Modivcare Reports First Quarter 2023 Financial Results

May 4, 2023

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 patient outcomes, today reported financial results for the three months ended March 31, 2023.

First Quarter 2023 Highlights:

  • Service revenue of $662.3 million, a 15.3% increase as compared to $574.5 million in Q1 2022
  • Net loss of $4.0 million or $0.28 per diluted common share
  • Adjusted EBITDA(1) of $50.2 million, adjusted net income(1) of $20.2 million and adjusted EPS(1) of $1.42 per diluted common share
  • Net cash used in operating activities during the quarter of $2.7 million
  • Cash and cash equivalents of $12.8 million as of March 31, 2023, with $1.0 billion principal amount of debt outstanding related to the Senior Unsecured Notes due 2025 and 2029
  • $15.0 million drawn on the $325.0 million revolving credit facility as of March 31, 2023
____________________

(1) Non-GAAP financial measure reconciliations and other related information about non-GAAP financial measures provided below

“We reported solid first quarter results with 15 percent revenue growth driven by strong growth across each of our segments,” said L. Heath Sampson, President and Chief Executive Officer. “We remain confident in our 2023 outlook, which we maintained, due to several factors, including recent new contract wins, a strong pipeline for new business, and the continued success of our Home business. As the U.S. healthcare system increasingly shifts to home-based care, we are well positioned to capitalize on these opportunities with our supportive care services. Our offerings provide high quality care and services to our members in a cost-effective manner, aligning with the evolving needs of the healthcare landscape. Our focus for 2023 remains steadfast to build for scale and grow our business. We are confident that the initiatives implemented over the past few quarters will drive efficiencies and operating leverage throughout the year. I am incredibly proud of our team’s ability to perform and execute at a high level, and I am grateful for their hard work and dedication.”

2023 Guidance

We maintained our 2023 revenue and our Adjusted EBITDA guidance range as follows ($ in millions):

 

     

Low

     

High

 

Revenue

     

$

2,575

     

$

2,600

 

Adjusted EBITDA

     

$

225

     

$

235

 

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

First Quarter 2023 Results

For the first quarter of 2023, the Company reported revenue of $662.3 million, an increase of 15.3% from $574.5 million in the first quarter of 2022. The increase in revenue is primarily attributable to a 4.7% increase in membership and an 11.8% increase in revenue per member in our NEMT segment coupled with a 4.4% increase in hours worked and a 4.4% increase in rate per hour in our personal care segment.

Operating income was $8.1 million, or 1.2% of revenue, in the first quarter of 2023, compared to operating income of $14.9 million, or 2.6% of revenue, in the first quarter of 2022. Net loss in the first quarter of 2023 was $4.0 million, or $0.28 per diluted common share, compared to net income of $0.3 million, or $0.02 per diluted common share, in the first quarter of 2022.

Adjusted EBITDA was $50.2 million, or 7.6% of revenue, in the first quarter of 2023, compared to $50.3 million, or 8.8% of revenue, in the first quarter of 2022.

Adjusted net income in the first quarter of 2023 was $20.2 million, or $1.42 per diluted common share, compared to $22.2 million, or $1.57 per diluted common share, in the first quarter of 2022.

First Quarter Earnings Conference Call

Modivcare will hold a conference call to discuss its financial results on Thursday, May 4, 2023 at 8:00 a.m. ET. To access the call, please dial:

