Modivcare Inc. (the “Company” or “Modivcare”) (Nasdaq: MODV), a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions focused on improving patient outcomes, today reported financial results for the three months and full year ended December 31, 2023.

Fourth Quarter 2023 Summary:

  • Service revenue of $702.8 million, a 7.5% increase as compared to $653.9 million in the fourth quarter of 2022
  • Net loss of $5.3 million, or $0.37 per diluted common share
  • Adjusted EBITDA(1) of $50.5 million, adjusted net income(1) of $18.4 million and adjusted EPS(1) of $1.29 per diluted common share
  • Net cash used in operating activities during the quarter of $25.6 million and negative free cash flow(2) of $36.8 million, primarily related to a delayed payment from a single client
  • Contract receivables increased by $14.7 million to $144.0 million and contract payables decreased by $16.1 million to $117.5 million, resulting in net contract receivables of $26.5 million as of December 31, 2023
  • $216.2 million of NEMT TCV(3) won during the fourth quarter of 2023, including sizable managed Medicaid contracts contributing to total new wins that will outpace contract attrition in 2024
  • $113.8 million drawn on our $325.0 million revolving credit facility
  • As a subsequent event, in early 2024 we amended the leverage covenant to provide additional cushion for credit facility availability, ensuring sufficient liquidity

Full Year 2023 Summary:

  • Service revenue of $2,751.2 million, a 9.9% increase as compared to $2,504.4 million in 2022
  • Net loss of $204.5 million, or $14.43 per diluted common share
  • Adjusted EBITDA(1) of $204.4 million, adjusted net income(1) of $79.9 million and adjusted EPS(1) of $5.60 per diluted common share
  • Net cash used in operating activities in 2023 of $83.0 million and negative free cash flow(2) of $125.3 million
  • Contract receivables increased by $72.8 million to $144.0 million and contract payables decreased by $76.8 million to $117.5 million
  • In 2023, won $463.5 million of NEMT TCV(3) or $141.8 million ACV(3), as well as $10.6 million in ACV(3) for remote patient monitoring

 

 

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

(3) Total Contract Value, or TCV, describes a measure of the expected revenue impact of a contract over the life of the contract. Annual Contract Value, or ACV, describes the revenue impact over one full year during the life of a contract. ACV expected for a contract in effect for less than a full year during the life of a contract would be prorated for the portion the year during which it is in effect.

“We delivered solid financial results for 2023 with revenue and adjusted EBITDA meeting our guidance. Our NEMT revenue grew 9% during the fourth quarter driven by a 13% increase in trips, while our personal care and remote patient monitoring segments continued to grow nicely," stated L. Heath Sampson, President and CEO. “Our transformation has led to substantial operational improvement, while cultivating a results-oriented yet compassionate culture and sharpening our strategic focus. This uniquely positions us to make a meaningful impact on our clients and their members by addressing the social determinants of health. Despite these advancements, we expect that financial results will lag such foundational changes. We have encountered some near-term financial headwinds, due to sooner than anticipated, large COVID-related working capital needs and margin pressure in our NEMT segment. Looking ahead, we anticipate the implementation of approximately $150 million in annual contract value starting in the second quarter, along with $30 million in cost savings driven by initiatives, including digitization, will help mitigate the effects of Medicaid redetermination and the normalizing healthcare utilization environment, especially in the second half of the year. These efforts will yield even greater annual run-rate benefits in 2025. Additionally, our success in centralizing and standardizing processes, coupled with the rollout of core platforms and new capabilities in our personal care and remote patient monitoring segments in 2023, is now accelerating growth. This large-scale progress positions us well to enhance long-term shareholder value, which is a direct result of the hard work of our team, and I am humbled by their unwavering dedication."

2024 Guidance

Our 2024 guidance is as follows (in millions):

 

 

First Quarter 2024

 

Fiscal Year 2024

Revenue

 

$650 - $700

 

$2,700 - $2,900

Adjusted EBITDA

 

$28 - $33

 

$190 - $210

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

Fourth Quarter 2023 Results

For the fourth quarter of 2023, the Company reported revenue of $702.8 million, an increase of 7.5% from $653.9 million in the fourth quarter of 2022. The revenue growth was driven by a 12.7% increase in total paid trips in our NEMT segment, partially offset by a 5.5% decrease in average monthly members. The decrease in membership is related to Medicaid redetermination impacts which are trending in line with our expectations. Revenue also increased due to 3.4% growth in hours in our PCS segment.

Operating income was $15.7 million, or 2.2% of revenue, in the fourth quarter of 2023, compared to $6.6 million, or 1.0% of revenue, in the fourth quarter of 2022. Net loss was $5.3 million, or $0.37 per common share in the fourth quarter of 2023, compared to $6.9 million, or $0.49 per common share, in the fourth quarter of 2022. Operating income was higher in the fourth quarter of 2023 when compared to 2022, due to 16.2% lower general and administrative costs related to fewer one-time costs for restructuring and integration activities.

Adjusted EBITDA was $50.5 million, or 7.2% of revenue, in the fourth quarter of 2023, compared to $59.7 million, or 9.1% of revenue, in the fourth quarter of 2022. Our adjusted EBITDA was lower in 2023 than in the comparable period due to 7.6% lower gross profit at our NEMT segment, primarily as a result of higher service expense costs. Accordingly, adjusted net income in the fourth quarter of 2023 was $18.4 million or $1.29 per diluted common share, compared to $29.8 million, or $2.11 per diluted common share, in the fourth quarter of 2022.

