ModivCare (MODV) 8 Aug 212021 Q2 Earnings call transcript

Hello and welcome to the ModivCare’s Second Quarter 2021 Financial Results Conference Call and Webcast. At this time all participants will be in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Jonathan Bush, Senior Vice President, General Counsel and Secretary. Please go ahead sir.

operator. you, Thank and XXXX everyone, for ModivCare’s joining Good call thank and quarter conference webcast. second morning, you With me Financial today and from the company are Officer; Heath Chief Dan and Sampson, Chief Officer. Executive Greenleaf, President

which I would of these Act. statements may Those Litigation course differ statements the is cause characterized results Before we forward-looking call, other get like remind involve the during risks, today’s make press everyone to will regarding uncertainties or management the with Reform under to today’s company’s as materially. the that certain in Securities started, factors, Information in company’s factors and contained events and the actual release filings SEC. Private

The also measures our measures non-GAAP financial non-GAAP discuss most to and in reconciliation will to provide and GAAP release certain in of to included definition measures is the these effort We X-K. investors. Form comparable press an additional information

after replay available website after call, will call arranged this which our opening for have begin This with morning, results. be www.modivcare.com. call a I today’s Dan? we Chief which Dan will open Financial Greenleaf, some Chief will Executive With will questions. call over the financial to the for Dan will Then details We a our hour turn Officer, Heath of on one that, our remarks, provide approximately Sampson, our of Officer, Greenleaf.

and morning, you good joining everyone Jon, you, us. thank Thank and for

to transportation, designed home, social I holistic with past our payers, XXXX, care by right of swiftly health, into implemented opportunities the announced and health we with implementing organization. company on from solutions involving business hospital remove meaningful time, transforming medical reduce vision and and to for a the ways the seats, positive provider transportation ModivCare us to in underserved larger that in drive two placing and or pillars as transform a call the each in first-of-its-kind we our focus company market-leading lives model, connect short our convenient six When the a customer, delivered strategy platform right acting I’ll across to a partners, in the a care At the joined a how enhance populations, critical acquisitions significant these timeframe, we the care of pursuing of a people conduit transformational to NEMT and successfully patient provide. rebranding during barriers delivering voice operations. in healthcare utilizing on to our state automate care two to care, started determinants one-stop NEMT to enhanced shop the of momentum pillar begin we repeatable the weeks single relatively the the people an We growth, technology for business, Given December better today’s enabling patient deliver nonemergency of recapping solutions we address supportive provide costs. supportive outcomes access modernize the logistics

market addressable look billion care the NEMT. to for to the continue access roughly opportunities for broaden in We $X

aimed strengthening In a fact, of further Uber our announced with yesterday we Health partnership nationwide networks providers. transportation at

delivery we Our and meal during the XX nutritional meal determined more for with two programs care the partnerships ripe meals first expanded have pilot approximately To is onset solutions sector with under into that foray disruption. delivery pandemic. organizations nutritional supportive of than date, commenced million delivered community-based

later expect to for in vertical, announce which of significant this We meal our nutritional have completed a work quarter. we formal launch delivery preparation

marking sector. care personal added November Simplura’s expected into markets the $XX personal sector, in with grow our care billion large, $XX XXXX, us Simplura density few in to business Health acquisition an which about scale rapidly in market several In $XXX foundational the vertical the its We provided to opportunity, billion grow are extremely $X excellent core and supportive over next fragmented excited the years. of is next years. care with which adds projected another to we and growing billion Group, an addressable this estimated billion entry the to

pending Finders our X,XXX through significantly compliments the X,XXX million care caregivers. to of in announced delivers capabilities. Northeast care personal Finders Our presence acquisition week hours in of than Care Care more its annually last patients Finders XX Simplura’s Care basis, than recent acquisitions. strengthens care is XX,XXX over personal revenue be providers pro care. annual XX States, the managing providing $XXX the and million lives million combined more of patient we’ll of hours approximately one On approximately for of in forma a largest United approximately

