Modivcare Inc. (the “Company” or “Modivcare”) (Nasdaq: MODV), a technology-enabled healthcare services company that provides a platform of integrated supportive care solutions focused on improving health outcomes, today reported financial results for the three and nine months ended September 30, 2024.

Third Quarter 2024 Summary:

  • Service revenue of $702.0 million increased 2.2% from the third quarter of 2023
  • Net loss of $26.6 million, or negative $1.87 per diluted common share
  • Adjusted EBITDA(1) of $43.2 million, adjusted net income(1) of $6.4 million and adjusted EPS(1) of $0.45 per diluted common share
  • Cash provided by operating activities during the quarter of $9.3 million and free cash flow(2) of $1.5 million
  • Contract receivables, net of contract payables, of $63.1 million as of September 30, 2024
______________________________

(1)

Non-GAAP financial measure reconciliations and other related information about non-GAAP financial measures provided below.

(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 $7.7 million that is included in our purchase of property and equipment line in our Unaudited Condensed Consolidated Statements of Cash Flows provided below.

“This quarter has demonstrated positive momentum, reflected in both operational enhancements and strengthened relationships, even amid shifts in the broader healthcare market. We delivered solid third-quarter results, reporting $43 million of adjusted EBITDA and a 2% increase in consolidated revenue, driven primarily by 5% growth in our personal care services segment,” stated L. Heath Sampson, President and CEO. “During the quarter, we proactively amended our credit agreement, securing temporary relief on debt covenants. Our bank group continues to be constructive and supportive as we work toward a long-term solution for our covenants that provides us with the time to thoughtfully and strategically assess the best approach to de-lever our balance sheet and optimize value for stakeholders. Additionally, we achieved significant collections in contract receivables, reducing net receivables by $55 million, and we made meaningful progress in resetting our capitated payment thresholds within our shared risk NEMT contracts, as contractually designed. These actions are expected to improve our cash conversion cycle and enhance future free cash flow.”

Sampson continued, “Our transformation efforts have laid a strong foundation across each segment, positioning us to meet our client needs today while anticipating tomorrow’s demands in this dynamic market. Our strategic initiatives are driving substantial cost savings in our NEMT segment, with a strong deal pipeline encompassing new business, renewals, and expansions. Our personal care services segment is steadily growing with improving margins, while remote patient monitoring margins have risen to 37%, supported by operational efficiencies and delivering innovative value to our clients. We are confident in our ability to further differentiate our offerings, achieve cost savings, and drive growth in 2025. We remain fully committed to creating value within each segment, deleveraging our balance sheet, and ultimately enhancing stakeholder value.”

Guidance*

We affirm our revenue and adjusted EBITDA guidance ranges as follows ($ in millions):

 

 

Fiscal Year 2024

 

 

Revenue

 

$2,700 - $2,900

 

 

Adjusted EBITDA

 

$170 - $180

 

 

The Company continues to expect Adjusted EBITDA growth in excess of 10% in 2025, based on current 2024 guidance.

*Guidance excludes the effects of any future merger, acquisition or disposition activity and is based on the current operating environment.

Third Quarter 2024 Results

For the third quarter of 2024, the Company reported $702.0 million in revenue, a 2.2% increase from the $686.9 million reported in the third quarter of 2023. NEMT segment revenue grew by $6.3 million or 1.3% and PCS segment revenue grew by $8.5 million or 4.7%, while RPM segment revenue declined $0.3 million or 1.7%, as compared to the third quarter of 2023.

Our operating income was $5.3 million, or 0.7% of revenue, in the third quarter of 2024, compared to operating income of $12.0 million, or 1.8% of revenue, in the third quarter of 2023. Net loss in the third quarter of 2024 was $26.6 million, or negative $1.87 per diluted common share, compared to net loss of $4.3 million, or negative $0.30 per diluted common share in the third quarter of 2023. The increase in net loss for the third quarter of 2024 from the third quarter of 2023 was driven by an increase in interest expense of $10.6 million as well as a loss on extinguishment of debt of $11.8 million that was incurred during the third quarter of 2024 related to the refinancing of our Senior Notes due 2025.

Adjusted EBITDA was $43.2 million, or 6.2% of revenue, in the third quarter of 2024, compared to $51.3 million, or 7.5% of revenue, in the third quarter of 2023. Adjusted net income in the third quarter of 2024 was $6.4 million, or $0.45 per diluted common share, compared to adjusted net income of $20.5 million, or $1.44 per diluted common share, in the third quarter of 2023.

Cash provided by operations during the quarter was $9.3 million as compared to $53.5 million of cash provided by operations during the third quarter of 2023. Changes in operating assets and liabilities during the quarter include a decrease in contract receivables of $55.4 million, net, and a decrease in contract payables of $39.6 million, net. Net cash used in investing activities during the quarter was $7.7 million, primarily due to capitalized investments in technology and purchases of monitoring devices. Net cash provided by financing activities during the quarter was $36.3 million, which resulted in a quarter ended balance on the Company's revolving credit facility of $228.0 million.

During the third quarter, the Company successfully refinanced its $500.0 million Senior Unsecured Notes due 2025 at a redemption premium of 1.469% on the aggregate original principal amount of the 2025 Notes. The 2025 Notes were redeemed in conjunction with the funding of a Term Loan Facility in an aggregate principal amount of $525.0 million.

Third Quarter 2024 Earnings Conference Call

Modivcare will hold a conference call to discuss its financial results on Thursday, November 7, 2024 at 8:30 a.m. ET. To access the call, please dial:

US toll-free: 1 (888) 437-3179 International: 1 (862) 298-0702

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 U.S. To learn more about Modivcare, please visit www.modivcare.com.

