ModivCare Inc (MODV) 2023 Q3 法說會逐字稿

Good morning, and welcome to Modivcare's Third Quarter 2023 Financial Results Conference Call. (Operator Instructions). Please note this conference is being recorded. I would now turn the call over to Kevin Ellich, Head of Investor Relations. Mr. Ellich, you may begin.

早上好，歡迎參加 Modivcare 2023 年第三季財務業績電話會議。 （操作員說明）。請注意，本次會議正在錄製中。我現在將把電話轉給投資者關係主管凱文·埃里奇(Kevin Ellich)。埃利奇先生，您可以開始了。

Good morning, and thank you for joining Modivcare's Third Quarter 2023 Earnings Conference Call and Webcast.

早安，感謝您參加 Modivcare 2023 年第三季財報電話會議和網路廣播。

Joining me today is Heath Sampson, Modivcare's President and Chief Executive Officer; and Barbara Gutierrez, Modivcare's Chief Financial Officer. 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.

今天加入我的是 Modivcare 總裁兼執行長 Heath Sampson；以及 Modivcare 財務長 Barbara Gutierrez。在我們開始之前，我想提醒大家，在今天的電話會議中，管理階層將根據《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有重大差異。

Information regarding these factors is contained in today's press release and in the company's filings with the SEC. 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.

有關這些因素的資訊包含在今天的新聞稿和公司向 SEC 提交的文件中。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資訊。我們的新聞稿和 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較的 GAAP 財務指標的調整表。

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, Barbara Gutierrez will review our financial results, then we'll open the call for questions.

今天的電話會議結束後約 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，芭芭拉·古鐵雷斯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。

Good morning, everyone, and thank you, Kevin. I'm proud of our commitment to deliver high-quality supportive care to our 34 million members. This quarter, we were able to show significant improvement in many areas, which resulted in strong third quarter results. We generated robust free cash flow of approximately $45 million. Our NEMT or mobility adjusted EBITDA margins sequentially improved by 150 basis to 7.3%.

大家早安，謝謝你，凱文。我為我們致力於為 3400 萬會員提供高品質支持性護理的承諾感到自豪。本季度，我們在許多領域都取得了顯著的進步，從而帶來了強勁的第三季業績。我們產生了約 4500 萬美元的強勁自由現金流。我們的 NEMT 或流動性調整後 EBITDA 利潤率連續提高 150 個基點，達到 7.3%。

Additionally, we delivered on our commitment and paid down $43.5 million on our revolving credit facility. Lowering our bank-defined net leverage ratio to 4.6x. It's been a year since I took the permanent reign and the journey has been enlightening. Our strong performance are a direct result from the enhancements and progress we've made across numerous parts of our business, recognizing the near-term challenges we face, which may have been more pronounced than initially perceived, addressing and demanded targeting investments in bold, decisive actions.

此外，我們兌現了承諾並支付了 4,350 萬美元的循環信貸額度。將銀行定義的淨槓桿率降低至 4.6 倍。我正式掌權已經一年了，這段旅程頗具啟發性。我們強勁的業績是我們在業務的許多方面取得的增強和進步的直接結果，我們認識到我們面臨的近期挑戰可能比最初想像的更加明顯，解決並要求大膽地進行針對性投資，果斷的行動。

While these actions caused some short-term headwinds, particularly in Q1 and Q2 cash flow margin, they were undeniably the right choices essential and position us for a promising future. As we navigated this transformative year, our course has been guided by 4 strategic pillars: people; operational excellence; growth; and innovation. Now let's dive into a few of these achievements within these pillars. In regards to people, we've rebuilt the organization and have been laser focused on optimizing talent, aligning our teammates with our vision and values.

雖然這些行動造成了一些短期阻力，特別是在第一季和第二季的現金流利潤率方面，但它們無疑是正確的選擇，使我們的未來充滿希望。在我們度過這項變革性的一年時，我們的方針以四大策略支柱為指導：人員；卓越營運；生長;和創新。現在讓我們深入探討這些支柱中的一些成就。在人員方面，我們重建了組織，並專注於優化人才，使我們的團隊成員與我們的願景和價值觀保持一致。

During the quarter, we welcomed 2 new members to our executive leadership team. Enrique Toledo as our new Chief People Officer. And Barb Gutierrez as our new Chief Financial Officer. I couldn't be more excited to partner with them and all the new leaders we have -- that have joined Modivcare over the last year or so. Through disciplined financial management, a structured accountability framework and streamlined process management, we have significantly advanced towards operational excellence, which has enabled us to address challenges, including the repayment of contracts payable in our mobility business, reducing our leverage this quarter and laying the groundwork to improve the flexibility of our capital structure.

本季度，我們的執行領導團隊迎來了 2 位新成員。恩里克·托萊多 (Enrique Toledo) 擔任我們新任首席人力官。 Barb Gutierrez 擔任我們新任財務長。我非常高興能與他們以及我們所有在過去一年左右加入 Modivcare 的新領導者合作。透過嚴格的財務管理、結構化的問責框架和簡化的流程管理，我們在卓越營運方面取得了顯著進展，這使我們能夠應對挑戰，包括償還行動業務中的應付合約、降低本季的槓桿率並奠定基礎提高資本結構的彈性。

We are dedicated to developing scalable operations fortified by automation and AI technologies. Such initiatives are important to enhancing operational efficiency, elevating service quality, expanding our revenue model and ensuring long-term margin stability. With respect to growth, we broadened and strengthened our customer base with new and existing relationships. In the area of innovation, we've modernized across all pillars and enhanced our data and analytics capabilities, investing in platform technology and people to bridge supportive care to clinical care, particularly as the U.S. health care system accelerates to more value-based payments.

我們致力於開發透過自動化和人工智慧技術強化的可擴展營運。這些措施對於提高營運效率、提升服務品質、擴大我們的收入模式和確保長期利潤穩定具有重要意義。在成長方面，我們透過新的和現有的關係擴大和加強了我們的客戶群。在創新領域，我們實現了所有支柱的現代化，並增強了我們的數據和分析能力，投資於平台技術和人員，將支持性護理與臨床護理聯繫起來，特別是在美國醫療保健系統加速轉向更加基於價值的支付的情況下。

Our distinct advantage lies in the fact that we have more frequent access to our customer members more than maybe they themselves do. Through the provision supportive care services that assist members in managing their daily lives. We foster genuine connections with them and build trust. This established trust subsequently empowers us to engage and intervene on behalf of our customers. We now have earned the right to do more for the members because we now deliver exceptional service. Now let's provide some segment highlights for the third quarter. Starting with mobility.

我們獨特的優勢在於，我們比客戶成員更頻繁地接觸他們。透過提供支持性照護服務，協助會員管理日常生活。我們與他們建立真正的聯繫並建立信任。這種建立的信任隨後使我們能夠代表客戶參與和介入。我們現在贏得了為會員做更多事情的權利，因為我們現在提供卓越的服務。現在讓我們提供第三季的一些細分市場亮點。從移動性開始。

This segment has been transformed through 3 main initiatives: multimodal trip assignment, omnichannel member engagement and customer integration. These initiatives are the drivers of our $30 million to $50 million cost savings, targeted over the next 12 months. Drilling down on each initiative, starting with multimodal trip assignment. We've deployed sophisticated automation and AI algorithms to an array of transportation modalities that best fit our members' needs.

該細分市場透過三項主要舉措進行了轉型：多式聯運旅行分配、全通路會員參與和客戶整合。這些措施推動我們在未來 12 個月內節省 3,000 萬至 5,000 萬美元的成本。從多式聯運旅行分配開始，深入研究每項措施。我們已將複雜的自動化和人工智慧演算法部署到一系列最適合會員需求的交通方式中。

Whether it's through our network of providers offering everything from standard sedans to wheelchair-accessible vehicles to advanced or basic life support or through our TNC or rideshare partnerships or even mass transit and mileage reimbursement. We ensure that our members receive the right service, at the right time, at the optimal cost.

無論是透過我們的供應商網路提供從標準轎車到輪椅無障礙車輛到高級或基本生命支持的一切服務，還是透過我們的 TNC 或共乘合作夥伴關係，甚至公共交通和里程報銷。我們確保我們的會員在正確的時間以最優的成本獲得正確的服務。

Next is our omnichannel member engagement, which is more customer oriented and focused on reaching our members where they are, whether it's through the phone, the Internet, mobile apps, IVA/IVR, text message or even automated chatbot. By providing flexible points of engagement, we're not only enhancing member satisfaction, but also reducing operational costs. Lastly, customer integration is crucial, enhancing both our operational efficiency and customer relationships. We've introduced real-time eligibility and insights directly into our customers' digital platform.

接下來是我們的全通路會員參與，它更加以客戶為導向，專注於接觸我們的會員，無論是透過電話、網路、行動應用程式、IVA/IVR、簡訊甚至自動聊天機器人。透過提供靈活的參與點，我們不僅提高了會員滿意度，還降低了營運成本。最後，客戶整合至關重要，它可以提高我們的營運效率和客戶關係。我們已將即時資格和見解直接引入客戶的數位平台。

Furthermore, we aim to merge our technology into our customers' call centers, allowing them a closer management of member experience and concurrently reducing our operational costs. The financial impact of our mobility operational excellence initiatives is primarily reflected in our payroll and other expense per trip metric, which decreased 1.5% quarter-over-quarter and drove $1 million of cost savings during the quarter. Keep in mind, some of our mobility initiatives were implemented mid- to late quarter. And on a run rate basis, our cost savings would have been more like $2 million to $3 million, had they been operationalized for the full quarter.

此外，我們的目標是將我們的技術融入客戶的呼叫中心，使他們能夠更密切地管理會員體驗，同時降低我們的營運成本。我們的行動營運卓越計畫的財務影響主要體現在我們的薪資和每次行程的其他費用指標上，該指標環比下降 1.5%，並在本季度節省了 100 萬美元的成本。請記住，我們的一些移動計劃是在季度中後期實施的。按照運行率計算，如果它們在整個季度投入運行，我們的成本節省將約為 200 萬至 300 萬美元。

Other initiatives, specifically our multimodal strategy, will reduce purchase service expense per trip, which is an important metric for our full risk contracts and honoring our commitments to all our customers. Moving to Medicaid redetermination, which is unfolding as expected and tracking in line with our internal projections as further corroborated by external sources such as Kaiser and CMS. Our shared risk contracts are operating effectively and as intended, safeguarding our gross margins against the backdrop of increasing utilization and costs.

