ModivCare Inc (MODV) 2023 Q2 法說會逐字稿

Good morning, and welcome to Modivcare's Second Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please note that this conference is being recorded.

早上好，歡迎參加 Modivcare 2023 年第二季度財務業績電話會議。 （操作員說明）請注意，本次會議正在錄製中。

I will now turn the call over to Kevin Ellich, Head of Investor Relations. Thank you. Please go ahead.

我現在將把電話轉給投資者關係主管凱文·埃里奇(Kevin Ellich)。謝謝。請繼續。

Good morning, and thank you for joining Modivcare's Second Quarter 2023 Earnings Conference Call and Webcast. Joining me today is Heath Sampson, Modivcare's President and Chief Executive Officer; and Ken Shepard, Head of Finance.

早上好，感謝您參加 Modivcare 2023 年第二季度收益電話會議和網絡廣播。今天加入我的是 Modivcare 總裁兼首席執行官 Heath Sampson；和財務主管肯·謝潑德 (Ken Shepard)。

Before we get started, I want to remind everyone that during today's call, management will make forward-looking statements under the Private Securities Litigation Reform Act. These 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 in the company's filings with the SEC.

在我們開始之前，我想提醒大家，在今天的電話會議中，管理層將根據《私人證券訴訟改革法案》做出前瞻性聲明。這些陳述涉及風險、不確定性和其他因素，可能導致實際結果或事件與預期存在重大差異。有關這些因素的信息包含在今天的新聞稿和公司向 SEC 提交的文件中。

We will also discuss non-GAAP financial measures to provide additional information to investors. A definition of these non-GAAP financial measures and to the extent applicable, a reconciliation to their most directly comparable GAAP financial measures is included in our press release and Form 8-K filed with the SEC. A replay of this conference call will be available approximately 1 hour after today's call concludes and will be posted on our website, modivcare.com. This morning, Heath Sampson will begin with opening remarks, Ken Shepard will review our financial results, then we'll open the call for questions.

我們還將討論非公認會計準則財務指標，以便為投資者提供更多信息。我們的新聞稿和向 SEC 提交的 8-K 表中包含了這些非 GAAP 財務指標的定義以及在適用的情況下與其最直接可比的 GAAP 財務指標的調節表。今天的電話會議結束後大約 1 小時將提供本次電話會議的重播，並將發佈在我們的網站 modivcare.com 上。今天早上，希思·桑普森將首先致開幕詞，肯·謝潑德將回顧我們的財務業績，然後我們將開始提問。

With that, I'll turn the call over to Heath.

這樣，我就把電話轉給 Heath。

Thank you, Kevin. I appreciate everyone joining us for our second quarter 2023 earnings call. After the market closed yesterday, we reported second quarter revenue of $699 million and adjusted EBITDA of $52 million. The increase in revenue was largely driven by strong performance in our Home division, which includes our personal care and remote patient monitoring segments as well as an increase in transportation trips and provider costs, which partially pass-through in the form of higher revenue in our NEMT segment.

謝謝你，凱文。我感謝大家參加我們的 2023 年第二季度財報電話會議。昨天收盤後，我們報告第二季度收入為 6.99 億美元，調整後 EBITDA 為 5200 萬美元。收入的增長主要是由於我們的家庭部門的強勁業績推動的，其中包括我們的個人護理和遠程患者監護部門以及運輸行程和提供商成本的增加，這部分以我們的收入增加的形式傳遞出來。 NEMT部分。

Our Home division's revenue growth contributed positively to adjusted EBITDA. As for NEMT, the increased revenue we obtained from passing through costs in our shared risk contracts helped offset a portion of the increased service expense. However, this pass-through benefit was more than offset by a negative impact to adjusted EBITDA from our full risk contract, which represent 20% of our NEMT revenue.

我們的家庭部門的收入增長對調整後的 EBITDA 做出了積極貢獻。至於NEMT，我們通過分擔風險合同中的成本轉嫁而獲得的收入增加有助於抵消部分增加的服務費用。然而，這種轉嫁收益被我們的全風險合同對調整後 EBITDA 的負面影響所抵消，該合同占我們 NEMT 收入的 20%。

Similar to other companies in the health care industry, we are seeing a rise in utilization of our services as we see progress in the nation's recovery from the pandemic. Even though this increase has a negative impact in a portion of our NEMT contracts, it has generally been a positive for our personal care and remote patient monitoring segments, which we are seeing strong demand for our services. I remain optimistic about Modivcare's long-term positioning and strategy. Our unique position in the health care industry enables us to cater to our customers' diverse needs in a continuously evolving market to manage a rapidly aging and chronically ill population amongst rising costs and a complex regulatory environment.

與醫療保健行業的其他公司類似，隨著我們看到國家從大流行中恢復的進展，我們的服務利用率也在上升。儘管這一增長對我們的部分 NEMT 合同產生了負面影響，但總體上對我們的個人護理和遠程患者監護領域是積極的，我們看到這些領域對我們的服務需求強勁。我對 Modivcare 的長期定位和戰略保持樂觀。我們在醫療保健行業的獨特地位使我們能夠在不斷發展的市場中滿足客戶的多樣化需求，在不斷上升的成本和復雜的監管環境中管理快速老齡化和慢性病的人口。

While the intricacies of the NEMT segment are complex, particularly with significant fluctuation that arose during the pandemic and current uncertainties around the Medicaid redetermination, access to transportation is a vital component to ensuring access to clinical inventions and improving [health care].

雖然 NEMT 領域的錯綜複雜，特別是在大流行期間出現的重大波動以及當前醫療補助重新確定的不確定性，但獲得交通是確保獲得臨床發明和改善[醫療保健]的重要組成部分。

There are several key updates to discuss this quarter. First, we increased our 2023 revenue guidance to a range of $2.75 billion to $2.8 billion from $2.575 billion to $2.6 billion. This increase is primarily due to incremental shared risk contract revenue related to higher-than-expected NEMT revenue from trip volume and provider cost. Despite the increase in revenue, we have lowered our 2023 adjusted EBITDA guidance to $200 million to $210 million from $225 million to $235 million. This reduction is primarily related to items affecting our NEMT segment, including higher trip volumes and higher trip-related costs, particularly in our full risk contracts and timing of new contract implementations being delayed to early 2024, which were previously expected to offset contract attrition from prior years.

本季度有幾個關鍵更新需要討論。首先，我們將 2023 年收入指導從 25.75 億美元至 26 億美元上調至 27.5 億美元至 28 億美元。這一增長主要是由於與出行量和提供商成本高於預期的 NEMT 收入相關的分擔風險合同收入增加。儘管收入有所增加，我們仍將 2023 年調整後 EBITDA 指導從 2.25 億美元至 2.35 億美元下調至 2 億美元至 2.1 億美元。這一減少主要與影響我們 NEMT 部門的項目有關，包括旅行量增加和旅行相關成本增加，特別是我們的全風險合同以及新合同實施時間推遲到 2024 年初，此前預計這將抵消前幾年。

Next, I'd like to address our second quarter cash flow from operations, which was negative $108 million, mainly due to a $96 million decrease in our net contract payables, less receivable balance during the quarter, along with a onetime $9.6 million arbitration settlement with a former employee. Post the pandemic, coupled with a shift to more shared risk NEMT contracts, we experienced a temporary timing mismatch between payments and collections, which created a large payable balance that we've been reducing over the past year.

接下來，我想談談我們第二季度的運營現金流，為負1.08 億美元，主要是由於我們的合同應付淨額減少了9600 萬美元，本季度應收賬款餘額減少，以及一次性的960 萬美元仲裁和解與一名前僱員。疫情過後，加上轉向更多分擔風險的 NEMT 合約，我們經歷了付款和收款之間暫時的時間不匹配，這造成了我們在過去一年中一直在減少的大量應付餘額。

The second quarter of 2023 marks a notable shift in our working capital. We've resolved pandemic era balance sheet disparities, transitioning into a net receivable position where our contract receivables surpass our contract payables. This occurred earlier than anticipated, largely due to accelerate payments from a few large state clients. Furthermore, these clients now have established clear time lines for reconciliation, adding additional layer of predictability to our cash flow.

2023 年第二季度標誌著我們的營運資本發生顯著變化。我們已經解決了大流行時代的資產負債表差異，過渡到應收賬款淨額，即我們的合同應收款超過了合同應付賬款。這種情況發生得比預期要早，主要是由於一些大型國有客戶加速付款。此外，這些客戶現在已經制定了明確的對賬時間表，為我們的現金流增加了額外的可預測性。

We anticipate the collection of these receivables to balance out, if not surpass payable repayments for the rest of the year, positively impacting our cash flow in the second half of 2023. Our effort to realign contracts with our customers' needs is yielding positive results. We've safeguarded our margins, trading some pandemic era upside for long-term stability. Now our cash flow mirrors our P&L more closely, indicating improved financial management and a balance between profitability and customer satisfaction.

我們預計這些應收賬款的收回即使不超過今年剩餘時間的應付還款，也能平衡，從而對我們2023 年下半年的現金流產生積極影響。我們根據客戶需求重新調整合同的努力正在取得積極成果。我們保護了我們的利潤，用一些大流行時代的優勢換取了長期穩定。現在，我們的現金流更緊密地反映了我們的損益表，表明財務管理有所改善以及盈利能力和客戶滿意度之間的平衡。

During the second quarter, we borrowed $111.5 million on our revolving credit facility to support repayments on contract payables. As of June 30, 2023, our net leverage ratio was 4.7x. We knew we were going to be at this leverage point. However, as noted earlier, we anticipated paying off a couple of key customers in line with prior history. Prioritizing long-term customer relationships, we agreed to accelerate related contract payables of approximately $65 million into Q2.

第二季度，我們通過循環信貸額度借入 1.115 億美元，以支持合同應付款項的償還。截至2023年6月30日，我們的淨槓桿率為4.7倍。我們知道我們將處於這個槓桿點。然而，如前所述，我們預計會根據之前的歷史情況償還一些關鍵客戶的款項。優先考慮長期客戶關係，我們同意將約 6500 萬美元的相關合同應付款項加速到第二季度。

Moving forward, we anticipate generating substantial cash flow, which we intend to utilize for revolver paydowns. This uplift will be fueled by normalized working capital, the strong core cash flow from our low capital-intensive businesses, our quarterly supplemental presentation on our IR website provides a detailed cash flow overview and a view of the expectations for the second half of 2023.

展望未來，我們預計將產生大量現金流，並打算將其用於左輪手槍付款。這種增長將由正常化的營運資本、來自我們的低資本密集型業務的強勁核心現金流推動，我們在 IR 網站上的季度補充介紹提供了詳細的現金流概覽和 2023 年下半年的預期。

To conclude the balance sheet point, our annual goodwill assessment resulted in a noncash goodwill impairment charge of $183 million within our personal care and remote patient monitoring segments. It is important to note that this is a noncash expense and does not impact our operation cash flows or ongoing activities. Instead it aligns with segments' carrying value with their current fair market value.

總結資產負債表點，我們的年度商譽評估導致我們的個人護理和遠程患者監測部門產生了 1.83 億美元的非現金商譽減值費用。值得注意的是，這是一項非現金費用，不會影響我們的運營現金流或持續活動。相反，它使分部的賬面價值與其當前的公平市場價值保持一致。

Despite this noncash charge, these segments are performing well. And what's more, we see that personal care and remote patient monitoring segment as key tenets of our strategy to unlock value-based care arrangements with supportive care, evidenced by new contracts. This makes us more enthusiastic about the long-term prospects, and we anticipate their performance will surpass our initial expectations at the time of the acquisition.

儘管存在非現金費用，這些部門仍表現良好。更重要的是，我們認為個人護理和遠程患者監測部分是我們戰略的關鍵原則，以支持性護理來解鎖基於價值的護理安排，新合同證明了這一點。這讓我們對長期前景更加充滿熱情，我們預計他們的業績將超出我們收購時的最初預期。

We remain focused on driving strategic measures to ensure their performance and deliver long-term shareholder value.

我們仍然專注於推動戰略措施，以確保其績效並實現長期股東價值。

Next, I want to address the topic that's the top of mind of all of our investors, Medicaid redetermination. There has been a lot of industry information about redetermination and some states have taken an aggressive approach to redetermination, while others are being more thoughtful to ensure eligible Medicaid members access to care is not disrupted evidence by 12 states pausing procedural terminations and 35 other states having received approval for mitigation plans to address a number of issues. That said, to date, we have seen minimal impact from Medicaid redeterminations and our membership continues to track in line with our forecast expectations.

接下來，我想談談我們所有投資者最關心的話題：醫療補助重新確定。關於重新確定的行業信息很多，一些州採取了積極的重新確定方法，而其他州則更加周到地確保符合資格的醫療補助成員獲得護理的機會不會因12 個州暫停程序終止和其他35 個州暫停程序終止而受到干擾。獲得了緩解計劃的批准，以解決許多問題。也就是說，迄今為止，我們看到醫療補助重新確定的影響微乎其微，我們的會員資格繼續符合我們的預測預期。

I would also like to point out that of our 34.3 million members, 27.1 million are Medicaid and 7.2 million are Medicare Advantage, which are not affected by redetermination. Our MA membership has grown from 6 million or 20% since June 30, 2022, primarily due to new contract wins and existing contract membership growth.

