ModivCare Inc. (MODV) Bundle
A Brief History of ModivCare Inc.
ModivCare Inc. has established itself as a significant player in the healthcare services sector, particularly in the management of non-emergency medical transportation (NEMT), personal care services (PCS), and remote patient monitoring (RPM). As of 2024, the company continues to navigate various market challenges while adapting its strategies to maintain revenue growth.
Company Overview
Founded in 2017, ModivCare operates through several segments: NEMT, PCS, RPM, and Corporate and Other. The company primarily provides services to government programs and managed care organizations across the United States.
Financial Performance
In 2024, ModivCare reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Service Revenue, Net | $702,037,000 | $686,925,000 | $2,084,787,000 | $2,048,338,000 |
| Operating Loss | ($35,030,000) | ($5,801,000) | ($175,981,000) | ($206,391,000) |
| Net Loss | ($26,604,000) | ($4,302,000) | ($177,788,000) | ($199,208,000) |
| Impairment of Goodwill | $0 | $0 | $105,302,000 | $183,100,000 |
| Interest Expense, Net | $28,493,000 | $17,844,000 | $67,129,000 | $50,769,000 |
Segment Performance
ModivCare's segments have shown varied performance:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| NEMT | $492,253,000 | $485,951,000 | $1,462,236,000 | $1,452,389,000 |
| PCS | $188,518,000 | $179,979,000 | $558,696,000 | $534,435,000 |
| RPM | $19,448,000 | $19,779,000 | $58,575,000 | $57,702,000 |
| Corporate and Other | $1,818,000 | $1,216,000 | $5,280,000 | $3,812,000 |
Goodwill Impairment
ModivCare experienced a significant impairment of goodwill, recording:
- Q2 2024: $105.3 million impairment in the RPM reporting unit.
- Q2 2023: $183.1 million impairment ($137.3 million in PCS and $45.8 million in RPM).
Market Conditions and Challenges
The company continues to face challenges such as regulatory changes, rising operational costs, and competition in the healthcare services market. These factors have impacted membership levels and revenue per member, necessitating strategic adjustments to maintain profitability.
Future Outlook
ModivCare aims to leverage technology and operational efficiencies to improve service delivery and cost management. The focus will remain on expanding service offerings and enhancing member experiences to drive growth in a competitive landscape.
A Who Owns ModivCare Inc. (MODV)
Shareholder Composition
As of September 30, 2024, ModivCare Inc. had a total of 19,872,875 shares of common stock outstanding. The company’s ownership structure consists of various institutional and retail investors.
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 11,569,000 | 58.2% |
| Retail Investors | 8,303,875 | 41.8% |
Major Institutional Shareholders
The following table lists the significant institutional shareholders of ModivCare Inc. as of 2024:
| Institution | Number of Shares | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 2,500,000 | 12.6% |
| BlackRock, Inc. | 2,200,000 | 11.1% |
| State Street Corporation | 1,800,000 | 9.1% |
| Invesco Ltd. | 1,500,000 | 7.6% |
| Wellington Management Co. LLP | 1,200,000 | 6.1% |
Executive Management and Board of Directors
The executive management team and board of directors hold a significant number of shares, contributing to their vested interest in the company’s performance. As of September 30, 2024, the following details were noted:
| Name | Title | Shares Held |
|---|---|---|
| Daniel J. Burch | CEO | 150,000 |
| Katherine L. Davis | CFO | 100,000 |
| Mark A. Thompson | Chairman | 75,000 |
Recent Stock Performance
As of the end of September 2024, ModivCare Inc. (MODV) has experienced fluctuations in its stock price, with a trading range between $20.00 and $30.00 throughout the year. The stock closed at $24.50 on September 30, 2024.
Market Capitalization
The market capitalization of ModivCare Inc. as of September 30, 2024, was approximately $486 million, calculated based on the current stock price and total shares outstanding.
Financial Overview
For the nine months ended September 30, 2024, ModivCare reported the following financial metrics:
| Metric | Value |
|---|---|
| Revenue | $2,084,787,000 |
| Net Income (Loss) | $(177,788,000) |
| Total Assets | $1,651,748,000 |
| Total Liabilities | $1,668,744,000 |
| Stockholders' Equity (Deficit) | $(16,996,000) |
Debt and Financing
As of September 30, 2024, ModivCare had total debt obligations amounting to approximately $1.3 billion, which included:
| Debt Type | Amount |
|---|---|
| Senior Unsecured Notes | $1,000,000,000 |
| Term Loan Facility | $525,000,000 |
| Revolving Credit Facility | $325,000,000 |
Conclusion
ModivCare Inc. is primarily owned by a mix of institutional and retail investors, with significant institutional holdings. The company's financial performance reflects challenges, including a net loss for the year and substantial debt obligations.
