Thu, Mar 6, 10:04 PM (52 days ago)
ModivCare Inc. (MODV) reported a net loss of $201.3 million for the fiscal year ended December 31, 2024, compared to a loss of $204.5 million in 2023, amidst rising operational challenges. Total service revenue increased by 1.3% to $2.79 billion, driven by growth in both the Non-Emergency Medical Transportation (NEMT) and Personal Care Services (PCS) segments, while the Monitoring segment saw a slight decline in revenue. The company incurred significant service expenses totaling $2.37 billion, primarily due to increased transportation costs and payroll expenses, reflecting a 2.7% rise from the previous year. ModivCare's goodwill impairment charges amounted to $105.3 million in 2024, a decrease from $183.1 million in 2023, indicating ongoing valuation pressures in its Monitoring segment. The company faces liquidity concerns, with substantial doubt about its ability to meet obligations within the next year, prompting management to pursue cost optimization and strategic divestitures. As of December 31, 2024, ModivCare's total liabilities stood at $1.69 billion against total assets of $1.65 billion, highlighting a precarious financial condition. The company's credit agreements impose restrictive covenants, further complicating its financial flexibility. Future operational performance hinges on effective contract management and market conditions.