CorVel Corporation (CRVL) on Q1 2021 Results - Earnings Call Transcript

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 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. Michael Combs: Thank you for joining us to review CorVel's fiscal year 2021 and the March quarter. Joining me on the call today is Brandon O'Brien, CorVel's Chief Financial Officer. Today, I'll be discussing business performance, current environment and market trends and progress on systems development initiatives. Brandon will then provide an overview of our financial results for the fiscal year and the March quarter. The march quarter revenues were $146 million. Earnings per share for the quarter were a record $0.81, an increase of 27% from $0.64 per share in the same quarter of the prior year. The primary contributors to the rise in earnings were increased systems automation, and improvements in productivity, along with reduced discretionary spending. Improved administration of our self insurance health program delivered enhanced benefits to our employees and also reduced the program's costs. Revenues for fiscal 2021 were $553 million with EPS of 255, which is unchanged from 2020. We have repeatedly heard the past year described as unprecedented. And while that is true for many reasons, the dedication, service and commitment to excellence our team showed was exemplary, consistent with how they have unfailingly responded when faced with adversity. In addition to positive response from our team, we had the honor of celebrating 30-years on NASDAQ this year, and we were recently designated as a great place to work by our 3700 plus team members. We are pleased with the increase in new sales experienced during the last calendar year. Our team successfully transitioned to meeting virtually with prospects a lot of Zoom meetings indeed, and the March quarter numbers indicate an even higher trajectory for the coming year. Overall results in the first quarter reflect strong execution of our strategic plan, including a commitment to delivering innovative solutions for our partners. That commitment correspondingly resulted in an expanding scope of services offered to existing clients. We expect the positive momentum in the first quarter to continue through the balance of the year. Additional executive leadership has been added to our operations team. We look to build on the growth momentum realized these last two quarters. The great place to work designation combined with the favorable work conditions at CorVel have been helpful as we've been aggressively growing the team to handle the new business being onboarded. Brandon O'Brien: Thank you, Michael. And good morning everyone. Revenues for the March quarter were $146 million down 1% from the same quarter of the prior year. Earnings per share for the quarter were record $0.81, an increase of 27% from the $0.64 per share in the same quarter of the prior year. The record quarterly earnings results were realized primarily through improved operational efficiencies across our service lines. Because we're a vertically integrated service company, a higher percentage of our total costs are variable. This allows us to be nimble by successfully adjusting costs to mass market fluctuations, as demonstrated by the pandemic. These efficiencies are driven by temporary reductions of discretionary spending, plus longer term adjustments in the least office space. The pandemic revealed for CorVel as it has for many businesses, the opportunity for us to create an evolved vision for our office network. Revenue for the fiscal year ended March 31, 2021 was $553 million down 7%. This is primarily attributable to reduced access to elective health care during the June and September quarters of the fiscal year, as well as lower injury rates during the pandemic. Earnings per share for the fiscal year ended March were $2.55 equaling the prior fiscal years EPS results. The revenue for patient management, including third party administration, TPA services, and traditional case management for the fiscal year ended March 31, was $369 million, an annual decrease of 5%. Fiscal year gross profit increased 16%. Revenue for the March quarter was $97 million, an annual increase of 4%. Gross profit increased by 40% from the March quarter of 2020. Improved margins for underlying services, plus a favorable mix shift of services towards greater utilization of higher margin services led to the 40% increase in profit. Operator: This concludes today's webcast. You may disconnect your lines at this time. Q -:
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