Modivcare Reports Fourth Quarter and Full Year 2023 Financial Results; Issues 2024 Guidance
Fourth Quarter 2023 Summary:
-
Service revenue of
$702.8 million , a 7.5% increase as compared to$653.9 million in the fourth quarter of 2022 -
Net loss of
$5.3 million , or$0.37 per diluted common share -
Adjusted EBITDA(1) of
$50.5 million , adjusted net income(1) of$18.4 million and adjusted EPS(1) of$1.29 per diluted common share -
Net cash used in operating activities during the quarter of
$25.6 million and negative free cash flow(2) of$36.8 million , primarily related to a delayed payment from a single client -
Contract receivables increased by
$14.7 million to$144.0 million and contract payables decreased by$16.1 million to$117.5 million , resulting in net contract receivables of$26.5 million as ofDecember 31, 2023 -
$216.2 million of NEMT TCV(3) won during the fourth quarter of 2023, including sizable managed Medicaid contracts contributing to total new wins that will outpace contract attrition in 2024 -
$113.8 million drawn on our$325.0 million revolving credit facility - As a subsequent event, in early 2024 we amended the leverage covenant to provide additional cushion for credit facility availability, ensuring sufficient liquidity
Full Year 2023 Summary:
-
Service revenue of
$2,751.2 million , a 9.9% increase as compared to$2,504.4 million in 2022 -
Net loss of
$204.5 million , or$14.43 per diluted common share -
Adjusted EBITDA(1) of
$204.4 million , adjusted net income(1) of$79.9 million and adjusted EPS(1) of$5.60 per diluted common share -
Net cash used in operating activities in 2023 of
$83.0 million and negative free cash flow(2) of$125.3 million -
Contract receivables increased by
$72.8 million to$144.0 million and contract payables decreased by$76.8 million to$117.5 million -
In 2023, won
$463.5 million of NEMT TCV(3) or$141.8 million ACV(3), as well as$10.6 million in ACV(3) for remote patient monitoring
|
|
(1) Non-GAAP financial measure reconciliations and other related information about non-GAAP financial measures provided below |
|
(2) Free cash flow, a non-GAAP financial measure, is calculated by us as cash flow from operations less our capital expenditures during the period that is included in our purchase of property and equipment line in our Statements of Cash Flows provided below. |
|
(3) Total Contract Value, or TCV, describes a measure of the expected revenue impact of a contract over the life of the contract. Annual Contract Value, or ACV, describes the revenue impact over one full year during the life of a contract. ACV expected for a contract in effect for less than a full year during the life of a contract would be prorated for the portion the year during which it is in effect. |
“We delivered solid financial results for 2023 with revenue and adjusted EBITDA meeting our guidance. Our NEMT revenue grew 9% during the fourth quarter driven by a 13% increase in trips, while our personal care and remote patient monitoring segments continued to grow nicely," stated
2024 Guidance
Our 2024 guidance is as follows (in millions):
|
|
First Quarter 2024 |
|
Fiscal Year 2024 |
Revenue |
|
|
|
|
Adjusted EBITDA |
|
|
|
|
Guidance excludes the effects of any future merger or acquisition activity and is based on the current operating environment.
Fourth Quarter 2023 Results
For the fourth quarter of 2023, the Company reported revenue of
Operating income was
Adjusted EBITDA was
Net cash used in operating activities during the quarter was
Full Year 2023 Results
For the full year 2023, the Company reported revenue of
Loss from operations was
Adjusted EBITDA for 2023 was
Net cash used in operating activities during the year was
Fourth Quarter and Full Year 2023 Earnings Conference Call
US toll-free:
1 (877) 407-8037
International: 1 (201) 689-8037
You may also access the conference call via webcast at investors.modivcare.com, where the call will also be archived.
About
Non-GAAP Financial Measures and Adjustments
In addition to the financial measures presented herein that have been prepared in accordance with generally accepted accounting principles in
Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on our reported financial results. The presentation of non-GAAP financial measures is not intended to be considered in isolation from or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. We urge you to review the reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are predictive in nature and are frequently identified by the use of terms such as “may,” “will,” “should,” “expect,” “believe,” “estimate,” “intend,” and similar words indicating possible future expectations, events or actions. The updated guidance discussed herein constitutes forward-looking statements. Such forward-looking statements are based on current expectations, assumptions, estimates and projections about our business and our industry, and are not guarantees of our future performance. These statements are subject to a number of known and unknown risks, uncertainties and other factors, many of which are beyond our ability to control or predict, which may cause actual results