replenishments business the in aides food care is stock serve last aide as with can Finally, X% home health opportunities in care meal and powerful monitoring the suite home. outcomes. XX/X institutional and technology. in personal call improved higher patients week, XXX,XXX on our nonemergency settings ecosystem a providing you believe healthcare healthcare-focused supportive aide of there future If home, solutions access patient to for as We by partners, million VRI remote deploy NEMT our the the billion care like our services fueled monitoring announced or to position We their into in provide a remote our the solutions. the less to acquisition estimated our we believe the market the earlier a from VRI, If medication Medicaid adds while to increasing in program. synergistic addressable controllers same settings, a health two than same we own and care this VRI of suite acquisition national critical is puts ride. remote same over technology adds a need lower any the expanded the its air meager, will supportive this patient’s patients billion pole we’ve the platform the to leveraging care an VRI and need outside approximately or patient settings the leading that medication monitors from management strong data analytics ModivCare’s which NEMT of $X.X monitoring, solutions U.S. patient remote the of is population, mile delivery analytics in-home XX existing can We VRI’s has alone cost supportive solutions. patients short state away our than thousands can for cost more to our summary, supportive detects with hospital monitoring underserved XX% XX combination by to home that addressable to with nutritional to families. The patient’s If patients is health the If devices total and preferred remote payer by verticals leveraged platform unlock market transport us care months, patient management, to of the channel billion approximately the populations zone. plans. its our monitoring Medicare care home. further from notices penetrated patient’s and picture enable technology considerable by $X to capability. a from In VRI coverage only that Advantage will of of bring with total in thrive The NEMT ModivCare growth of data moves traffic in create patient’s required from data increasingly of aide of other medication connected insights care centers. the full envision for $XX which empty the the special for the aide supply,

one strategic have and roof. We and nutritional medication and NEMT deliberate under monitoring, been remote patient delivery, management together meal very bringing personal care,

technology possible of and care, possible. best us patient’s and the the make get clients, to members, to in the toward connect a providers, community by ModivCare to special way helping and and transforming our continues more to meaningful are network improving outcomes this member essential ensure to about are working We’re to of effort your our I’d send seamless who thanks building commitment care deserve. every miss patients opportunity making payer, dedication to never and lives. the partners every access services, team relentless they make vision an a difference of ModivCare fueled a patients realize like to transportation hospital state

On needed The services caregivers and Biden for million to vital support from investment, people disabilities Act in the X.X helping for the Care and than work. Job framework a Better encouraged than remain administration million law legislative returned leaders Americans with than family X.X regulatory seniors services. more valuable half jobs. access, for Better home work support homecare put family back to more and more these could expanding into introduced front, by help a we community-based a while recently provides if and creating This new caregivers the passed million

of with state of trip has reflect from segment million, approximately million pre-pandemic our our highlights. and segment. In million to on coming businesses. the and levels. activity reported second pandemic increased These Moving NEMT results $XX expectations in quarter care total $XX EBITDA the were as remains XXXX, current both our quarter below of incrementally, impact we a adjusted with anticipated, personal coming second and NEMT from few volume its across on yet we the $XX line

environment the to level. going a will as expect the normalized healthcare more utilization forward returns steadily We increase

to cost Project While we an excellent to increase is reduction will trip service which also volumes patients, initiatives, our Storm. increased costs our progress in lead on ModivCare making call

patients Uber call This automation be for to by have able business, year from end, transportation interface modernized of successfully providers. to sustain transportation, built transportation million as interface our delivery a $XX user of returns. these targeted contact centers will rivals we easy-to-use, or and patients this we utilization have that We providers In while Lyft. increasing is savings we food nutritional need total our reducing savings believe for program our that annualized and

President, to President, over Officer, and promotions month. Jonathan Ken comment Counsel turning last Before Senior Bush, we call General the like recent Accounting of Shepard, the Chief Vice the I’d Vice announced to and which Heath, on Secretary,

throughout to legal Jon our promote Heath are advance dedicated that, and of like leadership talented, Officer. promotions I’d with records. have to ranks. to talent and bench of professionals Ken excited our track in these strong Heath? With our We leadership results and our over testament excellent are have to very Both functions finance members a Sampson, been and Financial their the roles to team turn transformation instrumental oriented it ModivCare’s Chief

the volume impacted higher which XXXX, of $XXX relative acquisition as heavily to to of as The well MedTrans, COVID-XX. of was adjusted increase million approximately million, in of revenue related $XXX quarter adjusted the million, segment XXXX Dan. financial was in Thanks, net quarter of and with second Starting recorded revenue diluted million, of consolidated income share. $XX National per million, million compared prior revenue incremental or EBITDA is quarter trip $X.XX $XX second we quarter-over-quarter second attributed to period. to $XXX results, the NEMT of $XX year our our by

of or As discussed was XX% risk from and capitated derived which contracts, are of contracts XX% contracts fee-for-service. our risk, to costs trip from complete last rebate quarter, we revenue. our approximately represented of non-risk, capitated capitated revenue. revenue our where and full have responsibility reconciliation volume Within the primarily of The or is total XX% manage XX% regardless noncapitated

reminder, to received. expense has increase Through COVID, our higher year. with contracts call million that center activity. on contact cap the increase and by third-party costs service related which provisions operational direct Service other NEMT center the based million, The a costs $XXX have volume operations capped. functions and/or all the rebate trip related our revenue compared includes revenue and was higher either prior primarily reconciliation trip to margin As increased driven providers, our been volume the expense to associated and and in transportation $XXX for segment, or profit

benefits to of focus our of reduction automation and and our the specific the on efforts transportation We operating processes. contact continue center modernization cost

which, performing well, previously. negotiated risk are on quarter as increases Utilization again, $XX revenue. contracts XXXX, to and was basis higher $XX But margins customers. We in XX% year-over-year full to our million mentioned Second flat down XXXX. compared NEMT $XX on to the adjusted due our million with impact represent our sequentially our service primarily QX our they expenses million a know in contract, EBITDA of compared

