Earnings Labs

CorVel Corporation (CRVL)

Q1 2015 Earnings Call· Tue, Jul 29, 2014

$57.69

-0.74%

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Same-Day

-0.29%

1 Week

-4.63%

1 Month

-3.06%

vs S&P

-4.68%

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 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. (Operators Instructions) I would now like to turn the conference over to your host Mr. Gordon Clemons. Sir, please go ahead.

Gordon Clemons

Operator

Thank you for joining us to review CorVel's June quarter. Revenues for the June quarter were $124.4 million, 5.3% over the $118 million in the revenue for the June 2013 quarter. Earnings per share for the quarter ended June 30, 2014, were $0.3901. Earnings per share for the prior year were $0.3909. Gross profit increased 3% compared to the same quarter of the prior year. New sales, which have been strong in 2012 and were somewhat softer last year, have picked up again this year. New sales do not impact our results for at least a year following the sale. G&A in the quarter increased 11%, a couple of one-time costs were the reasons for the increase in G&A. Network Solutions continued to improve. The Enterprise Comp product line growth continued, but margins decreased. After a period of rapid improvement in results in the fiscal years 2012 and 2013, from that higher plateau, we have consolidated our gains and have been making increased investments in the next leg of our journey. Now, looking at the overall market. First, the health market continues in a period of rapid transition. Our [ph] Sirius hospital review product positions the company well in this market. Insurers have moved cautiously forward, making sure to test results and to review all possible implications of increased reviews of the inpatient facility charges. The volume of prospects in the workers compensation TPA market have been more plentiful this year than last. Private equity investors have continued to be active, unsettling both target companies and large carriers, who must assess the impact of the changing ownership in managed care and in the TPAs. Private equity investors dominate the M&A activity, taking much of the industry into leveraged temporary ownership. These owners focus on scale, short-term growth and synergies. It…

Operator

Operator

(Operator Instructions) It appears there are no questions at this time. I would like to turn the floor back over to Mr. Clemons for concluding comments.

Gordon Clemons

Operator

Thank you. Thank you all for joining us. We'll look forward to talking to you again next quarter. Good bye.

Operator

Operator

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