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

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

About Modivcare

Modivcare Inc. (Nasdaq: MODV) is a technology-enabled healthcare services company that provides a platform of integrated supportive care solutions for public and private payors and their patients. Our value-based solutions are intended to address the social determinants of health (SDoH), enable greater access to care, reduce costs, and improve outcomes. We are a leading provider of non-emergency medical transportation (NEMT), personal care and remote patient monitoring. 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 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. 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, including severance and organizational consolidation costs and professional services fees, (2) certain transaction and integration costs, (3) settlement related costs, (4) cash settled equity, (5) stock-based compensation, (6) COVID-19 related costs, net of grant income, and (7) equity in net (income) loss of investee, net of tax. Adjusted EBITDA margin is calculated as Adjusted EBITDA, divided by service revenue, net. Adjusted Net Income is calculated as net income (loss) before: (1) restructuring and related costs, including severance and organizational consolidation costs and professional services fees (2) certain transaction and integration costs, (3) settlement related costs, (4) cash settled equity, (5) stock-based compensation, (6) equity in net (income) loss of investee, net of tax (7) intangible 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, (4) cash settled equity, and (5) stock-based compensation. 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 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 events to be materially different from those expressed or implied herein, including but not limited to: government or private insurance program funding reductions or limitations; alternative payment models or the transition of Medicaid and Medicare beneficiaries to Managed Care Organizations, or MCOs; our inability to control reimbursement rates received for our services; cost containment initiatives undertaken by private third-party payors; the effects of a public health emergency; inadequacies in, or security breaches of, our information technology systems, including the systems intended to protect our clients’ privacy and confidential information; any changes in the funding, financial viability or our relationships with our payors; pandemic infectious diseases, including the COVID-19 pandemic; disruptions to our contact center operations caused by health epidemics or pandemics like COVID-19; delays in collection, or non-collection, of our accounts receivable, particularly during any business integration; an impairment of our goodwill and long-lived assets; any failure to maintain or to develop reliable, efficient and secure information technology systems; an inability to attract and retain qualified employees; any 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; a 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, or CON, 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 that we acquired with our personal care segment; 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; and our lack of sole decision-making authority with respect to our minority investment in Matrix and any failure by Matrix to achieve positive financial results of operations.

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. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made and are expressly qualified in their entirety by the cautionary statements set forth herein and in our filings with the Securities and Exchange Commission, which you should read in their entirety before making an investment decision with respect to our securities. We undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future events or otherwise, except as required by applicable law.

Modivcare Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

 

 

 

 

 

 

 

Three months ended March 31,

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

Service revenue, net

 

$

662,306

 

 

$

574,475

 

Grant income

 

 

1,464

 

 

 

468

 

 

 

 

 

 

Operating expenses:

 

 

 

 

Service expense

 

 

550,266

 

 

 

459,315

 

General and administrative expense

 

 

79,713

 

 

 

76,808

 

Depreciation and amortization

 

 

25,693

 

 

 

23,946

 

Total operating expenses

 

 

655,672

 

 

 

560,069

 

 

 

 

 

 

Operating income

 

 

8,098

 

 

 

14,874

 

 

 

 

 

 

Interest expense, net

 

 

15,958

 

 

 

15,400

 

Loss before income taxes and equity method investment

 

 

(7,860

)

 

 

(526

)

Benefit for income taxes

 

 

(1,873

)

 

 

(361

)

Equity in net income of investee, net of tax

 

 

(2,025

)

 

 

(483

)

Net income (loss)

 

$

(3,962

)

 

$

318

 

 

 

 

 

 

Earnings (loss) per common share:

 

 

 

 

Basic

 

$

(0.28

)

 

$

0.02

 

Diluted

 

$

(0.28

)

 

$

0.02

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

Basic

 

 

14,163,511

 

 

 

14,023,585

 

Diluted

 

 

14,163,511

 

 

 

14,123,825

 

Modivcare Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

 

 

March 31, 2023

 

December 31, 2022

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

12,848

 

$

14,451

Accounts receivable, net

 

 

296,745

 

 

294,341

Other current assets(1)

 

 

38,638

 

 

37,362

Total current assets

 

 

348,231

 

 

346,154

Property and equipment, net

 

 

76,252

 

 

69,138

Goodwill and intangible assets, net

 

 

1,388,576

 

 

1,408,063

Equity investment

 

 

43,698

 

 

41,303

Operating lease right-of-use assets

 

 

40,311

 

 

39,405

Other long-term assets

 

 

44,461

 

 

40,209

Total assets

 

