anticipate more muted year-over-year growth through the first 3 quarters of the fiscal year. We expect strong growth acceleration in the fourth quarter as the lower combined impact of the attrition and the COVID activities provide for an easier year-over-year comparison. This, coupled with strong bookings performance, will set up nicely for not just a strong fourth quarter, but also a strong FY '24.

至於全年節奏，我們在 22 財年第四季開始看到與 UHG 合併相關的人員流失產生重大影響，這就是為什麼我們預計本財年前三個季度的同比增長將更加平緩。我們預計第四季度將出現強勁成長加速，因為人員流失和 COVID 活動的綜合影響較低，更容易進行同比比較。再加上強勁的預訂業績，這不僅為強勁的第四季度打下了良好的基礎，也為強勁的 24 財年打下了良好的基礎。

Specifically to the second fiscal quarter of FY '23, we expect flat to low single-digit revenue growth in all 4 segments due to the aforementioned headwinds. For second quarter adjusted EBITDA, we expect year-over-year declines in all 4 segments due to the aforementioned revenue headwinds, along with other factors unique to each business unit.

具體到 23 財年第二季度，由於上述不利因素，我們預計所有 4 個部門的營收成長將持平至低個位數。對於第二季調整後的 EBITDA，我們預計所有 4 個部門都將出現同比下降，原因是上述收入逆風以及每個業務部門特有的其他因素。

In Software and Analytics, we expect a high single-digit percent decline in adjusted EBITDA year-over-year due to negative mix shift for the quarter. This mix shift is driven by higher growth in lower-margin risk adjustment and quality solutions and customer attrition related to the UHG merger and some higher-margin solutions. We expect this mix shift to normalize by the fourth quarter as we lap most of the attrition impact.

在軟體和分析領域，由於本季產品組合出現負面變化，我們預期調整後的 EBITDA 將年比出現高個位數百分比下降。這種組合轉變是由低利潤率風險調整和品質解決方案的較高增長以及與 UHG 合併和一些高利潤率解決方案相關的客戶流失所推動的。我們預計，隨著我們消除大部分人員流失的影響，這種組合轉變將在第四季度恢復正常。

In Network, we expect a low single-digit percent decline due to lower high-margin COVID-related revenue. In Enterprise Imaging, we continue to invest in R&D, sales and marketing and implementation staff to fuel growth from our new cloud-native Enterprise Imaging platform. As a result, we expect mid-single-digit million dollar adjusted EBITDA decline in the second quarter.

在網路方面，由於高利潤率的新冠疫情相關收入下降，我們預期收入將出現低個位數百分比的下降。在企業影像領域，我們持續投資於研發、銷售和行銷以及實施人員，以推動我們新的雲端原生企業影像平台的成長。因此，我們預計第二季調整後的 EBITDA 將下降數百萬美元。

After that, we expect double-digit percent EBITDA growth for that business unit for the remaining 2 quarters of the fiscal year as prior year bookings start to drive significant revenue growth. And in Technology-Enabled Services, we expect a low double-digit million dollar decline in adjusted EBITDA due primarily to increased contractor costs, wage inflation and lower COVID volume versus prior year.

此後，我們預計該業務部門在本財年剩餘的兩個季度中 EBITDA 將實現兩位數的百分比增長，因為上一年的訂單開始推動顯著的收入成長。在技​​術支援服務方面，我們預計調整後的 EBITDA 將下降數百萬美元，主要原因是承包商成本增加、薪資上漲以及 COVID 數量與去年相比有所下降。

Now with that, let me turn it back to Neil for his closing comments.

現在，讓我把話題轉回給尼爾，請他發表最後的總結。

Thank you, Fredrik. In closing, I want to express my appreciation for the dedicated team members of Change Healthcare. They remain focused on developing and delivering innovative solutions for health care providers, payers, partners and consumers to improve clinical, financial and care outcomes. As I've stated previously, our goal is to deliver on 3 key objectives for our stakeholders.

謝謝你，弗雷德里克。最後，我要對 Change Healthcare 敬業的團隊成員表示感謝。他們仍然專注於為醫療保健提供者、付款人、合作夥伴和消費者開發和提供創新解決方案，以改善臨床、財務和護理結果。正如我之前所說，我們的目標是為利害關係人實現三個關鍵目標。

First, we will deliver superior consumer experiences. Second, we will drive increased efficiency and accuracy for financial transactions in health care. And third, we will deliver solutions that optimize decision-making for our customers on their journey to value-based care.

首先，我們將提供卓越的消費者體驗。第二，我們將提高醫療保健領域金融交易的效率和準確性。第三，我們將為客戶提供基於價值的醫療照護過程中優化決策的解決方案。

The strength of our financial performance to date and the ability to continue to deliver innovative value-added solutions to our customers is a testament to our team members' commitment, innovation and agility. We will continue to partner with our customers to help them lower cost, enhance access and improve outcomes, creating value for everyone in the health care system.

我們迄今為止的財務表現強勁，並且能夠繼續為客戶提供創新增值解決方案，證明了我們團隊成員的承諾、創新和敏捷性。我們將繼續與客戶合作，幫助他們降低成本、增強獲取途徑、改善結果，為醫療保健系統中的每個人創造價值。

Thank you very much for joining us today.

非常感謝您今天加入我們。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。