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Jun 30, 2023

Modivcare Q2 2023 Earnings Report

Reported an 11.3% increase in service revenue, driven by growth in Home and Mobility businesses, but experienced a net loss primarily due to a goodwill impairment.

Key Takeaways

Modivcare's Q2 2023 results showed revenue growth of 11.3% driven by strong growth across its Home and Mobility businesses. However, the company reported a significant net loss due to a goodwill impairment of $183.1 million and adjusted its full-year Adjusted EBITDA guidance downward due to increased utilization and implementation delays.

Service revenue increased by 11.3% to $699.1 million compared to Q2 2022.

Net loss was $190.9 million, or $13.47 per diluted common share, primarily due to a goodwill impairment of $183.1 million.

Adjusted EPS was $1.47 per diluted common share.

Cash used in operating activities during the quarter was $108.2 million.

Total Revenue
$699M
Previous year: $628M
+11.3%
EPS
$1.47
Previous year: $1.99
-26.1%
Adjusted EBITDA
$52.4M
Gross Profit
$110M
Previous year: $124M
-11.4%
Cash and Equivalents
$6.9M
Previous year: $88M
-92.2%
Free Cash Flow
-$117M
Previous year: -$27.6M
+324.6%
Total Assets
$1.79B
Previous year: $2.06B
-13.3%

Modivcare

Modivcare

Forward Guidance

Modivcare updated its revenue guidance to $2.75 billion - $2.80 billion and adjusted EBITDA guidance to $200 million - $210 million.