CorVel Corp (CRVL) 2025 Q1 法說會逐字稿

Thank you for standing by, and 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.

感謝您的耐心等待，歡迎收看 CorVel Corporation 季度收益發佈網路廣播。在本網路廣播期間，CorVel Corporation 可能會對本公司未來事件或未來財務表現做出預測或其他前瞻性陳述。Corvel 希望提醒您，這些陳述僅是預測，實際事件或結果可能存在重大差異。

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 files 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.

Corvel 請您參考該公司不時向美國證券交易委員會提交的文件，特別是該公司最近一個財年和季度的最後一份 10-K 和 10-Q 表格文件。這些文件包含並確定了可能導致實際結果與我們的預測或前瞻性陳述中包含的結果有重大差異的重要因素。

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

現在我想將其交給總裁兼執行長 Michael Combs。

Good morning. Thank you for joining us to review CorVel's June quarter. Brandon O'Brien, CorVel's Chief Financial Officer, is on the call with me today. Today I will review business performance, the current environment and market trends and progress on new product and service offerings. Brandon will then provide additional details on the financial results for the quarter, the June quarter revenues were $212 million, which represents an 11% increase over the $190 million of revenue for the June 2023 quarter. Earnings per share for the quarter were $1.25, a 9% increase from $1.14 per share in the same quarter of the prior year. We experienced higher health care costs for our Employee Benefits Plan in the June quarter.

早安.感謝您與我們一起回顧 CorVel 的六月季度。CorVel 財務長 Brandon O'Brien 今天與我通話。今天我將回顧業務績效、當前環境和市場趨勢以及新產品和服務的進展。Brandon 隨後將提供有關該季度財務業績的更多詳細信息，6 月季度的收入為 2.12 億美元，比 2023 年 6 月季度的 1.9 億美元收入增長了 11%。本季每股收益為 1.25 美元，比去年同期的每股收益 1.14 美元增長 9%。在六月季度，我們的員工福利計劃的醫療保健費用較高。

Since CorVel's self-insured cost variations are risks that we acknowledge and are consistent with our financial principles. Additionally, the results for the quarter were impacted by an increased number of legal settlements and the upfront implementation staffing costs for a large new account. We are currently reviewing all operations closely and have initiated several adjustments in costs and the monetization of the services we provide. The higher general and administrative expenses were offset by strong business fundamentals resulting in the increase in EPS for the quarter. In the quarter, we had positive new bookings, including a new partnership with a large national retailer, adding to the list of noteworthy customers we've signed in recent years, our focus is on building on the sales momentum from last year and the first half of calendar 2024.

由於 CorVel 的自我保險成本變化是我們承認的風險，並且符合我們的財務原則。此外，本季的業績也受到法律和解數量增加以及大型新帳戶的前期實施人員成本的影響。我們目前正在仔細審查所有運營，並對我們提供的服務的成本和貨幣化進行了多次調整。強勁的業務基本面抵銷了較高的一般和管理費用，導致本季每股收益增加。在本季度，我們取得了積極的新預訂，包括與一家大型全國性零售商建立了新的合作夥伴關係，增加了我們近年來簽署的值得注意的客戶名單，我們的重點是建立去年和第一季度的銷售動能。

The industry's positive response to the ongoing investments in technology, the engagement of our team, as well as the results for delivering to our partners is validating. We are happy to share that both of our largest recently signed accounts have been successfully brought onboard. The first account became active in early May, the second and early July. These accounts are expected to have a positive impact on our financial results in the back half of the year and beyond.

業界對持續的技術投資、我們團隊的參與以及向我們的合作夥伴交付的成果的積極回應正在得到驗證。我們很高興地告訴大家，我們最近簽署的兩個最大的帳戶已成功加入。第一個帳戶於五月初、第二個帳戶和七月初開始活躍。這些帳戶預計將對我們今年下半年及以後的財務業績產生正面影響。

The feedback we've received from our partners on the implementation processes, affirming the quality of engagement in combination with the Malley ability of CorVel's systems gives us a level of agility that is unique in the industry. This partner's willingness to act as references for us serves as a testament to the results of the process. In addition, the extensive system enhancements we've implemented during that process benefit the new as well as existing partners and strengthen our suite of services, increasing CorVel's value proposition for the market.

