Modivcare Reports Fourth Quarter and Full Year 2022 Financial Results; Issues 2023 Guidance

February 23, 2023

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, 2022.

Fourth Quarter 2022 Highlights:

  • Service revenue of $653.9 million, a 14% increase as compared to $575.8 million in the fourth quarter of 2021
  • Net loss of $6.9 million, or $0.49 per diluted common share
  • Adjusted EBITDA of $59.7 million, adjusted net income of $29.8 million and adjusted EPS of $2.11 per diluted common share
  • Net cash used in operating activities during the quarter of $56.0 million
  • Cash and cash equivalents of $14.5 million as of December 31, 2022, with $1,000.0 million principal amount of debt outstanding related to the Senior Unsecured Notes due 2025 and 2029

Full Year 2022 Highlights:

  • Service revenue of $2,504.4 million, a 25% increase as compared to $1,996.9 million in 2021
  • Net loss of $31.8 million, or $2.26 per diluted common share
  • Adjusted EBITDA of $221.9 million, adjusted net income of $103.4 million and adjusted EPS of $7.32 per diluted common share
  • Net cash used in operating activities in 2022 of $10.4 million
  • On February 3, 2022, Modivcare Inc. entered into a new senior secured revolving credit facility with total borrowing capacity of $325.0 million and a maturity date in February 2027. This new facility was undrawn at closing and replaces the Company’s prior $225.0 million revolving credit facility.

“We reported strong financial results for 2022 with revenue and Adjusted EBITDA exceeding the high end of our guidance ranges. Solid fourth quarter 2022 results were highlighted by 14 percent revenue growth, driven by mid-teens membership growth and 12 percent growth from our personal care business,” said Heath Sampson, President and Chief Executive Officer. “Our 2023 guidance affirms our confidence in continued growth this year and our long-term outlook. As we continue our journey to become One Modivcare, which is aligning across all of our supportive care services to better serve the needs of our members and customers, we are focused on building for scale, driving efficiencies, and growing our business in 2023. I am grateful and proud of our team’s dedication and hard work. Our supportive care services are uniquely positioned to provide the highest quality, best-in-class member experience for approximately 35 million members in the most cost-effective manner for our customers and the healthcare system.”

2023 Guidance

Our 2023 guidance is 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.

Fourth Quarter 2022 Results

For the fourth quarter of 2022, the Company reported revenue of $653.9 million, an increase of 14% from $575.8 million in the fourth quarter of 2021.

Operating income was $6.6 million, or 1% of revenue, in the fourth quarter of 2022, compared to $20.2 million, or 4% of revenue, in the fourth quarter of 2021. Net loss was $6.9 million, or $0.49 per common share in the fourth quarter of 2022, compared to $31.5 million, or $2.25 per common share, in the fourth quarter of 2021.

Adjusted EBITDA was $59.7 million, or 9% of revenue, in the fourth quarter of 2022, compared to $57.5 million, or 10% of revenue, in the fourth quarter of 2021.

Adjusted net income in the fourth quarter of 2022 was $29.8 million or $2.11 per diluted common share, compared to $29.8 million, or $2.11 per diluted common share, in the fourth quarter of 2021.

Full Year 2022 Results

For the full year 2022, the Company reported revenue of $2,504.4 million, an increase of 25% from $1,996.9 million in 2021.

Operating income was $57.1 million, or 2% of revenue, for 2022, compared to $89.4 million, or 4% of revenue, for 2021. Net loss in 2022 was $31.8 million, or $2.26 per common share, compared to a net loss of $6.6 million, or $0.47 per common share, in 2021.

Adjusted EBITDA for 2022 was $221.9 million or 9% of revenue, compared to $205.0 million, or 10% of revenue, in 2021.

Adjusted net income for 2022 was $103.4 million or $7.32 per diluted common share, compared to $112.4 million, or $7.90 per diluted common share, for 2021.

Organizational Consolidation and Change in Segments

We operate four reportable business segments: NEMT, Personal Care, RPM, and Corporate and Other. Effective January 1, 2022, the Company completed its segment reorganization which resulted in the addition of a Corporate segment that includes the costs associated with the Company's corporate operations. The operating results of our Corporate segment include our activities related to executive, accounting, finance, internal audit, tax, legal and certain strategic and corporate development functions for each segment, as well as the results of our Matrix investment. The Company reclassified certain costs associated with this reorganization for the three and twelve months ended December 31, 2021 to conform to this presentation.