to be materially different from those expressed or implied herein, including but not limited to: government or private insurance program funding reductions or limitations; implementation of alternative payment models or the transition of Medicaid and Medicare beneficiaries to Managed Care Organizations; our inability to control reimbursement rates received for our services; cost containment initiatives undertaken by private third-party payors and an inability to maintain or reduce our cost of services below rates set forth by our payors; the effects of a public health emergency; inadequacies in, or security breaches of, our information technology systems; changes in the funding, financial viability or our relationships with our payors; pandemics and other infectious diseases; delays in collection, or non-collection, of our accounts receivable; any impairment of our goodwill and long-lived assets; any failure to maintain or to develop reliable, efficient and secure information technology systems; any inability to attract and retain qualified employees; any disruptions from acquisition or acquisition integration efforts; estimated income taxes being different from income taxes that we ultimately pay; weakening of general economic conditions, including the impact of inflationary pressures, rising interest rates, labor shortages, higher labor costs and supply chain challenges; our contracts not surviving until the end of their stated terms, or not being renewed or extended; our failure to compete effectively in the marketplace; our not being awarded contracts through the government’s requests for proposals process, or our awarded contracts not being profitable; any failure to satisfy our contractual obligations or to maintain existing pledged performance and payment bonds; any failure to estimate accurately the cost of performing our contracts; any misclassification of the drivers we engage as independent contractors rather than as employees; significant interruptions in our communication and data services; not successfully executing on our strategies in the face of our competition; any inability to maintain relationships with existing patient referral sources; certificates of need laws or other regulatory and licensure obligations that may adversely affect our personal care integration efforts and expansion into new markets; any failure to obtain the consent of the
The Company has provided additional information about the risks facing our business in our annual report on Form 10-K and subsequent periodic and current reports most recently filed with the
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||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||||||||||
(in thousands except share and per share data) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended |
|
Year ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Service revenue, net |
|
$ |
702,832 |
|
|
$ |
653,921 |
|
|
$ |
2,751,170 |
|
|
$ |
2,504,393 |
|
Grant income |
|
|
388 |
|
|
|
2,764 |
|
|
|
5,037 |
|
|
|
7,351 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Service expense |
|
|
585,483 |
|
|
|
533,966 |
|
|
|
2,304,218 |
|
|
|
2,032,074 |
|
General and administrative expense |
|
|
75,469 |
|
|
|
90,063 |
|
|
|
304,564 |
|
|
|
322,171 |
|
Depreciation and amortization |
|
|
26,592 |
|
|
|
26,039 |
|
|
|
104,271 |
|
|
|
100,415 |
|
Impairment of goodwill |
|
|
— |
|
|
|
— |
|
|
|
183,100 |
|
|
|
— |
|
Total operating expenses |
|
|
687,544 |
|
|
|
650,068 |
|
|
|
2,896,153 |
|
|
|
2,454,660 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
|
15,676 |
|
|
|
6,617 |
|
|
|
(139,946 |
) |
|
|
57,084 |
|
|
|
|
|
|
|
|
|
|
||||||||
Other expenses: |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
18,351 |
|
|
|
15,532 |
|
|
|
69,120 |
|
|
|
61,961 |
|
Loss before income taxes and equity method investment |
|
|
(2,675 |
) |
|
|
(8,915 |
) |
|
|
(209,066 |
) |
|
|
(4,877 |
) |
Income tax benefit (provision) |
|
|
(43 |
) |
|
|
3,912 |
|
|
|
4,319 |
|
|
|
3,035 |
|
Equity in net income (loss) of investee, net of tax |
|
|
(2,534 |
) |
|
|
(1,944 |
) |
|
|
287 |
|
|
|
(29,964 |
) |
Net loss |
|
$ |
(5,252 |
) |
|
$ |
(6,947 |
) |
|
$ |
(204,460 |
) |
|
$ |
(31,806 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Loss per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.37 |
) |
|
$ |
(0.49 |
) |
|
$ |
(14.43 |
) |
|
$ |
(2.26 |
) |
Diluted |
|
$ |
(0.37 |
) |
|
$ |
(0.49 |
) |
|
$ |
(14.43 |
) |
|
$ |
(2.26 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
||||||||||
Basic |
|
|
14,187,071 |
|
|
|
14,123,013 |
|
|
|
14,173,957 |
|
|
|
14,061,839 |
|
Diluted |
|
|
14,187,071 |
|
|
|
14,123,013 |
|
|
|
14,173,957 |
|
|
|
14,061,839 |
|
|
|||||
Unaudited Condensed Consolidated Balance Sheets |
|||||
(in thousands) |
|||||
|
|
|
|
||
|
|
||||
|
2023 |
|
2022 |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
2,217 |
|
$ |
14,451 |
Accounts receivable, net |
|
222,537 |
|
|
223,210 |
Contract receivables |
|
143,960 |
|
|
71,131 |
Other current assets(1) |
|
36,209 |
|
|
37,362 |
Total current assets |
|
404,923 |
|
|
346,154 |
Property and equipment, net |
