CorVel Corporation (NASDAQ:CRVL) Q2 2022 Results Conference Call November 1, 2022 11:30 AM ET

Company Participants

Michael Combs - President and Chief Executive Officer

Brandon O'Brien - Chief Financial Officer

Conference Call Participants

Operator

Thank you for standing by. 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 or the future financial performances of the company. CorVel wishes to caution you that these statements are only predictions and that actual events or results may differ materially. CorVel refers you to the documents that company files from time to time with the Securities and Exchange Commission, specifically the company's last Form 10-K and 10-Q files for the most recent fiscal year and quarter. These documents contain and identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.

I would now like to turn the call over Mr. Michael Combs, Chief Executive Officer and President.

Michael Combs

Good morning. Thank you for joining us to review CorVel's September quarter. Brandon O'Brien, CorVel's Chief Financial Officer is on the call with me today. I will be reviewing business performance, the current environment, market trends and progress achieved with systems development. Brandon will then provide additional details on the financial results for the September quarter.

The September quarter revenues were $177 million, 12% over the $158 million of revenue for the September 2021 quarter. Earnings per share for the quarter were $0.83, decreasing 5.6% from $0.88 per share in the same quarter of the prior year. In prior earnings discussions, we've referred to the growing importance of CERiS, which serves the commercial healthcare market on our financial results. We are pleased with the strength of existing and developing partnerships and the CERiS revenue trend line. However, fluctuations in transaction volume which requires a collaborative effort with providers and payers occurred early in the September quarter. EPS for the quarter was impacted by this temporary impedance in CERiS transaction flow, increased investment in CERiS and elevated staffing levels in our property and casualty business.

I'll now provide additional texture on the latter two of these items impacting earnings. As CERiS has gained traction with the current payment integrity suite of services, we've increased investment in the CERiS team, the SaaS platform, research and development and the implementation of new services. As a result, we're actively laying the foundation for additional meaningful growth in 2023 and beyond.