Fourth Quarter Earnings Conference Call

Modivcare will hold a conference call to discuss its financial results on Thursday, February 23, 2023 at 8:00 a.m. ET. To access the call, please dial:

US toll-free: 1 (887) 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. (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 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, Adjusted EBITDA margin and Adjusted G&A expense for the Company and its segments, and Adjusted Net Income and Adjusted EPS for the Company, 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, (9) transaction related financing expense, and (10) 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 updated 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 long-lived assets; any failure to maintain or to develop further reliable, efficient and secure information technology systems; an inability to attract and retain qualified employees; any acquisition or acquisition integration efforts; 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; 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; acquired unknown liabilities in connection with the acquisition of 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 shortages in qualified employees and management; labor disputes or disruptions, in particular in New York; becoming subject to malpractice or other similar claims; and our reliance on others for the financial condition of our equity investment in Matrix.

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 December 31,

 

Year ended December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

 

Service revenue, net

 

$

653,921

 

 

$

575,775

 

 

$

2,504,393

 

 

$

1,996,892

 

Grant income

 

 

2,764

 

 

 

1,941

 

 

 

7,351

 

 

 

5,441

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Service expense

 

 

533,966

 

 

 

445,128

 

 

 

2,032,074

 

 

 

1,584,298

 

General and administrative expense

 

 

90,063

 

 

 

92,079

 

 

 

322,171

 

 

 

271,674

 

Depreciation and amortization

 

 

26,039

 

 

 

20,331

 

 

 

100,415

 

 

 

56,998

 

Total operating expenses

 

 

650,068

 

 

 

557,538

 

 

 

2,454,660

 

 

 

1,912,970

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

6,617

 

 

 

20,178

 

 

 

57,084

 

 

 

89,363

 

 

 

 

 

 

 

 

 

 

Other expenses:

 

 

 

 

 

 

 

 

Interest expense, net

 

 

15,532

 

 

 

14,669

 

 

 

61,961

 

 

 

49,081

 

Income (loss) before income taxes and equity method investment

 

 

(8,915

)

 

 

5,509

 

 

 

(4,877

)

 

 

40,282

 

Provision (benefit) for income taxes

 

 

(3,912

)

 

 

208

 

 

 

(3,035

)

 

 

8,617

 

Equity in net loss of investee, net of tax

 

 

1,944

 

 

 

36,826

 

 

 

29,964

 

 

 

38,250

 

Net loss

 

$

(6,947

)

 

$

(31,525

)

 

$

(31,806

)

 

$

(6,585

)

 

 

 

 

 

 

 

 

 

Loss per common share:

 

 

 

 

 

 

 

 

Basic

 

$

(0.49

)

 

$

(2.25

)

 

$

(2.26

)

 

$

(0.47

)

Diluted

 

$

(0.49

)

 

$

(2.25

)

 

$

(2.26

)

 

$

(0.47

)

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

14,123,013

 

 

 

13,998,487

 

 

 

14,061,839

 

 

 

14,054,060

 

Diluted

 

 

14,123,013

 

 

 

13,998,487

 

 

 

14,061,839

 

 

 

14,054,060

 

Modivcare Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

 

 

December 31,

 

 

2022

 

2021

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

14,451

 

$

133,139

Accounts receivable, net

 

 

294,341

 

 

 

233,121

 

Other current assets (1)

 

 

37,362

 

 

 

43,574

 

Total current assets

 

 

346,154

 

 

 

409,834

 

Operating lease right-of-use assets

 

 

39,405

 

 

 

43,750

 

Property and equipment, net

 

 

69,138

 

 

 

53,549

 

Goodwill and intangible assets, net

 

 

1,408,063

 

 

 

1,415,000

 

Equity investment

 

 

41,303

 

 

 

83,069

 

Other long-term assets

 

 

40,209

 

 

 

22,223

 

Total assets

 

$

1,944,272

 

 

$

2,027,425

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

54,959

 

 

$

8,690

 

Accrued contract payables

 

 

194,287

 

 

 

281,586

 

Accrued expenses and other current liabilities

 

 

135,860

 

 

 

123,791

 

Accrued transportation costs

 

 

96,851

 

 

 

103,294

 

Current portion of operating lease liabilities

 

 

9,640

 

 

 

9,873

 

Total current liabilities

 

 

491,597

 

 

 

527,234

 

Long-term debt, net of deferred financing costs

 

 