我還想指出的是，在我們的3430萬會員中，有2710萬是Medicaid會員，720萬是Medicare Advantage會員，這些會員不受重新確定的影響。自 2022 年 6 月 30 日以來，我們的 MA 會員數量從 600 萬增加到 20%，這主要是由於新合同的贏得和現有合同會員的增長。

While redetermination may lead to some Medicaid disenrollment, we expect regular growth in Medicaid and MA programs, providing a counterbalance to redetermination impacts. For the second half of 2023, we estimate Medicaid redetermination could create an adjusted EBITDA headwind of approximately $5 million to $10 million, which is embedded in our guidance.

雖然重新決定可能會導致一些醫療補助計劃退出，但我們預計醫療補助和 MA 計劃會定期增長，從而抵消重新決定的影響。對於 2023 年下半年，我們估計醫療補助重新確定可能會造成約 500 萬至 1000 萬美元的調整後 EBITDA 阻力，這已納入我們的指導中。

Looking towards 2024. We are currently forecasting a potential growth impact to adjusted EBITDA of $20 million to $40 million from redetermination. Yet, as I will discuss later, our strategic initiatives are expected to drive gross savings of $30 million to $50 million over the next 12 to 18 months. Rest assured, our data models, industry insights and customer feedback indicate our projects aligned with what we are seeing in the market and redetermination will be manageable. We'll provide more updates as things progress.

展望 2024 年。我們目前預測重新確定對調整後 EBITDA 的潛在增長影響為 2000 萬至 4000 萬美元。然而，正如我稍後將討論的，我們的戰略舉措預計將在未來 12 至 18 個月內節省 3000 萬至 5000 萬美元的總成本。請放心，我們的數據模型、行業洞察和客戶反饋表明我們的項目與我們在市場上看到的情況一致，並且重新確定將是可控的。隨著事情的進展，我們將提供更多更新。

Before I review some of our operational highlights, I'm eager to provide some substantial updates to our team. We recently brought on Jessica Krall as our new Chief Information Officer. Jessica came to us from United Healthcare, and she has an extensive background in health care IT leadership and brings a wealth of experience and expertise to our team. Further bolstering our team, we hired a new Chief People Officer, and we will announce his name once he fulfills his prior company commitments. This individual has proven experience nurturing organizations with significant field employees, and we will -- and he will be instrumental in further supporting our 20,000 team members and fostering our company's growth.

在回顧我們的一些運營亮點之前，我渴望向我們的團隊提供一些實質性的更新。我們最近任命 Jessica Krall 擔任新任首席信息官。 Jessica 從 United Healthcare 來到我們這裡，她在醫療保健 IT 領導方面擁有豐富的背景，為我們的團隊帶來了豐富的經驗和專業知識。為了進一步加強我們的團隊，我們聘請了一位新的首席人力官，一旦他履行了之前對公司的承諾，我們將宣布他的名字。此人在培養擁有大量現場員工的組織方面擁有豐富的經驗，我們將——他也將在進一步支持我們 20,000 名團隊成員和促進我們公司的發展方面發揮重要作用。

I'm also thrilled to announce that we've also received agreement from an experienced and talented individual as our next Chief Financial Officer, who will join us in early September and once we are able to officially announce her name, we will issue a press release and Form 8-K. What I can tell you is she has multi-industry experience and a deep health care understanding with a multi-decade career, which will play a pivotal role in shaping our future direction.

我還很高興地宣布，我們還收到了一位經驗豐富、才華橫溢的個人的同意，擔任我們的下一任首席財務官，她將於9 月初加入我們，一旦我們能夠正式宣布她的名字，我們將發布新聞稿授權書和表格 8-K。我可以告訴你的是，她擁有多行業經驗和數十年職業生涯對醫療保健的深刻理解，這將在塑造我們未來的方向方面發揮關鍵作用。

With these recent additions, our executive team will continue to reflect our unwavering commitment to attract exceptional individuals in their respective fields. As we often say, it's all about the people. And I'm confident that once all of these individuals on board, we will have the right team in place to drive our transformation and strategy forward.

隨著最近的新增人員，我們的管理團隊將繼續體現我們堅定不移的承諾，吸引各自領域的傑出人才。正如我們常說的，一切以人為本。我相信，一旦所有這些人加入，我們將擁有合適的團隊來推動我們的轉型和戰略向前發展。

Lastly, I want to extend a heartfelt gratitude to our extraordinary team for their steadfast support while I balance the dual roles of CEO and CFO. On a lighter note, I can affirm that I'm excited about finally not having to juggle 2 jobs.

最後，我要衷心感謝我們優秀的團隊在我平衡首席執行官和首席財務官雙重角色的過程中給予我的堅定支持。輕鬆地說，我可以肯定的是，我很高興終於不用兼顧兩份工作。

Now let's discuss the market, our strategy and segment execution. Starting with an important change in the market. As we navigate the rapidly evolving health care landscape, it's clear that the industry is being revolutionized by new CMS strategic mandates, which is accelerating the shift to fee-for-value from fee-for-service. This is also driving a paradigm shift towards more holistic member care.

現在讓我們討論市場、我們的戰略和細分市場執行。從市場的一個重要變化開始。當我們應對快速發展的醫療保健格局時，很明顯，新的 CMS 戰略指令正在給該行業帶來革命性的變化，這正在加速從按服務收費向按價值收費的轉變。這也推動了向更全面的會員關懷的範式轉變。

It is anticipated that by 2030, 100% of Medicare Advantage and traditional Medicare and approximately 50% of Medicaid will transition towards value-based alternative payment models. As payers and providers grappled with increase in chronically ill populations, higher costs and tighter reimbursement rates, coupled with an evolving complex regulatory landscape, the quest for an integrated health care experience that combines quality, affordability and interconnected services is paramount.

預計到 2030 年，100% 的 Medicare Advantage 和傳統 Medicare 以及約 50% 的 Medicaid 將過渡到基於價值的替代支付模式。隨著付款人和提供者努力應對慢性病人口的增加、更高的成本和更嚴格的報銷率，再加上不斷變化的複雜監管環境，尋求將質量、負擔能力和互聯服務結合起來的綜合醫療保健體驗至關重要。

At Modivcare, we've enhanced our strategy and separated into the 3 parts in response to these pressing market needs: one, develop a scalable platform through operational excellence and automation; two, build a customer-centric sales and growth platform; three, enhance digital and clinical capabilities to participate in value-based arrangement models. Our strategy is powered by digital transformation, which is crucial in our fast-paced, data-driven artificial intelligence era.

在 Modivcare，我們增強了我們的戰略，並將其分為三個部分，以應對這些緊迫的市場需求：一是通過卓越運營和自動化開發一個可擴展的平台；二、搭建以客戶為中心的銷售和成長平台；三、增強數字化和臨床能力，參與基於價值的安排模式。我們的戰略以數字化轉型為動力，這在快節奏、數據驅動的人工智能時代至關重要。

The first phase of our strategy revolves around operational excellence, which we are proud of the improvements we've made over the past year, and further automation sets a solid foundation for our scaled platform of solutions.

我們戰略的第一階段圍繞卓越運營，我們對過去一年所取得的改進感到自豪，進一步的自動化為我們的規模化解決方案平台奠定了堅實的基礎。

Over the past year, we've made considerable strides in upgrading our talent and culture, transitioning from a decentralized and disparate model to a shared service and central operations model. To better understand the scope of this transformation, approximately $65 million of annual salary has been transitioned, and we expect to upgrade and reallocate back approximately $30 million. Phase 2, running parallel to Phase 1, involves fostering an organization that prioritizes growth through a coordinated model of relationship management, referral execution and hunting new opportunities, all backed by marketing and centralized sales operations.

在過去的一年裡，我們在人才和文化升級方面取得了長足進步，從分散和分散的模式轉變為共享服務和集中運營模式。為了更好地了解這一轉型的範圍，大約 6500 萬美元的年薪已經轉變，我們預計將升級並重新分配回大約 3000 萬美元。第二階段與第一階段並行，涉及培育一個通過關係管理、推薦執行和尋找新機會的協調模型優先考慮增長的組織，所有這些都得到營銷和集中銷售運營的支持。

Finally, Phase 3 will participate in value-based arrangements in addition to fee-for-service. We will harness our newly developed digital and clinical connected capabilities to augment our supportive care services by providing longitudinal data collection for our customers, members and design engagement models, enabling virtual connections to care. Far from being conflicting strategies, these 3 phases are designed to complement each other, strengthen each other together.

最後，除了按服務付費之外，第三階段還將參與基於價值的安排。我們將利用新開發的數字和臨床互聯功能，為我們的客戶、會員提供縱向數據收集並設計參與模型，從而增強我們的支持性護理服務，從而實現護理的虛擬連接。這三個階段並非相互衝突的戰略，而是相輔相成、相互加強的。

Let's now delve into our progress for each of our segments. Our focus on centralization and operational excellence facilitated by technology has considerably improved our NEMT services, We're meeting or exceeding all our customers' quality and service level requirements as seen in our key performance indicators, such as on-time performance and reduced miss trips. Our multimodal transportation partnership strategy has led to increased customer satisfaction and reduced costs. We are transitioning from traditional call centers to omnichannel options, improving member engagement at lower cost. Further automation of the transportation processes through unified tech-enabled dispatch is a key priority as well. We anticipate savings between $30 million to $50 million over the next 12 to 18 months through these continued centralization, operational excellence and automation efforts.

現在讓我們深入研究每個部分的進展。我們對技術促進的集中化和卓越運營的關注極大地改善了我們的NEMT 服務，我們滿足或超過了所有客戶的質量和服務水平要求，如我們的關鍵績效指標所示，例如準點率和減少的錯過行程。我們的多式聯運合作夥伴戰略提高了客戶滿意度並降低了成本。我們正在從傳統的呼叫中心過渡到全渠道選項，以更低的成本提高會員參與度。通過統一的技術支持調度進一步實現運輸流程自動化也是一個關鍵優先事項。我們預計，通過這些持續的集中化、卓越運營和自動化工作，未來 12 至 18 個月將節省 3000 萬至 5000 萬美元。

We expect these initiatives will mitigate the headwinds of Medicaid redetermination and higher utilization.

我們預計這些舉措將減輕醫療補助重新確定和提高利用率的不利因素。

Our sales strategy within the NEMT segment has shown promising results, albeit slower than we wanted. Year-to-date, through June 30, we've secured new MCO businesses with a total contract value of $110 million, nearly all of which will commence in 2024.

我們在 NEMT 領域的銷售策略已顯示出可喜的成果，儘管比我們想要的要慢。今年迄今，截至 6 月 30 日，我們已獲得總合同價值 1.1 億美元的新 MCO 業務，幾乎所有業務都將於 2024 年開始。

Including the contract renewals and expansions, the total contract value won this year amounts to over $500 million over 3- to 5-year contract terms. Over the next 5 years, we foresee around $1.3 billion worth of state NEMT contracts up for RFP, of which we currently serve approximately $700 million. Our team has been successful in remaining business, and we are delivering higher service levels than historically. We are confident in retaining the majority of the contracts we have, and we aim to win and convert additional market share.

包括續約和擴展合同在內，今年贏得的合同總價值超過 5 億美元，合同期限為 3 至 5 年。在未來 5 年內，我們預計價值約 13 億美元的州 NEMT 合同將用於 RFP，其中我們目前服務的金額約為 7 億美元。我們的團隊在剩餘業務方面取得了成功，並且我們正在提供比以往更高的服務水平。我們有信心保留我們所擁有的大部分合同，我們的目標是贏得併轉化更多的市場份額。

Additionally, we will continue to pursue approximately $700 million of new opportunities in our MCO pipeline, which is more receptive and frankly demanding that we offer more holistic solutions beyond just transportation.

此外，我們將繼續在我們的 MCO 管道中尋求約 7 億美元的新機會，這些機會更容易接受，坦率地要求我們提供除運輸之外的更全面的解決方案。

In personal care, our focus on centralization and operational excellence has streamlined our services, enabling better regulatory compliance. We've embarked on a full transformation of this segment, shifting from disparate local model to a more unified regional model. This has also allowed us to reallocate resources to growth. Ours increased 3.4% in the second quarter as we continue to gain momentum towards additional growth projected in the second half of the year.

在個人護理領域，我們對集中化和卓越運營的關注簡化了我們的服務，從而更好地遵守法規。我們已經開始對該細分市場進行全面轉型，從分散的本地模式轉變為更加統一的區域模式。這也使我們能夠重新分配資源以促進增長。我們的第二季度增長了 3.4%，因為我們繼續獲得預計下半年進一步增長的勢頭。

Quickly commenting on CMS' HCBS proposed rule, we've aligned our feedback with industry stakeholders supportive of the role, however, expressing concerns about the 80-20 wage provision noting that it will further exasperate the supply and demand imbalance for personal care services. It is important to note that we are optimistic that the rule will drive further professionalization. And once the final rule is issued, it will not be implemented until 4 years from now.

