CorVel(CRVL) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues for the March quarter were $171 million, an 18% increase from the same quarter of the prior year [5][21] - Earnings per share for the quarter were $1.09, a 35% increase from $0.81 in the same quarter of the prior year [21] - Revenues for fiscal 2022 were $646 million, up 17% [5][21] - Earnings per share for fiscal 2022 were $3.66, a 44% increase from $2.55 in the prior fiscal year [21] Business Line Data and Key Metrics Changes - Patient management revenue for the March quarter was $111 million, an annual increase of 15% [23] - Network Solutions revenue for the March quarter was $60 million, a 24% increase from the same quarter of the prior year [24] - Fiscal year revenue for Network Solutions was $222 million, an annual increase of 21% [24] - Gross profit for the March quarter increased by 4% from the previous year [24] Market Data and Key Metrics Changes - CorVel's claim volumes have returned to pre-pandemic levels, with expectations of increased workers' comp claims as the labor market rebalances [8] - The company noted that inflation is affecting the markets served, increasing demand for risk management services [10] Company Strategy and Development Direction - CorVel is focused on expanding its penetration in the health market, with investments yielding positive results [25] - The company is enhancing its TPA and Network Solutions business, particularly through the CERiS payment integrity platform [6] - The introduction of conversational AI in contact centers aims to streamline processes and improve the experience for injured workers [18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of inflation and labor shortages on the healthcare market, emphasizing the need for effective risk management solutions [10] - The company remains committed to financial strength and innovation, which is being recognized in the industry [20] Other Important Information - The company repurchased 145,991 shares at a total cost of $24.8 million during the quarter [26] - The cash balance at the end of the quarter was $98 million, reflecting strong liquidity and a healthy balance sheet [26] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating the conclusion of the call without a Q&A segment [28]