ModivCare (MODV)2025-05-08 20:52Financial Performance - Q1 2025 revenue was $650.7 million, a decrease of 4.9% year-over-year from $684.5 million[4] - Net loss for Q1 2025 was $50.4 million, or negative $3.52 per diluted common share, compared to a net loss of $22.3 million in Q1 2024[5] - Adjusted EBITDA for Q1 2025 was $32.6 million, representing 5.0% of service revenue[5] - Service revenue for Q1 2025 was $650.654 million, a decrease of 4.9% compared to $684.451 million in Q1 2024[17] - Net loss for Q1 2025 was $50.377 million, compared to a net loss of $22.300 million in Q1 2024, representing an increase in loss of 125.5%[17] - Operating income for Q1 2025 was a loss of $4.442 million, compared to a loss of $3.395 million in Q1 2024[17] - Total operating expenses decreased to $655.096 million in Q1 2025 from $687.846 million in Q1 2024, a reduction of 4.8%[17] - Adjusted net loss for the same period was $24,491,000, significantly higher than the adjusted net loss of $1,211,000 in 2024[31] Segment Performance - NEMT segment revenue was $449.0 million, down 6.3% year-over-year, with a net income margin of 3.9%[6] - PCS segment revenue was $181.8 million, down 1.0%, with an Adjusted EBITDA of $12.2 million, up 8.5% year-over-year[6] - Monitoring segment revenue was $18.1 million, down 9.8%, with a 28.8% Adjusted EBITDA margin[6] - Service revenue for the NEMT segment decreased by 6.3% year-over-year to $449,007,000, while gross profit declined by 4.8% to $52,993,000[34] - The average monthly members in the NEMT segment dropped by 19.0% to 23,554,000, impacting overall revenue generation[34] - The PCS segment reported a net service revenue of $181,787,000, a slight decrease of 1.0% compared to the previous year[37] - Adjusted EBITDA for the Monitoring segment was $5,212,000, reflecting a decrease of 17.4% year-over-year[40] - Total paid trips in the NEMT segment fell by 4.0% to 8,458,000, indicating a decline in service utilization[34] Cash Flow and Financing - Operating cash flow was a use of $82.1 million, and Free cash flow was negative $86.2 million[4] - The company executed $105.0 million in new financing in Q1 to support ongoing transformation efforts[5] - Cash and cash equivalents at the end of Q1 2025 were $119.914 million, up from $113.116 million at the beginning of the period[22] Cost Management - Targeted cost reduction actions are expected to generate over $20.0 million in annualized G&A savings[5] - The corporate segment's G&A expense increased by 47.3% to $22,813,000, driven by restructuring and related costs[42] - Modivcare's overall adjusted G&A expense as a percentage of consolidated revenue remained stable at 10.0%[42] - The company experienced a significant increase in restructuring costs, which rose by 85.2% to $9,455,000 compared to the previous year[42] Balance Sheet - Net contract receivables increased to $108.5 million, up from $95.2 million last quarter[4] - Total assets as of March 31, 2025, were $1.677 billion, a slight increase from $1.654 billion at the end of 2024[19] - Long-term debt increased to $1.016 billion as of March 31, 2025, compared to $986.436 million at the end of 2024[19] - Interest expense for Q1 2025 was $38.837 million, significantly higher than $18.686 million in Q1 2024[17] - The weighted-average number of common shares outstanding for Q1 2025 was 14,328,736, compared to 14,202,000 in Q1 2024[17]