ModivCare (MODV) 8-K Cautionary Note about Forward-Looking Statements

NASDAQ: PRSC

January 2012

Exhibit 99.1

2

Cautionary Note about Forward-Looking Statements

Certain

statements

made

in

this

presentation,

such

as

any

statements

about

Providence's

confidence

or

strategies

or

its

expectations

about

revenues,

results

of

operations,

profitability,

earnings

per

share,

contracts,

collections,

award

of

contracts,

acquisitions

and

related

growth,

growth

resulting

from

initiatives

in

certain

states,

effective

tax

rate

or

market

opportunities,

constitute

"forward-looking

statements"

within

the

meaning

of

the

private

Securities

Litigation

Reform

Act

of

1995.

Such

forward-looking

statements

involve

a

number

of

known

and

unknown

risks,

uncertainties

and

other

factors

which

may

cause

Providence's

actual

results

or

achievements

to

be

materially

different

from

those

expressed

or

implied

by

such

forward-looking

statements.

These

factors

include,

but

are

not

limited

to,

reliance

on

government-funded

contracts,

risks

associated

with

government

contracting,

risks

involved

in

managing

government

business,

legislative

or

policy

changes,

challenges

resulting

from

growth

or

acquisitions,

adverse

media

and

legal,

economic

and

other

risks

detailed

in

Providence's

filings

with

the

Securities

and

Exchange

Commission.

Words

such

as

"believe,"

"demonstrate,"

"expect,"

"estimate,"

“forecast,”

"anticipate,"

"should"

and

"likely"

and

similar

expressions

identify

forward-looking

statements.

Readers

are

cautioned

not

to

place

undue

reliance

on

those

forward-

looking

statements,

which

speak

only

as

of

the

date

the

statement

was

made.

No

inference

should

be

drawn

that

Providence

undertakes

any

obligation

to

update

any

forward-looking

statement

contained

herein.

Forward-Looking Statements

PRSC Overview

Market Cap:

$192 million

Price (1/11/12):

$14.80

Range:

$8.35 -

$17.84

Diluted Shares Out:

13.3 million*

Avg. Volume

58,000

Cash Position:

$48.5 million*

Net LT Debt:

$104 million*

Revenue TTM:

$918 million*

Trailing 12M EPS:

$1.19

P/E (trailing):

12.4x

Price/Sales

0.2x

* Data as of 9/30/2011

3

Leading provider of home and community based

social services and transportation services

management

Clients are government beneficiaries eligible due to

income level and/or emotional/educational

disabilities, funded largely by Medicaid

Services are contracted primarily by state, city and

county levels of government and are delivered

under fee-for-service, cost-based, capitated and

block purchase arrangements

Deliver cost savings and improved effectiveness for

government social programs by reducing out of

home care and reducing transportation expense

4

5

Home and Community

Based Counseling

Home based counseling

Intensive home based counseling

Substance abuse treatment services

School support services and tutoring

Correctional private parole services

Workforce development and job training

Therapeutic foster care, adoption

services

Developmentally disabled and autism

spectrum services

Mentoring

Point to point  transportation

Customer, trip authorization

Call-center management

Utilization management  and data

collection

Quality assurance

Billing and claims

Network credentialing

Case management

NET Services

Our Services

Social Services Segment Overview

520 contracts and over 57,000 clients (of 60 million eligibles) in

33 states, the District of Columbia and British Columbia

*

Business built around steady organic growth and through

acquisitions

Past growth levels -

averaging 9% per year -

are expected to be

sustainable given far reaching operations and the large

population eligible for its services

Pricing expected to be steady, substantially all contracts

renewed

Variable business model allows management to adjust to

challenges as necessary including state budget pressures and

system reforms that could challenge overall profit margin 

6

* Data as of 9/30/2011

NET Services Segment Overview

Leader in the $2.8 billion Medicaid NET benefit market with 75

contracts in 34 states and the District of Columbia and over 10.3

million covered lives

*

Positive revenue trends as a result of recent bid success rate

-

Won 8 of 9 incumbent contracts up for rebid in 2011

•

Only loss Colorado (<$6M)

-

Won 5 of 5 new states in 2011

-

Expect to service 40 states in 2012

7

* Data as of 9/30/2011

NET Services Segment Bid Results

Retained Virginia, our second largest contract, as well as contracts

in Delaware, Arkansas and Pennsylvania.

Received notice of intent to re-award in Nevada, but still subject to

protest.

Retained and expanded contracts in South Carolina and Georgia

(this award remains under protest).

Also retained and expanded Connecticut after successful protest,

but new contract structure will reduce revenue recognition.

Added Michigan and Wisconsin and Missouri was reinstated.

Newly executed contracts in Texas and New York City will be

implemented in early second quarter.

Additional business from NJ and start-up costs in Michigan and

Wisconsin impacting 2011 margins

8

Market Trends

are Generally Favorable

Medicaid enrollment up by 19% since 2007

1

, expected to

increase by 33% in 2013 with Healthcare Reform Legislation

60% of Medicaid dollars still spent on out-of-home care

2

States now have federal financial incentives to increase home

and community based services and are redirecting clients away

from out-of-home care

Federal Court has intervened to stop indiscriminate cuts

CMS will not grant eligibility waivers

1

Kaiser

2

CMS

9

State budgets remain tight, but with Medicaid

enrollment up -

states have to do more with less

Strategic Initiatives

Develop/Deliver Services to New Payer Client Segments:

Seniors

–

Deliver skilled and unskilled home health and mobility services

–

Estimated

$100

billion

market

by

2017

(1)

U.S. Dept. of Veterans Affairs

–

Budget driven shift to more cost effective human/behavioral health services

for active military and veterans

–

FY2012 medical care budget estimate of $53.9 billion up from $47.3 billion

in 2010

(2)

Health Care Reform

–

Adds 16 million new Medicaid recipients beginning 2013

–

Deliver Mental Health Parity

–

Boost community health focus with $11 billion to health centers over next

10 years and 20 million new patients

1)

Centers for Medicare and Medicaid Services

2)

U.S. Dept. of  Veterans Affairs

10

11

Revenue grew 5.8% to $699 million from first nine months of 2010

–

Social services up 4.9%

–

NET services up 6.3%

First nine month 2011 revenue up 19% over two year period (2009)

Diluted EPS of $0.85

–

EPS included non-cash charge of $2.5 million or $0.11 for write-off of

unamortized deferred financing fees related to its senior credit

facility

Cash from operations of $32 million

Debt refinancing completed

–

New $140 million senior secured credit facility

–

Interest savings of approximately 300 basis points

Continued Growth in

2011 First Nine Months

12

Providence: Competitively Positioned

Strong Business with Track Record of Success

Continued Growth Expected from Both Social

Services and Transportation Businesses

Positioned to Benefit from Increased Medicaid

Enrollment and Trend toward Home and

Community Based Care

Potential to Diversify Into New Payer Client

Segments through Organic and/or Acquisitive

Growth

Strong Cash Flow and Commitment to Deleverage

1

Centers for Medicare and Medicaid Services

2

U.S. Dept. of Veterans Affairs