Non-GAAP Financial Measures and Adjustments

In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"), the information contained herein may include presentations for the Company and its segments (as noted and applicable) of: (1) EBITDA, Adjusted EBITDA, Adjusted G&A expense, Adjusted EBITDA margin, Adjusted Net Income (Loss), and Adjusted EPS, all of which are non-GAAP financial measures considered by management to be performance measures; and (2) free cash flow, which is a non-GAAP financial measure considered by management to be a liquidity measure. EBITDA is defined as net income (loss) before: (1) interest expense, net; (2) provision (benefit) for income taxes; and (3) depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before (as applicable): (1) restructuring and related costs; (2) transaction and integration costs; (3) settlement related costs; (4) a one-time payor collection settlement; (5) stock-based compensation; (6) impairment of goodwill; (7) loss on debt extinguishment; and (8) equity in net (income) loss of investee, net of tax. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by service revenue, net. Adjusted Net Income (Loss) is calculated as net income (loss) before (as applicable): (1) restructuring and related costs; (2) transaction and integration costs; (3) settlement related costs; (4) a one-time payor collection settlement; (5) stock-based compensation; (6) impairment of goodwill; (7) loss on debt extinguishment; (8) equity in net (income) loss of investee, net of tax; (9) intangible asset amortization expense; and (10) the income tax impact of such adjustments. Adjusted EPS is calculated as Adjusted Net Income (Loss) divided by the diluted weighted-average number of common shares outstanding as calculated for Adjusted Net Income (Loss). Adjusted G&A expense is calculated as G&A expense before (as applicable): (1) restructuring and related costs; (2) transaction and integration costs; (3) settlement related costs; and (4) stock-based compensation. Free cash flow is calculated as cash flow from operations less our applicable capital expenditures included in our purchase of property and equipment line in our Consolidated Statements of Cash Flows.

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 New York; becoming subject to malpractice, professional negligence, medical liability or other similar claims; our operating in the competitive remote patient monitoring industry, and failing to develop and enhance related technology applications; any failure to innovate and provide services that are useful to customers and to achieve and maintain market acceptance; our lack of sole decision-making authority with respect to our minority investment in Matrix and any failure by Matrix to achieve positive financial position and results of operations; any legal challenges to the relationships or arrangements between our virtual clinical care management services and the unaffiliated physician-owned professional corporation through which such services are provided; any failure to comply with applicable data interoperability and information blocking rules; the lapse of temporary telehealth flexibilities currently permitted under the Consolidated Appropriations Act of 2023; the cost of our compliance with laws; changes to the regulatory landscape applicable to our businesses; changes in budgetary priorities of the government entities or private insurance programs that fund our services; regulations relating to privacy and security of patient and service user information; actions for false claims or recoupment of funds; civil penalties or loss of business for failing to comply with bribery, corruption and other regulations governing business with public organizations; increasing scrutiny and changing expectations with respect to environmental, social and governance matters; changes to, or violations of, licensing regulations, including regulations governing surveys and audits; our contracts being subject to audit and modification by the payors with whom we contract; a loss of Medicaid coverage by a significant number of Medicaid beneficiaries following the expiration of the COVID-19 public health emergency under the Families First Coronavirus Response Act (2020); our existing debt agreements containing restrictions, financial covenants and cross-default provisions that limit our flexibility in operating our business; our substantial indebtedness and lease obligations and ability to generate or distribute sufficient cash to service our indebtedness; the expiration of our existing credit agreement or any loss of available financing alternatives; our ability to incur substantial additional indebtedness or to issue additional equity; the results of the remediation of our identified material weaknesses in internal control over financial reporting; future sales of our common stock by existing stockholders; any stock price volatility; our dependence on our subsidiaries to fund our operations and expenses; securities analysts failing to publish research or publishing misleading or unfavorable research about us; and the effects of applicable anti-takeover provisions.

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 September 30,

 

Nine months ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

Service revenue, net

$

702,037

 

 

$

686,925

 

 

$

2,084,787

 

 

$

2,048,338

 

Grant income

 

 

 

 

551

 

 

 

 

 

 

4,649

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Service expense

 

597,934

 

 

 

579,214

 

 

 

1,769,600

 

 

 

1,718,735

 

General and administrative expense

 

70,903

 

 

 

70,142

 

 

 

224,145

 

 

 

229,095

 

Depreciation and amortization

 

27,940

 

 

 

26,077

 

 

 

82,795

 

 

 

77,679

 

Impairment of goodwill

 

 

 

 

 

 

 

105,302

 

 

 

183,100

 

Total operating expenses

 

696,777

 

 

 

675,433

 

 

 

2,181,842

 

 

 

2,208,609

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

5,260

 

 

 

12,043

 

 

 

(97,055

)

 

 

(155,622

)

 

 

 

 

 

 

 

 

Interest expense, net

 

28,493

 

 

 

17,844

 

 

 

67,129

 

 

 

50,769

 

Loss on debt extinguishment

 

11,797

 

 

 

 

 

 

11,797

 

 

 

 

Loss before income taxes and equity method investment

 

(35,030

)

 

 

(5,801

)

 

 

(175,981

)

 

 

(206,391

)

Income tax benefit

 

11,070

 

 

 

1,659

 

 

 

2,055

 

 

 

4,362

 

Equity in net income (loss) of investee, net of tax

 

(2,644

)

 

 

(160

)

 

 

(3,862

)

 

 

2,821

 

Net loss

$

(26,604

)

 

$

(4,302

)

 

$

(177,788

)

 

$

(199,208

)

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

Basic

$

(1.87

)

 

$

(0.30

)

 

$

(12.50

)

 

$

(14.06

)

Diluted

$

(1.87

)

