Earnings Labs

CorVel Corporation (CRVL)

Q1 2022 Earnings Call· Sat, Aug 7, 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 the 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 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. I would now like to turn it over to Michael Combs, President and Chief Executive Officer.

Michael Combs

Operator

Good morning. Thank you for joining us to review CorVel's June quarter. On the call with me today is Brandon O'Brien, CorVel's Chief Financial Officer. Today, we'll be discussing business performance, the current environment and market trends and then move on to system development. Brandon will then provide an overview of our financial results for the June quarter. Revenues for the quarter ended June 30, 2021, were $153 million. Earnings per share for the quarter were $0.92, increasing 102% from $0.46 per share in the same quarter of the prior year. The quarter ending cash balance was $139 million, up $45 million from June 30, 2020. This increase is a proxy for the strength of our service model. It reflects the enhanced levels of automation and resulting efficiencies in our system as well as the improvements to operations that have been accomplished in the dynamic environment during the pandemic. The record revenue in the quarter ended June 30, 2021, is largely due to implementing and building on new business sold in 2020 and the first 2 quarters of this year as well as an increase in transaction volumes as the year progressed. Prior to the June quarter, we experienced consecutive quarters of increased profit margins on relatively static revenues. In addition to increased investment in technology, we've expanded and enhanced our digital marketing strategy and engagement with various digital and print mediums. We're being more effective with marketing automation, content marketing and brand activation. After taking time during the past 4 earnings calls to discuss the pandemic and its impact on business, it's refreshing to talk about things settling into a new normal. With new accounts added, the resumption of medical procedures increased claims and billed volume and demand for managed care, service lines are meeting or exceeding pre-pandemic levels.…