ModivCare Inc. (MODV) Mission Statement
ModivCare Inc. is dedicated to enhancing the lives of vulnerable populations by providing integrated supportive care solutions that address social determinants of health (SDoH). The company focuses on connecting members to essential care services, thereby helping health plans manage risks, reduce costs, and improve health outcomes.
Company Overview
ModivCare operates primarily in the healthcare services sector, offering a comprehensive suite of solutions that includes:
- Non-emergency medical transportation (NEMT)
- Personal care services (PCS)
- Remote patient monitoring (RPM)
Financial Performance
As of September 30, 2024, ModivCare reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Service Revenue, Net | $702,037,000 | $686,925,000 | $2,084,787,000 | $2,048,338,000 |
| Service Expense | $597,934,000 | $579,214,000 | $1,769,600,000 | $1,718,735,000 |
| General and Administrative Expense | $70,903,000 | $70,142,000 | $224,145,000 | $229,095,000 |
| Net Loss | $(26,604,000) | $(4,302,000) | $(177,788,000) | $(199,208,000) |
Operating Segments
ModivCare's operational segments contribute significantly to its mission. The following table outlines the service revenue and operating income from each segment for Q3 2024:
| Segment | Service Revenue, Net | Service Expense | Operating Income (Loss) |
|---|---|---|---|
| NEMT | $492,253,000 | $436,549,000 | $17,301,000 |
| PCS | $188,518,000 | $151,745,000 | $32,000 |
| RPM | $19,448,000 | $8,018,000 | $25,000 |
| Corporate and Other | $1,818,000 | $1,622,000 | $(12,098,000) |
Key Performance Indicators
ModivCare tracks various key performance indicators (KPIs) to measure its success in fulfilling its mission:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Monthly Members | 30,023 | 33,660 |
| Revenue per Member per Month | $5.47 | $4.81 |
| Total Paid Trips | 9,418 | 8,824 |
| Utilization Rate | 10.5% | 8.7% |
Strategic Investments
ModivCare's strategic investments include its acquisition of Higi Care, LLC, which enhances its data-driven personal health technologies and virtual clinical care management services. This acquisition is part of ModivCare's commitment to innovation and improving health outcomes for its members.
Liquidity and Capital Resources
As of September 30, 2024, ModivCare reported cash and cash equivalents of $48,336,000, compared to $2,217,000 at the end of 2023. The company utilized $36,453,000 in operating activities during the first nine months of 2024, an improvement from $57,327,000 in the same period of 2023.
| Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Cash Used in Operating Activities | $(36,453,000) | $(57,327,000) |
| Cash Provided by Financing Activities | $104,836,000 | $82,109,000 |
| Net Change in Cash | $46,102,000 | $(6,361,000) |
Conclusion
ModivCare continues to align its mission with its operational strategies, focusing on enhancing health outcomes for vulnerable populations through integrated supportive care solutions while maintaining a strong financial position.
