Modivcare Provides Financial Update
16 Setembro 2024 - 7:00AM
Business Wire
Modivcare Inc. (the “Company” or “Modivcare”) (Nasdaq: MODV), a
technology-enabled healthcare services company providing a platform
of integrated supportive care solutions focused on improving health
outcomes, today addressed its recent filings with the U.S.
Securities and Exchange Commission (“SEC”) and announced adjusted
guidance.
On September 12, 2024, the Company filed a Form S-3 shelf
registration statement with the SEC, as well as a Form 8-K,
providing additional information. Once declared effective by the
SEC, the Form S-3 will provide the Company with flexibility to
raise capital as needed over the next three years.
The Company does not plan to issue equity at this time. The
Company is focused on seeking near-term covenant relief under its
revolving credit facility to address potential delays in contract
receivable collections. Advanced discussions with the Company’s
bank group have been collaborative and supportive.
Contract Receivables
- Modivcare remains confident in collecting outstanding
receivables from its managed care organizations (“MCOs”) and state
payor customers.
- As previously disclosed, the Company has experienced delays in
the timely collection of approximately $60 million of its
outstanding $159.3 million in NEMT segment current contract
receivables, primarily from MCO customers, as of June 30,
2024.
- This situation is primarily driven by the impacts of Medicaid
redeterminations and the resulting increase in utilization under
its shared-risk contracts.
- The Company expects to enter 2025 with aligned prepayment rates
and does not anticipate the situation to persist as utilization
patterns continue to stabilize.
Adjusted Guidance
The Company revised its 2024 Adjusted EBITDA guidance range from
$185–$195 million to $170–$180 million, primarily due to NEMT
segment pricing accommodations made to strategically retain and
expand key customer relationships.
Additionally, the Company provided guidance for Adjusted EBITDA
growth in excess of 10% in 2025, based on the updated 2024
guidance.
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,” “anticipate,”
“plan,” “seek,” “believe,” “estimate,” “intend,” and similar words
indicating possible future expectations, events or actions. The
guidance discussed herein constitutes forward-looking statements.
Such forward-looking statements are based on current expectations,
assumptions, estimates and projections about the Company’s business
and its industry, and are not guarantees of future performance.
These statements are subject to a number of known and unknown
risks, uncertainties and other factors, many of which are beyond
the Company’s 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; inability to
control reimbursement rates received for services; changes in the
funding, financial viability or relationships with payors; delays
in collection, or non-collection, of accounts receivable; inability
to attract and retain qualified employees; contracts not surviving
until the end of their stated terms, or not being renewed or
extended; failure to compete effectively in the marketplace; not
being awarded contracts through the government’s requests for
proposals process, or awarded contracts not being profitable; any
failure to satisfy contractual obligations or to maintain existing
pledged performance and payment bonds; any failure to estimate
accurately the cost of performing contracts; not successfully
executing on strategies in the face of competition; any inability
to maintain relationships with existing patient referral sources;
changes in the case-mix of our personal care patients, or changes
in payor mix or payment methodologies; loss of existing favorable
managed care contracts; changes in budgetary priorities of the
government entities or private insurance programs that fund
services; existing or future debt agreements containing
restrictions, financial covenants and cross-default provisions that
limit the Company’s flexibility in operating our business;
substantial indebtedness and ability to generate or distribute
sufficient cash to service indebtedness; any default under or the
expiration of the Company’s existing credit agreement or any loss
of available financing alternatives; ability to incur substantial
additional indebtedness or to issue additional debt or equity and
any stock price volatility.
The Company has provided additional information about the
foregoing and other risks facing its business in its annual report
on Form 10-K and subsequent periodic and current reports filed with
the SEC that could impact future performance. You are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date the statement was made and are expressly
qualified in their entirety by the cautionary statements set forth
herein and in the Company’s filings with the SEC, which you should
read in their entirety before making an investment decision with
respect to the Company’s securities. The Company undertakes no
obligation to update or revise any forward-looking statements
contained in this release, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
Non-GAAP Financial Measures and Adjustments
In addition to the financial measures prepared in accordance
with generally accepted accounting principles in the United States
of America ("GAAP"), the information contained herein may include
presentations for the Company and its segments (as noted and
applicable) of EBITDA and Adjusted EBITDA, which is a non-GAAP
financial measures considered by management to be performance
measures. EBITDA is defined as net income (loss) before: (1)
interest expense, net; (2) provision (benefit) for income taxes;
and (3) depreciation and amortization. Adjusted EBITDA is
calculated as EBITDA before (as applicable): (1) restructuring and
related costs; (2) transaction and integration costs; (3)
settlement related costs; (4) stock-based compensation; (5)
impairment of goodwill; and (6) equity in net (income) loss of
investee, net of tax.
The Company does not provide a reconciliation of forward-looking
non-GAAP financial measure (Adjusted EBITDA) to its most directly
comparable GAAP financial measure (net income (loss)) on a
forward-looking basis because it is unable to predict items
contained in the GAAP financial measure without unreasonable
efforts. The Company’s non-GAAP financial measures may not provide
information that is directly comparable to that provided by other
companies in its industry, as other companies 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 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.
About Modivcare
Modivcare Inc. ("Modivcare" or the "Company") is a
technology-enabled healthcare services company that provides a
suite of integrated supportive care solutions for public and
private payors and their members. The Company’s value-based
solutions address the social determinants of health (SDoH) by
connecting members to essential care services. By doing so,
Modivcare helps health plans manage risks, reduce costs, and
improve health outcomes. Modivcare is a provider of non-emergency
medical transportation (NEMT), personal care services (PCS), and
remote patient monitoring solutions (RPM). The company also holds a
minority equity investment in CCHN Holdings (d/b/a Matrix Medical
Network), an independent, at scale provider of comprehensive
in-home health assessments in the U.S. To learn more about
Modivcare, please visit www.modivcare.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240916259605/en/
Investors Kevin Ellich Head of Investor Relations
Kevin.ellich@modivcare.com
ModivCare (NASDAQ:MODV)
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