CorVel(CRVL) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Earnings per share for the quarter ended June 30, 2020 were $0.46, with revenues of $129.6 million, reflecting a 14% decrease from the same quarter of the prior year [4][28] - The quarter ending cash balance was $94 million, which is up $11 million from the end of the last quarter [5][39] - Gross profit margins increased an average of 300 basis points per month during the quarter as volumes generally increased [31] Business Line Data and Key Metrics Changes - Revenue for patient management, including third-party administration and traditional case management, was $85 million, an annual increase of 14% [32] - Quarterly revenue for Telehealth services expanded nearly 300% above prior quarterly averages, indicating strong demand [33] - Revenue for Network Solutions in the wholesale market was $44 million, a decrease of 12% from the same quarter of the prior year [34] Market Data and Key Metrics Changes - The commercial health market is increasingly important to CorVel's overall results, with ongoing investment creating new growth opportunities [14] - The pandemic has led to increased demand for payment integrity solutions, with CorVel actively engaging with insurer partners to develop new services [12] Company Strategy and Development Direction - The company is focusing on technology investments to enhance virtual care functionality, which has seen a tenfold increase in demand due to COVID-19 [10][18] - CorVel's strategy includes integrating virtual care services with the intake process to improve outcomes and reduce care delays [18] - The company plans to expand its use of machine learning technology to enhance liability risk assessment [23][25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of employee safety and liquidity management during the pandemic, which allowed for effective operational adjustments [6][29] - The company expressed confidence in its financial strength and ability to meet dynamic customer needs while continuing to deliver high-quality service [8][19] Other Important Information - CorVel restarted its stock repurchase program on June 15, 2020, after pausing it earlier in the pandemic [9][39] - The company did not apply for or receive any federal support payments during the pandemic [30] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating the end of the call without a detailed Q&A section.