8-K
CORVEL CORP (CRVL)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): May 25, 2023 |
|---|
CORVEL CORPORATION
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 000-19291 | 33-0282651 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 5128 Apache Plume Road<br><br>Suite 400 | ||
| Fort Worth, Texas | 76109 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: (817) 390-1416 | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, Par Value $0.0001 Per Share | CRVL | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 25, 2023, CorVel Corporation (the "Company") issued a press release announcing its financial results for the three months and fiscal year ended ended March 31, 2023. A copy of the press release is furnished herewith as Exhibit 99.1.
The information contained in this Item 2.02 and in the exhibit attached to this report as Exhibit 99.1 is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, or incorporated by reference in any filing of the Company under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit<br><br>Number | Description |
|---|---|
| 99.1 | Press Release, dated May 25, 2023, announcing CorVel Corporation’s financial results for the three months and fiscal year ended March 31, 2023 (furnished herewith but not filed pursuant to Item 2.02). |
| 104 | Cover Page Interactive Data file (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CORVEL CORPORATION,<br>a Delaware corporation<br>(Registrant) | |||
|---|---|---|---|
| Date: | May 25, 2023 | By: | /s/ Brandon T. O’Brien |
| Brandon T. O'Brien<br>Chief Financial Officer |
EX-99.1
Exhibit 99.1
| Date: May 25, 2023 | CorVel Corporation |
|---|---|
| 5128 Apache Plume Road | |
| Suite 400 | |
| Fort Worth, TX 76109 | |
| FOR IMMEDIATE RELEASE | Contact: Melissa Storan |
| Phone: 949-851-1473 | |
| www.corvel.com |
CorVel Announces Revenues and Earnings
FORT WORTH, Texas, May 25, 2023 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter and fiscal year ended March 31, 2023. Revenues for the quarter were $185 million, an increase from $171 million in the same quarter of the previous year. Earnings per share for the quarter were $1.04, compared to $1.09 in the same quarter of the prior year.
Revenues for the fiscal year ended March 31, 2023 were $719 million, compared to $646 million for the fiscal year ended March 31, 2022. Earnings per share for the fiscal year ended March 31, 2023 were $3.77, compared to $3.66 for the fiscal year ended March 31, 2022.
During the quarter and fiscal year, CERIS expanded work with existing and developing partners in the commercial health market. The Company has increased investment in the CERIS team, SaaS platform, and R&D. With the application of advanced technologies, workflow efficiencies have increased, ROI has grown, and the competitive position in the market has strengthened. CERIS is well-positioned and prepared to scale for the additional business.
In other areas, CorVel is moving forward quickly and intentionally, using generative AI in a closed-source data environment. The technology will be incorporated into CogencyIQ® service offerings and has extensive benefits. Most importantly, generative AI will elevate the work of claims professionals and allow more time to be spent interacting directly with injured workers. The reallocated time will ultimately improve the experience of injured workers and enhance partner outcomes.
The Company has also introduced a new virtual mailbox interface in the Provider Portal, allowing documents to be uploaded securely. In addition to data security, the virtual mailbox confirms submission with receipt and tracking, requires no manual preprocessing, and provides same-day handling from any location. This project was designed for scalability; customers now using the interface are experiencing cost savings and cost avoidance.
About CorVel
CorVel Corporation applies technology including artificial intelligence, machine learning and natural language processing to enhance the managing of episodes of care and the related health care costs. We partner with employers, third-party administrators, insurance companies and government agencies in managing workers’ compensation and health, auto and liability services. Our diverse suite of solutions combines our integrated technologies with a human touch. CorVel's customized services, delivered locally, are backed by a national team to support clients as well as their customers and patients.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company, management’s beliefs, and certain assumptions made by the Company, and events beyond the Company’s control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to our commercial health-focused operation, improved productivity resulting from automation and augmentation across enterprise business systems. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that
could cause the Company’s actual results to differ materially and adversely from those expressed in any forward-looking statement, including the risk that the impact of the COVID-19 pandemic on our business, results of operations and financial condition is greater than our initial assessment.