 

$

(0.30

)

 

$

(12.50

)

 

$

(14.06

)

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

Basic

 

14,253,192

 

 

 

14,182,839

 

 

 

14,224,155

 

 

 

14,169,537

 

Diluted

 

14,253,192

 

 

 

14,182,839

 

 

 

14,224,155

 

 

 

14,169,537

 

 

Modivcare Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

48,336

 

 

$

2,217

Accounts receivable, net

 

248,683

 

 

 

222,537

Contract receivables

 

110,431

 

 

 

143,960

Other current assets(1)

 

55,999

 

 

 

36,209

Total current assets

 

463,449

 

 

 

404,923

Property and equipment, net

 

84,451

 

 

 

85,629

Goodwill

 

680,252

 

 

 

785,554

Intangible assets, net

 

301,598

 

 

 

360,935

Equity investment

 

35,835

 

 

 

41,531

Operating lease right-of-use assets

 

39,839

 

 

 

39,776

Other long-term assets

 

46,324

 

 

 

48,927

Total assets

$

1,651,748

 

 

$

1,767,275

 

 

 

 

Liabilities and stockholders' equity (deficit)

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

52,109

 

 

$

55,241

Accrued contract payables

 

47,300

 

 

 

117,488

Accrued expenses and other current liabilities

 

145,289

 

 

 

127,901

Accrued transportation costs

 

95,023

 

 

 

97,245

Current portion of operating lease liabilities

 

8,548

 

 

 

8,727

Short-term debt

 

233,250

 

 

 

113,800

Total current liabilities

 

581,519

 

 

 

520,402

Long-term debt, net of deferred financing costs

 

986,125

 

 

 

983,757

Operating lease liabilities, less current portion

 

34,364

 

 

 

33,784

Other long-term liabilities(2)

 

66,736

 

 

 

73,137

Total liabilities

 

1,668,744

 

 

 

1,611,080

 

 

 

 

Stockholders' equity (deficit)

 

 

 

Stockholders' equity (deficit)

 

(16,996

)

 

 

156,195

Total liabilities and stockholders' equity (deficit)

$

1,651,748

 

 

$

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 September 30,

 

Nine months ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating activities

 

 

 

 

 

 

 

Net loss

$

(26,604

)

 

$

(4,302

)

 

$

(177,788

)

 

$

(199,208

)

Depreciation and amortization

 

27,940

 

 

 

26,077

 

 

 

82,795

 

 

 

77,679

 

Stock-based compensation

 

530

 

 

 

1,743

 

 

 

4,792

 

 

 

4,029

 

Equity in net (income) loss of investee

 

3,670

 

 

 

222

 

 

 

5,360

 

 

 

(3,915

)

Deferred income taxes

 

(12,340

)

 

 

(4,971

)

 

 

(6,753

)

 

 

(15,235

)

Impairment of goodwill

 

 

 

 

 

 

 

105,302

 

 

 

183,100

 

Loss on debt extinguishment

 

11,797

 

 

 

 

 

 

11,797

 

 

 

 

Reduction of right-of-use asset

 

2,370

 

 

 

2,924

 

 

 

7,289

 

 

 

9,875

 

Other non-cash items(1)

 

1,894

 

 

 

1,331

 

 

 

4,752

 

 

 

3,907

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Contract receivables

 

48,914

 

 

 

(9,512

)

 

 

33,528

 

 

 

(58,143

)

Contract payables

 

(39,594

)

 

 

24,483

 

 

 

(70,188

)

 

 

(60,710

)

Long-term contract receivables

 

6,512

 

 

 

 

 

 

 

 

 

427

 

Other changes in operating assets and liabilities(2)

 

(15,816

)

 

 

15,552

 

 

 

(37,339

)

 

 

867

 

Net cash provided by (used in) operating activities

 

9,273

 

 

 

53,547

 

 

 

(36,453

)

 

 

(57,327

)

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(7,728

)

 

 

(8,878

)

 

 

(22,281

)

 

 

(31,143

)

Net cash used in investing activities

 

(7,728

)

 

 

(8,878

)

 

 

(22,281

)

 

 

(31,143

)

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

Net proceeds from short-term debt

 

45,000

 

 

 

(43,500

)

 

 

114,200

 

 

 

83,000

 

Issuance of long-term debt

 

525,000

 

 

 

 

 

 

525,000

 

 

 

 

Repayment of long-term debt

 

(508,657

)

 

 

 

 

 

(508,657

)

 

 

 

Payments of debt issuance costs

 

(24,649

)

 

 

 

 

 

(25,512

)

 

 

(376

)

Restricted stock surrendered for employee tax payment

 

(435

)

 

 

(21

)

 

 

(591

)

 

 

(861

)

Other financing activities

 

(2

)

 

 

 

 

 

396

 

 

 

346

 

Net cash provided by (used in) financing activities

 

36,257

 

 

 

(43,521

)

 

 

104,836

 

 

 

82,109

 

 

 

 

 

 

 

 

 

Net change in cash, cash equivalents and restricted cash

 

37,802

 

 

 

1,148

 

 

 

46,102

 

 

 

(6,361

)

Cash, cash equivalents and restricted cash at beginning of period

 

11,082

 

 

 

7,466

 

 

 

2,782

 

 

 

14,975

 

Cash, cash equivalents and restricted cash at end of period

$

48,884

 

 

$

8,614

 

 

$

48,884

 

 

$

8,614

 

(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 and other changes in operating assets and liabilities.

