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Modivcare Reports Third Quarter 2023 Financial Results; Maintains Guidance

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, 2023.

Third Quarter 2023 Highlights:

  • Service revenue of $686.9 million, a 6.0% increase as compared to $647.8 million in the third quarter of 2022
  • Net loss of $4.3 million or $0.30 per diluted common share
  • Adjusted EBITDA(1) of $51.3 million, adjusted net income(1) of $20.5 million and adjusted EPS(1) of $1.44 per diluted common share
  • Cash provided by operating activities during the quarter of $53.5 million and free cash flow(2) of $44.7 million
  • Contract receivables increased by $9.5 million to $129.3 million and contract payables increased by $24.5 million to $133.6 million, resulting in net contract payables of $4.3 million as of September 30, 2023
  • Repaid $43.5 million on the $325.0 million revolving credit facility, reducing the balance drawn to $83.0 million as of September 30, 2023
  • $138.0 million of NEMT managed Medicaid total contract value (TCV) won during third quarter 2023; awarded a state Medicaid expansion in the northeast that will be implemented in mid-2024 once finalized; national MCO contract won earlier in 2023 implemented during the quarter

 

 

(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 $8.9 million that is included in our purchase of property and equipment line in our Statements of Cash Flows provided below.

"We're pleased to announce strong Q3 2023 results, highlighted by adjusted EBITDA of $51 million, $54 million of cash flow from operations, and $45 million of free cash flow," said L. Heath Sampson, President and CEO. "We have addressed internal inefficiencies in our operations and are now leveraging new technologies to deliver high quality care at a lower cost. The net result can be seen in our strong profitability and cash flow this quarter, which enabled us to reduce our outstanding revolver balance by one-third and improved our leverage ratio. Since taking on the role of CEO a year ago, our transformation has been comprehensive. We've initiated foundational shifts in our operating model, transitioning to a more unified, customer-centric strategy. While making these pivotal investments, we've maintained focus on our balance sheet. By generating cash, we aim to demonstrate to the market that our platform is not only resilient in the face of short-term challenges but also well-positioned for sustainable growth and margin expansion."

Mr. Sampson continued, "In our NEMT business, we've achieved meaningful operational improvements, including a notable sequential uptick in our margins. While navigating near-term complexities like Medicaid redetermination, we've excelled in customer service level agreements, leading to significant new contract wins. Our personal care services segment has made rapid strides in 2023, setting the stage for improved growth and margins in 2024. Our remote patient monitoring segment continues to grow with high margins and acts as a digital gateway for members to access care. When integrated with our NEMT and personal care services, we can unlock unique customer value and diversify our revenue streams. In summary, our transformation is not merely aspirational; it's a tangible reality that is driving measurable outcomes and positioning us for long-term success. I want to extend my deepest gratitude to our dedicated team, many of whom are managing multiple change-oriented roles in addition to their core responsibilities."

2023 Guidance

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

 

2023 Guidance

 

Low

 

High

Revenue

$

2,750

 

$

2,800

Adjusted EBITDA

$

200

 

 

$

210

 

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

Third Quarter 2023 Results

For the third quarter of 2023, the Company reported $686.9 million in revenue, a 6.0% increase from $647.8 million in the third quarter of 2022. The revenue growth was driven by a 9.7% increase in total paid trips in our NEMT segment coupled with a 2.3% increase in hours worked and a 3.9% increase in rate per hour in our personal care services segment, partially offset by a 3.6% decrease in revenue per paid trip in our NEMT segment.

Our operating income was $12.0 million, or 1.8% of revenue, in the third quarter of 2023, compared to operating income of $12.4 million, or 1.9% of revenue, in the third quarter of 2022. Net loss in the third quarter of 2023 was $4.3 million, or $0.30 per diluted common share, compared to net loss of $28.5 million, or $2.03 per diluted common share, in the third quarter of 2022. While our operating income remained relatively flat period over period, the net loss in 2022 is higher due to our allocated percentage of a one-time impairment taken at our Matrix investment.

Adjusted EBITDA was $51.3 million, or 7.5% of revenue, in the third quarter of 2023, compared to $51.8 million, or 8.0% of revenue, in the third quarter of 2022. Our Adjusted EBITDA was largely consistent, primarily related to a $4.1 million decrease in adjusted EBITDA at our NEMT segment, offset by a $4.1 million increase in adjusted EBITDA at our corporate segment. The NEMT segment's decrease was driven by increased payroll and other expense per trip and higher than expected trip volume. Accordingly, adjusted net income in the third quarter of 2023 was $20.5 million, or $1.44 per diluted common share, compared to $22.7 million, or $1.61 per diluted common share, in the third quarter of 2022.