|
85,629 |
|
|
69,138 |
|
|
785,554 |
|
|
968,654 |
Intangible assets, net |
|
360,935 |
|
|
439,409 |
Equity investment |
|
41,531 |
|
|
41,303 |
Operating lease right-of-use assets |
|
39,776 |
|
|
39,405 |
Other long-term assets |
|
48,927 |
|
|
40,209 |
Total assets |
$ |
1,767,275 |
|
$ |
1,944,272 |
|
|
|
|
||
Liabilities and stockholders' equity |
|||||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
55,241 |
|
$ |
54,959 |
Accrued contract payables |
|
117,488 |
|
|
194,287 |
Accrued expenses and other current liabilities |
|
127,901 |
|
|
135,860 |
Accrued transportation costs |
|
97,245 |
|
|
96,851 |
Current portion of operating lease liabilities |
|
8,727 |
|
|
9,640 |
Short-term borrowings |
|
113,800 |
|
|
— |
Total current liabilities |
|
520,402 |
|
|
491,597 |
Long-term debt, net of deferred financing costs |
|
983,757 |
|
|
979,361 |
Operating lease liabilities, less current portion |
|
33,784 |
|
|
32,088 |
Other long-term liabilities(2) |
|
73,137 |
|
|
86,670 |
Total liabilities |
|
1,611,080 |
|
|
1,589,716 |
|
|
|
|
||
Stockholders' equity |
|
156,195 |
|
|
354,556 |
Total liabilities and stockholders' equity |
$ |
1,767,275 |
|
$ |
1,944,272 |
(1) |
Includes other receivables, prepaid expenses and other current assets and short-term restricted cash. |
|
(2) |
Includes deferred tax liabilities. |
|
|||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three months ended |
|
Year ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(5,252 |
) |
|
$ |
(6,947 |
) |
|
$ |
(204,460 |
) |
|
$ |
(31,806 |
) |
Depreciation and amortization |
|
26,592 |
|
|
|
26,039 |
|
|
|
104,271 |
|
|
|
100,415 |
|
Stock-based compensation |
|
2,427 |
|
|
|
1,720 |
|
|
|
6,456 |
|
|
|
6,872 |
|
Equity in net (income) loss of investee, before tax |
|
3,517 |
|
|
|
2,033 |
|
|
|
(398 |
) |
|
|
40,916 |
|
Deferred income taxes |
|
(2,417 |
) |
|
|
(5,431 |
) |
|
|
(17,652 |
) |
|
|
(36,663 |
) |
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
|
183,100 |
|
|
|
— |
|
Reduction of right-of-use assets |
|
2,469 |
|
|
|
2,960 |
|
|
|
12,344 |
|
|
|
11,640 |
|
Other non-cash items(1) |
|
(4,959 |
) |
|
|
(8,292 |
) |
|
|
(3,473 |
) |
|
|
(12,862 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Contract receivables |
|
(14,685 |
) |
|
|
(11,071 |
) |
|
|
(72,828 |
) |
|
|
(46,651 |
) |
Contract payables |
|
(16,088 |
) |
|
|
(49,513 |
) |
|
|
(76,798 |
) |
|
|
(87,299 |
) |
Other working capital items(2) |
|
(17,248 |
) |
|
|
(7,466 |
) |
|
|
(13,533 |
) |
|
|
44,996 |
|
Net cash used in operating activities |
|
(25,644 |
) |
|
|
(55,968 |
) |
|
|
(82,971 |
) |
|
|
(10,442 |
) |
|
|
|
|
|
|
|
|
||||||||
Investing activities |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(11,145 |
) |
|
|
(7,486 |
) |
|
|
(42,288 |
) |
|
|
(33,004 |
) |
Acquisitions, net of cash acquired |
|
— |
|
|
|
63 |
|
|
|
— |
|
|
|
(78,809 |
) |
Net cash used in investing activities |
|
(11,145 |
) |
|
|
(7,423 |
) |
|
|
(42,288 |
) |
|
|
(111,813 |
) |
|
|
|
|
|
|
|
|
||||||||
Financing activities |
|
|
|
|
|
|
|
||||||||
Net proceeds from short-term borrowings |
|
30,800 |
|
|
|
— |
|
|
|
113,800 |
|
|
|
— |
|
Payment of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(376 |
) |
|
|
(2,415 |
) |
Proceeds from common stock issued pursuant to stock option exercise |
|
— |
|
|
|
5,552 |
|
|
|
31 |
|
|
|
6,789 |
|
Restricted stock surrendered for employee tax payment |
|
(38 |
) |
|
|
(143 |
) |
|
|
(899 |
) |
|
|
(792 |
) |
Other financing activities |
|
195 |
|
|
|
226 |
|
|
|
510 |
|
|
|
226 |
|
Net cash provided by financing activities |
|
30,957 |
|
|
|
5,635 |
|
|
|
113,066 |
|
|
|
3,808 |
|
|
|
|
|
|
|
|
|
||||||||
Net change in cash and cash equivalents |
|
(5,832 |
) |
|
|
(57,756 |
) |
|
|
(12,193 |
) |
|
|
(118,447 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
8,614 |
|
|
|
72,731 |
|
|
|
14,975 |
|
|
|
133,422 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
2,782 |
|
|
$ |
14,975 |
|
|
$ |
2,782 |
|
|
$ |
14,975 |
|
(1) |
Includes amortization of deferred financing costs and debt discount and other assets. |
|
(2) |
Includes accounts receivable and other receivables, prepaid expenses and other current assets, accounts payable and accrued expenses, accrued transportation costs and other long-term liabilities. |
|
|||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
Segment Information and Adjusted EBITDA |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
|
Three months ended |
||||||||||||||||||
|
NEMT |
|
PCS |
|
RPM |
|
Corporate and Other |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
499,058 |
|
|
$ |
181,180 |
|
|
$ |
20,239 |
|
|
$ |
2,355 |
|
|
$ |
702,832 |
|
Grant income |
|
— |
|
|
|
388 |
|
|
|
— |
|
|
|
— |
|
|
|
388 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Service expense |
|
432,186 |
|
|
|
144,283 |
|
|
|
6,896 |
|
|
|
2,118 |
|
|
|
585,483 |
|
General and administrative expense |
|
27,710 |
|
|
|
23,287 |
|
|
|
6,190 |
|
|
|
18,282 |
|
|
|
75,469 |
|
Depreciation and amortization |
|
7,090 |
|
|
|
12,812 |
|
|
|
6,449 |
|
|
|
241 |
|
|
|
26,592 |
|
Total operating expenses |
|
466,986 |
|
|
|
