Modivcare Reports First Quarter 2024 Financial Results; Maintains Guidance
Modivcare Inc. (MODV) reported Q1 2024 financial results with service revenue of $684.5 million, a 3.3% increase from Q1 2023. The company had a net loss of $22.3 million and adjusted EBITDA of $32.1 million. They won $171.2 million in NEMT total contract value in Q1 2024. The CEO is optimistic about achieving a run-rate adjusted EBITDA of $220-230 million by Q4 2024.
Service revenue increased by 3.3% year-over-year
Won $171.2 million of NEMT total contract value in Q1 2024
CEO is confident in achieving a run-rate adjusted EBITDA of $220-230 million by Q4 2024
Net loss of $22.3 million in Q1 2024
Adjusted EBITDA decreased to $32.1 million from $50.2 million in Q1 2023
Operating loss driven by increase in operating expenses and service expense
Insights
First Quarter 2024 Summary:
-
Service revenue of
$684.5 million 3.3% from the first quarter of 2023 -
Net loss of
$22.3 million $1.57 -
Adjusted EBITDA(1) of
$32.1 million $1.2 million $0.09 -
Cash provided by operating activities during the quarter of
$9.6 million $1.7 million -
Contract receivables, net of contract payables, of
$25.9 million -
Won
$171.2 million $36.4 million
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(1) Non-GAAP financial measure reconciliations and other related information about non-GAAP financial measures provided below. |
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(2) Free cash flow, a non-GAAP financial measure, is calculated by us as cash flow from operations less our capital expenditures during the period of |
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“We are pleased to report first quarter 2024 results in-line with our previously announced guidance as revenue increased
Sampson continued, “We are confident in our path to exit the fourth quarter of 2024 with expected run-rate adjusted EBITDA of
2024 Guidance
We maintained our Revenue and Adjusted EBITDA guidance ranges as follows ($ in millions):
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Fiscal Year 2024 |
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Revenue |
|
|
|
Adjusted EBITDA |
|
|
|
Guidance excludes the effects of any future merger or acquisition activity and is based on the current operating environment.
First Quarter 2024 Results
For the first quarter of 2024, the Company reported
Our operating loss was
Adjusted EBITDA was
Cash generated from operations during the quarter was
First Quarter Earnings Conference Call
Modivcare will hold a conference call to discuss its financial results on Friday, May 3, 2024 at 8:30 a.m. ET. To access the call, please dial:
US toll-free: 1 (877) 407-8037
International: 1 (201) 689-8037
You may also access the conference call via webcast at investors.modivcare.com, where the call will also be archived.
About Modivcare
Modivcare Inc. ("Modivcare" or the "Company") is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their members. Our value-based solutions address the social determinants of health (SDoH) by connecting members to essential care services. By doing so, Modivcare helps health plans manage risks, reduce costs, and improve health outcomes. Modivcare is a provider of non-emergency medical transportation (NEMT), personal care services (PCS), and remote patient monitoring solutions (RPM). The company also holds a minority equity investment in CCHN Holdings (d/b/a Matrix Medical Network), an independent, at scale provider of comprehensive in-home health assessments in the
Non-GAAP Financial Measures and Adjustments
In addition to the financial measures prepared in accordance with generally accepted accounting principles in
Reconciliations of the non-GAAP financial measures used herein to their most directly comparable GAAP financial measures that are not included in the discussion above are included below. We do not provide guidance for net income (loss) in this presentation on a basis consistent with GAAP or a reconciliation of forward-looking non-GAAP financial measure (Adjusted EBITDA) to its most directly comparable GAAP financial measure (net income (loss)) on a forward-looking basis because we are unable to predict items contained in the GAAP financial measure without unreasonable efforts. Our non-GAAP performance measures exclude expenses and amounts that are not driven by our core operating results and may be one time in nature. Excluding these expenses makes comparisons with prior periods as well as to other companies in our industry more meaningful. We believe such measures allow investors to gain a better understanding of the factors and trends affecting the ongoing operations of our business. We consider our core operations to be the ongoing activities to provide services from which we earn revenue, including direct operating costs and indirect costs to support these activities. As a result, our net income or loss in equity investee is excluded from these measures, as we do not have the ability to manage the venture, allocate resources within the venture, or directly control its operations or performance. Our free cash flow presentation (as applicable) reflects an additional way of viewing our liquidity that, when viewed together with our GAAP results, provides management, investors, and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. Our use of the term free cash flow is not intended to imply, and no inference should be made, however, that any reported amounts are free to be used without restriction for discretionary expenditures, as our use of these funds may be restricted by the terms of our outstanding indebtedness, including our credit facility, and otherwise earmarked for other non-discretionary expenditures.
Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on our reported financial results. The presentation of non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. We urge you to review the reconciliations of our non-GAAP financial measures to their most directly comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are predictive in nature and are frequently identified by the use of terms such as “may,” “will,” “should,” “expect,” “believe,” “estimate,” “intend,” and similar words indicating possible future expectations, events or actions. The updated guidance discussed herein constitutes forward-looking statements. Such forward-looking statements are based on current expectations, assumptions, estimates and projections about our business and our industry, and are not guarantees of our future performance. These statements are subject to a number of known and unknown risks, uncertainties and other factors, many of which are beyond our ability to control or predict, which may cause actual results to be materially different from those expressed or implied herein, including but not limited to: government or private insurance program funding reductions or limitations; implementation of alternative payment models or the transition of Medicaid and Medicare beneficiaries to Managed Care Organizations; our inability to control reimbursement rates received for our services; cost containment initiatives undertaken by private third-party payors and an inability to maintain or reduce our cost of services below rates set forth by our payors; inadequacies in, or security breaches of, our information technology systems, including those intended to protect our clients’ confidential information; the effects of any public health emergency; changes in the funding, financial viability or our relationships with our payors; delays in collection, or non-collection, of our accounts receivable; any impairment of our goodwill and long-lived assets; any failure to maintain or to develop reliable, efficient and secure information technology systems; any inability to attract and retain qualified employees; any disruptions from acquisition or acquisition integration efforts; weakening of general economic conditions, including the impact of inflationary pressures, rising interest rates, labor shortages, higher labor costs and supply chain challenges; estimated income taxes being different from income taxes that we ultimately pay; pandemics and other infectious diseases; our contracts not surviving until the end of their stated terms, or not being renewed or extended; our failure to compete effectively in the marketplace; our not being awarded contracts through the government’s requests for proposals process, or our awarded contracts not being profitable; any failure to satisfy our contractual obligations or to maintain existing pledged performance and payment bonds; any failure to estimate accurately the cost of performing our contracts; any misclassification of the drivers we engage as independent contractors rather than as employees; significant interruptions in our communication and data services; not successfully executing on our strategies in the face of our competition; any inability to maintain relationships with existing patient referral sources; certificates of need laws or other regulatory and licensure obligations that may adversely affect our personal care integration efforts and expansion into new markets; any failure to obtain the consent of the New York Department of Health to manage the day to day operations of our licensed in-home personal care services agency business; changes in the case-mix of our personal care patients, or changes in payor mix or payment methodologies; our loss of existing favorable managed care contracts; labor disputes or disruptions, in particular in