Cash generated from operations during the quarter was $53.5 million as compared to $5.7 million of cash used in operations during the third quarter of 2022. The primary source of cash during the quarter was a $24.5 million build in contract payables, coupled with a $21.3 million decrease in accounts receivable. We used $43.5 million of this cash to pay down our revolving credit facility and ended the quarter with $83.0 million drawn.

Third Quarter Earnings Conference Call

Modivcare will hold a conference call to discuss its financial results on Friday, November 3, 2023 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 overall health outcomes. Modivcare is a provider of non-emergency medical transportation (NEMT), personal care services (PCS), and remote patient monitoring (RPM) solutions. 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 ("GAAP"), this press release includes (as applicable) EBITDA, Adjusted EBITDA and Adjusted G&A expense for the Company and its segments, Adjusted EBITDA margin for the Company's segments (other than its Corporate segment), and Adjusted Net Income and Adjusted EPS for the Company, all of which are performance measures that are not recognized under GAAP, and also free cash flow for the Company, which is a liquidity measure that is not recognized under GAAP. 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) stock-based compensation, (5) impairment of goodwill, as applicable, (6) equity in net (income) loss of investee, net of tax, and (7) COVID-19 related costs, net of grant income. Adjusted EBITDA margin is calculated as Adjusted EBITDA, divided by service revenue, net. Adjusted Net Income is calculated as net income (loss) before: (1) restructuring and related costs, (2) transaction and integration costs, (3) settlement related costs, (4) stock-based compensation, (5) impairment of goodwill, as applicable, (6) equity in net (income) loss of investee, net of tax (7) intangible asset amortization expense, (8) COVID-19 related costs, net of grant income, and (9) the income tax impact of such adjustments. Adjusted EPS is calculated as Adjusted Net Income divided by the diluted weighted-average number of common shares outstanding as calculated for Adjusted Net Income. 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 Statements of Cash Flows. Reconciliations of the non-GAAP financial measures 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 measures to their most directly comparable GAAP financial measures on a forward-looking basis because we are unable to predict items contained in the GAAP financial measures 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 non-GAAP liquidity measure is included because it 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 the 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 the 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; the effects of a public health emergency; inadequacies in our information technology systems; changes in the funding, financial viability or our relationships with our payors; pandemics and other infectious diseases; disruptions to our contact center operations caused by health epidemics or pandemics; delays in 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; estimated income taxes being different from income taxes that we ultimately pay; 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; our experiencing labor shortages in qualified employees and management; labor disputes or disruptions, in particular in New York; becoming subject to malpractice 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; 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; changes to, or violations of, licensing regulations; 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 that limit our flexibility in operating our business; our substantial indebtedness and lease obligations; any loss of available financing alternatives; our ability to incur substantial additional indebtedness; and the results of the remediation of our identified material weaknesses in internal control over financial reporting.

The Company has provided additional information about the risks facing our business in our annual report on Form 10-K and subsequent periodic and current reports most recently 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,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

 

Service revenue, net

 

$

686,925

 

 

$

647,782

 

 

$

2,048,338

 

 

$

1,850,472

 

Grant income

 

 

551

 

 

 

789

 

 

 

4,649

 

 

 

4,587

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Service expense

 

 

579,214

 

 

 

534,563

 

 

 

1,718,735

 

 

 

1,498,108

 

General and administrative expense

 

 

70,142

 

 

 

75,889

 

 

 

229,095

 

 

 

232,108

 

Depreciation and amortization

 

 

26,077

 

 

 

25,672

 

 

 

77,679

 

 

 

74,376

 

Impairment of goodwill

 

 

 

 

 

 

 

 

183,100

 

 

 

 

Total operating expenses

 

 

675,433

 

 

 

636,124

 

 

 

2,208,609

 

 

 

1,804,592

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

12,043

 

 

 

12,447

 

 

 

(155,622

)

 

 

50,467

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

17,844

 

 

 

15,557

 

 

 

50,769

 

 

 

46,429

 

Income (loss) before income taxes and equity method investment

 

 

(5,801

)

 

 

(3,110

)

 

 

(206,391

)

 

 

4,038

 

Income tax (provision) benefit

 

 

1,659

 

 

 

1,053

 

 

 

4,362

 

 

 

(877

)

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

 

 

(160

)

 

 

(26,448

)

 

 

2,821

 

 

 

(28,020

)

Net loss

 

$

(4,302

)

 

$

(28,505

)

 

$

(199,208

)

 

$

(24,859

)

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.30

)

 

$

(2.03

)

 

$

(14.06

)

 

$

(1.77

)

Diluted

 