Net cash used in operating activities during the quarter was $25.6 million as compared to $56.0 million of net cash used in operating activities during the fourth quarter of 2022. Changes in operating assets and liabilities during the quarter include a settlement in contract payables of $16.1 million and an increase in contract receivables of $14.7 million. Additionally, as of year-end 2023, approximately $35.9 million was due from a single client, the collection of which would have resulted in positive operating cashflow for the quarter. Net cash used in investing activities during the quarter was $11.1 million, primarily due to investments in technology and purchases of monitoring devices. Net cash provided by financing activities during the quarter was $31.0 million, which resulted in a quarter ended balance on our revolving credit facility of $113.8 million.

Full Year 2023 Results

For the full year 2023, the Company reported revenue of $2,751.2 million, an increase of 9.9% from $2,504.4 million in 2022. The revenue growth was driven by a 12.2% increase in total paid trips in our NEMT segment, partially offset by a 1.6% decrease in average monthly members. Revenue also increased due to 3.4% growth in hours in our PCS segment.

Loss from operations was $139.9 million, or 5.1% of revenue, for 2023, compared to income from operations of $57.1 million, or 2.3% of revenue, for 2022. Net loss in 2023 was $204.5 million, or $14.43 per common share, compared to a net loss of $31.8 million, or $2.26 per common share, in 2022. Both our net loss and our loss from operations in 2023 are primarily related to the previously disclosed $183.1 million non-cash goodwill impairment in the second quarter of 2023.

Adjusted EBITDA for 2023 was $204.4 million or 7.4% of revenue, compared to $221.9 million, or 8.9% of revenue, in 2022. Our Adjusted EBITDA was lower in 2023 primarily due to 5.4% lower gross margin as a result of service expense increases associated with Mobility utilization. Accordingly, adjusted net income for 2023 was $79.9 million or $5.60 per diluted common share, compared to $103.4 million, or $7.32 per diluted common share, for 2022.

Net cash used in operating activities during the year was $83.0 million as compared to $10.4 million of net cash used in operating activities during 2022. Changes in operating assets and liabilities during the current year include a settlement in contract payables of $76.8 million and an increase in contract receivables of $72.8 million. Net cash used in investing activities during the year was $42.3 million, primarily related to investments in technology and purchases of monitoring devices. Net cash provided by financing activities during the year was $113.1 million, which resulted in a year ended balance on our revolving credit facility of $113.8 million.

Fourth Quarter and Full Year 2023 Earnings Conference Call

Modivcare will hold a conference call to discuss its financial results on Friday, February 23, 2024 at 8:30 a.m. ET. To access the call, please dial:

US toll-free: 1 (877) 407-8037 International: 1 (201) 689-8037

You may also access the conference call via webcast at investors.modivcare.com, where the call will also be archived.

About Modivcare

Modivcare Inc. ("Modivcare" or the "Company") is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their members. Our value-based solutions address the social determinants of health (SDoH) by connecting members to essential care services. By doing so, Modivcare helps health plans manage risks, reduce costs, and improve 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 presented herein that have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), presentations for the Company and/or its segments (as applicable) of the following financial measures that have not been prepared in accordance with GAAP may be included herein: (1) EBITDA, Adjusted EBITDA, Adjusted G&A expense, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted EPS, all of which are considered by management to be performance measures; and (2) free cash flow, which is 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) stock-based compensation, (5) impairment of goodwill, (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 (as applicable): (1) restructuring and related costs, (2) transaction and integration costs, (3) settlement related costs, (4) stock-based compensation, (5) impairment of goodwill, (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 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 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 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 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, or security breaches of, our information technology systems; changes in the funding, financial viability or our relationships with our payors; pandemics and other infectious diseases; 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; estimated income taxes being different from income taxes that we ultimately pay; weakening of general economic conditions, including the impact of inflationary pressures, rising interest rates, labor shortages, higher labor costs and supply chain challenges; 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; 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; 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; and any stock price volatility.

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 December 31,

 

Year ended December 31,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Service revenue, net

 

$

702,832

 

 

$

653,921

 

 

$

2,751,170

 

 

$

2,504,393

 

Grant income

 

 

388

 

 

 

2,764

 

 

 

5,037

 

 

 

7,351

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Service expense

 

 

585,483

 

 

 

533,966

 

 

 

2,304,218

 

 

 

2,032,074

 

General and administrative expense

 

 

75,469

 

 

 

90,063

 

 

 

304,564

 

 

 

322,171

 

Depreciation and amortization

 

 

26,592

 

 

 

26,039

 

 

 

104,271

 

 

 

100,415

 

Impairment of goodwill

 

 

 

 

 

 

 

 

183,100

 

 

 

 

Total operating expenses

 

 

687,544

 

 

 

650,068

 

 

 

2,896,153

 

 

 

2,454,660

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

15,676

 

 

 

6,617

 

 

 

(139,946

)

 

 

57,084

 

 

 

 

 

 

 

 

 

 

Other expenses:

 

 

 

 

 

 

 

 

Interest expense, net

 

 

18,351

 

 

 

15,532

 

 

 

69,120

 

 

 

61,961

 

Loss before income taxes and equity method investment

 

 

(2,675

)

 

 

(8,915

)

 

 

(209,066

)

 

 

(4,877

)

Income tax benefit (provision)

 

 

(43

)

 

 

3,912

 

 

 

4,319

 

 

 

3,035

 

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

 

 

(2,534

)

 

 

(1,944

)

 

 

287

 

 

 

(29,964

)

Net loss

 

$

(5,252

)

 

$

(6,947

)

 

$

(204,460

)

 

$

(31,806

)

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.37

)