其他舉措，特別是我們的多式聯運策略，將減少每次行程的購買服務費用，這是我們全面風險合約和履行我們對所有客戶的承諾的重要指標。轉向醫療補助重新確定，該項目正在按預期展開，並按照我們的內部預測進行跟踪，並得到 Kaiser 和 CMS 等外部來源的進一步證實。我們的風險共擔合約正在按預期有效運作，在利用率和成本不斷增加的背景下保障了我們的毛利率。

The challenges brought about by Medicaid redetermination notwithstanding, our margins consistently match our forecast. This instills confidence in the accuracy of our internal redetermination model. As it stands, we are going to be in line with our 2023 expectations for redetermination as well as our expectations for 2024, which we expect to be a $20 million to $40 million impact. This impact will be mitigated by our $30 million to $50 million cost-saving initiatives over the next 12 months, plus our sales growth.

儘管醫療補助重新確定帶來了挑戰，但我們的利潤率始終符合我們的預測。這讓我們對內部重新確定模型的準確性充滿信心。就目前情況而言，我們將符合 2023 年重新確定的預期以及對 2024 年的預期，預計這將產生 2000 萬至 4000 萬美元的影響。我們在未來 12 個月內實施 3,000 萬至 5,000 萬美元的成本節約計劃，加上我們的銷售成長，將減輕這種影響。

Over the past year, as we frequently pointed out, our mobility revenue has been grossed up by pass-through trip volume and costs. This trend has become increasingly evident as health care utilization returns to an expected and normalized level. Although this may make challenge to understand our percent margins within this pass-through revenue, our shared risk contracts with the customers are protecting the downside to our cash flow, creating a win-win situation for us and our customers.

正如我們經常指出的那樣，在過去的一年裡，我們的出行收入已被轉乘出行量和成本所累積。隨著醫療保健利用率恢復到預期和正常化水平，這種趨勢變得越來越明顯。儘管這可能對了解我們在轉嫁收入中的利潤率構成挑戰，但我們與客戶的分擔風險合約正在保護我們現金流的下行趨勢，為我們和客戶創造雙贏的局面。

Again, from a revenue perspective, our primary focus is growing our sales pipeline. We're optimistic about realizing the benefits from new wins this year and next year. For example, we continue to add wins. This quarter, we won new mobility MCO business with a total contract value of $138 million, most of which will start in 2024. We also renewed and were awarded additional regions in our state mobility business, and we received an extension on another sizable state contract. Our pipeline is strong and continues to grow. Now to Personal Care. Our revenue is healthy and growing in mid-single digits.

同樣，從收入的角度來看，我們的主要重點是擴大我們的銷售管道。我們對今年和明年實現新勝利的好處持樂觀態度。例如，我們繼續增加勝利。本季度，我們贏得了新的行動MCO 業務，合約總價值為1.38 億美元，其中大部分將於2024 年開始。我們還續簽並獲得了州移動業務的更多區域，並且我們獲得了另一份規模較大的州合約的延期。我們的產品線很強大且持續成長。現在到個人護理。我們的收入保持健康，並以中個位數成長。

Personal care hours continue to trend in the right direction, and we expect 3% to 5% hours growth for the year. The personal care reimbursement environment remains good, as we received rate increases in several states that correspond with the higher wages for caregivers. Our margins are stable and as expected. As noted earlier, we expect operating expenses to decrease as we complete centralizing, standardizing and automating in 2024, which will enable us to maintain our adjusted EBITDA margin target of 10% to 12%, while continuing to invest in growth.

個人護理時間繼續朝著正確的方向發展，我們預計今年的時間將成長 3% 至 5%。個人護理報銷環境仍然良好，因為我們在幾個州收到了與護理人員工資上漲相對應的費率上漲。我們的利潤率穩定且符合預期。如前所述，我們預計隨著 2024 年完成集中化、標準化和自動化，營運費用將會減少，這將使我們能夠維持 10% 至 12% 的調整後 EBITDA 利潤率目標，同時繼續投資於成長。

On the regulatory front within PCS, specifically, CMS' proposed HCBS rule, we remain aligned with other industry stakeholders and expect the final rule could be issued during the first half of 2024 and then would be implemented over the next 4 years. Other than the 80/20 provision, we are generally supportive of the proposed role. It is focused on quality and safety measures, increased transparency and the rate setting process. We also believe the proposed rule could benefit companies like ours that have professionalized operations at scale with enterprise level compliance programs.

在 PCS 的監管方面，特別是 CMS 提議的 HCBS 規則，我們與其他行業利益相關者保持一致，預計最終規則可能會在 2024 年上半年發布，然後在未來 4 年內實施。除了 80/20 的規定外，我們總體上支持擬議的角色。它的重點是品質和安全措施、提高透明度和費率制定過程。我們也相信，擬議的規則可以使像我們這樣透過企業級合規計畫進行大規模專業化營運的公司受益。

In the remote patient monitoring segment, revenue growth is solid and driven primarily by industry-leading referral sales penetrating new Medicaid markets with Personal Emergency Response or PRS. Going beyond PRS, our monitoring and innovation teams are making meaningful strides in exceeding our customers' expectations by improving quality measures and increasing member satisfaction, while reducing cost. Additionally, our sales team has taken advantage of these new capabilities, having closed 17 new programs this year, including 6 this quarter.

在遠距病患監護領域，收入成長穩健，主要是由業界領先的轉介銷售透過個人緊急應變或 PRS 滲透到新的醫療補助市場所推動的。除了 PRS 之外，我們的監控和創新團隊還透過改善品質措施和提高會員滿意度，同時降低成本，在超越客戶期望方面取得了有意義的進展。此外，我們的銷售團隊還利用了這些新功能，今年完成了 17 個新項目，其中本季有 6 個。

Our customers find our services make a real difference, beyond the services that we provide. We're not just sending emergency alerts to case managers. We're providing insights that improves patient care, while driving down costs. For example, a recent pilot study with a leading commercial payer showed that members who are integrated with our tech-enabled care center anchored by our foundational support of care services experienced a remarkable 71% reduction in costs.

我們的客戶發現我們的服務帶來了真正的改變，超越了我們所提供的服務。我們不僅僅是向案件管理員發送緊急警報。我們提供的見解可以改善患者護理，同時降低成本。例如，最近與一家領先的商業付款人進行的一項試點研究表明，加入我們以技術為基礎的護理服務基礎支持的護理中心的會員，其成本顯著降低了 71%。

This pertained to individuals with disabilities, the elderly and those in need of long-term care services. Understandably, this customer is eager to expand with us to the next phase of the program. Digital risk assessments are another example of our innovative offering. Unlike our customers, who struggle to proactively risk stratify the population because of the challenges they face, engaging their members, we can do it and if this is unique. These new value-added services on the shoulders of our trusted relationships and differentiate us from our competition, we'll share more about the financial aspects of these new services when we discuss our plans for 2024 early next year.

這涉及殘疾人、老年人和需要長期照護服務的人。可以理解的是，該客戶渴望與我們一起擴展該計劃的下一階段。數位風險評估是我們創新產品的另一個例子。與我們的客戶不同，我們的客戶由於面臨挑戰而努力主動對人群進行風險分層，吸引他們的會員，我們可以做到，如果這是獨一無二的。這些新的增值服務以我們值得信賴的關係為基礎，使我們在競爭中脫穎而出，當我們明年初討論 2024 年的計劃時，我們將分享更多有關這些新服務的財務方面的信息。

Next, a quick update on our equity investment in Matrix Medical, which holds significant value. Matrix has consistently performed well over the last few quarters, aligning with our monetization expectations for adjusted EBITDA between $50 million to $100 million. We own 43.6% minority stake in Matrix, and we remain aligned with our partner on a timeline to monetization. We look forward to unlocking its unrealized value, as it also helps to fortify our balance sheet, further positioning us to capitalize on growth opportunities.

接下來，簡單介紹一下我們對 Matrix Medical 的股權投資，這項投資具有重大價值。 Matrix 在過去幾季一直表現良好，符合我們調整後 EBITDA 在 5,000 萬至 1 億美元之間的貨幣化預期。我們擁有 Matrix 43.6% 的少數股權，我們與合作夥伴在貨幣化時間表上保持一致。我們期待釋放其未實現的價值，因為它也有助於強化我們的資產負債表，進一步使我們能夠利用成長機會。

Before handing the call over to Barb, I want to extend my deepest appreciation to the entire Modivcare team for their relentless dedication and effort. The past year presented a number of changes, each with a set of challenges, yet the team has undeniably fortified our foundation. Our robust third quarter results, not only underscores the financial resilience of our platform, but also highlights the substantial cash flow generation of our business. This, in turn, aids in our deleveraging so we can focus on growth and driving long-term shareholder value. Now I'd like to pass the call to our CFO, Barb Gutierrez, who will provide an overview of our financial performance for the third quarter. Barb?

在將電話轉交給 Barb 之前，我想對整個 Modivcare 團隊的不懈奉獻和努力致以最深切的謝意。過去的一年發生了許多變化，每一個變化都帶來了一系列挑戰，但無可否認，團隊已經鞏固了我們的基礎。我們強勁的第三季業績不僅凸顯了我們平台的財務彈性，還凸顯了我們業務的大量現金流生成。這反過來又有助於我們去槓桿化，使我們能夠專注於成長並推動長期股東價值。現在我想將電話轉給我們的財務長 Barb Gutierrez，他將概述我們第三季的財務表現。倒鉤？

Thank you, Heath, and good morning, everyone. Before I provide the third quarter financial review, I'd like to say that I'm thrilled to be here and very excited for the future of Modivcare. As Heath mentioned in his remarks, our quarter was highlighted by strong free cash flow of $45 million. NEMT adjusted EBITDA margins improved by about 150 basis points sequentially to 7.3% as repayment of $43.5 million on our revolver, which reduced our bank-defined net leverage ratio to 4.6x.

謝謝希斯，大家早安。在提供第三季財務回顧之前，我想說，我很高興來到這裡，並對 Modivcare 的未來感到非常興奮。正如 Heath 在演講中提到的，我們季度的亮點是 4500 萬美元的強勁自由現金流。 NEMT 調整後的 EBITDA 利潤率環比提高了約 150 個基點，達到 7.3%，因為我們償還了 4,350 萬美元的左輪手槍，這將我們銀行定義的淨槓桿率降低到了 4.6 倍。

Third quarter 2023 revenue increased 6% year-over-year to $687 million driven by approximately 6% growth in our Mobility segment, 6% growth in our Personal Care segment and 5% growth in Remote Patient Monitoring. Net loss was approximately $4 million. However, adjusted net income was $20 million or $1.44 per diluted share. Adjusted EBITDA in the third quarter was $51 million. G&A expense was lower on a year-over-year and sequential basis due to leverage created from our restructuring efforts, net of strategic reinvestments made in innovation and growth activities.

