ModivCare (US:MODV)2022-08-07 12:37Financial Data and Key Metrics Changes - Consolidated revenue grew by 32% year-over-year to $628 million, with adjusted EBITDA of $60 million, reflecting a 13% increase compared to the previous year [9][28] - Net income was reported at $3.3 million, or $0.24 per share, while adjusted net income was $28 million, or $1.99 per diluted share [28] Business Segment Data and Key Metrics Changes - Nonemergency medical transportation (NEMT) revenue increased by approximately 23% year-over-year to $449 million, driven by a 14% increase in average monthly members and an 18% increase in trips [29] - Personal care segment revenue rose to $163 million from $110 million, primarily due to the CareFinders acquisition and rate increases [32] - Remote patient monitoring (RPM) revenue was $17 million, including $2.6 million from the Guardian Medical Monitoring acquisition [35] Market Data and Key Metrics Changes - The addressable market opportunity for ModivCare is over $90 billion, expected to grow to $150 billion in the coming years [16] - The demand for personal care services continues to outpace supply, with recruitment efforts showing signs of improvement [22] Company Strategy and Development Direction - ModivCare aims to be the leading integrated supportive care provider, focusing on executing its strategy to bundle and coordinate services for better outcomes [41] - The company is committed to enhancing its ESG capabilities and disclosures, as highlighted in its inaugural ESG report [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong operational performance despite macroeconomic challenges such as inflation and labor shortages [10] - The company raised its full-year 2022 guidance for revenue and adjusted EBITDA due to strong second-quarter results [38] Other Important Information - The acquisition of Guardian Medical Monitoring is expected to bolster ModivCare's position in remote patient monitoring, adding approximately $18 million in annual revenue [12] - The company is focused on improving member care coordination and leveraging technology to enhance the member experience [19] Q&A Session Summary Question: Thoughts on corporate strategy and execution post-CEO departure - Management confirmed that the strategy remains consistent, focusing on executing the integration of acquired assets and enhancing customer relationships [45] Question: Demand and recruitment in personal care services - Demand is consistently 10% to 30% higher than current capacity, with expectations for recruitment strategies to yield benefits in the latter part of the year [46] Question: Utilization recovery in transportation services - Utilization is expected to grow to 10% to 11%, normalizing over the next few years, with pricing changes reflecting increased costs [48] Question: Member growth and competitive marketplace in NEMT - Growth in members is primarily driven by Medicare, with strong retention and account management efforts contributing to revenue increases [53] Question: Future talent needs and technology integration - The company is focused on attracting talent in technology and data management to support its growth strategy [55] Question: Update on Matrix and its performance - The risk assessment business is expected to grow, with strong initiatives in place for retention and recruitment [62]