我們快速評論了 CMS 的 HCBS 擬議規則，並與支持該角色的行業利益相關者協調了我們的反饋，但對 80-20 的工資規定表示擔憂，指出這將進一步加劇個人護理服務的供需失衡。值得注意的是，我們樂觀地認為該規則將推動進一步的專業化。而最終規則一旦發布，要四年後才會實施。

In the RPM segment, our operational excellence strategies have improved efficiency, allowing us to provide elevated care levels, while also integrating the Guardian Medical Monitoring acquisition from last May. We've leveraged technology to boost efficiency, enable vital data collection and fostering growth. Within PERS, we are seeing market share gains and maintaining strong pipeline. For example, activations were up 10% year-over-year and enrollments increased 81% compared to first quarter. We are also adding capabilities to enhance our vitals and medication management and expect meaningful expansion starting this year.

在 RPM 領域，我們的卓越運營戰略提高了效率，使我們能夠提供更高的護理水平，同時還整合了去年 5 月收購的 Guardian Medical Monitoring。我們利用技術來提高效率、收集重要數據並促進增長。在 PERS 中，我們看到市場份額不斷增長，並保持著強勁的產品線。例如，與第一季度相比，激活量同比增長 10%，註冊人數增長 81%。我們還增加了增強生命體徵和藥物管理的功能，並期望從今年開始進行有意義的擴展。

Under the careful management of our newly dedicated strategy, product and innovation team, led by Jeff Bennett, previously the CEO of Higi Healthcare Solutions, our strategy integrates cutting-edge technology and data management with our newly developed operational excellence and clinical capabilities.

在我們新成立的專門戰略、產品和創新團隊（由Higi Healthcare Solutions 前首席執行官Jeff Bennett 領導）的精心管理下，我們的戰略將尖端技術和數據管理與我們新開發的卓越運營和臨床能力相結合。

This strategy empowers us to capture longitudinal data from our customers' members, enabling the development of virtual engagement model and facilitating value-based arrangements. In 2023, we expect to generate meaningful dollars from innovation and value-based payments. We have over 20 active programs focused on member insights and opportunities to move into value-based arrangements that give us the confidence that our innovation approach is aligned to our customers' needs.

這一戰略使我們能夠捕獲客戶會員的縱向數據，從而開發虛擬參與模型並促進基於價值的安排。到 2023 年，我們預計將通過創新和基於價值的支付產生有意義的收入。我們有超過 20 個積極的計劃，專注於會員見解和進入基於價值的安排的機會，這讓我們相信我們的創新方法符合客戶的需求。

I'd like to provide a brief update on our equity investment in Matrix Medical, which we believe holds significant value for Modivcare. Matrix saw continued momentum in the second quarter and delivered another strong quarter driven by assessment growth of 30%. For context, adjusted EBITDA range of $50 million to $100 million is still the correct results to anchor value from. We are confident that Matrix is on the right trajectory to create significant value and we remain aligned with Frazier in monetizing our 44% minority interest at the right time.

我想簡要介紹一下我們對 Matrix Medical 的股權投資的最新情況，我們認為這對 Modivcare 具有重大價值。 Matrix 在第二季度繼續保持強勁勢頭，並在評估增長 30% 的推動下再次實現強勁的季度業績。就背景而言，調整後的 EBITDA 範圍 5000 萬至 1 億美元仍然是錨定價值的正確結果。我們相信 Matrix 正走在創造重大價值的正確軌道上，並且我們將與 Frazier 保持一致，在正確的時間將我們 44% 的少數股權貨幣化。

In closing, I'd like to thank our entire team for their hard work and dedication. The last year has been a period of significant change for us. We've remained committed to providing the highest quality of service as we have done amazing things to help transform this business. We continue to build on our culture where compassion meets profitability and will continue to guide us as we move forward. I'm incredibly proud of what we have achieved and the transformation we've undergone. We are clearly on the right trajectory, and I see this continuing as we remain committed to growing our supportive care services focused on the social determinants of health.

最後，我要感謝我們整個團隊的辛勤工作和奉獻精神。去年對我們來說是一個發生重大變化的時期。我們仍然致力於提供最高質量的服務，因為我們做了令人驚奇的事情來幫助轉變這項業務。我們將繼續發展我們的文化，讓同情心與盈利能力相結合，並將繼續指導我們前進。我對我們所取得的成就和所經歷的轉變感到無比自豪。我們顯然正走在正確的軌道上，而且我認為這種情況將持續下去，因為我們仍然致力於發展以健康問題社會決定因素為重點的支持性護理服務。

Now I'd like to pass the call to Ken Shepard, our Head of Finance, who will provide an overview of our second quarter financial performance. Ken?

現在我想將電話轉給我們的財務主管 Ken Shepard，他將概述我們第二季度的財務業績。肯？

Thank you, Heath, and good morning, everyone. Second quarter 2023 revenue increased 11% year-over-year to $699 million, driven by approximately 11% growth in mobility and 11% growth in our Home division. Net loss was $191 million, which included a noncash goodwill impairment of $183 million, and second quarter adjusted EBITDA was $52 million, which was 13% lower than second quarter 2022 and modestly lower than our expectations.

謝謝希斯，大家早上好。受移動業務增長約 11% 和家庭部門增長 11% 的推動，2023 年第二季度收入同比增長 11% 至 6.99 億美元。淨虧損為 1.91 億美元，其中包括 1.83 億美元的非現金商譽減值，第二季度調整後 EBITDA 為 5200 萬美元，比 2022 年第二季度低 13%，略低於我們的預期。

NEMT second quarter revenue of $497 million was driven by a 1.5% year-over-year increase in average monthly members to 34.3 million and a 9% increase in revenue per member per month due to repricing and partial pass-through of costs associated with our higher utilization.

NEMT 第二季度收入為4.97 億美元，主要得益於每月平均會員數量同比增長1.5%，達到3430 萬，以及由於重新定價和部分轉嫁與我們相關的成本，每個會員每月的收入增長了9%。利用率更高。

Trip volume in the second quarter increased 6.5% sequentially, while monthly utilization per member increased to 8.5% compared to 8.1% in the first quarter. Purchased services per trip increased 2.8% sequentially due to increased utilization, resulting in more volume and related service expense. This was partially offset by a 3.9% reduction in payroll and other expense per trip due to early success we are seeing reducing our cost-to-trip ratio in 2023. During the quarter, we saw a minimal impact from redetermination, which was in line with our expectations.

第二季度的出行量環比增長了 6.5%，而每位會員的月度使用率則從第一季度的 8.1% 增至 8.5%。由於利用率提高，每次行程購買的服務量環比增長 2.8%，導致銷量和相關服務費用增加。由於早期的成功，我們看到2023 年的成本與旅行比率有所降低，因此每次旅行的工資和其他費用減少了3.9%，部分抵消了這一影響。在本季度，我們看到重新確定的影響很小，這符合與我們的期望。

NEMT adjusted EBITDA for the second quarter was approximately $29 million, down 38% year-over-year due to increased service expense per trip on a higher-than-expected trip volume as well as last year benefiting by $7 million from an out-of-period repricing benefit.

NEMT 第二季度調整後 EBITDA 約為 2,900 萬美元，同比下降 38%，原因是出行量高於預期，每次出行服務費用增加，並且去年受益於超出預期的 700 萬美元。 -期間重新定價收益。

Adjusted G&A expense decreased 8.5% year-over-year and was 1% lower sequentially as we continue to control costs in this segment. We remain focused on our mobility initiatives to reduce cost and drive efficiencies, which will improve performance and increase member satisfaction, and we expect to recognize the benefits from these initiatives going forward.

由於我們繼續控制該部門的成本，調整後的一般及行政費用同比下降 8.5%，環比下降 1%。我們仍然專注於降低成本和提高效率的移動計劃，這將提高績效並提高會員滿意度，並且我們希望認識到這些計劃未來帶來的好處。

Turning to our Home division. Second quarter personal care revenue increased 11% year-over-year to $180 million, driven by 3.4% growth in hours and a 7% increase in revenue per hour, including a reserve reversal from last quarter of $2.6 million, which is included in our run rate going forward. For the full year, we continue to expect revenue per hour and service expense per hour growth will remain in the mid-single-digit range.

轉向我們的家庭部門。第二季度個人護理收入同比增長11%，達到1.8 億美元，這得益於工作時間增長3.4% 和每小時收入增長7%，其中包括與上季度相比儲備金逆轉的260 萬美元，該金額計入我們的未來的運行率。就全年而言，我們繼續預計每小時收入和每小時服務費用的增長將保持在中個位數範圍內。

Personal care adjusted EBITDA for the second quarter was $24 million or 13.4% of revenue. Excluding the reserve reversal from last quarter, related to revenue collections, personal care adjusted EBITDA margin would have been 1.5% lower than the 13.4% we reported this quarter. We expect continued upward wage pressure could result in margins in the second half of 2023, moving back towards the lower end on our long-term target range of 10% to 12%, ahead of potential reimbursement rate increases in 2024. However, we remain focused on accelerating our personal care growth.

第二季度個人護理調整後 EBITDA 為 2400 萬美元，佔收入的 13.4%。不包括上季度與收入徵收相關的準備金逆轉，個人護理調整後 EBITDA 利潤率將比我們本季度報告的 13.4% 低 1.5%。我們預計，持續的工資上漲壓力可能會導致 2023 年下半年的利潤率在 2024 年報銷率可能增加之前回到 10% 至 12% 的長期目標範圍的下限。但是，我們仍然專注於加速我們的個人護理增長。

In remote patient monitoring, or RPM segment, revenue increased 15% year-over-year to $19 million, driven by strong referral sales as the combination of our RPM business with the Guardian Medical Monitoring acquisition, which annualized in May, is performing well. RPM adjusted EBITDA was $7.2 million for 37.5% margin, which is at the high end of our long-term margin target. Again, our monitoring team is executing and performing well. We are seeing operating efficiencies and leverage from the Guardian acquisition and expect continued growth as we expand and add programs in new and existing states.

在遠程患者監護 (RPM) 領域，收入同比增長 15% 至 1,900 萬美元，這得益於我們的 RPM 業務與 5 月份年化的 Guardian Medical Monitoring 收購相結合表現良好，轉介銷售強勁。 RPM 調整後 EBITDA 為 720 萬美元，利潤率為 37.5%，處於我們長期利潤目標的高端。同樣，我們的監控團隊執行力和表現良好。我們看到收購衛報帶來的運營效率和影響力，並預計隨著我們在新州和現有州擴大和增加項目，運營效率和影響力將持續增長。

Turning to our cash flow and balance sheet. Consolidated cash flow from operations in the second quarter of 2023 was a use of approximately $108 million. The large cash use is attributable to a $79 million decrease in contract payables, $17 million increase in contract receivables and a $9.6 million arbitration settlement. As a result of the accelerated contract payable settlements, we are now in a net contract receivable position at quarter end, which gives us ability to offset contract payable payments with receivable collections in a more normalized and manageable way going forward. I'd also like to point out that contract receivables collections increased to approximately $16 million in Q2 from $6 million in the first quarter and we expect collections will continue to improve.

轉向我們的現金流和資產負債表。 2023 年第二季度合併運營現金流使用量約為 1.08 億美元。大量現金使用是由於合同應付賬款減少 7900 萬美元、合同應收賬款增加 1700 萬美元以及仲裁和解 960 萬美元。由於合同應付賬款結算加速，我們目前在季度末處於淨合同應收賬款狀況，這使我們能夠在未來以更加規範和易於管理的方式用應收賬款收款來抵消合同應付付款。我還想指出，合同應收賬款收款從第一季度的 600 萬美元增加到第二季度的約 1600 萬美元，我們預計收款情況將繼續改善。

Capital expenditures in the second quarter were $8 million, which was 1.1% of revenue. We think that capital expenditures in the range of 1% to 1.5% of revenue is a good run rate going forward. We ended the second quarter with approximately $7 million in cash and had $126.5 million drawn on our $325 million revolver. Our $1 billion of long-term debt was flat sequentially and remains all unsecured debt at fixed rates.

第二季度資本支出為800萬美元，佔收入的1.1%。我們認為資本支出佔收入的 1% 至 1.5% 是未來良好的運行率。第二季度末，我們擁有約 700 萬美元現金，並從我們價值 3.25 億美元的左輪手槍中提取了 1.265 億美元。我們 10 億美元的長期債務與上一季度持平，且全部為固定利率無擔保債務。

Our consolidated pro forma net leverage was 4.7x as of June 30, 2023. With our contract receivables now exceeding contract payables, we expect the impact on our cash flow from these accounts in the second half of the year will be more balanced and expect to be able to utilize this improved cash flow profile to repay $30 million to $50 million of our revolving credit facility during the second half of 2023.