我們從合作夥伴那裡收到的關於實施流程的回饋，確認了參與品質與 CorVel 系統的 Malley 能力相結合，為我們提供了行業中獨一無二的敏捷性。該合作夥伴願意為我們提供參考，這證明了該過程的結果。此外，我們在此過程中實施的廣泛系統增強功能使新合作夥伴和現有合作夥伴受益，並增強了我們的服務套件，從而提高了 CorVel 的市場價值主張。

Transitioning now to market insights in the P&C market, pharmacy pricing and costs are coming to the forefront once again, although NCCI. reports a decrease in claims involving prescriptions. There was an increase in the cost of pharmaceuticals per claim.

現在轉向 P&C 市場的市場洞察，儘管 NCCI 表示，藥品定價和成本再次成為最重要的議題。報告稱涉及處方藥的索賠有所減少。每項索賠的藥品成本有所增加。

The drivers include high cost topical medications, increased use of out of network dispensing channels and a rise in the dispensing of high cost drugs in an effort to increase drug cost transparency, 49 of 50 states have proposed rules surrounding pharmaceutical costs and health care at CorVel our pharmacy solution promotes a workers' compensation centered formulary that limits the days supply of opioids and encourages the use of generics and the conversion to lower-cost drug alternatives. We also offer different pricing models to meet customers' needs, all of which integrate pharmacy cost transparency with a high-touch model. This strategy leads to significant cost savings, improved health outcomes for injured workers reduced administrative burdens with streamlined processes and enhanced negotiation capabilities, which ultimately provides a strong return on investment for our partners.

驅動因素包括高成本局部​​藥物、增加使用網絡外配藥管道以及增加高成本藥物配藥以提高藥物成本透明度，50 個州中有 49 個州在 CorVel 提出了有關藥品成本和醫療保健的規則我們的藥房解決方案提倡以工人補償為中心的處方集，限制阿片類藥物的日供應量，並鼓勵使用仿製藥和轉向成本較低的藥物替代品。我們還提供不同的定價模型來滿足客戶的需求，所有這些模型都將藥品成本透明度與高接觸模型相結合。這項策略可以顯著節省成本，改善受傷工人的健康狀況，透過簡化流程和增強談判能力減輕行政負擔，最終為我們的合作夥伴帶來豐厚的投資回報。

Payment Integrity market continues to be dynamic with payers seeking options to reduce cost of care dollars services engagement and proven results drove an expanded book of business with multiple large payers during the quarter to eliminate administrative costs and provider friction. There was a shift in the market from post-pay also referred to as pay and chase to the prepaid retail model.

支付誠信市場繼續充滿活力，付款人尋求降低護理費用成本的選擇，服務參與度和經過驗證的結果推動了本季度與多個大型付款人的業務擴大，以消除管理成本和提供者摩擦。市場從後付費（也稱為付費和追逐）轉向預付費零售模式。

As a result, service will be launching prepaid DRG. in the current quarter. The new offering allows us to provide an additional service to the market and builds on services decades of prepaid expertise. This not only provides a better experience for payers and providers, but it also shortens the revenue recognition cycle for Cirrus.

因此，服務將推出預付費 DRG。在當前季度。新產品使我們能夠向市場提供額外的服務，並建立在數十年的預付費專業知識的基礎上。這不僅為付款人和提供者提供了更好的體驗，還縮短了 Cirrus 的收入確認週期。

Furthermore, this quarter, Cirrus deployed product and technology enhancements beyond those focused on the shift to prepay strategic efforts are balanced between capital investment to enhance our service offerings and areas and improve overall efficiency and cost management to drive incremental improvements in profitability in all markets.

此外，本季度，Cirrus 還部署了產品和技術增強功能，超越了專注於向預付費轉變的策略性努力，在增強我們的服務產品和領域的資本投資與提高整體效率和成本管理之間取得了平衡，以推動所有市場獲利能力的逐步提高。

Mental health remains a hot topic and as such, supporting Mental Health is a focus for many organizations. Given that behavioral health affects both mental and physical health, we need to be equipped with the best resources in behavioral medicine, which includes aspects of psychology, occupational therapy, preventative medicine and bio feedback.