XXXX expect We and steadily anticipate it that increase normalized to throughout early-to-mid XXXX. be by utilization will

ensure size We operational margin our modernized to scale, our major advantage. achieved XX%. and levels adjusted our are We our initiatives EBITDA low-cost believe support will confident of a platform NEMT our and X% competitive modernization these and coupled is expectations business that with platform normalized utilization

XX over for said sales earlier, as platform Dan determinants served other As this with social unique modernized of offerings. million health patients channel

Turning to care our personal segment.

to market. see across We strong personal continue care demand for services our

incentives and expected again, caregiver improve flat in well $XXX XXXX recruitment the concerns half With of million. resulted latter However, later normalize expect government as year, to demand personal EBITDA unemployment growth million into is XXXX, lingering incentives, management. we revenue COVID-XX in in as flat to billable unemployment of this which by the by expense there. because hours, should also Despite care to quarter, in $XX in accelerated effective sequentially adjusted service result X% the driven revenue the increased

ended equivalents and $XX $XXX Moving million to XX, flow second as ModivCare position, with second in the cash of the including our strong operations balance very Cash undrawn XXXX a sheet. $XXX by and provided an million of cash June financial revolver. of was quarter million. quarter

quarter contracts, customer which the increase was XXXX by year-to-date, on in with contracts strong our $XXX associated been of cash and to operations detailed which flow While first ModivCare’s has an payments part year-to-date cash call. reconciliation our million. driven we flow our relate NEMT payable, our earnings from rebate in

repurchased repurchase share to the $XX don’t anticipate year-to-date ModivCare of year. We million the share our of bringing for the shares repurchases any additional During quarter under our million. $XX remainder program, repurchases

we plans to acquisition in ModivCare As the week, of the footprint last expand Care shared Finders personal Care. with Total announced our Northeast care

segment to the our million from of total on net present $XX over which of revenue near expected price of way to generate reach is EBITDA Finders to us trailing transaction synergies. times performance of is $XXX attributes, is to tax personal all-cash Following repurchase annual million, purchase subject Care $XXX in generate million our care and adjustments. $XX our bringing for personal estimated well transaction, goal The approximately billion of the including revenue, annually. the representing million term $X purchase price generating adjusted XX.X of million, in puts transaction $XXX a expected The customer to of EBITDA multiple $XXX value care million,

of operates recovery forward the We are XX% care government anticipated and personal EBITDA the the than on in to our unemployment XX EBITDA line long-term to relative existing in the multiple based following as Finders ModivCare’s with segment. Care between below rates EBITDA personal Finders the reimbursement COVID-XX. state be EBITDA slightly differences growth segment care continue will target forma we higher expect care impact Care at range. pro end XX%, have higher the Finders at margin of our the incentives times which negative in ModivCare’s Including in margin of Care this personal albeit

of immediately anticipate acquisition accretive We in with an and teens XXXX are and excited about the mid-to-high we to accretion earning ModivCare will expectation initial be beyond.

new growth XX% to revenue an cross to Advantage. this mentioned, VRI previously multiple Medicare LTM due mid-teens with in The Dan a is healthcare forward We expectations. another XX% VRI across in the these margins likely top Medicaid of XX% attractive revenue. million, recurring of the similar the the purchase continue believe payer monitoring purchase the announced total companies U.S. all-cash to the is to opportunities years, boasts top-line expected mid-to-high pipeline is remote are As million attractive an represents customary mix, we given over selling highly there strong range. grow from next from the lower market. with in acquisition VRI’s of of will The in XX of driven for price couple by to and Medicaid turns a times while business several VRI’s adjustments, both $XX opportunities is very as $XXX EBITDA Advantage the transaction. focus This EBITDA transactions earlier company be of week. VRI of nearly the million, multiple Medicare from subject terrific one $XX

prior should factored We anticipate cross-selling base third close into the expectations of benefits our case VRI. end the were for quarter. not transactions both to However, these

$XXX of We capacity well have committed full as financing on million as revolver. $XXX our million

is with We place expect range. – to closing EBITDA of ModivCare’s driven the consistent strong This ratio to times in acquisition, currently leverage announced times the the the transactions. September put of pro one to these our expectation time the in in and ModivCare’s mid-three net XXXX. at forma by to closing in be growth Simplura long-term Since debt leverage we net generation. the of financing reduced the prior range into is cash expected acquisition have of Simplura leverage net

ratio remains leverage three target Our times.

