ModivCare Inc. - MODV STOCK NEWS

Modivcare and the Michigan Center for Rural Health have completed an 18-month Remote Patient Monitoring (RPM) pilot program across three rural Michigan hospitals. The program, targeting patients with hypertension, diabetes, and congestive heart failure, achieved a 48.72% enrollment rate from 117 eligible patients. Notable outcomes include doubling the number of patients with controlled blood pressure (39% to 78%) and significant reductions in blood pressure readings (27 mmHg systolic, 11 mmHg diastolic). The pilot demonstrated particular success with homebound patients and those with social support, maintaining a device failure rate below 10% despite rural connectivity challenges.

Modivcare Inc. (Nasdaq: MODV), a technology-enabled healthcare services company, has announced its schedule for reporting third quarter 2024 financial results. The company will release its financial results on Wednesday, November 6, 2024, after the market closes. Following this, Modivcare will host a conference call on Thursday, November 7, 2024, at 8:30 a.m. Eastern Time to discuss the results.

Interested parties can join the conference call using the following dial-in numbers:

• Domestic callers: (888) 437-3179
• International callers: +1 (862) 298-0702

Modivcare, a leading provider of non-emergency medical transportation and in-home care, has transformed its support services for 34 million members using the Genesys Cloud™ platform. The AI-powered experience orchestration capabilities have enabled Modivcare to implement a digital-first strategy, managing 2.2 million monthly calls and communications through a unified desktop. Key improvements include:

1. Deployment of AI-driven self-service voicebots and chatbots, with 63% of members now using chatbots for routine support.
2. Enhanced workforce engagement management for 2,600 contact center advisors.
3. A 31% reduction in average speed of answer and abandonment rates.
4. 5% increase in service levels and quality scores.
5. An impressive 86% increase in teammate retention.

These advancements have significantly improved Modivcare's ability to deliver personalized experiences and efficient healthcare services.

ModivCare Inc. (Nasdaq: MODV) has announced an amendment to its Credit Agreement with JPMorgan Chase Bank, N.A. and other key lenders. The amendment includes:

• An increase in the Total Net Leverage Ratio Covenant to 6.50x from 5.25x for Q3 2024
• A reduction in the Minimum Interest Coverage Ratio Covenant to 2.00x from 2.75x for Q3 2024

The company agreed to a 25 basis point increase in its interest rate margin until it delivers financial statements for FY 2024. ModivCare is also in discussions for a long-term relief amendment. Additionally, the company has successfully collected approximately $60 million in previously delayed contract receivables.

Modivcare Foundation, the philanthropic arm of Modivcare (Nasdaq:MODV), has announced its continued support for Build Jake's Place, an organization creating inclusive playgrounds for children and adults with disabilities. The foundation is donating $5,000 to support the Camden County NJ Miracle League, a program that offers baseball opportunities for people of all ages with disabilities.

Build Jake's Place, founded in 2009, designs accessible playgrounds that allow children using wheelchairs and other assistive devices to play alongside their peers. The Modivcare Foundation has been supporting this initiative for the past two years, aligning with its mission to improve health outcomes and ensure inclusive activities for all.

The donation will also help fund the Miracle League's participation in the National Miracle League All-Star game in Palm Beach, Florida, this November. This partnership reflects Modivcare's commitment to removing barriers to care and well-being in communities.

Modivcare Inc. (Nasdaq: MODV) has filed a Form S-3 shelf registration statement and a Form 8-K with the SEC, providing flexibility for future capital raising. The company is seeking near-term covenant relief under its revolving credit facility due to potential delays in contract receivable collections. Modivcare has experienced delays in collecting approximately $60 million of its $159.3 million NEMT segment current contract receivables, primarily from MCO customers.

The company has revised its 2024 Adjusted EBITDA guidance from $185–$195 million to $170–$180 million, mainly due to NEMT segment pricing accommodations. Modivcare projects Adjusted EBITDA growth exceeding 10% in 2025. The company remains confident in collecting outstanding receivables and expects to enter 2025 with aligned prepayment rates as utilization patterns stabilize.

Modivcare (MODV) has partnered with the American College of Cardiology (ACC) to launch the Caring Hearts Initiative in Camden County, New Jersey. This program aims to address health disparities in underserved communities by providing essential supportive care services. Key activities include:

• Placement of Higi Stations for health screenings
• Connecting residents to food insecurity resources
• Distributing educational materials on heart health
• Collaborating with local partners like The Food Trust

The initiative has already conducted 400,000 heart risk tests nationally and over 4,000 screenings in Camden. This multi-city program demonstrates the power of collaboration between national organizations and local partners in addressing health disparities and improving community health outcomes.

Modivcare Inc. (Nasdaq: MODV) has recognized Portland resident Ben Fasulo as Maine's Driver of the Month for his exceptional service in non-emergency medical transportation (NEMT) for Medicaid members. Since 2014, Modivcare has expanded its Maine NEMT provider network from 10 to over 60 providers, employing more than 500 drivers. The company boasts an impressive 94% on-time performance and maintains low member complaints and vehicle unavailability rates, both below 0.1%.

Mr. Fasulo, known for his reliability and willingness to take on extra responsibilities, is currently training to become a trainer for other drivers. He is particularly praised for his dedication to wheelchair transportation and volunteering for weekend shifts. Modivcare's success in Maine highlights its commitment to providing efficient and safe transportation services for Medicaid members, contributing to improved healthcare access.

Modivcare reported Q2 2024 financial results, showing revenue of $698.3M, consistent with Q2 2023. The company recorded a net loss of $128.9M or -$9.07 per diluted share. Adjusted EBITDA was $45.4M, with an adjusted net loss of $0.4M or -$0.03 per share. Cash used in operations totaled $55.3M, with free cash flow at -$62M. Key wins include $97.8M in NEMT contracts.

The company revised its 2024 guidance, maintaining revenue projections ($2.7-$2.9B) but lowering adjusted EBITDA to $185-$195M. Segment results showed a NEMT revenue decrease of 1.3%, PCS growth of 3.5%, and RPM decline of 1.0%. An operating loss of $98.9M was reported, improved from a $175.8M loss in Q2 2023.

Modivcare refinanced its 2025 notes with a new Term Loan B. The company's priority is to de-lever its balance sheet and enhance shareholder value.