CorVel Corporation (NASDAQ:CRVL) Q1 2015 Earnings Conference Call - Final Transcript

Feb 03, 2015 • 11:30 am ET


CorVel Corporation (NASDAQ:CRVL) Q1 2015 Earnings Conference Call - Final Transcript


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Thank you for standing by. Welcome to the 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 to the documents the company files from time-to-time with the Securities and Exchange Commission, specifically with 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.

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. Sir, please go ahead.

Gordon Clemons

Thank you for joining us to review CorVel's December quarter. Revenues for the December quarter were $122.4 million, 1% over the revenue for the December 2013 quarter. Earnings per share for the quarter ended December 31, 2014, were $0.33, in the same quarter of the prior year earnings per share were $0.41.

Sales continue to grow in the enterprise comp TPA services and in our Sirius hospital bill review services. As in the September quarter, we continue in this quarter to operate between new sales that will be implemented later in the March quarter and some managed care sales lost due to consolidation into integrated programs that occurred earlier last year.

We expect no new wins going live at the end of the quarter and at the end of the current quarter to offset the losses from last year and for our momentum in the more rapidly growing services to again be visible in our results.

Integrated programs for workers comp claims is the general trend in the industry. Integration is particularly suited to CorVel's product mix and business strategy. I will discuss this further later on the call. Major TPAs attempt to control as much of each program as possible.

We are in a good period here regarding the new service features we are introducing and our growing position in the market. We had a mismatch of changes in our business mix, but I feel good about the momentum in our business. I will speak first to the market environment.

We expect this year in the Healthcare Insurance markets to include continuing adjustments by the large carriers to the Affordable Care Act, responses which reflect the planning done last year.

Programs which slowed

Gordon Clemons

2014 are indicated to pick back up this year. CorVel's Sirius line of hospital bill review operations were expanded last year. Our expansion got ahead of the market trends and we are gradually rebalancing that effort.After a period of rapid initiation of