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 August 1, 2023, CorVel Corporation (the "Company") issued a press release announcing its financial results for the three months ended June 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: |
August 1, 2023 |
By: |
/s/ Brandon T. O’Brien |
|
|
|
Brandon T. O'Brien |
Exhibit 99.1
Date: August 1, 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, August 1, 2023 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended June 30, 2023. Revenues for the quarter were a record $190 million, an increase from $176 million in the same quarter of the previous year. Earnings per share for the quarter were also a record $1.14, compared to $0.94 in the same quarter of the prior year.
CorVel’s 1st generative AI initiative will be released in the September quarter. The release will reduce mundane, repetitive tasks and provide decision support at critical inflection points. This automation will add to the existing machine-learning tools with increasing capabilities within the system. The Company also views generative AI as an effective tool to mitigate labor challenges and provide guidelines for future generations of professionals. In the quarter, investments in the foundational systems and workflow processes continued to strengthen the results achieved with CorVel’s products and services.
The Company further showed its commitment to technological evolution with the expansion of service offerings within the health market at CERIS. This most recent development, in conjunction with the business development efforts of the team, resulted in significant new partnerships being added during the quarter.
In the payables market, fraud remains a leading risk throughout the supply chain, in a large part due to increased M&A activity. Fraudulent vendor account information and payments can be difficult to detect within large volumes of financial transactions. Symbeo, the revenue cycle management arm of CorVel, provides a supplier onboarding offering to validate the authenticity of new suppliers and provides early warning fraud detection for every transaction throughout the payment process.
The Workers' Compensation operations experienced improved performance in the June quarter due to enhancements in operational efficiencies, particularly the alignment of staffing and claim volumes. Revenue and gross profit increased during the quarter as a result of these efforts.
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 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 Ended June 30, 2023 (unaudited) and June 30, 2022 (unaudited)
Quarter Ended |
|
June 30, 2023 |
|
|
June 30, 2022 |
|
||
Revenues |
|
$ |
190,253,000 |
|
|
$ |
176,307,000 |
|
Cost of revenues |
|
|
148,375,000 |
|
|
|
136,438,000 |
|
Gross profit |
|
|
41,878,000 |
|
|
|
39,869,000 |
|
General and administrative |
|
|
16,450,000 |
|
|
|
18,671,000 |
|
Income from operations |
|
|
25,428,000 |
|
|
|
21,198,000 |
|
Income tax provision |
|
|
5,623,000 |
|
|
|
4,507,000 |
|
Net income |
|
$ |
19,805,000 |
|
|
$ |
16,691,000 |
|
Earnings Per Share: |
|
|
|
|
|
|
||
Basic |
|
$ |
1.16 |
|
|
$ |
0.95 |
|
Diluted |
|
$ |
1.14 |
|
|
$ |
0.94 |
|
Weighted Shares |
|
|
|
|
|
|
||
Basic |
|
|
17,144,000 |
|
|
|
17,506,000 |
|
Diluted |
|
|
17,385,000 |
|
|
|
17,803,000 |
|
CorVel Corporation
Quarterly Results – Condensed Balance Sheet
June 30, 2023 (unaudited) and March 31, 2023
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
||
Cash |
|
$ |
86,593,000 |
|
|
$ |
71,329,000 |
|
Customer deposits |
|
|
84,755,000 |
|
|
|
80,022,000 |
|
Accounts receivable, net |
|
|
84,176,000 |
|
|
|
81,034,000 |
|
Prepaid taxes and expenses |
|
|
12,426,000 |
|
|
|
11,385,000 |
|
Property, net |
|
|
84,276,000 |
|
|
|
82,770,000 |
|
Goodwill and other assets |
|
|
39,228,000 |
|
|
|
39,662,000 |
|
Right-of-use asset, net |
|
|
26,119,000 |
|
|
|
27,721,000 |
|
Total |
|
$ |
417,573,000 |
|
|
$ |
393,923,000 |
|
Accounts and taxes payable |
|
$ |
20,419,000 |
|
|
$ |
15,309,000 |
|
Accrued liabilities |
|
|
167,312,000 |
|
|
|
152,578,000 |
|
Long-term lease liabilities |
|
|
22,862,000 |
|
|
|
23,860,000 |
|
Paid-in capital |
|
|
221,394,000 |
|
|
|
218,703,000 |
|
Treasury stock |
|
|
(765,887,000 |
) |
|
|
(748,195,000 |
) |
Retained earnings |
|
|
751,473,000 |
|
|
|
731,668,000 |
|
Total |
|
$ |
417,573,000 |
|
|
$ |
393,923,000 |
|