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DENVER - Modivcare Inc. (NASDAQ: MODV), a technology-enabled healthcare services company, announced its financial results for the fourth quarter and full year ended December 31, 2024. The company reported a consistent service revenue of $702.8 million for the quarter, mirroring the fourth quarter of 2023. According to InvestingPro data, the company maintains a Fair Value that suggests current undervaluation, despite receiving downward earnings revisions from five analysts for the upcoming period. However, the net loss for the quarter expanded to $23.5 million, a negative $1.64 per diluted common share, compared to a net loss of $5.3 million, or negative $0.37 per diluted common share, for the same period in the previous year.
For the full year 2024, service revenue saw a slight increase of 1.3% to $2,787.6 million from $2,751.2 million in 2023. The net loss for the year was reported at $201.3 million, or negative $14.14 per diluted common share, which is a slight reduction from the net loss of $204.5 million, or negative $14.43 per common share, in the previous year. The stock has experienced significant volatility, with InvestingPro data showing a 89.5% decline over the past six months. Subscribers to InvestingPro can access 15+ additional exclusive insights about Modivcare’s financial health and market position.
Adjusted EBITDA for the fourth quarter was $40.4 million, down from $50.5 million in the fourth quarter of 2023. The adjusted net income for the quarter stood at $2.7 million or $0.19 per diluted common share, a decrease from $18.4 million, or $1.29 per diluted common share, in the same quarter of the previous year.
The company also provided updates on its board of directors, announcing the appointments of Alec Cunningham and David Mounts Gonzales, effective March 7, 2025. Both bring extensive experience in healthcare and technology, which is expected to add significant value to Modivcare.
Modivcare’s financial results reflect the challenges faced in the healthcare industry, including Medicaid redetermination and lower Medicare Advantage reimbursements. The company amended its Credit Agreement in early 2025 to obtain financial covenant relief and issued a $75.0 million incremental term loan facility to support liquidity. InvestingPro analysis indicates the company operates with a significant debt burden of $1.26 billion and its short-term obligations exceed liquid assets, with a current ratio of 0.8. Get access to Modivcare’s comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks, for detailed analysis of the company’s financial health and future prospects.
The information provided is based on a press release statement and is presented to offer a factual summary of Modivcare’s financial performance for the periods indicated.
In other recent news, ModivCare Inc. has made several significant announcements impacting investors. The company has rescheduled its Special Meeting of Stockholders to March 13, 2025, to report its fourth quarter and full year 2024 financial results beforehand. ModivCare also faced a downgrade in its credit rating from S&P Global Ratings, moving from ’B-’ to ’CCC+’, due to persistent challenges and the withdrawal of its 2024 and 2025 guidance. This downgrade was accompanied by a $75 million term loan issuance and plans to exchange up to $251 million of senior unsecured notes. Jefferies has lowered its price target for ModivCare to $5.25 from $18 while maintaining a Hold rating, citing high debt levels and cash flow issues. Similarly, Lake Street Capital Markets cut its price target to $10 from $30, yet retained a Buy rating, following the company’s withdrawal of financial guidance. Additionally, ModivCare’s director Garth Graham has resigned from the Board, effective February 28, 2025, with the company not yet announcing a replacement. These developments underscore the financial and operational challenges currently faced by ModivCare.
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