 

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Three months ended September 30, 2024

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

492,253

 

 

$

188,518

 

 

$

19,448

 

 

$

1,818

 

 

$

702,037

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

436,549

 

 

 

151,745

 

 

 

8,018

 

 

 

1,622

 

 

 

597,934

 

General and administrative expense

 

30,758

 

 

 

23,823

 

 

 

4,332

 

 

 

11,990

 

 

 

70,903

 

Depreciation and amortization

 

7,645

 

 

 

12,918

 

 

 

7,073

 

 

 

304

 

 

 

27,940

 

Total operating expenses

 

474,952

 

 

 

188,486

 

 

 

19,423

 

 

 

13,916

 

 

 

696,777

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

17,301

 

 

 

32

 

 

 

25

 

 

 

(12,098

)

 

 

5,260

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

28,493

 

 

 

28,493

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

11,797

 

 

 

11,797

 

Income (loss) before income taxes and equity method investment

 

17,301

 

 

 

32

 

 

 

25

 

 

 

(52,388

)

 

 

(35,030

)

Income tax benefit (provision)

 

(4,490

)

 

 

(24

)

 

 

(7

)

 

 

15,591

 

 

 

11,070

 

Equity in net income (loss) of investee, net of tax

 

151

 

 

 

 

 

 

 

 

 

(2,795

)

 

 

(2,644

)

Net income (loss)

 

12,962

 

 

 

8

 

 

 

18

 

 

 

(39,592

)

 

 

(26,604

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

28,493

 

 

 

28,493

 

Income tax provision (benefit)

 

4,490

 

 

 

24

 

 

 

7

 

 

 

(15,591

)

 

 

(11,070

)

Depreciation and amortization

 

7,645

 

 

 

12,918

 

 

 

7,073

 

 

 

304

 

 

 

27,940

 

EBITDA

 

25,097

 

 

 

12,950

 

 

 

7,098

 

 

 

(26,386

)

 

 

18,759

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

249

 

 

 

15

 

 

 

45

 

 

 

 

 

 

309

 

Transaction and integration costs

 

 

 

 

146

 

 

 

2

 

 

 

1,219

 

 

 

1,367

 

Settlement related costs

 

 

 

 

2,610

 

 

 

 

 

 

 

 

 

2,610

 

Payor collection settlement(2)

 

5,368

 

 

 

 

 

 

 

 

 

 

 

 

5,368

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

340

 

 

 

340

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

11,797

 

 

 

11,797

 

Equity in net (income) loss of investee, net of tax

 

(151

)

 

 

 

 

 

 

 

 

2,795

 

 

 

2,644

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

30,563

 

 

$

15,721

 

 

$

7,145

 

 

$

(10,235

)

 

$

43,194

 

(1)

Restructuring and related costs include professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees.

(2)

Amount represents a one-time, non-recurring settlement in connection with a dispute with a payor for which the Company will cease performing services beginning in 2025, which resulted in an adjustment to historical contracts receivable recorded for the payor beginning with calendar year 2021.

 

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Three months ended September 30, 2023

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

485,951

 

 

$

179,979

 

 

$

19,779

 

 

$

1,216

 

 

$

686,925

 

Grant income

 

 

 

 

551

 

 

 

 

 

 

 

 

 

551

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

428,021

 

 

 

143,078

 

 

 

6,934

 

 

 

1,181

 

 

 

579,214

 

General and administrative expense

 

25,433

 

 

 

20,252

 

 

 

5,685

 

 

 

18,772

 

 

 

70,142

 

Depreciation and amortization

 

6,814

 

 

 

12,850

 

 

 

6,174

 

 

 

239

 

 

 

26,077

 

Total operating expenses

 

460,268

 

 

 

176,180

 

 

 

18,793

 

 

 

20,192

 

 

 

675,433

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

25,683

 

 

 

4,350

 

 

 

986

 

 

 

(18,976

)

 

 

12,043

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

17,844

 

 

 

17,844

 

Income (loss) before income taxes and equity method investment

 

25,683

 

 

 

4,350

 

 

 

986

 

 

 

(36,820

)

 

 

(5,801

)

Income tax benefit (provision)

 

(6,994

)

 

 

(1,208

)

 

 

(279

)

 

 

10,140

 

 

 

1,659

 

Equity in net income (loss) of investee, net of tax

 

142

 

 

 

 

 

 

 

 

 

(302

)

 

 

(160

)

Net income (loss)

 

18,831

 

 

 

3,142

 

 

 

707

 

 

 

(26,982

)

 

 

(4,302

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

17,844

 

 

 

17,844

 

Income tax provision (benefit)

 

6,994

 

 

 

1,208

 

 

 

279

 

 

 

(10,140

)

 

 

(1,659

)

Depreciation and amortization

 

6,814

 

 

 

12,850

 

 

 

6,174

 

 

 

239

 

 

 

26,077

 

EBITDA

 

32,639

 

 

 

17,200

 

 

 

7,160

 

 

 

(19,039

)

 

 

37,960

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

2,711

 

 

 

 

 

 

 

 

 

6,205

 

 

 

8,916

 

Transaction and integration costs(2)

 

101

 

 

 

431

 

 

 

22

 

 

 

605

 

 

 

1,159

 

Settlement related costs

 

(25

)

 

 

 

 

 

 

 

 

1,474

 

 

 

1,449

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

1,690

 

 

 

1,690

 

Equity in net (income) loss of investee, net of tax

 

(142

)

 

 

 

 

 

 

 

 

302

 

 

 

160

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

35,284

 

 

$

17,631

 

 

$

7,182

 

 

$

(8,763

)

 

$

51,334

 

(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

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Nine months ended September 30, 2024

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

1,462,236

 

 

$

558,696

 

 

$

58,575

 

 

$

5,280

 

 

$

2,084,787

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

1,288,162

 

 

 

451,049

 

 

 

24,556

 

 

 

5,833

 

