UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
|
(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:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
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 October 31, 2023, CorVel Corporation (the "Company") issued a press release announcing its financial results for the three and six months ended September 30, 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 Number |
|
Description |
99.1 |
|
|
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, |
|
|
|
|
Date: |
October 31, 2023 |
By: |
/s/ Brandon T. O’Brien |
|
|
|
Brandon T. O'Brien |
Exhibit 99.1
Date: October 31, 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, October 31, 2023 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended September 30, 2023. Revenues for the quarter were $196 million, an increase from $177 million in the same quarter of the previous year. Earnings per share for the quarter were $1.15, compared to $0.83 in the same quarter of the prior year.
Revenues for the six months ended September 30, 2023 were $386 million, compared to $354 million for the six months ended September 30, 2022. Earnings per share for the six months ended September 30, 2023 were $2.29, compared to $1.77 for the six months ended September 30, 2022.
The September quarter reflects balanced growth in Network Solutions and Patient Management business. CERIS, focused on the commercial health Payment Integrity market, experienced continued maturation of the new services added within the last year and workflow optimization within specific service lines. Increasing momentum is expected over the next several quarters as transaction volume increases and additional components of new Payment Integrity services are optimized.
Additionally, the Company experienced robust growth by adding services for existing partners and new bookings. Ongoing investments in technology, operational excellence, and quality of service are being well received in the market.
In the payables market, developments were made in both the revenue cycle management arm, Symbeo, and the treasury services department. At Symbeo, hyperautomation, a combination of AI, machine learning, and robotic process automation technologies, presents an expanded opportunity in the market. By using Symbeo’s payable solutions, partners receive the benefits of touchless digital invoices, AI enabled optical character recognition, a machine learning Document Classification model, configurable AP rules, and standard ERP integrations via Robotic Process Automation which provides faster invoice cycle times, lower total cost of ownership, and an enhanced user experience.
In the treasury services department, the Company has endeavored to provide convenience and flexibility with a variety of payment options including checks, ACH, and credit cards. Most recently, the CorVel Connected online payment portals were expanded to facilitate access for claimants and customers. The online portals provide a secure interface to upload, review, update, and manage data.
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, 2023 and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 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 Six months Ended September 30, 2023 (unaudited) and September 30, 2022 (unaudited)
Quarter Ended |
|
September 30, 2023 |
|
|
September 30, 2022 |
|
||
Revenues |
|
$ |
195,522,000 |
|
|
$ |
177,426,000 |
|
Cost of revenues |
|
|
151,270,000 |
|
|
|
141,332,000 |
|
Gross profit |
|
|
44,252,000 |
|
|
|
36,094,000 |
|
General and administrative |
|
|
19,538,000 |
|
|
|
17,549,000 |
|
Income from operations |
|
|
24,714,000 |
|
|
|
18,545,000 |
|
Income tax provision |
|
|
4,816,000 |
|
|
|
3,889,000 |
|
Net income |
|
$ |
19,898,000 |
|
|
$ |
14,656,000 |
|
Earnings Per Share: |
|
|
|
|
|
|
||
Basic |
|
$ |
1.16 |
|
|
$ |
0.84 |
|
Diluted |
|
$ |
1.15 |
|
|
$ |
0.83 |
|
Weighted Shares |
|
|
|
|
|
|
||
Basic |
|
|
17,123,000 |
|
|
|
17,386,000 |
|
Diluted |
|
|
17,346,000 |
|
|
|
17,650,000 |
|
Six Months Ended |
|
September 30, 2023 |
|
|
September 30, 2022 |
|
||
Revenues |
|
$ |
385,775,000 |
|
|
$ |
353,733,000 |
|
Cost of revenues |
|
|
299,644,000 |
|
|
|
277,770,000 |
|
Gross profit |
|
|
86,131,000 |
|
|
|
75,963,000 |
|
General and administrative |
|
|
35,989,000 |
|
|
|
36,219,000 |
|
Income from operations |
|
|
50,142,000 |
|
|
|
39,744,000 |
|
Income tax provision |
|
|
10,439,000 |
|
|
|
8,397,000 |
|
Net income |
|
$ |
39,703,000 |
|
|
$ |
31,347,000 |
|
Earnings Per Share: |
|
|
|
|
|
|
||
Basic |
|
$ |
2.32 |
|
|
$ |
1.80 |
|
Diluted |
|
$ |
2.29 |
|
|
$ |
1.77 |
|
Weighted Shares |
|
|
|
|
|
|
||
Basic |
|
|
17,133,000 |
|
|
|
17,446,000 |
|
Diluted |
|
|
17,365,000 |
|
|
|
17,726,000 |
|
CorVel Corporation
Quarterly Results – Condensed Balance Sheet
September 30, 2023 (unaudited) and March 31, 2023
|
|
September 30, 2023 |
|
|
March 31, 2023 |
|
||
Cash |
|
$ |
91,749,000 |
|
|
$ |
71,329,000 |
|
Customer deposits |
|
|
90,127,000 |
|
|
|
80,022,000 |
|
Accounts receivable, net |
|
|
86,937,000 |
|
|
|
81,034,000 |
|
Prepaid taxes and expenses |
|
|
13,062,000 |
|
|
|
11,385,000 |
|
Property, net |
|
|
84,939,000 |
|
|
|
82,770,000 |
|
Goodwill and other assets |
|
|
40,129,000 |
|
|
|
39,662,000 |
|
Right-of-use asset, net |
|
|
27,174,000 |
|
|
|
27,721,000 |
|
Total |
|
$ |
434,117,000 |
|
|
$ |
393,923,000 |
|
Accounts and taxes payable |
|
$ |
15,356,000 |
|
|
$ |
15,309,000 |
|
Accrued liabilities |
|
|
171,143,000 |
|
|
|
152,578,000 |
|
Long-term lease liabilities |
|
|
25,049,000 |
|
|
|
23,860,000 |
|
Paid-in capital |
|
|
226,598,000 |
|
|
|
218,703,000 |
|
Treasury stock |
|
|
(775,400,000 |
) |
|
|
(748,195,000 |
) |
Retained earnings |
|
|
771,371,000 |
|
|
|
731,668,000 |
|
Total |
|
$ |
434,117,000 |
|
|
$ |
393,923,000 |
|