2023 年第三季營收年增 6%，達到 6.87 億美元，這主要得益於我們的行動部門成長約 6%、個人護理部門成長 6% 以及遠端病患監控部門成長 5%。淨虧損約 400 萬美元。然而，調整後淨利潤為 2000 萬美元，即稀釋後每股收益 1.44 美元。第三季調整後 EBITDA 為 5,100 萬美元。由於我們的重組工作所產生的槓桿作用（扣除在創新和成長活動中進行的策略再投資），一般管理費用年比和季比均較低。

We will continue to balance our opportunities to drive efficiencies and leverage in our cost structure, while promoting and generating growth. NEMT third quarter revenue of $486 million was driven by a 10% increase in paid trips, partially offset by a 4% decrease in revenue per trip. The decrease in revenue per trip was attributed to 3% lower purchase services expense per trip, which flows through to revenue in our shared risk contracts. Total membership decreased 6.6% year-over-year to 33.7 million members.

我們將繼續平衡提高成本結構效率和槓桿率的機會，同時促進和創造成長。 NEMT 第三季營收為 4.86 億美元，主要得益於付費旅遊 10% 的成長，但每次旅遊收入下降 4% 部分抵消了這一成長。每次旅行收入的下降歸因於每次旅行的購買服務費用降低了 3%，這轉化為我們的風險共擔合約中的收入。會員總數較去年同期下降 6.6% 至 3,370 萬名會員。

On a sequential basis, average monthly members during the quarter decreased 2%, driven primarily by the impact from Medicaid redetermination, which was in line with our expectations. Sequentially, NEMT gross margin increased 80 basis points as transportation cost per trip decreased 5% sequentially to $41.21. While payroll and other costs per trip decreased 1.5% to $7.30, driven by our strategic initiatives to improve unit cost through our multimodal delivery strategy and our omnichannel communication strategy, respectively.

從環比來看，本季的月平均會員人數下降了 2%，這主要是受到醫療補助重新確定的影響，這符合我們的預期。隨後，NEMT 毛利率增加了 80 個基點，每次行程運輸成本較上季下降 5% 至 41.21 美元。而每次行程的工資和其他成本下降了 1.5% 至 7.30 美元，這主要是由於我們分別透過多式聯運策略和全通路溝通策略來降低單位成本的策略措施的推動。

Paid trip volume in the third quarter increased 1% sequentially and monthly utilization per member increased to 8.7% compared to 8.5% in the second quarter, which was in line with our expectations. As a result of our strategic initiatives, NEMT adjusted EBITDA for the third quarter was $35 million or 7.3% of revenue, which was a 150 basis point sequential improvement from 5.8% in the second quarter.

第三季付費旅遊量較上季成長 1%，每位會員的月度使用率從第二季的 8.5% 增加至 8.7%，符合我們的預期。由於我們的策略性舉措，NEMT 第三季調整後的 EBITDA 為 3,500 萬美元，佔營收的 7.3%，比第二季的 5.8% 環比提高了 150 個基點。

The improvement was driven by a $4 million reduction in adjusted G&A as well as improved gross profit per trip. During the quarter, Medicaid redetermination reduced our Medicaid membership by approximately 1 million members, bringing our Medicaid membership to approximately 27 million members.

這項改善是由於調整後的一般管理費用減少了 400 萬美元以及每次旅行毛利的提高。本季度，醫療補助重新確定使我們的醫療補助會員人數減少了約 100 萬，使我們的醫療補助會員人數達到約 2700 萬。

Since April 1, redetermination has adversely impacted our Medicaid membership by about 5% and is tracking in line with our original target of a 10% to 15% growth impact on membership. Redetermination impacted adjusted EBITDA by approximately $3 million in the third quarter, and the effect was all within our full risk contracts. The impact was in line with our expectations for the quarter and our full year expectations. We continue to expect the impact of redetermination for the second half of 2023 to be $5 million to $10 million, which is reflected in our guidance.

自 4 月 1 日起，重新確定對我們的醫療補助會員資格產生了約 5% 的不利影響，並且正在按照我們對會員資格增長 10% 至 15% 的影響增長的最初目標進行跟踪。重新確定對第三季調整後 EBITDA 的影響約為 300 萬美元，影響全部在我們的全風險合約範圍內。這一影響符合我們對本季和全年的預期。我們仍然預計 2023 年下半年重新確定的影響將為 500 萬至 1000 萬美元，這已反映在我們的指導下。

We also continue to expect a $20 million to $40 million adjusted EBITDA impact from redetermination in 2024. It's important to remember that we are materially protected from redetermination on our shared risk contracts, which account for 65% of our NEMT revenue. Even though we'll lose some Medicaid members in shared risk contracts, we will receive a corresponding increase in revenue PMPM on the remaining Medicaid members, resulting from higher utilization because of the construct of these contracts, thereby protecting our gross margin dollars on the majority of the NEMT business.

我們也繼續預計2024 年重新確定將產生2000 萬至4000 萬美元的調整後EBITDA 影響。重要的是要記住，我們在共享風險合約中受到實質性保護，不會受到重新確定的影響，該合約占我們NEMT 收入的65%。儘管我們將在分擔風險合約中失去一些醫療補助成員，但由於這些合約的建構而導致利用率提高，我們將在剩餘醫療補助成員上獲得相應的收入 PMPM 增加，從而保護我們大多數的毛利率NEMT業務。

Our risk or exposure to redetermination is primarily on the members we lose in full risk contracts, which account for approximately 20% of our NEMT revenue. Turning to our Home division. Third quarter Personal Care Services, or PCS revenue increased 6% year-over-year to $180 million, driven by a 2% growth in hours and a 4% increase in revenue per hour. Third quarter PCS adjusted EBITDA was approximately $18 million or 9.8% of revenue, which is in line with our commentary from last quarter, and at the lower end of our long-term expected range of 10% to 12%.

我們的風險或重新決定的風險主要來自我們在完全風險合約中失去的成員，這些成員約占我們 NEMT 收入的 20%。轉向我們的家庭部門。第三季個人照護服務（PCS）營收年增 6%，達到 1.8 億美元，這得益於工作時間成長 2% 和每小時收入成長 4%。第三季 PCS 調整後 EBITDA 約為 1,800 萬美元，佔營收的 9.8%，這與我們上季的評論一致，處於我們長期預期範圍 10% 至 12% 的下限。

In our remote patient monitoring or RPM segment, revenue increased 5% year-over-year to approximately $20 million driven by new referral sales and business wins. While year-over-year growth this quarter was lower than prior quarters, we expect growth to rebound going forward and still expect full year revenue growth in our long-term range in the mid-teens.

在我們的遠端患者監測或 RPM 領域，由於新的轉診銷售和業務勝利，收入同比增長 5% 至約 2000 萬美元。雖然本季的年增率低於前幾個季度，但我們預計未來成長將反彈，並且仍預計全年收入成長在我們的長期範圍內。

Third quarter RPM adjusted EBITDA was $7.2 million or 36% margin. We continue to expect long-term RPM adjusted EBITDA margins will be in the mid-30% range. Our monitoring business is performing well and 2023 is proving to be one of its most productive years for winning new deals, referrals growth and adding strategic programs with customers.

第三季以 RPM 調整後的 EBITDA 為 720 萬美元，利潤率為 36%。我們繼續預計長期 RPM 調整後 EBITDA 利潤率將在 30% 左右。我們的監控業務表現良好，2023 年被證明是贏得新交易、推薦成長和與客戶一起增加策略計劃方面最富有成效的年份之一。

Turning to our cash flow and balance sheet. During the third quarter, we generated strong free cash flow of $45 million, driven by cash flow from operations of $53 million less capital expenditures of $9 million, which was 1.3% of revenue. Positive operating cash flow was driven by lower working capital needs as contract payables was a source of $24 million and contract receivables was a use of $9 million for a net benefit of $15 million.

轉向我們的現金流和資產負債表。第三季度，我們產生了 4,500 萬美元的強勁自由現金流，這得益於 5,300 萬美元的營運現金流減去 900 萬美元的資本支出，佔收入的 1.3%。營運資金需求下降推動了正營運現金流，因為合約應付帳款來源為 2,400 萬美元，合約應收帳款使用了 900 萬美元，淨收益為 1,500 萬美元。

Now that contract payables and receivables are at more normalized levels, going forward, we believe the net balance of payables and receivables could be plus or minus $20 million to $30 million annually in either direction based on our contracts and timing of payments and settlements. During the third quarter, we repaid $43.5 million on our revolving credit facility, ending the quarter with a balance of $83 million as of September 30, 2023. Our $1 billion of long-term senior unsecured debt was flat sequentially and at fixed rates with a weighted average cost of long-term debt at 5.4%.

現在，合約應付帳款和應收帳款處於更正常化的水平，展望未來，我們認為，根據我們的合約以及付款和結算時間，應付帳款和應收帳款淨餘額每年可能在任一方向正負2000 萬至3000 萬美元。第三季度，我們償還了4,350 萬美元的循環信貸額度，截至2023 年9 月30 日，本季度末餘額為8,300 萬美元。我們10 億美元的長期優先無擔保債務與上一季持平，並按固定利率計算。長期債務加權平均成本為5.4%。

In the fourth quarter, we have semiannual interest payments of approximately $30 million, which means our free cash flow is expected to be nearly flat after these payments. This still puts us on track to achieve our second half of 2023 target of repaying $30 million to $50 million on our revolver. Our bank-defined net leverage ratio declined sequentially to 4.6x as of September 30, 2023 compared to 4.7x in the second quarter. Our primary use of free cash flow going forward will be to pay down on our revolver and delever as we remain committed to a disciplined capital allocation strategy.

第四季度，我們半年支付的利息約為 3000 萬美元，這意味著在這些支付後我們的自由現金流預計將幾乎持平。這仍然使我們有望實現 2023 年下半年償還 3,000 萬至 5,000 萬美元左輪手槍的目標。截至 2023 年 9 月 30 日，我們銀行定義的淨槓桿率連續下降至 4.6 倍，而第二季為 4.7 倍。我們未來對自由現金流的主要用途將是償還我們的左輪手槍和去槓桿，因為我們仍然致力於嚴格的資本配置策略。

There's an updated cash flow bridge in our quarterly investor presentation on our IR website, which illustrates cash flow for each quarter. Frequently, we are asked about the refinancing plan for our 2025 unsecured senior notes. As a reminder, the interest rate on these notes is [5% and 7%, 8%] , and the bonds mature in November of 2025. We are diligently assessing options based on deep market insights and actively monitoring market trends to determine the optimal time to refinance with the goal of maintaining the maximum flexibility in our capital structure.