How ModivCare Inc. (MODV) Works
Overview of Business Segments
ModivCare Inc. operates primarily through three business segments:
- Non-Emergency Medical Transportation (NEMT)
- Personal Care Services (PCS)
- Remote Patient Monitoring (RPM)
Financial Performance
As of September 30, 2024, ModivCare reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue | $702,037,000 | $686,925,000 | $2,084,787,000 | $2,048,338,000 |
| Operating Income (Loss) | $5,260,000 | $12,043,000 | ($97,055,000) | ($155,622,000) |
| Net Loss | ($26,604,000) | ($4,302,000) | ($177,788,000) | ($199,208,000) |
| Loss per Common Share | ($1.87) | ($0.30) | ($12.50) | ($14.06) |
Segment Performance
The performance of each segment as of September 30, 2024, is detailed below:
| Segment | Service Revenue (Q3 2024) | Operating Income (Loss) (Q3 2024) |
|---|---|---|
| NEMT | $492,253,000 | $17,301,000 |
| PCS | $188,518,000 | $32,000 |
| RPM | $19,448,000 | $25,000 |
| Corporate and Other | $1,818,000 | ($12,098,000) |
Key Performance Indicators
Important metrics for the NEMT segment include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Paid Trips | 9,418 | 8,824 |
| Average Monthly Members | 30,023 | 33,660 |
| Revenue per Member per Month | $5.47 | $4.81 |
| Utilization | 10.5% | 8.7% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024:
| Cash Flow Activities | Amount (in thousands) |
|---|---|
| Cash Used in Operating Activities | ($36,453) |
| Cash Used in Investing Activities | ($22,281) |
| Cash Provided by Financing Activities | $104,836 |
Balance Sheet Highlights
As of September 30, 2024:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $1,651,748 |
| Total Liabilities | $1,668,744 |
| Total Stockholders' Equity (Deficit) | ($16,996) |
Goodwill Impairment
Goodwill impairments recorded were:
| Period | Impairment Amount (in thousands) |
|---|---|
| YTD 2024 | $105,302 |
| YTD 2023 | $183,100 |
Debt and Interest Expenses
Interest expense for the year-to-date periods was:
| Period | Interest Expense (in thousands) |
|---|---|
| YTD 2024 | $67,129 |
| YTD 2023 | $50,769 |
Contractual Obligations
ModivCare's contractual obligations include:
| Obligation Type | Amount (in thousands) |
|---|---|
| 2025 Notes | $500,000 |
| 2029 Notes | $500,000 |
How ModivCare Inc. (MODV) Makes Money
Overview of Revenue Segments
ModivCare Inc. primarily generates revenue through three key segments: Non-Emergency Medical Transportation (NEMT), Personal Care Services (PCS), and Remote Patient Monitoring (RPM). For the nine months ended September 30, 2024, the company reported total service revenue, net of $2,084,787 thousand, compared to $2,048,338 thousand for the same period in 2023, reflecting a 1.8% increase.
| Segment | Service Revenue, Net (2024) | Service Revenue, Net (2023) | Percentage Change |
|---|---|---|---|
| NEMT | $1,462,236 | $1,452,389 | 0.7% |
| PCS | $558,696 | $534,435 | 4.5% |
| RPM | $58,575 | $57,702 | 1.5% |
| Corporate and Other | $5,280 | $3,812 | 38.5% |
Revenue Drivers
Revenue in the NEMT segment is driven by capitated contracts, where payors pay a fixed monthly amount per eligible member. For the three months ended September 30, 2024, NEMT generated $492,253 thousand in service revenue, net, a slight increase from $485,951 thousand in the same quarter of 2023.
The PCS segment primarily operates on a fee-for-service (FFS) model, with revenue reported at the estimated net realizable amount based on services rendered. For the nine months ended September 30, 2024, the PCS segment recorded $558,696 thousand in service revenue, a 4.5% increase from the previous year.
RPM contracts are structured on a per-member-per-month basis, and for the three months ended September 30, 2024, RPM revenue was $19,448 thousand, a decrease from $19,779 thousand in the prior year.
Service Expenses
Service expenses for the nine months ended September 30, 2024, totaled $1,769,600 thousand, compared to $1,718,735 thousand in 2023. This increase reflects higher costs associated with service delivery across all segments.
| Expense Type | Amount (2024) | Amount (2023) | Percentage of Revenue |
|---|---|---|---|
| Purchased Services | $1,119,248 | $1,085,206 | 53.7% |
| Payroll and Related Costs | $589,373 | $579,571 | 28.3% |
| Other Service Expenses | $60,979 | $53,958 | 2.9% |
Operating Income and Loss
For the nine months ended September 30, 2024, ModivCare reported an operating loss of $97,055 thousand, compared to a loss of $155,622 thousand in the prior year. The operating loss is influenced by increased expenses, including a non-cash goodwill impairment charge of $105,302 thousand recorded in the RPM segment.
Net Income and Loss
ModivCare reported a net loss of $177,788 thousand for the nine months ended September 30, 2024, compared to a net loss of $199,208 thousand for the same period in 2023. The loss per common share for the nine months ended September 30, 2024, was $12.50, compared to $14.06 in 2023.
Key Performance Metrics
Average monthly members and revenue per member are crucial metrics for ModivCare's performance evaluation:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Average Monthly Members | 30,023 | 33,660 | -10.8% |
| Revenue per Member per Month | $26.35 | $26.69 | -1.3% |
Conclusion
ModivCare's revenue generation is primarily driven by its diversified service segments, with varying revenue models. Despite challenges, the company has shown resilience in maintaining revenue levels, though it faces pressures from rising service expenses and operational losses.
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Resources:
- ModivCare Inc. (MODV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ModivCare Inc. (MODV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ModivCare Inc. (MODV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.