So, hold touching down to going Briefly on generation flow strong which be cash investment. pay a XXXX. in debt XX.X% we’ll top-line focused we Matrix’s on in free forward. using Matrix, equity be to continues

offset for Matrix from down XXXX. trials previous of second the rollout of opportunities recorded the quarter was excited XXXX. quarter the quarters testing. solution of million, COVID This adjusted $XX business a we represents private of revenue increase $XX about impacted equity of multiples. XXXX revenue million by not was given that in than clinical October launch by to Matrix XX% market EBITDA million, second especially an value substantial of XX% clinical or from million, negatively We with due faster XX% investment price, winding believe For reflected and QX future compared of our and the of for hidden the of share XXXX partially remain EBITDA the Matrix adjusted partner. was ModivCare revenue remains in and engaged XXXX. the aligned peer to vaccine quarter of is our expected $XX second in or Matrix’s $XXX business Matrix’s

provide as call. we mentioned full during our year year-and Lastly, last XXXX to we quarter, expect XXXX results guidance

that operator, for and adjusted prepared albeit between the the XX%. please concludes acquisition. following adjusted Finders open previous end revenue digits objectives care XX% With between of with to and margins Personal high-single Care in mid-single EBITDA EBITDA a margins growth before the questions. statements call on NEMT acquisition, the higher growth consistent and revenue operating long in remarks. term XX%, include However X% our This digits the

Labick Securities. coming CJS question first Instructions] [Operator Bob you. Our from is from today Thank

alive. is line Your

morning, a on transformative the Good you’ve execution, announced. moves all and and great congratulations certainly quarter

Thank you, Bob.

It’s a exciting much too of lot to into really. Yes, stuff. dig

core for and by I little the rate quarter of look reiterated the could $XX savings cost kind us you now. savings Could the we as of are you – savings you of year-end. behind additional then behind there that know where run initiatives highlight with dig to going Can give and So, And a a buckets just Storm million NEMT, I’m stand? you the you $XX stick Storm business the with starting into million? Project forward? that sense Project

purpose making stopped certainly they I outsourcing sure think, doing we’ve standpoint, that something or surge contribute and to manage really effectively. too. really here one and overrides, Bob, IVA, got XXX offshore. which for that’s That’s that at have Yes, for BPO this, five waist a eligible six a getting Heath or we’re now, from in in got, – call to to jump But and pricing, XXXX, we XX% range either cost can and just in continue XX% we The then onshore in containment – really of goal things example, is intents around our there’s we’ve IVR in approximately is initiatives, and that the riders. all a people

opportunities optimize think next, as end – we And to like there’s, called how annualized the And some the And first And really, in when to the comes streamline to will I we there million? another don’t – savings business are point, so a million. that continue – tracking being next, lot kinds mentioned a Yes. in we what’s all work initiative we the of and really feel be Bob, run. of then those $XX think we way put I feel about is go Storm. the we good as first feel we’re of and have this at we is we When digital, possibility – the there it year. we before really $XX

good we I and those as continue We’re that, one of know bullish if bigger we I relates need just facilities. to with calling as going is starting imagine big the would the many you we’re about as less a we’re initiative where real some – Lightning. done think many bucket, but going work that’s execute workforce not not the the and could as have second decentralized think be other make just mean, the another And – that’s if upon, you to we And to we’re progress I we’re on U.S. are really that. estate, been think – that’s the buckets. I to pre-work what to meet

you Okay, network can great. future? renewals the you’ve help this the That’s are great. bids where will you you how maybe and then is And experience? helping the your highlighted it of terms customer how WellRyde, on your And And rollout? digitizing digital and tell in your new in us

So a couple things.

