CorVel Corp (CRVL) 2025 Q2 法說會逐字稿

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.

謝謝你的支持。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 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 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.

Corvel 希望提醒您，這些陳述僅是預測，實際事件或結果可能會有所不同。重大。 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 文件。

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.

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 September 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. Brennan will then provide additional details on the financial results for the quarter, the September quarter, revenues were $224 million, which represents a 15% increase over the $196 million of revenue for the September 2023 quarter earnings per share for the quarter were a $35 a 17% increase from a $15 per share in the same quarter of the prior year.

早安.感謝您與我們一起回顧 Corvel 的 9 月份季度，今天 Corvel 的首席財務官布蘭登·奧布萊恩 (Brandon O'brien Corvel) 與我通話。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。隨後，布倫南將提供有關該季度財務業績的更多詳細信息，9 月份季度的收入為2.24 億美元，比2023 年9 月季度的1.96 億美元收入增長了15%，該季度每股收益為35 美元較去年同期每股 15 美元成長 17%。

Corel's conservative fiscal principles have given us a strong balance sheet with positive cash flow which provides us with financial flexibility. This allows us to prioritize investments in systems, technological innovation and growth initiatives. While returning value to shareholders, Coville has seen significant growth in its network solutions offerings due to increased investments made over the past several years.

Corel 保守的財務原則為我們提供了強大的資產負債表和正現金流，這為我們提供了財務靈活性。這使我們能夠優先考慮對系統、技術創新和成長計劃的投資。在為股東回報價值的同時，由於過去幾年投資的增加，Coville 的網路解決方案產品也取得了顯著成長。

This growth has sparked heightened market interest and contributed to more meaningful expansions in this area of our business.

這種成長激發了市場的興趣，並有助於我們在這一業務領域進行更有意義的擴張。

Alongside this, the continued strong performance of Corvel's patient management segment is further enhancing our financial results.

除此之外，Corvel 患者管理部門持續強勁的業績進一步提高了我們的財務表現。

The quarterly results benefited from revenue generated by several large network solutions programs launched in previous quarters.

該季度業績得益於前幾季推出的多個大型網路解決方案計劃所產生的收入。

As discussed in the June earnings call, the initial cost for staffing and training occurred before these programs went live. The upfront investments allowed for smooth and seamless implementations for new partners and enabled a rapid increase in transaction volumes effectively onboarding new customers sets corvel apart from competitors and we consistently review processes to identify additional opportunities to strengthen our advantage.

正如 6 月的財報電話會議中所討論的，人員配置和培訓的初始成本發生在這些計劃上線之前。前期投資使新合作夥伴能夠順利、無縫地實施，並實現交易量的快速增加，有效地吸引新客戶，使我們在競爭對手中脫穎而出，我們不斷審查流程，以確定加強我們優勢的額外機會。

In addition to successfully winning and implementing new customers, we deeply value maintaining our partnerships and are thankful to have companies we have done business with for multiple decades.

除了成功贏得和拓展新客戶之外，我們還非常重視維持我們的合作關係，並感謝與我們有數十年業務往來的公司。

To that end, we recently hosted our annual partnership meeting with many strategic clients. The meeting provided us an opportunity to showcase recent program enhancements, review, ongoing initiatives and outline our vision for products and services over the next few years.

為此，我們最近與許多策略客戶舉辦了年度合作夥伴會議。這次會議為我們提供了展示最近的計劃改進、審查、正在進行的舉措的機會，並概述了我們未來幾年對產品和服務的願景。

During the meeting, we received valuable feedback that affirm the current key areas of focus, specifically, those that give us the opportunity to have the greatest impact on our partners' programs. We are thankful for the participation and active engagement.

在會議期間，我們收到了寶貴的回饋，這些回饋肯定了當前的重點關注領域，特別是那些使我們有機會對合作夥伴的計劃產生最大影響的領域。我們感謝您的參與和積極參與。

Additionally, the team attended the National workers' Compensation Disability Conference where we hosted meetings with current partners, future prospects and brokers those conversations, especially with brokers validated our position in the market and the drivers for our increase in market share attributes cited were the engagement results achieved transparency and communication and technological innovation. We are honored to have the reputation we fostered in the industry and work tirelessly to protect it in health care. The trend towards vertical integration continues to reshape the workers' compensation industry.