我們的投資者關係網站上的季度投資者演示中有更新的現金流橋，其中說明了每個季度的現金流。我們常被問到 2025 年無抵押高級票據的再融資計畫。需要提醒的是，這些票據的利率為[5%、7%、8%]，債券將於2025年11月到期。我們正在根據深入的市場洞察認真評估選項，並積極監控市場趨勢，以確定最佳利率是時候進行再融資了，以保持我們資本結構的最大靈活性。

Turning to our 2023 guidance, we are maintaining our guidance for revenue in a range of $2.75 billion to $2.8 billion and adjusted EBITDA in a range of $200 million to $210 million. However, we currently expect full year revenue to be near the low end of our guidance range due to lower revenue pass-throughs in mobility as a result of lower-than-expected purchased services expense per trip. In summary, we are extremely encouraged by the financial results and significant cash generated in the third quarter. We continue to make progress on our strategic initiatives and the results are showing up in our operating metrics which all trended in the right direction this quarter.

談到 2023 年的指導，我們將營收指引維持在 27.5 億美元至 28 億美元的範圍內，調整後的 EBITDA 維持在 2 億美元至 2.1 億美元的範圍內。然而，我們目前預計全年收入將接近我們指導範圍的低端，因為每次出行購買的服務費用低於預期，導致流動性收入傳遞較低。總之，我們對第三季的財務表現和產生的大量現金感到非常鼓舞。我們持續在策略舉措上取得進展，結果也體現在我們的營運指標中，本季所有指標都朝著正確的方向發展。

We still have more work to do, but it's great to see the progress and the momentum. I'd like to thank Heath and the team for welcoming me. And once again, I'm thrilled to be here. I know it's all our team members from our caregivers and drivers in the field to all of our support functions that make our company succeed and provide high-quality service and care to our 34 million members. I want to express a heartfelt thank you to all of our team members for their passion and commitment. I also look forward to speaking with and meeting many of you on this call over the next several months. This concludes our prepared remarks. Operator, please open the call for questions.

我們還有更多工作要做，但很高興看到進展和動力。我要感謝 Heath 和他的團隊對我的歡迎。我再次很高興來到這裡。我知道，正是我們所有的團隊成員，從現場的護理人員和司機，到我們所有的支援職能人員，才使我們公司取得了成功，並為我們的3400 萬會員提供了高品質的服務和護理。我想對我們所有團隊成員的熱情和奉獻表示衷心的感謝。我也期待在接下來的幾個月裡在這次電話會議上與你們中的許多人交談並會面。我們準備好的演講到此結束。接線員，請打開電話提問。

(Operator Instructions)

（操作員說明）

Our first question comes from Pito Chickering with Deutsche Bank.

我們的第一個問題來自德意志銀行的 Pito Chickering。

On NEMT, you talked about this in the script, but if you can just go back, looking at sort of 2Q to 3Q, revenues were a bit softer due to the revenue per trip and the utilization ticked up 8.5%, 8.7%. You have lower G&A and also lower service expense per trip. Just trying to understand how the utilization goes up sequentially, but service trip expense goes down. How sustainable are these G&A levels and service per trip? And how much of these savings are from G&A from automation or getting better costs and drivers.

在 NEMT 上，您在腳本中談到了這一點，但如果您可以回顧一下第二季度到第三季度，由於每次行程的收入和利用率上升了 8.5%、8.7%，收入有點疲軟。您的一般費用和行政費用較低，每次旅行的服務費用也較低。只是想了解利用率如何依序上升，但服務行程費用卻下降。這些一般費用水平和每次旅行服務的可持續性如何？其中有多少節省來自自動化或獲得更好的成本和驅動因素的一般管理費用。

Yes. Pito, so first, on the revenue side, as you -- from an NEMT perspective, the big discussions that we've been having for the last quarter and this continues as well, it all kind of relates to our pass-through revenue, shared risk contracts and those. So that's the main driver for the revenue being lighter is the nature of our shared risk contracts and not as much pass-through as prior quarters.

是的。 Pito，首先，在收入方面，從 NEMT 的角度來看，我們上個季度一直在進行的大型討論，而且這種情況仍在繼續，這一切都與我們的轉手收入有關，分擔風險合約等。因此，收入減少的主要驅動因素是我們分擔風險合約的性質，而不是像前幾季那樣多的轉嫁。

So again, contract is working, which is why we automatically go to what does that mean to the bottom line for us, really, which is the EBITDA and the margin improvement you're seeing. So you see strong EBITDA dollars and also margin recovery. A lot of that is the phenomenon that I talked about with revenue being a little bit lower.

再說一遍，合約正在發揮作用，這就是為什麼我們會自動轉向這對我們的底線意味著什麼，實際上，即 EBITDA 和您所看到的利潤率改善。因此，您會看到強勁的 EBITDA 美元和利潤率復甦。其中很多就是我談到的收入略低的現象。

But it's also the initiatives that are starting to take hold, whether that's in service expense for G&A. So we're getting leverage. We're seeing automation and it's starting. So it's strong margins improvement. We've got a way to go still, but we're on the right track, and we're performing as expected.

但這些措施也開始發揮作用，無論是在一般管理費用的服務費用中。所以我們正在獲得槓桿作用。我們看到自動化並且它正在開始。因此，利潤率大幅提高。我們還有很長的路要走，但我們走在正確的軌道上，我們的表現符合預期。

Okay. So just be clear, sort of these margins are the right ones to model in the near term for NEMT?

好的。所以請明確一點，這些利潤率是否適合短期內為 NEMT 建模？

Yes. The right way to think about it then continue to improve. This one was a little bit higher because of the revenue being a little bit lower, but we're making progress, and we expect the margins to continue to tick up each quarter as we get into 2024 and exit 2024.

是的。正確的思考方式然後繼續改進。由於收入略低，這一數字略高，但我們正在取得進展，我們預計隨著 2024 年進入和 2024 年退出，每個季度的利潤率將繼續上升。

Okay. And then on cash flow, you talked about payables and receivables for at these normal levels, and that's $20 million, $30 million swing annually. I guess, looking specifically at DSOs, they're down significantly to about 26.8 days, which is the lowest I actually have in my model. Is this the right run rate going forward? Or any thing is a onetime in the collection process. Do you have any cash flow guidance we should be thinking about for fourth quarter?

好的。然後在現金流方面，您談到了正常水平的應付帳款和應收帳款，每年有 2000 萬美元、3000 萬美元的波動。我想，特別關注 DSO，它們顯著下降至約 26.8 天，這是我的模型中實際的最低值。這是未來正確的運行速度嗎？或任何東西在收集過程中都是一次性的。您有我們應該考慮的第四季現金流量指引嗎？

Yes. So the DSO is sometimes hard to calculate because of the capitated nature of our contracts. So you're looking at it right. But the way I would talk about DSO is from our receivables within our around 6 to 9 months payment terms and our payables are around 9 to 12 month payment terms. And those are big contracts. So sometimes you see it being a little bit lumpy each quarter because of those payment terms.

是的。因此，由於我們合約的資本性質，DSO 有時很難計算。所以你看的是對的。但我談論 DSO 的方式是從我們大約 6 到 9 個月付款期限內的應收帳款和我們大約 9 到 12 個月付款期限內的應付帳款開始。這些都是大合約。因此，有時您會發現由於這些付款條件，每個季度的情況都有點不穩定。

But unlike in the past where we had to -- had a lot of payables because of COVID, now they're at a more matching level. So we expect that the swings will be as large as the swings that we have now are right in line with our expectations, and I would expect to see those each quarter these more normalized, but still have some swings each quarter, whether that's positive or negative from a net perspective on receivables and payables.

但與過去不同的是，由於新冠疫情，我們不得不承擔大量應付帳款，現在它們處於更匹配的水平。因此，我們預計波動將與我們現在的波動一樣大，與我們的預期一致，我預計每個季度都會看到這些波動更加正常化，但每個季度仍然會有一些波動，無論是積極的還是消極的從應收帳款和應付帳款淨值來看，為負。

And then to do with the cash flow, consistent with what we said last quarter, we gave a second half year guidance of $30 million to $50 million. And why we gave a second half year is because, one, we're generating cash, as you see. We expect to continue that fourth quarter and beyond. But in the fourth quarter, we also have our twice a year interest payment of about $30 million as well. So obviously, with being $45 million of cash generation now, we feel really good about hitting our target between $30 million and $50 million for the end of the year as well.

然後，關於現金流，與我們上季度所說的一致，我們給出了 3000 萬至 5000 萬美元的下半年指引。為什麼我們給予下半年的時間是因為，第一，我們正在產生現金，正如你所看到的。我們預計第四季及以後會繼續這種情況。但在第四季度，我們還支付了每年兩次約 3,000 萬美元的利息。顯然，現在現金產生量為 4,500 萬美元，我們對年底實現 3,000 萬至 5,000 萬美元的目標感到非常高興。

Our next question comes from Bob Labick with CJS Securities.

我們的下一個問題來自 CJS 證券的 Bob Labick。

Congratulations on a strong quarter, and welcome to Barb and looking forward to working with you.

恭喜季度業績強勁，歡迎來到 Barb，並期待與您合作。

Thank you, same, looking forward to working with you.

謝謝您，同樣，期待與您合作。

Great. So I wanted to start, you gave us a ton of good information. You talked about redetermination and you talked about some additional contract wins. Can you give us a sense of kind of member numbers over the next 6 to 12 months and how it plays out? And maybe more so just listening to your script too, discuss it a little bit in the context of full risk member number changes as we play out. Your wins come in, redetermination goes out, just to kind of give us a sense of your visibility and what we should expect over 6 to 12 months?

偉大的。所以我想開始，你給了我們很多有用的信息。您談到了重新確定，並談到了一些額外的合約贏得。您能否向我們介紹一下未來 6 到 12 個月的會員數量以及結果如何？也許更重要的是，也只是聽一下你的劇本，在我們播放時在全風險成員人數變化的背景下討論一下。您的勝利進來了，重新決定了，只是為了讓我們了解您的知名度以及我們在 6 到 12 個月內應該期待什麼？

Yes. So from a win perspective, again, we couldn't be more proud of the team that we have in place, whether that's in people that have been hired to do hunting, whether that's account management, that it's growing, whether that's marketing, whether that's products. Our entire new go-to-market strategy is taking hold and resonating. And we are winning, and we're getting lots of attention in the market. So we're giving these kind of guidance -- not guidance -- we're giving results every quarter around kind of TCV, or total contract value.

是的。因此，從勝利的角度來看，我們再次為我們現有的團隊感到無比自豪，無論是受僱進行狩獵的人員，無論是客戶管理，還是正在成長，無論是行銷，還是這就是產品。我們全新的市場進入策略正在紮根並引起共鳴。我們正在獲勝，並且在市場上得到了很多關注。因此，我們提供此類指導（而不是指導），我們每個季度都會圍繞 TCV（或總合約價值）提供結果。

Why we're doing that is, is be successful. And then in addition, it's more than 1 year. So we're going to -- you're going to start seeing the stacking of our revenue coming in. As we know, it's still a long sales cycle and a lot of these wins that we've recently had, a lot of it is going to come on in '24 or mid-'24. So we're still kind of recovering on how we're going to flow through the revenue, but we feel really good. So the right way to think about the membership is kind of the contracts where you're winning are not any different from a pricing perspective or volume perspective of what we had in the past.

