Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ModivCare Inc | d283485d8k.htm |
 NASDAQ: PRSC
January 2012
Exhibit 99.1 |
 2
Cautionary Note about Forward-Looking Statements
Certain
statements
made
in
this
presentation,
such
as
any
statements
about
Providence's
confidence
or
strategies
or
its
expectations
about
revenues,
results
of
operations,
profitability,
earnings
per
share,
contracts,
collections,
award
of
contracts,
acquisitions
and
related
growth,
growth
resulting
from
initiatives
in
certain
states,
effective
tax
rate
or
market
opportunities,
constitute
"forward-looking
statements"
within
the
meaning
of
the
private
Securities
Litigation
Reform
Act
of
1995.
Such
forward-looking
statements
involve
a
number
of
known
and
unknown
risks,
uncertainties
and
other
factors
which
may
cause
Providence's
actual
results
or
achievements
to
be
materially
different
from
those
expressed
or
implied
by
such
forward-looking
statements.
These
factors
include,
but
are
not
limited
to,
reliance
on
government-funded
contracts,
risks
associated
with
government
contracting,
risks
involved
in
managing
government
business,
legislative
or
policy
changes,
challenges
resulting
from
growth
or
acquisitions,
adverse
media
and
legal,
economic
and
other
risks
detailed
in
Providence's
filings
with
the
Securities
and
Exchange
Commission.
Words
such
as
"believe,"
"demonstrate,"
"expect,"
"estimate,"
“forecast,”
"anticipate,"
"should"
and
"likely"
and
similar
expressions
identify
forward-looking
statements.
Readers
are
cautioned
not
to
place
undue
reliance
on
those
forward-
looking
statements,
which
speak
only
as
of
the
date
the
statement
was
made.
No
inference
should
be
drawn
that
Providence
undertakes
any
obligation
to
update
any
forward-looking
statement
contained
herein.
Forward-Looking Statements |
 PRSC Overview
Market Cap:
$192 million
Price (1/11/12):
$14.80
Range:
$8.35 -
$17.84
Diluted Shares Out:
13.3 million*
Avg. Volume
58,000
Cash Position:
$48.5 million*
Net LT Debt:
$104 million*
Revenue TTM:
$918 million*
Trailing 12M EPS:
$1.19
P/E (trailing):
12.4x
Price/Sales
0.2x
* Data as of 9/30/2011
3 |
 Leading provider of home and community based
social services and transportation services
management
Clients are government beneficiaries eligible due to
income level and/or emotional/educational
disabilities, funded largely by Medicaid
Services are contracted primarily by state, city and
county levels of government and are delivered
under fee-for-service, cost-based, capitated and
block purchase arrangements
Deliver cost savings and improved effectiveness for
government social programs by reducing out of
home care and reducing transportation expense
4 |
 5
Home and Community
Based Counseling
Home based counseling
Intensive home based counseling
Substance abuse treatment services
School support services and tutoring
Correctional private parole services
Workforce development and job training
Therapeutic foster care, adoption
services
Developmentally disabled and autism
spectrum services
Mentoring
Point to point transportation
Customer, trip authorization
Call-center management
Utilization management and data
collection
Quality assurance
Billing and claims
Network credentialing
Case management
NET Services
Our Services |
 Social
Services Segment Overview 520 contracts and over 57,000 clients (of 60
million eligibles) in 33 states, the District of Columbia and British
Columbia *
Business built around steady organic growth and through
acquisitions
Past growth levels -
averaging 9% per year -
are expected to be
sustainable given far reaching operations and the large
population eligible for its services
Pricing expected to be steady, substantially all contracts
renewed
Variable business model allows management to adjust to
challenges as necessary including state budget pressures and
system reforms that could challenge overall profit margin
6
* Data as of
9/30/2011 |
 NET Services
Segment Overview Leader in the $2.8 billion Medicaid NET benefit market with
75 contracts in 34 states and the District of Columbia and over 10.3
million covered lives
*
Positive revenue trends as a result of recent bid success rate
-
Won 8 of 9 incumbent contracts up for rebid in 2011
•
Only loss Colorado (<$6M)
-
Won 5 of 5 new states in 2011
-
Expect to service 40 states in 2012
7
* Data as of
9/30/2011 |
 NET Services
Segment Bid Results Retained Virginia, our second largest contract, as well
as contracts in Delaware, Arkansas and Pennsylvania.
Received notice of intent to re-award in Nevada, but still subject to
protest.
Retained and expanded contracts in South Carolina and Georgia
(this award remains under protest).
Also retained and expanded Connecticut after successful protest,
but new contract structure will reduce revenue recognition.
Added Michigan and Wisconsin and Missouri was reinstated.
Newly executed contracts in Texas and New York City will be
implemented in early second quarter.
Additional business from NJ and start-up costs in Michigan and
Wisconsin impacting 2011 margins
8 |
 Market
Trends are Generally Favorable
Medicaid enrollment up by 19% since 2007
1
, expected to
increase by 33% in 2013 with Healthcare Reform Legislation
60% of Medicaid dollars still spent on out-of-home care
2
States now have federal financial incentives to increase home
and community based services and are redirecting clients away
from out-of-home care
Federal Court has intervened to stop indiscriminate cuts
CMS will not grant eligibility waivers
1
Kaiser
2
CMS
9
State budgets remain tight, but with Medicaid
enrollment up -
states have to do more with less |
 Strategic
Initiatives Develop/Deliver Services to New Payer Client Segments:
Seniors
–
Deliver skilled and unskilled home health and mobility services
–
Estimated
$100
billion
market
by
2017
(1)
U.S. Dept. of Veterans Affairs
–
Budget driven shift to more cost effective human/behavioral health services
for active military and veterans
–
FY2012 medical care budget estimate of $53.9 billion up from $47.3 billion
in 2010
(2)
Health Care Reform
–
Adds 16 million new Medicaid recipients beginning 2013
–
Deliver Mental Health Parity
–
Boost community health focus with $11 billion to health centers over next
10 years and 20 million new patients
1)
Centers for Medicare and Medicaid Services
2)
U.S. Dept. of Veterans Affairs
10 |
 11
Revenue grew 5.8% to $699 million from first nine months of 2010
–
Social services up 4.9%
–
NET services up 6.3%
First nine month 2011 revenue up 19% over two year period (2009)
Diluted EPS of $0.85
–
EPS included non-cash charge of $2.5 million or $0.11 for write-off of
unamortized deferred financing fees related to its senior credit
facility
Cash from operations of $32 million
Debt refinancing completed
–
New $140 million senior secured credit facility
–
Interest savings of approximately 300 basis points
Continued Growth in
2011 First Nine Months |
 12
Providence: Competitively Positioned
Strong Business with Track Record of Success
Continued Growth Expected from Both Social
Services and Transportation Businesses
Positioned to Benefit from Increased Medicaid
Enrollment and Trend toward Home and
Community Based Care
Potential to Diversify Into New Payer Client
Segments through Organic and/or Acquisitive
Growth
Strong Cash Flow and Commitment to Deleverage
1
Centers for Medicare and Medicaid Services
2
U.S. Dept. of Veterans Affairs |