此外，該團隊還參加了全國工人賠償殘疾會議，在會議中我們與當前合作夥伴、未來的潛在客戶和經紀人舉行了會議，這些對話，特別是與經紀人的對話，驗證了我們在市場中的地位，而我們引用的市場份額屬性增加的驅動因素是參與度結果實現了透明度、溝通和技術創新。我們很榮幸能夠擁有在業界建立的聲譽，並不懈地努力保護醫療保健領域的聲譽。垂直整合的趨勢持續重塑工人賠償產業。

The consolidation of health care organizations controlling multiple stages of the patient care process have been driven by the expansion of large health care systems and the decline of privately owned medical facilities and practices.

大型醫療保健系統的擴張以及私人醫療設施和實踐的衰落推動了控制患者護理過程多個階段的醫療保健組織的整合。

The number of physicians practicing at hospital owned sites increased by almost 15% over the last 10 years. On paper, this integration makes sense for health care if physicians work directly for hospitals, there should be improved efficiency. A higher quality of care, increased patient satisfaction and enhanced visibility and consultation amongst all parties.

在過去 10 年裡，在醫院擁有的場所執業的醫生數量增加了近 15%。從理論上講，這種整合對於醫療保健來說是有意義的，如果醫生直接為醫院工作，效率應該會提高。更高的護理品質、更高的病人滿意度以及各方之間的可見性和諮詢。

However, individual injured workers saw a significantly higher number of providers leading to some frustration in the increased number of visits which grew by 11%.

然而，個別受傷工人看到的醫療服務提供者數量顯著增加，導致就診次數增加了 11%，這導致了一些沮喪。

The vertical integrations have resulted in an increase in advanced diagnostic tests, greater specialty engagement and higher overall treatment utilization which increase the overall cost of treatment by more than 10% with negligible impact to the outcomes achieved to address these increases in visits and costs. Due to vertical integration. Corvel utilizes an extensive network of health care providers to ensure that our partners have access to high quality medical care supported by state certified network programs such as MCOS, MPNS and HCMS.

垂直整合導致先進診斷測試的增加、專業參與度的提高和整體治療利用率的提高，從而使總體治療成本增加了10% 以上，而對解決就診次數和成本增加所取得的結果的影響可以忽略不計。由於垂直整合。Corvel 利用廣泛的醫療保健提供者網絡，確保我們的合作夥伴能夠獲得由 MCOS、MPNS 和 HCMS 等國家認證網絡計劃支持的高品質醫療保健。

These certified programs enable local engagement and expertise complemented by comprehensive case management and utilization programs designed to ensure appropriate effective treatment, optimal recovery outcomes and savings.

這些經過認證的計劃使當地參與和專業知識得到補充，並輔以全面的病例管理和利用計劃，旨在確保適當有效的治療、最佳的康復結果和節省。

We are also leveraging technology including A I powered algorithms to identify and address claims that have high risk factors as well as advanced analytics to increase feedback too and transparency with our network providers.

我們還利用包括人工智慧驅動的演算法在內的技術來識別和解決具有高風險因素的索賠，並利用先進的分析來增加我們網路供應商的回饋和透明度。

Pharmacy pricing remains a hot topic with federal and state regulatory changes focusing on drug cost transparency. Currently, 49 of 50 states have proposed rules surrounding pharmaceutical costs and health care. And the FTC has an open investigation into PBMs centered around clawbacks on unaffiliated pharmacies, steerage to PBM owned pharmacies and the complexity of pharmacy reimbursements and rebates as such. Corvel is committed to offering flexible transparent pricing models to meet industry needs concerning the topic of rebates which has gained increased attention. Corvel does not accept rebates as a substitute for thorough and aggressive pricing negotiations.

藥品定價仍然是一個熱門話題，聯邦和州監管變化的重點是藥品成本透明度。目前，50 個州中有 49 個州提出了有關藥物成本和醫療保健的規則。FTC 對 PBM 進行了公開調查，調查重點是對非附屬藥房的追回、對 PBM 擁有的藥房的指導以及藥房報銷和回扣的複雜性。Corvel致力於提供靈活透明的定價模式，以滿足日益受到關注的返利話題的行業需求。Corvel 不接受回扣來取代徹底和積極的定價談判。

The integration with our bill review platform allows us to leverage state fee schedules, formularies and acquisition cost standards which when paired with our high touch model allows us to provide employers with a comprehensive approach to managing pharmacy benefits.