$

(0.30

)

 

$

(2.03

)

 

$

(14.06

)

 

$

(1.77

)

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

Basic

 

 

14,182,839

 

 

 

14,051,794

 

 

 

14,169,537

 

 

 

14,041,224

 

Diluted

 

 

14,182,839

 

 

 

14,051,794

 

 

 

14,169,537

 

 

 

14,041,224

 

 

Modivcare Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

 

 

September 30, 2023

 

December 31, 2022

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

8,070

 

$

14,451

Accounts receivable, net

 

 

202,701

 

 

 

223,210

 

Contract receivables

 

 

129,275

 

 

 

71,131

 

Other current assets(1)

 

 

47,895

 

 

 

37,362

 

Total current assets

 

 

387,941

 

 

 

346,154

 

Property and equipment, net

 

 

81,419

 

 

 

69,138

 

Goodwill

 

 

785,554

 

 

 

968,654

 

Intangible assets, net

 

 

380,591

 

 

 

439,409

 

Equity investment

 

 

45,207

 

 

 

41,303

 

Operating lease right-of-use assets

 

 

39,744

 

 

 

39,405

 

Other long-term assets

 

 

42,630

 

 

 

40,209

 

Total assets

 

$

1,763,086

 

 

$

1,944,272

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

 

41,834

 

 

 

54,959

 

Accrued contract payables

 

 

133,576

 

 

 

194,287

 

Accrued expenses and other current liabilities

 

 

146,564

 

 

 

135,860

 

Accrued transportation costs

 

 

102,974

 

 

 

96,851

 

Current portion of operating lease liabilities

 

 

8,902

 

 

 

9,640

 

Short-term borrowings

 

 

83,000

 

 

 

 

Total current liabilities

 

 

516,850

 

 

 

491,597

 

Long-term debt, net of deferred financing costs

 

 

982,630

 

 

 

979,361

 

Operating lease liabilities, less current portion

 

 

33,397

 

 

 

32,088

 

Other long-term liabilities(2)

 

 

71,348

 

 

 

86,670

 

Total liabilities

 

 

1,604,225

 

 

 

1,589,716

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

Stockholders' equity

 

 

158,861

 

 

 

354,556

 

Total liabilities and stockholders' equity

 

$

1,763,086

 

 

$

1,944,272

 

(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,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Operating activities

 

 

 

 

 

 

 

Net loss

$

(4,302

)

 

$

(28,505

)

 

$

(199,208

)

 

$

(24,859

)

Depreciation and amortization

 

26,077

 

 

 

25,672

 

 

 

77,679

 

 

 

74,376

 

Stock-based compensation

 

1,743

 

 

 

656

 

 

 

4,029

 

 

 

5,152

 

Equity in net (income) loss of investee

 

222

 

 

 

36,525

 

 

 

(3,915

)

 

 

38,883

 

Deferred income taxes

 

(4,971

)

 

 

(16,739

)

 

 

(15,235

)

 

 

(31,232

)

Impairment of goodwill

 

 

 

 

 

 

 

183,100

 

 

 

 

Reduction of right-of-use asset

 

2,924

 

 

 

2,923

 

 

 

9,875

 

 

 

8,680

 

Other non-cash items(1)

 

1,594

 

 

 

1,925

 

 

 

1,486

 

 

 

(4,570

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Contract receivables

 

(9,512

)

 

 

(13,562

)

 

 

(58,143

)

 

 

(35,580

)

Contract payables

 

24,483

 

 

 

(37,938

)

 

 

(60,710

)

 

 

(37,786

)

Other working capital items(2)

 

15,289

 

 

 

23,363

 

 

 

3,715

 

 

 

52,462

 

Net cash provided by (used in) operating activities

 

53,547

 

 

 

(5,680

)

 

 

(57,327

)

 

 

45,526

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(8,878

)

 

 

(9,619

)

 

 

(31,143

)

 

 

(25,518

)

Acquisitions, net of cash acquired

 

 

 

 

(11

)

 

 

 

 

 

(78,872

)

Net cash used in investing activities

 

(8,878

)

 

 

(9,630

)

 

 

(31,143

)

 

 

(104,390

)

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

Proceeds from short-term borrowings

 

(43,500

)

 

 

 

 

 

83,000

 

 

 

 

Debt issuance costs

 

 

 

 

 

 

 

(376

)

 

 

(2,415

)

Proceeds from common stock issued pursuant to stock option exercise

 

 

 

 

99

 

 

 

31

 

 

 

1,237

 

Restricted stock surrendered for employee tax payment

 

(21

)

 

 

(42

)

 

 

(861

)

 

 

(649

)

Other financing activities

 

