Earnings Labs

CorVel Corporation (CRVL)

Q3 2016 Earnings Call· Tue, Feb 2, 2016

$57.69

-0.74%

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Transcript

Operator

Operator

Thank you for standing by. Welcome to 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 and 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 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 December quarter. Our Enterprise Comp TPA continued its growth and the development of its services. We've been investing in the development and deployment of improved operations management metrics and reporting throughout all of our services. Revenues for the December quarter were $124 million, 1% over the revenue for the December 2014 quarter. Revenues were impacted by a temporary slowdown in some of our group health business as customers continued to adjust their programs for the Affordable Healthcare Act. Sales of new accounts continued at a good pace. Earnings per share for the quarter ended December 31, 2015, were $0.34, up 3% for the same quarter of the prior year. The December quarter is always impacted by the holiday calendar, but otherwise, we experienced improving operations I'll discuss later. And now to our market. Extremely low interest rates, high corporate and personal tax rates and continuous technology advances are gradually changing many of our markets. In the big segments, oil or banking, the changes are very visible. In markets like ours, the changes don't get much publicity. For market participants like CorVel, the changes matter, and it's important for our management team to adjust strategies in light of the new world in which we live. Change can seem slower for long periods of time, but eventually, a critical mass of change vectors is reached, and then change can seem sudden. The last couple of years have been a time when we have been making meaningful progress in the evolution of our processes. We've been strengthening the foundations for our services and expect more visible results in the next couple of years. We believe this period will lead to a time of market share change. Our business style remains to achieve good returns on…

Operator

Operator

[Operator Instructions] And it seems that we have no questions at this time. I'd like to turn the floor back to Gordon Clemons for closing remarks.

V. Clemons

Analyst

Thank you very much, and thank you to everyone for joining us today. We look forward to talking to you again at the end of our March quarter. Have a good day.

Operator

Operator

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