 

$

(0.49

)

 

$

(14.43

)

 

$

(2.26

)

Diluted

 

$

(0.37

)

 

$

(0.49

)

 

$

(14.43

)

 

$

(2.26

)

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

Basic

 

 

14,187,071

 

 

 

14,123,013

 

 

 

14,173,957

 

 

 

14,061,839

 

Diluted

 

 

14,187,071

 

 

 

14,123,013

 

 

 

14,173,957

 

 

 

14,061,839

 

Modivcare Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

December 31,

 

2023

 

2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,217

 

$

14,451

Accounts receivable, net

 

222,537

 

 

223,210

Contract receivables

 

143,960

 

 

71,131

Other current assets(1)

 

36,209

 

 

37,362

Total current assets

 

404,923

 

 

346,154

Property and equipment, net

 

85,629

 

 

69,138

Goodwill

 

785,554

 

 

968,654

Intangible assets, net

 

360,935

 

 

439,409

Equity investment

 

41,531

 

 

41,303

Operating lease right-of-use assets

 

39,776

 

 

39,405

Other long-term assets

 

48,927

 

 

40,209

Total assets

$

1,767,275

 

$

1,944,272

 

 

 

 

Liabilities and stockholders' equity

Current liabilities:

 

 

 

Accounts payable

$

55,241

 

$

54,959

Accrued contract payables

 

117,488

 

 

194,287

Accrued expenses and other current liabilities

 

127,901

 

 

135,860

Accrued transportation costs

 

97,245

 

 

96,851

Current portion of operating lease liabilities

 

8,727

 

 

9,640

Short-term borrowings

 

113,800

 

 

Total current liabilities

 

520,402

 

 

491,597

Long-term debt, net of deferred financing costs

 

983,757

 

 

979,361

Operating lease liabilities, less current portion

 

33,784

 

 

32,088

Other long-term liabilities(2)

 

73,137

 

 

86,670

Total liabilities

 

1,611,080

 

 

1,589,716

 

 

 

 

Stockholders' equity

 

156,195

 

 

354,556

Total liabilities and stockholders' equity

$

1,767,275

 

$

1,944,272

(1)

Includes other receivables, prepaid expenses and other current assets and short-term restricted cash.

(2)

Includes deferred tax liabilities.

Modivcare Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

Year ended December 31,

 

2023

 

2022

 

2023

 

2022

Operating activities

 

 

 

 

 

 

 

Net loss

$

(5,252

)

 

$

(6,947

)

 

$

(204,460

)

 

$

(31,806

)

Depreciation and amortization

 

26,592

 

 

 

26,039

 

 

 

104,271

 

 

 

100,415

 

Stock-based compensation

 

2,427

 

 

 

1,720

 

 

 

6,456

 

 

 

6,872

 

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

 

3,517

 

 

 

2,033

 

 

 

(398

)

 

 

40,916

 

Deferred income taxes

 

(2,417

)

 

 

(5,431

)

 

 

(17,652

)

 

 

(36,663

)

Impairment of goodwill

 

 

 

 

 

 

 

183,100

 

 

 

 

Reduction of right-of-use assets

 

2,469

 

 

 

2,960

 

 

 

12,344

 

 

 

11,640

 

Other non-cash items(1)

 

(4,959

)

 

 

(8,292

)

 

 

(3,473

)

 

 

(12,862

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Contract receivables

 

(14,685

)

 

 

(11,071

)

 

 

(72,828

)

 

 

(46,651

)

Contract payables

 

(16,088

)

 

 

(49,513

)

 

 

(76,798

)

 

 

(87,299

)

Other working capital items(2)

 

(17,248

)

 

 

(7,466

)

 

 

(13,533

)

 

 

44,996

 

Net cash used in operating activities

 

(25,644

)

 

 

(55,968

)

 

 

(82,971

)

 

 

(10,442

)

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Purchase of property and equipment

 

(11,145

)

 

 

(7,486

)

 

 

(42,288

)

 

 

(33,004

)

Acquisitions, net of cash acquired

 

 

 

 

63

 

 

 

 

 

 

(78,809

)

Net cash used in investing activities

 

(11,145

)

 

 

(7,423

)

 

 

(42,288

)

 

 

(111,813

)

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

Net proceeds from short-term borrowings

 

30,800

 

 

 

 

 

 

113,800

 

 

 

 

Payment of debt issuance costs

 

 

 

 

 

 

 

(376

)

 

 

(2,415

)

Proceeds from common stock issued pursuant to stock option exercise

 

 

 

 

5,552

 

 

 

31

 

 

 

6,789

 

Restricted stock surrendered for employee tax payment

 

(38

)

 

 

(143

)

 

 

(899

)

 

 

(792

)

Other financing activities

 

195

 

 

 

226

 

 

 

510

 

 

 

226

 

Net cash provided by financing activities

 

30,957

 

 

 

5,635

 

 

 

113,066

 

 

 

3,808

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

(5,832

)

 

 

(57,756

)

 

 

(12,193

)

 

 

(118,447

)

Cash, cash equivalents and restricted cash at beginning of period

 

8,614

 

 

 

72,731

 

 

 

14,975

 

 

 

133,422

 

Cash, cash equivalents and restricted cash at end of period

$

2,782

 

 

$

14,975

 

 

$

2,782

 

 

$

14,975

 

(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 December 31, 2023

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

499,058

 

 

$

181,180

 

 

$

20,239

 

 

$

2,355

 

 

$

702,832

 

Grant income

 

 

 

 

388

 

 

 

 

 

 

 

 

 

388

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

432,186

 