$

1,941,529

 

$

1,944,272

 

 

 

 

 

Liabilities and stockholders' equity

Current liabilities:

 

 

 

 

Short-term borrowings

 

$

15,000

 

$

Accounts payable

 

 

54,987

 

 

54,959

Accrued contract payables

 

 

187,620

 

 

194,287

Accrued expenses and other current liabilities

 

 

132,978

 

 

135,860

Accrued transportation costs

 

 

93,726

 

 

96,851

Current portion of operating lease liabilities

 

 

9,852

 

 

9,640

Total current liabilities

 

 

494,163

 

 

491,597

Long-term debt, net of deferred financing costs

 

 

980,433

 

 

979,361

Operating lease liabilities, less current portion

 

 

32,867

 

 

32,088

Other long-term liabilities(2)

 

 

82,968

 

 

86,670

Total liabilities

 

 

1,590,431

 

 

1,589,716

 

 

 

 

 

Stockholders' equity

 

 

 

 

Stockholders' equity

 

 

351,098

 

 

354,556

Total liabilities and stockholders' equity

 

$

1,941,529

 

$

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 March 31,

 

 

 

2023

 

 

 

2022

 

Operating activities

 

 

 

 

Net income (loss)

 

$

(3,962

)

 

$

318

 

Depreciation and amortization

 

 

25,693

 

 

 

23,946

 

Stock-based compensation

 

 

1,124

 

 

 

2,049

 

Equity in net income of investee

 

 

(2,810

)

 

 

(671

)

Deferred income taxes

 

 

(3,624

)

 

 

(6,587

)

Reduction of right-of-use asset

 

 

3,547

 

 

 

2,884

 

Other non-cash items(1)

 

 

(2,975

)

 

 

(1,996

)

Changes in working capital(2)

 

 

(19,648

)

 

 

51,542

 

Net cash provided by (used in) operating activities

 

 

(2,655

)

 

 

71,485

 

 

 

 

 

 

Investing activities

 

 

 

 

Purchase of property and equipment

 

 

(13,320

)

 

 

(8,584

)

Net cash used in investing activities

 

 

(13,320

)

 

 

(8,584

)

 

 

 

 

 

Financing activities

 

 

 

 

Proceeds from short-term borrowings

 

 

15,000

 

 

 

 

Debt issuance costs

 

 

 

 

 

(2,415

)

Proceeds from common stock issued pursuant to stock option exercise

 

 

 

 

 

1,138

 

Restricted stock surrendered for employee tax payment

 

 

(620

)

 

 

(572

)

Net cash provided by (used in) financing activities

 

 

14,380

 

 

 

(1,849

)

 

 

 

 

 

Net change in cash, cash equivalents and restricted cash

 

 

(1,595

)

 

 

61,052

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

14,975

 

 

 

133,422

 

Cash, cash equivalents and restricted cash at end of period

 

$

13,380

 

 

$

194,474

 

 

(1) Includes provision for doubtful accounts and amortization of deferred financing costs and debt discount.

(2) Includes accounts receivable and other receivables, prepaid expenses and other current assets, accrued contract payables, 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 March 31, 2023

 

NEMT

 

Personal Care

 

RPM

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

469,463

 

 

$

174,131

 

$

18,712

 

$

 

 

$

662,306

 

Grant income

 

 

 

 

1,464

 

 

 

 

 

 

 

1,464

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

407,686

 

 

 

136,090

 

 

6,490

 

 

 

 

 

550,266

 

General and administrative expense

 

33,875

 

 

 

22,663

 

 

5,769

 

 

17,406

 

 

 

79,713

 

Depreciation and amortization

 

6,766

 

 

 

12,868

 

 

5,854

 

 

205

 

 

 

25,693

 

Total operating expenses

 

448,327

 

 

 

171,621

 

 

18,113

 

 

17,611

 

 

 

655,672

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

21,136

 

 

 

3,974

 

 

599

 

 

(17,611

)

 

 

