Earnings Labs

CorVel Corporation (CRVL)

Q2 2015 Earnings Call· Tue, Oct 28, 2014

$57.69

-0.74%

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Transcript

Operator

Operator

Thank you for standing by. Welcome to the CorVel Corporation Quarterly 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 filed 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. [Operator Instructions] 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.

V. Clemons

Analyst

Thank you for joining us to review CorVel's September quarter. Revenues for the September quarter were $123.7 million, 4% over the revenue for the September 2013 quarter. Earnings per share for the quarter ended September 30, 2014, were $0.37, down 7.7% from the same quarter of the prior year. In the quarter, our Enterprise Comp, TPA product, continued to grow at rates over 20% annually as did our CERIS hospital review products. A trend toward integrated programs in the workers' compensation favors CorVel's proprietary program. But this trend has caused the sale of standalone managed care into other employer accounts to become more difficult. This has cost us some volume in the wholesale market segment of our long-standing managed care business. First, I'll speak to the markets for our services. The health insurers are continuing to adjust to the implications of the Affordable Care Act, implementing changes which can reduce their healthcare costs. CorVel's CERIS line of hospital bill review programs continues to expand, but not without adjustments to the evolving market conditions. After a period of rapid initiation of pilot programs, carriers are now evaluating results, substantiating payment integrity and adjusting operations to incorporate this service on a larger scale. The scope of the various strategy changes being considered by private sector carriers is considerable, taxing their resources and at times, slowing projects with CorVel. Opportunities for the CERIS products continue to be promising in each segment of the marketplace, that is the private carrier market, Medicaid and Medicare programs. In workers' compensation, the company continues to expand into the market for self-insured and high deductible programs. Although we've been approved by almost all major carriers, the brokerage community, a collection of many individual producers, is still learning of our offering and becoming more comfortable with CorVel as a…

Operator

Operator

[Operator Instructions] Okay, I'd like to go ahead and turn the floor back over to Mr. Clemons for any closing remarks.

V. Clemons

Analyst

Thank you. And I'd like to thank everyone for joining us this quarter. This is a particularly active time. So we'll look forward to joining you all again for the next quarterly release. Thank you.

Operator

Operator

Thank you. Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. And thank you for your participation.