XX% approximately our of at networks digitized. We’re

we from track year, at So and to were massive of of be remain where improvement it’s August a on in XX%. just we last

And So got markets that’s at are going that unbelievably XX%. already well. we’ve some

So Utah for already is example, XX%. at

experience. whether that’s or that’s care whether feel So, I we with member, of, in provider, involved we’ve we whether also payer think, the made mean, teammate, network business a the it’s doing a want is lot organization of end coordinator, everybody just fellow mean, something experience, improve a whether customer member digitized that, whether at I unlocks – And enormous the that’s us make this like the to we and I state, with. a transportation day, a opportunity easier. or that’s progress. frankly, almost that’s

making So, we feel enormous like, progress. we’re

our relates WellRyde, if he As future? ago, a Meffert, I’m asked are what who’s in Officer, control we year that. our And – Walt certain of of Chief Walt not if asked somebody to had Information our you had was goes, that

competitors use in We industry With acquisition our six control of product. absolutely unequivocally we’re the this bought of in from future. standard, WellRyde, the gold fact, perspective, our an of

does like, So, is Bob means it we’re that moats. what building I think mean? what

personal moats, we have building We’re because care.

into monitoring. were we’ve We’re remote – we building moats, moved because

from we’ve feel been, the always always haven’t in building unequivocally And we’ve most it’s sophisticated and been the most biggest. We’re been a respects continue the And We position because of for and – we’re just have to technology strength. that. move as, all we in frankly, nimble always industry. we many best moats Bob the like we

that, bit the see driver the guys little feel where it a where knows Lyft, an on when your take you you like because is, are. you pick Bob right, can you you Uber know Yes, or car more member experience

that’s So experience from member. wonderful just an for the

below well with place. getting just right that, items in other The

we actually can electronically. drivers those all see Now

So that will help in routing. in routing, automated

So car you see I and car the then those, this you other can know, reroute this there, goes okay, way. goes

The as instantaneously to automated within that technology, drive of the connect ensure data which we type for to all that, other service. that eligibility take item, things that, get can allows happen actually it to member this that

So does runs you that just and the, that can processes across time high all of by the claims, this locations. says all for can what manual imagine nature reduce XX%. the we and like that the our that below, And all manual teens Dan

scale. we low been successful move really being we’ve can, And good we into as the provider how storm. about why we the we that’s That’s that’s on feel really So feel cost biggest why successful Lightening. why about with

So pretty exciting.

Absolutely. ask in one I’ll That’s queue. back get more, great. just and I’ll

it to, and personal Simplura care. As relates

an well, seeing pressures there How key And wage labor talked labor conditions to in reimbursement changes, changes wages seeing and or should get your about you? You we from latest think availability. affect think any, in you CVS their that regard? the How those also, are reimbursement partners? minimum hour. to out that There’s to maybe everyone’s about as may raise wage is I $XX able

Care from We our Well, now of $X New just to presence. we I state the largest X. announced deal. states got with have speak in It’s Finders, we Jersey, rate effective it the mean, increase July I’ll a

So, it’s gone from $XX to $XX.

basis. an on we So hourly

wages have that So in we built are flexibility York rate up our contract, increases in. those if New like, already there we feel go

from about, perspective, wage least, the to markets pressures, at feel responding given wage, So positioned, we’re were are with. really involved good states will if from in, how you I my the markets we’re how the

don’t And perceive so I an perceive really don’t being I issue. really that that.

having to It’s is of will could Bob, of imagine staff it’s temp I’m a million turnover, the what this spent, like spent overtime, a things this that as or And labor. centers, mean, in lot does impact clear historically appropriate living to very does what I contact like staff in the having this, our recruiting, you company it I’ve think not $XX I believer I has internally, appropriate things wages. on their – the relates what not made people, money. what things does wasted say it it to

again, build as the our business and from scalable best outsourcing the we from best from takes so, the And that out technology. model our U.S. and best the process

be from to for living the achieve to have in And, well unique goal order out. well, it’s going frankly, position. my in of do a that, And minimum We’re really get we’re wage a that. we my team. track members perspective, to our waste And but we’re to on to do

so Thanks much. right, great. that’s All

Thank you, Bob.

Thank you.

Thank you.

from coming is today Tanquilut Brian Jefferies. from question Next

live. now is Your line

good congrats the on guess… guys. I quarter. morning, And Hey,

Thank Brian. you,

Yes, of course.

margins, the my were obviously, So first NEMT guess in I segment. strong question,

just what figure at trying you’ve lower your initiatives that in of then Just terms markets of, maybe uptick with look in is put weeks. Dan, to you Have you’re COVID share out a the business, in in can in just versus as in separating the last us utilization just lot seen you benefits And you of anything utilization? of couple the place with trend seeing any the since? changes

this one uni-varied think it to thing the The focused is problems we relates we do on is is as and utilization. analysis that, that get of interesting I sometimes

by is is that, multifactorial. COVID mean do what so, I And that

drop. see may we while So, utilization

be loading, unit do level much we of higher, not on pressures in multi doing types the of areas cost. to ambulances like more has we’re seeing service may as think, other And other with a that We’re lot dependent vehicles. sometimes upon is you or COVID. Because