 

 

1,769,600

 

General and administrative expense

 

95,701

 

 

 

72,152

 

 

 

15,780

 

 

 

40,512

 

 

 

224,145

 

Depreciation and amortization

 

22,602

 

 

 

38,506

 

 

 

20,834

 

 

 

853

 

 

 

82,795

 

Impairment of goodwill

 

 

 

 

 

 

 

105,302

 

 

 

 

 

 

105,302

 

Total operating expenses

 

1,406,465

 

 

 

561,707

 

 

 

166,472

 

 

 

47,198

 

 

 

2,181,842

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

55,771

 

 

 

(3,011

)

 

 

(107,897

)

 

 

(41,918

)

 

 

(97,055

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

67,129

 

 

 

67,129

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

11,797

 

 

 

11,797

 

Income (loss) before income taxes and equity method investment

 

55,771

 

 

 

(3,011

)

 

 

(107,897

)

 

 

(120,844

)

 

 

(175,981

)

Income tax benefit (provision)

 

(14,512

)

 

 

866

 

 

 

726

 

 

 

14,975

 

 

 

2,055

 

Equity in net income (loss) of investee, net of tax

 

269

 

 

 

 

 

 

 

 

 

(4,131

)

 

 

(3,862

)

Net income (loss)

 

41,528

 

 

 

(2,145

)

 

 

(107,171

)

 

 

(110,000

)

 

 

(177,788

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

67,129

 

 

 

67,129

 

Income tax provision (benefit)

 

14,512

 

 

 

(866

)

 

 

(726

)

 

 

(14,975

)

 

 

(2,055

)

Depreciation and amortization

 

22,602

 

 

 

38,506

 

 

 

20,834

 

 

 

853

 

 

 

82,795

 

EBITDA

 

78,642

 

 

 

35,495

 

 

 

(87,063

)

 

 

(56,993

)

 

 

(29,919

)

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

9,192

 

 

 

1,321

 

 

 

1,244

 

 

 

1,638

 

 

 

13,395

 

Transaction and integration costs

 

52

 

 

 

2,023

 

 

 

102

 

 

 

1,293

 

 

 

3,470

 

Settlement related costs

 

 

 

 

3,415

 

 

 

 

 

 

 

 

 

3,415

 

Payor collection settlement(2)

 

5,368

 

 

 

 

 

 

 

 

 

 

 

 

5,368

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

4,090

 

 

 

4,090

 

Impairment of goodwill

 

 

 

 

 

 

 

105,302

 

 

 

 

 

 

105,302

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

11,797

 

 

 

11,797

 

Equity in net (income) loss of investee, net of tax

 

(269

)

 

 

 

 

 

 

 

 

4,131

 

 

 

3,862

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

92,985

 

 

$

42,254

 

 

$

19,585

 

 

$

(34,044

)

 

$

120,780

 

(1)

Restructuring and related costs include professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees.

(2)

Amount represents a one-time, non-recurring settlement in connection with a dispute with a payor for which the Company will cease performing services beginning in 2025, which resulted in an adjustment to historical contracts receivable recorded for the payor beginning with calendar year 2021.

 

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Nine months ended September 30, 2023

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

1,452,389

 

 

$

534,435

 

 

$

57,702

 

 

$

3,812

 

 

$

2,048,338

 

Grant income

 

 

 

 

4,649

 

 

 

 

 

 

 

 

 

4,649

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

1,277,604

 

 

 

417,636

 

 

 

20,129

 

 

 

3,366

 

 

 

1,718,735

 

General and administrative expense

 

87,645

 

 

 

63,480

 

 

 

16,781

 

 

 

61,189

 

 

 

229,095

 

Depreciation and amortization

 

20,319

 

 

 

38,590

 

 

 

18,087

 

 

 

683

 

 

 

77,679

 

Impairment of goodwill

 

 

 

 

137,331

 

 

 

45,769

 

 

 

 

 

 

183,100

 

Total operating expenses

 

1,385,568

 

 

 

657,037

 

 

 

100,766

 

 

 

65,238

 

 

 

2,208,609

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

66,821

 

 

 

(117,953

)

 

 

(43,064

)

 

 

(61,426

)

 

 

(155,622

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

50,769

 

 

 

50,769

 

Income (loss) before income taxes and equity method investment

 

66,821

 

 

 

(117,953

)

 

 

(43,064

)

 

 

(112,195

)

 

 

(206,391

)

Income tax benefit (provision)

 

(18,014

)

 

 

(5,452

)

 

 

(765

)

 

 

28,593

 

 

 

4,362

 

Equity in net income of investee, net of tax

 

984

 

 

 

 

 

 

 

 

 

1,837

 

 

 

2,821

 

Net income (loss)

 

49,791

 

 

 

(123,405

)

 

 

(43,829

)

 

 

(81,765

)

 

 

(199,208

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

50,769

 

 

 

50,769

 

Income tax provision (benefit)

 

18,014

 

 

 

5,452

 

 

 

765

 

 

 

(28,593

)

 

 

(4,362

)

Depreciation and amortization

 

20,319

 

 

 

38,590

 

 

 

18,087

 

 

 

683

 

 

 

77,679

 

EBITDA

 

88,124

 

 

 

(79,363

)

 

 

(24,977

)

 

 

(58,906

)

 

 

(75,122

)

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

11,865

 

 

 

 

 

 

 

 

 

21,606

 

 

 

33,471

 

Transaction and integration costs(2)

 

101

 

 

 

881

 

 

 

70

 

 

 

1,834

 

 

 

2,886

 

Settlement related costs

 

250

 

 

 

 

 

 

 

 

 

8,683

 

 

 

8,933

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

3,485

 

 

 

