Earnings Labs

CorVel Corporation (CRVL)

Q1 2014 Earnings Call· Tue, Jul 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

+4.05%

1 Week

+10.50%

1 Month

+4.51%

vs S&P

+7.13%

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 being given at that time. As a reminder, this conference call 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 June quarter. Revenues for the June quarter were $118 million, 13% over the $105 million in revenue for the June 2012 quarter. Split adjusted earnings per share for the quarter ended June 30, 2013 were $0.40, up 38% from $0.29 in the same quarter of the prior year. During the quarter, the stock was split 2:1. I would also note that the June quarter contained an extra work day compared to March quarter and is also weighted by seasonal reductions in our employment taxes. The quarter's EPS results reflected improved results in our Network Solutions service and the ongoing growth of our enterprise comp product line. Our TPA business continues to grow at more than 20% per year. Network Solutions has begun to respond to our increased investment. Corporate overhead down year-over-year is now increasing modestly as we expand investments in systems and software. The market for our services has continued to be more active than it was during the recession and the ensuing extended recovery. Employers hunkered down during the weak economy have begun to explore the next phases in the development of their programs. Broker recognition of CorVel services has also improved opening more opportunities for the company. The Affordable Healthcare Act implementation has raised uncertainties and as we've seen recently, maybe accompanied by postponements or other disruptions. The act of tighten the focus on containing healthcare cost. Our customers are exploring innovations which strengthen their management of cost. Healthcare inflation is slowed, but the overall cost level of healthcare remains the key issue, we've adjusted our strategic plans to place more emphasis on our opportunities in both the private and public sectors in the healthcare marketplace. That is as distinguished from the workers compensation marketplace. Expansion continues in our…

Operator

Operator

(Operator Instructions). So there are no questions at this time. Mr. Clemons, do you have any further comments?

Gordon Clemons

Analyst

Yes, I would just like to thank everyone for joining us today. And since a lot of our audience are made up of associates of CorVel, I would like to take this opportunity to thank them for all their work this last year and especially in this last quarter. We are involved in a very unique time and healthcare and I think we all have a chance to make a difference and it's a pleasure to be associated with all of you and I think we are in for an interesting time. We look forward to talking to the investors again in another quarter, thank you.

Operator

Operator

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