8,098

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

15,958

 

 

 

15,958

 

Income (loss) before income taxes and equity method investment

 

21,136

 

 

 

3,974

 

 

599

 

 

(33,569

)

 

 

(7,860

)

Provision (benefit) for income taxes

 

5,618

 

 

 

1,149

 

 

170

 

 

(8,810

)

 

 

(1,873

)

Equity in net income of investee, net of tax

 

(653

)

 

 

 

 

 

 

(1,372

)

 

 

(2,025

)

Net income (loss)

 

16,171

 

 

 

2,825

 

 

429

 

 

(23,387

)

 

 

(3,962

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

15,958

 

 

 

15,958

 

Provision (benefit) for income taxes

 

5,618

 

 

 

1,149

 

 

170

 

 

(8,810

)

 

 

(1,873

)

Depreciation and amortization

 

6,766

 

 

 

12,868

 

 

5,854

 

 

205

 

 

 

25,693

 

EBITDA

 

28,555

 

 

 

16,842

 

 

6,453

 

 

(16,034

)

 

 

35,816

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

7,099

 

 

 

 

 

 

 

7,346

 

 

 

14,445

 

Transaction and integration costs(2)

 

 

 

 

277

 

 

32

 

 

564

 

 

 

873

 

Settlement related costs

 

275

 

 

 

 

 

 

 

 

 

 

275

 

Stock-based compensation

 

 

 

 

 

 

 

 

848

 

 

 

848

 

Equity in net income of investee, net of tax

 

(653

)

 

 

 

 

 

 

(1,372

)

 

 

(2,025

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

35,276

 

 

$

17,119

 

$

6,485

 

$

(8,648

)

 

$

50,232

 

 

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

(2) Transaction and integration costs consist of fees incurred related to Sarbanes-Oxley Act of 2002 ("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 March 31, 2022

 

NEMT

 

Personal Care

 

RPM

 

Corporate

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

400,920

 

$

159,698

 

$

13,857

 

 

$

 

 

$

574,475

 

Grant income

 

 

 

468

 

 

 

 

 

 

 

 

468

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

332,096

 

 

122,232

 

 

4,987

 

 

 

 

 

 

459,315

 

General and administrative expense

 

37,333

 

 

23,133

 

 

4,962

 

 

 

11,380

 

 

 

76,808

 

Depreciation and amortization

 

7,105

 

 

12,505

 

 

4,128

 

 

 

208

 

 

 

23,946

 

Total operating expenses

 

376,534

 

 

157,870

 

 

14,077

 

 

 

11,588

 

 

 

560,069

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

24,386

 

 

2,296

 

 

(220

)

 

 

(11,588

)

 

 

14,874

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

15,400

 

 

 

15,400

 

Income (loss) before income taxes and equity method investment

 

24,386

 

 

2,296

 

 

(220

)

 

 

(26,988

)

 

 

(526

)

Provision (benefit) for income taxes

 

6,575

 

 

640

 

 

(58

)

 

 

(7,518

)

 

 

(361

)

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

 

65

 

 

 

 

 

 

 

(548

)

 

 

(483

)

Net income (loss)

 

17,746

 

 

1,656

 

 

(162

)

 

 

(18,922

)

 

 

318

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

15,400

 

 

 

15,400

 

Provision (benefit) for income taxes

 

6,575

 

 

640

 

 

(58

)

 

 

(7,518

)

 

 

(361

)

Depreciation and amortization

 

7,105

 

 

12,505

 

 

4,128

 

 

 

208

 

 

 

23,946

 

EBITDA

 

31,426

 

 

14,801

 

 

3,908

 

 

 

(10,832

)

 

 

39,303

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

5,604

 

 

181

 

 

24

 

 

 

31

 

 

 

5,840

 

Transaction and integration costs(2)

 

 

 

1,273

 

 

647

 

 

 

1,791

 

 

 

3,711

 

Cash settled equity

 

 

 

 

 

 

 

 

(13

)

 

 

(13

)

Stock-based compensation

 

 

 

17

 

 

29

 

 

 

1,420

 

 

 

1,466

 

COVID-19 related costs, net of grant income

 

122

 

 

349

 

 

 

 

 

 

 

 

471

 

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

 

65

 

 

 

 

 

 

 

(548

)

 

 

(483

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

37,217

 

$

16,621

 

$

4,608

 

 

$

(8,151

)

 

$

50,295

 

 

(1) Restructuring and related costs include professional services costs and severance and recruiting costs.