The Company has provided additional information about the foregoing and other risks facing our business in our annual report on Form 10-K and subsequent periodic and current reports filed with the Securities and Exchange Commission that could impact future performance. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made and are expressly qualified in their entirety by the cautionary statements set forth herein and in our filings with the Securities and Exchange Commission, which you should read in their entirety before making an investment decision with respect to our securities. We undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable law.
Modivcare Inc. |
|||||||
Unaudited Condensed Consolidated Statements of Operations |
|||||||
(in thousands, except share and per share data) |
|||||||
|
|
|
|
||||
|
Three months ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
Service revenue, net |
$ |
684,451 |
|
|
$ |
662,306 |
|
Grant income |
|
— |
|
|
|
1,464 |
|
|
|
|
|
||||
Operating expenses: |
|
|
|
||||
Service expense |
|
583,566 |
|
|
|
550,266 |
|
General and administrative expense |
|
77,177 |
|
|
|
79,713 |
|
Depreciation and amortization |
|
27,103 |
|
|
|
25,693 |
|
Total operating expenses |
|
687,846 |
|
|
|
655,672 |
|
|
|
|
|
||||
Operating income (loss) |
|
(3,395 |
) |
|
|
8,098 |
|
|
|
|
|
||||
Interest expense, net |
|
18,686 |
|
|
|
15,958 |
|
Loss before income taxes and equity method investment |
|
(22,081 |
) |
|
|
(7,860 |
) |
Income tax (provision) benefit |
|
543 |
|
|
|
1,873 |
|
Equity in net income (loss) of investee, net of tax |
|
(762 |
) |
|
|
2,025 |
|
Net loss |
$ |
(22,300 |
) |
|
$ |
(3,962 |
) |
|
|
|
|
||||
Loss per common share: |
|
|
|
||||
Basic |
$ |
(1.57 |
) |
|
$ |
(0.28 |
) |
Diluted |
$ |
(1.57 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
||||
Weighted-average number of common shares outstanding: |
|
|
|||||
Basic |
|
14,202,000 |
|
|
|
14,163,511 |
|
Diluted |
|
14,202,000 |
|
|
|
14,163,511 |
|
Modivcare Inc. |
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Unaudited Condensed Consolidated Balance Sheets |
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(in thousands) |
|||||||
|
|
|
|
||||
|
March 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
10,341 |
|
$ |
2,217 |
||
Accounts receivable, net |
|
214,106 |
|
|
222,537 |
||
Contract receivables |
|
134,680 |
|
|
143,960 |
||
Other current assets(1) |
|
44,874 |
|
|
36,209 |
||
Total current assets |
|
404,001 |
|
|
404,923 |
||
Property and equipment, net |
|
86,238 |
|
|
85,629 |
||
Long-term contract receivables |
|
19,598 |
|
|
— |
||
Goodwill |
|
785,554 |
|
|
785,554 |
||
Intangible assets, net |
|
341,078 |
|
|
360,935 |
||
Equity investment |
|
40,247 |
|
|
41,531 |
||
Operating lease right-of-use assets |
|
40,565 |
|
|
39,776 |
||
Other long-term assets |
|
46,767 |
|
|
48,927 |
||
Total assets |
$ |
1,764,048 |
|
$ |
1,767,275 |
||
|
|
|
|
||||
Liabilities and stockholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
54,645 |
|
$ |
55,241 |
||
Accrued contract payables |
|
128,399 |
|
|
117,488 |
||
Accrued expenses and other current liabilities |
|
139,812 |
|
|
127,901 |
||
Accrued transportation costs |
|
86,846 |
|
|
97,245 |
||
Current portion of operating lease liabilities |
|
8,612 |
|
|
8,727 |
||
Short-term borrowings |
|
121,000 |
|
|
113,800 |
||
Total current liabilities |
|
539,314 |
|
|
520,402 |
||
Long-term debt, net of deferred financing costs |
|
984,896 |
|
|
983,757 |
||
Operating lease liabilities, less current portion |
|
34,886 |
|
|
33,784 |
||
Other long-term liabilities(2) |
|
69,111 |
|
|
73,137 |
||
Total liabilities |
|
1,628,207 |
|
|
1,611,080 |