3,485

 

Impairment of goodwill

 

 

 

 

137,331

 

 

 

45,769

 

 

 

 

 

 

183,100

 

Equity in net income of investee, net of tax

 

(984

)

 

 

 

 

 

 

 

 

(1,837

)

 

 

(2,821

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

99,356

 

 

$

58,849

 

 

$

20,862

 

 

$

(25,135

)

 

$

153,932

 

(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 and Adjusted Net Income per Common Share

(in thousands, except share and per share data)

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

Net loss

$

(26,604

)

 

$

(4,302

)

 

$

(177,788

)

 

$

(199,208

)

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

309

 

 

 

8,916

 

 

 

13,395

 

 

 

33,471

 

Transaction and integration costs(2)

 

1,367

 

 

 

1,159

 

 

 

3,470

 

 

 

2,886

 

Settlement related costs

 

2,610

 

 

 

1,449

 

 

 

3,415

 

 

 

8,933

 

Payor collection settlement(3)

 

5,368

 

 

 

 

 

 

5,368

 

 

 

 

Stock-based compensation

 

340

 

 

 

1,690

 

 

 

4,090

 

 

 

3,485

 

Impairment of goodwill

 

 

 

 

 

 

 

105,302

 

 

 

183,100

 

Loss on debt extinguishment

 

11,797

 

 

 

 

 

 

11,797

 

 

 

 

Equity in net (income) loss of investee, net of tax

 

2,644

 

 

 

160

 

 

 

3,862

 

 

 

(2,821

)

Intangible asset amortization expense

 

19,715

 

 

 

19,748

 

 

 

59,259

 

 

 

59,457

 

Tax effected impact of adjustments

 

(11,144

)

 

 

(8,327

)

 

 

(27,063

)

 

 

(27,833

)

 

 

 

 

 

 

 

 

Adjusted net income

$

6,402

 

 

$

20,493

 

 

$

5,107

 

 

$

61,470

 

 

 

 

 

 

 

 

 

Adjusted earnings per share

$

0.45

 

 

$

1.44

 

 

$

0.36

 

 

$

4.33

 

 

 

 

 

 

 

 

 

Diluted weighted-average number of common shares outstanding

 

14,262,751

 

 

 

14,218,141

 

 

 

14,251,313

 

 

 

14,209,787

 

(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.

(3)

Amount represents a one-time, non-recurring settlement in connection with a dispute with a payor for which the Company will cease performing services beginning in 2025, which resulted in an adjustment to historical contracts receivable recorded for the payor beginning with calendar year 2021.

 

Modivcare Inc.

Unaudited Key Statistical and Financial Data

(in thousands, except for statistical data)

 

 

Three months ended

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30, 2024

 

September 30, 2023

 

% Change

 

September 30, 2024

 

September 30, 2023

 

% Change

 

June 30, 2024

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEMT Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

492,253

 

 

$

485,951

 

 

1.3

%

 

$

1,462,236

 

 

$

1,452,389

 

 

0.7

%

 

$

490,677

 

 

0.3

%

Purchased services expense

 

383,769

 

 

 

363,594

 

 

5.5

%

 

 

1,119,248

 

 

 

1,085,206

 

 

3.1

%

 

 

372,579

 

 

3.0

%

Payroll and other expense

 

52,780

 

 

 

64,427

 

 

(18.1

)%

 

 

168,914

 

 

 

192,398

 

 

(12.2

)%

 

 

55,377

 

 

(4.7

)%

Service expense

$

436,549

 

 

$

428,021

 

 

2.0

%

 

$

1,288,162

 

 

$

1,277,604

 

 

0.8

%

 

$

427,956

 

 

2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

55,704

 

 

$

57,930

 

 

(3.8

)%

 

$

174,074

 

 

$

174,785

 

 

(0.4

)%

 

$

62,721

 

 

(11.2

)%

Gross margin

 

11.3

%

 

 

11.9

%

 

 

 

 

11.9

%

 

 

12.0

%

 

 

 

 

12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

30,758

 

 

$

25,433

 

 

20.9

%

 

$

95,701

 

 

$

87,645

 

 

9.2

%

 

$

33,123

 

 

(7.1

)%

G&A expense adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

249

 

 

 

2,711

 

 

(90.8

)%

 

 

9,192

 

 

 

11,865

 

 

(22.5

)%

 

 

5,704

 

 

(95.6

)%

Transaction and integration costs

 

 

 

 

101

 

 

(100.0

)%

 

 

52

 

 

 

101

 

 

(48.5

)%

 

 

 

 

N/M

 

Settlement related costs

 

 

 

 

(25

)

 

(100.0

)%

 

 

 

 

 

250

 

 

(100.0

)%

 

 

 

 

N/M

 

Adjusted G&A expense

$

30,509

 

 

$

22,646

 

 

34.7

%

 

$

86,457

 

 

$

75,429

 

 

14.6

%

 

$

27,419

 

 

11.3

%

Adjusted G&A expense % of revenue

 

6.2

%

 

 

4.7

%

 

 

 

 

5.9

%

 

 

5.2

%

 

 

 

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

12,962

 

 

$

18,831

 

 

(31.2

)%

 

$

41,528

 

 

$

49,791

 

 

(16.6

)%

 

$

16,398

 

 

(21.0

)%

Net income margin

 

2.6

%

 

 

3.9

%

 

 

 

 

2.8

%

 

 

3.4

%

 

 

 

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

30,563

 

 

$

35,284

 

 

(13.4

)%

 

$

92,985

 

 

$

99,356

 

 

(6.4

)%

 

$

35,302

 

 

(13.4

)%

Adjusted EBITDA margin

 

6.2

%

 

 

7.3

%

 

