Earnings Labs

CorVel Corporation (CRVL)

Q4 2013 Earnings Call· Thu, May 30, 2013

$57.69

-0.74%

Key Takeaways · AI generated
AI summary not yet generated for this transcript. Generation in progress for older transcripts; check back soon, or browse the full transcript below.

Same-Day

+1.41%

1 Week

+7.62%

1 Month

+14.77%

vs S&P

+17.47%

Transcript

Operator

Operator

Thank you for standing-by. Welcome to the CorVel Corporation Earnings Release Conference Call. During the course of this conference call, CorVel Corporation may make projections or other forward-looking statements regarding future events or the future financial performances of the company. CorVel wishes to caution you that these statements are only predictions and that actual events or results may differ materially. CorVel refers you to the documents the company files from time-to-time with the Securities and Exchange Commission, specifically the company’s last Form 10-K and 10-Q files for the most recent fiscal year and quarter. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. At this time, all participants are in a listen-only mode. A question-and-answer session will be conducted later in the call with instructions given at that time. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Gordon Clemons. Sir, please go ahead.

Gordon Clemons

Analyst

Thank you for joining us to review CorVel’s March quarter and the last fiscal year. Revenues for the fiscal year ended March 31, 2013 were $429 million, a 4% increase over the $413 million in revenue in fiscal 2012. Revenues for the March quarter were $112 million, 7% over the $104 million in revenue for the March 2012 quarter. Earnings per share were $0.70 for the quarter, up 57% from the same quarter the prior year. Our TPA business continues to grow at more than 25% per year. We are expanding investments in our Network Solutions business. We have been able to reduce our corporate administrative costs to 11% of revenue. The productivity management initiatives, I discussed during the year, have also contributed to the company’s margin gains. This last year saw our Enterprise Comp that is our full service workers compensation TPA offering gain momentum as recognition spread regarding our innovative solutions. Private sector employers typically have an insurance program which wraps around our TPA offering. The carrier providing that insurance must approve of the TPA chosen to do the claims-order. CorVel had to obtain approvals from the major underwriters in order to open this important private sector segment of the marketplace. That effort took several years and was largely completed in the last year. Brokers likewise, are critical to reaching the employer market. We are building market awareness of CorVel there. This process will stretch out over a number of years. Enterprise Comp growth continued throughout the year at annualized rates of about 25%. We have also continued to build-out both the services and software that make our program unique. These combined efforts placed a high short term load on our organization. And yet in the past, we have launched a number of new services and therefore our…

Operator

Operator

(Operator Instructions) There are no questions at this time, do you have any further comments.

Gordon Clemons

Analyst

Yes, I just like to thank everyone to joining us today. It was nice to have little better results to report to you and we look forward to talking to everyone in the coming quarter, thank you.

Operator

Operator

This concludes our conference call for today. Thank you for your participation. And please disconnect at this time.