||
|
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Stockholders' equity |
|
135,841 |
|
|
156,195 |
||
Total liabilities and stockholders' equity |
$ |
1,764,048 |
|
$ |
1,767,275 |
||
| (1) | Includes other receivables, prepaid expenses and other current assets and short-term restricted cash. |
(2) |
Includes other long-term liabilities and deferred tax liabilities. |
Modivcare Inc. |
|||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
|
|
|
|
||||
|
Three months ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
||||
Net loss |
$ |
(22,300 |
) |
|
$ |
(3,962 |
) |
Depreciation and amortization |
|
27,103 |
|
|
|
25,693 |
|
Stock-based compensation |
|
2,010 |
|
|
|
1,124 |
|
Equity in net (income) loss of investee |
|
1,056 |
|
|
|
(2,810 |
) |
Deferred income taxes |
|
(3,778 |
) |
|
|
(3,624 |
) |
Reduction of right-of-use asset |
|
2,947 |
|
|
|
3,547 |
|
Other non-cash items(1) |
|
1,407 |
|
|
|
1,278 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Contract receivables |
|
9,280 |
|
|
|
(26,893 |
) |
Contract payables |
|
10,910 |
|
|
|
(6,667 |
) |
Long-term contract receivables |
|
(19,598 |
) |
|
|
(3,897 |
) |
Other changes in operating assets and liabilities(2) |
|
523 |
|
|
13,556 |
|
|
Net cash provided by (used in) operating activities |
|
9,560 |
|
|
|
(2,655 |
) |
|
|
|
|
||||
Investing activities |
|
|
|
||||
Purchase of property and equipment |
|
(7,856 |
) |
|
|
(13,320 |
) |
Net cash used in investing activities |
|
(7,856 |
) |
|
|
(13,320 |
) |
|
|
|
|
||||
Financing activities |
|
|
|
||||
Proceeds from short-term borrowings |
|
7,200 |
|
|
|
15,000 |
|
Debt issuance costs |
|
(756 |
) |
|
|
— |
|
Restricted stock surrendered for employee tax payment |
|
(64 |
) |
|
|
(620 |
) |
Net cash provided by financing activities |
|
6,380 |
|
|
|
14,380 |
|
|
|
|
|
||||
Net change in cash, cash equivalents and restricted cash |
|
8,084 |
|
|
|
(1,595 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
2,782 |
|
|
|
14,975 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
10,866 |
|
|
$ |
13,380 |
|
(1) |
Includes amortization of deferred financing costs and debt discount. |
(2) |
Includes accounts receivable and other receivables, prepaid expenses and other current assets, accounts payable and accrued expenses, accrued transportation costs, other long-term assets and other long-term liabilities. |
Modivcare Inc. Unaudited Reconciliation of Non-GAAP Financial Measures Segment Information and Adjusted EBITDA (in thousands) |
|||||||||||||||||||
|
Three months ended March 31, 2024 |
||||||||||||||||||
|
NEMT |
|
PCS |
|
RPM |
|
Corporate and Other |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
479,306 |
|
|
$ |
183,568 |
|
|
$ |
20,102 |
|
|
$ |
1,475 |
|
|
$ |
684,451 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Service expense |
|
423,657 |
|
|
|
149,438 |
|
|
|
8,363 |
|
|
|
2,108 |
|
|
|
583,566 |
|
General and administrative expense |
|
31,820 |
|
|
|
24,432 |
|
|
|
5,440 |
|
|
|
15,485 |
|
|
|
77,177 |
|
Depreciation and amortization |
|
7,359 |
|
|
|
12,795 |
|
|
|
6,674 |
|
|
|
275 |
|
|
|
27,103 |
|
Total operating expenses |
|
462,836 |
|
|
|
186,665 |
|
|
|
20,477 |
|
|
|
17,868 |
|
|
|
687,846 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
|
16,470 |
|
|
|
(3,097 |
) |
|
|
(375 |
) |
|
|
(16,393 |
) |
|
|
(3,395 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,686 |
|
|
|
18,686 |
|
Income (loss) before income taxes and equity method investment |
|
16,470 |
|
|
|
(3,097 |
) |
|
|
(375 |
) |
|
|
(35,079 |
) |
|
|
(22,081 |
) |
Income tax benefit (provision) |
|
(4,274 |
) |
|
|
823 |
|
|
|
67 |
|
|
|
3,927 |
|
|
|
543 |
|
Equity in net loss of investee, net of tax |
|
(28 |
) |
|
|
— |
|
|
|
— |
|
|
|
(734 |
) |
|
|
(762 |
