MODV - ModivCare Inc. (MODV) Q1 2024 Earnings Call Transcript
2024-05-03 13:09:08 ET
ModivCare Inc. (MODV)
Q1 2024 Earnings Conference Call
May 03, 2024 08:30 AM ET
Company Participants
Kevin Ellich - Head of Investor Relations
Heath Sampson - President & Chief Executive Officer
Barbara Gutierrez - Chief Financial Officer
Conference Call Participants
Bob Labick - CJS Securities
Raj Kumar - Stephens
Taji Phillips - Jefferies
Pito Chickering - Deutsche Bank
Rishi Parekh - JPMorgan
Mike Petusky - Barrington Research
Presentation
Operator
Good morning and welcome to ModivCare's First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note that this conference call is being recorded.
I will now turn the call over to Kevin Ellich, Head of Investor Relations. Mr. Ellich, you may now begin.
Kevin Ellich
Good morning and thank you for joining ModivCare's first quarter 2024 earnings conference call and webcast. Joining me today is Heath Sampson, ModivCare's President and Chief Executive Officer; and Barbara Gutierrez, ModivCare's Chief Financial Officer.
Before we get started, I want to remind everyone that during today's call, management will make forward-looking statements under the Private Securities Litigation Reform Act. These statements involve risks, uncertainties and other factors that may cause actual results or events to differ materially from expectations. Information regarding these factors is contained in today's press release and in the company's filings with the SEC. We will also discuss non-GAAP financial measures to provide additional information to investors. A definition of these non-GAAP financial measures and to the extent applicable, a reconciliation to their most directly comparable GAAP financial measures is included in our press release and Form 8-K.
A replay of this conference call will be available approximately one hour after today's call concludes and will be posted on our website, modivcare.com. This morning, Heath will begin with opening remarks. Barbara will review our financial results and guidance. And then we'll open the call for questions.
With that, I'll turn the call over to Heath.
Heath Sampson
Good morning and thank you for joining our first quarter 2024 earnings call. I'm pleased to report that in the first quarter revenue increased 3% and adjusted EBITDA of $32 million was in line with our guidance range. These results are the outcome of our continued strategic transformation efforts. The progress made on our initiatives provides conviction that we can achieve our financial targets and exit the fourth quarter of 2024 with an expected run-rate adjusted EBITDA between $220 million and $230 million and a free cash flow conversion of 40% to 50% excluding the impact from our expected debt refinancing.
Over the past two years, our focus on operational improvements, technology advancements and sales has underpinned our no margin no mission culture. This has significantly enhanced our differentiated competitive positioning. As we complete this transformation in 2024, the tangible improvements in our KPI.s are now being reflected in our financial results with an improving cost structure as well as growing sales Additionally, Medicaid redetermination is in line to slightly better than expected and concluding in the second quarter, providing line of sight of our earnings trajectory and cash flow....
ModivCare Inc. (MODV) Q1 2024 Earnings Call Transcript