 

 

 

6.4

%

 

 

6.8

%

 

 

 

 

7.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total paid trips (thousands)

 

9,418

 

 

 

8,824

 

 

6.7

%

 

 

27,257

 

 

 

25,761

 

 

5.8

%

 

 

9,031

 

 

4.3

%

Average monthly members (thousands)

 

30,023

 

 

 

33,660

 

 

(10.8

)%

 

 

29,599

 

 

 

33,892

 

 

(12.7

)%

 

 

29,703

 

 

1.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per member per month

$

5.47

 

 

$

4.81

 

 

13.7

%

 

$

5.49

 

 

$

4.76

 

 

15.3

%

 

$

5.51

 

 

(0.7

)%

Revenue per trip

$

52.27

 

 

$

55.07

 

 

(5.1

)%

 

$

53.65

 

 

$

56.38

 

 

(4.8

)%

 

$

54.33

 

 

(3.8

)%

Monthly utilization

 

10.5

%

 

 

8.7

%

 

 

 

 

10.2

%

 

 

8.4

%

 

 

 

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased services per trip

$

40.75

 

 

$

41.21

 

 

(1.1

)%

 

$

41.06

 

 

$

42.13

 

 

(2.5

)%

 

$

41.26

 

 

(1.2

)%

Payroll and other per trip

$

5.60

 

 

$

7.30

 

 

(23.3

)%

 

$

6.20

 

 

$

7.47

 

 

(17.0

)%

 

$

6.13

 

 

(8.6

)%

Total service expense per trip

$

46.35

 

 

$

48.51

 

 

(4.5

)%

 

$

47.26

 

 

$

49.60

 

 

(4.7

)%

 

$

47.39

 

 

(2.2

)%

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

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30, 2024

 

September 30, 2023

 

% Change

 

September 30, 2024

 

September 30, 2023

 

% Change

 

June 30, 2024

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCS Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

188,518

 

 

$

179,979

 

 

4.7

%

 

$

558,696

 

 

$

534,435

 

 

4.5

%

 

$

186,610

 

 

1.0

%

Service expense

 

151,745

 

 

 

143,078

 

 

6.1

%

 

 

451,049

 

 

 

417,636

 

 

8.0

%

 

 

149,866

 

 

1.3

%

Gross profit

$

36,773

 

 

$

36,901

 

 

(0.3

)%

 

$

107,647

 

 

$

116,799

 

 

(7.8

)%

 

$

36,744

 

 

0.1

%

Gross margin

 

19.5

%

 

 

20.5

%

 

 

 

 

19.3

%

 

 

21.9

%

 

 

 

 

19.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

23,823

 

 

$

20,252

 

 

17.6

%

 

$

72,152

 

 

$

63,480

 

 

13.7

%

 

$

23,897

 

 

(0.3

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

15

 

 

 

 

 

N/M

 

 

 

1,321

 

 

 

 

 

N/M

 

 

 

1,179

 

 

(98.7

)%

Transaction and integration costs

 

146

 

 

 

431

 

 

(66.1

)%

 

 

2,023

 

 

 

881

 

 

129.6

%

 

 

431

 

 

(66.1

)%

Settlement related costs

 

2,610

 

 

 

 

 

N/M

 

 

 

3,415

 

 

 

 

 

N/M

 

 

 

805

 

 

224.2

%

Adjusted G&A expense

$

21,052

 

 

$

19,821

 

 

6.2

%

 

$

65,393

 

 

$

62,599

 

 

4.5

%

 

$

21,482

 

 

(2.0

)%

Adjusted G&A expense % of revenue

 

11.2

%

 

 

11.0

%

 

 

 

 

11.7

%

 

 

11.7

%

 

 

 

 

11.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

8

 

 

$

3,142

 

 

(99.7

)%

 

$

(2,145

)

 

$

(123,405

)

 

(98.3

)%

 

$

121

 

 

(93.4

)%

Net income (loss) margin

 

%

 

 

1.7

%

 

 

 

 

(0.4

)%

 

 

(23.1

)%

 

 

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

15,721

 

 

$

17,631

 

 

(10.8

)%

 

$

42,254

 

 

$

58,849

 

 

(28.2

)%

 

$

15,262

 

 

3.0

%

Adjusted EBITDA margin

 

8.3

%

 

 

9.8

%

 

 

 

 

7.6

%

 

 

11.0

%

 

 

 

 

8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total hours (thousands)

 

7,174

 

 

 

6,995

 

 

2.6

%

 

 

21,187

 

 

 

20,752

 

 

2.1

%

 

 

7,048

 

 

1.8

%

Revenue per hour

$

26.28

 

 

$

25.73

 

 

2.1

%

 

$

26.37

 

 

$

25.75

 

 

2.4

%

 

$

26.48

 

 

(0.8

)%

Service expense per hour

$

21.15

 

 

$

20.45

 

 

3.4

%

 

$

21.29

 

 

$

20.13

 

 

5.8

%

 

$

21.26

 

 

(0.5

)%

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

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30, 2024

 

September 30, 2023

 

% Change

 

September 30, 2024

 

September 30, 2023

 

% Change

 

June 30, 2024

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RPM Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

19,448

 

 

$

19,779

 

 

(1.7

)%

 

$

58,575

 

 

$

57,702

 

 

1.5

%

 

$

19,025

 

 

2.2

%

Service expense

 

8,018

 

 

 

6,934

 

 

15.6

%

 

 

24,556

 

 

 

20,129

 

 

22.0

%

 

 

8,175

 

 

(1.9

)%

Gross profit

$

11,430

 

 

$

12,845

 

 

(11.0

)%

 

$

34,019

 

 

$

37,573

 

 

