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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.
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