ATLANTA, Jan. 30, 2025 (GLOBE NEWSWIRE) -- A securities class action lawsuit has been filed against ModivCare Inc. (“ModivCare” or the “Company”) (NASDAQ: MODV). The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose adverse facts about the Company’s business, operations, and prospects, including “that certain contracts used in ModivCare’s NEMT segment caused the Company’s free cash flow to deteriorate and that, as a ...

SAN DIEGO, Jan. 30, 2025 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that the ModivCare class action lawsuit – captioned Kalera v. ModivCare, Inc., No. 25-cv-00306 (D. Colo.) – charges ModivCare, Inc. (NASDAQ: MODV) and certain of ModivCare's top executives with violations of the Securities Exchange Act of 1934.If you suffered substantial losses and wish to serve as lead plaintiff of the ModivCare class action lawsuit, please provide your information here:https://www.rgrdlaw.c ...

MODV ALERT- Levi & Korsinsky Has Commenced an Investigation on Behalf of ModivCare Inc. Shareholders Who Lost Money ...

Levi & Korsinsky Reminds ModivCare Inc. Investors of the Ongoing Investigation into Potential Violations of Securities Laws - MODV ...

ModivCare Inc. (MODV) Investors with Losses are Urged to Contact Levi & Korsinsky to Discuss Their Rights ...

Exhibit 10.1 AMENDMENT NO. 5 Dated as of January 9, 2025 to CREDIT AGREEMENT Dated as of February 3, 2022 THIS AMENDMENT NO. 5 (this "Amendment") is made as of January 9, 2025, by and among ModivCare Inc., a corporation organized under the laws of the State of Delaware (the "Borrower"), the financial institutions listed on the signature pages hereof and JPMorgan ChaseBank, N.A., as administrative agent (the "Administrative Agent"), under that certain Credit Agreement, dated as of February 3, 2022, by and am ...

