CorVel(US:CRVL)2020-02-04 22:39Financial Data and Key Metrics Changes - Revenues for the December quarter were $148 million, with earnings per share at $0.50, a decrease of 7% from $0.54 in the same quarter of the prior year [5][20] - Net income for the quarter was $9.4 million, and gross profit increased by 9% compared to the December quarter of 2018 [20] - Operating cash flow was strong at $20 million, and the cash balance at the end of the quarter was $90 million [24] Business Line Data and Key Metrics Changes - Revenue for patient management services, including third-party administration, was $98 million, reflecting an annual increase of 7% [20] - Revenue for network solutions sold in the wholesale market was $50 million, a decrease of 8% from the same quarter of the prior year [22] - A temporary capacity decrease in patient management services was noted due to a change in subcontractors, affecting the total output of utilization management services [21] Market Data and Key Metrics Changes - The company is expanding its position in larger health markets such as Medicare, Medicaid, and private pay healthcare, with the CERiS division showing rapid growth [13] - The managed care industry is experiencing a shift towards full-service vendors to mitigate vulnerabilities in patient information [11] Company Strategy and Development Direction - The company is focused on digital transformation in healthcare, leveraging advances in computing power and artificial intelligence [7][8] - Strategic software enhancements have been released, emphasizing a data-centric approach to improve operational efficiency and decision-making [15][16] - The company is well-positioned for potential acquisitions, particularly in light of anticipated economic slowdowns [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing rapid advancements in computing power and the importance of integrating healthcare data across services [8][9] - The company expects to achieve supply and demand equilibrium in patient management services during the current quarter [21] - Investments in security positioning are expected to enhance long-term growth potential and customer assurance [23] Other Important Information - The company repurchased 240,000 shares for a total price of $19.2 million during the quarter, having repurchased 67% of total shares outstanding to date [24] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content [25]