我們這樣做的原因是為了取得成功。再加上，已經1年多了。所以我們將——你將開始看到我們的收入不斷增加。正如我們所知，這仍然是一個很長的銷售週期，我們最近取得了很多這樣的勝利，很多將於24 年或24 年中期推出。因此，我們仍在恢復收入的流動方式，但我們感覺非常好。因此，考慮會員資格的正確方法是，您贏得的合約與我們過去的定價角度或數量角度沒有任何不同。

So you just take the revenue and you divide it by the numbers of members. So we haven't guided to the membership increase, but we're winning more than what's coming out the door, and we feel really good about the revenue side of things. And then that's a really important driver for us to continue to get scale on our expenses and in our G&A, and you're seeing that now, and that will continue into 2024. But the other item within redetermination that needs to happen and is happening is to modernize and automate our platform within NEMT.

所以你只需將收入除以會員數即可。因此，我們沒有指導會員數量的增加，但我們贏得的勝利比即將出現的要多，而且我們對收入方面的感覺非常好。這對我們繼續擴大開支和一般管理費用來說是一個非常重要的驅動力，你現在就看到了這一點，並且這種情況將持續到2024 年。但重新決定中的另一項需要發生並且正在發生是對 NEMT 內的平台進行現代化和自動化。

And that's happening, and we started to give some metrics and guidance around that. And that will -- that coupled with revenue. We feel really good about managing our redetermination. We reconfirmed what redetermination is. We feel really good about it. We were right on in predicting what is happening in 2023. This gives us more conviction on what's happening in 2024 as well. So anything else Barb, would you add?

這種情況正在發生，我們開始為此提供一些指標和指引。這將與收入結合。我們對管理我們的重新決定感覺非常好。我們再次確認了什麼是重新決定。我們對此感覺非常好。我們對 2023 年發生的事情的預測是正確的。這也讓我們對 2024 年發生的事情更有信心。那麼倒鉤還有什麼要補充的嗎？

Yes. The only thing we did mention that we do think, overall, the impact on our membership will be in that 10% to 15% range in terms of membership from redetermination.

是的。我們唯一提到的是，我們確實認為，總體而言，就重新確定的會員資格而言，對我們會員資格的影響將在 10% 到 15% 的範圍內。

Yes. Got it. Okay. Great. And then just you kind of alluded to this a little bit, but maybe discussing the actions that you're taking in order to drive the $30 million to $50 million in savings, I think you bucketed maybe multimodal omnichannel membership and digital customer integration on the right slide. Can you give us a sense of kind of order of magnitude, which are the like, not exact dollars, but the most money is coming from multimodal or which is the highest and which is lowest in terms of those savings and how hard they are to get them.

是的。知道了。好的。偉大的。然後您稍微提到了這一點，但也許是在討論您為節省 3000 萬至 5000 萬美元而採取的行動，我認為您可能在多模式全渠道會員資格和數字客戶集成方面投入了精力右幻燈片。您能否給我們一個數量級的感覺，這類似於，不是確切的美元，但最多的錢來自多式聯運，或者就這些儲蓄而言，哪一個是最高的，哪一個是最低的，以及它們有多難抓住他們。

Yes. So omnichannel member engagement, so that's the -- how we engage with our members, whether that's on the phone or via technology, that's probably 50-plus percent of the cost savings. The multimodal is probably another 20%, 25% and then the delta is in that kind of digital customer integration side. So all those, specifically the first 2, the omnichannel and the multimodal, are initiatives that are starting some further along than others, but we have a really strong plan.

是的。全通路會員參與，這就是我們與會員互動的方式，無論是透過電話還是透過技術，這可能會節省 50% 以上的成本。多式聯運可能是另外 20%、25%，然後增量是在那種數位客戶整合方面。因此，所有這些，特別是前兩個，即全通路和多式聯運，都是比其他舉措走得更遠的舉措，但我們有一個非常強大的計劃。

We're making a lot of progress, specifically the automation of our -- in the omnichannel side. We have our app up and running. It's one of the top apps within Apple Store and within the other -- Google, yes. So we're really doing well, text is improving. We had a message that went out a couple of weeks ago about us moving to Genesys, that coupled with bots.

我們正在取得很大進展，特別是在全通路方面的自動化。我們的應用程式已啟動並正在運行。它是 Apple Store 和 Google Store 中的頂級應用程式之一，是的。所以我們確實做得很好，文字正在改進。幾週前我們收到一則訊息，說我們將遷移到 Genesys，並配備了機器人。

So we're really happy about our omnichannel approach as well as multimodal. Multimodal for us has been a long strategy for us, and it's a strategic shift, ensuring that we are moving to partners within the transportation providers. So we're really narrowing the network and giving volume.

因此，我們對全通路和多模式的方式感到非常滿意。對我們來說，多式聯運是一項長期策略，也是策略轉變，確保我們轉向運輸供應商內的合作夥伴。因此，我們確實正在縮小網路範圍並擴大規模。

Uber and Lyft are partners of ours, and we're integrated more with them. So you just go across the board. There's numerous initiatives under each of these. So yes, lots of execution hard, it's just worked to us. And we feel really good about getting that $30 million to $50 million within next year. And even more so, if you look at the cost base, which is made up of manual people right now, we feel really good about the $60 million to $80 million in total. And the last one on digital. And this is -- this does get cost out, but it also is really high on customer satisfaction.

Uber 和 Lyft 是我們的合作夥伴，我們與他們的整合程度更高。所以你只要走遍整個董事會。每項措施下都有許多措施。所以，是的，大量的執行工作很困難，這對我們來說很有效。我們對於明年內獲得 3000 萬至 5000 萬美元感到非常高興。更重要的是，如果你看看現在由手工人員組成的成本基礎，我們對總共 6000 萬到 8000 萬美元感到非常滿意。最後一篇是關於數字的。這確實節省了成本，但客戶滿意度也很高。

And that's where we are integrating and providing data to our customers so they can properly manage the member experience and even start changing outcome. So all 3 of these are getting cost out. All 3 of these are having higher member satisfaction and higher customer satisfaction and couldn't be more excited about the team we got in place. And we will keep updating you every quarter on these metrics, these per trip metrics that really show that we're making progress.

這就是我們整合並向客戶提供資料的地方，以便他們能夠正確管理會員體驗，甚至開始改變結果。因此，所有這三個因素都將節省成本。所有這三個方面都具有更高的會員滿意度和更高的客戶滿意度，我們對我們組建的團隊感到非常興奮。我們將每季持續向您更新這些指標，這些指標確實顯示我們正在取得進展。

Our next question comes from Brian Tanquilut with Jefferies.

我們的下一個問題來自 Jefferies 的 Brian Tanquilut。

You've got Taji on for Brian. Barb, we look forward to working with you. So to start off, maybe, Health, I'll send the first question to you. We know the company has gone through a lot of change since you took over. So maybe can you talk about your strategy for the next few years? And what are the risks and other opportunities you see over the next 1 to 2 years. And also, I guess, how the value-based strategy fits within that?

你已經為布萊恩安排了塔吉。巴布，我們期待與您合作。首先，也許，健康，我將向您發送第一個問題。我們知道自從你接任以來公司經歷了許多變化。那麼您能談談您未來幾年的策略嗎？以及您在未來 1 到 2 年內看到的風險和其他機會是什麼。而且，我想，基於價值的策略如何適應這一點？

Yes. Yes. No, I appreciate that. That's probably the teammates that are listening or listening to the recording are going to be yes, there has been a lot of change. So -- and all thanks to them. So you go across the board, if you think about what's happened from a people perspective. Barb is sitting here and everybody else that's joined the team. And even below that, there's been a shift to new competencies within the people side. And there's a couple that I really want to point out.

是的。是的。不，我很欣賞這一點。正在聽或正在聽錄音的隊友可能會說是的，發生了很多變化。所以——這一切都要感謝他們。因此，如果你從人們的角度思考所發生的事情，你就會全面考慮。巴布和其他加入團隊的人都坐在這裡。甚至在此之下，人員方面也發生了向新能力的轉變。我真的想指出一些。

We really got product capabilities, people that understand the life cycle and true future of where these services are going. We've added a lot of people there, development, technology people. And then, of course, innovation and then salespeople. So there's been a reallocation and rehiring of people that complement what we do every day in the field. So a lot of change and a lot of opportunity they're processed across the board. Heavy discipline, daily, weekly, monthly from a process perspective and metric perspective is a new culture for us.

我們確實擁有產品能力，人們了解這些服務的生命週期和真正的未來。我們在那裡增加了許多人，包括開發人員、技術人員。當然，還有創新和銷售人員。因此，我們對人員進行了重新分配和重新招聘，以補充我們每天在該領域所做的工作。因此，他們全面處理了很多變化和很多機會。從流程角度和指標角度來看，每天、每週、每月的嚴格紀律對我們來說是一種新文化。

And I couldn't be more excited there. And then on the tech side, there's been a lot, whether that's infrastructure that's going to help us scale all the way from company-wide ERP to platform -- standard platforms across personal care, that's happened, and then even below that. How are we adding value with getting analytics, using AI to help us really change outcomes. So it's been across the board. Now that we have those components in place. There's really just bringing that together and scaling that even more. And that's a big part of next year, is to finalize this new approach and ensure that we have the best service for each of our point solutions at the lowest cost.

我在那裡感到非常興奮。然後在技術方面，有很多，無論是基礎設施，將幫助我們從全公司範圍的 ERP 一直擴展到平台——跨個人護理的標準平台，這種情況已經發生，甚至低於這個水平。我們如何透過分析來增加價值，利用人工智慧來幫助我們真正改變結果。所以這是全面的。現在我們已經有了這些組件。實際上只是將它們整合在一起並進一步擴展。明年的一個重要部分是最終確定這項新方法，並確保我們以最低的成本為每個單點解決方案提供最好的服務。

If we just finish that, which is our plan, and a lot of the questions that came before are around that. And then when we start bringing these services together and then also with the services that we have right now, and this gets to the kind of the broader strategy. And you hear a lot of people talk about value-based care, and this is where I want to spend a little bit of time. Value-based care to us, our customers, whether that's a payer or whether that's somebody that the payer has offloaded risk to, some other risk-bearing entity, Those are the people that take risk.