心理健康仍然是一個熱門話題，因此，支持心理健康是許多組織的重點。鑑於行為健康影響心理和身體健康，我們需要配備最佳的行為醫學資源，包括心理學、職業治療、預防醫學和生物回饋等方面。

At CorVel, our care advocates are trained to identify mental health issues associated with work injuries. There is an increased emphasis on identifying mental health opportunities in the critical first, 30 days of a claim. Once identified, we work with employers and treating physicians to provide education and holistic treatment plans to promote mental well-being during recovery and prevent delays in healing and return to work.

在 CorVel，我們的護理倡導者接受過培訓，可以識別與工傷相關的心理健康問題。人們越來越重視在索賠後關鍵的前 30 天內識別心理健康機會。一旦確定，我們將與雇主和主治醫生合作，提供教育和整體治療計劃，以促進康復期間的心理健康，並防止延誤康復和重返工作崗位。

We are sharply focused on efforts to drive growth and profitability, many of which are based on artificial intelligence algorithms and generative. Ai are being used to drive workflows and automate manual objective tasks, which streamline work and allow our team members to focus on higher value activities such as interacting with injured workers.

我們高度關注推動成長和獲利的努力，其中許多都是基於人工智慧演算法和生成技術。人工智慧被用來驅動工作流程並自動執行手動目標任務，從而簡化工作並允許我們的團隊成員專注於更高價值的活動，例如與受傷工人互動。

Artificial intelligence is also being used in medical imaging drug history and predictive analysis for early illness detection and a personalized treatment plan. Chat bots and virtual assistants are being leveraged to interact with injured workers during their health journey, creating a personalized approach to health care and more efficient use of medical resources in the quarter we introduced an enhanced communication platform, which facilitates two-way SMS messaging between claims staff and injured workers directly from our proprietary claims system currency.

人工智慧也被用於醫學影像藥物歷史和預測分析，以實現早期疾病檢測和個人化治療計劃。聊天機器人和虛擬助理被用來與受傷工人在健康之旅中進行互動，創建個人化的醫療保健方法並更有效地利用醫療資源。受傷工人之間的雙向簡訊發送。

While SMS messaging is not new, having the functionality integrated within currency yields. A level of efficiency that is unique in the industry for this functionality has greatly improved communication with injured workers as texting has been increasingly embraced by claimants to further strengthen communication with claims stakeholders. We have integrated the capability to make calls directly from the currency platform to injured workers as the model runs through our claims system it utilizes the advanced security features that are already embedded in the system and prevent unintended communication, thus reducing patient security risks.

雖然簡訊並不是什麼新鮮事，但將其功能整合到貨幣收益中。此功能的效率水平在行業中是獨一無二的，極大地改善了與受傷工人的溝通，因為索賠人越來越多地採用短信來進一步加強與索賠利益相關者的溝通。我們整合了直接從貨幣平台向受傷工人撥打電話的功能，因為該模型在我們的理賠系統中運行，它利用了系統中已嵌入的高級安全功能，可防止意外通信，從而降低患者安全風險。

These enhancements are fostering better collaboration and have improved the overall claims, professional and injured worker experience with clinical bills. Ai enhanced reviews are helping our users focused on reviewing procedures, identifying anomalies and consistently documenting activity. This ensures that CorVel achieves optimal cost containment through the augmented processing of medical bills.

這些增強功能促進了更好的協作，並改善了整體索賠、專業和受傷工人的臨床帳單體驗。人工智慧增強審查正在幫助我們的用戶專注於審查程式、識別異常並持續記錄活動。這確保 CorVel 透過增強醫療帳單處理實現最佳成本控制。

On the analytics front, coding CIQ. has released new dashboards to visualize the claims journey. The claims journey dashboard displays interactive metrics for claim characteristics, including items like nature and cause of injury, severity and outcome, legal and cost value metrics, allowing partners to easily analyze key aspects of their program. We have a dedicated team focused on executing a robust queue of enhancements for our systems. We look forward to the market impact of the continued evolution of our systems. Brenda will now provide additional texture on the financial results for the June quarter.