The risks and uncertainties referred to above include but are not limited to factors described in this press release and the Company’s filings with the Securities and Exchange Commission, including but not limited to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2022 and the Company’s Quarterly Report on Form 10-Q for the quarters ended June 30, 2022, September 30, 2022, and December 31, 2022. The forward-looking statements in this press release speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
CorVel Corporation
Quarterly Results – Income Statement
Quarters and Fiscal Year Ended March 31, 2023 and March 31, 2022
| Quarter Ended | March 31, 2023 | March 31, 2022 | ||
|---|---|---|---|---|
| Revenues | $ | 185,443,000 | $ | 171,359,000 |
| Cost of revenues | 143,492,000 | 128,307,000 | ||
| Gross profit | 41,951,000 | 43,052,000 | ||
| General and administrative | 19,358,000 | 16,793,000 | ||
| Income from operations | 22,593,000 | 26,259,000 | ||
| Income tax provision | 4,424,000 | 6,622,000 | ||
| Net income | $ | 18,169,000 | $ | 19,637,000 |
| Earnings Per Share: | ||||
| Basic | $ | 1.06 | $ | 1.11 |
| Diluted | $ | 1.04 | $ | 1.09 |
| Weighted Shares | ||||
| Basic | 17,176,000 | 17,618,000 | ||
| Diluted | 17,429,000 | 17,976,000 | ||
| Fiscal Year Ended | March 31, 2023 | March 31, 2022 | ||
| --- | --- | --- | --- | --- |
| Revenues | $ | 718,562,000 | $ | 646,230,000 |
| Cost of revenues | 560,303,000 | 494,116,000 | ||
| Gross profit | 158,259,000 | 152,114,000 | ||
| General and administrative | 73,705,000 | 67,602,000 | ||
| Income from operations | 84,554,000 | 84,512,000 | ||
| Income tax provision | 18,189,000 | 18,102,000 | ||
| Net income | $ | 66,365,000 | $ | 66,410,000 |
| Earnings Per Share: | ||||
| Basic | $ | 3.83 | $ | 3.74 |
| Diluted | $ | 3.77 | $ | 3.66 |
| Weighted Shares | ||||
| Basic | 17,328,000 | 17,753,000 | ||
| Diluted | 17,592,000 | 18,127,000 |
CorVel Corporation
Quarterly Results – Condensed Balance Sheet
March 31, 2023 and March 31, 2022
| March 31, 2023 | March 31, 2022 | |||||
|---|---|---|---|---|---|---|
| Cash | $ | 71,329,000 | $ | 97,504,000 | ||
| Customer deposits | 80,022,000 | 69,781,000 | ||||
| Accounts receivable, net | 81,034,000 | 82,586,000 | ||||
| Prepaid taxes and expenses | 11,385,000 | 15,123,000 | ||||
| Property, net | 82,770,000 | 76,268,000 | ||||
| Goodwill and other assets | 39,662,000 | 38,964,000 | ||||
| Right-of-use asset, net | 27,721,000 | 35,020,000 | ||||
| Total | $ | 393,923,000 | $ | 415,246,000 | ||
| Accounts and taxes payable | $ | 15,309,000 | $ | 14,431,000 | ||
| Accrued liabilities | 152,578,000 | 156,939,000 | ||||
| Deferred tax liability | — | 1,689,000 | ||||
| Long-term lease liabilities | 23,860,000 | 29,792,000 | ||||
| Paid-in capital | 218,703,000 | 201,612,000 | ||||
| Treasury stock | (748,195,000 | ) | (654,520,000 | ) | ||
| Retained earnings | 731,668,000 | 665,303,000 | ||||
| Total | $ | 393,923,000 | $ | 415,246,000 |