如果我們只是完成它，這就是我們的計劃，之前出現的許多問題都圍繞著它。然後，當我們開始將這些服務以及我們現在擁有的服務整合在一起時，這就形成了更廣泛的策略。你聽到很多人談論基於價值的護理，這就是我想花一點時間的地方。對我們、我們的客戶提供基於價值的關懷，無論是付款人還是付款人將風險轉移給的人或其他承擔風險的實體，這些都是承擔風險的人。

They are our customers, but here's what they value with us. Because we do these services, whether that's a device in the home, whether we have a person in the home doing personal care, whether that is somebody that's driving or whether that's somebody that's connecting via our contact centers, we have access that they don't have. So -- but now because of our competencies around process and specifically around tech enablement, we can start tracking a member longitudinally and you put some clinical support behind that.

他們是我們的客戶，但這就是他們對我們的重視。因為我們提供這些服務，無論是家裡的設備、家裡有人做個人護理、開車的人還是透過我們的聯絡中心連接的人，我們都擁有他們所沒有的訪問權限。沒有。所以，但現在由於我們在流程方面，特別是在技術支援方面的能力，我們可以開始縱向追蹤會員，並且您可以在背後提供一些臨床支援。

We can actually start giving data and helping our customers change outcomes have higher satisfaction. As you know, CMS or states high expectations on ensuring that happens. So what does that do for us? It is just a trampoline or a further acceleration on selling our point solutions and being sticky. And then on top of that, creating additional revenue sources we're getting paid and sharing in those risk-bearing entities.

我們實際上可以開始提供數據並幫助我們的客戶改變結果以獲得更高的滿意度。如您所知，CMS 或對確保實現這一目標抱有很高的期望。那麼這對我們有什麼作用呢？這只是一個蹦床或進一步加速銷售我們的單點解決方案並保持粘性。最重要的是，創造額外的收入來源，我們可以在這些承擔風險的實體中獲得報酬和分擔。

So our strategy is meaning where health care is going. Growth in people that are getting older, people that are sicker and of course, the challenge is on cost. So just marries well with where our company is, where the market is going, and so that's where we're excited about continuing to do that each year and year.

因此，我們的策略意味著醫療保健的發展方向。人口老化、病情加重，當然，挑戰在於成本。因此，只要與我們公司的現狀、市場的發展方向很好地結合起來，這就是我們每年都會興奮地繼續這樣做的地方。

Great. Really appreciate that. And then just one follow-up. I know that we've kind of talked about the margins pretty extensively. So shifting to cash generation, obviously this quarter posted solid results. So as we look post-2023, can you just talk about what gives you confidence in your ability to sustainably deliver free cash -- positive free cash flow?

偉大的。真的很感激。然後只有一個後續行動。我知道我們已經相當廣泛地討論過利潤問題。因此，轉向現金生成，顯然本季取得了穩健的業績。因此，當我們展望 2023 年後，您能否談談是什麼讓您對自己可持續交付自由現金（正自由現金流）的能力充滿信心？

Yes. So if you look at our individual businesses, and I mean know these last couple of quarters, specifically in the mobility business, we needed to get past some of the COVID balance between payables and receivables. And we're through that. And you see it. It's showing up in Q3, and we expect that to continue. In the personal care and monitoring side, very strong margins right now. Those margins -- though on the personal care side, we're on the low end, I expect those to continue to get stronger as we finish our centralization, standardization, automation.

是的。因此，如果你看看我們的個別業務，我的意思是知道最近幾個季度，特別是在行動業務方面，我們需要克服應付帳款和應收帳款之間的一些新冠餘額。我們已經渡過了難關。你看到了。它會在第三季出現，我們預計這種情況會持續下去。在個人護理和監控方面，目前的利潤率非常高。這些利潤——儘管在個人護理方面，我們處於低端，但我預計隨著我們完成集中化、標準化和自動化，這些利潤將繼續變得更強。

So that business, very strong, rigid margin. It's all about growth there. And then that's where I'm going with the strategy that I talked about earlier, married with our new go-to-market strategy, those margins strong, how do we grow there. So really the item that all of you are looking at and that we should continue to pay attention going forward, it's the mobility or an NEMT margins. So the good thing for us because of all the work we've done over the last 18 months, 2 years, we have these contracts where we have a win-win with our customers.

因此，業務非常強勁，毛利率剛性。這一切都與那裡的成長有關。這就是我之前談到的策略，與我們新的進入市場策略相結合，這些利潤率很高，我們如何在那裡成長。所以，實際上你們所有人都在關注並且我們應該繼續關注未來的項目，那就是流動性或 NEMT 利潤。這對我們來說是一件好事，因為我們在過去 18 個月、2 年裡所做的所有工作，我們簽訂了這些合同，與客戶實現了雙贏。

So this kind of downside risk on margins going what they were prior COVID are really low. We've kind of protected that side. Okay. Now how do we get back? How do we get back to stronger margins. And that's with these efforts that we're doing now, and they're starting to take hold. And we will start seeing now and through 2024 that we will be moving up and gaining margin improvement as we exit 2024.

因此，與新冠疫情之前相比，這種利潤率下降的風險非常低。我們已經保護了那一邊。好的。現在我們要怎麼回來呢？我們如何恢復更高的利潤率。這就是我們現在所做的這些努力，它們已經開始發揮作用。從現在到 2024 年，我們將開始看到，當我們退出 2024 年時，我們將取得進展並獲得利潤率改善。

We'll probably be on the low end of our margin guidance, which was 9% to 12% that we've given. But again, if you look at -- and this is also the questions we had before and you go to that slide that has optimizing our cost structure, that's kind of assuming middle of the road cost savings for 2024. We continue to execute on that, which we should that allow us to really have rigid and strong markets in NEMT.

我們可能會處於利潤率指導的低端，即我們給出的 9% 至 12%。但同樣，如果你看一下 - 這也是我們之前遇到的問題，然後你轉到優化我們成本結構的幻燈片，這有點假設 2024 年將實現中間成本節約。我們將繼續執行該計劃，這應該讓我們能夠在NEMT 中真正擁有嚴格而強大的市場。

And if you put that all together, we're going to continue to get scale as we grow from a revenue line perspective. And so again, I feel really good about what we've done. It's working. And margins will be strong. So then we get to -- as we exit kind of 2024, we'll get back to that strong kind of $100 million, $100-plus million run rate cash flow just on our core businesses. So -- and we have work to do. But generating cash now, we'll generate cash in 2024, and it will continue to grow as we exit 2024.

如果你把所有這些放在一起，從收入線的角度來看，隨著我們的成長，我們將繼續擴大規模。再說一遍，我對我們所做的事情感到非常滿意。它正在發揮作用。而且利潤率將會很高。因此，當我們退出 2024 年時，我們的核心業務將恢復到 1 億美元、1 億多美元的強勁運作現金流。所以——我們還有工作要做。但現在產生現金，我們將在 2024 年產生現金，隨著我們退出 2024 年，現金將繼續增長。

Our next question comes from Scott Fidel with Stephens.

我們的下一個問題來自斯科特·菲德爾和史蒂芬斯。

I wanted to start just around the service expense per trip metric and some of the sort of savings that you're now providing to us in the deck. In the third quarter, that metric was at just around $48.50, which was down around 4% sequentially. Interested if you can share with us if you do have a sort of point projection on how we should be thinking about that metric in the fourth quarter. And then as we think about sort of ultimately landing back into that 9% to 12% long-term target margin for NEMT where you think you need to take that $48.50 to sort of, let's say, sort of get back within that range?

我想從每次行程的服務費用指標以及您現在在甲板上為我們提供的一些節省開始。第三季度，該指標僅為 48.50 美元左右，比上一季下降了約 4%。如果您確實對我們應該如何在第四季度考慮該指標有某種點預測，那麼您可以與我們分享。然後，當我們考慮最終回到 NEMT 9% 到 12% 的長期目標利潤率時，您認為您需要 48.50 美元才能回到這個範圍內？

Yes. Well, the per trip metric is the right metric because it normalizes -- it will show the execution of our initiatives. So the per trip, whether that's purchased services, which is what you were talking about there or whether that is kind of the payroll and other line per trip. And we -- in the Q, you can see that in our notes where we break out purchased services and payroll and other and then also in our supplemental information, you see that. So it's the right metrics to track.

是的。嗯，每次行程指標都是正確的指標，因為它標準化了——它將顯示我們計劃的執行情況。因此，每次旅行，無論是購買的服務，這就是您在那裡談論的內容，還是每次旅行的工資單和其他行。我們 - 在 Q 中，您可以在我們的註釋中看到，我們細分了購買的服務和工資等，然後在我們的補充資料中，您也看到了這一點。所以這是要追蹤的正確指標。

Starting with the payroll and other metric and why I'm starting with that, that's where the majority of the cost is going to come out with our omnichannel, multimodal and digital engagement. That's where we're manual and doing normal automation is going to get that up. So tracking that metric and seeing the progress is probably the best way to look at that and ensure that we start getting our margins up. And as I said and we said in our script, if you look at where we are on a run rate normalized perspective, that's about $2 million to $3 million in this quarter kind of per trip improvement.

從薪資和其他指標開始，以及為什麼我要從這個指標開始，這就是我們的全通路、多模式和數位參與帶來的大部分成本。這就是我們手動操作的地方，進行正常的自動化就能解決這個問題。因此，追蹤該指標並查看進展可能是了解這一點並確保我們開始提高利潤的最佳方法。正如我和我們在腳本中所說，如果你從運行率標準化的角度來看我們的情況，你會發現本季每次行程的改進約為 200 萬至 300 萬美元。

So really good progress and still early on. And the purchased services trip, that's also a good metric to track, but important to note, and this is why we always talk about our contracts being restructured. A lot of our shared savings is ensuring that we pass that through. So the cost increase and that purchased services per trip has been increasing over the last kind of 24 months and over the last 12 months. It's stabilized and normalized. So I don't expect that to increase, one, because of where the labor market is and our model that we put in place on multimodal has really kind of stabilized that, and I expect that to continue to tick down.

所以進展非常好，而且還處於早期階段。購買的服務行程，這也是一個很好的追蹤指標，但值得注意的是，這就是為什麼我們總是談論我們的合約正在重組。我們共同節省的大量資金用於確保我們渡過難關。因此，在過去 24 個月和過去 12 個月中，每次旅行的成本增加和購買的服務一直在增加。它已經穩定並正常化。因此，我預計這種情況不會增加，第一，因為勞動力市場的狀況以及我們在多式聯運上實施的模型確實穩定了這一點，而且我預計這種情況會繼續下降。

Not to the extent of the payroll and other, but it will continue to tick down. So expect a modest decrease kind of quarter-over-quarter. So I've been really good about those are the metrics to track. All of them -- I mean, sorry, both of them will continue to decline. The payroll and other will be more steep because that's where most of the cost is going to be coming out.

