ModivCare (US:MODV)2024-08-07 20:05Financial 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]