) |
Net income (loss) |
|
12,168 |
|
|
|
(2,274 |
) |
|
|
(308 |
) |
|
|
(31,886 |
) |
|
|
(22,300 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,686 |
|
|
|
18,686 |
|
Income tax provision (benefit) |
|
4,274 |
|
|
|
(823 |
) |
|
|
(67 |
) |
|
|
(3,927 |
) |
|
|
(543 |
) |
Depreciation and amortization |
|
7,359 |
|
|
|
12,795 |
|
|
|
6,674 |
|
|
|
275 |
|
|
|
27,103 |
|
EBITDA |
|
23,801 |
|
|
|
9,698 |
|
|
|
6,299 |
|
|
|
(16,852 |
) |
|
|
22,946 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs(1) |
|
3,239 |
|
|
|
127 |
|
|
|
10 |
|
|
|
1,729 |
|
|
|
5,105 |
|
Transaction and integration costs |
|
52 |
|
|
|
1,446 |
|
|
|
— |
|
|
|
45 |
|
|
|
1,543 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,781 |
|
|
|
1,781 |
|
Equity in net loss of investee, net of tax |
|
28 |
|
|
|
— |
|
|
|
— |
|
|
|
734 |
|
|
|
762 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
27,120 |
|
|
$ |
11,271 |
|
|
$ |
6,309 |
|
|
$ |
(12,563 |
) |
|
$ |
32,137 |
|
(1) |
Restructuring and related costs include professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
Modivcare Inc. Unaudited Reconciliation of Non-GAAP Financial Measures Segment Information and Adjusted EBITDA (in thousands) |
|||||||||||||||||||
|
Three months ended March 31, 2023 |
||||||||||||||||||
|
NEMT |
|
PCS |
|
RPM |
|
Corporate and Other |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
469,463 |
|
|
$ |
174,131 |
|
|
$ |
18,712 |
|
|
$ |
— |
|
|
$ |
662,306 |
|
Grant income |
|
— |
|
|
|
1,464 |
|
|
|
— |
|
|
|
— |
|
|
|
1,464 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Service expense |
|
407,686 |
|
|
|
136,090 |
|
|
|
6,490 |
|
|
|
— |
|
|
|
550,266 |
|
General and administrative expense |
|
33,875 |
|
|
|
22,663 |
|
|
|
5,769 |
|
|
|
17,406 |
|
|
|
79,713 |
|
Depreciation and amortization |
|
6,766 |
|
|
|
12,868 |
|
|
|
5,854 |
|
|
|
205 |
|
|
|
25,693 |
|
Total operating expenses |
|
448,327 |
|
|
|
171,621 |
|
|
|
18,113 |
|
|
|
17,611 |
|
|
|
655,672 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
|
21,136 |
|
|
|
3,974 |
|
|
|
599 |
|
|
|
(17,611 |
) |
|
|
8,098 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,958 |
|
|
|
15,958 |
|
Income (loss) before income taxes and equity method investment |
|
21,136 |
|
|
|
3,974 |
|
|
|
599 |
|
|
|
(33,569 |
) |
|
|
(7,860 |
) |
Income tax benefit (provision) |
|
(5,618 |
) |
|
|
(1,149 |
) |
|
|
(170 |
) |
|
|
8,810 |
|
|
|
1,873 |
|
Equity in net income of investee, net of tax |
|
653 |
|
|
|
— |
|
|
|
— |
|
|
|
1,372 |
|
|
|
2,025 |
|
Net income (loss) |
|
16,171 |
|
|
|
2,825 |
|
|
|
429 |
|
|
|
(23,387 |
) |
|
|
(3,962 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,958 |
|
|
|
15,958 |
|
Income tax provision (benefit) |
|
5,618 |
|
|
|
1,149 |
|
|
|
170 |
|
|
|
(8,810 |
) |
|
|
(1,873 |
) |
Depreciation and amortization |
|
6,766 |
|
|
|
12,868 |
|
|
|
5,854 |
|
|
|
205 |
|
|
|
25,693 |
|
EBITDA |
|
28,555 |
|
|
|
16,842 |
|
|
|
6,453 |
|
|
|
(16,034 |
) |
|
|
35,816 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs(1) |
|
7,099 |
|
|
|
— |
|
|
|
— |
|
|
|
7,346 |
|
|
|
14,445 |
|
Transaction and integration costs(2) |
|
— |
|
|
|
277 |
|
|
|
32 |
|
|
|
564 |
|
|
|
873 |
|
Settlement related costs |
|
275 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
275 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
848 |
|
|
|
848 |
|
Equity in net income of investee, net of tax |
|
(653 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,372 |
) |
|
|
(2,025 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
35,276 |
|
|
$ |
17,119 |
|
|
$ |
6,485 |
|
|
$ |
(8,648 |
) |
|
$ |
50,232 |
|
(1) |
Restructuring and related costs include professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
(2) |