與我們的帳單審核平台的整合使我們能夠利用州費用表、處方集和採購成本標準，與我們的高接觸模型相結合，使我們能夠為雇主提供管理藥品福利的全面方法。

Specifically, Corvel's cost transparency leads to meaningful cost savings, improved health outcomes for injured workers, reduced administrative burdens and enhance negotiation capabilities. Corvel's approach provides a strong return on investment by optimizing medication use which prevents costly complications and also streamlines processes inflated pharmaceutical costs are one of the major causes for the medical inflation trend in the US which is rising sharply and expected to continue well into 2025 for 2024. The medical cost trend has been revised upwards due to increased utilization of services and prescription drugs, particularly new therapies like GLP one drugs used for diabetes and weight management.

具體來說，Corvel 的成本透明度可以顯著節省成本，改善受傷工人的健康狀況，減輕行政負擔並增強談判能力。Corvel 的方法透過優化藥物使用提供了豐厚的投資回報，從而防止昂貴的併發症，並簡化流程。由於服務和處方藥的使用增加，特別是用於糖尿病和體重管理的 GLP one 藥物等新療法，醫療成本趨勢已向上修正。

At Corvel, we advocate for the use of generic drugs when available to reduce costs. However, inflationary pressures from operational expenses, increased demand for behavioral health services and postponed care due to the pandemic are also significant factors. Driving the increases in health care costs.

在 Corvel，我們提倡使用仿製藥，以降低成本。然而，營運費用帶來的通膨壓力、行為健康服務需求的增加以及大流行導致的護理延遲也是重要因素。推動醫療保健費用的增加。

Our solutions are geared towards driving the optimal outcomes for injured workers while mitigating rising costs in the health market. The demand for prepaid solutions remains steady to ensure claims are paid accurately. The first time ceris focused on the commercial health market utilizes extensive experience in the prepaid space to expand prepaid solutions.

我們的解決方案旨在為受傷工人提供最佳結果，同時緩解醫療市場成本上升。對預付費解決方案的需求保持穩定，以確保準確支付索賠。ceris 首次專注於商業健康市場，利用在預付費領域的豐富經驗來擴展預付費解決方案。

With investments in A I and machine learning ceris delivers faster medical cost savings through tailored solutions for our partners.

透過對人工智慧和機器學習的投資，ceris 透過為我們的合作夥伴量身定制的解決方案更快地節省醫療成本。

The commercial health strategy focuses on differentiating our services through deep industry expertise, comprehensive product offerings and consistent proven results delivered.

商業健康策略的重點是透過深厚的行業專業知識、全面的產品供應和一致的、經過驗證的成果來使我們的服務脫穎而出。

As new products mature cost structures are optimized and operational efficiencies enhanced most recently with improvements to the DRG product. These include advanced machine learning and postpay and the launch of prepaid DRG.

隨著新產品的成熟，成本結構得到最佳化，營運效率最近隨著 DRG 產品的改進而提高。其中包括先進的機器學習和後付費以及預付費 DRG 的推出。

The ceris is a trusted partner for payers consistently delivering incremental savings and industry leading Roi while remaining independent of M&A activity in the commercial space where volume based growth often results in price compression. We mitigate this pressure through A I driven efficiencies that streamline workflows and reduce manual processes.

ceris 是付款人值得信賴的合作夥伴，始終如一地提供增量節省和行業領先的投資回報率，同時保持獨立於商業領域的併購活動，在商業領域，基於數量的增長通常會導致價格壓縮。我們透過人工智慧驅動的效率來減輕這種壓力，從而簡化工作流程並減少手動流程。

Ceris is also expanding access to our solutions by partnering with claim technology platforms allowing payers to integrate ceris offerings through a single integration point. This approach increases market penetration and consolidates solutions on one platform.

Ceris 還透過與索賠技術平台合作，擴大對我們解決方案的訪問範圍，允許付款人透過單一整合點整合 ceris 產品。這一方法提高了市場滲透率，並將解決方案整合到一個平台上。

Brandon will now provide additional texture on the financial results for the September quarter.

