Q2 2024 ModivCare Inc Earnings Call Transcript
Key Points
- ModivCare Inc (MODV) reported second quarter results in line with expectations, with adjusted EBITDA of $45 million and revenue of $698 million.
- The company achieved $33 million in annual contract value wins in the second quarter, adding to the $36 million won in the first quarter.
- ModivCare Inc (MODV) realized $7 million in net cost savings in the second quarter, driven by strategic initiatives in the NEMT segment.
- The company successfully completed the refinancing of its $500 million 2025 senior secured notes with a new $525 million term loan B.
- ModivCare Inc (MODV) reaffirmed its 2024 revenue guidance of $2.7 billion to $2.9 billion, indicating confidence in its business outlook.
- The company reported a net loss of $129 million in the second quarter, largely due to a $105 million goodwill impairment in the RPM segment.
- Remote patient monitoring (RPM) revenue growth was lower year-over-year due to client membership churn, particularly within its largest Medicare Advantage clients.
- ModivCare Inc (MODV) lowered its adjusted EBITDA guidance to $185 million to $195 million, primarily due to lower than anticipated personal care services results.
- Free cash flow in the first half of 2024 was negative, driven by settlements on contracts, payables, and semiannual cash interest payments.
- The company faces ongoing challenges with Medicaid redeterminations, impacting revenue and adjusted EBITDA by approximately $60 million and $25 million to $30 million, respectively, in 2024.
Good morning and welcome to ModivCare's second quarter 2024 financial results conference call. (Operator Instructions) Please note this conference call is being recorded.
I would now like to turn the call over to Kevin Ellich, Head of Investor Relations. Mr. Ellich, you may begin.
Good morning and thank you for joining ModivCare's second quarter 2024 earnings conference call and webcast. Joining me today is Heath Sampson, ModivCare's President and Chief Executive Officer; and Barbara Gutierrez, ModivCare's Chief Financial Officer.
Before we get started, I wanted to remind everyone that during today's call, management will make forward-looking statements under the Private Securities Litigation Reform Act. These statements involve risks, uncertainties and other factors and may cause actual results or events to differ materially from expectations. Information regarding these factors is contained in today's press release and in the company's filings with the SEC.
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