979,361

 

 

 

975,225

 

Operating lease liabilities, less current portion

 

 

32,088

 

 

 

34,524

 

Other long-term liabilities (2)

 

 

86,670

 

 

 

117,175

 

Total liabilities

 

 

1,589,716

 

 

 

1,654,158

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

Stockholders' equity

 

 

354,556

 

 

 

373,267

 

Total liabilities and stockholders' equity

 

$

1,944,272

 

 

$

2,027,425

 

(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)

 

 

 

 

 

 

 

Year ended December 31,

 

 

2022

 

2021

Operating activities

 

 

 

 

Net loss

 

$

(31,806

)

 

$

(6,585

)

Depreciation and amortization

 

 

100,415

 

 

 

56,998

 

Stock-based compensation

 

 

6,872

 

 

 

5,904

 

Equity in net loss of investee

 

 

40,916

 

 

 

53,092

 

Deferred income taxes

 

 

(36,663

)

 

 

(17,691

)

Reduction of right-of-use asset

 

 

11,640

 

 

 

11,330

 

Other non-cash items

 

 

5,125

 

 

 

2,730

 

Changes in working capital

 

 

(106,941

)

 

 

81,062

 

Net cash provided by (used in) operating activities

 

 

(10,442

)

 

 

186,840

 

 

 

 

 

 

Investing activities

 

 

 

 

Purchase of property and equipment

 

 

(33,004

)

 

 

(21,316

)

Acquisitions, net of cash acquired

 

 

(78,809

)

 

 

(664,309

)

Net cash used in investing activities

 

 

(111,813

)

 

 

(685,625

)

 

 

 

 

 

Financing activities

 

 

 

 

Proceeds from debt

 

 

114,000

 

 

 

625,000

 

Repayment of debt

 

 

(114,000

)

 

 

(125,000

)

Repurchase of common stock, for treasury

 

 

 

 

 

(39,994

)

Payment of debt issuance costs

 

 

(2,415

)

 

 

(13,486

)

Proceeds from common stock issued pursuant to stock option exercise

 

 

6,789

 

 

 

3,227

 

Restricted stock surrendered for employee tax payment

 

 

(792

)

 

 

(896

)

Other financing activities

 

 

226

 

 

 

 

Net cash provided by financing activities

 

 

3,808

 

 

 

448,851

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

(118,447

)

 

 

(49,934

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

133,422

 

 

 

183,356

 

Cash, cash equivalents and restricted cash at end of period

 

$

14,975

 

 

$

133,422

 

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Three months ended December 31, 2022

 

NEMT

 

Personal
Care

 

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

)

Provision (benefit) for income taxes

 

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

 

Provision (benefit) for income taxes

 

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

 

Cash settled equity

 

 

 

 

 

 

 

 

 

 

19

 

 

 

19

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

1,823

 

 

 

1,823

 

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)

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 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, 2021

 

NEMT

 

Personal
Care

 

RPM

 

Corporate
and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

402,528

 

 

$

157,194

 

 

$

16,053

 

$

 

 

$

575,775

 

Grant income

 

 

 

 

1,941

 

 

 

 

 

 

 

 

 

1,941

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

316,715

 

 

 

123,575

 

 

 

4,838

 

 

 

 

 

 

445,128

 

General and administrative expense

 

46,532

 

 

 

25,098

 

 

 

5,575

 

 

 

14,874

 

 

 

92,079

 

Depreciation and amortization

 

7,314

 

 

 

9,036

 

 

 

3,981

 

 

 

 

 

 

20,331

 

Total operating expenses

 

370,561

 

 

 

157,709

 

 

 

14,394

 

 

 

14,874

 

 

 

557,538

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

31,967

 

 

 

1,426

 

 

 

1,659

 

 

 

(14,874

)

 

 

20,178

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

14,669

 

 

 

14,669

 

Income (loss) before income taxes and equity method investment

 

31,967

 

 

 

1,426

 

 

 

1,659

 

 

 

(29,543

)

 

 

5,509

 

Provision (benefit) for income taxes

 

3,940

 

 

 

(42

)

 

 

341

 

 

 

(4,031

)

 

 

208

 

Equity in net loss of investee, net of tax

 

 

 

 

 

 

 

 

 

 

36,826

 

 

 

36,826

 

Net Income (loss)

 

28,027

 

 

 

1,468

 

 

 

1,318

 

 

 

(62,338

)

 

 