在分析方面，編碼 CIQ。發布了新的儀表板來視覺化索賠過程。索賠旅程儀表板顯示索賠特徵的互動式指標，包括傷害性質和原因、嚴重程度和結果、法律和成本價值指標等項目，使合作夥伴能夠輕鬆分析其計劃的關鍵方面。我們擁有一支專門的團隊，專注於為我們的系統執行一系列強大的增強功能。我們期待我們系統的持續發展對市場產生影響。布倫達現在將提供六月季度財務業績的更多細節。

Thank you, Michael, and good morning, everyone. As Michael indicated at the top of the call, revenues for the June quarter were $212 million, 11% over the $190 million revenue for the June 2023 quarter. Earnings per share for the quarter were $1.25, increasing 9% from $1.14 per share in the same quarter of the prior year. Revenue for patient management, including third-party administration, TPA services and traditional case management for the June quarter was $139 million, an annual increase of 9%.

謝謝你，邁克爾，大家早安。正如 Michael 在電話會議開頭指出的那樣，6 月季度的收入為 2.12 億美元，比 2023 年 6 月季度的 1.9 億美元收入增長了 11%。本季每股收益為 1.25 美元，較上年同期的每股 1.14 美元增長 9%。第二季病患管理（包括第三方管理、TPA 服務和傳統個案管理）營收為 1.39 億美元，年增率為 9%。

Gross profit increased by 7% from the June quarter of 2023 patient management services, primarily led by revenues from our TPA customers, has grown organically at over 10% per annum for the past 15 years. Our partner customers have welcomed our continual investment in product development and innovative features resulting in quantifiable positive outcomes benefiting both their organization and their employees.

患者管理服務的毛利較 2023 年 6 月季度增長了 7%，主要由我們的 TPA 客戶的收入帶動，在過去 15 年中每年有機增長超過 10%。我們的合作夥伴客戶歡迎我們在產品開發和創新功能方面的持續投資，從而產生可量化的正面成果，使他們的組織和員工受益。

Revenue for network solutions sold in the wholesale market for the June quarter was $73 million, up 16% from the same quarter of the prior year. Gross profit in the wholesale business was up 24% from the June quarter of 2023. Cirrus part of Network Solutions has driven growth by expanding services and scale with both our carrier and payer partners. What improvement involves expanding the disallowed items, increasing review volume Additionally, the maturation of services for clients onboarded in the March and early June quarters drove the improvement in results.

6月季度批發市場銷售的網路解決方案營收為7,300萬美元，較去年同期成長16%。批發業務的毛利較 2023 年 6 月季度成長 24%。Cirrus 是網路解決方案的一部分，透過與我們的營運商和付款合作夥伴擴大服務和規模，推動了成長。哪些改進涉及擴大不允許的項目、增加審核量此外，3 月和 6 月初季度的客戶服務的成熟推動了業績的改善。

I would now like to review a few additional financial items during the quarter, the Company repurchased 38,138 shares at a total cost of $9.4 million from inception to date, the Company has repurchased $38 million shares for a cost of $803 million. Through this program, the Company has repurchased 69% of the total shares outstanding. The repurchasing of shares continues to be funded via the company's strong operating cash flow. Our DSO as and days sales outstanding of receivables was 42 days, up two days from a year ago quarter ending cash balance was $132 million. Corvel strong and debt-free balance sheet generates improved earnings in contrast to many others in the segment facing increasing debt loads with associated interest rate cost headwind.

我現在想回顧本季的一些額外財務項目，公司從成立至今以 940 萬美元的總成本回購了 38,138 股股票，公司以 8.03 億美元的成本回購了 3800 萬美元的股票。透過該計劃，公司回購了已發行股份總數的69%。股票回購繼續透過公司強勁的營運現金流提供資金。我們的 DSO 應收帳款應收帳款銷售天數為 42 天，比去年同期季度末現金餘額 1.32 億美元增加了兩天。與該領域許多其他面臨債務負擔增加和相關利率成本逆風的其他公司相比，Corvel 強勁且無債務的資產負債表帶來了更好的收益。

That concludes our remarks for today. Thank you for joining us. I'll now return the call to the operator concludes today's webcast.

我們今天的演講到此結束。感謝您加入我們。我現在將給接線員回電，今天的網路廣播就這樣結束了。

You may disconnect your lines at this time.

此時您可以斷開線路。