million sometimes think be that quarter last what look bought of were through third we that, where think for was, MedTrans Brian, you EBITDA. I $XX valuable because So, of we company. we said, I people wary, about, forget know, look at how performance, at, we when very our the I year, been I I’d achieved just about National has our

of So, add driving want Then higher. let’s Project personal P&L. the normalized, we’re doing another we’re these million would which that if also that. side, not initiatives utilization I on $XX we had care significantly be moving been forget are our through through is, what number Storm

that false So at so it’s evaluating are our a negative, it’s you’re on And our that I Heath’s think upon P&L. adding to view utilization, stage, is that got so actually, is we a other things I business the to because many dependent utilization. adding we not talked have our this script, in if now becoming my lot that performance, our forward, is about and going more script, predictable performance

things. I those So say what that’s would about

Dan’s think Yes, the utilization definitely just of we’ve good a I better Dan how it done top right, we a And thing you I’d manage as about, said just on year, we’ve lot that, markets. to and everything a it. specific point, up on on job that quarter, that, we’ve feel say see last on also, got lot see better, about since the and it, well, we is in talked you other lot that last layer add, you on else

with Delta of up over utilization of where is. these So last to variant it kind been too early typically, flat tell. weeks has to It’s couple

numbers, uptick, And so the feel of that doesn’t in it a my we’d and Delta, we happen, see numbers those if doesn’t about steady said that XXXX, at we’ve happen. mid we be that expected of beauty in our seen early so good levels, pre I when it normalized kind and to

as strong be will well. numbers Our

It we’ve for was Delta So good a got us. I variant, on predictable, it TBD, think what it. does handle

I to just reasons. Brian, moved run around think we’ve mean, that, of some, I you, XX%. I of we’re absenteeism, And like variety a seen XX%. increases like, for It’s in if kind typically mean,

right, business of So utilization been. our about managing just see day. standpoint. And it’s that some look every we’ve, we at from But he’s where single we it’s

the So I to haven’t that, some XX%. XXXX, mean, I in to impact on this I absenteeism seen of Other of like don’t June guys, you we up – I point we rocket mean, any really issues, saw at we talked think during than, time.

we time incredible I there’s feel utilization impactful the less the and lot is, doing. And, about there’s but So, of we’ve we to a we’re supply utilization, I system. aspects of before, done I business if things as again, back where that, think negative through. again, about this is the this a And be seems into we get talk think lot this

impacted things and away and us not will up the in numbers show will have that well the they’re of as go negatively there’s Brian. Some insignificant. they’re,

And would I performance say are bigger so driving terms think now terms in impact doing, of a things acquisitions, of other we business are I the that’s in I think thing than utilization. having only the

the I’m payables? much? on a makes Heath that in if sure prepared How payables. you remarks question the not just That disclosed sense. lot

Yes, think no, I don’t I did.

million So obviously, the receivables in accounts million net think I did, are in payables we’re XXX that at lines even XX was of together. those about of the queue receivable our

we where from payables that’s are So perspective. a

Brian. you lose We

Our O’Neill next question is coming from Capital. Brooks Lake Street from

Your line is now live. on Brook, mute? you are

sorry. Hey,

been and I’m dropping the why. not off Sorry, guys. call. I’ve on sure

and transcript. simple. But that I’ll try So it and to if question is, you financing. leverage Matrix, read been Heath the status X.X I I guys. the first I’m related just if curious the Matrix that’s mentioned going already acquisitions for was I just objective, guess as asked two answered, My that to reflect I keep assumption say of think question to the the the times any or post

Yes.

clarify. I’ll So

opportunity a that’d have. be the Matrix after three three Obviously, three to always is below we’ll And the low, do times. goal Matrix. not below of or we then us that, that that does to with at goal with include if always And level future. to that, kind event acquisitions, well for be get that the our So of in anything times monetization the wonderful to of deliver

you the just very talked little strong people what’s right homes the bit or in a secondly, you in you go I dropping. labor into if Then them do morning, guys unemployment’s the just about any having additional employment see do? the having guys I’m about prepared of And pretty this suggesting remarks. Perfect, out, Are finding things wondering a that’s you report Can helpful. there’s trouble color need you success? and to people working finding talk to terms

you tell in of a standpoint, mean, from something we Middleton. I every CEO it’s to recruiting on Dave world Yes, And, I have is the a, that don’t, you solution technology a I frankly, day. bullet focus new silver say have that class would name delivering us. of – I implemented there I here. we’ve to I And that, And think candidates also, is, number isn’t don’t, a would a

rate bullet silver the new think up. saw U.S. And that, just I hits I drying ultimately the here report unemployment, will the you, be pandemic-era low. stimulus new agree with jobs unemployment I

think us – side, our the that I we’re, shape the is it’s our Finders it’s seeing heard the personal the some So, improvements. utilization of let’s hedge beauties on of, And fact side, business acquisition and one especially of of now. us of helped transportation we’re performed, given us, the business, not care that has, in the opportunity. while Care size on with And, sight incredible lose personal care an and again, the for

would I where I we, [indiscernible]. about labor we feel good a so say are And I guess, perspective. from about

a are some at of recruiting, time, I where in feel we business certain think $X,XXX on the offering about don’t seeing of Burger number sign good in we’re I but implementing, are. been bonuses for again, we but improvements we’ve know, period we’re King, You different of like hours technologies.