(31,525

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

14,669

 

 

 

14,669

 

Provision (benefit) for income taxes

 

3,940

 

 

 

(42

)

 

 

341

 

 

 

(4,031

)

 

 

208

 

Depreciation and amortization

 

7,314

 

 

 

9,036

 

 

 

3,981

 

 

 

 

 

 

20,331

 

EBITDA

 

39,281

 

 

 

10,462

 

 

 

5,640

 

 

 

(51,700

)

 

 

3,683

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

9,550

 

 

 

304

 

 

 

 

 

 

200

 

 

 

10,054

 

Transaction and integration costs(2)

 

(19

)

 

 

3,463

 

 

 

721

 

 

 

2,987

 

 

 

7,152

 

Cash settled equity

 

 

 

 

 

 

 

 

 

 

20

 

 

 

20

 

Stock-based compensation

 

 

 

 

(58

)

 

 

 

 

 

1,068

 

 

 

1,010

 

COVID-19 related costs, net of grant income

 

101

 

 

 

(1,340

)

 

 

 

 

 

 

 

 

(1,239

)

Equity in net loss of investee, net of tax

 

 

 

 

 

 

 

 

 

 

36,826

 

 

 

36,826

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

48,913

 

 

$

12,831

 

 

$

6,361

 

 

$

(10,599

)

 

$

57,506

 

(1)

Restructuring and related costs include professional fees for strategic initiatives and severance and office closure costs.

 

 

(2)

Transaction and integration costs consist of fees incurred in the acquisitions of Care Finders and VRI.

Modivcare Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures

Segment Information and Adjusted EBITDA

(in thousands)

 

 

Year ended December 31, 2022

 

NEMT

 

Personal
Care

 

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

)

Provision (benefit) for income taxes

 

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

 

Provision (benefit) for income taxes

 

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

 

Cash settled equity

 

 

 

 

 

 

 

 

 

 

108

 

 

 

108

 

Stock-based compensation

 

 

 

 

190

 

 

 

86

 

 

 

5,684

 

 

 

5,960

 

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)

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 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, 2021

 

NEMT

 

Personal
Care

 

RPM

 

Corporate
and Other

 

Total

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

1,483,696

 

$

495,579

 

 

$

17,617

 

$

 

 

$

1,996,892

 

Grant income

 

 

 

 

5,441

 

 

 

 

 

 

 

 

 

5,441

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Service expense

 

1,186,185

 

 

 

392,508

 

 

 

5,605

 

 

 

 

 

 

1,584,298

 

General and administrative expense

 

132,493

 

 

 

70,704

 

 

 

5,791

 

 

 

62,686

 

 

 

271,674

 

Depreciation and amortization

 

29,058

 

 

 

23,759

 

 

 

4,181

 

 

 

 

 

 

56,998

 

Total operating expenses

 

1,347,736

 

 

 

486,971

 

 

 

15,577

 

 

 

62,686

 

 

 

1,912,970

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

135,960

 

 

 

14,049

 

 

 

2,040

 

 

 

(62,686

)

 

 

89,363

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

49,081

 

 

 

49,081

 

Income (loss) before income taxes and equity method investment

 

135,960

 

 

 

14,049

 

 

 

2,040

 

 

 

(111,767

)

 

 

40,282

 

Provision (benefit) for income taxes

 

30,319

 

 

 

3,152

 

 

 

447

 

 

 

(25,301

)

 

 

8,617

 

Equity in net loss of investee, net of tax

 

 

 

 

 

 

 

 

 

 

38,250

 

 

 

38,250

 

Net Income (loss)

 

105,641

 

 

 

10,897

 

 

 

1,593

 

 

 

(124,716

)

 

 

(6,585

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

49,081

 

 

 

49,081

 

Provision (benefit) for income taxes

 

30,319

 

 

 

3,152

 

 

 

447

 

 

 

(25,301

)

 

 

8,617

 

Depreciation and amortization

 

29,058

 

 

 

23,759

 

 

 

4,181

 

 

 

 

 

 

56,998

 

EBITDA

 

165,018

 

 

 

37,808

 

 

 

6,221

 

 

 

(100,936

)

 

 

108,111

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

19,609

 

 

 

304

 

 

 

 

 

 

1,680

 

 

 

21,593

 

Transaction and integration costs(2)

 

567

 

 

 

6,930

 

 

 

721

 

 

 

17,370

 

 

 

25,588

 

Cash settled equity

 