 

 

144,283

 

 

 

6,896

 

 

 

2,118

 

 

 

585,483

 

General and administrative expense

 

27,710

 

 

 

23,287

 

 

 

6,190

 

 

 

18,282

 

 

 

75,469

 

Depreciation and amortization

 

7,090

 

 

 

12,812

 

 

 

6,449

 

 

 

241

 

 

 

26,592

 

Total operating expenses

 

466,986

 

 

 

180,382

 

 

 

19,535

 

 

 

20,641

 

 

 

687,544

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

32,072

 

 

 

1,186

 

 

 

704

 

 

 

(18,286

)

 

 

15,676

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

18,351

 

 

 

18,351

 

Income (loss) before income taxes and equity method investment

 

32,072

 

 

 

1,186

 

 

 

704

 

 

 

(36,637

)

 

 

(2,675

)

Income tax benefit (provision)

 

(8,588

)

 

 

49

 

 

 

(694

)

 

 

9,190

 

 

 

(43

)

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

 

73

 

 

 

 

 

 

 

 

 

(2,607

)

 

 

(2,534

)

Net Income (loss)

 

23,557

 

 

 

1,235

 

 

 

10

 

 

 

(30,054

)

 

 

(5,252

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

18,351

 

 

 

18,351

 

Income tax (benefit) provision

 

8,588

 

 

 

(49

)

 

 

694

 

 

 

(9,190

)

 

 

43

 

Depreciation and amortization

 

7,090

 

 

 

12,812

 

 

 

6,449

 

 

 

241

 

 

 

26,592

 

EBITDA

 

39,235

 

 

 

13,998

 

 

 

7,153

 

 

 

(20,652

)

 

 

39,734

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

658

 

 

 

 

 

 

 

 

 

2,575

 

 

 

3,233

 

Transaction and integration costs(2)

 

(101

)

 

 

1,807

 

 

 

16

 

 

 

74

 

 

 

1,796

 

Settlement related costs

 

 

 

 

 

 

 

 

 

 

1,194

 

 

 

1,194

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

2,016

 

 

 

2,016

 

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

 

(73

)

 

 

 

 

 

 

 

 

2,607

 

 

 

2,534

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

39,719

 

 

$

15,805

 

 

$

7,169

 

 

$

(12,186

)

 

$

50,507

 

(1)

Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees.

(2)

Consists of fees incurred for SOX implementation and business integration efforts.

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Three months ended December 31, 2022

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

458,993

 

 

$

176,013

 

 

$

18,915

 

 

$

 

 

$

653,921

 

Grant income

 

 

 

 

2,764

 

 

 

 

 

 

 

 

 

2,764

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

386,646

 

 

 

140,642

 

 

 

6,678

 

 

 

 

 

 

533,966

 

General and administrative expense

 

44,199

 

 

 

22,829

 

 

 

5,636

 

 

 

17,399

 

 

 

90,063

 

Depreciation and amortization

 

7,133

 

 

 

13,049

 

 

 

5,653

 

 

 

204

 

 

 

26,039

 

Total operating expenses

 

437,978

 

 

 

176,520

 

 

 

17,967

 

 

 

17,603

 

 

 

650,068

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

21,015

 

 

 

2,257

 

 

 

948

 

 

 

(17,603

)

 

 

6,617

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

15,532

 

 

 

15,532

 

Income (loss) before income taxes and equity method investment

 

21,015

 

 

 

2,257

 

 

 

948

 

 

 

(33,135

)

 

 

(8,915

)

Income tax benefit (provision)

 

(3,739

)

 

 

92

 

 

 

(276

)

 

 

7,835

 

 

 

3,912

 

Equity in net loss of investee, net of tax

 

(72

)

 

 

 

 

 

 

 

 

(1,872

)

 

 

(1,944

)

Net Income (loss)

 

17,204

 

 

 

2,349

 

 

 

672

 

 

 

(27,172

)

 

 

(6,947

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

15,532

 

 

 

15,532

 

Income tax provision (benefit)

 

3,739

 

 

 

(92

)

 

 

276

 

 

 

(7,835

)

 

 

(3,912

)

Depreciation and amortization

 

7,133

 

 

 

13,049

 

 

 

5,653

 

 

 

204

 

 

 

26,039

 

EBITDA

 

28,076

 

 

 

15,306

 

 

 

6,601

 

 

 

(19,271

)

 

 

30,712

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

13,869

 

 

 

(6

)

 

 

 

 

 

 

 

 

13,863

 

Transaction and integration costs(2)

 

4,219

 

 

 

1,216

 

 

 

174

 

 

 

2,050

 

 

 

7,659

 

Settlement related costs

 

 

 

 

 

 

 

 

 

 

3,564

 

 

 

3,564

 

Stock-based compensation(3)

 

 

 

 

 

 

 

 

 

 

1,842

 

 

 

1,842

 

COVID-19 related costs, net of grant income

 

24

 

 

 

43

 

 

 

 

 

 

 

 

 

67

 

Equity in net loss of investee, net of tax

 

72

 

 

 

 

 

 

 

 

 

1,872

 

 

 

1,944

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

46,260

 

 

$

16,559

 

 

$

6,775

 

 

$

(9,943

)

 

$

59,651

 

(1)

Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees.

(2)

Consists of fees incurred for SOX implementation and business integration efforts.

(3)

Includes cash settled equity balances.

