CEO Rone Baldwin Provides Second Quarter Business Update
With a view towards keeping you updated on important developments at One Call, I am sharing an early look at our second quarter financial performance, as well as providing an update on our progress with key strategic initiatives.
Based on our preliminary review of key financial metrics for the second quarter of 2019, which ended June 30, revenue was in line sequentially with the first quarter of 2019, while a key profitability metric showed slight improvement versus the prior-year period and significant improvement compared to the first quarter of 2019 as noted below.
- Earnings (defined as Adjusted EBITDA, or earnings before interest taxes depreciation and amortization) were $44.4 million in the second quarter of 2019, up $9.0 million, or 25.5%, from the first quarter of 2019, and up 0.6% from the $44.2 million reported for the prior-year period.
- Revenue of $379.9 million in the second quarter of 2019 was up slightly compared to the $378.7 million reported for the first quarter of 2019, and down 5.3% compared to the $401.2 million reported in the prior-year period.
- One Call is in full compliance with all debt covenants for the second quarter of 2019 and expects to be compliant for the remainder of 2019, based on the full-year guidance that it intends to provide to investors in its second quarter conference call.
I am also happy to update you on a number of key strategic initiatives designed to enhance the patient, provider and customer experience:
- Migration of Customers to One Call’s proprietary, injured worker-centric technology platform, Polaris® – One Call has migrated 64% of its top 50 customers to Polaris, with 6 customers migrated in the last three weeks of the second quarter. In satisfaction surveys, adjusters using Polaris reported satisfaction ratings of 4.7 out of 5 stars, consistent with the ratings reported by the company in late June.
- Customer relationships – One Call continues to add new customers and expand existing customer relationships, demonstrating confidence in the company and its partnerships.
- Transition of One Call’s service delivery model to further enhance the customer service experience – We have migrated 184 customers to our new customer-focused service delivery model as of the end of the second quarter, and will continue to migrate additional customers throughout 2019.
This new model provides an improved service experience for customers and opportunities for advancement for many of One Call’s service professionals. We also rolled out enhanced training and development for all associates.
- Further evolution of injured worker-centric solutions – We continue to develop innovative solutions to improve the injured worker experience. This year, we introduced the One Call® CarePath™ offering to focus on the patient and their road to recovery by creating evidence-based injury recovery pathways. A Care Navigator is assigned to holistically view the patient and coordinate individualized care with qualified providers through the complete recovery process. One Call® CarePath™ is currently available for wound management, amputations and pain management with a total of 250 injured workers enrolled. Two other Pathways – for spinal injury and brain injury – are in development, with pilot and rollout in the coming months.
In closing, I want to reiterate to you, on behalf of the entire management team, our commitment to doing what is right for injured workers. I encourage you to stop and think about why we all do what we do; to get injured workers back to the life they lived before their injuries. Thank you for your continued support and partnership.