Modivcare Inc., (the “Company” or “Modivcare”) (Nasdaq: MODV), a
technology-enabled healthcare services company that provides a
platform of integrated supportive care solutions focused on
improving patient outcomes, today reported financial results for
the three and nine months ended September 30, 2022.
Third Quarter 2022
Highlights:
- Revenue of $647.8 million, a 31.4% increase as compared to
$493.1 million in Q3 2021
- Net loss of $28.5 million or $2.03 per diluted common share was
primarily attributable to a goodwill impairment for Matrix
- Adjusted EBITDA of $51.8 million, Adjusted Net Income of $22.7
million and Adjusted EPS of $1.61
- Net cash used in operating activities during the quarter of
$5.7 million
- Cash and cash equivalents of $72.7 million as of September 30,
2022, with $1,000.0 million principal amount of debt outstanding
related to the Senior Unsecured Notes due 2025 and 2029
- Undrawn $325.0 million revolving credit facility as of
September 30, 2022
“We delivered another solid quarter highlighted by over 30
percent revenue growth as compared to the same quarter last year,
driven by 23 percent membership growth from our non-emergency
medical transportation business and 43 percent revenue growth from
our personal care business,” said Heath Sampson, President and
Chief Executive Officer. “Modivcare is a uniquely positioned
supportive care platform company focused on addressing the social
determinants of health for our country’s most vulnerable
population. Our team is focused on executing our plan to provide
high-quality care and the best experience to our members while we
also progress on cross-selling, bundling, and value-based care
initiatives. I am very excited about the opportunity to continue to
improve outcomes for our members and reduce costs through our
services while creating meaningful long-term shareholder value. I
want to thank our team members at Modivcare for their hard work and
dedication executing our purpose and vision this quarter.”
Third Quarter 2022 Results
For the third quarter of 2022, the Company reported revenue of
$647.8 million, an increase of 31.4% from $493.1 million in the
third quarter of 2021.
Operating income was $12.4 million, or 1.9% of revenue, in the
third quarter of 2022, compared to operating income of $13.0
million, or 2.6% of revenue, in the third quarter of 2021. Net loss
in the third quarter of 2022 was $28.5 million, or $2.03 per
diluted common share, compared to net loss of $7.6 million, or
$0.54 per diluted common share, in the third quarter of 2021. Our
net loss in the third quarter of 2022 is attributable primarily to
a loss from our equity investment in Matrix of $26.4 million, net
of tax, due to a goodwill impairment taken by one of their
segments.
Adjusted EBITDA was $51.8 million, or 8.0% of revenue, in the
third quarter of 2022, compared to $44.3 million, or 9.0% of
revenue, in the third quarter of 2021.
Adjusted Net Income in the third quarter of 2022 was $22.7
million, or $1.61 per diluted common share, compared to $23.1
million, or $1.63 per diluted common share, in the third quarter of
2021.
The year-over-year increase in revenue was primarily due to
incremental revenue of $34.5 million and $12.5 million associated
with the acquisitions of Care Finders and VRI, respectively. NEMT
revenue also increased year-over-year due to higher trip volume,
which drove higher revenue per member in the third quarter of
2022.
Adjusted EBITDA increased in the third quarter of 2022 due to
incremental contribution from Care Finders and VRI. This was
partially offset by higher corporate general and administrative
cost as the Company continued to make investments in its employees
and technology.
Updated 2022 Guidance
We are updating our 2022 guidance as follows ($ in
millions):
Updated
Previous
Low
High
Low
High
Revenue
$
2,450
$
2,475
$
2,375
$
2,400
Adjusted EBITDA
$
210
$
220
$
210
$
220
Guidance excludes the effects of any future merger or
acquisition activity and is based on the current operating
environment.
Organizational Consolidation and Change in Segments
We operate four reportable business segments: NEMT, Personal
Care, RPM, and Corporate and Other. Effective January 1, 2022, the
Company completed its segment reorganization which resulted in the
addition of a Corporate segment that includes the costs associated
with the Company's corporate operations. The operating results of
our Corporate segment include our activities related to executive,
accounting, finance, internal audit, tax, legal and certain
strategic and corporate development functions for each segment, as
well as the results of our Matrix investment. The Company
reclassified certain costs associated with this reorganization for
the three and nine months ended September 30, 2021 to conform to
this presentation.
Third Quarter Earnings Conference Call
Modivcare will hold a conference call to discuss its financial
results on Thursday, November 3, 2022 at 8:00 a.m. ET. To access
the call, please dial:
US toll-free: 1 (888) 428-7458 International: 1
(862) 298-0702
You may also access the conference call via webcast at
investors.modivcare.com, where the call will also be archived.
