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Mar 31, 2023

Modivcare Q1 2023 Earnings Report

Reported solid first quarter results with revenue growth and maintained 2023 outlook.

Key Takeaways

Modivcare reported a 15.3% increase in service revenue, driven by growth across all segments. The company maintained its 2023 revenue and Adjusted EBITDA guidance.

Service revenue increased by 15.3% to $662.3 million compared to Q1 2022.

Net loss was $4.0 million, or $0.28 per diluted common share.

Adjusted EPS was $1.42 per diluted common share.

The company maintained its 2023 revenue and Adjusted EBITDA guidance.

Total Revenue
$662M
Previous year: $574M
+15.3%
EPS
$1.42
Previous year: $1.57
-9.6%
Gross Profit
$112M
Previous year: $115M
-2.7%
Cash and Equivalents
$12.8M
Previous year: $194M
-93.4%
Free Cash Flow
-$16M
Previous year: $62.9M
-125.4%
Total Assets
$1.94B
Previous year: $2.11B
-8.1%

Modivcare

Modivcare

Forward Guidance

Modivcare maintained its 2023 revenue and Adjusted EBITDA guidance. Revenue is expected to be between $2.575 billion and $2.600 billion. Adjusted EBITDA is expected to be between $225 million and $235 million.

Positive Outlook

  • Recent new contract wins
  • Strong pipeline for new business
  • Continued success of Home business
  • Shift to home-based care
  • Initiatives implemented over the past few quarters will drive efficiencies and operating leverage throughout the year

Challenges Ahead

  • 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
  • Inability to control reimbursement rates received for services
  • Cost containment initiatives undertaken by private third-party payors
  • Effects of a public health emergency