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Year ended December 31, 2023

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

1,951,447

 

 

$

715,615

 

 

$

77,941

 

 

$

6,167

 

 

$

2,751,170

 

Grant income

 

 

 

 

5,037

 

 

 

 

 

 

 

 

 

5,037

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

1,709,790

 

 

 

561,919

 

 

 

27,025

 

 

 

5,484

 

 

 

2,304,218

 

General and administrative expense

 

115,355

 

 

 

86,767

 

 

 

22,971

 

 

 

79,471

 

 

 

304,564

 

Depreciation and amortization

 

27,409

 

 

 

51,402

 

 

 

24,536

 

 

 

924

 

 

 

104,271

 

Impairment of goodwill

 

 

 

 

137,331

 

 

 

45,769

 

 

 

 

 

 

183,100

 

Total operating expenses

 

1,852,554

 

 

 

837,419

 

 

 

120,301

 

 

 

85,879

 

 

 

2,896,153

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

98,893

 

 

 

(116,767

)

 

 

(42,360

)

 

 

(79,712

)

 

 

(139,946

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

69,120

 

 

 

69,120

 

Income (loss) before income taxes and equity method investment

 

98,893

 

 

 

(116,767

)

 

 

(42,360

)

 

 

(148,832

)

 

 

(209,066

)

Income tax benefit (provision)

 

(26,602

)

 

 

(5,403

)

 

 

(1,459

)

 

 

37,783

 

 

 

4,319

 

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

 

1,057

 

 

 

 

 

 

 

 

 

(770

)

 

 

287

 

Net Income (loss)

 

73,348

 

 

 

(122,170

)

 

 

(43,819

)

 

 

(111,819

)

 

 

(204,460

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

69,120

 

 

 

69,120

 

Provision (benefit) for income taxes

 

26,602

 

 

 

5,403

 

 

 

1,459

 

 

 

(37,783

)

 

 

(4,319

)

Depreciation and amortization

 

27,409

 

 

 

51,402

 

 

 

24,536

 

 

 

924

 

 

 

104,271

 

EBITDA

 

127,359

 

 

 

(65,365

)

 

 

(17,824

)

 

 

(79,558

)

 

 

(35,388

)

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

12,523

 

 

 

 

 

 

 

 

 

24,181

 

 

 

36,704

 

Transaction and integration costs(2)

 

 

 

 

2,688

 

 

 

86

 

 

 

1,908

 

 

 

4,682

 

Settlement related costs

 

250

 

 

 

 

 

 

 

 

 

9,877

 

 

 

10,127

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

5,501

 

 

 

5,501

 

Impairment of goodwill

 

 

 

 

137,331

 

 

 

45,769

 

 

 

 

 

 

183,100

 

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

 

(1,057

)

 

 

 

 

 

 

 

 

770

 

 

 

(287

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

139,075

 

 

$

74,654

 

 

$

28,031

 

 

$

(37,321

)

 

$

204,439

 

(1)

Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees.

(2)

Consists of fees incurred for SOX implementation and business integration efforts.

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Year ended December 31, 2022

 

NEMT

 

PCS

 

RPM

 

Corporate and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

1,768,442

 

 

$

667,674

 

 

$

68,277

 

 

$

 

 

$

2,504,393

 

Grant income

 

 

 

 

7,351

 

 

 

 

 

 

 

 

 

7,351

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

1,487,447

 

 

 

520,065

 

 

 

24,562

 

 

 

 

 

 

2,032,074

 

General and administrative expense

 

146,935

 

 

 

91,365

 

 

 

23,156

 

 

 

60,715

 

 

 

322,171

 

Depreciation and amortization

 

28,709

 

 

 

51,025

 

 

 

19,854

 

 

 

827

 

 

 

100,415

 

Total operating expenses

 

1,663,091

 

 

 

662,455

 

 

 

67,572

 

 

 

61,542

 

 

 

2,454,660

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

105,351

 

 

 

12,570

 

 

 

705

 

 

 

(61,542

)

 

 

57,084

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

61,961

 

 

 

61,961

 

Income (loss) before income taxes and equity method investment

 

105,351

 

 

 

12,570

 

 

 

705

 

 

 

(123,503

)

 

 

(4,877

)

Income tax benefit (provision)

 

(26,855

)

 

 

(2,810

)

 

 

(208

)

 

 

32,908

 

 

 

3,035

 

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

 

71

 

 

 

 

 

 

 

 

 

(30,035

)

 

 

(29,964

)

Net Income (loss)

 

78,567

 

 

 

9,760

 

 

 

497

 

 

 

(120,630

)

 

 

(31,806

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

61,961

 

 

 

61,961

 

Income tax provision (benefit)

 

26,855

 

 

 

2,810

 

 

 

208

 

 

 

(32,908

)

 

 

(3,035

)

Depreciation and amortization

 

28,709

 

 

 

51,025

 

 

 

19,854

 

 

 

827

 

 

 

100,415

 

EBITDA

 

134,131

 

 

 

63,595

 

 

 

20,559

 

 

 

(90,750

)

 

 

127,535

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

25,228

 

 

 

757

 

 

 

63

 

 

 

950

 

 

 

26,998

 

Transaction and integration costs(2)

 

4,225

 

 

 

7,550

 

 

 

2,927

 

 

 

9,269

 

 

 

23,971

 

Settlement related costs

 

5,500

 

 

 

 

 

 

 

 

 

4,064

 

 

 

9,564

 

Stock-based compensation(3)

 

 

 

 

190

 

 

 

86

 

 

 

5,792

 

 

 

6,068

 

COVID-19 related costs, net of grant income

 

129

 

 

 

(2,327

)

 

 

 

 

 

 

 

 

(2,198

)

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

 

(71

)

 

 

 

 

 

 

 

 

30,035

 

 

 

29,964

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

169,142

 

 

$

69,765

 

 

$

23,635

 

 

$

(40,640

)

 

$

221,902

 

(1)

Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees.