截至2023 年6 月30 日，我們的合併預計淨槓桿率為4.7 倍。由於我們的合同應收賬款現已超過合同應付賬款，我們預計下半年這些賬戶對現金流的影響將更加平衡，並預計能夠利用這種改善的現金流狀況在 2023 年下半年償還 3000 萬至 5000 萬美元的循環信貸額度。

During the second quarter, we successfully amended our credit facility to increase our leverage covenant and ensure ample access to liquidity, while the reduction in our net contract payables accelerated. We were pleased by the strong support that we received from our entire bank group led by JPMorgan during the amendment process. In November, the call price for our senior unsecured [5% and 7%, 8%] notes steps down, and we will be closely monitoring the capital markets over the next several quarters as we evaluate refinancing options for these notes.

第二季度，我們成功修改了信貸安排，以提高槓桿率並確保獲得充足的流動性，同時合同應付賬款淨額的減少速度加快。我們很高興在修訂過程中得到了以摩根大通為首的整個銀行集團的大力支持。 11 月份，我們的高級無抵押 [5% 和 7%、8%] 票據的贖回價格下降，我們將在接下來的幾個季度密切關注資本市場，同時評估這些票據的再融資選擇。

We continue to target net leverage of 3x, which we expect to achieve through a combination of debt reduction and EBITDA growth along with potential proceeds from monetizing our investment in Matrix. Our primary expected use of cash going forward will be to pay down our revolver and delever our balance sheet as we remain committed to a disciplined and balanced capital allocation strategy.

我們繼續將淨槓桿率目標定為 3 倍，我們預計通過債務削減和 EBITDA 增長以及將我們對 Matrix 的投資貨幣化的潛在收益相結合來實現這一目標。我們未來對現金的主要預期用途將是償還我們的左輪手槍並減少我們的資產負債表，因為我們仍然致力於遵守紀律和平衡的資本配置策略。

Shifting to guidance. We raised our revenue guidance to a range of $2.75 billion to $2.8 billion, and we lowered our adjusted EBITDA guidance to a range of $200 million to $210 million. The increased revenue guidance was primarily due to higher NEMT utilization and transportation costs driving more revenue from our shared risk contracts. We lowered our adjusted EBITDA guidance due to the higher NEMT utilization and associated costs and a delay in the start of some of our new contract wins, which will start in early 2024.

轉向指導。我們將收入指引上調至 27.5 億美元至 28 億美元範圍，並將調整後 EBITDA 指引下調至 2 億美元至 2.1 億美元範圍。收入指引的增加主要是由於 NEMT 利用率和運輸成本的提高推動了我們的風險共擔合同獲得更多收入。由於 NEMT 利用率和相關成本較高，以及我們將於 2024 年初開始的一些新合同的開始時間推遲，我們降低了調整後的 EBITDA 指導。

To sum things up, our second quarter results were mixed compared to our expectations as revenue was better than expected due to shared risk, cost protection in our NEMT business and adjusted EBITDA was slightly below plan due to higher utilization. Despite these results and our guidance reset, we remain confident about our mission and long-term growth strategy, along with the expected benefits from the initiatives to drive efficiencies and create operating leverage. Our team is working diligently to win new business and improve cash flow, and I want to thank everyone at Modivcare for their hard work and dedication in providing high-quality care and delivering the best experience for our members.

總而言之，我們第二季度的業績與我們的預期相比好壞參半，因為由於共同風險、NEMT 業務的成本保護，收入好於預期，並且由於利用率較高，調整後的 EBITDA 略低於計劃。儘管取得了這些結果並且我們重新調整了指導方針，但我們仍然對我們的使命和長期增長戰略以及提高效率和創造運營槓桿舉措的預期收益充滿信心。我們的團隊正在努力工作，以贏得新業務並改善現金流，我要感謝 Modivcare 的每個人的辛勤工作和奉獻精神，為我們的會員提供高質量的護理和最佳體驗。

This concludes our prepared remarks. Operator, please open the call for questions.

我們準備好的發言到此結束。接線員，請打開電話提問。

(Operator Instructions) The first question today is coming from Bob Labick of CJS Securities.

（操作員說明）今天的第一個問題來自 CJS 證券的 Bob Labick。

Thank you for all of that information. A lot to absorb and digest, but I think it's very helpful for the thesis here. I want to kind of just pick up where you left off in terms of cash flow and make sure, given all the information you just gave, I have a good handle on this and investors too as well. You talked about basically, I guess, netting out the payables and receivables balance, which was $85 million before and now we're at a negative position. So I think that's behind us. And you talked about $30 million to $50 million of free cash flow in the second half to repay the revolver. Does this mean we're kind of at a normalized level overall? The question is, how should we think about working capital swings and free cash flow in 2024 and that ability to refi the November '25 debt and cash flows through that? Or I'm not asking for like a specific number, but more how does working capital affect free cash flow in 2024? And if we have our own EBITDA assumption, we can kind of build our way to that free cash flow number.

感謝您提供所有這些信息。有很多東西需要吸收和消化，但我認為這對這裡的論文非常有幫助。我想從您在現金流方面中斷的地方開始，並確保根據您剛才提供的所有信息，我對這件事和投資者都有很好的把握。我想，您基本上談到了扣除應付賬款和應收賬款餘額，之前為 8500 萬美元，現在我們處於負數狀態。所以我認為這已經過去了。您談到下半年將有 3000 萬至 5000 萬美元的自由現金流來償還左輪手槍。這是否意味著我們總體上處於正常化水平？問題是，我們應該如何考慮 2024 年的營運資本波動和自由現金流，以及通過其重新融資 25 年 11 月債務和現金流的能力？或者我不是要求具體的數字，而是更多地了解營運資金如何影響 2024 年的自由現金流？如果我們有自己的 EBITDA 假設，我們就可以找到自由現金流數字的方法。

Yes, yes. No, it's a good question. Well, first off, as you know, in our Home business, those strong adjusted EBITDA flow through because they're very CapEx light. So you understand that work. So really where -- and then the other thing, the levers that happened in free cash flow, which you could see is these continued investments in technology and platforms, which you see as well. So all that is strong cash flow, the right amount of investment that works. So it gets down to is where we are in the mobility business and then specifically within the working capital related to those payables and receivable.

是的是的。不，這是一個好問題。嗯，首先，如您所知，在我們的家庭業務中，那些強勁的調整後 EBITDA 流動，因為它們的資本支出非常輕。所以你了解這項工作。所以真正在哪裡 - 然後另一件事，自由現金流中發生的槓桿，你可以看到這些對技術和平台的持續投資，你也看到了。因此，重要的是強勁的現金流和適量的投資。因此，歸根結底是我們在移動業務中所處的位置，特別是與那些應付賬款和應收賬款相關的營運資金。

And the one point that you hit on again, which is really important, it's really critical, especially for somebody new coming into here, looking at that delta between the contract payables and contracts receivables. I'm just repeating what you said again, this is the first time that it's flipped to a receivable. So then your question more broadly, how does this work? Basically, our contracts are working post COVID. So the contracts that we've restructured primarily around really implementing these shared risk contracts have been very helpful for us and help protect our kind of long-term margin. So that's -- you will see fluctuations as we move through the years going in quarters. Those will still fluctuate.

您再次提到的一點非常重要，非常關鍵，特別是對於新進入這裡的人來說，查看合同應付賬款和合同應收賬款之間的增量。我只是重複一遍你所說的，這是第一次轉為應收賬款。那麼你的問題更廣泛，這是如何運作的？基本上，我們的合同在新冠疫情之後仍然有效。因此，我們主要圍繞真正實施這些風險共擔合同而重組的合同對我們非常有幫助，有助於保護我們的長期利潤。所以，當我們逐年回顧這些年時，你會看到波動。這些仍然會波動。

So the good thing now though, because of the COVID benefits, now the contracts are going to work how they are. And I think they'll bump around. But the good thing is we have the receivables and the payables. And because we have so many contracts, we expect that to be kind of a normalized working capital fluctuations in and out, not the big swings like we've seen over the last couple of quarters.

所以現在的好處是，由於新冠疫情帶來的好處，現在合同將按原樣運作。我想他們會到處亂撞。但好處是我們有應收賬款和應付賬款。由於我們有如此多的合同，我們預計這將是一種正常化的營運資金進出波動，而不是像過去幾個季度那樣的大幅波動。

And then the other item coming out of COVID now, all the states or MCOs, we have more predictable and rigid time frames for when we pay this back. So it really is kind of a 3- to 6-month time frame. So this predictability and normalization coming out of COVID allows us to have a more predictable cash flow and then a more normalized working capital. So which is why we have a lot of confidence in the back part of this year that we will generate cash flow in accordance with how our P&L works. And I expect that to continue throughout the quarter into 2024.

然後，現在從新冠疫情中得出的另一個項目，所有州或 MCO，我們在償還這筆款項時都有更可預測和更嚴格的時間框架。所以這確實是一個 3 到 6 個月的時間框架。因此，新冠疫情帶來的這種可預測性和正常化使我們能夠擁有更可預測的現金流，以及更正常化的營運資金。這就是為什麼我們對今年下半年充滿信心，我們將根據損益表的運作方式產生現金流。我預計這種情況將持續到 2024 年整個季度。

Okay. Super. And then I think you guys just touched on a potential deleveraging target of 3x leverage. in '24, absent of, I guess, what's the probability of a matrix?

好的。極好的。然後我認為你們剛剛談到了 3 倍槓桿的潛在去槓桿化目標。在 24 年，如果沒有，我猜矩陣的概率是多少？

Yes, in that. So you know where we are now. And to get to 3, we need a monetization of Matrix that is absolutely our long-term target and that's the point of that. But we will continue to delever, like we talked about before, but to do the big jump down that quickly, there need to be some monetization within Matrix. And as you heard on the call, Matrix, that team has done an incredible job, improving the business, shedding assets that didn't work. And then really the performance is in line with what it was years ago and really kind of best-in-class. So that's showing up in the numbers. So we couldn't be more happy with that performance.

是的，在那方面。所以你知道我們現在在哪裡。為了達到 3，我們需要 Matrix 的貨幣化，這絕對是我們的長期目標，這就是重點。但我們將繼續去槓桿化，就像我們之前談到的那樣，但為了快速實現大幅下降，Matrix 內部需要進行一些貨幣化。正如您在電話會議中聽到的那樣，Matrix，該團隊做了一項令人難以置信的工作，改善了業務，剝離了不起作用的資產。而且性能確實與幾年前一致，而且確實是同類中最好的。這體現在數字中。所以我們對這樣的表現感到非常滿意。

And then yes, what's the timing on that? We're very aligned with Frazier. So the good way to think about it, it's getting closer because they're performing. So that's why we put it in there just 2024, which is a very -- it's a reasonable time frame. I don't want to box it in because the most important thing is that it continues to perform and we get the most value. But because of where they are, it could happen in 2024, and that would be a meaningful way for us to delever and get to that target of 3x.

然後是的，時間是什麼時候？我們非常同意弗雷澤的觀點。所以思考這個問題的好方法是，因為他們正在表演，所以距離越來越近了。這就是為什麼我們把它放在 2024 年，這是一個非常合理的時間框架。我不想把它限制起來，因為最重要的是它繼續發揮作用，我們獲得最大的價值。但由於目前的情況，這可能會在 2024 年發生，這對我們去槓桿化並實現 3 倍的目標來說將是一種有意義的方式。

Sure. Yes, that would be great. And then last question, and I'll jump back in queue. Obviously, you discussed the faster recovery in utilization in mobility. And I guess, first, is that just kind of faster pandemic normalization? Or is there anything unique to Modivcare? And then the real question is, where do you see utilization settling out? And how does that impact NEMT margins in 2024 and beyond?

當然。是啊，那樣最好了。然後是最後一個問題，我會跳回隊列。顯然，您討論了移動性利用率的更快恢復。我想，首先，這只是一種更快的流行病正常化嗎？或者 Modivcare 有什麼獨特之處嗎？真正的問題是，您認為利用率會穩定在哪裡？這對 2024 年及以後的 NEMT 利潤率有何影響？

Yes. Also in the utilization -- health care utilization across the board is interesting, and we are seeing as well, faster than we thought in Q1 and Q2. However, actually, if you look at seasonality, Q2 is also the high point as well. So -- and what we're seeing right now is that we're seeing the traditional kind of pull down from the high point of Q2. So I expect utilization to be at the levels that they are now and continue to grow at a more moderate pace and then get to that standpoint of between 9% and 10% kind of middle of 2024.