About Modivcare
Modivcare Inc. (Nasdaq: MODV) is a technology-enabled healthcare
services company that provides a platform of integrated supportive
care solutions for public and private payors and their patients.
Our value-based solutions address the social determinants of health
(SDoH), enable greater access to care, reduce costs, and improve
outcomes. We are a leading provider of non-emergency medical
transportation (NEMT), personal care and remote patient monitoring.
To learn more about Modivcare, please visit www.modivcare.com.
Non-GAAP Financial Measures and Adjustments
In addition to the financial measures prepared in accordance
with generally accepted accounting principles in the United States
("GAAP"), this press release includes EBITDA, Adjusted EBITDA,
Adjusted EBITDA margin and Adjusted G&A expense for the Company
and its segments, and Adjusted Net Income and Adjusted EPS for the
Company, which are performance measures that are not recognized
under GAAP. EBITDA is defined as net income (loss) before: (1)
interest expense, net, (2) provision (benefit) for income taxes and
(3) depreciation and amortization. Adjusted EBITDA is calculated as
EBITDA before (as applicable): (1) restructuring and related
charges, including severance and organizational consolidation costs
and professional services fees, (2) certain transaction and related
costs, (3) cash settled equity, (4) stock-based compensation, (5)
COVID-19 related costs, net of grant income, and (6) equity in net
(income) loss of investee, net of tax. Adjusted EBITDA margin is
calculated as Adjusted EBITDA, divided by service revenue, net.
Adjusted Net Income is calculated as net income (loss) before: (1)
restructuring and related charges, including severance and
organizational consolidation costs and professional services fees
(2) certain transaction and related costs, (3) cash settled equity,
(4) stock-based compensation, (5) equity in net (income) loss of
investee, net of tax (6) intangible amortization expense, (7)
COVID-19 related costs, net of grant income, (8) transaction
related financing expense, and (9) the income tax impact of such
adjustments. Adjusted EPS is calculated as Adjusted Net Income
divided by the diluted weighted-average number of common shares
outstanding as calculated for Adjusted Net Income. Adjusted G&A
expense is calculated as G&A expense before (as applicable):
(1) restructuring and related charges, (2) transaction costs, (3)
cash settled equity, and (4) stock-based compensation. We do not
provide updated guidance for net income (loss) in this presentation
on a basis consistent with GAAP or a reconciliation of
forward-looking non-GAAP financial measures to their most directly
comparable GAAP financial measures on a forward-looking basis
because we are unable to predict items contained in the GAAP
financial measures without unreasonable efforts. Our non-GAAP
performance measures exclude expenses and amounts that are not
driven by our core operating results and may be one time in nature.
Excluding these expenses makes comparisons with prior periods as
well as to other companies in our industry more meaningful. We
believe such measures allow investors to gain a better
understanding of the factors and trends affecting the ongoing
operations of our business. We consider our core operations to be
the ongoing activities to provide services from which we earn
revenue, including direct operating costs and indirect costs to
support these activities. As a result, our net income or loss in
equity investee is excluded from these measures, as we do not have
the ability to manage the venture, allocate resources within the
venture, or directly control its operations or performance.
Our non-GAAP financial measures may not provide information that
is directly comparable to that provided by other companies in our
industry, as other companies in our industry may calculate non-GAAP
financial measures differently. In addition, there are limitations
in using non-GAAP financial measures because they are not prepared
in accordance with GAAP, may be different from non-GAAP financial
measures used by other companies, and exclude expenses that may
have a material impact on our reported financial results. The
presentation of non-GAAP financial measures is not intended to be
considered in isolation from or as a substitute for the most
directly comparable financial measures prepared in accordance with
GAAP. We urge you to review the reconciliations of our non-GAAP
financial measures to the most directly comparable GAAP financial
measures included below, and not to rely on any single financial
measure to evaluate our business.