布蘭登現在將提供有關九月季度財務業績的更多資訊。

Thank you, Michael and good morning. Everyone. As Michael indicated at the top of the call revenues for the September quarter were $224 million. 15% over the $196 million of revenue for the September 2023 quarter earnings per share for the quarter were a $35 increasing 17% from the $15 per share. In the same quarter of the prior year.

謝謝你，邁克爾，早安。每個人。正如邁克爾在電話會議頂部指出的那樣，9 月季度的收入為 2.24 億美元。較 2023 年 9 月季度的 1.96 億美元營收成長 15%，該季度每股收益為 35 美元，較每股 15 美元成長 17%。去年同季。

The revenue for patient management including third party administration, TPA services and traditional case management for the September quarter was $147 million.

9 月季度的病患管理收入（包括第三方管理、TPA 服務和傳統病例管理）為 1.47 億美元。

An annual increase of 13% gross profit increased by 8% from the September quarter of 2023.

毛利年增13%，較2023年9月季成長8%。

Patient management services primarily led by our TP A business grew from a balanced mix of new and existing customers.

主要由我們的 TP A 業務主導的患者管理服務是從新客戶和現有客戶的平衡組合中發展而來的。

Our enterprise comp product and service offering has a strong and growing reputation in the market.

我們的企業補償產品和服務在市場上擁有強大且不斷增長的聲譽。

Consistent intentional investment in our patient management business includes a growing suite of proprietary A I and process automation tools for our trained professional staff.

我們對患者管理業務的持續有意投資包括為我們訓練有素的專業人員提供一套不斷增長的專有人工智慧和流程自動化工具。

These tools are facilitating differentiated and meaningful positive outcomes for our customers.

這些工具正在為我們的客戶帶來差異化且有意義的正面成果。

The revenue for network solutions sold in the wholesale market for the June quarter was $77 million.

六月季度批發市場銷售的網路解決方案收入為 7,700 萬美元。

Up 17% from the same quarter of the prior year.

較去年同期成長 17%。

Gross profit in the wholesale business was up 18% from the September quarter of 2023 while the serious business continued on its healthy growth trajectory. We were also pleased to see our new P&C wholesale business being onboarded resulting in significant revenue growth. Our investments in this area are resonating and placing us in a strong competitive position in the market that is seeing a consolidation of P&C wholesale vendors.

批發業務的毛利較 2023 年第三季成長了 18%，而嚴肅業務則繼續保持健康的成長軌跡。我們也很高興看到我們新的財產與意外傷害批發業務的啟動，帶來了收入的顯著增長。我們在這一領域的投資引起了共鳴，使我們在財產與意外險批發供應商不斷整合的市場中處於強大的競爭地位。

I would now like to review a few additional financial items during the quarter. The company repurchased 32,123 shares at a total cost of $9.6 million from inception to date, the company has repurchased 38.1 million shares for a cost of $813 million.

我現在想回顧一下本季的一些其他財務項目。該公司從成立至今共回購了32,123股股票，總成本為960萬美元，該公司已回購3,810萬股股票，成本為8.13億美元。

Through this program, the company has repurchased 69% of the total shares outstanding.

透過該計劃，公司回購了已發行股份總數的69%。

The repurchasing of shares continues to be funded via the company's strong operating cash flow.

股票回購繼續透過公司強勁的營運現金流提供資金。

Our DSO as in day sales outstanding of receivables was 42 days of one day from a year ago.

我們的應收帳款日銷售額 DSO 與一年前相比為 42 天。

The quarter ending cash balance was $138 million Corvel's drawn and debt free balance sheet generates improved earnings. In contrast to many others in the segment, facing increasing debt loads and associated interest rate cost headwinds.

季度末現金餘額為 1.38 億美元，Corvel 提取的無債務資產負債表帶來了改善的收益。與該領域的許多其他公司相比，該公司面臨著不斷增加的債務負擔和相關的利率成本阻力。

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

我們今天的演講到此結束。感謝您加入我們。我現在將電話回撥給接線生。

This concludes today's webcast. You may disconnect your lines at this time.

今天的網路廣播到此結束。此時您可以斷開線路。