Earnings Labs

CorVel Corporation (CRVL)

Q2 2014 Earnings Call· Tue, Oct 29, 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

-0.63%

1 Week

-6.14%

1 Month

+7.60%

vs S&P

+5.44%

Transcript

Operator

Operator

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 prediction and that actual events or results may differ materially. CorVel refers you to the documents that the company filed 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 yearend quarter, this 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.

Gordon Clemons

Management

Thank you for joining us to review CorVel's September quarter. In the quarter our Enterprise Comp TPA added a number of important clients, we took steps in the expansion of our medical review services in the health markets and expansions to our preferred provider networks were implemented. Each of these initiatives are expected to begin adding to our results in the coming year. Revenues for the September quarter were a $119 million, 13% over the revenue for the September 2012 quarter, earnings per share for the quarter ended September 30th 2013 were $0.41, up 39% from the same quarter of the prior year. I'll speak first to the markets for our services. As we’re all well aware the Affordable Care Act, the implementation has implications for every aspect of any healthcare or healthcare insurance services. Both providers and payers are under pressure to reduce costs. The first impact on CorVel from the legislation has been an increase in the demand for our network solution services, specifically our proprietary mid check select hospital bill review services, we see opportunities in each segment of the market place, whether that is in the private carrier market, Medicaid or Medicare. In workers' compensation the company's market for self insured and high deductible programs for employers has continued to be receptive to our offering. This is the market for CorVel's full service programs, fall under the brand name Enterprise Comp. We have continued to expand both our staff and our systems in this segment of the business. Our long term technology strategy remains a cornerstone of our business development. As CorVel grows, our ability to make such investments also increases. Our business strategy had evolved somewhat over the last year. We are expanding our investments in medical review and provider networks. The Enterprise Comp TPA…

Operator

Operator

(Operator Instructions). And there are no further questions. Mr. Gordon do you have any further comments?

Gordon Clemons

Management

Yes I did want to mention that our tax rate in the quarter was a little higher than normal, we’re making up for an oversight in the past that kind of saw our tax rate was about 42.5% in the quarter that took $0.02 a share of earnings and will continue for two more quarters and then should return to about 40% in the future. That's all I really had to offer today. I appreciate the attendance on the call and we'll look forward to seeing you guys on the next quarter. Thank you.

Operator

Operator

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