Forward-Looking Statements
Certain statements contained in this press release constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
predictive in nature and are frequently identified by the use of
terms such as “may,” “will,” “should,” “expect,” “believe,”
“estimate,” “intend,” and similar words indicating possible future
expectations, events or actions. The updated guidance discussed
herein constitutes forward-looking statements. Such forward-looking
statements are based on current expectations, assumptions,
estimates and projections about our business and our industry, and
are not guarantees of our future performance. These statements are
subject to a number of known and unknown risks, uncertainties and
other factors, many of which are beyond our ability to control or
predict, which may cause actual events to be materially different
from those expressed or implied herein, including but not limited
to: 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; our inability to control reimbursement rates received for
our services; cost containment initiatives undertaken by private
third-party payors; the effects of a public health emergency;
inadequacies in, or security breaches of, our information
technology systems, including the systems intended to protect our
clients’ privacy and confidential information; any changes in the
funding, financial viability or our relationships with our payors;
pandemic infectious diseases, including the COVID-19 pandemic;
disruptions to our contact center operations caused by health
epidemics or pandemics like COVID-19; delays in collection, or
non-collection, of our accounts receivable, particularly during any
business integration; an impairment of our long-lived assets; any
failure to maintain or to develop further reliable, efficient and
secure information technology systems; an inability to attract and
retain qualified employees; any acquisition or acquisition
integration efforts; our contracts not surviving until the end of
their stated terms, or not being renewed or extended; our failure
to compete effectively in the marketplace; our not being awarded
contracts through the government’s requests for proposals process,
or our awarded contracts not being profitable; any failure to
satisfy our contractual obligations or to maintain existing pledged
performance and payment bonds; a failure to estimate accurately the
cost of performing our contracts; any misclassification of the
drivers we engage as independent contractors rather than as
employees; significant interruptions in our communication and data
services; not successfully executing on our strategies in the face
of our competition; any inability to maintain relationships with
existing patient referral sources; any failure to obtain the
consent of the New York Department of Health to manage the day to
day operations of our licensed in-home personal care services
agency business that we acquired with our personal care segment;
acquired unknown liabilities in connection with the acquisition of
our personal care segment; changes in the case-mix of our personal
care patients, or changes in payor mix or payment methodologies;
our loss of existing favorable managed care contracts; our
experiencing shortages in qualified employees and management; labor
disputes or disruptions, in particular in New York; becoming
subject to malpractice or other similar claims; and our reliance on
others for the financial condition of our equity investment in
Matrix.
The Company has provided additional information about the risks
facing our business in our annual report on Form 10-K and
subsequent periodic and current reports most recently filed with
the Securities and Exchange Commission. You are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date the statement was made and are expressly
qualified in their entirety by the cautionary statements set forth
herein and in our filings with the Securities and Exchange
Commission, which you should read in their entirety before making
an investment decision with respect to our securities. We undertake
no obligation to update or revise any forward-looking statements
contained in this release, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
Modivcare Inc.
Unaudited Condensed
Consolidated Statements of Operations
(in thousands, except share and
per share data)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Service revenue, net
$
647,782
$
493,059
$
1,850,472
$
1,421,117
Grant income
789
—
4,587
3,500
Operating expenses:
Service expense
534,563
399,272
1,498,108
1,139,170
General and administrative expense
75,889
68,205
232,108
179,595
Depreciation and amortization
25,672
12,608
74,376
36,667
Total operating expenses
636,124
480,085
1,804,592
1,355,432
Operating income
12,447
12,974
50,467
69,185
Other expenses:
Interest expense, net
15,557
17,702
46,429
34,412
Income (loss) before income taxes and
equity method investment
(3,110
)
(4,728
)
4,038
34,773
Provision (benefit) for income taxes
(1,053
)
(2,001
)
877
8,409
Equity in net loss of investee, net of
tax
26,448
4,845
28,020
1,424
Net income (loss)
$
(28,505
)
$
(7,572
)
$
(24,859
)
$
24,940
Earnings (loss) per common share:
Basic
$
(2.03
)
$
(0.54
)
$
(1.77
)
$
1.77
Diluted
$
(2.03
)
$
(0.54
)
$
(1.77
)
$
1.75
Weighted-average number of common shares
outstanding:
Basic
14,051,794
13,993,438
14,041,224
14,102,371
Diluted
14,051,794
13,993,438
14,041,224
14,278,331
Modivcare Inc.
Unaudited Condensed
Consolidated Balance Sheets
(in thousands)
September 30, 2022
December 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
72,703
$
133,139
Accounts receivable, net
266,177
233,121
Other current assets (1)
42,826
43,574
Total current assets
381,706
409,834
Property and equipment, net
67,413
53,549
Goodwill and intangible assets, net
1,428,210
1,415,000
Equity investment
43,477
83,069
Operating lease right-of-use assets
38,368
43,750
Other long-term assets
30,671
22,223
Total assets
$
1,989,845
$
2,027,425
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
44,242
$
8,690
Accrued contract payables
243,800
281,586
Accrued expenses and other current
liabilities
145,217
123,791
Accrued transportation costs
90,114
103,294
Current portion of operating lease
liabilities
10,134
9,873
Total current liabilities
533,507
527,234
Long-term debt, net of deferred financing
costs
978,301
975,225
Operating lease liabilities, less current
portion
30,595
34,524
Other long-term liabilities (2)
93,294
117,175
Total liabilities
1,635,697
1,654,158
Stockholders' equity
Stockholders' equity
354,148
373,267
Total liabilities and stockholders'
equity
$
1,989,845
$
2,027,425
(1)
Includes other receivables, prepaid
expenses and other current assets and short-term restricted
cash.
(2)
Includes other long-term liabilities and
deferred tax liabilities.
Modivcare Inc.