是的。在利用率方面，醫療保健的全面利用率也很有趣，我們也看到，比我們在第一季度和第二季度想像的要快。但實際上，如果從季節性角度來看，第二季度也是最高點。因此，我們現在看到的是，我們看到傳統的方式從第二季度的高點回落。因此，我預計利用率將保持在現在的水平，並繼續以更溫和的速度增長，然後在 2024 年中期達到 9% 到 10% 的水平。

So very manageable and in line with the forecast that we gave in 2023. And then you couple that with us giving clarity around redetermination. That includes the utilization. So we feel good about that. And again, the other item, the way our contracts work, whether that's cost or utilization. A lot of that front end has passed through. So the full risk contract is where we have the exposure and we have good management of those specific states and no specific networks that were in there. So it is an impact, and it is going to be a drag on us, including redetermination. We do believe we'll be able to manage through that and then going into 2024, which is why also, and this maybe is probably your next question, the size and scope of our business is the strength.

非常易於管理，並且符合我們在 2023 年給出的預測。然後您將其與我們一起明確重新確定的情況結合起來。這包括利用率。所以我們對此感覺良好。再說一遍，另一個問題是我們的合同運作方式，無論是成本還是利用率。很多前端已經通過了。因此，完整的風險合同是我們所面臨的風險，我們對這些特定的狀態有良好的管理，並且那裡沒有特定的網絡。所以這是一個影響，它會拖累我們，包括重新決定。我們確實相信我們能夠渡過難關，然後進入 2024 年，這也是為什麼，這可能是您的下一個問題，我們業務的規模和範圍就是優勢。

The opportunity for us is to automate a lot of the processes that we have. And that will further ensure that we get rigid margins going forward and not have to be this kind of fluctuation and utilization release the main impact. So -- and those initiatives are on, right? We've been in the middle of this transformation for the last year. We have a strong team in place and strong clarity in what we need to do, whether that's -- and supported by tech. So we need to execute on these initiatives, and I expect every quarter, we'll give you updates like we are now, for example, our trip-to-call ratio continue to improve. That's just one example on how we're able to kind of automate this business and get the right cost structure in place so that we get back to the ranges that we've given on our EBITDA margins in 2024.

我們的機會是使我們擁有的許多流程實現自動化。這將進一步確保我們未來獲得剛性利潤，而不必受到這種波動和利用率釋放的主要影響。那麼，這些舉措正在實施，對吧？去年我們一直處於這種轉變之中。我們擁有一支強大的團隊，並且非常清楚我們需要做什麼，無論這是否得到技術支持。因此，我們需要執行這些舉措，我預計每個季度我們都會像現在一樣向您提供最新信息，例如，我們的出行與通話比率繼續提高。這只是我們如何實現這項業務自動化並建立正確的成本結構的一個例子，以便我們能夠在 2024 年恢復到 EBITDA 利潤率的範圍。

The next question is coming from Brian Tanquilut of Jefferies.

下一個問題來自 Jefferies 的 Brian Tanquilut。

I guess, Heath, maybe my first question, as we think about just your visibility and confidence in your guidance that we'll see positive cash flow in the back half of the year? And then any color you can share on debt covenants and debt availability. And maybe if you can share with us where debt levels are maybe as of the end of July.

我想，希思，也許是我的第一個問題，因為我們考慮的是您對您的指導的可見性和信心，我們將在今年下半年看到正現金流？然後您可以分享有關債務契約和債務可用性的任何顏色。也許您可以與我們分享截至 7 月底的債務水平。

Yes. So we've been paying down. We paid down about $30 million in July. Again, we expect the fluctuations to happen. So it's just a data point, which aligns to why we feel good about the ranges that Ken gave in our free cash flow of $30 million to $50 million, generating throughout the year. So we feel really good about that. And I keep coming back to that. And it's okay to keep saying this. And what you should look at and why we're comfortable with that is the receivables and payables delta. That gives us a lot of confidence of being through that COVID repayment back.

是的。所以我們一直在付錢。 7月份我們付清了大約3000萬美元。我們再次預計會發生波動。所以這只是一個數據點，這與我們對 Ken 給出的全年產生的 3000 萬至 5000 萬美元自由現金流範圍感到滿意的原因是一致的。所以我們對此感覺非常好。我不斷地回到這一點。一直這樣說也沒關係。您應該關注的是應收賬款和應付賬款增量，以及為什麼我們對此感到滿意。這讓我們對完成新冠疫情的還款充滿信心。

So -- and then to continue on that from a debt covenant perspective, we did all -- our banking partners who are great partners who have looked at us, gave us that increase in leverage coverage. And we have in the deck how that actually works. So you can see that we have a 4.7% leverage. So that gives us lots of room within that covenant. So we're really comfortable with where we are from a bank loan perspective. We continue to delever. So we're really comfortable with our current capital structure and our covenant that we just got in place. And then your -- what was your first question?

因此，從債務契約的角度來看，我們做了所有的事情，我們的銀行合作夥伴是關注我們的優秀合作夥伴，為我們增加了槓桿覆蓋率。我們已經在甲板上了解了它的實際工作原理。所以你可以看到我們的槓桿率為 4.7%。所以這給了我們在這個聖約中很大的空間。因此，從銀行貸款的角度來看，我們對目前的狀況感到非常滿意。我們繼續去槓桿。因此，我們對當前的資本結構和剛剛制定的契約感到非常滿意。然後你的第一個問題是什麼？

Just the confidence in the ability to generate positive free cash in the back half of the year.

只是對下半年產生正自由現金的能力充滿信心。

Yes. Yes. So then it goes to the other items, which I said a little bit with Bob, if you look at the other sides of the business, right, the Home business, that 11% to 12% margins, RPM in the mid-30s, strong performance and growth there. So you put all that together and then being out of the COVID payments that we accelerated into Q2. We're executing and we'll generate cash. So I feel really confident about that.

是的。是的。那麼接下來是其他項目，我和鮑勃說了一點，如果你看看業務的其他方面，對吧，家庭業務，11% 到 12% 的利潤率，每千次展示收入在 30 多歲左右，那裡的表現和增長強勁。因此，您將所有這些放在一起，然後退出我們加速進入第二季度的新冠疫情付款。我們正在執行，我們將產生現金。所以我對此非常有信心。

Understand. Okay. And then maybe you gave some color on redeterminations. It sounds like, number one, you still believe that it's a 10% to 15% reduction in the number of Medicaid lives covered and enrolled, but also if I add this year's impact, $5 million to $10 million, $20 million to $40 million next year, so you'll get $25 million to $50 million gross. Maybe if you can walk us through that math and how you're getting that level of confidence in both the number of lives and the revenue amount or EBITDA amount that we should be thinking about?

理解。好的。然後也許你對重新決定給出了一些顏色。聽起來，第一，你仍然認為醫療補助覆蓋和登記的人數減少了10% 到15%，但如果我加上今年的影響，接下來會是500 萬美元到1000 萬美元，接下來是2000 萬美元到4000 萬美元年，因此您將獲得 2500 萬至 5000 萬美元的總收入。也許您可以向我們介紹一下這個數學過程，以及您如何對我們應該考慮的生命數量和收入金額或 EBITDA 金額獲得如此程度的信心？

Yes. Yes. And also, if you or anybody wants to look at it on Page 15 of the investor deck that is posted, actually goes through that math. And the team and us did a very good job on being transparent around this and what we think it means. One, we're all learning as an industry, right, and we know our customers, where it is. So we want to be transparent on what it means. Primarily what it means for into 2024, as we said, in 2023, the impact is around $5 million to $10 million, and that's in our current guidance. It really is now about what's going to happen in 2024.

是的。是的。而且，如果您或任何人想查看發布的投資者資料第 15 頁上的內容，請實際進行數學計算。團隊和我們在這方面以及我們認為這意味著什麼方面做得非常透明。第一，作為一個行業，我們都在學習，對吧，我們了解我們的客戶，知道他們在哪裡。因此，我們希望對其含義保持透明。主要是到 2024 年意味著什麼，正如我們所說，到 2023 年，影響約為 500 萬至 1000 萬美元，這是我們當前的指導。現在真正關心的是 2024 年會發生什麼。

So we laid out the math there on how we are getting to the range of $25 million to $50 million. And it really taking the data that is out there publicly. And then we layered that on to our current contracts. Then why it's not maybe a large number like maybe other people are expecting is because we have a state mix that is different than the overall kind of Medicaid population and that where the exposure lies for us is in those full-risk contracts. Again, 20% of our revenue is within that. And we know where those states are and we know what's happening. So when we put it through that, that's how we get to that $25 million to $50 million. And then we also gave an illustrative example on how you could do your own math.

因此，我們計算瞭如何達到 2500 萬至 5000 萬美元的目標。它確實獲取了公開的數據。然後我們將其納入我們當前的合同中。那麼，為什麼這個數字可能不像其他人預期的那樣大，是因為我們的州組合與醫療補助人口的總體類型不同，而我們的風險暴露在那些全風險合同中。同樣，我們 20% 的收入都在其中。我們知道這些州在哪裡，也知道正在發生什麼。因此，當我們做到這一點時，這就是我們如何獲得 2500 萬至 5000 萬美元的資金。然後我們還給出了一個說明性示例，說明如何進行自己的數學計算。

I think the real way to think about it, a lot of the data is out there, specifically from Kaiser, which I think is doing a great job. They do that 10% to even 20% across the U.S. and growth, they don't take into account the increased Medicaid growth that is also happening. CMS just last month, actually, I think, has the best information that came out there. They did a net number. And their net number was in 2024, they expect 8 million lives to come off. That is in line when we look at our contracts, that is very in line with what we think is going to happen. And if that's the case, it would be on the lower end. So we really wanted to be transparent around this. I think the numbers that we have are really solid.

我認為真正的思考方式是，大量數據就在那裡，特別是來自凱撒的數據，我認為它做得很好。他們在全美範圍內實現了 10% 甚至 20% 的增長，但他們沒有考慮到醫療補助的增長也在發生。實際上，我認為 CMS 上個月就已經發布了最好的信息。他們做了一個淨數字。他們的淨數字是 2024 年，預計將有 800 萬人喪生。當我們查看我們的合同時，這與我們認為將要發生的情況非常一致。如果是這樣的話，它就會處於低端。所以我們真的希望在這方面保持透明。我認為我們擁有的數字非常可靠。

And then the other item on that, that gives us the ability to say, okay, that's the $20 million to $50 million. What are you going to do about it, guys? And that's where we also are being more transparent around the initiatives that we have in place around the cost. So that goes to -- I think Page 13 of the deck. And we were, again, transparent around this automation. Why we wanted to be that way because we wanted to show the opportunity we have and the base that we have to work off of there. And that's around automation within our contact center, that's automation within just transportation ops. There's the initiatives that are underway, and we still have a lot of opportunity to do that. When you look at that, the total target that we have, $60 million to $80 million. But for us, over these next 12 months, we think we can get $30 million to $50 million. So that $30 million to $50 million across redetermination and utilization of $25 million to $50 million, it shows that we can execute and get back to our margins of that's kind of 9% to 10%, 11% range in 2024.

然後另一個項目，讓我們有能力說，好吧，那就是 2000 萬到 5000 萬美元。伙計們，你打算怎麼做？這就是我們圍繞成本採取的舉措更加透明的地方。我想這就是這副牌的第 13 頁。我們再次對這種自動化保持透明。為什麼我們想這樣做，因為我們想展示我們擁有的機會以及我們必須以此為基礎的基礎。這就是我們聯絡中心內的自動化，即交通運營中的自動化。一些舉措正在進行中，我們仍然有很多機會這樣做。當你看到這一點時，我們的總目標是 6000 萬至 8000 萬美元。但對我們來說，在接下來的 12 個月裡，我們認為可以獲得 3000 萬到 5000 萬美元。因此，重新確定費用為 3000 萬美元到 5000 萬美元，利用費用為 2500 萬美元到 5000 萬美元，這表明我們可以執行並在 2024 年恢復到 9% 到 10%、11% 的利潤率。

The next question is coming from Scott Fidel of Stephens.

下一個問題來自斯蒂芬斯的斯科特·菲德爾。

First question, I was hoping maybe just on the NEMT side. I think it might be helpful if you can sort of break out how the margins -- I'm not sure if you have the data prepared this way, but it would be really helpful if you could break out how the margins are looking in the full-risk category, let's call it, that 20% that are in full risk versus the 80% that have now moved towards shared risk.

第一個問題，我希望可能只是在 NEMT 方面。我認為，如果您能夠了解邊距的情況，這可能會有所幫助 - 我不確定您是否以這種方式準備了數據，但如果您能夠了解邊距在中的情況，那將非常有幫助我們稱之為完全風險類別，即20% 的人處於完全風險狀態，而80% 的人現在已轉向分擔風險。

And then when you look at the full risk, which clearly seems to be more pressured right now than the shared risk, walk us through, I guess, the path to margin normalization for those full-risk contracts in terms of visibility into price increases or PMPM increase if you have there? Or is this where you're going to be also utilizing some of these cost-saving initiatives to try to normalize the full-risk margins?

