DENVER, CO – ModivCare Inc. (NASDAQ:MODV), a transportation services company with a market capitalization of $255 million, disclosed on Friday that two of its board members, Christopher S. Shackelton and Rahul Samant, have stepped down from their positions. The resignations, effective today, are not due to any disagreements with the company's practices or policies.
The company's board has acted promptly to address the vacancies by appointing Leslie V. Norwalk as the Interim Chair of the Board, also effective today. This transition comes at a time when the company is navigating the complex landscape of transportation services.
ModivCare, formerly known as Providence Service Corp, operates under the Transportation Services sector and is incorporated in Delaware. The company's headquarters are located on Layton Avenue in Denver, Colorado.
In other recent news, ModivCare Inc. reported third-quarter revenue of $702 million and an adjusted EBITDA of $43 million, aligning with market expectations. The company's Personal Care Services (PCS) segment grew by 5%, and operational improvements were noted in the Non-Emergency Medical (TASE:PMCN) Transportation (NEMT) segment. Despite a net loss of $27 million, ModivCare has revised its adjusted EBITDA guidance for 2024 to between $170 million and $180 million.
Looking ahead, the company projects a 10% increase in adjusted EBITDA for 2025, driven by membership growth and new contracts. ModivCare is also working on amending its credit agreement and managing a contract receivable balance of $110 million. The company's CEO, Heath Sampson, discussed strategic positioning and operational efficiency as key to navigating healthcare complexities.
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