(2) Transaction and integration costs include SOX integration efforts at recently acquired subsidiaries and acquisition costs.

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 March 31,

 

 

2023

 

 

 

2022

 

 

 

 

 

Net income (loss)

$

(3,962

)

 

$

318

 

 

 

 

 

Restructuring and related costs(1)

 

14,445

 

 

 

5,840

 

Transaction and integration costs(2)

 

873

 

 

 

3,711

 

Settlement related costs

 

275

 

 

 

 

Cash settled equity

 

 

 

 

(13

)

Stock-based compensation

 

848

 

 

 

1,466

 

Equity in net income of investee, net of tax

 

(2,025

)

 

 

(483

)

Intangible amortization expense

 

19,901

 

 

 

19,490

 

COVID-19 related costs, net of grant income

 

 

 

 

471

 

Tax effected impact of adjustments

 

(10,154

)

 

 

(8,629

)

 

 

 

 

Adjusted net income

$

20,201

 

 

$

22,171

 

 

 

 

 

Adjusted EPS

$

1.42

 

 

$

1.57

 

 

 

 

 

Diluted weighted-average number of common shares outstanding

 

14,193,257

 

 

 

14,123,825

 

 

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

(2) Transaction and integration costs consist of fees incurred related to SOX implementation and business integration efforts.

Modivcare Inc.

Unaudited Key Statistical and Financial Data

(in thousands, except for statistical data)

 

 

Three months ended

 

 

 

Three months ended

 

 

 

March 31,
2023

 

March 31,
2022

 

%
Change

 

December 31,
2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

NEMT Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

469,463

 

 

$

400,920

 

 

17.1

%

 

$

458,993

 

 

2.3

%

Purchased services expense

 

344,420

 

 

 

277,947

 

 

23.9

%

 

 

331,708

 

 

3.8

%

Payroll and other expense

 

63,266

 

 

 

54,149

 

 

16.8

%

 

 

54,938

 

 

15.2

%

Service expense

$

407,686

 

 

$

332,096

 

 

22.8

%

 

$

386,646

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

Gross profit

$

61,777

 

 

$

68,824

 

 

(10.2

)%

 

$

72,347

 

 

(14.6

)%

Gross margin

 

13.2

%

 

 

17.2

%

 

 

 

 

15.8

%

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

33,875

 

 

$

37,333

 

 

(9.3

)%

 

$

44,199

 

 

(23.4

)%

G&A expense adjustments:

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

7,099

 

 

 

5,604

 

 

26.7

%

 

 

13,869

 

 

(48.8

)%

Transaction and integration costs

 

 

 

 

 

 

N/M

 

 

 

4,219

 

 

%

Settlement related costs

 

275

 

 

 

 

 

N/M

 

 

 

 

 

N/M

 

Adjusted G&A expense

$

26,501

 

 

$

31,729

 

 

(16.5

)%

 

$

26,111

 

 

1.5

%

Adjusted G&A expense % of revenue

 

5.6

%

 

 

7.9

%

 

 

 

 

5.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

16,171

 

 

$

17,746

 

 

(8.9

)%

 

$

17,204

 

 

(6.0

)%

Net income margin

 

3.4

%

 

 

4.4

%

 

 

 

 

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

35,276

 

 

$

37,217

 

 

(5.2

)%

 

$

46,260

 

 

(23.7

)%

Adjusted EBITDA margin

 

7.5

%

 

 

9.3

%

 