然後，當您查看完全風險（目前顯然比共享風險面臨更大的壓力）時，我想，請引導我們了解這些完全風險合約在價格上漲或風險的可見性方面實現保證金正常化的路徑。 PMPM增加的話有嗎？或者您是否也將利用其中一些節省成本的舉措來嘗試使完全風險利潤正常化？

Yes. So we don't kind of -- we don't give margin by individual category. And the reason for that is in entire portfolio. And -- but with full risk and actually shared risk or fee-for-service and pass-through, these constructs are based on how we have a win-win relationship with our customers. Some people want shared risk, some people want full risk. Full risk by definition is uptaking normal risk. So those margins are higher. But that doesn't mean they will go lower. The way the industry has settled out in NEMT regardless of what contract, we're kind of set on that.

是的。所以我們不會按個別類別提供利潤。原因在於整個投資組合。而且，但在完全風險和實際分擔風險或按服務收費和轉嫁的情況下，這些結構是基於我們與客戶建立雙贏關係的方式。有些人想要分擔風險，有些人想要完全風險。完全風險的定義是承擔正常風險。所以這些利潤率更高。但這並不意味著它們會走低。無論簽訂什麼合同，行業在 NEMT 中的解決方式都是如此，我們對此已經做好了準備。

So the expectations to the customers that use full risk is that our margins are higher. So now there are pressures from a timing on utilization, but those aren't going to continue to decline where the full-risk margins get even at or below our shared risk margins. That's not the way it works. So I wouldn't look at it as a big risk or a change within full risk as being the downside. It really is, for us, being transparent of where the exposure is from our margin perspective right now.

因此，對使用完全風險的客戶的期望是我們的利潤更高。因此，現在存在來自利用率時機的壓力，但如果完全風險邊際達到或低於我們的共同風險邊際，這些壓力不會繼續下降。這不是它的工作方式。因此，我不會將其視為一個大風險，也不會將完全風險範圍內的變化視為不利因素。對我們來說，從我們的保證金角度來看，目前的風險敞口確實是透明的。

So they are higher, they are being under pressure. But as I talked about earlier, where we think utilization is going to go and where cost is going to go because more than 80% -- the other 80% are actually pass-through, we feel good as a portfolio in our margins and especially where the levers are in our costs that are internal to us. That's where the levers are, and that allows us to get back up. The pricing mix, the margin components of what we get from our customers and what we pay our transportation providers, in general, have really leveled off, and I expect those to stay consistent for many quarters and years to come.

所以他們更高，他們承受著壓力。但正如我之前談到的，我們認為利用率將走向何方，成本將走向何方，因為超過 80%——另外 80% 實際上是轉嫁的，作為一個投資組合，我們對利潤率感覺良好，尤其是槓桿在於我們內部的成本。這就是槓桿所在，讓我們能夠重新站起來。總體而言，定價組合、我們從客戶那裡獲得的利潤部分以及我們向運輸提供商支付的費用已經真正趨於平穩，我預計這些在未來的許多季度和幾年中將保持一致。

Okay. Got it. So actually bottom line, the full risk contracts, you still actually generate higher margins in those, but with a lot more variability. And then with the shared risk essentially, you're willing to trade a little bit lower margin for some more predictability and the margin structures that you'll have over time at shared risk, right? Because that is the way we have to sort of think about...

好的。知道了。因此，實際上底線是，在完全風險合約中，您實際上仍然可以產生更高的利潤，但可變性更大。然後，本質上是共享風險，您願意用較低的保證金來換取更多的可預測性以及隨著時間的推移您將在共享風險下擁有的保證金結構，對吧？因為這就是我們必須思考的方式......

That's exactly because that's what the customers want as well. So -- and the people that want full risk, want that because it allows them to do it more simply and they will remain higher than anything else. So you said it correct, Scott.

這正是因為這也是客戶想要的。所以——那些想要完全冒險的人之所以想要這樣，是因為這讓他們能夠更簡單地做到這一點，並且他們將保持比其他任何東西都高的水平。所以你說得對，斯科特。

Okay. And then just a follow-up question, just sticking on the NEMT margins. And obviously, I think for a lot of us externally, too, that's -- it's just the visibility into the NEMT businesses is lower, right, than some of your other businesses like personal care, where we have a lot more other external ways to monitor trends and other public peers, for example. So in that context, so you did the 5.8% adjusted EBITDA margin in the second quarter. You've revised the outlook for the full year. You're still targeting a 10% margin in that business in the intermediate term sort of outlook that you gave in the deck. Can you maybe just give us some more visibility in terms of specifically how you're thinking about that sort of NEMT margin ramp both in the third quarter and the fourth quarter?

好的。然後是一個後續問題，只是關注 NEMT 的邊緣。顯然，我認為對於我們很多人來說，外部也是如此——只是 NEMT 業務的可見性比個人護理等其他一些業務要低，對吧，我們有更多其他外部方式來例如，監控趨勢和其他公共同行。因此，在這種情況下，第二季度調整後的 EBITDA 利潤率為 5.8%。您修改了全年展望。按照您在演示文稿中給出的中期前景展望，您仍將該業務的利潤率目標定為 10%。您能否給我們更多的了解，具體說明您如何考慮第三季度和第四季度的 NEMT 利潤率增長？

And then also just into '24, how you're thinking about that sort of ramping just given that you're going to have, obviously, the impact from redeterminations playing out and then you're going to have the offset from the cost savings, where you have a lot more understanding of how those cost savings will ultimately accrue than obviously we do externally?

然後，就在 24 年，您如何考慮這種增長，因為顯然，重新確定會產生影響，然後您將獲得成本節省的抵消，與我們外部相比，您對這些成本節省最終將如何實現有更多的了解？

Yes. Well, so this is just to hopefully start going to box things in. If we do nothing, these margins that we're at right now, that 6% range would be holding like that. Again, that's a good thing from the contract structure, because you can see, and I'll just -- I'll touch on this, you can see in the data when you look at purchase services to revenue in NEMT, you see that the increase in costs, whether that's unit cost or utilization, 80% of that is pass-through. So good contracts are working at it. But that 6% margin long term is not what we expect. So what are the levers to pull? So there's 2 big levers to pull. First, I already talked about, the cost savings around automation. And the second item is growth.

是的。好吧，所以這只是希望開始把事情限制住。如果我們什麼都不做，我們現在的利潤率，6% 的範圍將保持這樣。再說一次，從合同結構來看，這是一件好事，因為你可以看到，我會談到這一點，當你查看 NEMT 中的購買服務收入時，你可以在數據中看到，你會看到成本的增加，無論是單位成本還是利用率，其中80% 是轉嫁的。所以好的合同正在發揮作用。但從長期來看，6% 的利潤率並不是我們所期望的。那麼有哪些槓桿可以拉動呢？所以有兩個大槓桿需要拉動。首先，我已經談到了自動化帶來的成本節約。第二項是增長。

And we talked about a lot of the good things that have happened with our rebuilding our sales and go-to-market. It's having traction. I wish it was earlier, and I wish this was before, but now this team is executing that and I expect that to start coming online, and we'll get scale out of that. So those 2 items together will have us the ability to have those margins creep up. Likely that's going to be -- that will be in 2024. So the right way to think about these next couple of quarters is kind of in line with these current margins that we have right now in NEMT. And then the uptick if volume comes on and as the cost additions take place, we'll get to those -- we'll start to get into those levels that we talked about before.

我們談論了在重建銷售和進入市場過程中發生的許多好事。它有牽引力。我希望它早點發生，我希望這是之前的事情，但現在這個團隊正在執行它，我預計它會開始上線，我們將由此擴大規模。因此，這兩項加起來將使我們有能力提高利潤。很可能是在 2024 年。因此，考慮接下來幾個季度的正確方法是與我們 NEMT 目前的利潤率保持一致。然後，如果銷量增加，並且隨著成本增加，我們將達到這些水平——我們將開始進入我們之前討論過的水平。

Okay. And then just one last question for me, maybe just over on the personal care side. First, I did hear, can sort of call out some expected wage increases for caregivers in the back half of the year. Could you maybe just actually sort of disclose what expected type of wage increases you are expecting to get to the caregivers? And then also just interested if one more targeted question on New York. One of your peers have talked about CDPAP having gotten a bit of a retroactive rate increase and reimbursement, they're looking more reasonable now. Just wondering how that's flowing through to your business as well.

好的。接下來是我的最後一個問題，也許只是關於個人護理方面。首先，我確實聽說，可以指出今年下半年護理人員的預期工資增長。您能否實際透露一下您希望護理人員獲得什麼樣的預期工資增長？然後還有一個關於紐約的更有針對性的問題。你的一位同行談到 CDPAP 已經獲得了一些追溯性的加息和報銷，他們現在看起來更合理了。只是想知道這如何影響到您的業務。

Yes. This is Zach. So I think the wage increase commentary is really more about normal market wage increases that we see happening. There were a couple of minimum wage increases that we like Connecticut passed through minimum wage increase in June, July. And -- but going forward, we think we're going to be passing through wage increases to be competitive in the marketplace.

是的。這是紮克。因此，我認為工資上漲的評論實際上更多的是我們所看到的正常市場工資上漲。我們喜歡康涅狄格州在六月和七月通過了幾次最低工資上漲。而且，展望未來，我們認為我們將通過提高工資來提高市場競爭力。

In terms of the reimbursement rate environment, we're seeing some good support from the state still, not as much as maybe we were 1.5 years ago. But I would say that in terms of like CDPAP, yes, like we're seeing the same dynamics there as that -- and New York has been a pretty supportive reimbursement rate environment, but it's also another high wage environment.

就報銷率環境而言，我們仍然看到國家提供了一些良好的支持，但可能不像 1.5 年前那麼多。但我想說，就 CDPAP 而言，是的，我們在那裡看到了同樣的動態——紐約一直是一個非常支持性的報銷率環境，但它也是另一個高工資環境。

And so for us, like we're really focused on how can we make personal care a more value-add service than just going in and making it a single point solution. And so as we think about having this holistic view of the member, that's where we're going to drive the most value in personal care. And so we're -- yes, we still need to operate in the competitive environment. And it's a very regulated industry. We're also bringing something that we feel like is differentiated in the marketplace. And I think that's the main focus for us going forward.

因此，對於我們來說，我們真正關注的是如何使個人護理成為更具增值的服務，而不僅僅是進入並使其成為單點解決方案。因此，當我們考慮對會員有全面的看法時，這就是我們要推動個人護理的最大價值的地方。所以我們——是的，我們仍然需要在競爭環境中運營。這是一個監管非常嚴格的行業。我們還帶來了一些我們認為在市場上與眾不同的東西。我認為這是我們未來的主要關注點。

Yes. And just a little bit more on that. You think about New Jersey, Pennsylvania and New York, all historically supportive of increased reimbursement rates to match the needs of paying caregivers higher. That has happened, that is happening now, and we expect that to continue. For us, we want to continue to caregivers more. It really is about growth for us. So that's why we stick to that 10% to 12% margin. It really is about how do we get more caregivers to grow. And you're seeing that, hours are up, growth is up. So we're really happy with the business. We have -- we know there's a lot of opportunity when Anne Bailey has been here now a few months, what she and the team are doing is great. So we even see more upside on what they're doing to really fuel growth. So that's a little more on what Zach just said.

是的。對此還可以再多說一點。你想想新澤西州、賓夕法尼亞州和紐約州，它們歷來都支持提高報銷率，以滿足支付更高的護理人員費用的需求。這已經發生了，現在正在發生，我們預計這種情況會繼續下去。對於我們來說，我們希望繼續為護理人員提供更多幫助。這確實關係到我們的成長。這就是為什麼我們堅持 10% 到 12% 的利潤率。這實際上是關於我們如何讓更多的護理人員成長。你會看到，工作時間增加了，成長也增加了。所以我們對這項業務非常滿意。我們知道安妮·貝利來到這裡幾個月後有很多機會，她和團隊所做的事情很棒。因此，我們甚至看到他們為真正推動增長所做的事情有更多的好處。這就是紮克剛才所說的更多內容。

The next question is coming from Brooks O'Neil of Lake Street Capital Markets.

下一個問題來自湖街資本市場的布魯克斯·奧尼爾。

Aaron Wukmir on the line for Brooks. So personal care and remote patient monitoring performed well. And it seems that you guys have a lot of opportunities in that area and are seeing some very strong demand. So what would you say your main focus in your long-term strategy and enhanced data capability is? And what specific and significant factors should be -- should we be more focused on going forward here?

亞倫·烏克米爾（Aaron Wukmir）接替布魯克斯。因此個人護理和遠程患者監控表現良好。看來你們在這個領域有很多機會，並且看到了一些非常強勁的需求。那麼您認為長期戰略和增強數據能力的主要重點是什麼？我們應該更加關注向前推進的具體和重要因素是什麼？

Yes. No, thanks for that. So the Home business, why we call it a Home business, having Personal care and remote patient monitoring together is a critical component to our future and really across the United States, everybody knows that care is going into the home. And then especially over these last couple of years, really appreciating what personal care is doing. Those everyday life activities are critical to the health of many people. So that dynamic of growth and need is going to continue to accelerate. So we couldn't be more happy with those and the growth capabilities on that.