Transaction and integration costs consist of fees incurred related to Sarbanes-Oxley Act of 2002 implementation and business integration efforts. |
Modivcare Inc. Unaudited Reconciliation of Non-GAAP Financial Measures Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Common Share (in thousands, except share and per share data) |
|||||||
|
Three months ended March 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
Net loss |
$ |
(22,300 |
) |
|
$ |
(3,962 |
) |
|
|
|
|
||||
Restructuring and related costs(1) |
|
5,105 |
|
|
|
14,445 |
|
Transaction and integration costs(2) |
|
1,543 |
|
|
|
873 |
|
Settlement related costs |
|
— |
|
|
|
275 |
|
Stock-based compensation |
|
1,781 |
|
|
|
848 |
|
Equity in net (income) loss of investee, net of tax |
|
762 |
|
|
|
(2,025 |
) |
Intangible asset amortization expense |
|
19,779 |
|
|
|
19,901 |
|
Tax effected impact of adjustments |
|
(7,881 |
) |
|
|
(10,154 |
) |
|
|
|
|
||||
Adjusted net income (loss) |
$ |
(1,211 |
) |
|
$ |
20,201 |
|
|
|
|
|
||||
Adjusted earnings (loss) per share |
$ |
(0.09 |
) |
|
$ |
1.42 |
|
|
|
|
|
||||
Diluted weighted-average number of common shares outstanding |
|
14,202,000 |
|
|
|
14,193,257 |
|
(1) |
Restructuring and related costs include professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
(2) |
Transaction and integration costs consist of fees incurred related to SOX implementation and business integration efforts. |
Modivcare Inc. Unaudited Key Statistical and Financial Data (in thousands, except for statistical data) |
|||||||||||||||||||
|
Three months ended |
|
|
|
Three months
|
|
|||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
% Change |
|
December 31, 2023 |
QoQ % Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NEMT Segment |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
479,306 |
|
|
$ |
469,463 |
|
|
2.1 |
% |
|
$ |
499,058 |
|
|
(4.0 |
)% |
||
Purchased services expense |
|
362,900 |
|
|
|
344,420 |
|
|
5.4 |
% |
|
|
371,590 |
|
|
(2.3 |
)% |
||
Payroll and other expense |
|
60,757 |
|
|
|
63,266 |
|
|
(4.0 |
)% |
|
|
60,596 |
|
|
0.3 |
% |
||
Service expense |
$ |
423,657 |
|
|
$ |
407,686 |
|
|
3.9 |
% |
|
$ |
432,186 |
|
|
(2.0 |
)% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit |
$ |
55,649 |
|
|
$ |
61,777 |
|
|
(9.9 |
)% |
|
$ |
66,872 |
|
|
(16.8 |
)% |
||
Gross margin |
|
11.6 |
% |
|
|
13.2 |
% |
|
|
|
|
13.4 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
G&A expense |
$ |
31,820 |
|
|
$ |
33,875 |
|
|
(6.1 |
)% |
|
$ |
27,710 |
|
|
14.8 |
% |
||
G&A expense adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs |
|
3,239 |
|
|
|
7,099 |
|
|
(54.4 |
)% |
|
|
658 |
|
|
392.2 |
% |
||
Transaction and integration costs |
|
52 |
|
|
|
— |
|
|
N/M |
|
|
|
(101 |
) |
|
(151.5 |
)% |
||
Settlement related costs |
|
— |
|
|
|
275 |
|
|
(100.0 |
)% |
|
|
— |
|
|
N/M |
|
||
Adjusted G&A expense |
$ |
28,529 |
|
|
$ |
26,501 |
|
|
7.7 |
% |
|
$ |
27,153 |
|
|
5.1 |
% |
||
Adjusted G&A expense % of revenue |
|
6.0 |
% |
|
|
5.6 |
% |
|
|
|
|
5.4 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
12,168 |
|
|
$ |
16,171 |
|
|
(24.8 |
)% |
|
$ |
23,557 |
|
|
(48.3 |
)% |
||
Net income margin |
|
2.5 |
% |
|
|
3.4 |
% |
|
|
|
|
4.7 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
27,120 |
|
|
$ |
35,276 |
|
|
(23.1 |
)% |
|
$ |
39,719 |
|
|
(31.7 |
)% |
||
Adjusted EBITDA margin |
|
5.7 |
% |
|
|
7.5 |
% |
|
|
|
|
8.0 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total paid trips (thousands) |
|
8,808 |
|
|
|
8,202 |
|
|
7.4 |
% |
|
|
8,798 |
|
|
0.1 |
% |
||
Average monthly members (thousands) |
|
29,071 |
|
|
|
33,704 |
|
|
(13.7 |
)% |
|
|
32,914 |
|
|
(11.7 |
)% |
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue per member per month |
$ |
5.50 |
|
|
$ |
4.64 |
