Modivcare Inc - MODV STOCK NEWS

Modivcare (MODV) has announced significant changes to its Board of Directors, with the appointment of Daniel Silvers effective April 24, 2025. This appointment completes the Board's previously announced plan to add three new independent directors as per lender obligations.

Silvers, currently the managing member of Matthews Lane Capital Partners and Executive Chairman of Winventory Inc., brings extensive experience in corporate finance and public company governance. His background includes executive roles at Inspired Entertainment, SpringOwl Asset Management, and various board positions with notable companies.

Concurrent with Silvers' appointment, three directors - Craig Barbarosh, David Coulter, and Richard Kerley - have resigned effective April 24, 2025. Coulter will continue as a Board observer, along with Alexander Matina from AI Catalyst Management.

Modivcare (Nasdaq: MODV) has named KDK Transport Company as Virginia's 2024 Transportation Provider of the Year for their outstanding non-emergency medical transportation (NEMT) services. Founded in 2019 by Eddie and Kimberly Kiser with just one van, KDK has grown to operate over 75 vehicles and employs approximately 118 Virginians, providing around 1,200 rides weekly across southern Virginia.

The company maintains an impressive 97% on-time performance rate and 0% member complaint rate. KDK has expanded its services by establishing Pro Med Ambulance Company, becoming the primary 911 provider for the Coeburn area. Modivcare's Virginia NEMT network includes more than 530 local providers, operating 2,719 credentialed vehicles with over 3,700 contracted drivers, primarily through minority and women-owned businesses.

Modivcare (MODV) and Aetna Better Health® of Illinois have launched health stations across Illinois to improve healthcare access. The Modivcare Higi Stations provide self-service health information, digital navigation, and future telehealth capabilities at community-based locations.

Starting with 5 community partners and expanding to 15, these stations offer free access to health information and education on chronic conditions. For Aetna Better Health members, the stations enable health surveys with personalized recommendations for addressing care gaps and accessing community resources.

The stations are currently available at locations including Rincon Family Services, Supportive Reentry Network Collaborative, The Kindness Campaign, Vermillion County Healthcare Collaborative, and Westside Health Authority. Aetna Better Health of Illinois serves over 360,000 Medicaid members across 102 counties.

Modivcare (MODV) reported its Q4 and full-year 2024 financial results, facing significant challenges in its healthcare services operations. Q4 2024 showed service revenue of $702.8M, flat year-over-year, with a net loss of $23.5M ($-1.64 per share). Full-year 2024 revenue increased 1.3% to $2.79B, with a net loss of $201.3M ($-14.14 per share).

The company experienced operational pressures from Medicaid redetermination, increased healthcare utilization, and lower Medicare Advantage reimbursements. Notable metrics include Q4 adjusted EBITDA of $40.4M (5.7% of revenue) and free cash flow of $24.7M. The company secured financial covenant relief through Q2 2025 with a $75M incremental term loan facility.

Additionally, Modivcare announced two new board appointments: Alec Cunningham, former WellCare Health Plans CEO, and David Mounts Gonzales, General Partner of AI Catalyst Fund, effective March 7, 2025.

Modivcare (NASDAQ: MODV) has announced it will release its fourth quarter and full year 2024 financial results on Thursday, March 6, 2025, after market close. The company will host a conference call at 5:00 p.m. Eastern Time on the same day.

Additionally, Modivcare plans to postpone its previously announced special stockholders meeting from March 3, 2025, to March 13, 2025, at 10:00 a.m. Mountain Time. This adjournment will allow for the release of Q4 and full year 2024 financial results before the special meeting. The record date remains January 22, 2025, and previously submitted votes will remain valid unless properly revoked.

Modivcare (Nasdaq: MODV) has named Payson Priola as Maine's Driver of the Year. Priola, who joined the company in 2022, serves as a non-emergency transportation (NET) driver covering Androscoggin, Franklin, and Oxford Counties, transporting Medicaid members to medical appointments.

The recognition highlights Priola's reliability, adaptability, and positive attitude in serving members. Since 2014, Modivcare has expanded its Maine NET provider network from 10 to over 45 local providers, including 26 minority-owned and four women-owned businesses, employing more than 400 contracted drivers.

The company maintains an impressive 94% on-time performance rate and consistently low member complaints and vehicle unavailability rates below 0.1%, exceeding state requirements for service delivery.

Modivcare (MODV) has secured $105 million in incremental financing, consisting of a $75 million term loan and $30 million in new second lien notes from Coliseum Capital Management. The company has appointed Chad Shandler as Chief Transformation Officer and plans to add three new independent directors.

The financing package includes covenant relief from lenders and amendments to the existing credit agreement. The incremental term loan is priced at SOFR + 750 bps with a 2026 maturity date. The company will also pursue a strategic review of its assets, which may include potential asset sales.

As part of these developments, Modivcare has withdrawn its previously stated revenue and adjusted EBITDA guidance for fiscal year 2024 and adjusted EBITDA growth projections for fiscal year 2025.

Modivcare (MODV) reported Q3 2024 financial results with service revenue of $702.0 million, up 2.2% year-over-year. The company posted a net loss of $26.6 million, or -$1.87 per diluted share. Adjusted EBITDA was $43.2 million with adjusted net income of $6.4 million. NEMT segment revenue grew 1.3%, PCS segment revenue increased 4.7%, while RPM segment revenue declined 1.7%. The company affirmed its 2024 guidance with revenue between $2,700-$2,900 million and adjusted EBITDA of $170-$180 million, expecting >10% Adjusted EBITDA growth in 2025.

Modivcare and the Michigan Center for Rural Health have completed an 18-month Remote Patient Monitoring (RPM) pilot program across three rural Michigan hospitals. The program, targeting patients with hypertension, diabetes, and congestive heart failure, achieved a 48.72% enrollment rate from 117 eligible patients. Notable outcomes include doubling the number of patients with controlled blood pressure (39% to 78%) and significant reductions in blood pressure readings (27 mmHg systolic, 11 mmHg diastolic). The pilot demonstrated particular success with homebound patients and those with social support, maintaining a device failure rate below 10% despite rural connectivity challenges.