Unaudited Condensed
Consolidated Statements of Cash Flows
(in thousands)
Nine months ended September
30,
2022
2021
Operating activities
Net income (loss)
$
(24,859
)
$
24,940
Depreciation and amortization
74,376
36,667
Stock-based compensation
5,152
4,225
Equity in net loss of investee
38,883
1,978
Deferred income taxes
(31,232
)
(3,295
)
Reduction of right-of-use asset
8,680
8,681
Other non-cash items (1)
1,208
463
Changes in working capital (2)
(26,682
)
101,035
Net cash provided by operating
activities
45,526
174,694
Investing activities
Purchase of property and equipment
(25,518
)
(13,852
)
Acquisition, net of cash acquired
(78,872
)
(667,228
)
Net cash used in investing activities
(104,390
)
(681,080
)
Financing activities
Proceeds from debt
100,000
625,000
Repayment of debt
(100,000
)
(125,000
)
Debt issuance costs
(2,415
)
(13,486
)
Repurchase of common stock, for
treasury
—
(39,040
)
Proceeds from common stock issued pursuant
to stock option exercise
1,237
3,099
Restricted stock surrendered for employee
tax payment
(649
)
(851
)
Net cash provided by (used in) financing
activities
(1,827
)
449,722
Net change in cash, cash equivalents and
restricted cash
(60,691
)
(56,664
)
Cash, cash equivalents and restricted cash
at beginning of period
133,422
183,356
Cash, cash equivalents and restricted cash
at end of period
$
72,731
$
126,692
(1)
Includes provision for doubtful accounts
and amortization of deferred financing costs and debt discount.
(2)
Includes accounts receivable and other
receivables, prepaid expenses and other current assets, accrued
contract payables, accounts payable and accrued expenses, accrued
transportation costs and other long-term liabilities.
Modivcare Inc.
Unaudited Reconciliation of
Non-GAAP Financial Measures
Segment Information and
Adjusted EBITDA
(in thousands)
Three months ended September
30, 2022
NEMT
Personal Care
RPM
Corporate (3)
Total
Service revenue, net
$
459,796
$
169,226
$
18,760
$
—
$
647,782
Grant income
—
789
—
—
789
Operating expenses:
Service expense
394,981
132,746
6,836
—
534,563
General and administrative expense
31,815
22,057
5,816
16,201
75,889
Depreciation and amortization
7,079
12,919
5,467
207
25,672
Total operating expenses
433,875
167,722
18,119
16,408
636,124
Operating income (loss)
25,921
2,293
641
(16,408
)
12,447
Other expenses:
Interest expense, net
—
—
—
15,557
15,557
Income (loss) before income taxes and
equity method investment
25,921
2,293
641
(31,965
)
(3,110
)
Provision (benefit) for income taxes
6,978
661
179
(8,871
)
(1,053
)
Equity in net loss (income) of investee,
net of tax
(208
)
—
—
26,656
26,448
Net income (loss)
19,151
1,632
462
(49,750
)
(28,505
)
Interest expense, net
—
—
—
15,557
15,557
Provision (benefit) for income taxes
6,978
661
179
(8,871
)
(1,053
)
Depreciation and amortization
7,079
12,919
5,467
207
25,672
EBITDA
33,208
15,212
6,108
(42,857
)
11,671
Restructuring and related charges (1)
902
582
39
565
2,088
Transaction costs (2)
5,506
2,231
471
2,691
10,899
Cash settled equity
—
—
—
82
82
Stock-based compensation
—
—
—
1
1
COVID-19 related costs, net of grant
income
(51
)
659
—
—
608
Equity in net loss (income) of investee,
net of tax
(208
)
—
—
26,656
26,448
Adjusted EBITDA
$
39,357
$
18,684
$
6,618
$
(12,862
)
$
51,797
(1)
Restructuring and related charges include
severance, organizational consolidation costs and professional
fees.
(2)
Transaction costs include integration
efforts at recently acquired subsidiaries related to Sarbanes-Oxley
Act of 2002 ("SOX") compliance and acquisition costs.
(3)
Effective January 1, 2022, the Company
completed its segment reorganization which resulted in the addition
of a Corporate segment that includes the costs associated with the
Company's corporate operations. Through this reorganization, it was
also determined that the Matrix Investment is no longer a
reportable segment, and is now reported within the Corporate
segment. Prior period segment amounts have been reclassified to
conform to the current presentation.
Modivcare Inc.