(2)

Consists of fees incurred for SOX implementation and business integration efforts.

(3)

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 December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

Net loss

$

(5,252

)

 

$

(6,947

)

 

$

(204,460

)

 

$

(31,806

)

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

3,233

 

 

 

13,863

 

 

 

36,704

 

 

 

26,998

 

Transaction and integration costs(2)

 

1,796

 

 

 

7,659

 

 

 

4,682

 

 

 

23,971

 

Settlement related costs

 

1,194

 

 

 

3,564

 

 

 

10,127

 

 

 

9,564

 

Stock-based compensation(3)

 

2,016

 

 

 

1,842

 

 

 

5,501

 

 

 

6,068

 

Impairment of goodwill

 

 

 

 

 

 

 

183,100

 

 

 

 

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

 

2,534

 

 

 

1,944

 

 

 

(287

)

 

 

29,964

 

Intangible amortization expense

 

19,775

 

 

 

20,381

 

 

 

79,232

 

 

 

80,359

 

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

 

 

 

 

67

 

 

 

 

 

 

(2,198

)

Income tax impact of adjustments

 

(6,848

)

 

 

(12,555

)

 

 

(34,681

)

 

 

(39,518

)

 

 

 

 

 

 

 

 

Adjusted net income

$

18,448

 

 

$

29,818

 

 

$

79,918

 

 

$

103,402

 

 

 

 

 

 

 

 

 

Adjusted EPS

$

1.29

 

 

$

2.11

 

 

$

5.60

 

 

$

7.32

 

 

 

 

 

 

 

 

 

Diluted weighted-average number of common shares outstanding

 

14,326,957

 

 

 

14,149,333

 

 

 

14,272,709

 

 

 

14,126,912

 

(1)

Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees.

(2)

Consists of fees incurred related to SOX implementation and business integration efforts.

(3)

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

 

 

 

Year ended

 

 

 

Three months ended

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

December 31, 2023

 

December 31, 2022

 

% Change

 

September 30, 2023

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEMT Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

499,058

 

 

$

458,993

 

 

8.7

%

 

$

1,951,447

 

 

$

1,768,442

 

 

10.3

%

 

$

485,951

 

 

2.7

%

Purchased services expense

 

371,590

 

 

 

331,708

 

 

12.0

%

 

 

1,456,796

 

 

 

1,267,006

 

 

15.0

%

 

 

363,594

 

 

2.2

%

Payroll and other expense

 

60,596

 

 

 

54,938

 

 

10.3

%

 

 

252,994

 

 

 

220,441

 

 

14.8

%

 

 

64,427

 

 

(5.9

)%

Service expense

$

432,186

 

 

$

386,646

 

 

11.8

%

 

$

1,709,790

 

 

$

1,487,447

 

 

14.9

%

 

$

428,021

 

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

66,872

 

 

$

72,347

 

 

(7.6

)%

 

$

241,657

 

 

$

280,995

 

 

(14.0

)%

 

$

57,930

 

 

15.4

%

Gross margin

 

13.4

%

 

 

15.8

%

 

 

 

 

12.4

%

 

 

15.9

%

 

 

 

 

11.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

27,710

 

 

$

44,199

 

 

(37.3

)%

 

$

115,355

 

 

$

146,935

 

 

(21.5

)%

 

$

25,433

 

 

9.0

%

G&A expense adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

658

 

 

 

13,869

 

 

(95.3

)%

 

 

12,523

 

 

 

25,228

 

 

(50.4

)%

 

 

2,711

 

 

(75.7

)%

Transaction and integration costs

 

(101

)

 

 

4,219

 

 

(102.4

)%

 

 

 

 

 

4,225

 

 

N/M

 

 

 

101

 

 

N/M

 

Settlement related costs

 

 

 

 

 

 

N/M

 

 

 

250

 

 

 

5,500

 

 

(95.5

)%

 

 

(25

)

 

N/M

 

Adjusted G&A expense

$

27,153

 

 

$

26,111

 

 

4.0

%

 

$

102,582

 

 

$

111,982

 

 

(8.4

)%

 

$

22,646

 

 

19.9

%

Adjusted G&A expense % of revenue

 

5.4

%

 

 

5.7

%

 

 

 

 

5.3

%

 

 

6.3

%

 

 

 

 

4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

23,557

 

 

$

17,204

 

 

36.9

%

 

$

73,348

 

 

$

78,567

 

 

(6.6

)%

 

$

18,831

 

 

25.1

%

Net income margin

 

4.7

%

 

 

3.7

%

 

 

 

 

3.8

%

 

 

4.4

%

 

 

 

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

39,719

 

 

$

46,260

 

 

(14.1

)%

 

$

139,075

 

 

$

169,142

 

 

(17.8

)%

 

$

35,284

 

 

12.6

%

Adjusted EBITDA margin

 

8.0

%

 

 

10.1

%

 

 

 

 

7.1

%

 

 

9.6

%

 

 

 

 

7.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total paid trips (thousands)

 

8,798

 

 

 

7,807

 

 

12.7

%

 

 

34,559

 

 

 

30,795

 

 

12.2

%

 

 

8,824

 

 

(0.3

)%

Average monthly members (thousands)

 

32,914

 

 

 

34,819

 

 

(5.5

)%

 

 

33,648

 

 

 

34,203

 

 

(1.6

)%

 

 

33,660

 

 

(2.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per member per month

$

5.05

 

 