180,382 |
|
|
|
19,535 |
|
|
|
20,641 |
|
|
|
687,544 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
|
32,072 |
|
|
|
1,186 |
|
|
|
704 |
|
|
|
(18,286 |
) |
|
|
15,676 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,351 |
|
|
|
18,351 |
|
Income (loss) before income taxes and equity method investment |
|
32,072 |
|
|
|
1,186 |
|
|
|
704 |
|
|
|
(36,637 |
) |
|
|
(2,675 |
) |
Income tax benefit (provision) |
|
(8,588 |
) |
|
|
49 |
|
|
|
(694 |
) |
|
|
9,190 |
|
|
|
(43 |
) |
Equity in net income (loss) of investee, net of tax |
|
73 |
|
|
|
— |
|
|
|
— |
|
|
|
(2,607 |
) |
|
|
(2,534 |
) |
Net Income (loss) |
|
23,557 |
|
|
|
1,235 |
|
|
|
10 |
|
|
|
(30,054 |
) |
|
|
(5,252 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,351 |
|
|
|
18,351 |
|
Income tax (benefit) provision |
|
8,588 |
|
|
|
(49 |
) |
|
|
694 |
|
|
|
(9,190 |
) |
|
|
43 |
|
Depreciation and amortization |
|
7,090 |
|
|
|
12,812 |
|
|
|
6,449 |
|
|
|
241 |
|
|
|
26,592 |
|
EBITDA |
|
39,235 |
|
|
|
13,998 |
|
|
|
7,153 |
|
|
|
(20,652 |
) |
|
|
39,734 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs(1) |
|
658 |
|
|
|
— |
|
|
|
— |
|
|
|
2,575 |
|
|
|
3,233 |
|
Transaction and integration costs(2) |
|
(101 |
) |
|
|
1,807 |
|
|
|
16 |
|
|
|
74 |
|
|
|
1,796 |
|
Settlement related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,194 |
|
|
|
1,194 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,016 |
|
|
|
2,016 |
|
Equity in net (income) loss of investee, net of tax |
|
(73 |
) |
|
|
— |
|
|
|
— |
|
|
|
2,607 |
|
|
|
2,534 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
39,719 |
|
|
$ |
15,805 |
|
|
$ |
7,169 |
|
|
$ |
(12,186 |
) |
|
$ |
50,507 |
|
(1) |
Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
|
(2) |
Consists of fees incurred for SOX implementation and business integration efforts. |
|
|||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
Segment Information and Adjusted EBITDA |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
|
Three months ended |
||||||||||||||||||
|
NEMT |
|
PCS |
|
RPM |
|
Corporate and Other |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
458,993 |
|
|
$ |
176,013 |
|
|
$ |
18,915 |
|
|
$ |
— |
|
|
$ |
653,921 |
|
Grant income |
|
— |
|
|
|
2,764 |
|
|
|
— |
|
|
|
— |
|
|
|
2,764 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Service expense |
|
386,646 |
|
|
|
140,642 |
|
|
|
6,678 |
|
|
|
— |
|
|
|
533,966 |
|
General and administrative expense |
|
44,199 |
|
|
|
22,829 |
|
|
|
5,636 |
|
|
|
17,399 |
|
|
|
90,063 |
|
Depreciation and amortization |
|
7,133 |
|
|
|
13,049 |
|
|
|
5,653 |
|
|
|
204 |
|
|
|
26,039 |
|
Total operating expenses |
|
437,978 |
|
|
|
176,520 |
|
|
|
17,967 |
|
|
|
17,603 |
|
|
|
650,068 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
|
21,015 |
|
|
|
2,257 |
|
|
|
948 |
|
|
|
(17,603 |
) |
|
|
6,617 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,532 |
|
|
|
15,532 |
|
Income (loss) before income taxes and equity method investment |
|
21,015 |
|
|
|
2,257 |
|
|
|
948 |
|
|
|
(33,135 |
) |
|
|
(8,915 |
) |
Income tax benefit (provision) |
|
(3,739 |
) |
|
|
92 |
|
|
|
(276 |
) |
|
|
7,835 |
|
|
|
3,912 |
|
Equity in net loss of investee, net of tax |
|
(72 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,872 |
) |
|
|
(1,944 |
) |
Net Income (loss) |
|
17,204 |
|
|
|
2,349 |
|
|
|
672 |
|
|
|
(27,172 |
) |
|
|
(6,947 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,532 |
|
|
|
15,532 |
|
Income tax provision (benefit) |
|
3,739 |
|
|
|
(92 |
) |
|
|
276 |
|
|
|
(7,835 |
) |
|
|
(3,912 |
) |
Depreciation and amortization |
|
7,133 |
|
|
|
13,049 |
|
|
|
5,653 |
|
|
|
204 |
|
|
|
26,039 |
|
EBITDA |
|
28,076 |
|
|
|
15,306 |
|
|
|
6,601 |
|
|
|
(19,271 |
) |
|
|
30,712 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs(1) |
|
13,869 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
13,863 |
|
Transaction and integration costs(2) |
|
4,219 |
|
|
|
1,216 |
|
|
|
174 |
|
|
|
2,050 |
|
|
|
7,659 |
|
Settlement related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,564 |
|
|
|
3,564 |
|
Stock-based compensation(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,842 |
|
|
|
1,842 |
|
COVID-19 related costs, net of grant income |
|
24 |
|
|
|
43 |
|
|
|
— |
|
|
|
— |
|
|
|
67 |
|
Equity in net loss of investee, net of tax |
|
72 |
|
|
|
— |
|
|
|
— |
|
|
|
1,872 |
|
|
|
1,944 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
46,260 |
|
|
$ |
16,559 |
|
|
$ |
6,775 |
|
|
$ |
(9,943 |
) |
|
$ |
59,651 |
|
(1) |
Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
|
(2) |
Consists of fees incurred for SOX implementation and business integration efforts. |
|
(3) |
Includes cash settled equity balances. |
|
|||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
Segment Information and Adjusted EBITDA |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
|
Year ended |
||||||||||||||||||
|
NEMT |
|
PCS |
|
RPM |
|
Corporate and Other |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
1,951,447 |
|
|
$ |
715,615 |
|
|
$ |
77,941 |
|
|
$ |
6,167 |
|
|
$ |
2,751,170 |
|
Grant income |
|
— |
|
|
|
5,037 |
|
|
|
— |
|
|
|
— |
|
|
|