point to all they’re the to home hours, because, day, other people have out want our are the where aid northeast, company know, want. predictable the our in is Brooks. of choice. the, really take you like at want is of recruit aides particularly of want I predictable pay. on businesses thing million the going we a we’re they the what and good that’s think to or they to if what hours. you’re in pay. end Finders XX side, of And to And XX I be They of kind take-home Care have overlap And, want Simplura maybe position when we’re the That’s more, predictable you going post-COVID, because

I also that. want guys and are a they doing treats that you fairly. employer know strong them And they Cool, assume

it the after missed. I’m of I’ve some for leave excited I’m much. a you going stuff Thank had you. very to to chance So I at around that and read circle back

Thank Brooks. much, you very

Thank you.

today Petusky coming question from is Mike Barrington Research. Next from

now line live. Your is

Dan, center, do say, calls, any call of of we’ve do or have accumulate digitization on in any a your – reduction that what – digital on you you this where sort working? questions have data of Have yes, the XX% the you quantifiable you centers rides, like Few checking inbound Hey, of seen or seen hey, is data impact guys. can data morning, call in this Good suggests. that any

containment, XX% we mean, best-in-class are at we X%, the about is call below frankly, XX%. IVR, I somewhere between on and I example, for to where where we’re example, track, IVA from wanted about, Yes, be, but we for think again,

we have of I lots still So opportunities. think,

we’re is, allows tracking much and you really, is lot really, at to just point said, is time, out already just how of network The business. We at really manual our lock of number Heath above opportunities, as in that it, mentioned strong this the of other historically of us terms in a reducing this thing to digitized. we’re about which flat XX% nature,

XXX And flexibility, I’d that of our a, I I are we’ve significant would well. So I our other to better us ones an allow think as in point the scale. us to, provides then resources. again, opportunity to got that’s will to people process enormous that ultimately is, business And outsourcing provides those us utilize one think, to point I a think, amount

your heath, ones to, am missing. the I So that don’t those call are what attention would, know, I I

Yes.

to So in, the volume way all get the the calls but talked in dollars about door. to once it the you you already, we dollars to the coming relative right we have, and trip at trip volume look that those that have the

in all up, two right volumes concurrently. not stuff. in that is volume with trip place, that doing look And going showing the going and is up So that that’s what’s call is at. means the ultimate the And that metrics you’re to initiatives That the up have you data.

Fair enough.

in to that profitability. sort so kind comparison of you some news little obviously Can on see a rest? Just revenue mean, of, employment, of minute, state given all business Simplura maybe for of sort a the turning uptick the sequentially, and do in QX do due lift mean, to next that of good it to expect starting speak your of start state you stuff of to lift where just to what’s quarters Is flattish I bit flat generally the, in the QX? you off view? it September, I your expectation, rolling I couple starting businesses, in or guess, here in on of the is some QX? sequentially, terms

third gradual the would would see Yes, in improvement I quarter. say we –

with, mind, COVID. care a would in first stimulus I ramp quarter. to we’d mean, I prior COVID, package, lot fourth seeing it’s the think happening million again, think of do it’s to and XX have improvement again, again, again, the see, I start – things in obviously, significant with to going keep but quarter. going personal up And year. what’s Yes. And the more tracking just the in And a business I is Simplura hours

at we’ve $XX.X about If is now where been of you run right million. look rating kind

like also, the historically demand XX where million is hours. of they’ve here, is there opportunity bunch but that in in a point my so standpoint, been that just And terms well from demand is whole is a of – there a where above

Care we’re believe in important remain support really and be bring And a to and, good is business. that, our that to on the bullish And, respects, Finders future so, in we aid healthcare. business that be extremely we again, I this of as think how position, model, going talked many personal together going to about,

guess I So say, what I I’d Mike, feel that’s good.

this – how I We’re being think point people time. of lot dealing stuff, I said, with a in it a with we’re that that’s model same of dealing would a lot at are