|
|
18.5 |
% |
|
$ |
5.05 |
|
|
8.9 |
% |
||
Revenue per trip |
$ |
54.42 |
|
|
$ |
57.24 |
|
|
(4.9 |
)% |
|
$ |
56.72 |
|
|
(4.1 |
)% |
||
Monthly utilization |
|
10.1 |
% |
|
|
8.1 |
% |
|
|
|
|
8.9 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased services per trip |
$ |
41.20 |
|
|
$ |
41.99 |
|
|
(1.9 |
)% |
|
$ |
42.24 |
|
|
(2.5 |
)% |
||
Payroll and other per trip |
$ |
6.90 |
|
|
$ |
7.71 |
|
|
(10.5 |
)% |
|
$ |
6.89 |
|
|
0.1 |
% |
||
Total service expense per trip |
$ |
48.10 |
|
|
$ |
49.70 |
|
|
(3.2 |
)% |
|
$ |
49.13 |
|
|
(2.1 |
)% |
||
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison, thus, the percentage has been removed. |
Modivcare Inc. Unaudited Key Statistical and Financial Data (in thousands, except for statistical data) |
|||||||||||||||||||
|
Three months ended |
|
|
|
Three months
|
|
|||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
% Change |
|
December 31, 2023 |
QoQ % Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
PCS Segment |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
183,568 |
|
|
$ |
174,131 |
|
|
5.4 |
% |
|
$ |
181,180 |
|
|
1.3 |
% |
||
Service expense |
|
149,438 |
|
|
|
136,090 |
|
|
9.8 |
% |
|
|
144,283 |
|
|
3.6 |
% |
||
Gross profit |
$ |
34,130 |
|
|
$ |
38,041 |
|
|
(10.3 |
)% |
|
$ |
36,897 |
|
|
(7.5 |
)% |
||
Gross margin |
|
18.6 |
% |
|
|
21.8 |
% |
|
|
|
|
20.4 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
G&A expense |
$ |
24,432 |
|
|
$ |
22,663 |
|
|
7.8 |
% |
|
$ |
23,287 |
|
|
4.9 |
% |
||
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs |
|
127 |
|
|
|
— |
|
|
N/M |
|
|
|
— |
|
|
N/M |
|
||
Transaction and integration costs |
|
1,446 |
|
|
|
277 |
|
|
422.0 |
% |
|
|
1,807 |
|
|
(20.0 |
)% |
||
Adjusted G&A expense |
$ |
22,859 |
|
|
$ |
22,386 |
|
|
2.1 |
% |
|
$ |
21,480 |
|
|
6.4 |
% |
||
Adjusted G&A expense % of revenue |
|
12.5 |
% |
|
|
12.9 |
% |
|
|
|
|
11.9 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
(2,274 |
) |
|
$ |
2,825 |
|
|
(180.5 |
)% |
|
$ |
1,235 |
|
|
(284.1 |
)% |
||
Net income (loss) margin |
|
(1.2 |
)% |
|
|
1.6 |
% |
|
|
|
|
0.7 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
11,271 |
|
|
$ |
17,119 |
|
|
(34.2 |
)% |
|
$ |
15,805 |
|
|
(28.7 |
)% |
||
Adjusted EBITDA margin |
|
6.1 |
% |
|
|
9.8 |
% |
|
|
|
|
8.7 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total hours (thousands) |
|
6,965 |
|
|
|
6,824 |
|
|
2.1 |
% |
|
|
7,074 |
|
|
(1.5 |
)% |
||
Revenue per hour |
$ |
26.36 |
|
|
$ |
25.52 |
|
|
3.3 |
% |
|
$ |
25.61 |
|
|
2.9 |
% |
||
Service expense per hour |
$ |
21.46 |
|
|
$ |
19.94 |
|
|
7.6 |
% |
|
$ |
20.40 |
|
|
5.2 |
% |
||
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison, thus, the percentage has been removed. |
Modivcare Inc. Unaudited Key Statistical and Financial Data (in thousands, except for statistical data) |
|||||||||||||||||||
|
Three months ended |
|
|
|
Three months
|
|
|||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
% Change |
|
December 31, 2023 |
QoQ % Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
RPM Segment |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
20,102 |
|
|
$ |
18,712 |
|
|
7.4 |
% |
|
$ |
20,239 |
|
|
(0.7 |
)% |
||
Service expense |
|
8,363 |
|
|
|
6,490 |
|
|
28.9 |
% |
|
|
6,896 |
|
|
21.3 |
% |
||
Gross profit |
$ |
11,739 |
|
|
$ |
12,222 |
|
|
(4.0 |
)% |
|
$ |
13,343 |
|
|
(12.0 |
)% |
||
Gross margin |
|
58.4 |
% |
|
|
65.3 |
% |
|
|
|
|
65.9 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
G&A expense |
$ |
5,440 |
|
|
$ |
5,769 |
|
|
(5.7 |
)% |
|
$ |
6,190 |
|
|
(12.1 |
)% |
||
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs |
|
10 |
|
|
|
— |
|
|
N/M |
|
|
|
— |
|
|
N/M |
|
||
Transaction and integration costs |
|
— |
|
|
|
32 |
|
|