5,037 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Service expense |
|
1,709,790 |
|
|
|
561,919 |
|
|
|
27,025 |
|
|
|
5,484 |
|
|
|
2,304,218 |
|
General and administrative expense |
|
115,355 |
|
|
|
86,767 |
|
|
|
22,971 |
|
|
|
79,471 |
|
|
|
304,564 |
|
Depreciation and amortization |
|
27,409 |
|
|
|
51,402 |
|
|
|
24,536 |
|
|
|
924 |
|
|
|
104,271 |
|
Impairment of goodwill |
|
— |
|
|
|
137,331 |
|
|
|
45,769 |
|
|
|
— |
|
|
|
183,100 |
|
Total operating expenses |
|
1,852,554 |
|
|
|
837,419 |
|
|
|
120,301 |
|
|
|
85,879 |
|
|
|
2,896,153 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
|
98,893 |
|
|
|
(116,767 |
) |
|
|
(42,360 |
) |
|
|
(79,712 |
) |
|
|
(139,946 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
69,120 |
|
|
|
69,120 |
|
Income (loss) before income taxes and equity method investment |
|
98,893 |
|
|
|
(116,767 |
) |
|
|
(42,360 |
) |
|
|
(148,832 |
) |
|
|
(209,066 |
) |
Income tax benefit (provision) |
|
(26,602 |
) |
|
|
(5,403 |
) |
|
|
(1,459 |
) |
|
|
37,783 |
|
|
|
4,319 |
|
Equity in net income (loss) of investee, net of tax |
|
1,057 |
|
|
|
— |
|
|
|
— |
|
|
|
(770 |
) |
|
|
287 |
|
Net Income (loss) |
|
73,348 |
|
|
|
(122,170 |
) |
|
|
(43,819 |
) |
|
|
(111,819 |
) |
|
|
(204,460 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
69,120 |
|
|
|
69,120 |
|
Provision (benefit) for income taxes |
|
26,602 |
|
|
|
5,403 |
|
|
|
1,459 |
|
|
|
(37,783 |
) |
|
|
(4,319 |
) |
Depreciation and amortization |
|
27,409 |
|
|
|
51,402 |
|
|
|
24,536 |
|
|
|
924 |
|
|
|
104,271 |
|
EBITDA |
|
127,359 |
|
|
|
(65,365 |
) |
|
|
(17,824 |
) |
|
|
(79,558 |
) |
|
|
(35,388 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs(1) |
|
12,523 |
|
|
|
— |
|
|
|
— |
|
|
|
24,181 |
|
|
|
36,704 |
|
Transaction and integration costs(2) |
|
— |
|
|
|
2,688 |
|
|
|
86 |
|
|
|
1,908 |
|
|
|
4,682 |
|
Settlement related costs |
|
250 |
|
|
|
— |
|
|
|
— |
|
|
|
9,877 |
|
|
|
10,127 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,501 |
|
|
|
5,501 |
|
Impairment of goodwill |
|
— |
|
|
|
137,331 |
|
|
|
45,769 |
|
|
|
— |
|
|
|
183,100 |
|
Equity in net (income) loss of investee, net of tax |
|
(1,057 |
) |
|
|
— |
|
|
|
— |
|
|
|
770 |
|
|
|
(287 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
139,075 |
|
|
$ |
74,654 |
|
|
$ |
28,031 |
|
|
$ |
(37,321 |
) |
|
$ |
204,439 |
|
(1) |
Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
|
(2) |
Consists of fees incurred for SOX implementation and business integration efforts. |
|
|||||||||||||||||||
Unaudited Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||||||
Segment Information and Adjusted EBITDA |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
|
Year ended |
||||||||||||||||||
|
NEMT |
|
PCS |
|
RPM |
|
Corporate and Other |
|
Total |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Service revenue, net |
$ |
1,768,442 |
|
|
$ |
667,674 |
|
|
$ |
68,277 |
|
|
$ |
— |
|
|
$ |
2,504,393 |
|
Grant income |
|
— |
|
|
|
7,351 |
|
|
|
— |
|
|
|
— |
|
|
|
7,351 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Service expense |
|
1,487,447 |
|
|
|
520,065 |
|
|
|
24,562 |
|
|
|
— |
|
|
|
2,032,074 |
|
General and administrative expense |
|
146,935 |
|
|
|
91,365 |
|
|
|
23,156 |
|
|
|
60,715 |
|
|
|
322,171 |
|
Depreciation and amortization |
|
28,709 |
|
|
|
51,025 |
|
|
|
19,854 |
|
|
|
827 |
|
|
|
100,415 |
|
Total operating expenses |
|
1,663,091 |
|
|
|
662,455 |
|
|
|
67,572 |
|
|
|
61,542 |
|
|
|
2,454,660 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
|
105,351 |
|
|
|
12,570 |
|
|
|
705 |
|
|
|
(61,542 |
) |
|
|
57,084 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
61,961 |
|
|
|
61,961 |
|
Income (loss) before income taxes and equity method investment |
|
105,351 |
|
|
|
12,570 |
|
|
|
705 |
|
|
|
(123,503 |
) |
|
|
(4,877 |
) |
Income tax benefit (provision) |
|
(26,855 |
) |
|
|
(2,810 |
) |
|
|
(208 |
) |
|
|
32,908 |
|
|
|
3,035 |
|
Equity in net income (loss) of investee, net of tax |
|
71 |
|
|
|
— |
|
|
|
— |
|
|
|
(30,035 |
) |
|
|
(29,964 |
) |
Net Income (loss) |
|
78,567 |
|
|
|
9,760 |
|
|
|
497 |
|
|
|
(120,630 |
) |
|
|
(31,806 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
61,961 |
|
|
|
61,961 |
|
Income tax provision (benefit) |
|
26,855 |
|
|
|
2,810 |
|
|
|
208 |
|
|
|
(32,908 |
) |
|
|
(3,035 |
) |
Depreciation and amortization |
|
28,709 |
|
|
|
51,025 |
|
|
|
19,854 |
|
|
|
827 |
|
|
|
100,415 |
|
EBITDA |
|
134,131 |
|
|
|
63,595 |
|
|
|
20,559 |
|
|
|
(90,750 |
) |
|
|
127,535 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructuring and related costs(1) |
|
25,228 |
|
|
|
757 |
|
|
|
63 |
|
|
|
950 |
|
|
|
26,998 |
|
Transaction and integration costs(2) |
|
4,225 |
|
|
|
7,550 |
|
|
|
2,927 |
|
|
|
9,269 |
|
|
|
23,971 |
|
Settlement related costs |
|
5,500 |
|
|
|
— |
|
|
|
— |
|
|
|
4,064 |
|
|
|
9,564 |
|
Stock-based compensation(3) |
|
— |
|
|
|
190 |
|
|
|
86 |
|
|
|
5,792 |
|
|
|
6,068 |
|
COVID-19 related costs, net of grant income |
|
129 |
|
|
|
(2,327 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,198 |
) |
Equity in net (income) loss of investee, net of tax |
|
(71 |
