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
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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:
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Trading |
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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 November 1, 2022, CorVel Corporation (the "Company") issued a press release announcing its financial results for the three and six months ended September 30, 2022. 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 |
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Description |
99.1 |
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104 |
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Cover Page Interactive Data file (embedded within the Inline XBRL document). |
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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.
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CORVEL CORPORATION, |
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Date: |
November 1, 2022 |
By: |
/s/ Brandon T. O’Brien |
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Brandon T. O'Brien |
Exhibit 99.1
Date: November 1, 2022 |
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CorVel Corporation |
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5128 Apache Plume Road |
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Suite 400 |
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Fort Worth, TX 76109 |
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FOR IMMEDIATE RELEASE |
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Contact: Melissa Storan |
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Phone: 949-851-1473 |
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www.corvel.com |
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CorVel Announces Revenues and Earnings
FORT WORTH, Texas, November 1, 2022 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended September 30, 2022. Revenues for the quarter were $177 million, an increase from $158 million in the same quarter of the previous year. Earnings per share for the quarter were $0.83, compared to $0.88 in the same quarter of the prior year.
Revenues for the six months ended September 30, 2022 were $354 million, compared to $310 million for the six months ended September 30, 2021. Earnings per share for the six months ended September 30, 2022 were $1.77, compared to $1.81 for the six months ended September 30, 2021.
The Company has continued its investment in the CERiS team, SaaS platform, R&D, and the creation of new services within the payment integrity market. A new workflow management system was implemented which provided increased scalability, configurability, and process efficiency gains in overall labor costs. Automated medical record review technology which eliminated manual processes was also installed during the quarter. This functionality significantly improved performance of the CERiS clinical review team while performing diagnosis related group audits.
With opportunities presented by the pandemic and the Great Resignation, the Company has prioritized the quality of engagement, results, and outcomes generated. Enhanced retention efforts, proactive hiring, and increasing bench strength have mitigated the impact of these labor market challenges. A 97% overall customer retention rate for the year validates the efficacy of these efforts and the expectation is the workforce pendulum will swing back to a neutral position.
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 quarter ended June 30, 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 Six Months Ended September 30, 2022 (unaudited) and September 30, 2021 (unaudited)
Quarter Ended |
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September 30, 2022 |
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September 30, 2021 |
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Revenues |
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$ |
177,426,000 |
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$ |
157,743,000 |
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Cost of revenues |
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141,332,000 |
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121,082,000 |
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Gross profit |
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36,094,000 |
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36,661,000 |
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General and administrative |
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17,549,000 |
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16,658,000 |
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Income from operations |
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18,545,000 |
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20,003,000 |
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Income tax provision |
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3,889,000 |
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3,931,000 |
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Net income |
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14,656,000 |
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$ |
16,072,000 |
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Earnings Per Share: |
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Basic |
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$ |
0.84 |
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0.90 |
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Diluted |
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$ |
0.83 |
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$ |
0.88 |
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Weighted Shares |
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Basic |
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17,386,000 |
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17,841,000 |
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Diluted |
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17,650,000 |
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18,232,000 |
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Six Months Ended |
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September 30, 2022 |
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September 30, 2021 |
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Revenues |
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$ |
353,733,000 |
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$ |
310,363,000 |
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Cost of revenues |
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277,770,000 |
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236,489,000 |
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Gross profit |
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75,963,000 |
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73,874,000 |
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General and administrative |
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36,219,000 |
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33,303,000 |
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Income from operations |
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39,744,000 |
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40,571,000 |
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Income tax provision |
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8,397,000 |
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7,656,000 |
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Net income |
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$ |
31,347,000 |
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$ |
32,915,000 |
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Earnings Per Share: |
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Basic |
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$ |
1.80 |
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$ |
1.84 |
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Diluted |
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$ |
1.77 |
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$ |
1.81 |
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Weighted Shares |
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Basic |
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17,446,000 |
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17,869,000 |
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Diluted |
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17,726,000 |
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18,226,000 |
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CorVel Corporation
Quarterly Results – Condensed Balance Sheet
September 30, 2022 (unaudited) and March 31, 2022
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September 30, 2022 |
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March 31, 2022 |
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Cash |
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$ |
75,625,000 |
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$ |
97,504,000 |
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Customer deposits |
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75,770,000 |
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69,781,000 |
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Accounts receivable, net |
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84,787,000 |
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82,586,000 |
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Prepaid taxes and expenses |
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12,201,000 |
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15,123,000 |
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Property, net |
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82,506,000 |
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76,268,000 |
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Goodwill and other assets |
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39,067,000 |
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38,964,000 |
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Right-of-use asset, net |
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29,930,000 |
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35,020,000 |
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Total |
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$ |
399,886,000 |
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$ |
415,246,000 |
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Accounts and taxes payable |
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$ |
17,028,000 |
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$ |
14,431,000 |
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Accrued liabilities |
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158,482,000 |
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156,939,000 |
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Deferred tax liability |
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1,107,000 |
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1,689,000 |
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Long-term lease liabilities |
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25,436,000 |
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29,792,000 |
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Paid-in capital |
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207,989,000 |
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201,612,000 |
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Treasury stock |
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(706,806,000 |
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(654,520,000 |
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Retained earnings |
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696,650,000 |
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665,303,000 |
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Total |
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$ |
399,886,000 |
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$ |
415,246,000 |
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