Unaudited Reconciliation of
Non-GAAP Financial Measures
Segment Information and
Adjusted EBITDA
(in thousands)
Three months ended September
30, 2021
NEMT
Personal Care
RPM
Corporate (3)
Total
Service revenue, net
$
372,992
$
118,503
$
1,564
$
—
$
493,059
Grant income
—
—
—
—
—
Operating expenses:
Service expense
304,398
94,107
767
—
399,272
General and administrative expense
29,875
15,802
216
22,312
68,205
Depreciation and amortization
7,496
4,912
200
—
12,608
Total operating expenses
341,769
114,821
1,183
22,312
480,085
Operating income (loss)
31,223
3,682
381
(22,312
)
12,974
Interest expense, net
—
—
—
17,702
17,702
Income (loss) before income taxes and
equity method investment
31,223
3,682
381
(40,014
)
(4,728
)
Provision (benefit) for income taxes
6,956
838
106
(9,901
)
(2,001
)
Equity in net loss of investee, net of
tax
—
—
—
4,845
4,845
Net income (loss)
24,267
2,844
275
(34,958
)
(7,572
)
Interest expense, net
—
—
—
17,702
17,702
Provision (benefit) for income taxes
6,956
838
106
(9,901
)
(2,001
)
Depreciation and amortization
7,496
4,912
200
—
12,608
EBITDA
38,719
8,594
581
(27,157
)
20,737
Restructuring and related charges (1)
2,521
—
—
717
3,238
Transaction costs (2)
376
1,177
—
9,739
11,292
Cash settled equity
—
—
—
2,600
2,600
Stock-based compensation
—
—
—
1,218
1,218
COVID-19 related costs, net of grant
income
165
229
—
—
394
Equity in net loss of investee, net of
tax
—
—
—
4,845
4,845
Adjusted EBITDA
$
41,781
$
10,000
$
581
$
(8,038
)
$
44,324
(1)
Restructuring and related charges include
severance, organizational consolidation costs and professional
fees.
(2)
Transaction costs include Circulation MIP
costs and certain transaction-related expenses.
(3)
Effective January 1, 2022, the Company
completed its segment reorganization which resulted in the addition
of a Corporate segment that includes the costs associated with the
Company's corporate operations. Through this reorganization, it was
also determined that the Matrix Investment is no longer a
reportable segment, and is now reported within the Corporate
segment. Prior period segment amounts have been reclassified to
conform to the current presentation.
Modivcare Inc.
Unaudited Reconciliation of
Non-GAAP Financial Measures
Segment Information and
Adjusted EBITDA
(in thousands)
Nine months ended September
30, 2022
NEMT
Personal Care
RPM
Corporate (3)
Total
Service revenue, net
$
1,309,449
$
491,661
$
49,362
$
—
$
1,850,472
Grant income
—
4,587
—
—
4,587
Operating expenses:
Service expense
1,100,801
379,423
17,884
—
1,498,108
General and administrative expense
102,736
68,536
17,520
43,316
232,108
Depreciation and amortization
21,576
37,976
14,201
623
74,376
Total operating expenses
1,225,113
485,935
49,605
43,939
1,804,592
Operating income (loss)
84,336
10,313
(243
)
(43,939
)
50,467
Interest expense, net
—
—
—
46,429
46,429
Income (loss) before income taxes and
equity method investment
84,336
10,313
(243
)
(90,368
)
4,038
Provision (benefit) for income taxes
23,116
2,902
(68
)
(25,073
)
877
Equity in net loss (income) of investee,
net of tax
(143
)
—
—
28,163
28,020
Net income (loss)
61,363
7,411
(175
)
(93,458
)
(24,859
)
Interest expense, net
—
—
—
46,429
46,429
Provision (benefit) for income taxes
23,116
2,902
(68
)
(25,073
)
877
Depreciation and amortization
21,576
37,976
14,201
623
74,376
EBITDA
106,055
48,289
13,958
(71,479
)
96,823
Restructuring and related charges (1)
11,359
763
63
950
13,135
Transaction costs (2)
5,506
6,334
2,753
7,719
22,312
Cash settled equity
—
—
—
89
89
Stock-based compensation
—
190
86
3,861
4,137
COVID-19 related costs, net of grant
income
105
(2,370
)
—
—
(2,265
)
Equity in net loss (income) of investee,
net of tax
(143
)
—
—
28,163
28,020
Adjusted EBITDA
$
122,882
$
53,206
$
16,860
$
(30,697
)
$
162,251
(1)
Restructuring and related charges include
severance, organizational consolidation costs and professional
fees.
(2)
Transaction costs include SOX integration
efforts at recently acquired subsidiaries and acquisition
costs.
(3)
Effective January 1, 2022, the Company
completed its segment reorganization which resulted in the addition
of a Corporate segment that includes the costs associated with the
Company's corporate operations. Through this reorganization, it was
also determined that the Matrix Investment is no longer a
reportable segment, and is now reported within the Corporate
segment. Prior period segment amounts have been reclassified to
conform to the current presentation.
Modivcare Inc.