$

4.39

 

 

15.0

%

 

$

4.83

 

 

$

4.31

 

 

12.1

%

 

$

4.81

 

 

5.0

%

Revenue per trip

$

56.72

 

 

$

58.79

 

 

(3.5

)%

 

$

56.47

 

 

$

57.43

 

 

(1.7

)%

 

$

55.07

 

 

3.0

%

Utilization

 

8.9

%

 

 

7.5

%

 

 

 

 

8.6

%

 

 

7.5

%

 

 

 

 

8.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased services per trip

$

42.24

 

 

$

42.49

 

 

(0.6

)%

 

$

42.15

 

 

$

41.14

 

 

2.5

%

 

$

41.21

 

 

2.5

%

Payroll and other per trip

 

6.89

 

 

 

7.04

 

 

(2.1

)%

 

 

7.32

 

 

 

7.16

 

 

2.2

%

 

 

7.30

 

 

(5.6

)%

Total service expense per trip

$

49.13

 

 

$

49.53

 

 

(0.8

)%

 

$

49.47

 

 

$

48.30

 

 

2.4

%

 

$

48.51

 

 

1.3

%

 

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

Modivcare Inc.

Unaudited Key Statistical and Financial Data

(in thousands, except for statistical data)

 

 

Three months ended

 

 

 

Year ended

 

 

 

Three months ended

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

December 31, 2023

 

December 31, 2022

 

% Change

 

September 30, 2023

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PCS Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

181,180

 

 

$

176,013

 

 

2.9

%

 

$

715,615

 

 

$

667,674

 

 

7.2

%

 

$

179,979

 

 

0.7

%

Service expense

 

144,283

 

 

 

140,642

 

 

2.6

%

 

 

561,919

 

 

 

520,065

 

 

8.0

%

 

 

143,078

 

 

0.8

%

Gross profit

$

36,897

 

 

$

35,371

 

 

4.3

%

 

$

153,696

 

 

$

147,609

 

 

4.1

%

 

$

36,901

 

 

%

Gross Margin

 

20.4

%

 

 

20.1

%

 

 

 

 

21.5

%

 

 

22.1

%

 

 

 

 

20.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

23,287

 

 

$

22,829

 

 

2.0

%

 

$

86,767

 

 

$

91,365

 

 

(5.0

)%

 

$

20,252

 

 

15.0

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

(6

)

 

N/M

 

 

 

 

 

 

757

 

 

N/M

 

 

 

 

 

N/M

 

Transaction and integration costs

 

1,807

 

 

 

1,216

 

 

48.6

%

 

 

2,688

 

 

 

7,550

 

 

(64.4

)%

 

 

431

 

 

319.3

%

Stock-based compensation

 

 

 

 

 

 

N/M

 

 

 

 

 

 

190

 

 

N/M

 

 

 

 

 

N/M

 

Adjusted G&A expense

$

21,480

 

 

$

21,619

 

 

(0.6

)%

 

$

84,079

 

 

$

82,868

 

 

1.5

%

 

$

19,821

 

 

8.4

%

Adjusted G&A expense % of revenue

 

11.9

%

 

 

12.3

%

 

 

 

 

11.7

%

 

 

12.4

%

 

 

 

 

11.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

1,235

 

 

$

2,349

 

 

(47.4

)%

 

$

(122,170

)

 

$

9,760

 

 

N/M

 

 

$

3,142

 

 

(60.7

)%

Net income margin

 

0.7

%

 

 

1.3

%

 

 

 

 

(17.1

)%

 

 

1.5

%

 

 

 

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

15,805

 

 

$

16,559

 

 

(4.6

)%

 

$

74,654

 

 

$

69,765

 

 

7.0

%

 

$

17,631

 

 

(10.4

)%

Adjusted EBITDA margin

 

8.7

%

 

 

9.4

%

 

 

 

 

10.4

%

 

 

10.4

%

 

 

 

 

9.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total hours (thousands)

 

7,074

 

 

 

6,842

 

 

3.4

%

 

 

27,826

 

 

 

26,918

 

 

3.4

%

 

 

6,995

 

 

1.1

%

Revenue per hour

$

25.61

 

 

$

25.73

 

 

(0.5

)%

 

$

25.72

 

 

$

24.80

 

 

3.7

%

 

$

25.73

 

 

(0.5

)%

Service expense per hour

$

20.40

 

 

$

20.56

 

 

(0.8

)%

 

$

20.19

 

 

$

19.32

 

 

4.5

%

 

$

20.45

 

 

(0.2

)%

 

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

Modivcare Inc.

Unaudited Key Statistical and Financial Data

(in thousands, except for statistical data)

 

 

Three months ended

 

 

 

Year ended

 

 

 

Three months ended

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

December 31, 2023

 

December 31, 2022

 

% Change

 

September 30, 2023

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RPM Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

20,239

 

 

$

18,915

 

 

7.0

%

 

$

77,941

 

 

$

68,277

 

 

14.2

%

 

$

19,779

 

 

2.3

%

Service expense

 

6,896

 

 

 

6,678

 

 

3.3

%

 

 

27,025

 

 

 

24,562

 

 

10.0

%

 

 

6,934

 

 

(0.5

)%

Gross profit

$

13,343

 

 

$

12,237

 

 

9.0

%

 

$

50,916

 

 

$

43,715

 

 

16.5

%

 

$

12,845

 

 

3.9

%

Gross Margin

 

65.9

%

 

 

64.7

%

 

 

 

 

65.3

%

 

 

64.0

%

 

 

 

 

64.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

6,190

 

 

$

5,636

 