) |
|
|
— |
|
|
|
— |
|
|
|
30,035 |
|
|
|
29,964 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA |
$ |
169,142 |
|
|
$ |
69,765 |
|
|
$ |
23,635 |
|
|
$ |
(40,640 |
) |
|
$ |
221,902 |
|
(1) |
Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
|
(2) |
Consists of fees incurred for SOX implementation and business integration efforts. |
|
(3) |
Includes cash settled equity balances. |
|
|||||||||||||||
Unaudited Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||
Adjusted Net Income and Adjusted Net Income per Common Share: |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(5,252 |
) |
|
$ |
(6,947 |
) |
|
$ |
(204,460 |
) |
|
$ |
(31,806 |
) |
|
|
|
|
|
|
|
|
||||||||
Restructuring and related costs(1) |
|
3,233 |
|
|
|
13,863 |
|
|
|
36,704 |
|
|
|
26,998 |
|
Transaction and integration costs(2) |
|
1,796 |
|
|
|
7,659 |
|
|
|
4,682 |
|
|
|
23,971 |
|
Settlement related costs |
|
1,194 |
|
|
|
3,564 |
|
|
|
10,127 |
|
|
|
9,564 |
|
Stock-based compensation(3) |
|
2,016 |
|
|
|
1,842 |
|
|
|
5,501 |
|
|
|
6,068 |
|
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
|
183,100 |
|
|
|
— |
|
Equity in net (income) loss of investee, net of tax |
|
2,534 |
|
|
|
1,944 |
|
|
|
(287 |
) |
|
|
29,964 |
|
Intangible amortization expense |
|
19,775 |
|
|
|
20,381 |
|
|
|
79,232 |
|
|
|
80,359 |
|
COVID-19 related costs, net of grant income(4) |
|
— |
|
|
|
67 |
|
|
|
— |
|
|
|
(2,198 |
) |
Income tax impact of adjustments |
|
(6,848 |
) |
|
|
(12,555 |
) |
|
|
(34,681 |
) |
|
|
(39,518 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
$ |
18,448 |
|
|
$ |
29,818 |
|
|
$ |
79,918 |
|
|
$ |
103,402 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EPS |
$ |
1.29 |
|
|
$ |
2.11 |
|
|
$ |
5.60 |
|
|
$ |
7.32 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted-average number of common shares outstanding |
|
14,326,957 |
|
|
|
14,149,333 |
|
|
|
14,272,709 |
|
|
|
14,126,912 |
|
(1) |
Includes professional fees for strategic initiatives, organizational consolidation costs, severance and other professional fees. |
|
(2) |
Consists of fees incurred related to SOX implementation and business integration efforts. |
|
(3) |
Includes cash settled equity balances. |
|
(4) |
COVID-19 related costs were added back as one-time items through 2022. As the Public Health Emergency ended in 2023 and the effects of COVID-19 have become normal course of business, COVID-19 related items are no longer added back in 2023. |
|
||||||||||||||||||||||||||||
Unaudited Key Statistical and Financial Data |
||||||||||||||||||||||||||||
(in thousands, except for statistical data) |
||||||||||||||||||||||||||||
|
Three months ended |
|
|
|
Year ended |
|
|
|
Three months ended |
|
|
|||||||||||||||||
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
QoQ % Change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
NEMT Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Service revenue, net |
$ |
499,058 |
|
|
$ |
458,993 |
|
|
8.7 |
% |
|
$ |
1,951,447 |
|
|
$ |
1,768,442 |
|
|
10.3 |
% |
|
$ |
485,951 |
|
|
2.7 |
% |
Purchased services expense |
|
371,590 |
|
|
|
331,708 |
|
|
12.0 |
% |
|
|
1,456,796 |
|
|
|
1,267,006 |
|
|
15.0 |
% |
|
|
363,594 |
|
|
2.2 |
% |
Payroll and other expense |
|
60,596 |
|
|
|
54,938 |
|
|
10.3 |
% |
|
|
252,994 |
|
|
|
220,441 |
|
|
14.8 |
% |
|
|
64,427 |
|
|
(5.9 |
)% |
Service expense |
$ |
432,186 |
|
|
$ |
386,646 |
|
|
11.8 |
% |
|
$ |
1,709,790 |
|
|
$ |
1,487,447 |
|
|
14.9 |
% |
|
$ |
428,021 |
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross profit |
$ |
66,872 |
|
|
$ |
72,347 |
|
|
(7.6 |
)% |
|
$ |
241,657 |
|
|
$ |
280,995 |
|
|
(14.0 |
)% |
|
$ |
57,930 |
|
|
15.4 |
% |
Gross margin |
|
13.4 |
% |
|
|
15.8 |
% |
|
|
|
|
12.4 |
% |
|
|
15.9 |
% |
|
|
|
|
11.9 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
G&A expense |
$ |
27,710 |
|
|
$ |
44,199 |
|
|
(37.3 |
)% |
|
$ |
115,355 |
|
|
$ |
146,935 |
|
|
(21.5 |
)% |
|
$ |
25,433 |
|
|
9.0 |
% |
G&A expense adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring and related costs |
|
658 |
|
|
|
13,869 |
|
|
(95.3 |
)% |
|
|
12,523 |
|
|
|
25,228 |
|
|
(50.4 |
)% |
|
|
2,711 |
|
|
(75.7 |
)% |
Transaction and integration costs |
|
(101 |
) |
|
|
4,219 |
|
|
(102.4 |
)% |
|
|
— |
|
|
|
4,225 |
|
|
N/M |
|
|
|
101 |
|
|
N/M |
|
Settlement related costs |
|
— |
|
|
|
— |
|
|
N/M |
|
|
|
250 |
|
|
|
5,500 |
|
|
(95.5 |
)% |
|
|
(25 |
) |
|
N/M |
|
Adjusted G&A expense |
$ |
27,153 |
|
|
$ |
26,111 |
|
|
4.0 |
% |
|
$ |
102,582 |
|
|
$ |
111,982 |
|
|
(8.4 |
)% |
|
$ |
22,646 |
|
|
19.9 |
% |
Adjusted G&A expense % of revenue |
|
5.4 |
% |
|
|
5.7 |
% |
|
|
|
|
5.3 |
% |
|
|
6.3 |
% |
|
|
|
|
4.7 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
$ |
23,557 |
|
|
$ |
17,204 |
|
|
36.9 |
% |
|
$ |
73,348 |
|
|
$ |
78,567 |
|
|
(6.6 |
)% |
|
$ |
18,831 |
|
|
25.1 |
% |
Net income margin |
|
4.7 |
% |
|
|
3.7 |
% |
|
|
|
|
3.8 |
% |
|
|
4.4 |
% |
|
|
|
|
3.9 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITDA |
$ |
39,719 |
|
|
$ |
46,260 |
|
|
(14.1 |
)% |
|
$ |
139,075 |
|
|
$ |
169,142 |
|
|
(17.8 |
)% |
|
$ |
35,284 |
|
|
12.6 |
% |
