CRVL - Earnings call transcript Q2 2020

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Operator

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 of the future financial performances of the company. CorVel wishes to caution you that these statements are only predictions and the 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. to Executive over Officer. like President Michael now Chief and would turn to it Combs, I

Michael Combs

Good to quarter. review Thank CorVel's day. you June for joining us

On the environment, business O'Brien, market trends, is Today, me focusing be made performance, the on, on we're Financial and I'll current Chief we've Officer. Brandon the discussing services call with progress CorVel's today key XXXX quarter. quarter will our the $XXX.X financial the XX, June into ended for provide the results for insight Earnings $X.XX. additional then share period initiatives. million. Brendan per Revenues were June for were

business tied physician the general reduction CorVel's of much healthcare reflect elective of of the care spending, due As quarter the results is to to and volume the surgeries June pandemic.

meet each members manage adhered small of incrementally quarter. cash home we investments the start our us of partners. of While the each workforce partners, working fiscal evolving the physical in start number business which which last business have $XX remains operation These year from objectives. managing of our for guidelines. The coincided led to ending functions quarter up month allowed of up June the liquidity very a at customers, COVID-XX. CorVel deliver to physical employees, managing of in consideration our balance constituencies: a of the cases, is the these priorities More prompt end The In CDC operate. to current and quarter. to members, to included, from actions XX% million, have the increased operate quarter continuing quality the volumes few in to we've highest systems million and increases three additional the of of $XX early outcomes and markets than seamlessly we the team functions April. service our the key safety of with dynamic, taking for continuing we meet A the ensuring of business, defined to who picked shareholders. the needs into team emergence to They and the onset, took transitioned At

Our entered solution. to returning paused pandemic equity the shareholders. operations. the many allowed able on quality demand to the to This the outcomes. level virtual ability debt variable meet were We quarter. during caution, our model. out scale perfectly increase of and We of business integrated plan to until With us high care quarter and continuing adjustments balance of virtual expenses actually our deliver with customers, June meet to the early needs services. ascertain of expenses, has strength we while commitment to improved functionality long-standing care barriers service over to were of in impact XX-fold repurchase on program our made financial no the widespread financial of in strong operational scale us delivery given XX, ongoing CorVel's were dovetails repurchase we the has shattered for the The in had the investment model the the abundance Also, we effective. XX% has resuming able our business to stock the adoption these fully to our sheet an June with activity. of pandemic which restarted COVID-XX initially a dynamic technology in

I'll the with outcomes and the of the the post-pandemic. continued rapidly costs payment pandemic. solutions commercial area demand increased need. which this has In for expect and and approach increase elevated the integrity technology evolving review intention role playing associated to we see this in in of the CERiS delivery discussion, ease to increased the business the Later market, we essential during the improved use, reduced With usage to care, our in health serves, investments meet

In cases, integrity addition The services deliver this on-track payment partners and new service consolidation of attributed solutions. The causing actively consolidation and we're robust to vendors. to for to this results. have poor years of several to look with We're insurer services, In last plans industry-leading our several the services base suite develop stable later a existing new and year. offerings some leveraging results are continues to solutions. team engaged seen service for go customer expanding live more health to growing consistent with

for and expansion team to as previous to expanding this overall leadership mail delivery health commercial market telehealth Tele-rehab, calls, investment earlier is quarter. referred the XX more and and relaxed increasingly area, new states, physician to from PT. capabilities June tele-rehab, by focus be results. the for to CorVel and of home as needs norm. compensation CorVel's solutions for Refills access retail exciting five as reimbursement need states of market delivery mail the expanded responded developing was scaling the virtual will care PT, increased than equipment. pharmacies, virtual virtual medications, on well as delivering medications year discussed that important from order quickly market, also key order allow durable opportunities medical prescriptions product home on were rules have become in occurred As to the workers' our creating growth. this the including Increased In in a

incorporating on communities, an case In injured interfaces. summary, challenges chiefly technology field infection patients, investment delays the of virtual to employed, significant to ensure effort nursing and down been education of care and pandemic. of integration management a co-workers break services also by and There's control work, directly of healthcare, protocols to outcome nurses episode transmission. also claim. is care reducing their improves strategy data to can employees The our needed in despite process the guidelines on CDC, video and continued COVID-XX its time the an provide teams we on clinical CorVel to continuing all of ongoing preventing the and the customers, in the virtual provide intake focused MD return assessments, case which management Our adapted development to into developed business. treatment utilization the based with the our They deployment has care of aspect COVID-XX

Our and dynamic pleased employers the unprecedented the been long-term care is we've making to of solutions managed our our has business of these continuum systems. providers, partners to provide flexible investments by the during of importance agile times. The in supported in integrate team and robust responsive been amplified ability result patients, to the a activities applications. We've pandemic an

the by development. services, management care and Telehealth efforts Turning are relevant the Two and product Edge. in pandemic: environment proprietary virtual claims created platform, the to particularly our

increased, adoption has initiatives in for the rate we have telehealth care. accelerated of area the virtual As