是的。不，謝謝你。因此，家庭業務，為什麼我們稱之為家庭業務，將個人護理和遠程患者監控結合在一起是我們未來的關鍵組成部分，實際上在整個美國，每個人都知道護理正在進入家庭。尤其是在過去的幾年裡，我真的很欣賞個人護理的作用。這些日常生活活動對許多人的健康至關重要。因此，增長和需求的動力將繼續加速。因此，我們對這些及其增長能力感到非常滿意。

From a strategy perspective for us, it really is kind of twofold. And the one that we've been executing on for the last kind of 12 months is the centralization, standardization and automation, like implementing a common platform and then ensuring that we have repeatable processes. The value on that is one we get the ability to reallocate capital back to our caregivers to grow even more, but it also gives us a platform to grow, grow organically just through adding people, through de novos and sometime down the road when appropriate acquisitions. So having that centralized standard automated platform to plug-and-play growth is great.

從我們的戰略角度來看，這確實是雙重的。過去 12 個月我們一直在執行的就是集中化、標準化和自動化，比如實施一個通用平台，然後確保我們擁有可重複的流程。其價值在於，我們能夠將資本重新分配給我們的護理人員，以實現更大的增長，但它也為我們提供了一個增長的平台，通過增加人員、從頭開始以及在適當的收購時進行有機增長。 。因此，擁有集中式標準自動化平台來實現即插即用的增長是非常棒的。

So where you are going, the next part is it really is around the data. And right now, the services that our caregivers provide where we're in the home anywhere from a couple of hours to 24 hours is a critical ability for us to start collecting data on that member. And then as importantly, and more importantly, doing something about it. So those investments that we've made to ensure we can do that are happening and in place, and that's really where the future strategy goes.

所以你要去的地方，下一部分實際上是圍繞數據的。現在，我們的護理人員在我們家中的任何地方提供的服務（從幾個小時到 24 小時）是我們開始收集該成員數據的關鍵能力。然後同樣重要的是，更重要的是，為此做點什麼。因此，我們為確保能夠做到這一點而進行的投資正在發生並到位，這才是未來戰略的真正方向。

How do we change outcomes that really help our customers and members? That's where the focus is as well to ensure that, one, we are more sticky, you can grow. But two, how we get different payment models, which is more in line with value-based care. And think about it as us changing outcomes and getting bonus payments for whether that's changing some -- a risk on falling to actually intervening before somebody gets really sick. So that's the future. And I'll hit this again, this is different.

我們如何改變真正有利於我們的客戶和會員的結果？這也是重點，以確保，第一，我們更具粘性，您可以成長。但第二，我們如何獲得不同的支付模式，這更符合基於價值的護理。想想看，當我們改變結果並獲得獎金時，這是否會改變一些——在有人真正生病之前進行實際干預的風險。這就是未來。我會再打一次，這是不同的。

So our customers want us to have access. They don't have access like we have all the time. So it's a really unique entry point with people and then you layer on data that allows us to do it virtually, and that gets to the -- why we have remote patient monitoring. The technology of a device complements or supplement the human allows to scale. There's a lot more that we can talk about later. But bringing those together, data and the human touch is a differentiator for us and in line with what our customers want.

所以我們的客戶希望我們能夠訪問。他們無法像我們一直擁有的訪問權限。因此，這對於人們來說是一個非常獨特的切入點，然後你可以對數據進行分層，使我們能夠以虛擬方式進行操作，這就是為什麼我們要進行遠程患者監控。設備技術補充或補充了人類允許擴展的能力。還有很多事情我們稍後可以討論。但將這些、數據和人性化結合在一起對我們來說是一個差異化因素，並且符合我們客戶的需求。

The next question is coming from Pito Chickering of Deutsche Bank.

下一個問題來自德意志銀行的皮托·奇克林。

One quick modeling question here. Can you give us a number of rides you provided under the shared risk model versus full captive model in 1Q and 2Q just help understand those looking parts.

這裡有一個快速建模問題。您能否給我們提供一些您在第一季度和第二季度在分擔風險模型與完全自保模型下提供的遊樂設施，這有助於了解那些看起來很像的部分。

Yes. So it is pretty congruent in line with our revenue. So we've disclosed 20% of revenue in our full risk and in line with the transportation trips. That's the right way to think about.

是的。所以它與我們的收入非常一致。因此，我們在完全風險下披露了 20% 的收入，並與運輸行程一致。這是正確的思考方式。

Okay. And then on the shared risk economics on Page 30, you say that there's 0 impact, sort of depending upon overall utilization of this 80% of the contracts. If there is sort of no risk here, why are we not doing a fee-for-service model, kind of why are we doing this type of structure?

好的。然後，在第 30 頁的共享風險經濟學中，您說影響為零，這在某種程度上取決於這 80% 合同的總體利用率。如果這裡沒有風險，為什麼我們不採用按服務收費的模式，為什麼我們要採用這種類型的結構？

Yes. It gets back to the question that came earlier, right? It really is what do our customers want. And the shift -- no question has been to the shared risk model. And I expect that to continue. It's primarily related to the managed side of the MCO side because it's further than just the trip taking. They want to expand more broadly. So I expect that shift to continue, you know, we are now at 65% MCO side versus a couple of years ago we were the other way.

是的。這又回到了之前的問題，對吧？這確實是我們客戶想要的。毫無疑問，這種轉變是共享風險模式。我希望這種情況能夠持續下去。它主要與 MCO 方面的託管方面相關，因為它不僅僅是旅行。他們想要更廣泛地擴張。所以我預計這種轉變會繼續下去，你知道，我們現在處於 MCO 一邊，而幾年前我們是相反的。

So I expect that to happen. However, there's a few of our primarily states that like the full risk contract. And getting back to that, though we're seeing pressure right now, those margins will remain higher. So we like those contracts. They're in line with our customers. And the overall portfolio of our contracts are working, and I expect that to stay in place and allow -- I'll get back to what really is going to change our margin profile to be back to that 9% to 10%, 11% range is the cost and automation capabilities, that spending lever.

所以我希望這會發生。然而，我們的一些主要州喜歡完全風險合同。回到這一點，儘管我們現在面臨壓力，但這些利潤率仍將保持較高水平。所以我們喜歡這些合同。他們與我們的客戶保持一致。我們合同的整體投資組合正在發揮作用，我希望這種情況能夠保持不變，並允許——我將回到真正會改變我們利潤狀況的問題，使我們的利潤率回到9% 到10%、 11%範圍是成本和自動化能力，即支出槓桿。

Right. Fair enough. And then on Page 12, like you guys gave us the bridge for EBITDA margins, which include net wins, reiteration, [relation] costs and big initiatives. Using that same construct, can you help us think about sort of the (inaudible) margin we saw in this quarter and how we get to 7.3% in the back half of the year? And what do you assume on utilization in the back half of the year?

正確的。很公平。然後在第 12 頁，就像你們為我們提供了 EBITDA 利潤率的橋樑，其中包括淨收益、重複、[關係]成本和重大舉措。使用相同的結構，您能否幫助我們思考本季度我們看到的（聽不清）利潤率以及我們如何在今年下半年達到 7.3%？您對下半年的利用率有何看法？

So utilization to us because of the seasonality, in general, it usually comes down in Q3 and Q4. We're keeping this high point of utilization in line with that current trend. And what's my confidence around that? I'm seeing it right now. So -- and then the other components of what the uptick is, we know where that is and we know what caused it. So we feel good about our predictability in the back half of the year around the utilization.

因此，由於季節性因素，我們的利用率通常會在第三季度和第四季度下降。我們將保持這一利用率的高點，以符合當前的趨勢。我對此有何信心？我現在就看到了。所以——然後是上升的其他組成部分，我們知道它在哪裡，我們也知道是什麼導致了它。因此，我們對下半年利用率的可預測性感到滿意。

And then the -- from a margin perspective right now, I think we talked about this a lot, I expect that margin to be similar for the next couple of quarters. And then as we add more wins, and you can see that there, add more wins that we have sold today, that come on in 2024, coupled with the cost initiatives, it's going to bring those margins up steady through 2024.

然後，從現在的利潤率角度來看，我認為我們對此進行了很多討論，我預計未來幾個季度的利潤率將相似。然後，隨著我們增加更多的勝利，您可以看到，增加我們今天已售出的更多勝利，這些勝利將在2024 年實現，再加上成本舉措，這將使這些利潤率在2024 年之前穩定增長。

Okay. And then last one here for me. The bonds have been under a lot of pressure, which is putting pressure on the equities. You know the issue from the fixed income guys is obviously leverage EBITDA pressures and cash flow generation with the negative $110 million in the first half of the year. You are still guiding $350 million of cash generation for this year. Can you just give us a number of what third quarter cash flow from operations should be?

好的。最後一個是我的。債券承受著很大的壓力，這給股票帶來了壓力。你知道，固定收益公司的問題顯然是槓桿 EBITDA 壓力和現金流生成，上半年負 1.1 億美元。您今年仍指導 3.5 億美元的現金生成。您能否告訴我們第三季度運營現金流應該是多少？

Yes. So we gave the full year -- sorry, the second half of the year, and Ken said that $30 million to $50 million. So that's what -- it's considering the fluctuations we have, it makes sense to give the full year. So we feel really good -- like I said earlier, we are paying back right now. So I expect each quarter to generate cash for us. And then in totality, be between that $30 million and $50 million.

是的。所以我們給出了全年——抱歉，是下半年，肯說是 3000 萬到 5000 萬美元。所以這就是——考慮到我們所面臨的波動，給出全年數據是有意義的。所以我們感覺非常好——就像我之前說的，我們現在正在回報。所以我預計每個季度都會為我們產生現金。總計在 3000 萬至 5000 萬美元之間。

The next question is coming from Mike Petusky of Barrington Research.

下一個問題來自 Barrington Research 的 Mike Petusky。

So I just want to make sure I understand what's going on with the revolver. The short-term borrowings were like $126.5 million on the June balance sheet. And did you say that you had paid down $30 million in July? Did I hear that right? Or...

所以我只是想確保我了解左輪手槍的情況。 6 月份資產負債表上的短期借款約為 1.265 億美元。你說你7月份已經付清了3000萬美元嗎？我沒聽錯吧？或者...

Yes. Yes, I did. I did say that.

是的。是的，我做到了。我確實這麼說過。

So the revolver is below $100 million? And then I just want to make sure I understand. When you're saying, hey, we're going to -- we're essentially going to pay down the revolver of $30 million to $50 million in the second half, that really implies 0 to $20 million incremental from here, correct?

那麼這把左輪手槍的價格低於1億美元嗎？然後我只是想確保我理解。當你說，嘿，我們將在下半年支付 3000 萬至 5000 萬美元的左輪手槍費用時，這實際上意味著從這裡開始增加 0 至 2000 萬美元，對嗎？

Yes. Yes. So this gets back to, I think, Pito's question as well. We will still have the fluctuations that happen each year, which is why -- I mean, each month, each day. The purpose of disclosing what happened in July is when I got asked the question too, is that it's not continuing on that trend. I get back before that we're actually not generating free cash flow. That's -- so we expect to be at that $30 million to $50 million, and we're consistent with that. We feel good about it.

是的。是的。我認為這又回到了皮託的問題。我們每年仍然會出現波動，這就是為什麼——我的意思是每個月、每一天。當我也被問到這個問題時，披露七月份發生的事情的目的是，它不會繼續這種趨勢。我之前說過，我們實際上沒有產生自由現金流。那就是——所以我們預計會達到 3000 萬到 5000 萬美元，我們也同意這一點。我們對此感覺很好。

Right. But essentially, if you say, hey, we're going to pay down the revolver, $30 million to $50 million in the second half, but you paid -- you've already paid $30 million, it's possible for the next 5 months, you don't pay the revolver down any additional amount.

正確的。但本質上，如果你說，嘿，我們將在下半年支付左輪手槍的費用，3000萬至5000萬美元，但你已經支付了——你已經支付了3000萬美元，有可能在接下來的5個月內支付，您無需為左輪手槍支付任何額外金額。

Yes, so you're looking at the right way. I think the right way to also is the bridge that we have on Page 7 of the deck. We pay interest in the second half of the year, too, right? So there's other puts and takes that happen on the fluctuation. But you're right on your math.

是的，所以你正在尋找正確的方法。我認為正確的方法也是我們在甲板第 7 頁上的橋樑。下半年我們也付利息吧？因此，在波動中還會發生其他看跌期權和賣出期權。但你的數學是對的。

Okay. And I'm sorry, this may be in the deck, I don't have the deck right in front of me. What are you paying on the revolver right now?

好的。抱歉，這可能在牌組中，我面前沒有牌組。你現在用左輪手槍付多少錢？

9.3%, I believe, is the rate that's in the 10-Q. You can look in the 10-Q for the actual review, that's based on SOFR plus the margin.

我認為 9.3% 是 10 季度的比率。您可以查看 10-Q 進行實際審核，該審核基於 SOFR 加上保證金。

Yes. Yes. Okay. And then moving over to the other favorite topic of this call, redetermination. I think I saw a piece this morning possibly that Texas had already taken 500,000 folks off their Medicaid rolls in a month. I mean given that, I mean, does 8 million lives, does that really stand up? I mean, in 30 days, if that's right -- if that story is right, one state took 500,000 beneficiaries off their rolls, I mean, is 8 million really the number or is that a hope-for number?

是的。是的。好的。然後轉到本次電話會議中另一個最喜歡的主題：重新確定。我想我今天早上看到一篇文章，可能是德克薩斯州在一個月內已經取消了 500,000 人的醫療補助名單。我的意思是，考慮到 800 萬人的生命，這真的站得住腳嗎？我的意思是，在30 天之內，如果這是正確的話——如果這個故事是正確的，一個州將50 萬受益人從名單上剔除，我的意思是，800 萬真的是這個數字還是一個希望的數字？

No. So a lot what you're seeing now, especially over these last couple of quarters, most of the people that are rolling off across the states are going to be re-back-rolled. The challenges states are having is the people are rolling off that actually should not be rolled off, which is why a lot of people have paused that and are taking the time. So I think the CMS requirements and the CMS pausing of things is the right thing to do because many of those members, and I expect many of those members that are 500,000 within Texas are actually eligible to be back on as much as 50% to 80%.

不。所以你現在看到的很多情況，尤其是在過去的幾個季度裡，大多數在各州分流的人都將被重新分流。各州面臨的挑戰是，人們正在放棄實際上不應該放棄的人，這就是為什麼很多人已經暫停並花時間。因此，我認為 CMS 要求和 CMS 暫停是正確的做法，因為其中許多成員，我預計德克薩斯州境內 500,000 名成員中的許多實際上有資格恢復高達 50% 至 80% %。

So when you look at that, that's the lumpiness that's happening now, which is why states are taking longer and pausing. So when it all nets out, that 8 million net that CMS has. If you look -- we grew in membership in certain states because of just the general growth. That's after the redetermination that we know came off. So our customers, what you see in the news, what's happening, I do feel really good about the information that we gave on Page 15. Though broad, 25 million to 50 million, I think CMS' estimate on 8 million is a good kind of middle of the road target based on what's happening right now. The data shows that 50% to 80%, maybe more are going to be re-enrolled. And I think Texas is in the same boat.

所以當你看到這一點時，這就是現在正在發生的混亂，這就是為什麼各州需要更長的時間和暫停。因此，當全部淨值全部釋放後，CMS 就擁有了 800 萬淨值。如果你看一下——我們在某些州的會員人數增長只是因為總體增長。那是在我們所知的重新決定結束之後。所以我們的客戶，你們在新聞中看到的，正在發生的事情，我確實對我們在第15 頁上提供的信息感到非常滿意。儘管範圍很廣，有2500 萬到5000 萬，但我認為CMS對800 萬的估計是一個很好的類型根據現在發生的情況確定中間目標。數據顯示，50% 到 80% 甚至更多的人將重新入學。我認為德克薩斯州也有同樣的情況。

Okay. And just the last question. You guys have sort of alluded to this. But clearly, 90 days ago, you guys didn't have a great sense of sort of the timing, the cadence of when some of these payables would need to be dealt with at least in order to sort of keep relationships with your customers. And it seems like you're saying now, "Hey, look, we've -- given what we've experienced, we've really drilled down on this, and we truly have a sense that we're not going to get hit with some big $20 million payable, hey, during the next 2 weeks." That you're not expecting, Essentially, you have a very -- at this point, unlike maybe 90 days ago, you have a very good sense of the cadence of how this will come in. Is that fair to say?

好的。還有最後一個問題。你們已經提到了這一點。但顯然，90 天前，你們並沒有很好地掌握何時需要處理其中一些應付賬款的時間和節奏，至少是為了保持與客戶的關係。現在你似乎在說，“嘿，看，我們已經——鑑於我們所經歷的，我們真的已經深入研究了這個問題，而且我們確實有一種感覺，我們不會得到在接下來的兩週內，我們將面臨2000 萬美元的巨額應付。”你沒有預料到，本質上，你在這一點上，與 90 天前不同，你對這將如何發生的節奏有很好的感覺。這樣說公平嗎？

No, that is exactly -- during COVID, it was -- the time lines were all over the place. And as recently as 90 days ago, and this is why it was explicit, I wanted to give data around really, it was 2 large customers that had this lack of time line, that is cleared up. We have the time line. We're out of COVID, and we're aligned with them and now we have a lot of predictability.

不，確實是這樣——在新冠疫情期間——時間線到處都是。就在 90 天前，這就是為什麼它是明確的，我真的想提供數據，是 2 個大客戶缺乏時間線，已經清理乾淨了。我們有時間線。我們已經擺脫了新冠疫情，並且與他們保持一致，現在我們有了很多可預測性。

The next question is coming from Miles Highsmith of Deutsche Bank.

下一個問題來自德意志銀行的邁爾斯·海史密斯。

I wanted just to follow up on that last question on redetermination. I guess, I think look at the Kaiser data and it's maybe a little apples and oranges in some ways, but you see really high initial rates on a small sample, like 38% this enrollment, but like 74% are procedural terminations. And I think you just made the point, you expect -- and if I back into like your kind of 10% to 15% guidance that's kind of embedded in that guidance is implying that the bulk of those procedural redeterminations are going to get reversed out. I think you just mentioned a number of 50% to 80%. Do you have an early data experience about these procedural terminations getting reversed? Is that the 50% to 80%? How much like hard data do you have or any anecdotes that might kind of back up that expectation? And then I have a couple of short follow-ups.

我只想跟進有關重新確定的最後一個問題。我想，我認為看看 Kaiser 的數據，在某些方面可能有點像蘋果和橘子，但你會看到小樣本的初始比率非常高，比如 38% 的入學率，但 74% 是程序性終止。我認為你剛剛表達了這一點，你期望的——如果我回到你那種嵌入在該指導中的 10% 到 15% 的指導，這意味著大部分程序性重新決定將被撤銷。我想你剛才提到了50%到80%的數字。您是否有關於這些程序終止被撤銷的早期數據經驗？是50%到80%嗎？您有多少類似的硬數據或任何可能支持這種期望的軼事？然後我有幾個簡短的後續行動。

Yes. So for us in the states that we have, and this is -- we've had redetermination, but the main states that we have, most of those have been pushed off. So where you're seeing the acceleration on people rolling off and then need to come back on. Those are primarily in Republican related states and where we don't have a lot of exposure. So we are seeing it. We are seeing it happen and it's in line with what the market is saying around those are procedural and they come back on. Just the impact hasn't been that large for us because most of us, most of our contracts are in Democratic states, and that hasn't happened yet.

是的。因此，對於我們現有的州來說，我們已經重新決定了，但我們擁有的主要州，其中大部分都被推遲了。所以你會看到人們加速離開然後需要返回。這些主要是在與共和黨相關的州，我們在這些州的曝光度並不高。所以我們正在看到它。我們正在看到這種情況的發生，這與市場所說的有關這些是程序性的並且它們會回來的情況一致。只是影響對我們來說並沒有那麼大，因為我們大多數人，我們的大部分合同都在民主黨州，而這種情況還沒有發生。

Got it. Okay. And then just on accounting. I've got a patient who let's say, get dis-enrolled June 1 goes in July 1 to get their script, realize that they've been disenrolled, has 3 months from that June 1 period to get reenrolled to keep their coverage retroactive and uninterrupted. Let's say they do that in August, is the accounting for you, do you lose that life effective June 1 and if they get that coverage back, do you get kind of a recouped payment per member per month once that is reinstated again? Or I just want to make sure I understand the accounting pieces of it.

知道了。好的。然後就是會計。我有一個病人，比方說，6 月1 日被註銷，7 月1 日去獲取他們的腳本，意識到他們已經被註銷，從6 月1 日起有3 個月的時間重新註冊，以保持他們的承保具有追溯性，不間斷。假設他們在 8 月份這樣做，那麼對你來說，你是否會從 6 月 1 日起失去生命，如果他們恢復了保險，一旦再次恢復，你是否會每月為每個會員收回付款？或者我只是想確保我了解其中的會計部分。

Yes. No. So if that person rolled off for 3 months as an example, we would not get paid for that person. And then 3 months later when they came on, we would be start getting paid -- and we would be just getting paid going forward. We wouldn't be recouped for that. The only difference for that, if they're a utilizer, we would reconcile with them. So we get files every day and every month. So there is a reconciliation process. But if they were not utilizer, we're not going to get paid. If they were a utilizer, that would flow out in our reconciliation processes as getting paid.

是的。不會。例如，如果該人離職 3 個月，我們就不會為該人獲得報酬。三個月後，當他們上任時，我們將開始獲得報酬——而且我們只會繼續獲得報酬。我們不會因此得到補償。唯一的區別是，如果他們是利用者，我們會與他們達成一致。所以我們每天、每個月都會收到文件。所以有一個和解的過程。但如果他們不是利用者，我們就不會獲得報酬。如果他們是利用者，這將在我們的對賬流程中作為獲得報酬而流出。

Okay. Great. And last 1 for me, just maybe at a more basic level, I see on your slide, the cost structure optimizations on automation in the next 12 to 18 months and the savings associated with those. And I'm reading [Rice's] calls eliminated, reservations calls eliminated. Maybe can you just give us a short kind of real-world example of like how it gets done now and like how it looks when somebody tries to schedule a ride? Is it a text now? Kind of what is it -- what's the change and what does it look like? Because those are kind of big numbers. That's all I have.

好的。偉大的。最後 1 對我來說，也許只是在更基本的層面上，我在幻燈片上看到了未來 12 到 18 個月的自動化成本結構優化以及與這些相關的節省。我讀到[賴斯]的電話被取消了，預訂電話被取消了。也許你能給我們提供一個簡短的現實世界例子，比如現在是如何完成的，以及當有人試圖安排乘車時的樣子？現在是文字嗎？它是什麼——有什麼變化以及它是什麼樣子的？因為這些數字很大。這就是我的全部。

From a call center perspective, which is on that Page 13 is the top part, and we've said this before, we do right now about 28 million calls, 28 million calls at a cost of $4. So those 28 million calls are the majority of the interactions that we have with our members. So the opportunities that we put down here are very reasonable based on our population, the type of technology they use with common technology like a text message. The big opportunity is around when someone needs information and assistance for ride.

從呼叫中心的角度來看，第 13 頁是頂部部分，我們之前已經說過，我們現在處理了大約 2800 萬個呼叫，2800 萬個呼叫的成本為 4 美元。因此，這 2800 萬個電話是我們與會員互動的大部分。因此，根據我們的人口、他們使用的技術類型以及短信等常見技術，我們在這裡列出的機會是非常合理的。當有人需要乘車信息和幫助時，就是一個巨大的機會。

So with the automation and then even the improved kind of performance on transportation, that's very reasonable that we can get 75% of those out, where they get a text message saying your car is 5 minutes away. Or instead of calling us, they call the transportation provider directly because now we've done a better job at aligning that member to the TP. So there's just -- so that's text messaging, calling the TP themselves, using the app, using the website, all those are common technologies that are starting, but we're still really, though we understand what it is, the rollout of that and the usage of that is still in early innings, which is why we expect the full cost savings to start coming at end of 2024.

因此，通過自動化，甚至交通性能的改進，我們可以將其中 75% 的人排除在外，這是非常合理的，他們會收到一條短信，說您的車就在 5 分鐘路程之外。或者，他們不打電話給我們，而是直接致電交通提供商，因為現在我們在將該會員與 TP 保持一致方面做得更好。所以，這就是短信、給 TP 打電話、使用應用程序、使用網站，所有這些都是正在啟動的常見技術，但我們仍然確實在推出該技術，儘管我們了解它是什麼。而且其使用仍處於早期階段，這就是為什麼我們預計在2024 年底開始實現全部成本節約。

At this time, I'd like to turn the floor back over to Mr. Sampson for closing comments.

現在，我想將發言權交還給桑普森先生以供結束髮言。

Great. So thank you for participating in our call this morning, for your interest in Modivcare. Our updated investor presentation and accompanying supplemental deck are posted on our IR website. If you want to schedule a follow-up call, please call Kevin Ellich, our Head of Investor Relations. We look forward to speaking to many of you over the coming days, weeks and months before we report our third quarter results in November. So thank you again. Have a great day. And operator, this concludes our call.

偉大的。感謝您今天早上參加我們的電話會議，感謝您對 Modivcare 的興趣。我們更新的投資者介紹和隨附的補充資料已發佈在我們的投資者關係網站上。如果您想安排後續電話會議，請致電我們的投資者關係主管 Kevin Ellich。我們期待在未來幾天、幾周和幾個月內與你們中的許多人交談，然後我們將在 11 月報告第三季度業績。所以再次感謝你。祝你有美好的一天。接線員，我們的通話到此結束。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.

女士們、先生們，感謝您的參與。今天的活動到此結束。此時您可以斷開線路或註銷網絡廣播，然後享受剩下的一天。