Unaudited Reconciliation of
Non-GAAP Financial Measures
Segment Information and
Adjusted EBITDA
(in thousands)
Nine months ended September
30, 2021
NEMT
Personal Care
RPM
Corporate (3)
Total
Service revenue, net
$
1,081,168
$
338,385
$
1,564
$
—
$
1,421,117
Grant income
—
3,500
—
—
3,500
Operating expenses:
Service expense
869,470
268,933
767
—
1,139,170
General and administrative expense
85,961
45,606
216
47,812
179,595
Depreciation and amortization
21,744
14,723
200
—
36,667
Total operating expenses
977,175
329,262
1,183
47,812
1,355,432
Operating income (loss)
103,993
12,623
381
(47,812
)
69,185
Interest expense, net
—
—
—
34,412
34,412
Income (loss) before income taxes and
equity method investment
103,993
12,623
381
(82,224
)
34,773
Provision (benefit) for income taxes
26,379
3,194
106
(21,270
)
8,409
Equity in net loss of investee, net of
tax
—
—
—
1,424
1,424
Net income (loss)
77,614
9,429
275
(62,378
)
24,940
Interest expense, net
—
—
—
34,412
34,412
Provision (benefit) for income taxes
26,379
3,194
106
(21,270
)
8,409
Depreciation and amortization
21,744
14,723
200
—
36,667
EBITDA
125,737
27,346
581
(49,236
)
104,428
Restructuring and related charges (1)
10,059
—
—
1,480
11,539
Transaction costs (2)
586
3,467
—
14,383
18,436
Cash settled equity
—
—
—
9,145
9,145
Stock-based compensation
—
76
—
3,707
3,783
COVID-19 related costs, net of grant
income
618
(1,871
)
—
—
(1,253
)
Equity in net loss of investee, net of
tax
—
—
—
1,424
1,424
Adjusted EBITDA
$
137,000
$
29,018
$
581
$
(19,097
)
$
147,502
(1)
Restructuring and related charges include
severance, organizational consolidation costs and professional
fees.
(2)
Transaction costs include Circulation
management incentive plan ("MIP") costs and certain
transaction-related expenses.
(3)
Effective January 1, 2022, the Company
completed its segment reorganization which resulted in the addition
of a Corporate segment that includes the costs associated with the
Company's corporate operations. Through this reorganization, it was
also determined that the Matrix Investment is no longer a
reportable segment, and is now reported within the Corporate
segment. Prior period segment amounts have been reclassified to
conform to the current presentation.
Modivcare Inc.
Unaudited Reconciliation of
Non-GAAP Financial Measures
Adjusted Net Income and
Adjusted Net Income per Common Share
(in thousands, except share and
per share data)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net income (loss)
$
(28,505
)
$
(7,572
)
$
(24,859
)
$
24,940
Restructuring and related charges(1)
2,088
3,238
13,135
11,539
Transaction costs(2)
10,899
11,292
22,312
18,436
Cash settled equity
82
2,600
89
9,145
Stock-based compensation
1
1,218
4,137
3,783
Equity in net loss of investee, net of
tax
26,448
4,845
28,020
1,424
Intangible amortization expense
20,727
9,177
59,978
27,827
Transaction related financing expense
—
6,630
—
6,630
COVID-19 related costs, net of grant
income
608
394
(2,265
)
(1,253
)
Tax effected impact of adjustments
(9,649
)
(8,763
)
(26,964
)
(20,034
)
Adjusted Net Income
$
22,699
$
23,059
$
73,583
$
82,437
Adjusted EPS
$
1.61
$
1.63
$
5.21
$
5.77
Diluted weighted-average number of common
shares outstanding
14,110,928
14,161,806
14,119,598
14,278,331
(1)
Restructuring and related charges include
severance, organizational consolidation costs and professional
fees.
(2)
Transaction costs include certain
transaction-related expenses and SOX integration efforts.
Modivcare Inc.