 

 

 

 

 

 

 

 

 

9,165

 

 

 

9,165

 

Stock-based compensation

 

 

 

 

18

 

 

 

 

 

 

4,775

 

 

 

4,793

 

COVID-19 related costs, net of grant income

 

719

 

 

 

(3,211

)

 

 

 

 

 

 

 

 

(2,492

)

Equity in net loss of investee, net of tax

 

 

 

 

 

 

 

 

 

 

38,250

 

 

 

38,250

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

185,913

 

 

$

41,849

 

 

$

6,942

 

 

$

(29,696

)

 

$

205,008

 

(1)

Restructuring and related costs include professional fees for strategic initiatives and severance and office closure costs.

 

 

(2)

Transaction and integration costs consist of fees incurred in the acquisitions of Care Finders and VRI.

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,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Net loss

$

(6,947

)

 

$

(31,525

)

 

$

(31,806

)

 

$

(6,585

)

 

 

 

 

 

 

 

 

Restructuring and related costs(1)

 

13,863

 

 

 

10,054

 

 

 

26,998

 

 

 

21,593

 

Transaction and integration costs(2)

 

7,659

 

 

 

7,152

 

 

 

23,971

 

 

 

25,588

 

Settlement related costs

 

3,564

 

 

 

 

 

 

9,564

 

 

 

 

Cash settled equity

 

19

 

 

 

20

 

 

 

108

 

 

 

9,165

 

Stock-based compensation

 

1,823

 

 

 

1,010

 

 

 

5,960

 

 

 

4,793

 

Equity in net loss of investee, net of tax

 

1,944

 

 

 

36,826

 

 

 

29,964

 

 

 

38,250

 

Intangible amortization expense

 

20,381

 

 

 

16,424

 

 

 

80,359

 

 

 

44,251

 

Transaction-related financing expense

 

 

 

 

 

 

 

 

 

 

6,630

 

COVID-19 related costs

 

67

 

 

 

(1,239

)

 

 

(2,198

)

 

 

(2,492

)

Tax effected impact of adjustments

 

(12,555

)

 

 

(8,896

)

 

 

(39,518

)

 

 

(28,840

)

 

 

 

 

 

 

 

 

Adjusted Net Income

$

29,818

 

 

$

29,826

 

 

$

103,402

 

 

$

112,353

 

 

 

 

 

 

 

 

 

Adjusted EPS

$

2.11

 

 

$

2.11

 

 

$

7.32

 

 

$

7.90

 

 

 

 

 

 

 

 

 

Diluted weighted-average number of common shares outstanding

 

14,149,333

 

 

 

14,149,143

 

 

 

14,126,912

 

 

 

14,224,302

 

(1)

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

 

 

(2)

Transaction and integration costs include certain transaction-related expenses, SOX implementation and business integration efforts.

Modivcare Inc.

Unaudited Key Statistical and Financial Data

(in thousands, except for statistical data)

 

 

Three months ended

 

 

 

Year ended

 

 

 

Three
months
ended

 

 

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

September
30, 2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEMT Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

458,993

 

 

$

402,528

 

 

14.0

%

 

$

1,768,442

 

 

$

1,483,696

 

 

19.2

%

 

$

459,796

 

 

(0.2

)%

Purchased services expense

 

331,708

 

 

 

266,443

 

 

24.5

%

 

 

1,267,006

 

 

 

991,502

 

 

27.8

%

 

 

340,138

 

 

(2.5

)%

Payroll and other expense

 

54,938

 

 

 

50,272

 

 

9.3

%

 

 

220,441

 

 

 

194,683

 

 

13.2

%

 

 

54,843

 

 

0.2

%

Service expense

$

386,646

 

 

$

316,715

 

 

22.1

%

 

$

1,487,447

 

 

$

1,186,185

 

 

25.4

%

 

$

394,981

 

 

(2.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

$

72,347

 

 

$

85,813

 

 

(15.7

)%

 

$

280,995

 

 

$

297,511

 

 

(5.6

)%

 

$

64,815

 

 

11.6

%

Gross margin

 

15.8

%

 

 

21.3

%

 

 

 

 

15.9

%

 

 

20.1

%

 

 

 

 

14.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

44,199

 

 

$

46,532

 

 

(5.0

)%

 

$

146,935

 

 

$

132,493

 

 

10.9

%

 

$

31,815

 

 

38.9

%

G&A expense adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

13,869

 

 

 