Adjusted EBITDA margin |
|
8.0 |
% |
|
|
10.1 |
% |
|
|
|
|
7.1 |
% |
|
|
9.6 |
% |
|
|
|
|
7.3 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total paid trips (thousands) |
|
8,798 |
|
|
|
7,807 |
|
|
12.7 |
% |
|
|
34,559 |
|
|
|
30,795 |
|
|
12.2 |
% |
|
|
8,824 |
|
|
(0.3 |
)% |
Average monthly members (thousands) |
|
32,914 |
|
|
|
34,819 |
|
|
(5.5 |
)% |
|
|
33,648 |
|
|
|
34,203 |
|
|
(1.6 |
)% |
|
|
33,660 |
|
|
(2.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenue per member per month |
$ |
5.05 |
|
|
$ |
4.39 |
|
|
15.0 |
% |
|
$ |
4.83 |
|
|
$ |
4.31 |
|
|
12.1 |
% |
|
$ |
4.81 |
|
|
5.0 |
% |
Revenue per trip |
$ |
56.72 |
|
|
$ |
58.79 |
|
|
(3.5 |
)% |
|
$ |
56.47 |
|
|
$ |
57.43 |
|
|
(1.7 |
)% |
|
$ |
55.07 |
|
|
3.0 |
% |
Utilization |
|
8.9 |
% |
|
|
7.5 |
% |
|
|
|
|
8.6 |
% |
|
|
7.5 |
% |
|
|
|
|
8.7 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Purchased services per trip |
$ |
42.24 |
|
|
$ |
42.49 |
|
|
(0.6 |
)% |
|
$ |
42.15 |
|
|
$ |
41.14 |
|
|
2.5 |
% |
|
$ |
41.21 |
|
|
2.5 |
% |
Payroll and other per trip |
|
6.89 |
|
|
|
7.04 |
|
|
(2.1 |
)% |
|
|
7.32 |
|
|
|
7.16 |
|
|
2.2 |
% |
|
|
7.30 |
|
|
(5.6 |
)% |
Total service expense per trip |
$ |
49.13 |
|
|
$ |
49.53 |
|
|
(0.8 |
)% |
|
$ |
49.47 |
|
|
$ |
48.30 |
|
|
2.4 |
% |
|
$ |
48.51 |
|
|
1.3 |
% |
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison and, thus, the percentage has been removed. |
|
||||||||||||||||||||||||||||
Unaudited Key Statistical and Financial Data |
||||||||||||||||||||||||||||
(in thousands, except for statistical data) |
||||||||||||||||||||||||||||
|
Three months ended |
|
|
|
Year ended |
|
|
|
Three months ended |
|
|
|||||||||||||||||
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
QoQ % Change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
PCS Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Service revenue, net |
$ |
181,180 |
|
|
$ |
176,013 |
|
|
2.9 |
% |
|
$ |
715,615 |
|
|
$ |
667,674 |
|
|
7.2 |
% |
|
$ |
179,979 |
|
|
0.7 |
% |
Service expense |
|
144,283 |
|
|
|
140,642 |
|
|
2.6 |
% |
|
|
561,919 |
|
|
|
520,065 |
|
|
8.0 |
% |
|
|
143,078 |
|
|
0.8 |
% |
Gross profit |
$ |
36,897 |
|
|
$ |
35,371 |
|
|
4.3 |
% |
|
$ |
153,696 |
|
|
$ |
147,609 |
|
|
4.1 |
% |
|
$ |
36,901 |
|
|
— |
% |
Gross Margin |
|
20.4 |
% |
|
|
20.1 |
% |
|
|
|
|
21.5 |
% |
|
|
22.1 |
% |
|
|
|
|
20.5 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
G&A expense |
$ |
23,287 |
|
|
$ |
22,829 |
|
|
2.0 |
% |
|
$ |
86,767 |
|
|
$ |
91,365 |
|
|
(5.0 |
)% |
|
$ |
20,252 |
|
|
15.0 |
% |
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring and related costs |
|
— |
|
|
|
(6 |
) |
|
N/M |
|
|
|
— |
|
|
|
757 |
|
|
N/M |
|
|
|
— |
|
|
N/M |
|
Transaction and integration costs |
|
1,807 |
|
|
|
1,216 |
|
|
48.6 |
% |
|
|
2,688 |
|
|
|
7,550 |
|
|
(64.4 |
)% |
|
|
431 |
|
|
319.3 |
% |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
N/M |
|
|
|
— |
|
|
|
190 |
|
|
N/M |
|
|
|
— |
|
|
N/M |
|
Adjusted G&A expense |
$ |
21,480 |
|
|
$ |
21,619 |
|
|
(0.6 |
)% |
|
$ |
84,079 |
|
|
$ |
82,868 |
|
|
1.5 |
% |
|
$ |
19,821 |
|
|
8.4 |
% |
Adjusted G&A expense % of revenue |
|
11.9 |
% |
|
|
12.3 |
% |
|
|
|
|
11.7 |
% |
|
|
12.4 |
% |
|
|
|
|
11.0 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
$ |
1,235 |
|
|
$ |
2,349 |
|
|
(47.4 |
)% |
|
$ |
(122,170 |
) |
|
$ |
9,760 |
|
|
N/M |
|
|
$ |
3,142 |
|
|
(60.7 |
)% |
Net income margin |
|
0.7 |
% |
|
|
1.3 |
% |
|
|
|
|
(17.1 |
)% |
|
|
1.5 |
% |
|
|
|
|
1.7 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITDA |
$ |
15,805 |
|
|
$ |
16,559 |
|
|
(4.6 |
)% |
|
$ |
74,654 |
|
|
$ |
69,765 |
|
|
7.0 |
% |
|
$ |
17,631 |
|
|
(10.4 |
)% |
Adjusted EBITDA margin |
|
8.7 |
% |
|
|
9.4 |
% |
|
|
|
|
10.4 |
% |
|
|
10.4 |
% |
|
|
|
|
9.8 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total hours (thousands) |
|
7,074 |
|
|
|
6,842 |
|
|
3.4 |
% |
|
|
27,826 |
|
|
|
26,918 |
|
|
3.4 |
% |
|
|
6,995 |
|
|
1.1 |
% |
Revenue per hour |
$ |
25.61 |
|
|
$ |
25.73 |
|
|
(0.5 |
)% |
|
$ |
25.72 |
|
|
$ |
24.80 |
|
|
3.7 |
% |
|
$ |
25.73 |
|
|
(0.5 |
)% |
Service expense per hour |
$ |
20.40 |
|
|
$ |
20.56 |
|
|
(0.8 |
)% |
|
$ |
20.19 |
|
|
$ |
19.32 |
|
|
4.5 |
% |
|
$ |
20.45 |
|
|
(0.2 |
)% |
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison and, thus, the percentage has been removed. |
|
||||||||||||||||||||||||||||
Unaudited Key Statistical and Financial Data |
||||||||||||||||||||||||||||
(in thousands, except for statistical data) |
||||||||||||||||||||||||||||
|
Three months ended |
|
|
|
Year ended |
|
|
|
Three months ended |
|
|
|||||||||||||||||
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
QoQ % Change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
RPM Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Service revenue, net |
$ |
20,239 |
|
|
$ |
18,915 |
|
|
7.0 |
% |
|
$ |
77,941 |
|
|
$ |
68,277 |
|
|
14.2 |
% |
|
$ |
19,779 |
|
|
2.3 |
% |
Service expense |
|
6,896 |
|
|
|
6,678 |
|
|
3.3 |
% |
|
|
27,025 |
|
|
|
24,562 |
|
|
10.0 |
% |
|
|
6,934 |
|
|
(0.5 |
)% |
Gross profit |
$ |
13,343 |
|
|
$ |
12,237 |
|
|
9.0 |
% |
|
$ |
50,916 |
