Earnings Labs

CorVel Corporation (CRVL)

Q3 2021 Earnings Call· Tue, Feb 2, 2021

$57.69

-0.74%

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Transcript

Operator

Operator

Thank you for standing by. Welcome to the CorVel Corporation Quarterly Earnings Release Webcast. During the course of this webcast, 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 that the 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 the actual results to differ materially from those contained in our projections or forward-looking statements. I would now like to turn it over to Michael Combs, President and Chief Executive Officer.

Michael Combs

Management

Good day, and thank you for joining us to review CorVel's December quarter. Joining me on the call today is Brandon O’Brien, CorVel's Chief Financial Officer. Today, I'll be discussing the current environment, business performance, market trends and progress on strategic software initiatives. Brandon will then provide additional insight into our financial results for the December quarter. Earnings per share for the quarter ended December 31, 2020, were $0.63, up 26% from the same quarter of the prior year. Revenues were $142 million. We're still recovering during the pandemic from $148 million of revenue in the December quarter of 2019. The company's claims management services have continued their market share growth, with margins assisted by some of the economies associated with the work-from-anywhere technologies CorVel had implemented before the virus outbreak. Given the considerable uncertainty and concern everyone felt in late March and throughout April, the company's results for 2020 demonstrate our organization's resilience and sound technology foundation. We come to the beginning of 2021 having finished a strong year. Our cash flow has been stronger than ever. New sales were a record for the year, with particular success in claims administration and our CERiS commercial health review business. And now for an overview of sales. A self-assessment of our sales results before last year identified this as an area where we believe we can and should improve. CorVel has strong product offerings in a number of managed care and claims management services and workers' compensation. We have increased our focus on the drivers of sales success, with good results in the first year of this effort. This remains a continued area of emphasis. Sales results reflect healthy balanced growth in Network Solutions, enterprise comp TPA and CERiS medical review service offerings. An area of focus has been system enhancements…

Operator

Operator

This concludes today's webcast. You may disconnect your lines at this time.