0:04 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 with 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.

00:27 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 in 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. 00:49 I would now like to turn it over to Michael Combs, President and Chief Executive Officer..

expansion of prepay payment integrity solutions; enhancements to our edge interface to support tighter integration with each of our constituencies in health care; optimization of advocacy 24/7 virtual care interfaces to improve the overall patient experience; the application of artificial intelligence and machine learning to augment our professional staff; and increased system automation across enterprise applications to increase quality, consistency and to elevate the work of those interacting with our business applications.

11:18 Brandon will now provide an overview and additional texture on the December quarter’s financial results.

Brandon?.

11:27 Thank you, Michael and good morning everyone. Revenues for the December quarter were a record $164.5 million, up 16% from the same quarter of the prior year. Earnings per share were $0.76, an increase of 21% from the $0.63 per share in the same quarter of the prior year.

Growth in the new customer sales during the past year, plus favorable mix shift of products and services sold led to the revenue and profit growth. 11:56 Total new sales were robust throughout 2021, exceeding past performance. The calendar year trends for 2021 new sales were 20% higher than calendar year 2020 and more than double those of 2019.

Although awarded, they take time to implement and to achieve their ultimate run rate, providing positive tailwinds into future quarter results. 12:22 Revenue for patient management, including third-party administration, TPA services and traditional case management for the December quarter, was a record $108 million, an annual increase of 12%.

Gross profit decreased 2% from the December quarter of 2020. The calendar was unusually difficult in the quarter, pulling forward some payroll expenses, which would typically hit the March quarter. The calendar effect more specifically impacted our patient management profits as a higher percentage of the total costs relate to payroll.

Therefore, we expect the March quarter to more accurately reflect the positive trends in the business segment. 13:04 As part of patient management, our third-party administration services hit record levels, leveraging increased market recognition and engagement of CorVel's enterprise comp.

CorVel has moved up into the grouping of the top 1/3 largest third-party administrators when measured by the workers' compensation business. Enterprise comp relationship growth came from a healthy mix of new clients in addition to the expansion of existing clients.

13:32 Beneficial claims outcomes and experience from our enterprise comp program are positively felt by existing customers while creating positive industry buzz. Revenue for Network Solutions sold in the wholesale market for the quarter was $57 million, up 26% from the same quarter of the prior year.

Gross profit in the wholesale business was up 30% from the December quarter of 2020. Gross margins increased due to a higher percentage of health market business within Network Solutions. 14:05 CorVel is executing on our strategy of expanding our penetration in the health markets.

The total addressable markets in health as well as the government segments represented primarily by Medicare and Medicaid are all many multiples the size of the company's current primary market in workers' compensation.

The company is leveraging its sound base in payment integrity services and is introducing new services in 2 other segments, complementary to its current service segment. 14:37 I would now like to review a few additional financial items. During the quarter, the company repurchased 135,734 shares at a total cost of $25.5 million.

From inception to date, the company has repurchased 37.1 million shares for a total cost of $630 million. Through this program, the company has repurchased 68% of the total shares outstanding. The repurchasing of shares continues to be funded via the company's strong operating cash flow. 15:13 The quarter ending cash balance was $116 million.

The company's liquidity and strong balance sheet continue to reflect the healthy conditions in our business. The investments we've made to our process and software has also included improvements to our revenue cycle management and operating effectiveness. Our DSO, days sales outstanding, and receivables was 38 days, down 3 days from a year ago.

This represents the company's best quarterly DSO measurement during the last 10 years. This improvement in our DSO is evidence of the steady improvements both we and our client partners are making in the integration of our services in their business process and the additional value stemming from the conditional digital evolution in managed care.

16:02 That concludes our remarks for today. Thank you for joining us. I'll now return the call to our operator..

16:11 This concludes today's webcast, you may disconnect your lines at this time..