工資和其他方面的情況不會如此，但它會繼續下降。因此，預計季度環比會出現小幅下降。所以我非常擅長追蹤這些指標。所有這些——我的意思是，抱歉，它們都將繼續下降。工資和其他費用將更加高昂，因為這是大部分成本的來源。

Okay. Perfect. And then just a follow-up question. So you've now sort of detailed a pretty expensive cataloging of the cost savings that you're sort of driving towards to optimize the cost structure in NEMT. Interested if you have sort of a similar type of framing that you're planning to give us for the Home segment. I know you've talked about a number of these initiatives underway as sort of One Modivcare and the centralization, the automation going on in the home.

好的。完美的。然後是一個後續問題。現在，您已經詳細列出了相當昂貴的成本節約目錄，您正在努力優化 NEMT 中的成本結構。如果您計劃為家庭部分提供類似類型的框架，我們很感興趣。我知道您已經談到了許多正在進行的舉措，例如 One Modivcare 以及家庭中正在進行的集中化和自動化。

Interested if that is sort of going to be, I guess, quantified for us in any type of cost savings? Or is it more that you're pretty close to your margins. At this point, you're going to have savings, you're going to have investments, but there's not like this sort of explicit on cataloging of the cost savings to get to target margins in the same way that you need for an NEMT.

我想，是否有興趣以任何類型的成本節約形式來量化我們？或者更重要的是你已經非常接近利潤了。此時，您將有儲蓄，您將有投資，但沒有像 NEMT 所需的那樣對成本節省進行明確分類以達到目標利潤。

Yes. Yes, not cataloging in the same manner, mainly because it's not implicated from a standpoint of all the automation that needs to happen. However, the centralization and standardization primarily within personal care, but across all of home is a big change from having these numerous offices across the Northeast that kind of did everything. So it's a big change, but relatively simple from a tracking perspective.

是的。是的，不是以同樣的方式編目，主要是因為從需要發生的所有自動化的角度來看，它並沒有涉及。然而，集中化和標準化主要在個人護理領域，但在整個家庭中，與東北地區眾多的辦公室包辦一切相比，這是一個巨大的變化。所以這是一個很大的變化，但從追蹤的角度來看相對簡單。

And a big part of this year and was really putting that start of the framework in place, the standard platforms, the pointing of the organization, some of the centralization. So we're kind of halfway through that centralization standardization, which is why we're still on the low end of our margin guidance there.

今年的一個重要部分是真正將框架的啟動、標準平台、組織的指向和一些集中化落實到位。因此，我們的集中化標準化工作已經進行了一半，這就是為什麼我們仍處於利潤指引的低端。

We'll start to see that tick up as we exit next year. And then we'll likely get to the high end of that 10% to 12%, but I wouldn't expect that to get any more. Why? Because what we want to do with these additional savings and leverage that we're going to get is to reinvest back into that caregiver. That is where the value comes so we can outgrow the market. Right now, we're kind of growing in line with the market from a sales -- kind of same-store sales perspective.

當我們明年退出時，我們將開始看到這種情況增加。然後我們可能會達到 10% 到 12% 的高端，但我預計不會再增加了。為什麼？因為我們想要利用這些額外的節省和槓桿來重新投資於該護理人員。這就是價值的來源，這樣我們就能超越市場。目前，從銷售（同店銷售的角度）來看，我們的成長與市場保持一致。

I expect when we finish that and a lot of the investments that we're going to make in the caregiver that is driven by and who's been here for 6 months, Enrique, our new Chief People Officer, who has a lot of background in this, we'll start seeing that growth. So margins, on the low end, centralization, standardization will get us to the high end exiting next year and then growth on that.

我預計當我們完成這項工作時，我們將對護理人員進行大量投資，這些投資是由恩里克（Enrique）推動的，他已經在這裡工作了6 個月，我們的新任首席人事官恩里克（Enrique）在這方面有很多背景。 ，我們將開始看到這種增長。因此，低端的利潤率、集中化、標準化將使我們在明年達到高端，然後在此基礎上實現成長。

Monitoring for us, strong margins, right? It's all about a growth perspective there. And for us, and I really look forward to talking about this in 2024 and beyond. There's a tip of the spear for us getting paid differently, specifically sharing in that value-based care. That's where -- we'll have strong growth, strong margins in that business, but really more exciting is we'll start seeing different payments on different revenue models in 2024 and beyond.

為我們監控，利潤豐厚，對吧？這一切都與成長前景有關。對我們來說，我真的很期待在 2024 年及以後談論這個問題。我們獲得不同的報酬是有好處的，特別是分享基於價值的照護。這就是——我們將在該業務中實現強勁增長和強勁利潤，但真正更令人興奮的是，我們將在 2024 年及以後開始看到不同收入模式的不同支付方式。

Our next question comes from Brooks O'Neil with Lake Street Capital.

我們的下一個問題來自 Lake Street Capital 的布魯克斯·奧尼爾 (Brooks O'Neil)。

I have a couple of quick questions. I guess, one of my recollection is that labor had historically been a bit of a constraint on your business, particularly in Personal Care. I see the unemployment rate ticked up a little bit this morning, but can you just give us an update on what you're seeing across your businesses from a labor availability, labor rate, et cetera, perspective.

我有幾個簡單的問題。我想，我的記憶之一是，勞動力歷來對您的業務有所限制，尤其是在個人護理領域。我看到今天早上失業率略有上升，但您能否從勞動力供應、勞動力價格等角度向我們介紹您在企業中看到的最新情況。

Yes. So consistent with the last couple of quarters, and across the board, just in any industry and even in kind of health care and specifically, we're in that kind of hourly rate perspective, it's normalized. So it's -- but it's still a struggle, right? That, for us, is the #1 challenge and opportunity for us is to hire caregivers, right? So I would say not a headwind from the market anymore that it's accelerating, but it's our #1 thing.

是的。與過去幾個季度的情況一致，無論是在任何行業，甚至在醫療保健領域，特別是我們處於這種每小時費率的角度，它都已標準化。所以，但這仍然是一場鬥爭，對吧？對我們來說，第一大挑戰和機會就是僱用護理人員，對吧？所以我想說，它的加速不再是市場的逆風，但這是我們的第一件事。

So -- and this gets back to how do we overcome that because we're doing fine, and we're growing in line with the market. It really is finishing -- and I know I'm repeating myself, but when we take away all the activity that's unnecessary, whether that's centralizing revenue cycle management, whether that's centralizing intake, you can just go across the board, then you free up the local offices to just hire and retain and service that member or customer.

所以——這又回到了我們如何克服這個問題，因為我們做得很好，而且我們的成長與市場保持一致。它確實正在結束——我知道我在重複自己，但是當我們取消所有不必要的活動時，無論是集中收入周期管理，還是集中攝入量，你都可以全面實施，然後你就可以釋放出來當地辦事處僅僱用、保留和服務該會員或客戶。

And that's where we're really going to see us, be able to recruit faster and retain better. So it's solid. Growth is solid. Margin is rigid. When we finish this off, we'll start growing above that in 2024 and beyond. One more thing on that, for us and this gets back to the value of personal care and how important it is because of that access, customers -- you go across the board, payers, risk-bearing entities, providers are really interested in personal care because we have access to that member.

這就是我們真正要看到的地方，能夠更快地招募並更好地留住人才。所以它很堅固。增長穩健。保證金是剛性的。當我們完成這個任務後，我們將在 2024 年及以後開始實現更高的成長。還有一件事，對我們來說，這又回到了個人護理的價值，以及由於這種訪問而變得多麼重要，客戶——你是全面的、付款人、風險承擔實體、提供者真正對個人護理感興趣。關心，因為我們可以接觸到該成員。

So people that are doing what we are doing, professionalizing, centralizing, automating to ensure that we can get more out of that caregiver, therefore, pay more to that caregiver. It's just going to be on a flywheel. And I think the industry as a whole and us as a whole are at the beginning stages of doing that. So I'm really bullish on that business and specifically combining it with our monitoring business.

因此，那些正在做我們正在做的事情的人，專業化、集中化、自動化，以確保我們能夠從護理人員那裡得到更多，因此，向護理人員支付更多費用。它只是在飛輪上。我認為整個產業和我們作為一個整體正處於這樣做的開始階段。因此，我非常看好該業務，特別是將其與我們的監控業務結合。

Yes. And as you said, with the trip towards value-based care, the opportunity for you there is immense. So it's a great hit. Let me answer one more. It strikes me that very strong cash flow this quarter. That's great, maybe a little bit less in the fourth quarter. But I think probably a lot of investors focus on the balance sheet and the debt repayment strikes me as it always has, that Matrix is an important hidden asset or it's actually right out there in plain sight, but most people don't pay attention to it. Could you give us any feel for, a, what you think that business might be worth to you in terms of cash to you on a sale or a restructuring, whatever. And then secondly, what do you think the timing might be?

是的。正如您所說，隨著基於價值的護理之旅，您的機會是巨大的。所以這是一個很大的打擊。我再回答一個吧。讓我印象深刻的是，本季的現金流非常強勁。這很好，第四季可能會少一些。但我認為可能很多投資者都關注資產負債表，而債務償還一如既往地讓我震驚，Matrix 是一項重要的隱藏資產，或者它實際上就在眼前，但大多數人並不關注它。您能否給我們任何感覺，a，您認為該業務對您的價值（以出售或重組等方式為您帶來的現金計算）。其次，您認為時機可能是什麼？

Yes. Well, first, Brooks, you hit on something really kind of around all the levers we have in our capital structure. One, we're generating cash. We're through the COVID payments of you go to each business line, generating cash, low CapEx, which is why a big part of why we're doing that. We have a strong line that gives us the flexibility for working capital fluctuations. We have -- our bonds are fixed rate right now. So we have lots of good attributes within our capital structure platform. And then you go to the other item, which is what you're saying is around our investment in Matrix.

是的。好吧，首先，布魯克斯，你在我們資本結構中擁有的所有槓桿上發現了一些真正的東西。第一，我們正在創造現金。我們透過向每個業務線支付新冠肺炎付款，產生現金，資本支出較低，這就是我們這樣做的一個重要原因。我們擁有強大的產品線，使我們能夠靈活應對營運資金波動。我們的債券現在是固定利率的。因此，我們的資本結構平台具有許多良好的屬性。然後你轉到另一個項目，這就是你所說的關於我們對 Matrix 的投資。

So first off, what the Matrix team has done over these last 12 months is tremendous. And I think part of the reason why some of the shareholders or maybe some of the analysts are maybe not paying attention to Matrix. Prior to this new management team and its restructuring, we had a COVID bump, but the kind of core risk assessment or adjustment business wasn't performing. That's not the case anymore. It's performing very well. We're the second largest. And what the team has done and what is going to happen each month and each quarter on that is tremendous.

