ModivCare Inc. (MODV) Misses Q4 EPS by 54c, Revenues Miss

ModivCare Inc. (NASDAQ: MODV) reported Q4 EPS of $0.98, $0.54 worse than the analyst estimate of $1.52. Revenue for the quarter came in at $398.5 million versus the consensus estimate of $395.5 million.

Fourth Quarter 2020 Highlights:

• Revenue of $398.5 million
• Loss from continuing operations, net of tax, was $2.9 million, or $0.21 per common share, primarily a result of non-recurring bond financing and acquisition-related costs
• Adjusted EBITDA of $41.6 million, Adjusted Net Income of $13.9 million and Adjusted EPS of $0.98 per diluted common share
• Completed $500 million offering of Senior Unsecured Notes
• Closed acquisition of Simplura Health Group ("Simplura"), creating personal care segment
• Net cash provided by operating activities during the quarter of $61.2 million, finishing the year with cash and cash equivalents of $183.3 million
• The company paid down its $75 million revolver balance, originally related to the acquisition of Simplura

Daniel E. Greenleaf, President and Chief Executive Officer, said, “ModivCare’s fourth quarter Adjusted EBITDA of $41.6 million exceeded the prior year comparable figure primarily due to operational improvements driven by our six-pillar strategy, a full quarter contribution from National MedTrans, contribution from Simplura Health Group, which we acquired in November 2020, and lower utilization under our capitated contracts. The fourth quarter capped off a year of significant transformation for our organization. In 2020, we upgraded our senior leadership team and supporting talent, sharpened our focus on elevating the patient experience, advanced key technology and centers of excellence optimization initiatives, completed two value-creating acquisitions, simplified the Company’s capital structure by eliminating the convertible preferred shares, and laid the groundwork for our successful rebranding to ModivCare in January 2021.”

Mr. Greenleaf continued, “Looking ahead, we expect to reap a return on the operational and technology investments we are making in our non-emergency medical transportation business (NEMT). As the industry’s market leader, we are well positioned for longer term organic growth supported by favorable industry tailwinds, such as Medicaid and Medicare Advantage expansion, the codification of the NEMT benefit which compels states to offer the benefit, and adjacent market opportunities, notably our food delivery initiatives. In personal care, Simplura is an excellent growth platform that we intend to build upon through a combination of strategic acquisitions and organic initiatives. Together, our growing businesses share a common mission of addressing the social determinants of health to enhance the patient experience, enable greater access to care, reduce costs and improve health outcomes. We look forward to advancing this mission while building significant value for our shareholders in the years to come. Additionally, Matrix made significant progress in 2020, and we are excited about the continuing momentum and interest in their Clinical Solutions and Health Assessments business. As companies focus on healthcare access, wellness, and improving outcomes post-pandemic, we expect this momentum and growth to continue in 2021.”

“Despite the unprecedented challenges of the COVID-19 pandemic, 2020 represented a year of exceptional growth for Matrix,” added Keith Henthorne, Chairman & CEO of Matrix Medical Networks. “Our core assets of an expansive community-based clinical network, nationwide fleet of mobile health clinics and advanced technology platform allowed us to effectively serve our long-standing health plan clients and support their members with needed clinical services both in-home and via telehealth. Additionally, we were able to accelerate our product roadmap to launch several sustainable business lines including worksite-based clinical solutions, decentralized clinical trials, and clinical lab services. We were proud to serve a variety of new clients with these high-growth business lines, including some of the nation’s largest and most respected retail, food, entertainment and pharmaceutical companies.”

For earnings history and earnings-related data on ModivCare Inc. (MODV) click here.

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