 

 

 

 

 

 

315

 

 

 

 

Net cash provided by (used in) financing activities

 

(43,521

)

 

 

57

 

 

 

82,109

 

 

 

(1,827

)

 

 

 

 

 

 

 

 

Net change in cash, cash equivalents and restricted cash

 

1,148

 

 

 

(15,253

)

 

 

(6,361

)

 

 

(60,691

)

Cash, cash equivalents and restricted cash at beginning of period

 

7,466

 

 

 

87,984

 

 

 

14,975

 

 

 

133,422

 

Cash, cash equivalents and restricted cash at end of period

$

8,614

 

 

$

72,731

 

 

$

8,614

 

 

$

72,731

 

(1)

 

Includes amortization of deferred financing costs and debt discount and other assets.

(2)

 

Includes accounts receivable and other receivables, prepaid expenses and other current assets, accounts payable and accrued expenses, accrued transportation costs and other long-term liabilities.

 

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 (provision) benefit

 

(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

 

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.

 

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Three months ended September 30, 2022

 

NEMT

 

PCS

 

RPM

 

Corporate

and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

459,796

 

 

$

169,226

 

 

$

18,760

 

 

$

 

 

$

647,782

 

Grant income

 

 

 

 

789

 

 

 

 

 

 

 

 

 

789

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

394,981

 

 

 

132,746

 

 

 

6,836

 

 

 

 

 

 

534,563

 

General and administrative expense

 

31,815

 

 

 

22,057

 

 

 

5,816

 

 

 

16,201

 

 

 

75,889

 

Depreciation and amortization

 

7,079

 

 

 

12,919

 

 

 

5,467

 

 

 

207

 

 

 

25,672

 

Total operating expenses

 

433,875

 

 

 

167,722

 

 

 

18,119

 

 

 

16,408

 

 

 

636,124

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

25,921

 

 

 

2,293

 

 

 

641

 

 

 

(16,408

)

 

 

12,447

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

15,557

 

 

 

15,557

 

Income (loss) before income taxes and equity method investment

 

25,921

 

 

 

2,293

 

 

 

641

 

 

 

(31,965

)

 

 

(3,110

)

Income tax (provision) benefit

 

(6,978

)

 

 

(661

)

 

 

(179

)

 

 

8,871

 

 

 

1,053

 

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

 

208

 

 

 

 

 

 

 

 

 

(26,656

)

 

 

(26,448

)

Net income (loss)

 

19,151

 

 

 

1,632

 

 

 

462

 

 

 

(49,750

)

 

 

(28,505

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

15,557

 

 

 

15,557

 

Income tax provision (benefit)

 

6,978

 

 

 

661

 

 

 

179

 

 

 

(8,871

)

 

 

(1,053

)

Depreciation and amortization

 

7,079

 

 

 

12,919

 

 

 

5,467

 

 

 

207

 

 

 

25,672

 

EBITDA

 

33,208

 

 

 

15,212

 

 

 

6,108

 

 

 

(42,857

)

 

 

11,671

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

902

 

 

 

582

 

 

 

39

 

 

 

565

 

 

 

2,088

 

Transaction and integration costs(2)

 

6

 

 

 

2,231

 

 

 

471

 

 

 

2,191

 

 

 

4,899

 

Settlement related costs

 

5,500

 

 

 

 

 

 

 

 

 

500

 

 

 

6,000

 

Stock-based compensation(3)

 

 

 

 

 

 

 

 

 

 

83

 

 

 

83

 

COVID-19 related costs, net of grant income

 

(51

)

 

 

659

 

 

 

 

 

 

 

 

 

608

 

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

 

(208

)

 

 

 

 

 

 

 

 

26,656

 

 

 

26,448

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

39,357

 

 

$

18,684

 

 

$

6,618

 

 

$

(12,862

)

 

$

51,797

 

(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.

(3)

 

Stock-based compensation includes cash settled equity balances.

 

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 (provision) benefit

 

(18,014

)

 

 

(5,452

)

 

 

(765

)

 

 

28,593

 

 

 

4,362

 

Equity in net income (loss) 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

 

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) loss 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.