 

 

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Total paid trips (in thousands)

 

8,202

 

 

 

7,111

 

 

15.3

%

 

 

7,807

 

 

5.1

%

Average monthly members (in thousands)

 

33,704

 

 

 

32,176

 

 

4.7

%

 

 

34,819

 

 

(3.2

)%

 

 

 

 

 

 

 

 

 

 

Revenue per member per month

$

4.64

 

 

$

4.15

 

 

11.8

%

 

$

4.39

 

 

5.7

%

Revenue per trip

$

57.24

 

 

$

56.38

 

 

1.5

%

 

$

58.79

 

 

(2.6

)%

Monthly utilization

 

8.1

%

 

 

7.4

%

 

 

 

 

7.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Purchased services per trip

$

41.99

 

 

$

39.09

 

 

7.4

%

 

$

42.49

 

 

(1.2

)%

Payroll and other per trip

$

7.71

 

 

$

7.61

 

 

1.3

%

 

$

7.04

 

 

9.5

%

Total service expense per trip

$

49.70

 

 

$

46.70

 

 

6.4

%

 

$

49.53

 

 

0.3

%

 

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

 

 

 

Three months ended

 

 

 

March 31,
2023

 

March 31,
2022

 

%
Change

 

December 31,
2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

Personal Care Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

174,131

 

 

$

159,698

 

 

9.0

%

 

$

176,013

 

 

(1.1

)%

Service expense

 

136,090

 

 

 

122,232

 

 

11.3

%

 

 

140,642

 

 

(3.2

)%

Gross profit

$

38,041

 

 

$

37,466

 

 

1.5

%

 

$

35,371

 

 

7.5

%

Gross Margin

 

21.8

%

 

 

23.5

%

 

 

 

 

20.1

%

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

22,663

 

 

$

23,133

 

 

(2.0

)%

 

$

22,829

 

 

(0.7

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

181

 

 

(100.0

)%

 

 

(6

)

 

(100.0

)%

Transaction and integration costs

 

277

 

 

 

1,273

 

 

(78.2

)%

 

 

1,216

 

 

(77.2

)%

Stock-based compensation

 

 

 

 

17

 

 

(100.0

)%

 

 

 

 

N/M

 

Adjusted G&A expense

$

22,386

 

 

$

21,662

 

 

3.3

%

 

$

21,619

 

 

3.5

%

Adjusted G&A expense % of revenue

 

12.9

%

 

 

13.6

%

 

 

 

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

2,825

 

 

$

1,656

 

 

70.6

%

 

$

2,349

 

 

20.3

%

Net income margin

 

1.6

%

 

 

1.0

%

 

 

 

 

1.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

17,119

 

 

$

16,621

 

 

3.0

%

 

$

16,559

 

 

3.4

%

Adjusted EBITDA margin

 

9.8

%

 

 

10.4

%

 

 

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Total hours (in thousands)

 

6,824

 

 

 

6,535

 

 

4.4

%

 

 

6,842

 

 

(0.3

)%

Revenue per hour

$

25.52

 

 

$

24.44

 

 

4.4

%

 

$

25.73

 

 

(0.8

)%

Service expense per hour

$

19.94

 

 

$

18.70

 

 

6.6

%

 

$

20.56

 

 

(3.0

)%

 

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

 

 

 

Three months ended

 

 

 

March 31,
2023

 

March 31,
2022

 

%
Change

 

December 31,
2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

RPM Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

18,712

 

 

$

13,857

 

 

35.0

%

 

$

18,915

 

 

(1.1

)%

Service expense

 

6,490

 

 

 

4,987

 

 

30.1

%

 

 

6,678

 

 

(2.8

)%

Gross profit

$

12,222

 

 

$

8,870

 

 

37.8

%

 

$

12,237

 

 

(0.1

)%

Gross Margin

 

65.3

%

 

 

64.0

%

 

 

 

 

64.7

%

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

5,769

 

 

$

4,962

 

 