Unaudited Key Statistical and
Financial Data
(in thousands, except for
statistical data)
Three months ended
Nine months ended
Three months ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
% Change
June 30, 2022
QoQ % Change
NEMT Segment
Service revenue, net
$
459,796
$
372,992
23.3
%
$
1,309,449
$
1,081,168
21.1
%
$
448,733
2.5
%
Purchased services expense
340,138
256,750
32.5
%
935,298
725,059
29.0
%
317,213
7.2
%
Payroll and other expense
54,843
47,648
15.1
%
165,503
144,411
14.6
%
56,511
(3.0
)%
Service expense
$
394,981
$
304,398
29.8
%
$
1,100,801
$
869,470
26.6
%
$
373,724
5.7
%
Gross profit
$
64,815
$
68,594
(5.5
)%
$
208,648
$
211,698
(1.4
)%
$
75,009
(13.6
)%
Gross margin
14.1
%
18.4
%
15.9
%
19.6
%
16.7
%
G&A expense
$
31,815
$
29,875
6.5
%
$
102,736
$
85,961
19.5
%
$
33,588
(5.3
)%
G&A expense adjustments:
Restructuring and related charges
902
2,521
(64.2
)%
11,359
10,059
12.9
%
4,852
(81.4
)%
Transaction costs
5,506
376
1364.4
%
5,506
586
—
%
—
—
%
Adjusted G&A expense
$
25,407
$
26,978
(5.8
)%
$
85,871
$
75,316
14.0
%
$
28,736
(11.6
)%
Adjusted G&A expense % of revenue
5.5
%
7.2
%
6.6
%
7.0
%
6.4
%
Net income
$
19,151
$
24,267
(21.1
)%
$
61,363
$
77,614
(20.9
)%
$
24,466
(21.7
)%
Net income margin
4.2
%
6.5
%
4.7
%
7.2
%
5.5
%
Adjusted EBITDA
$
39,357
$
41,781
(5.8
)%
$
122,882
$
137,000
(10.3
)%
$
46,307
(15.0
)%
Adjusted EBITDA margin
8.6
%
11.2
%
9.4
%
12.7
%
10.3
%
Total paid trips (in thousands)
8,045
6,928
16.1
%
22,987
20,204
13.8
%
7,831
2.7
%
Average monthly members (in thousands)
36,026
29,387
22.6
%
33,998
29,863
13.8
%
33,792
6.6
%
Revenue per member per month
$
4.25
$
4.23
0.5
%
$
4.28
$
4.02
6.5
%
$
4.43
(4.1
)%
Revenue per trip
$
57.15
$
53.84
6.1
%
$
56.96
$
53.51
6.4
%
$
57.30
(0.3
)%
Monthly utilization
7.4
%
7.9
%
7.5
%
7.5
%
7.7
%
Purchased services per trip
$
42.28
$
37.06
14.1
%
$
40.69
$
35.89
13.4
%
$
40.51
4.4
%
Payroll and other per trip
$
6.82
$
6.88
(0.9
)%
$
7.20
$
7.15
0.7
%
$
7.22
(5.5
)%
Total service expense per trip
$
49.10
$
43.94
11.7
%
$
47.89
$
43.04
11.3
%
$
47.73
2.9
%
Modivcare Inc.
Unaudited Key Statistical and
Financial Data
(in thousands, except for
statistical data)
Three months ended
Nine months ended
Three months ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
% Change
June 30, 2022
QoQ % Change
Personal Care Segment
Service revenue, net
$
169,226
$
118,503
42.8
%
$
491,661
$
338,385
45.3
%
$
162,737
4.0
%
Service expense
132,746
94,107
41.1
%
379,423
268,933
41.1
%
124,445
6.7
%
Gross profit
$
36,480
$
24,396
49.5
%
$
112,238
$
69,452
61.6
%
$
38,292
(4.7
)%
Gross Margin
21.6
%
20.6
%
22.8
%
20.5
%
23.5
%
G&A expense
$
22,057
$
15,802
39.6
%
$
68,536
$
45,606
50.3
%
$
23,346
(5.5
)%
G&A expense adjustments
Restructuring and related charges
582
—
—
%
763
—
—
%
—
—
%
Transaction costs
2,231
1,177
89.5
%
6,334
3,467
82.7
%
2,830
(21.2
)%
Stock-based compensation
—
—
—
%
190
76
150.0
%
173
(100.0
)%
Adjusted G&A expense
$
19,244
$
14,625
31.6
%
$
61,249
$
42,063
45.6
%
$
20,343
(5.4
)%
Adjusted G&A expense % of revenue
11.4
%
12.3
%
12.5
%
12.4
%
12.5
%
Net income
$
1,632
$
2,844
(42.6
)%
$
7,411
$
9,429
(21.4
)%
$
4,123
(60.4
)%
Net income margin
1.0
%
2.4
%
1.5
%
2.8
%
2.5
%
Adjusted EBITDA
$
18,684
$
10,000
86.8
%
$
53,206
$
29,018
83.4
%
$
17,901
4.4
%
Adjusted EBITDA margin
11.0
%
8.4
%
10.8
%
8.6
%
11.0
%
Total hours (in thousands)
6,836
5,075
34.7
%
20,076
14,331
40.1
%
6,705
2.0
%
Revenue per hour
$
24.76
$
23.35
6.0
%
$
24.49
$
23.61
3.7
%
$
24.27
2.0
%
Service expense per hour
$
19.42
$
18.54
4.7
%
$
18.90
$
18.77
0.7
%
$
18.56
4.6
%
Modivcare Inc.