 

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Nine months ended September 30, 2022

 

NEMT

 

PCS

 

RPM

 

Corporate

and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

1,309,449

 

 

$

491,661

 

 

$

49,362

 

 

$

 

 

$

1,850,472

 

Grant income

 

 

 

 

4,587

 

 

 

 

 

 

 

 

 

4,587

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

1,100,801

 

 

 

379,423

 

 

 

17,884

 

 

 

 

 

 

1,498,108

 

General and administrative expense

 

102,736

 

 

 

68,536

 

 

 

17,520

 

 

 

43,316

 

 

 

232,108

 

Depreciation and amortization

 

21,576

 

 

 

37,976

 

 

 

14,201

 

 

 

623

 

 

 

74,376

 

Total operating expenses

 

1,225,113

 

 

 

485,935

 

 

 

49,605

 

 

 

43,939

 

 

 

1,804,592

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

84,336

 

 

 

10,313

 

 

 

(243

)

 

 

(43,939

)

 

 

50,467

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

46,429

 

 

 

46,429

 

Income (loss) before income taxes and equity method investment

 

84,336

 

 

 

10,313

 

 

 

(243

)

 

 

(90,368

)

 

 

4,038

 

Income tax (provision) benefit

 

(23,116

)

 

 

(2,902

)

 

 

68

 

 

 

25,073

 

 

 

(877

)

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

 

143

 

 

 

 

 

 

 

 

 

(28,163

)

 

 

(28,020

)

Net income (loss)

 

61,363

 

 

 

7,411

 

 

 

(175

)

 

 

(93,458

)

 

 

(24,859

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

46,429

 

 

 

46,429

 

Income tax provision (benefit)

 

23,116

 

 

 

2,902

 

 

 

(68

)

 

 

(25,073

)

 

 

877

 

Depreciation and amortization

 

21,576

 

 

 

37,976

 

 

 

14,201

 

 

 

623

 

 

 

74,376

 

EBITDA

 

106,055

 

 

 

48,289

 

 

 

13,958

 

 

 

(71,479

)

 

 

96,823

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

11,359

 

 

 

763

 

 

 

63

 

 

 

950

 

 

 

13,135

 

Transaction and integration costs(2)

 

6

 

 

 

6,334

 

 

 

2,753

 

 

 

7,219

 

 

 

16,312

 

Settlement related costs

 

5,500

 

 

 

 

 

 

 

 

 

500

 

 

 

6,000

 

Stock-based compensation(3)

 

 

 

 

190

 

 

 

86

 

 

 

3,950

 

 

 

4,226

 

COVID-19 related costs, net of grant income

 

105

 

 

 

(2,370

)

 

 

 

 

 

 

 

 

(2,265

)

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

 

(143

)

 

 

 

 

 

 

 

 

28,163

 

 

 

28,020

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

122,882

 

 

$

53,206

 

 

$

16,860

 

 

$

(30,697

)

 

$

162,251

 

(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.

(3)

 

Stock-based compensation includes cash settled equity balances.

 

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,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(4,302

)

 

$

(28,505

)

 

$

(199,208

)

 

$

(24,859

)

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

8,916

 

 

 

2,088

 

 

 

33,471

 

 

 

13,135

 

Transaction and integration costs(2)

 

1,159

 

 

 

4,899

 

 

 

2,886

 

 

 

16,312

 

Settlement related costs

 

1,449

 

 

 

6,000

 

 

 

8,933

 

 

 

6,000

 

Stock-based compensation(3)

 

1,690

 

 

 

83

 

 

 

3,485

 

 

 

4,226

 

Impairment of goodwill

 

 

 

 

 

 

 

183,100

 

 

 

 

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

 

160

 

 

 

26,448

 

 

 

(2,821

)

 

 

28,020

 

Intangible asset amortization expense

 

19,748

 

 

 

20,727

 

 

 

59,457

 

 

 

59,978

 

COVID-19 related costs, net of grant income(4)

 

 

 

 

608

 

 

 

 

 

 

(2,265

)

Tax effected impact of adjustments

 

(8,327

)

 

 

(9,649

)

 

 

(27,833

)

 

 

(26,964

)

 

 

 

 

 

 

 

 

Adjusted net income

$

20,493

 

 

$

22,699

 

 

$

61,470

 

 

$

73,583

 

 

 

 

 

 

 

 

 

Adjusted EPS

$

1.44

 

 

$

1.61

 

 

$

4.33

 

 

$

5.21

 

 

 

 

 

 

 

 

 

Diluted weighted-average number of common shares outstanding

 

14,218,141

 

 

 

14,110,928

 

 

 

14,209,787

 

 

 

14,119,598

 

(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)

 

Stock-based compensation includes cash settled equity balances.

(4)

 

COVID-19 related costs were added back as one-time items through 2022. As the Public Health Emergency ended in 2023 and the effects of COVID-19 have become normal course of business, COVID-19 related items are no longer added back in 2023.

