CorVel(US:CRVL)2022-08-06 16:57Financial Data and Key Metrics Changes - Revenues for the June quarter were $176 million, increasing 16% from $153 million in the same quarter of the prior year [4][23] - Earnings per share for the quarter were $0.94, a 2% increase from $0.92 per share in the same quarter of the prior year [4][23] - The company repurchased 174,822 shares at a total cost of $26.7 million during the quarter, with a total of 37.4 million shares repurchased for $681 million since inception [28] Business Line Data and Key Metrics Changes - Revenue for patient management, including TPA services, was $115 million, an annual increase of 14%, but gross profit decreased by 14% [24][25] - Revenue for network solutions sold in the wholesale market was $61 million, an increase of 18% from the same quarter of the prior year, with gross profit up 24% [26][27] Market Data and Key Metrics Changes - The company noted that inflation is at levels not experienced for many decades, impacting operational costs and the overall economic environment [9] - The workers' compensation industry is seeing higher increases in mega claims, driven by factors such as inflation, liability risk, and an aging workforce [11] Company Strategy and Development Direction - The company is focusing on automation and operational efficiencies to improve bottom line performance while managing increased operational costs [5][25] - CorVel is exploring synergistic acquisition opportunities, particularly in light of reduced valuations in the market [10] - The company continues to invest in technology and automation to enhance service delivery and operational efficiency [20][21][19] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the ongoing economic dynamics, including inflation and the potential for a recession, which are affecting M&A activity [9] - The company remains optimistic about the demand for telehealth and virtual care models, despite regulatory challenges [15][14] Other Important Information - CorVel received the Business Insurance Innovation Award for its advanced data analytics solution, Cogency, highlighting its commitment to innovation [7][8] - The company is leveraging technology to keep injured workers engaged in their recovery, which is expected to reduce overall costs of care [16] Q&A Session Summary - The Q&A session concluded without any specific questions or answers being recorded [29]