ModivCare Inc. (MODV) Misses Q1 EPS by 29c, Revenues Miss

ModivCare Inc. (NASDAQ: MODV) reported Q1 EPS of $1.31, $0.29 worse than the analyst estimate of $1.60. Revenue for the quarter came in at $453.6 million versus the consensus estimate of $483.06 million.

First Quarter 2021 Highlights:

• Revenue of $453.6 million, a 23.5% increase as compared to $367.3 million in Q1 2020
• Income from continuing operations, net of tax, of $18.9 million or $1.31 per diluted common share
• Adjusted EBITDA of $48.0 million, Adjusted Net Income of $27.5 million and Adjusted EPS of $1.92
• Net cash provided by operating activities during the quarter of $134.6 million
• Cash and cash equivalents of $299.6 million at March 31, with $500.0 million debt outstanding related to the Senior Unsecured Notes
• Matrix, on a standalone basis, achieved net income of $8.6 million and Adjusted EBITDA of $32.2 million

Daniel E. Greenleaf, President and Chief Executive Officer, said, “ModivCare’s first quarter Adjusted EBITDA of $48.0 million exceeded the prior year comparable figure, reflecting higher Adjusted EBITDA in both our NEMT and Personal Care segments. In NEMT, we benefited from lower operating costs under our six-pillar strategy, expanded membership, a full quarter contribution from National MedTrans, and lower utilization under capitated contracts. Our Personal Care segment benefited from a full quarter contribution from Simplura Health Group, which we acquired in November 2020.”

Mr. Greenleaf continued, “Looking ahead, we will continue to deploy technological and operational initiatives designed to elevate the patient experience and further our market leading position in the non-emergency medical transportation industry. Yesterday we announced the acquisition of WellRyde, a leading technology provider of Advanced Transportation Management Systems (ATMS) software enabling optimized routing, automated trip assignments and billing, and real-time network monitoring. WellRyde’s technology will seamlessly integrate into our Circulation and LCAD platforms, fast-tracking our “Go Digital” initiative and accelerating our efforts to build the largest digital non-emergency medical transportation network in the nation. We will also continue to evaluate external growth opportunities in the highly fragmented $55 billion personal care sector. Simplura’s distinguished service model and stellar technology platform provide us an excellent foundation to build upon. By addressing the social determinants of health through a suite of supportive care solutions, we aim to deepen customer relationships, dismantle barriers to care, and build substantial value for shareholders.”

Mr. Greenleaf concluded, “Finally, Matrix commenced 2021 on a very positive note, with first quarter revenue more than doubling to $124 million and adjusted EBITDA more than tripling to $32.2 million compared to the respective figures for the prior year period, reflecting continued expansion of its clinical solutions business and a rebound in on-site visits in its risk assessment business.”

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

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