DENVER--(BUSINESS WIRE)--Modivcare Inc. (the "Company†or "Modivcare†) (OTCMKTS: MODVQ), a technology-enabled healthcare services company providing a platform of integrated supportive care solutions focused on improving health outcomes, announced today that the U.S. Bankruptcy Court for the Southern District of Texas has confirmed the Company's Plan of Reorganization (the "Plan†). This milestone clears the path for Modivcare to successfully emerge from Chapter 11 in the coming weeks with significantly le ...

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was $702.8 million, flat compared to Q4 2023, while full year revenue reached $2.79 billion, a slight increase of just over 1% [61][63] - Adjusted EBITDA for Q4 was $40.4 million, totaling $161.1 million for the full year, reflecting a decrease of approximately 20% [11][62] - Consolidated net loss for Q4 was $23.5 million, while adjusted net income was $2.7 million, or $0.19 per share [63] Business Line Data and Key Metrics Changes - The NEMT segment, representing 70% of total revenue, generated $495 million in revenue, remaining flat year over year [64] - Personal Care Services (PCS) revenue increased by 3% year over year to $186.6 million, driven by a 3.5% growth in revenue per hour [68] - Remote Patient Monitoring (RPM) revenue was $19.2 million, representing 3% of total revenue but 16% of adjusted EBITDA [69] Market Data and Key Metrics Changes - Average monthly members in the NEMT segment decreased by approximately 11% year over year, while trip volume increased by 8.5% compared to a year ago [64] - The total addressable market for NEMT is estimated to exceed $6 billion, with an annual MCO revenue base of $1 billion entering 2025 [31] Company Strategy and Development Direction - The company aims to strengthen technology-enabled platforms across NEMT, personal care, and monitoring while executing strategic financial initiatives and divesting platforms [12][22] - A focus on monetizing select segments and unlocking value is emphasized, with a strategic alternatives committee established to oversee the divestiture process [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented challenges faced in 2024, including Medicaid redetermination and increased healthcare utilization, but expressed confidence in navigating these disruptions [8][9] - The company is optimistic about future growth opportunities, particularly in the MCO segment, with a win rate exceeding 90% over the past two years [31] Other Important Information - The company secured an incremental $75 million term loan and $30 million in new second lien notes to enhance financial flexibility [14][60] - New board appointments were made to enhance expertise in operational efficiency and technology innovation [15][20] Q&A Session Summary Question: How does ModivCare Inc.'s exposure to Medicaid affect fee-for-service contracts? - Management expects that any Medicaid cuts will primarily affect healthier members, and they are currently negotiating to reset payments based on member mix [78][80] Question: Can you provide an update on the sale process? - Management indicated that discussions are ongoing and they are encouraged by the interest in their platforms, but specific timing for sales was not disclosed [83][84] Question: What is the current membership status in NEMT and monitoring? - Membership in NEMT has decreased significantly, with expectations of recovery as new contracts are pursued [89][90] Question: What are the expectations for cash flow in 2025? - Management confirmed that they expect a return to positive free cash flow in the latter half of 2025, with improvements in contract structures aiding liquidity [112][117] Question: How will the transition from shared risk to fee-for-service contracts impact revenue? - Approximately 25% of revenue is expected to shift to fee-for-service contracts, which will help stabilize cash flow and reduce working capital shifts [124][126]