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Mar 31, 2024
Modivcare Q1 2024 Earnings Report
Modivcare's financial performance remained stable with revenue increase and strategic transformation progress.
Key Takeaways
Modivcare reported first quarter 2024 results in line with previously announced guidance, with revenue increasing by 3.3% year-over-year. The company is focused on strategic transformation, cost savings initiatives, and refinancing its 2025 senior unsecured notes.
Service revenue increased by 3.3% year-over-year to $684.5 million.
Net loss was $22.3 million, or $1.57 per diluted common share.
Adjusted EBITDA was $32.1 million, with an adjusted net loss of $1.2 million and adjusted EPS of negative $0.09.
The company won $171.2 million of NEMT total contract value during the quarter.
Modivcare
Modivcare
Modivcare Revenue by Segment
Revenue by Segment
NEMT Revenue
CapyFin.comPCS Revenue
CapyFin.comMonitoring Revenue
CapyFin.com Forward Guidance
Modivcare maintained its revenue and adjusted EBITDA guidance ranges for fiscal year 2024.
Positive Outlook
- Revenue is expected to be between $2.7 billion and $2.9 billion.
- Adjusted EBITDA is expected to be between $190 million and $210 million.
- Digital integration and technology enhancement initiatives are progressing.
- Expected in-year cost savings of at least $34 million.
- Confident in path to exit the fourth quarter of 2024 with expected run-rate adjusted EBITDA of $220 million to $230 million.
Challenges Ahead
- Guidance excludes the effects of any future merger or acquisition activity.
- Guidance is based on the current operating environment.
- Medicaid redetermination headwinds.
- Recovery of utilization headwinds.
- Working capital normalization headwinds.
Revenue & Expenses
Visualization of income flow from segment revenue to net income