16.3

%

 

$

5,636

 

 

2.4

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

24

 

 

(100.0

)%

 

 

 

 

N/M

 

Transaction and integration costs

 

32

 

 

 

647

 

 

(95.1

)%

 

 

174

 

 

(81.6

)%

Stock-based compensation

 

 

 

 

29

 

 

(100.0

)%

 

 

 

 

N/M

 

Adjusted G&A expense

$

5,737

 

 

$

4,262

 

 

34.6

%

 

$

5,462

 

 

5.0

%

Adjusted G&A expense % of revenue

 

30.7

%

 

 

30.8

%

 

 

 

 

28.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

429

 

 

$

(162

)

 

N/M

 

 

$

672

 

 

(36.2

)%

Net income (loss) margin

 

2.3

%

 

 

(1.2

)%

 

 

 

 

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

6,485

 

 

$

4,608

 

 

40.7

%

 

$

6,775

 

 

(4.3

)%

Adjusted EBITDA margin

 

34.7

%

 

 

33.3

%

 

 

 

 

35.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Average monthly members (in thousands)

 

235

 

 

 

169

 

 

39.1

%

 

 

236

 

 

(0.4

)%

Revenue per member per month

$

26.54

 

 

$

27.33

 

 

(2.9

)%

 

$

26.72

 

 

(0.7

)%

Service expense per member per month

$

9.21

 

 

$

9.84

 

 

(6.4

)%

 

$

9.43

 

 

(2.3

)%

 

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)

 

 

Three months ended

 

 

 

Three months ended

 

 

 

March 31,
2023

 

March 31,
2022

 

%
Change

 

December 31,
2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

Corporate and Other Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

17,406

 

 

$

11,380

 

 

53.0

%

 

$

17,399

 

 

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

7,346

 

 

 

31

 

 

N/M

 

 

 

 

 

N/M

 

Transaction and integration costs

 

564

 

 

 

1,791

 

 

(68.5

)%

 

 

2,050

 

 

(72.5

)%

Settlement related costs

 

 

 

 

 

 

N/M

 

 

 

3,564

 

 

(100.0

)%

Cash settled equity

 

 

 

 

(13

)

 

(100.0

)%

 

 

19

 

 

(100.0

)%

Stock-based compensation

 

848

 

 

 

1,420

 

 

(40.3

)%

 

 

1,823

 

 

(53.5

)%

Adjusted G&A expense

$

8,648

 

 

$

8,151

 

 

6.1

%

 

$

9,943

 

 

(13.0

)%

Adjusted G&A expense % of consolidated revenue

 

1.3

%

 

 

1.4

%

 

 

 

 

1.5

%

 

 

 

Three months ended

 

 

 

Three months ended

 

 

 

March 31,
2023

 

March 31,
2022

 

%
Change

 

December 31,
2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

Consolidated Modivcare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

79,713

 

 

$

76,808

 

 

3.8

%

 

$

90,063

 

 

(11.5

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

14,445

 

 

 

5,840

 

 

147.3

%

 

 

13,863

 

 

4.2

%

Transaction and integration costs

 

873

 

 

 

3,711

 

 

(76.5

)%

 

 

7,659

 

 

(88.6

)%

Settlement related costs

 

275

 

 

 

 

 

N/M

 

 

 

3,564

 

 

(92.3

)%

Cash settled equity

 

 

 

 

(13

)

 

(100.0

)%

 

 

19

 

 

(100.0

)%

Stock-based compensation

 

848

 

 

 

1,466

 

 

(42.2

)%

 

 

1,823

 

 

(53.5

)%

Adjusted G&A expense

$

63,272

 

 

$

65,804

 

 

(3.8

)%

 

$

63,135

 

 

0.2

%

Adjusted G&A expense % of revenue

 

9.6

%

 

 

11.5

%

 

 

 

 

9.7

%

 

 

 

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
(303) 728-7012
Kevin.Ellich@modivcare.com

Source: Modivcare Inc.