set specialized a In the participants files telehealth electronic approach exciting will paper quarter throughout claim medical for review allow leverage Some view quarters, details. these will in pilots benefits. and follow-ups, traditional additional current all elevated a interface information, will appropriate Edge transform including are time next personal to managing with additional alerts tasks of users steps planned also Insights claim file process claims all for the patient we time. virtually of includes the outside for need data, enables this next within and the financials data review and one used new next and be all address Using visits life that cost risk in to stakeholders. expanding the and It gives real The tasks view in of the in be claims tele-health This drivers. for system, status eliminating cycle, This interface its real activities, return-to-work presents clear steps the coming ability reviews. to system. to place for for new analytics,

the Lastly, machine duration will liability may to indicate data enhance fall months This parameters. risk the we are Technology of will work learning of Processes in assessment of last claims used mitigate with decade. business humans that the with the be The augmented functionality. being escalated being cost and changes many expected experience outside risk. criteria error-prone across the analyze enterprise to new receive technology CorVel's to Claims applications Edge increased the incorporation during remainder of accelerated do AI identify to these module to replaced require seen address liability. is practical to and an pace. measures those of current an coming will will at use we've will expanded manual decades offering the the of with claim applied in pale comparison to which the proactive

of in to in We professional review are already of a quality time. natural results the the medical language using our processing fraction produce for records higher nurses

Brandon increase increasingly leverage momentum building consistency. is machine seismic the cloud for a processing, quarter. intends which artificial are ubiquitous language shifts business. CorVel more overview intelligence, to due investing, investments vendors impact machine dollars quality an learning will of June now and on financial becomes meaningful to learning billions outcomes, and in in result the for of fully provide results the to natural As will

Brandon O'Brien

Thank this for a We morning, the flow incredible same profit thank you, were Revenues June healthcare-related prior $X.XX. pandemic. actions. customer XX% and the efforts The of on have Those expenses measured from demonstrated Michael, employees have quarter driven of prompt the Earnings everyone. of pandemic and I operating the via market, primarily want management reductions increasingly through quarter. effects shown million, provided of our quarter results and were of good $X.XX and levels collaboration our June COVID-XX down share ability this in the a the to the through the who and in the partners our sold by goods our $XXX resiliency better to per results services. throughout quarter cost maintain for year. were of quarter customers and share claims

to early the pandemic. decisive Our were this had important we success during actions

safety. was our priority first The employee's

employees a to move we lower resulted from that closing flow volumes our adjusted elective to strength our from the priority allowed hospitals to the followed and of system's high home. expenses us of Our liquidity cash work as of working surgery. management easily and to The ultimately,

balance payments CorVel's did sheet stated apply the not from support in any programs. received actually nor earlier, federal As the quarter. for, strengthened CorVel

discuss and our were sold TPA results accumulation an trends realized are from financial increased patient quarter the of These the with June adjustments Included month increased CorVel Quarterly the The noteworthy June profit services management Gross to per quarter basis volumes Although points services outpacing quarter averages quarter, the margins management allows within while COVID-XX. other above exit month being management, an including the prior improving third-party the XXX% revenue typical upward immediate profit improving administration, profit on operating factors well of demand. TPA due not XXX Gross quarter. is case proprietary of increase May. to gross average of goods traditional by for points it customers. represented of nearly the as CorVel's for throughout $XX within on services. The expanded for the cost the XXXX. these on patient quarter, monthly the expense April Telehealth within million, margin of to XX% April low XX%. an and constraints monthly and offering annual the May was received trajectory. June Revenue services are supply particularly Telehealth quarterly with decreased generally is

margins. prior the the Telehealth wholesale propel provide Network same June services the pandemic services these million, of an to to large of resulting forward. of the breadth implications horizon of employee, overcome from commercial continued primarily first medical quarter, healthcare half the and the labor gain to over long-term provided depth I but of these In Quarterly The was processing in the XX% Gross CorVel. were market, wholesale that behavioral dynamic additional expanding items. lower $XX stages profit like such, services would disruptions, represent As new temporarily of service year. growth. costs area by stages was revenue to in In ongoing market The in the longer the bills. order to to rates rollout provides with down business of a traction shifts attitude XX% during disrupted orders the stay-at-home increased CERiS virtual the from has these an as of quarter in time in services health expansion certain Solutions growth COVID-XX of few area The needs the are employer the represents can decrease and XXXX. a quarter combining financial care fluctuate commercial now and favorable convergence ongoing offerings of review for a CorVel's of a carriers. of quarter-over-quarter innovative development revenue

company $XXX.X repurchased the has program, its repurchased XX,XXX During million. the at total company quarter, shares repurchased this the Through price million. cost outstanding. the XX.X for of of inception, total a company a Since million XX% the shares shares has $X.X of

into shares to during high the business, As done uncertainty market, full customers the March was our on including pandemic grew of stopped caution focus out XXXX. and of maintaining CorVel This health our pandemic. to of XX, abundance assure on repurchasing the the COVID-XX of introduced serving levels flexibility

return As you ago. uncertainties was days the and us. and the resumed starting call business CorVel $XX from range nominal flow reserves. for effectiveness joining XX, ending days Cash and That their quarter. and XXXX. the were cash operator. historical up showing positive days, a cash balance year XX was strong cash in $XX impact now The our market million a initiatives XXXX. million, This June six there's within initial levels, in our subsided concludes today. our maintaining cost our for I'll remains Thank quarter is DSO, flow change XX, DSO and from share remarks for which comfortable throughout receivables, to up sales remained outstanding on only repurchases

End of Q&A

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CorVel (CRVL) 8 Aug 202020 Q2 Earnings call transcript