Financial Data and Key Metrics - Q3 2024 revenue increased 2% YoY to $702 million, driven by 5% growth in Personal Care Services (PCS) and 1% growth in Non-Emergency Medical Transportation (NEMT) [32] - Adjusted EBITDA for Q3 2024 was $43 million, or 6.2% of revenue, driven by solid performance in RPM and PCS segments, as well as operational improvements and cost savings in NEMT [33] - Net loss for Q3 2024 was approximately $27 million, while adjusted net income was $6 million, or $0.45 per diluted share [32] - Free cash flow for Q3 2024 was $1.5 million, consisting of $9.3 million in operating cash flow and $7.7 million in capital expenditures [41] Business Line Data and Key Metrics NEMT Segment - NEMT revenue increased 1% YoY to $492 million, with average monthly membership up 1% sequentially to 30 million [34] - NEMT adjusted EBITDA was $31 million, with a margin of 6.2%, down 99 basis points sequentially due to higher utilization, trip mix, and higher G&A expenses [36] - NEMT gross margin decreased 150 basis points sequentially to 11.3%, primarily due to growth in trips and trip mix, partially offset by cost-saving initiatives [35] - NEMT unit costs decreased, with purchased services expense per trip down 1% QoQ to $3.75 and payroll and other expenses per trip down 9% sequentially to $5.60 [35] Personal Care Services (PCS) Segment - PCS revenue increased 5% YoY to $189 million, driven by 3% growth in hours and 2% growth in revenue per hour [37] - PCS adjusted EBITDA was $16 million, or 8.3% of revenue, showing modest improvement from Q2 due to lower G&A expenses and slightly lower service expense per hour [38] - Reimbursement rate increases in New York, New Jersey, and West Virginia contributed to PCS growth [37] Remote Patient Monitoring (RPM) Segment - RPM revenue decreased 2% YoY but increased 2% sequentially to $19 million, with adjusted EBITDA margin at 37% [39] - RPM margins are expected to remain in the mid-30% range despite headwinds from Medicare Advantage (MA) supplemental benefit changes [40] Market Data and Key Metrics - Medicaid redeterminations impacted NEMT membership by approximately 220,000 members and adjusted EBITDA by less than $1 million in Q3 2024 [36] - Medicare Advantage (MA) accounts for 15% of NEMT revenue and 25% of RPM revenue, with anticipated contraction in MA business in 2025 [17] - The company expects a shift in MA mix to "winners" from "losers" due to market changes, with a focus on developing MA products in response to these shifts [17] Company Strategy and Industry Competition - The company is transitioning shared-risk NEMT contracts to fee-for-service arrangements, which will improve cash flow and reduce receivables build [11][12] - The company is focusing on cost-saving initiatives, including automation and technology optimization, which have driven $3 million in net cost savings in Q3 2024 [19] - The company is working to deleverage its balance sheet, with discussions ongoing with the bank group for long-term covenant relief [31][44] - The company is evaluating the potential sale of assets, including Matrix, to optimize value and reduce debt [60][61] Management Commentary on Operating Environment and Future Outlook - Management expects 2025 adjusted EBITDA to increase by approximately 10%, driven by membership growth, new contract wins, and cost-saving initiatives [15] - The company anticipates continued headwinds in the MA market but expects growth in Medicaid and other segments to offset these challenges [90] - Management highlighted the importance of the company's multimodal network strategy in reducing NEMT unit costs and improving operational efficiency [21] Other Important Information - The company collected $105 million in gross contract receivables in Q3 2024, including $42 million from retrospective prepayment resets and $39 million from early settlements [43] - The company ended Q3 2024 with $48 million in cash and $1.2 billion in debt, with a net leverage ratio of 5.6x [45] - The company maintained its 2024 revenue guidance of $2.7 billion to $2.9 billion and adjusted EBITDA guidance of $170 million to $180 million [46] Q&A Session Summary Question: Fee-for-service shift in NEMT contracts - The shift to fee-for-service is driven by the need for faster cash flow and cost of capital considerations, with state Medicaid contracts likely to remain full-risk [53] - The company expects margin compression in shared-risk contracts but believes the cost savings and operational efficiencies will offset this [54][55] Question: Cash flow and receivables outlook - The company expects to normalize working capital and free cash flow by mid-2025 as shared-risk contracts roll off and fee-for-service contracts take effect [57][58] - The company collected $105 million in gross contract receivables in Q3 2024 and expects to settle or repay $47 million in contract payables by mid-2025 [43][57] Question: Potential asset sales and deleveraging - The company is evaluating the sale of assets, including Matrix, as part of its strategy to deleverage the balance sheet [60][61] - The timing of asset sales will depend on market conditions and the company's ability to achieve the right valuation [62] Question: NEMT cost structure and margin outlook - The company has made significant progress in reducing NEMT unit costs through automation and multimodal strategies, with further cost savings expected in 2025 [82][83] - The company expects NEMT margins to improve as it transitions to fee-for-service contracts and continues to optimize its cost structure [84] Question: RPM headwinds and PCS margin outlook - RPM growth is expected to be impacted by MA headwinds, but Medicaid LTSS growth is expected to offset these challenges [90] - PCS margins are expected to improve, with a target exit rate of around 10% by the end of 2024 [87] Question: CDPAP revenue and EBITDA impact - The potential loss of CDPAP revenue would have an EBITDA impact of $3 million to $5 million, but the company expects to continue participating in the New York market [93][94] Question: Fee-for-service revenue mix in NEMT - The company expects approximately 60% of NEMT revenue to transition to fee-for-service by the end of 2025, with the remaining 40% in full-risk state contracts [97] Question: Cash flow conversion and deleveraging - The company expects a 30% cash flow conversion rate post-mid-2025, with potential for improvement to 50% as the company deleverages [110][111] Question: Pennsylvania rate study and Matrix monetization - The company is optimistic about a potential rate increase in Pennsylvania but cannot predict the timing [112] - The timing for Matrix monetization has been pushed out due to MA headwinds [113]

ModivCare (MODV) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -23.73%. A quarter ago, it was expected that this provider of government-sponsored social services would post earnings of $0.81 per share when it actually produced a loss of $0.03, delivering a surprise of -103.70%.Over ...

Core Insights - ModivCare reported a quarterly loss of $0.03 per share, significantly missing the Zacks Consensus Estimate of $0.81, and a stark decline from earnings of $1.47 per share a year ago, resulting in an earnings surprise of -103.70% [1] - The company posted revenues of $698.3 million for the quarter ended June 2024, which was 0.81% below the Zacks Consensus Estimate and a decrease from $701.74 million in the same quarter last year [2] - ModivCare shares have declined approximately 54.6% year-to-date, contrasting with the S&P 500's gain of 9.9% [3] Earnings Outlook - The future performance of ModivCare's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is $1.30 on revenues of $722.54 million, and for the current fiscal year, it is $3.95 on revenues of $2.84 billion [7] Industry Context - The Medical Services industry, to which ModivCare belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact ModivCare's stock performance [5][6]