|
|
$ |
43,715 |
|
|
16.5 |
% |
|
$ |
12,845 |
|
|
3.9 |
% |
Gross Margin |
|
65.9 |
% |
|
|
64.7 |
% |
|
|
|
|
65.3 |
% |
|
|
64.0 |
% |
|
|
|
|
64.9 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
G&A expense |
$ |
6,190 |
|
|
$ |
5,636 |
|
|
9.8 |
% |
|
$ |
22,971 |
|
|
$ |
23,156 |
|
|
(0.8 |
)% |
|
$ |
5,685 |
|
|
8.9 |
% |
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring and related costs |
|
— |
|
|
|
— |
|
|
N/M |
|
|
|
— |
|
|
|
63 |
|
|
N/M |
|
|
|
— |
|
|
N/M |
|
Transaction and integration costs |
|
16 |
|
|
|
174 |
|
|
(90.8 |
)% |
|
|
86 |
|
|
|
2,927 |
|
|
(97.1 |
)% |
|
|
22 |
|
|
(27.3 |
)% |
Stock-based compensation |
|
— |
|
|
|
— |
|
|
N/M |
|
|
|
— |
|
|
|
86 |
|
|
N/M |
|
|
|
— |
|
|
N/M |
|
Adjusted G&A expense |
$ |
6,174 |
|
|
$ |
5,462 |
|
|
13.0 |
% |
|
$ |
22,885 |
|
|
$ |
20,080 |
|
|
14.0 |
% |
|
$ |
5,663 |
|
|
9.0 |
% |
Adjusted G&A expense % of revenue |
|
30.5 |
% |
|
|
28.9 |
% |
|
|
|
|
29.4 |
% |
|
|
29.4 |
% |
|
|
|
|
28.6 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
$ |
10 |
|
|
$ |
672 |
|
|
(98.5 |
)% |
|
$ |
(43,819 |
) |
|
$ |
497 |
|
|
N/M |
|
|
$ |
707 |
|
|
(98.6 |
)% |
Net income margin |
|
— |
% |
|
|
3.6 |
% |
|
|
|
|
(56.2 |
)% |
|
|
0.7 |
% |
|
|
|
|
3.6 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted EBITDA |
$ |
7,169 |
|
|
$ |
6,775 |
|
|
5.8 |
% |
|
$ |
28,031 |
|
|
$ |
23,635 |
|
|
18.6 |
% |
|
$ |
7,182 |
|
|
(0.2 |
)% |
Adjusted EBITDA margin |
|
35.4 |
% |
|
|
35.8 |
% |
|
|
|
|
36.0 |
% |
|
|
34.6 |
% |
|
|
|
|
36.3 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average monthly members (thousands) |
|
253 |
|
|
|
236 |
|
|
7.2 |
% |
|
|
244 |
|
|
|
210 |
|
|
16.2 |
% |
|
|
247 |
|
|
2.4 |
% |
Revenue per member per month |
$ |
26.67 |
|
|
$ |
26.72 |
|
|
(0.2 |
)% |
|
$ |
26.62 |
|
|
$ |
27.09 |
|
|
(1.7 |
)% |
|
$ |
26.69 |
|
|
(0.1 |
)% |
Service expense per member per month |
$ |
9.09 |
|
|
$ |
9.43 |
|
|
(3.6 |
)% |
|
$ |
9.23 |
|
|
$ |
9.75 |
|
|
(5.3 |
)% |
|
$ |
9.36 |
|
|
(2.9 |
)% |
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison, thus, the percentage has been removed. |
|
||||||||||||||||||||||||||||
Unaudited Key Statistical and Financial Data |
||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||
|
Three months ended |
|
|
|
Year ended |
|
|
|
Three months ended |
|
|
|||||||||||||||||
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
QoQ % Change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Corporate and Other Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
G&A expense |
$ |
18,282 |
|
|
$ |
17,399 |
|
|
5.1 |
% |
|
$ |
79,471 |
|
|
$ |
60,715 |
|
|
30.9 |
% |
|
$ |
18,772 |
|
|
(2.6 |
)% |
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring and related costs |
|
2,575 |
|
|
|
— |
|
|
N/M |
|
|
|
24,181 |
|
|
|
950 |
|
|
N/M |
|
|
|
6,205 |
|
|
(58.5 |
)% |
Transaction and integration costs |
|
74 |
|
|
|
2,050 |
|
|
(96.4 |
)% |
|
|
1,908 |
|
|
|
9,269 |
|
|
(79.4 |
)% |
|
|
605 |
|
|
(87.8 |
)% |
Settlement related costs |
|
1,194 |
|
|
|
3,564 |
|
|
(66.5 |
)% |
|
|
9,877 |
|
|
|
4,064 |
|
|
143.0 |
% |
|
|
1,474 |
|
|
(19.0 |
)% |
Stock-based compensation(1) |
|
2,016 |
|
|
|
1,842 |
|
|
9.4 |
% |
|
|
5,501 |
|
|
|
5,792 |
|
|
(5.0 |
)% |
|
|
1,690 |
|
|
19.3 |
% |
Adjusted G&A expense |
$ |
12,423 |
|
|
$ |
9,943 |
|
|
24.9 |
% |
|
$ |
38,004 |
|
|
$ |
40,640 |
|
|
(6.5 |
)% |
|
$ |
8,798 |
|
|
41.2 |
% |
Adjusted G&A expense % of consolidated revenue |
|
1.8 |
% |
|
|
1.5 |
% |
|
|
|
|
1.4 |
% |
|
|
1.6 |
% |
|
|
|
|
1.3 |
% |
|
|
|
Three months ended |
|
|
|
Year ended |
|
|
|
Three months ended |
|
|
|||||||||||||||||
|
|
|
|
|
% Change |
|
|
|
|
|
% Change |
|
|
|
QoQ % Change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
G&A expense |
$ |
75,469 |
|
|
$ |
90,063 |
|
|
(16.2 |
)% |
|
$ |
304,564 |
|
|
$ |
322,171 |
|
|
(5.5 |
)% |
|
$ |
70,142 |
|
|
7.6 |
% |
G&A expense adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Restructuring and related costs |
|
3,233 |
|
|
|
13,863 |
|
|
(76.7 |
)% |
|
|
36,704 |
|
|
|
26,998 |
|
|
36.0 |
% |
|
|
8,916 |
|
|
(63.7 |
)% |
Transaction and integration costs |
|
1,796 |
|
|
|
7,659 |
|
|
(76.6 |
)% |
|
|
4,682 |
|
|
|
23,971 |
|
|
(80.5 |
)% |
|
|
1,159 |
|
|
55.0 |
% |
Settlement related costs |
|
1,194 |
|
|
|
3,564 |
|
|
(66.5 |
)% |
|
|
10,127 |
|
|
|
9,564 |
|
|
5.9 |
% |
|
|
1,449 |
|
|
(17.6 |
)% |
Stock-based compensation(1) |
|
2,016 |
|
|
|
1,842 |
|
|
9.4 |
% |
|
|
5,501 |
|
|
|
6,068 |
|
|
(9.3 |
)% |
|
|
1,690 |
|
|
19.3 |
% |
Adjusted G&A expense |
$ |
67,230 |
|
|
$ |
63,135 |
|
|
6.5 |
% |
|
$ |
247,550 |
|
|
$ |
255,570 |
|
|
(3.1 |
)% |
|
$ |
56,928 |
|
|
18.1 |
% |
Adjusted G&A expense % of revenue |
|
9.6 |
% |
|
|
9.7 |
% |
|
|
|
|
9.0 |
% |
|
|
10.2 |
% |
|
|
|
|
8.3 |
% |
|
|
(1) |
Includes cash settled equity balances. |
|
N/M - Not Meaningful. Certain figures in the tables above do not provide meaningful percentage comparison and, thus, the percentage has been removed. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222760257/en/
Investor Relations Contact
Head of Investor Relations
Kevin.Ellich@modivcare.com
Source: