ModivCare Inc. (NASDAQ:MODV) Q1 2022 Earnings Conference Call May 5, 2022 8:00 AM ET

Company Participants

Kevin Ellich – Head of Investor Relations

Dan Greenleaf – President and Chief Executive Officer

Jason Anderson – President, Modivcare Home

Heath Sampson – Chief Financial Officer

Conference Call Participants

Bob Labick – CJS Securities

Brian Tanquilut – Jefferies

Pito Chickering – Deutsche Bank

Brooks O’Neil – Lake Street Capital Markets

Mike Petusky – Barrington Research

Operator

Greetings, and welcome to the Modivcare’s First Quarter 2022 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. [Operator Instructions] Please note 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 2022 Earnings Conference Call and Webcast. With me today from the company are Dan Greenleaf, President and Chief Executive Officer; Jason Anderson, President of Modivcare Home; and Heath Sampson, Chief Financial Officer.

Before we get started, I would like to remind everyone that, during today’s call, the company’s management will make forward-looking statements under the Private Securities Litigation Reform Act. Those 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 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 reconciliation to their most directly comparable GAAP financial measures is included in our press release and Form 8-K. We have arranged for a replay of this call, which will be available approximately one hour after today’s call on our website, modivcare.com.

This morning, Dan Greenleaf will begin with opening remarks and provide an update on our Mobility division, after which Jason Anderson will provide an update on our Home division, followed by Heath Sampson, who will provide an update on the details of our financial results. Then we will open the call for questions.

With that, I will turn the call over to Dan Greenleaf. Dan?

Dan Greenleaf

Thank you, Kevin. Good morning, everyone. On a consolidated basis, Modivcare reported strong financial results in the first quarter of 2022, delivering 27% revenue growth, driven by contributions from our recent acquisitions and 17% growth from our NEMT segment, which generated 9% adjusted EBITDA margin this quarter. Consolidated adjusted EBITDA was $50 million in the first quarter, which was in line with our expectation. We continue to advance our strategy, delivering quality access to care, reduced costs and improved outcomes for the 32 million members, or approximately 10% of the U.S. population, that we serve.