9,550

 

 

45.2

%

 

 

25,228

 

 

 

19,609

 

 

28.7

%

 

 

902

 

 

N/M

 

Transaction and integration costs

 

4,219

 

 

 

(19

)

 

N/M

 

 

 

4,225

 

 

 

567

 

 

N/M

 

 

 

6

 

 

N/M

 

Settlement related costs

$

 

 

$

 

 

N/M

 

 

$

5,500

 

 

$

 

 

N/M

 

 

$

5,500

 

 

N/M

 

Adjusted G&A expense

$

26,111

 

 

$

37,001

 

 

(29.4

)%

 

$

111,982

 

 

$

112,317

 

 

(0.3

)%

 

$

25,407

 

 

2.8

%

Adjusted G&A expense % of revenue

 

5.7

%

 

 

9.2

%

 

 

 

 

6.3

%

 

 

7.6

%

 

 

 

 

5.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

17,204

 

 

$

28,027

 

 

(38.6

)%

 

$

78,567

 

 

$

105,641

 

 

(25.6

)%

 

$

19,151

 

 

(10.2

)%

Net income margin

 

3.7

%

 

 

7.0

%

 

 

 

 

4.4

%

 

 

7.1

%

 

 

 

 

4.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

46,260

 

 

$

48,913

 

 

(5.4

)%

 

$

169,142

 

 

$

185,913

 

 

(9.0

)%

 

$

39,357

 

 

17.5

%

Adjusted EBITDA margin

 

10.1

%

 

 

12.2

%

 

 

 

 

9.6

%

 

 

12.5

%

 

 

 

 

8.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total paid trips (in thousands)

 

7,807

 

 

 

7,078

 

 

10.3

%

 

 

30,795

 

 

 

27,282

 

 

12.9

%

 

 

8,045

 

 

(3.0

)%

Average monthly members (in thousands)

 

34,819

 

 

 

30,032

 

 

15.9

%

 

 

34,203

 

 

 

29,906

 

 

14.4

%

 

 

36,026

 

 

(3.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per member per month

$

4.39

 

 

$

4.47

 

 

(1.8

)%

 

$

4.31

 

 

$

4.13

 

 

4.4

%

 

$

4.25

 

 

3.3

%

Revenue per trip

$

58.79

 

 

$

56.87

 

 

3.4

%

 

$

57.43

 

 

$

54.38

 

 

5.6

%

 

$

57.15

 

 

2.9

%

Monthly utilization

 

7.5

%

 

 

7.9

%

 

 

 

 

7.5

%

 

 

7.6

%

 

 

 

 

7.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased services per trip

$

42.49

 

 

$

37.64

 

 

12.9

%

 

$

41.14

 

 

$

36.34

 

 

13.2

%

 

$

42.28

 

 

0.5

%

Payroll and other per trip

$

7.04

 

 

$

7.10

 

 

(0.8

)%

 

$

7.16

 

 

$

7.14

 

 

0.3

%

 

$

6.82

 

 

3.2

%

Total service expense per trip

$

49.53

 

 

$

44.74

 

 

10.7

%

 

$

48.30

 

 

$

43.48

 

 

11.1

%

 

$

49.10

 

 

0.9

%

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, 2022

 

December
31, 2021

 

%
Change

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

September
30, 2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Care Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

176,013

 

 

$

157,194

 

 

12.0

%

 

$

667,674

 

 

$

495,579

 

 

34.7

%

 

$

169,226

 

 

4.0

%

Service expense

 

140,642

 

 

 

123,575

 

 

13.8

%

 

 

520,065

 

 

 

392,508

 

 

32.5

%

 

 

132,746

 

 

5.9

%

Gross profit

$

35,371

 

 

$

33,619

 

 

5.2

%

 

$

147,609

 

 

$

103,071

 

 

43.2

%

 

$

36,480

 

 

(3.0

)%

Gross Margin

 

20.1

%

 

 

21.4

%

 

 

 

 

22.1

%

 

 

20.8

%

 

 

 

 

21.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

22,829

 

 

$

25,098

 

 

(9.0

)%

 

$

91,365

 

 

$

70,704

 

 

29.2

%

 

$

22,057

 

 

3.5

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

(6

)

 

 

304

 

 

(102.0

)%

 

 

757

 

 

 

304

 

 

%

 

 

582

 

 

N/M

 

Transaction and integration costs

 

1,216

 

 

 

3,463

 

 