Heath, Or sort this do these Heath you what’s sort of range capital a couple going to moving as forward your you transactions a more, move sheet, on what the are for how presumably have here. terms these level? little level quarter? balance Like, cash, of, make later run you close in sense cash I’ll A work transactions? forward, thought, closed of you’ve of after at working cash

Yes.

we if – million, accordion, XXX as price to a grow to at close million wanted acquisition. spring to million, ability cash then, revolver now. what $XXX that to we of $XXX of $XXX undrawn the And the and So have is the the right

that, going we’re place. debt is So need have cash I – some lot to of think great, yes, term which and then using for a in but that pay then do we to longer

we So payables forward. two the payments, based them it and acquisitions, the to paid great a when three, over all those to insight these of be that at we next on or payments, those deliver will, good around would our into the that to low a we our going together, into, balance going mid move going pay we good we have grow on to continue that focus that feel about the months strong our have a So be And working continue those. from of the not to sheet. utilization COVID. system, growing, all coming have capital, good all net as made driver course, grow assumptions right? likely we whether low is leverage is now, basis. We will been be They to those, working into obviously three, we insight be so really really XX to is reconciliation rebate big of chunk capital, And our

forward So Really, you it’s payables due that move okay, balance in going, the sheet, the you’re terms cash the of payables. on I it’s not the huge is fair? mean, going as be unlikely now, so given to to difference

of we’re acquisitions, we’re say a to going, buy right. these we using cash Yes, lot

buying going adequate we more these to the go that operate cash to is than the down to we’re invest and have to cash, companies. going because cash So But we’re ensure continue business. adequate

the the also cash business. the of flow Well, free

Yes. Adjusted business free a for on flow is CapEx proxy good the so… low our cash EBITDA because

these thinking releases homecare, maybe it is have? mean, have with going to I out? and businesses? but new right. segment monitoring? final considered, made, to acquisitions to new and, your going busy hasn’t going two how a guess the just that, how and there – you Or then last remote been I All it’s you’re you you about get Heath decision transportation maybe are you are on if one, And press

the and sure, we’ll looking Yes. good about right right the to Right. way, year, think also a have This at that, different want be to we about We’ll too it? provide don’t sure. But to thinking insight. want going But year, get for a for way busy. view. That’s we next you’re into

that the So That’s you’re lot right? we but when to out in in we have a And we’ll stuff that’s place about it, the sense. break the some that thinking makes of put art, that that we all need way and it. see of

side? So you And the we important, as investments technology unfairly getting you with can right see cost know, P&L but is even all the revenue the that and side got to the as now is break burdened transportation, out. that

said amortizing, too. he’s he compensation And

than more So to lot investment. technology just it there’s a the

Yes.

So we’ll be that as well. breaking out

each can really you So of the growth of well. then see these profitability segments. investment And what as understand as using we’re

So long story.

the in just squeeze new me Dan let quick, nutrition. in vertical on this Let’s

of broken inside be the we’re contracts had just would – or separately? going? Or be how transportation about, priced we of think what would sort So that should out

and to the business ultimately going be I some or about, also I these the we’ll four XX these of we’ve the we’ll this we we’re the broken relationship And that’s, business back think where a the we the again, going really to channels. think through we’re this all sell because the is will, to And units, understanding its, and be channel my and But because month isn’t own sales about ownership of selling office with, here, already account that these team that’s that But there’ll the as company this and I the given build of just, and these think thought the next XX complimentary Mike, million point like, this, take Mike, range out. to the Yes, going this point ramp to, I that are amortization beauty and, that was we’re XX talked into, as services services. very populations now, verticals, going into time NEMT is, owns XX that range. the and and it’s management million have I office in this the the lot be I a out managing to and think this business. person what products when now, had was the team here, guess, about about channel, of we big talked got members to think, is, incredible team, was And is that, an, so, this I think channel, four have units. how to these we’re of in launching he over it in it going time all is can would way it’s of business is person back would do envision we’re to we’re have, sales that, channels, a then initially it going I which I up. functions we the four thinking with ultimately, But ownership channel, I’m this my

Very Hey, good. progress. the all on congrats Thanks.

Thanks you, Mike.

Thanks Mike.

to Thank you. floor the or for session. management end over We’ve question-and-answer reached comments. of turn to our back like your further closing I’d

on you again, to a much. release we Group safe results. in all participating won’t quarter The conferences back have for and if very reporting the term one-on-one you in Equity our out you’re COVID-XX. the accessible investor reach firm. We day. a thank forward given near Investor good third remain you follow-up interested for call be on financial scheduling Relations to November, in our the look And, Stay XXXX call. morning. calls. to We Please road We Thank for this when

that does you today’s conclude and webcast. Thank teleconference

time today. you participation a your You thank have may for We at this line day. wonderful your disconnect and