 

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,

2023

 

September 30,

2022

 

%

Change

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

June 30,

2023

 

QoQ %

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEMT Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

485,951

 

 

$

459,796

 

 

5.7

%

 

$

1,452,389

 

 

$

1,309,449

 

 

10.9

%

 

$

496,975

 

 

(2.2

)%

Purchased services expense

 

363,594

 

 

 

340,138

 

 

6.9

%

 

 

1,085,206

 

 

 

935,298

 

 

16.0

%

 

 

377,192

 

 

(3.6

)%

Payroll and other expense

 

64,427

 

 

 

54,843

 

 

17.5

%

 

 

192,398

 

 

 

165,503

 

 

16.3

%

 

 

64,705

 

 

(0.4

)%

Service expense

$

428,021

 

 

$

394,981

 

 

8.4

%

 

$

1,277,604

 

 

$

1,100,801

 

 

16.1

%

 

$

441,897

 

 

(3.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

57,930

 

 

$

64,815

 

 

(10.6

)%

 

$

174,785

 

 

$

208,648

 

 

(16.2

)%

 

$

55,078

 

 

5.2

%

Gross margin

 

11.9

%

 

 

14.1

%

 

 

 

 

12.0

%

 

 

15.9

%

 

 

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

25,433

 

 

$

31,815

 

 

(20.1

)%

 

$

87,645

 

 

$

102,736

 

 

(14.7

)%

 

$

28,337

 

 

(10.2

)%

G&A expense adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

2,711

 

 

 

902

 

 

200.6

%

 

 

11,865

 

 

 

11,359

 

 

4.5

%

 

 

2,055

 

 

31.9

%

Transaction and integration costs

 

101

 

 

 

6

 

 

N/M

 

 

 

101

 

 

 

6

 

 

N/M

 

 

 

 

 

N/M

 

Settlement related costs

 

(25

)

 

 

5,500

 

 

N/M

 

 

 

250

 

 

 

5,500

 

 

N/M

 

 

 

 

 

N/M

 

Adjusted G&A expense

$

22,646

 

 

$

25,407

 

 

(10.9

)%

 

$

75,429

 

 

$

85,871

 

 

(12.2

)%

 

$

26,282

 

 

(13.8

)%

Adjusted G&A expense % of revenue

 

4.7

%

 

 

5.5

%

 

 

 

 

5.2

%

 

 

6.6

%

 

 

 

 

5.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

18,831

 

 

$

19,151

 

 

(1.7

)%

 

$

49,791

 

 

$

61,363

 

 

(18.9

)%

 

$

14,789

 

 

27.3

%

Net income margin

 

3.9

%

 

 

4.2

%

 

 

 

 

3.4

%

 

 

4.7

%

 

 

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

35,284

 

 

$

39,357

 

 

(10.3

)%

 

$

99,356

 

 

$

122,882

 

 

(19.1

)%

 

$

28,796

 

 

22.5

%

Adjusted EBITDA margin

 

7.3

%

 

 

8.6

%

 

 

 

 

6.8

%

 

 

9.4

%

 

 

 

 

5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total paid trips (thousands)

 

8,824

 

 

 

8,045

 

 

9.7

%

 

 

25,761

 

 

 

22,987

 

 

12.1

%

 

 

8,735

 

 

1.0

%

Average monthly members (thousands)

 

33,660

 

 

 

36,026

 

 

(6.6

)%

 

 

33,892

 

 

 

33,998

 

 

(0.3

)%

 

 

34,312

 

 

(1.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per member per month

$

4.81

 

 

$

4.25

 

 

13.2

%

 

$

4.76

 

 

$

4.28

 

 

11.2

%

 

$

4.83

 

 

(0.4

)%

Revenue per trip

$

55.07

 

 

$

57.15

 

 

(3.6

)%

 

$

56.38

 

 

$

56.96

 

 

(1.0

)%

 

$

56.89

 

 

(3.2

)%

Monthly utilization

 

8.7

%

 

 

7.4

%

 

 

 

 

8.4

%

 

 

7.5

%

 

 

 

 

8.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased services per trip

$

41.21

 

 

$

42.28

 

 

(2.5

)%

 

$

42.13

 

 

$

40.69

 

 

3.5

%

 

$

43.18

 

 

(4.6

)%

Payroll and other per trip

$

7.30

 

 

$

6.82

 

 

7.0

%

 

$

7.47

 

 

$

7.20

 

 

3.7

%

 

$

7.41

 

 

(1.5

)%

Total service expense per trip

$

48.51

 

 

$

49.10

 

 

(1.2

)%

 

$

49.60

 

 

$

47.89

 

 

3.6

%

 

$

50.59

 

 

(4.1

)%

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

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

June 30,

2023

 

QoQ %

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCS Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

179,979

 

 

$

169,226

 

 

6.4

%

 

$

534,435

 

 

$

491,661

 

 