(64.9

)%

 

 

7,550

 

 

 

6,930

 

 

8.9

%

 

 

2,231

 

 

(45.5

)%

Stock-based compensation

 

 

 

 

(58

)

 

(100.0

)%

 

 

190

 

 

 

18

 

 

N/M

 

 

 

 

 

N/M

 

Adjusted G&A expense

$

21,619

 

 

$

21,389

 

 

1.1

%

 

$

82,868

 

 

$

63,452

 

 

30.6

%

 

$

19,244

 

 

12.3

%

Adjusted G&A expense % of revenue

 

12.3

%

 

 

13.6

%

 

 

 

 

12.4

%

 

 

12.8

%

 

 

 

 

11.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

2,349

 

 

$

1,468

 

 

60.0

%

 

$

9,760

 

 

$

10,897

 

 

(10.4

)%

 

$

1,632

 

 

43.9

%

Net income margin

 

1.3

%

 

 

0.9

%

 

 

 

 

1.5

%

 

 

2.2

%

 

 

 

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

16,559

 

 

$

12,831

 

 

29.1

%

 

$

69,765

 

 

$

41,849

 

 

66.7

%

 

$

18,684

 

 

(11.4

)%

Adjusted EBITDA margin

 

9.4

%

 

 

8.2

%

 

 

 

 

10.4

%

 

 

8.4

%

 

 

 

 

11.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total hours (in thousands)

 

6,842

 

 

 

6,857

 

 

(0.2

)%

 

 

26,918

 

 

 

21,188

 

 

27.0

%

 

 

6,836

 

 

0.1

%

Revenue per hour

$

25.73

 

 

$

22.92

 

 

12.3

%

 

$

24.80

 

 

$

23.39

 

 

6.0

%

 

$

24.76

 

 

3.9

%

Service expense per hour

$

20.56

 

 

$

18.02

 

 

14.1

%

 

$

19.32

 

 

$

18.53

 

 

4.3

%

 

$

19.42

 

 

5.9

%

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, 2022

 

December
31, 2021

 

%
Change

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

September
30, 2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RPM Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue, net

$

18,915

 

 

$

16,053

 

 

17.8

%

 

$

68,277

 

 

$

17,617

 

 

N/M

 

 

$

18,760

 

 

0.8

%

Service expense

 

6,678

 

 

 

4,838

 

 

38.0

%

 

 

24,562

 

 

 

5,605

 

 

N/M

 

 

 

6,836

 

 

(2.3

)%

Gross profit

$

12,237

 

 

$

11,215

 

 

9.1

%

 

$

43,715

 

 

$

12,012

 

 

N/M

 

 

$

11,924

 

 

2.6

%

Gross Margin

 

64.7

%

 

 

69.9

%

 

 

 

 

64.0

%

 

 

68.2

%

 

 

 

 

63.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

5,636

 

 

$

5,575

 

 

1.1

%

 

$

23,156

 

 

$

5,791

 

 

N/M

 

 

$

5,816

 

 

(3.1

)%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related charges

 

 

 

 

 

 

%

 

 

63

 

 

 

 

 

N/M

 

 

 

39

 

 

%

Transaction costs

 

174

 

 

 

721

 

 

(75.9

)%

 

 

2,927

 

 

 

721

 

 

N/M

 

 

 

471

 

 

(63.1

)%

Stock-based compensation

 

 

 

 

 

 

%

 

 

86

 

 

 

 

 

N/M

 

 

 

 

 

%

Adjusted G&A expense

$

5,462

 

 

$

4,854

 

 

12.5

%

 

$

20,080

 

 

$

5,070

 

 

N/M

 

 

$

5,306

 

 

2.9

%

Adjusted G&A expense % of revenue

 

28.9

%

 

 

30.2

%

 

 

 

 

29.4

%

 

 

28.8

%

 

 

 

 

28.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

672

 

 

$

1,318

 

 

(49.0

)%

 

$

497

 

 

$

1,593

 

 

N/M

 

 

$

462

 

 

45.5

%

Net income margin

 

3.6

%

 

 

8.2

%

 

 

 

 

0.7

%

 

 

9.0

%

 

 

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

6,775

 

 

$

6,361

 

 

6.5

%

 

$

23,635

 

 

$

6,942

 

 

N/M

 

 

$

6,618

 

 

2.4

%

Adjusted EBITDA margin

 

35.8

%

 

 

39.6

%

 

 

 

 