Financial Performance - Service revenue for Q2 2024 was $698.3 million, consistent with Q2 2023 revenue of $699.1 million[2][4] - Net loss for Q2 2024 was $128.9 million, or negative $9.07 per diluted common share, compared to a net loss of $190.9 million, or negative $13.47 per diluted common share in Q2 2023[5] - Adjusted EBITDA for Q2 2024 was $45.4 million, or 6.5% of revenue, down from $52.4 million, or 7.5% of revenue in Q2 2023[6] - The company reported an operating loss of $98.9 million for Q2 2024, an improvement from an operating loss of $175.8 million in Q2 2023[17] - Modivcare Inc. reported a net loss of $128.884 million for the three months ended June 30, 2024, compared to a net loss of $190.944 million for the same period in 2023, representing a 32.6% improvement[20] - Adjusted EBITDA for the three months ended June 30, 2024, was $35.302 million, up from $15.262 million in the same period of 2023, indicating a significant increase of 131.5%[21] - Net loss for the three months ended June 30, 2024, was $128,884,000, compared to a net loss of $190,944,000 for the same period in 2023, showing an improvement of approximately 32.6%[27] Cash Flow and Operating Activities - Cash used in operating activities during Q2 2024 was $55.3 million, an improvement from $108.2 million in Q2 2023[7] - The company experienced a decrease in net cash used in operating activities, which was $55.286 million for the three months ended June 30, 2024, compared to $108.219 million in the same period of 2023, a reduction of 48.9%[20] - Cash and cash equivalents increased significantly to $10.5 million as of June 30, 2024, up from $2.2 million at the end of 2023[19] - Cash, cash equivalents, and restricted cash at the end of the period increased to $11.082 million from $7.466 million at the end of the same period in 2023, reflecting a 48.0% increase[20] Revenue Segments - The NEMT segment revenue decreased by $6.3 million, or 1.3%, while the PCS segment revenue grew by $6.3 million, or 3.5%[4] - Total service revenue for the three months ended June 30, 2024, was $698.299 million, with NEMT contributing $490.677 million and PCS contributing $186.610 million[21] - Service revenue for the NEMT segment was $490,677, a decrease of 1.3% compared to $496,975 in the same period last year[29] - Modivcare Inc. reported net service revenue of $186,610,000 for Q2 2024, a 3.5% increase from $180,325,000 in Q2 2023[30] Expenses and Cost Management - Total operating expenses decreased to $797.2 million in Q2 2024 from $877.5 million in Q2 2023, representing a reduction of approximately 9.1%[17] - The company’s total operating expenses for the three months ended June 30, 2024, were $797.219 million, compared to $877.504 million for the same period in 2023, a decrease of 9.1%[21] - General and administrative (G&A) expenses rose by 16.2% to $23,897,000 in Q2 2024 compared to $20,565,000 in Q2 2023[30] - The company reported a total G&A expense of $153,242,000 for the six months ended June 30, 2024, down from $158,953,000 for the same period in 2023, reflecting a decrease of 3.6%[33] - The company experienced a significant reduction in restructuring and related costs, which decreased by 21.1% to $7,981,000 for the three months ended June 30, 2024, from $10,110,000 in the same period last year[33] Goodwill and Impairment - A goodwill impairment of $105.3 million was recognized in the RPM segment during Q2 2024[8] - Modivcare Inc. reported an impairment of goodwill of $105.302 million for the three months ended June 30, 2024, consistent with the same amount reported in the previous year[20] - The company incurred impairment of goodwill amounting to $105,302,000 for the six months ended June 30, 2024, down from $183,100,000 for the same period in 2023[27] Debt and Financing - The company successfully refinanced its 2025 senior unsecured notes with a new Term Loan B, improving its capital structure[2] - Long-term debt remained relatively stable at $986.1 million compared to $983.8 million at the end of 2023[19] Membership and Utilization - Average monthly members decreased to 29,703 thousand, down 13.4% from 34,312 thousand in the same period last year[29] - Average monthly members increased by 2.5% to 246,000 in Q2 2024 compared to 240,000 in Q2 2023[31] - Monthly utilization remained stable at 10.1%, consistent with the previous quarter[29] Other Financial Metrics - Adjusted net income (loss) for the six months ended June 30, 2024, was $(1,277,000), compared to $40,977,000 for the same period in 2023, indicating a significant decline[27] - Interest expense for the six months ended June 30, 2024, was $38,636,000, compared to $32,925,000 for the same period in 2023, representing an increase of approximately 17.3%[24] - Total paid trips increased to 9,031 thousand, up 3.4% from 8,735 thousand year-over-year[29]