8.7

%

 

$

180,325

 

 

(0.2

)%

Service expense

 

143,078

 

 

 

132,746

 

 

7.8

%

 

 

417,636

 

 

 

379,423

 

 

10.1

%

 

 

138,468

 

 

3.3

%

Gross profit

$

36,901

 

 

$

36,480

 

 

1.2

%

 

$

116,799

 

 

$

112,238

 

 

4.1

%

 

$

41,857

 

 

(11.8

)%

Gross Margin

 

20.5

%

 

 

21.6

%

 

 

 

 

21.9

%

 

 

22.8

%

 

 

 

 

23.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

20,252

 

 

$

22,057

 

 

(8.2

)%

 

$

63,480

 

 

$

68,536

 

 

(7.4

)%

 

$

20,565

 

 

(1.5

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

582

 

 

(100.0

)%

 

 

 

 

 

763

 

 

(100.0

)%

 

 

 

 

N/M

 

Transaction and integration costs

 

431

 

 

 

2,231

 

 

(80.7

)%

 

 

881

 

 

 

6,334

 

 

(86.1

)%

 

 

173

 

 

149.1

%

Stock-based compensation

 

 

 

 

 

 

N/M

 

 

 

 

 

 

190

 

 

(100.0

)%

 

 

 

 

N/M

 

Adjusted G&A expense

$

19,821

 

 

$

19,244

 

 

3.0

%

 

$

62,599

 

 

$

61,249

 

 

2.2

%

 

$

20,392

 

 

(2.8

)%

Adjusted G&A expense % of revenue

 

11.0

%

 

 

11.4

%

 

 

 

 

11.7

%

 

 

12.5

%

 

 

 

 

11.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

3,142

 

 

$

1,632

 

 

92.5

%

 

$

(123,405

)

 

$

7,411

 

 

(1765.2

)%

 

$

(129,372

)

 

(102.4

)%

Net income margin

 

1.7

%

 

 

1.0

%

 

 

 

 

(23.1

)%

 

 

1.5

%

 

 

 

 

(71.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

17,631

 

 

$

18,684

 

 

(5.6

)%

 

$

58,849

 

 

$

53,206

 

 

10.6

%

 

$

24,099

 

 

(26.8

)%

Adjusted EBITDA margin

 

9.8

%

 

 

11.0

%

 

 

 

 

11.0

%

 

 

10.8

%

 

 

 

 

13.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total hours (in thousands)

 

6,995

 

 

 

6,836

 

 

2.3

%

 

 

20,752

 

 

 

20,076

 

 

3.4

%

 

 

6,933

 

 

0.9

%

Revenue per hour

$

25.73

 

 

$

24.76

 

 

3.9

%

 

$

25.75

 

 

$

24.49

 

 

5.1

%

 

$

26.01

 

 

(1.1

)%

Service expense per hour

$

20.45

 

 

$

19.42

 

 

5.3

%

 

$

20.13

 

 

$

18.90

 

 

6.5

%

 

$

19.97

 

 

2.4

%

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,

2023

 

September 30,

2022

 

%

Change

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

June 30,

2023

 

QoQ %

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RPM Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

19,779

 

 

$

18,760

 

 

5.4

%

 

$

57,702

 

 

$

49,362

 

 

16.9

%

 

$

19,211

 

 

3.0

%

Service expense

 

6,934

 

 

 

6,836

 

 

1.4

%

 

 

20,129

 

 

 

17,884

 

 

12.6

%

 

 

6,705

 

 

3.4

%

Gross profit

$

12,845

 

 

$

11,924

 

 

7.7

%

 

$

37,573

 

 

$

31,478

 

 

19.4

%

 

$

12,506

 

 

2.7

%

Gross Margin

 

64.9

%

 

 

63.6

%

 

 

 

 

65.1

%

 

 

63.8

%

 

 

 

 

65.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

5,685

 

 

$

5,816

 

 

(2.3

)%

 

$

16,781

 

 

$

17,520

 

 

(4.2

)%

 

$

5,327

 

 

6.7

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

39

 

 

(100.0

)%

 

 

 

 

 

63

 

 

(100.0

)%

 

 

 

 

N/M

 

Transaction and integration costs

 

22

 

 

 

471

 

 

(95.3

)%

 

 

70

 

 

 

2,753

 

 

(97.5

)%

 

 

16

 

 

37.5

%

Stock-based compensation

 

 

 

 

 

 

N/M

 

 

 

 

 

 

86

 

 

(100.0

)%

 

 

 

 

N/M

 

Adjusted G&A expense

$

5,663

 

 

$

5,306

 

 

6.7

%

 

$

16,711

 

 