34.6

%

 

 

39.4

%

 

 

 

 

35.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average monthly members (in thousands)

 

236

 

 

 

173

 

 

36.4

%

 

 

210

 

 

 

173

 

 

21.4

%

 

 

230

 

 

2.6

%

Revenue per member per month

$

26.72

 

 

$

30.93

 

 

(13.6

)%

 

$

27.09

 

 

$

30.86

 

 

(12.2

)%

 

$

27.19

 

 

(1.7

)%

Service expense per member per month

$

9.43

 

 

$

9.32

 

 

1.2

%

 

$

9.75

 

 

$

9.82

 

 

(0.7

)%

 

$

9.91

 

 

(4.8

)%

N/M - Not Meaningful. The RPM Segment was established with the acquisition of VRI on September 22, 2021 and as such, the comparison of the YTD figures is not meaningful.

Modivcare Inc.

Unaudited Key Statistical and Financial Data

(in thousands)

 

 

Three months ended

 

 

 

Year ended

 

 

 

Three
months
ended

 

 

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

September
30, 2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

17,399

 

 

$

14,874

 

 

17.0

%

 

$

60,715

 

 

$

62,686

 

 

(3.1

)%

 

$

16,201

 

 

7.4

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

 

 

 

200

 

 

(100.0

)%

 

 

950

 

 

 

1,680

 

 

(43.5

)%

 

 

565

 

 

N/M

 

Transaction and integration costs

 

2,050

 

 

 

2,987

 

 

(31.4

)%

 

 

9,269

 

 

 

17,370

 

 

(46.6

)%

 

 

2,191

 

 

(6.4

)% 

Settlement related costs

 

3,564

 

 

 

 

 

N/M

 

 

 

4,064

 

 

 

 

 

N/M

 

 

 

500

 

 

N/M

 

Cash settled equity

 

19

 

 

 

20

 

 

(5.0

)%

 

 

108

 

 

 

9,165

 

 

(98.8

)%

 

 

82

 

 

(76.8

)%

Stock-based compensation

 

1,823

 

 

 

1,068

 

 

70.7

%

 

 

5,684

 

 

 

4,775

 

 

19.0

%

 

 

1

 

 

N/M

 

Adjusted G&A expense

$

9,943

 

 

$

10,599

 

 

(6.2

)%

 

$

40,640

 

 

$

29,696

 

 

36.9

%

$

12,862

 

 

(22.7

)%

Adjusted G&A expense % of consolidated revenue

 

1.5

%

 

 

1.8

%

 

 

 

 

1.6

%

 

 

1.5

%

 

 

 

 

2.0

%

 

 

 

Three months ended

 

 

 

Year ended

 

 

 

Three
months
ended

 

 

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

December
31, 2022

 

December
31, 2021

 

%
Change

 

September
30, 2022

 

QoQ %
Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Modivcare

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A expense

$

90,063

 

 

$

92,079

 

 

(2.2

) %

 

$

322,171

 

 

$

271,674

 

 

18.6

%

 

$

75,889

 

 

18.7

%

G&A expense adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and related costs

 

13,863

 

 

 

10,054

 

 

37.9

%

 

 

26,998

 

 

 

21,593

 

 

25.0

%

 

 

2,088

 

 

N/M

 

Transaction and integration costs

 

7,659

 

 

 

7,152

 

 

7.1

%

 

 

23,971

 

 

 

25,588

 

 

(6.3

)%

 

 

4,899

 

 

56.3

%

Settlement related costs

 

3,564

 

 

 

 

 

N/M

 

 

 

9,564

 

 

 

 

 

N/M

 

 

 

6,000

 

 

(40.6

)%

Cash settled equity

 

19

 

 

 

20

 

 

(5.0

)%

 

 

108

 

 

 

9,165

 

 

(98.8

)%

 

 

82

 

 

(76.8

)%

Stock-based compensation

 

1,823

 

 

 

1,010

 

 

80.5

%

 

 

5,960

 

 

 

4,793

 

 

24.3

%

 

 

1

 

 

N/M

 

Adjusted G&A expense

$

63,135

 

 

$

73,843

 

 

(14.5

)%

 

$

255,570

 

 

$

210,535

 

 

21.4

%

 

$

62,819

 

 

0.5

%

Adjusted G&A expense % of revenue

 

9.7

%

 

 

12.8

%

 

 

 

 

10.2

%

 

 

10.5

%

 

 

 

 

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.