(100.0 |
)% |
|
|
16 |
|
|
(100.0 |
)% |
||
Adjusted G&A expense |
$ |
5,430 |
|
|
$ |
5,737 |
|
|
(5.4 |
)% |
|
$ |
6,174 |
|
|
(12.1 |
)% |
||
Adjusted G&A expense % of revenue |
|
27.0 |
% |
|
|
30.7 |
% |
|
|
|
|
30.5 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
(308 |
) |
|
$ |
429 |
|
|
(171.8 |
)% |
|
$ |
10 |
|
|
N/M |
|
||
Net income (loss) margin |
|
(1.5 |
)% |
|
|
2.3 |
% |
|
|
|
|
— |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
6,309 |
|
|
$ |
6,485 |
|
|
(2.7 |
)% |
|
$ |
7,169 |
|
|
(12.0 |
)% |
||
Adjusted EBITDA margin |
|
31.4 |
% |
|
|
34.7 |
% |
|
|
|
|
35.4 |
% |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Average monthly members (thousands) |
|
249 |
|
|
|
235 |
|
|
6.0 |
% |
|
|
253 |
|
|
(1.6 |
)% |
||
Revenue per member per month |
$ |
26.91 |
|
|
$ |
26.54 |
|
|
1.4 |
% |
|
$ |
26.67 |
|
|
0.9 |
% |
||
Service expense per member per month |
$ |
11.20 |
|
|
$ |
9.21 |
|
|
21.6 |
% |
|
$ |
9.09 |
|
|
23.2 |
% |
||
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison, thus, the percentage has been removed. |
Modivcare Inc. Unaudited Key Statistical and Financial Data (in thousands) |
|||||||||||||||||||
|
Three months ended |
|
|
|
Three months
|
|
|||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
% Change |
|
December 31, 2023 |
QoQ % Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate and Other Segment |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
G&A expense |
$ |
15,485 |
|
|
$ |
17,406 |
|
|
(11.0 |
)% |
|
$ |
18,282 |
|
|
(15.3 |
)% |
||
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs |
|
1,729 |
|
|
|
7,346 |
|
|
(76.5 |
)% |
|
|
2,575 |
|
|
(32.9 |
)% |
||
Transaction and integration costs |
|
45 |
|
|
|
564 |
|
|
(92.0 |
)% |
|
|
74 |
|
|
(39.2 |
)% |
||
Settlement related costs |
|
— |
|
|
|
— |
|
|
N/M |
|
|
|
1,194 |
|
|
(100.0 |
)% |
||
Stock-based compensation |
|
1,781 |
|
|
|
848 |
|
|
110.0 |
% |
|
|
2,016 |
|
|
(11.7 |
)% |
||
Adjusted G&A expense |
$ |
11,930 |
|
|
$ |
8,648 |
|
|
38.0 |
% |
|
$ |
12,423 |
|
|
(4.0 |
)% |
||
Adjusted G&A expense % of consolidated revenue |
|
1.7 |
% |
|
|
1.3 |
% |
|
|
|
|
1.8 |
% |
|
|
||||
|
Three months ended |
|
|
|
Three months
|
|
|||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
% Change |
|
December 31, 2023 |
QoQ % Change |
|||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Modivcare Inc. |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
G&A expense |
$ |
77,177 |
|
|
$ |
79,713 |
|
|
(3.2 |
)% |
|
$ |
75,469 |
|
|
2.3 |
% |
||
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs |
|
5,105 |
|
|
|
14,445 |
|
|
(64.7 |
)% |
|
|
3,233 |
|
|
57.9 |
% |
||
Transaction and integration costs |
|
1,543 |
|
|
|
873 |
|
|
76.7 |
% |
|
|
1,796 |
|
|
(14.1 |
)% |
||
Settlement related costs |
|
— |
|
|
|
275 |
|
|
(100.0 |
)% |
|
|
1,194 |
|
|
(100.0 |
)% |
||
Stock-based compensation |
|
1,781 |
|
|
|
848 |
|
|
110.0 |
% |
|
|
2,016 |
|
|
(11.7 |
)% |
||
Adjusted G&A expense |
$ |
68,748 |
|
|
$ |
63,272 |
|
|
8.7 |
% |
|
$ |
67,230 |
|
|
2.3 |
% |
||
Adjusted G&A expense % of consolidated revenue |
|
10.0 |
% |
|
|
9.6 |
% |
|
|
|
|
9.6 |
% |
|
|
||||
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison, thus, the percentage has been removed. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502725659/en/
Investor Relations Contact
Kevin Ellich,
Head of Investor Relations
Kevin.Ellich@modivcare.com
Source: Modivcare Inc.
FAQ
What was Modivcare's service revenue in the first quarter of 2024?
What was the net loss in the first quarter of 2024?
What is the adjusted EBITDA for the first quarter of 2024?
How much did Modivcare win in NEMT total contract value in the first quarter of 2024?
What is Modivcare's guidance for fiscal year 2024 revenue?