$

14,618

 

 

14.3

%

 

$

5,311

 

 

6.6

%

Adjusted G&A expense % of revenue

 

28.6

%

 

 

28.3

%

 

 

 

 

29.0

%

 

 

29.6

%

 

 

 

 

27.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

707

 

 

$

462

 

 

53.0

%

 

$

(43,829

)

 

$

(175

)

 

N/M

 

 

$

(44,965

)

 

(101.6

)%

Net income (loss) margin

 

3.6

%

 

 

2.5

%

 

 

 

 

(76.0

)%

 

 

(0.4

)%

 

 

 

 

(234.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

7,182

 

 

$

6,618

 

 

8.5

%

 

$

20,862

 

 

$

16,860

 

 

23.7

%

 

$

7,195

 

 

(0.2

)%

Adjusted EBITDA margin

 

36.3

%

 

 

35.3

%

 

 

 

 

36.2

%

 

 

34.2

%

 

 

 

 

37.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average monthly members (in thousands)

 

247

 

 

 

230

 

 

7.4

%

 

 

241

 

 

 

201

 

 

19.9

%

 

 

240

 

 

2.9

%

Revenue per member per month

$

26.69

 

 

$

27.19

 

 

(1.8

)%

 

$

26.60

 

 

$

27.29

 

 

(2.5

)%

 

$

26.68

 

 

%

Service expense per member per month

$

9.36

 

 

$

9.91

 

 

(5.5

)%

 

$

9.28

 

 

$

9.89

 

 

(6.2

)%

 

$

9.31

 

 

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)

 

 

Three months ended

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

June 30,

2023

 

QoQ %

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

18,772

 

 

$

16,201

 

 

15.9

%

 

$

61,189

 

 

$

43,316

 

 

41.3

%

 

$

25,011

 

 

(24.9

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

6,205

 

 

 

565

 

 

N/M

 

 

 

21,606

 

 

 

950

 

 

N/M

 

 

 

8,055

 

 

(23.0

)%

Transaction and integration costs

 

605

 

 

 

2,191

 

 

(72.4

)%

 

 

1,834

 

 

 

7,219

 

 

(74.6

)%

 

 

665

 

 

(9.0

)%

Settlement related costs

 

1,474

 

 

 

500

 

 

194.8

%

 

 

8,683

 

 

 

500

 

 

N/M

 

 

 

7,209

 

 

(79.6

)%

Stock-based compensation

 

1,690

 

 

 

83

 

 

N/M

 

 

 

3,485

 

 

 

3,950

 

 

(11.8

)%

 

 

947

 

 

78.5

%

Adjusted G&A expense

$

8,798

 

 

$

12,862

 

 

(31.6

)%

 

$

25,581

 

 

$

30,697

 

 

(16.7

)%

 

$

8,135

 

 

8.1

%

Adjusted G&A expense % of consolidated revenue

 

1.3

%

 

 

2.0

%

 

 

 

 

1.2

%

 

 

1.7

%

 

 

 

 

1.2

%

 

 

 

 

Three months ended

 

 

 

Nine months ended

 

 

 

Three months ended

 

 

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

September 30,

2023

 

September 30,

2022

 

%

Change

 

June 30,

2023

 

QoQ %

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Modivcare Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

70,142

 

 

$

75,889

 

 

(7.6

)%

 

$

229,095

 

 

$

232,108

 

 

(1.3

)%

 

$

79,240

 

 

(11.5

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

8,916

 

 

 

2,088

 

 

327.0

%

 

 

33,471

 

 

 

13,135

 

 

154.8

%

 

 

10,110

 

 

(11.8

)%

Transaction and integration costs

 

1,159

 

 

 

4,899

 

 

(76.3

)%

 

 

2,886

 

 

 

16,312

 

 

(82.3

)%

 

 

854

 

 

35.7

%

Settlement related costs

 

1,449

 

 

 

6,000

 

 

(75.9

)%

 

 

8,933

 

 

 

6,000

 

 

48.9

%

 

 

7,209

 

 

(79.9

)%

Stock-based compensation

 

1,690

 

 

 

83

 

 

N/M

 

 

 

3,485

 

 

 

4,226

 

 

(17.5

)%

 

 

947

 

 

78.5

%

Adjusted G&A expense

$

56,928

 

 

$

62,819

 

 

(9.4

)%

 

$

180,320

 

 

$

192,435

 

 

(6.3

)%

 

$

60,120

 

 

(5.3

)%

Adjusted G&A expense % of revenue

 

8.3

%

 

 

9.7

%

 

 

 

 

8.8

%

 

 

10.4

%

 

 

 

 

8.6

%

 

 

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

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