Unaudited Key Statistical and
Financial Data
(in thousands, except for
statistical data)
Three months ended
Nine months ended
Three months ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
% Change
June 30, 2022
QoQ % Change
RPM Segment
Service revenue, net
$
18,760
$
1,564
N/M
$
49,362
$
1,564
N/M
$
16,745
12.0
%
Service expense
6,836
767
N/M
17,884
767
N/M
6,061
12.8
%
Gross profit
$
11,924
$
797
N/M
$
31,478
$
797
N/M
$
10,684
11.6
%
Gross Margin
63.6
%
51.0
%
63.8
%
51.0
%
63.8
%
G&A expense
$
5,816
$
216
N/M
$
17,520
$
216
N/M
$
6,742
(13.7
)%
G&A expense adjustments
Restructuring and related charges
39
—
N/M
63
—
N/M
—
—
%
Transaction costs
471
—
N/M
2,753
—
N/M
1,635
(71.2
)%
Stock-based compensation
—
—
N/M
86
—
N/M
57
(100.0
)%
Adjusted G&A expense
$
5,306
$
216
N/M
$
14,618
$
216
N/M
$
5,050
5.1
%
Adjusted G&A expense % of revenue
28.3
%
13.8
%
29.6
%
13.8
%
30.2
%
Net income (loss)
$
462
$
275
N/M
$
(175
)
$
275
N/M
$
(475
)
(197.3
)%
Net income (loss) margin
2.5
%
17.6
%
(0.4
)%
17.6
%
(2.8
)%
Adjusted EBITDA
$
6,618
$
581
N/M
$
16,860
$
581
N/M
$
5,634
17.5
%
Adjusted EBITDA margin
35.3
%
37.1
%
34.2
%
37.1
%
33.6
%
Average monthly members (in thousands)
230
N/M
N/M
201
N/M
N/M
203
13.3
%
Revenue per member per month
$
27.19
N/M
N/M
$
27.29
N/M
N/M
$
27.50
(1.1
)%
Service expense per member per month
$
9.91
N/M
N/M
$
9.89
N/M
N/M
$
9.95
(0.4
)%
N/M - Not Meaningful. The RPM Segment was
established with the acquisition of VRI on September 22, 2021 and
as such, these figures are not meaningful for comparative
purposes.
Modivcare Inc.
Unaudited Key Statistical and
Financial Data
(in thousands)
Three months ended
Nine months ended
Three months ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
% Change
June 30, 2022
QoQ % Change
Corporate and Other Segment
G&A expense
$
16,201
$
22,312
(27.4
)%
$
43,316
$
47,812
(9.4
)%
$
15,735
3.0
%
G&A expense adjustments
Restructuring and related charges
565
717
(21.2
)%
950
1,480
(35.8
)%
354
59.6
%
Transaction costs
2,691
9,739
(72.4
)%
7,719
14,383
(46.3
)%
3,237
(16.9
)%
Cash settled equity
82
2,600
(96.8
)%
89
9,145
(99.0
)%
20
310.0
%
Stock-based compensation
1
1,218
(99.9
)%
3,861
3,707
4.2
%
2,440
(100.0
)%
Adjusted G&A expense
$
12,862
$
8,038
60.0
%
$
30,697
$
19,097
60.7
%
$
9,684
32.8
%
Adjusted G&A expense % of consolidated
revenue
2.0
%
1.6
%
1.7
%
1.3
%
1.5
%
Three months ended
Nine months ended
Three months ended
September 30, 2022
September 30, 2021
% Change
September 30, 2022
September 30, 2021
% Change
June 30, 2022
QoQ % Change
Consolidated Modivcare
G&A expense
$
75,889
$
68,205
11.3
%
$
232,108
$
179,595
29.2
%
$
79,411
(4.4
)%
G&A expense adjustments
Restructuring and related charges
2,088
3,238
(35.5
)%
13,135
11,539
13.8
%
5,206
(59.9
)%
Transaction costs
10,899
11,292
(3.5
)%
22,312
18,436
21.0
%
7,702
41.5
%
Cash settled equity
82
2,600
(96.8
)%
89
9,145
(99.0
)%
20
310.0
%
Stock-based compensation
1
1,218
(99.9
)%
4,137
3,783
9.4
%
2,670
(100.0
)%
Adjusted G&A expense
$
62,819
$
49,857
26.0
%
$
192,435
$
136,692
40.8
%
$
63,813
(1.6
)%
Adjusted G&A expense % of revenue
9.7
%
10.1
%
10.4
%
9.6
%
10.2
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221103005255/en/
Investor Relations Contact Kevin Ellich, Head of Investor
Relations (303) 728-7012 Kevin.Ellich@modivcare.com
ModivCare (NASDAQ:MODV)
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ModivCare (NASDAQ:MODV)
과거 데이터 주식 차트
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