首先，Matrix 團隊在過去 12 個月所做的工作是巨大的。我認為部分股東或部分分析師可能不關注 Matrix 的部分原因。在新的管理團隊及其重組之前，我們遇到了新冠疫情的衝擊，但核心風險評估或調整業務並沒有發揮作用。現在情況已不再是這樣了。它的表現非常好。我們是第二大。團隊已經完成的工作以及每個月和每個季度將要發生的事情都是巨大的。

So I feel really good about that business, and thanks to the management team for what they're doing and the partnership with our partner there. So the most important thing is they continue to perform, and we don't distract them with anything other than that. So then what's it get to around kind of monetization and value on that. So we gave a really broad range on EBITDA, and why we gave that, we want to make sure that the business can focus is not distracted by when I say publicly, we said $50 million to $100 million.

因此，我對該業務感覺非常好，並感謝管理團隊所做的工作以及與我們合作夥伴的合作。所以最重要的是他們繼續表現，我們不會用其他事情分散他們的注意力。那麼它的貨幣化和價值又有何意義呢？因此，我們對 EBITDA 給出了非常廣泛的範圍，為什麼我們給出這個範圍，我們希望確保業務重點不會因為我公開說的 5000 萬至 1 億美元而分散注意力。

And why we gave this a broad range because if we keep performing, it's going to continue to kick up -- move up closer to that higher end. But it helps you then box in, how would you value that? So -- and we've done some -- there's been a lot of work on that.

為什麼我們給出了一個廣泛的範圍，因為如果我們繼續表現，它會繼續上升——接近更高的目標。但它可以幫助你進入，你會如何評價它？所以——我們已經做了一些——這方面做了很多工作。

So you just take a multiple off of that and less the debt, and you can see that it's very significant cash flow to us that would help us even further solidify our balance sheet. So whether that's paid on the loan, whether that's grow, whatever it may be. So the timing is going to be when the timing is going to be because they're performing so well and because it's an extremely valuable asset, the right way to think about it is 2024. So that's a broad range, but that's the right way to think about it.

因此，您只需減去該金額的倍數並減去債務，您就可以看到這對我們來說是非常重要的現金流，這將幫助我們進一步鞏固我們的資產負債表。因此，無論貸款是否已償還，是否增長，無論是什麼。因此，時機將是，因為他們表現如此出色，並且因為這是一項極其有價值的資產，所以正確的思考方式是 2024 年。所以這是一個廣泛的範圍，但這是正確的方式想想吧。

Our next question comes from Mike Petusky with Barrington Research.

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

Let me just follow up real quick on Brooks' last question around Matrix. I know you said, hey, look, when you're thinking about ultimate monetization valuation of this one, think about $50 million to $100 million of EBITDA. Can you just talk about where they're likely to come in this year in '23? Do you have a ballpark even if it's a range of where they're likely to come in, in terms of EBITDA?

讓我快速跟進布魯克斯關於矩陣的最後一個問題。我知道你說過，嘿，看，當你考慮這個的最終貨幣化估值時，想想 5000 萬到 1 億美元的 EBITDA。你能談談他們今年 23 年可能會出現的情況嗎？即使是他們可能進入的 EBITDA 範圍，您是否有一個大致的範圍？

Yes. So right now, we're in that range, right? So that's why we gave the broad range, and I don't mean to be -- if we want to make sure that we do the right thing for the business and if there is a sale process, I don't want to kind of front-run anything. So it's right in that range. So I would -- like we do want to just about everything, usually, people take the middle point of that range.

是的。那麼現在我們就在這個範圍內，對嗎？因此，這就是為什麼我們提供了廣泛的範圍，而且我並不是故意的 - 如果我們想確保我們為業務做正確的事情並且如果有銷售流程，我不想搶先運行任何東西。所以它就在這個範圍內。所以我會——就像我們確實想要一切一樣，通常，人們會採取該範圍的中間點。

Okay. Fair enough. So Heath, you guys have a great slide in the deck sort of illustrating the progress on contract mix. And in 2020, it was 60% full risk and now it's 30% full risk, what might that look like if you sort of run it out another 3 years? I mean, could 30% turn into 15% or 20%? What would you -- I won't hold you to this, but I mean, what's your best guess as to -- is there additional progress that can be made on that?

好的。很公平。希斯，你們在甲板上有一張很棒的幻燈片，說明了合約組合的進展。 2020 年，全額風險為 60%，現在為 30%，如果再用 3 年，會是什麼樣子？我的意思是，30% 可以變成 15% 或 20% 嗎？你會怎麼做——我不會讓你堅持這一點，但我的意思是，你最好的猜測是什麼——在這方面是否可以取得額外的進展？

Yes. So in that slide, what we did, and I think it was a great slide as well. That's for our entire membership and just a little bit more just to square back to what we've said historically. It was -- if we took out the MA business, the Medicaid-only business would be in the kind of low 20s range from a perspective. And really -- so I think what has happened over these last -- you can see the trend, right? I don't see the mix changing that much going forward. Well, here, let me back up. I see the growth happening, primarily on the MCO side, just in general, that's in line with the marketplace in general.

是的。在那張幻燈片中，我們做了什麼，我認為這也是一張很棒的幻燈片。這是針對我們全體會員的，只是為了回歸我們歷史上所說的內容。如果我們去掉 MA 業務，從某個角度來看，僅限醫療補助的業務將處於 20 左右的範圍內。真的 - 所以我認為最近發生的事情 - 你可以看到趨勢，對嗎？我認為未來的組合不會有太大變化。好吧，在這裡，讓我備份。我看到成長正在發生，主要是在行動管制令方面，總的來說，這與整體市場是一致的。

That being said, we still have the ability to win other -- it's primarily state business that is at full risk primarily. And we still have the opportunity to win more. So if we win more there, the percentage it stays the same. I think to your question, and then I'll continue on that, that mix is probably the same. And that's actually a good thing. So where we were in the past, some of it we got out of whack because we didn't have the right win-win relationships or even the right contracts on the state side.

話雖這麼說，我們仍然有能力贏得其他業務——主要是面臨完全風險的國有企業。我們仍然有機會贏得更多。因此，如果我們在那裡贏得更多，那麼百分比保持不變。我認為對於你的問題，然後我將繼續這個問題，這種組合可能是相同的。這其實是一件好事。因此，在我們過去的情況下，有些事情我們出了問題，因為我們沒有正確的雙贏關係，甚至沒有與國家方面簽訂正確的合約。

I'm not concerned with this mix. These full-risk contracts have strong margins. They won't go to 0, right? As utilization increases, the margin ticks down a little bit, but that's in line with the guidance I've given. So they're working as we like them. I like the mix of them, and I like these full-risk contracts with our states as well. So I would expect in the right way to model is it, it stays relatively the same going forward.

我不關心這種混合。這些全風險合約的利潤率很高。他們不會去0，對吧？隨著利用率的增加，利潤會略有下降，但這符合我給的指導。所以他們按照我們喜歡的方式工作。我喜歡它們的組合，我也喜歡與我們各州簽訂的這些全風險合約。所以我希望以正確的方式進行建模，它未來會保持相對相同的狀態。

Okay. And that's actually a good transition to my last question. So lots of concerns this earnings season around softening economy and just macro concerns all over the place. And I'm just curious you guys have looked at the last time, like there was any kind of meaningful recession, maybe '08, '09 sort of stands out to me. I mean, what does that do in terms of utilization, say, in transportation business?

好的。這實際上是我最後一個問題的一個很好的過渡。因此，這個財報季有很多關於經濟疲軟的擔憂，而且到處都是宏觀擔憂。我只是很好奇你們上次看過，就像有任何一種有意義的衰退一樣，也許 08 年、09 年對我來說比較突出。我的意思是，這對運輸業務等利用率有何影響？

What does that do for the labor picture in Personal Care. And if you have any thoughts on remote monitoring. I mean, have you guys thought about, hey, if we have sort of rolling over the economy for 2, 3, 4 quarters in '24, what that would mean for each of your businesses?

這對個人照護領域的勞工形像有何影響？如果您對遠端監控有任何想法。我的意思是，你們有沒有想過，嘿，如果我們在 24 年將經濟滾動 2、3、4 個季度，這對你們的每家企業意味著什麼？

Yes. For us, for the population that we serve and the people that we hire a recession from a P&L perspective is helpful, right? Because typically, when there's a recession, more people need help and service those Medicaid roles increase. When there's a recession, it's tighter on labor and the ability for us to hire caregivers and drivers improve. So we usually perform better because we're helping the country out. So it's a tailwind as opposed to a headwind as we move into recessions.

是的。對我們來說，對於我們服務的人群以及我們僱用的人員來說，從損益表的角度來看，經濟衰退是有幫助的，對吧？因為通常情況下，當經濟衰退時，更多的人需要幫助和服務，而醫療補助角色也會增加。當經濟衰退時，勞動力會更加緊張，我們僱用護理人員和司機的能力也會提高。所以我們通常表現得更好，因為我們正在幫助國家擺脫困境。因此，當我們進入衰退時，這是順風而不是逆風。

What about just -- and I could totally see that. But what about in terms of utilization of the transportation business, I would think that would go up in that sort of backdrop? Or do you guys have sort of numbers on what it looked like the last time we went through some like this?

那怎麼樣——我完全可以理解這一點。但就運輸業務的利用率而言，我認為在這種背景下會上升嗎？或者你們有關於我們上次經歷這樣的事情時的情況的一些數字嗎？

Well, so the trip volume, so the usage of our services are in line with the types of illnesses or needs that people have. So those don't accelerate because you're in a recession. What would accelerate if you get more people off. So it's not a -- there won't be a disconnect on utilization as you go into recession. The numbers of trips will go up because the members will go up.

嗯，旅行量和我們服務的使用情況都與人們的疾病類型或需求相符。因此，這些並不會因為經濟衰退而加速。如果讓更多人下車的話會加速什麼。所以，當你進入經濟衰退時，利用率不會出現脫節。由於會員人數增加，旅行次數也會增加。

Thank you. At this time, I would like to turn the call back to Mr. Heath Sampson for closing remarks.

謝謝。現在，我想將電話轉回給 Heath Sampson 先生，讓其致閉幕詞。

Great. Thank you for participating in our call this morning and for your interest in Modivcare. Our updated investor presentation is posted on our IR website. If you want to schedule a follow-up call, please call Kevin, our Head of Investor Relations. We look forward to speaking to many of you over the coming days, weeks, months before we report our fourth quarter results in February. Thanks again, and have a great day. Operator, this concludes our call.

偉大的。感謝您今天早上參加我們的電話會議以及對 Modivcare 的興趣。我們更新的投資者介紹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，請致電我們的投資者關係主管凱文。我們期待在接下來的幾天、幾週、幾個月內與你們中的許多人交談，然後我們將在二月報告第四季度的業績。再次感謝，祝您有美好的一天。接線員，我們的通話到此結束。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time, and thank you for your participation, and have a great day.

謝謝。今天的電話會議到此結束。此時您可以斷開線路，感謝您的參與，祝您有美好的一天。