ModivCare Inc. (MODV) Q4 2024 Earnings Call Transcript

2025-03-06 21:21:09 ET

ModivCare Inc. (MODV)

Q4 2024 Earnings Conference Call

March 06, 2025 5:00 PM ET

Company Participants

Heath Sampson – President and Chief Executive Officer

Barbara Gutierrez – Chief Financial Officer

Conference Call Participants

Megan Holton – Jefferies

Pito Chickering – Deutsche Bank

Lee Jagoda – CJS Securities

Raj Kumar – Stephens

Presentation

Operator

Good day everyone and welcome to Modiv's Fourth Quarter and Full Year 2024 Financial Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note that this conference call is being recorded. Today's speakers will be Heath Sampson Modiv's President and Chief Executive Officer; and Barbara Gutierrez, Modiv's Chief Financial Officer.

Before we get started, I want to remind everyone that during today’s call, management will be making forward-looking statements under the Private Securities Litigation Reform Act. These statements involve risks, uncertainties and other factors that may cause the 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 the applicable reconciliations to their most direct 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 afternoon, Heath Sampson will begin with opening remarks, Barbara Gutierrez will review our financial results and guidance then we'll open the call for questions.

With that, I’ll turn the call over to Heath.

Heath Sampson

Thank you, operator, and thank you all for joining us today to review our fourth quarter and full year 2024 results. I'm joined today by Barb Gutierrez, our Chief Financial Officer. Today, I'll begin by outlining the current state of our business and reviewing our Q4 and full year 2024 performance. Then I'll walk through the recent steps to strengthen our capital position before diving into key updates and value drivers across our business segments. After that, I'll turn the call over to Barb, who will provide details on our capital raise, full year performance and Q4 results before we open the call for questions.

2024 was a perfect storm for payer services companies focused on Medicaid and Medicare advantage. This industry faced unprecedented disruption from Medicaid redetermination, increased healthcare utilization and MA reimbursement cuts, challenges that clouded visibility, disrupted cash flow and created significant financial strain across the sector. The impact on our performance in working capital was severe, requiring us to navigate painful pressures pushed down from our clients, leading to unpredictable revenue shifts and overall market volatility. These external disruptions were challenging, but we have successfully navigated through them by reducing costs significantly and also strengthening long-term partnerships with our clients. And all this turmoil is now behind us....

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