(9.5

)%

 

$

10,850

 

 

5.3

%

Gross margin

 

58.8

%

 

 

64.9

%

 

 

 

 

58.1

%

 

 

65.1

%

 

 

 

 

57.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

4,332

 

 

$

5,685

 

 

(23.8

)%

 

$

15,780

 

 

$

16,781

 

 

(6.0

)%

 

$

6,008

 

 

(27.9

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

45

 

 

 

 

 

N/M

 

 

 

1,244

 

 

 

 

 

N/M

 

 

 

1,189

 

 

(96.2

)%

Transaction and integration costs

 

2

 

 

 

22

 

 

(90.9

)%

 

 

102

 

 

 

70

 

 

45.7

%

 

 

100

 

 

(98.0

)%

Adjusted G&A expense

$

4,285

 

 

$

5,663

 

 

(24.3

)%

 

$

14,434

 

 

$

16,711

 

 

(13.6

)%

 

$

4,719

 

 

(9.2

)%

Adjusted G&A expense % of revenue

 

22.0

%

 

 

28.6

%

 

 

 

 

24.6

%

 

 

29.0

%

 

 

 

 

24.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

18

 

 

$

707

 

 

(97.5

)%

 

$

(107,171

)

 

$

(43,829

)

 

144.5

%

 

$

(106,881

)

 

(100.0

)%

Net income (loss) margin

 

0.1

%

 

 

3.6

%

 

 

 

 

(183.0

)%

 

 

(76.0

)%

 

 

 

 

(561.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

7,145

 

 

$

7,182

 

 

(0.5

)%

 

$

19,585

 

 

$

20,862

 

 

(6.1

)%

 

$

6,131

 

 

16.5

%

Adjusted EBITDA margin

 

36.7

%

 

 

36.3

%

 

 

 

 

33.4

%

 

 

36.2

%

 

 

 

 

32.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average monthly members (thousands)

 

246

 

 

 

247

 

 

(0.4

)%

 

 

247

 

 

 

241

 

 

2.5

%

 

 

246

 

 

%

Revenue per member per month

$

26.35

 

 

$

26.69

 

 

(1.3

)%

 

$

26.35

 

 

$

26.60

 

 

(0.9

)%

 

$

25.78

 

 

2.2

%

Service expense per member per month

$

10.86

 

 

$

9.36

 

 

16.0

%

 

$

11.05

 

 

$

9.28

 

 

19.1

%

 

$

11.08

 

 

(2.0

)%

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

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30, 2024

 

September 30, 2023

 

% Change

 

September 30, 2024

 

September 30, 2023

 

% Change

 

June 30, 2024

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

11,990

 

 

$

18,772

 

 

(36.1

)%

 

$

40,512

 

 

$

61,189

 

 

(33.8

)%

 

$

13,037

 

 

(8.0

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

6,205

 

 

(100.0

)%

 

 

1,638

 

 

 

21,606

 

 

(92.4

)%

 

 

(91

)

 

(100.0

)%

Transaction and integration costs

 

1,219

 

 

 

605

 

 

101.5

%

 

 

1,293

 

 

 

1,834

 

 

(29.5

)%

 

 

29

 

 

4103.4

%

Settlement related costs

 

 

 

 

1,474

 

 

(100.0

)%

 

 

 

 

 

8,683

 

 

(100.0

)%

 

 

 

 

N/M

 

Stock-based compensation

 

340

 

 

 

1,690

 

 

(79.9

)%

 

 

4,090

 

 

 

3,485

 

 

17.4

%

 

 

1,969

 

 

(82.7

)%

Adjusted G&A expense

$

10,431

 

 

$

8,798

 

 

18.6

%

 

$

33,491

 

 

$

25,581

 

 

30.9

%

 

$

11,130

 

 

(6.3

)%

Adjusted G&A expense % of consolidated revenue

 

1.5

%

 

 

1.3

%

 

 

 

 

1.6

%

 

 

1.2

%

 

 

 

 

1.6

%

 

 

 

 

Three months ended

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30, 2024

 

September 30, 2023

 

% Change

 

September 30, 2024

 

September 30, 2023

 

% Change

 

June 30, 2024

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Modivcare Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

70,903

 

 

$

70,142

 

 

1.1

%

 

$

224,145

 

 

$

229,095

 

 

(2.2

)%

 

$

76,065

 

 

(6.8

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

309

 

 

 

8,916

 

 

(96.5

)%

 

 

13,395

 

 

 

33,471

 

 

(60.0

)%

 

 

7,981

 

 

(96.1

)%

Transaction and integration costs

 

1,367

 

 

 

1,159

 

 

17.9

%

 

 

3,470

 

 

 

2,886

 

 

20.2

%

 

 

560

 

 

144.1

%

Settlement related costs

 

2,610

 

 

 

1,449

 

 

80.1

%

 

 

3,415

 

 

 

8,933

 

 

(61.8

)%

 

 

805

 

 

224.2

%

Stock-based compensation

 

340

 

 

 

1,690

 

 

(79.9

)%

 

 

4,090

 

 

 

3,485

 

 

17.4

%

 

 

1,969

 

 

(82.7

)%

Adjusted G&A expense

$

66,277

 

 

$

56,928

 

 

16.4

%

 

$

199,775

 

 

$

180,320

 

 

10.8

%

 

$

64,750

 

 

2.4

%

Adjusted G&A expense % of consolidated revenue

 

9.4

%

 

 

8.3

%

 

 

 

 

9.6

%

 

 

8.8

%

 

 

 

 

9.3

%

 

 

N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison, thus, the percentage has been removed.

Investor Relations Contact Kevin Ellich, Head of Investor Relations Kevin.Ellich@modivcare.com

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