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Sep 30, 2024
Modivcare Q3 2024 Earnings Report
Reported a slight revenue increase and a net loss, influenced by increased interest expenses and debt extinguishment costs.
Key Takeaways
Modivcare's Q3 2024 results showed a 2.2% increase in service revenue to $702.0 million. However, the company reported a net loss of $26.6 million, or negative $1.87 per diluted common share, due to increased interest expense and a loss on debt extinguishment. Adjusted EBITDA was $43.2 million, with adjusted EPS at $0.45. The company is focused on cost savings and growth in its personal care services and remote patient monitoring segments and has affirmed its 2024 guidance.
Service revenue increased by 2.2% year-over-year to $702.0 million.
Net loss was $26.6 million, or negative $1.87 per diluted common share.
Adjusted EBITDA was $43.2 million, with adjusted EPS at $0.45 per diluted common share.
The company proactively amended its credit agreement, securing temporary relief on debt covenants.
Modivcare
Modivcare
Forward Guidance
Modivcare affirms its revenue guidance of $2.7 billion to $2.9 billion and adjusted EBITDA guidance of $170 million to $180 million for fiscal year 2024. The company anticipates Adjusted EBITDA growth in excess of 10% in 2025, based on current 2024 guidance.
Positive Outlook
- Revenue guidance affirmed between $2.7 billion and $2.9 billion.
- Adjusted EBITDA guidance affirmed between $170 million and $180 million.
- Expecting Adjusted EBITDA growth in excess of 10% in 2025.
- Strategic initiatives are driving substantial cost savings in the NEMT segment.
- Personal care services segment is steadily growing with improving margins.
Challenges Ahead
- Guidance excludes the effects of any future merger, acquisition or disposition activity.
- Guidance is based on the current operating environment.
- The broader healthcare market is experiencing shifts.
- Company is working toward a long-term solution for debt covenants.
- Company need to thoughtfully and strategically assess the best approach to de-lever the balance sheet and optimize value for stakeholders.