Core Insights - Modivcare Inc. has successfully completed its financial restructuring and emerged from Chapter 11 protection, significantly reducing its funded debt by $1.1 billion, which is over 85% of its previous debt, and adding $100 million in new capital [2][3] Financial Restructuring - The company has reduced its annual cash interest expense and is emerging with a stronger balance sheet, improved liquidity, and increased financial flexibility [2] - Modivcare continued to operate normally during the restructuring process, ensuring no interruption to services for clients, members, providers, or partners [2] Leadership and Strategy - The CEO of Modivcare stated that the company is now positioned to focus on delivering reliable access to care and investing in necessary capabilities for the future [3] - Modivcare emerges as a privately-owned company under a group of seasoned investors committed to its success [3][4] Future Outlook - The restructuring is expected to enhance Modivcare's ability to invest in technology, data, and operational capabilities that are crucial for clients [4] - New directors with significant financial and strategic investments will help shape the company's future alongside experienced Board members [4] Company Overview - Modivcare is a technology-enabled healthcare services company providing integrated supportive care solutions, addressing social determinants of health by connecting members to essential care services [8] - The company offers non-emergency medical transportation, personal care services, and remote patient monitoring solutions [8]

Core Viewpoint - Modivcare Inc. has successfully confirmed its Plan of Reorganization in the U.S. Bankruptcy Court, paving the way for the company to emerge from Chapter 11 with reduced debt and improved capital structure for future growth [1][2] Company Overview - Modivcare is a technology-enabled healthcare services company that provides integrated supportive care solutions aimed at improving health outcomes for public and private payors and their members [6][7] - The company's services include non-emergency medical transportation (NEMT), personal care services (PCS), and remote patient monitoring solutions (RPM) [7] Restructuring Details - The restructuring aims to create a stronger and more sustainable organization to better meet the needs of its members [2] - Modivcare expects to complete the remaining procedural steps of its Chapter 11 process before the end of the year, ensuring that all service lines will continue to operate without interruption [2] Future Outlook - The company is focused on operational excellence and maintaining its commitment to providing quality service to clients and their members in the future [2]

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]