Earnings Labs

CorVel Corporation (CRVL)

Q1 2016 Earnings Call· Tue, Aug 4, 2015

$57.69

-0.74%

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Transcript

Operator

Operator

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 the 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 events 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

Management

Thank you for joining us to review CorVel's June quarter. Revenues for the June quarter were $127 million, 2% over the $124 million in the revenue for the June 2014 quarter. Earnings per share for the quarter ended June 30, 2015, were $0.34. Earnings per share for the prior year were $0.39. Both the network solutions and workers comp and the CERiS group heath business had improved results in the quarter. Our enterprise comp full service TPA offering continued its growth. G&A in the quarter was up both sequentially and year-over-year. I'll speak later to initiatives focused on improving efficiencies. The results for the quarter, while improving sequentially, do not represent results with which we're satisfied. Such periods have always spurred us to examine our enterprise more critically, and this time is no different. We have begun a number of adjustments under our own control. It's important to note that some of these changes involve practices for which I am responsible. Fortunately, this makes the discussion about change, one that I can have in a meeting of one. First, let's talk about the market for CorVel services. The health market continues to react to the Affordable Care Act. This quarter witnessed the largest increase in the proposed consolidation of competitors in many years. Two of the top-five carriers have announced proposed acquisitions of two others of the top five. It is generally assumed that accommodations will be required to address antitrust implications. But the point is that payers are very concerned about being efficient and being able to price competitively. Such M&A activity can delay the interest by these firms involved in the implementation of new programs such as ours. However, the effort to improve cost is an important part of the industry response to the Affordable Care Act, which…

Operator

Operator

[Operator Instructions] There are no questions at this time. I would like to turn the floor back over to Gordon for closing comments. Thank you. End of Q&A

Gordon Clemons

Management

Thank you. And I'd like to thank everyone for joining us. We will look forward to talking to you again at the end of the September quarter.

Operator

Operator

This concludes today's teleconference. You may disconnect your lines at this time. And thank you for your participation.