 

9.8

%

 

$

22,971

 

 

$

23,156

 

 

(0.8

)%

 

$

5,685

 

 

8.9

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

 

 

N/M

 

 

 

 

 

 

63

 

 

N/M

 

 

 

 

 

N/M

 

Transaction and integration costs

 

16

 

 

 

174

 

 

(90.8

)%

 

 

86

 

 

 

2,927

 

 

(97.1

)%

 

 

22

 

 

(27.3

)%

Stock-based compensation

 

 

 

 

 

 

N/M

 

 

 

 

 

 

86

 

 

N/M

 

 

 

 

 

N/M

 

Adjusted G&A expense

$

6,174

 

 

$

5,462

 

 

13.0

%

 

$

22,885

 

 

$

20,080

 

 

14.0

%

 

$

5,663

 

 

9.0

%

Adjusted G&A expense % of revenue

 

30.5

%

 

 

28.9

%

 

 

 

 

29.4

%

 

 

29.4

%

 

 

 

 

28.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

10

 

 

$

672

 

 

(98.5

)%

 

$

(43,819

)

 

$

497

 

 

N/M

 

 

$

707

 

 

(98.6

)%

Net income margin

 

%

 

 

3.6

%

 

 

 

 

(56.2

)%

 

 

0.7

%

 

 

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

7,169

 

 

$

6,775

 

 

5.8

%

 

$

28,031

 

 

$

23,635

 

 

18.6

%

 

$

7,182

 

 

(0.2

)%

Adjusted EBITDA margin

 

35.4

%

 

 

35.8

%

 

 

 

 

36.0

%

 

 

34.6

%

 

 

 

 

36.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average monthly members (thousands)

 

253

 

 

 

236

 

 

7.2

%

 

 

244

 

 

 

210

 

 

16.2

%

 

 

247

 

 

2.4

%

Revenue per member per month

$

26.67

 

 

$

26.72

 

 

(0.2

)%

 

$

26.62

 

 

$

27.09

 

 

(1.7

)%

 

$

26.69

 

 

(0.1

)%

Service expense per member per month

$

9.09

 

 

$

9.43

 

 

(3.6

)%

 

$

9.23

 

 

$

9.75

 

 

(5.3

)%

 

$

9.36

 

 

(2.9

)%

 

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

 

 

 

Year ended

 

 

 

Three months ended

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

December 31, 2023

 

December 31, 2022

 

% Change

 

September 30, 2023

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

18,282

 

 

$

17,399

 

 

5.1

%

 

$

79,471

 

 

$

60,715

 

 

30.9

%

 

$

18,772

 

 

(2.6

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

2,575

 

 

 

 

 

N/M

 

 

 

24,181

 

 

 

950

 

 

N/M

 

 

 

6,205

 

 

(58.5

)%

Transaction and integration costs

 

74

 

 

 

2,050

 

 

(96.4

)%

 

 

1,908

 

 

 

9,269

 

 

(79.4

)%

 

 

605

 

 

(87.8

)%

Settlement related costs

 

1,194

 

 

 

3,564

 

 

(66.5

)%

 

 

9,877

 

 

 

4,064

 

 

143.0

%

 

 

1,474

 

 

(19.0

)%

Stock-based compensation(1)

 

2,016

 

 

 

1,842

 

 

9.4

%

 

 

5,501

 

 

 

5,792

 

 

(5.0

)%

 

 

1,690

 

 

19.3

%

Adjusted G&A expense

$

12,423

 

 

$

9,943

 

 

24.9

%

 

$

38,004

 

 

$

40,640

 

 

(6.5

)%

 

$

8,798

 

 

41.2

%

Adjusted G&A expense % of consolidated revenue

 

1.8

%

 

 

1.5

%

 

 

 

 

1.4

%

 

 

1.6

%

 

 

 

 

1.3

%

 

 

 

Three months ended

 

 

 

Year ended

 

 

 

Three months ended

 

 

 

December 31, 2023

 

December 31, 2022

 

% Change

 

December 31, 2023

 

December 31, 2022

 

% Change

 

September 30, 2023

 

QoQ % Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Modivcare Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

75,469

 

 

$

90,063

 

 

(16.2

)%

 

$

304,564

 

 

$

322,171

 

 

(5.5

)%

 

$

70,142

 

 

7.6

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

3,233

 

 

 

13,863

 

 

(76.7

)%

 

 

36,704

 

 

 

26,998

 

 

36.0

%

 

 

8,916

 

 

(63.7

)%

Transaction and integration costs

 

1,796

 

 

 

7,659

 

 

(76.6

)%

 

 

4,682

 

 

 

23,971

 

 

(80.5

)%

 

 

1,159

 

 

55.0

%

Settlement related costs

 

1,194

 

 

 

3,564

 

 

(66.5

)%

 

 

10,127

 

 

 

9,564

 

 

5.9

%

 

 

1,449

 

 

(17.6

)%

Stock-based compensation(1)

 

2,016

 

 

 

1,842

 

 

9.4

%

 

 

5,501

 

 

 

6,068

 

 

(9.3

)%

 

 

1,690

 

 

19.3

%

Adjusted G&A expense

$

67,230

 

 

$

63,135

 

 

6.5

%

 

$

247,550

 

 

$

255,570

 

 

(3.1

)%

 

$

56,928

 

 

18.1

%

Adjusted G&A expense % of revenue

 

9.6

%

 

 

9.7

%

 

 

 

 

9.0

%

 

 

10.2

%

 

 

 

 

8.3

%

 

 

(1)

Includes cash settled equity balances.

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

 

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

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