On July 30, 2024, CorVel Corp (CRVL, Financial) released its 8-K filing for the quarter ended June 30, 2024. CorVel Corp 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. It partners with employers, third-party administrators, insurance companies, and government agencies in managing worker's compensation and health, auto, and liability services.
Performance Overview
CorVel Corp (CRVL, Financial) reported revenues of $212 million for the quarter, marking an 11% increase from $190 million in the same quarter of the previous year. The company's earnings per share (EPS) also saw a notable rise, reaching $1.25 compared to $1.14 in the prior year’s quarter.
Financial Achievements
The company’s gross profit increased by 15% to $48.2 million, with a gross margin of 22.7%, compared to $41.9 million in the first quarter of fiscal year 2024. CorVel Corp (CRVL, Financial) ended the quarter with $132 million in cash and cash equivalents, and no borrowings, highlighting its strong liquidity position. Additionally, the company repurchased $9.5 million of common stock during the quarter.
Income Statement Highlights
| Quarter Ended | June 30, 2024 | June 30, 2023 |
|---|---|---|
| Revenues | $211,722,000 | $190,253,000 |
| Cost of revenues | $163,567,000 | $148,375,000 |
| Gross profit | $48,155,000 | $41,878,000 |
| General and administrative | $20,120,000 | $16,450,000 |
| Income from operations | $28,035,000 | $25,428,000 |
| Income tax provision | $6,458,000 | $5,623,000 |
| Net income | $21,577,000 | $19,805,000 |
| Earnings Per Share: | ||
| Basic | $1.26 | $1.16 |
| Diluted | $1.25 | $1.14 |
| Weighted Shares | ||
| Basic | 17,122,000 | 17,144,000 |
| Diluted | 17,313,000 | 17,385,000 |
Balance Sheet Highlights
| June 30, 2024 | March 31, 2024 | |
|---|---|---|
| Cash | $131,908,000 | $105,563,000 |
| Customer deposits | $94,022,000 | $88,142,000 |
| Accounts receivable, net | $97,749,000 | $97,108,000 |
| Prepaid taxes and expenses | $9,579,000 | $11,418,000 |
| Property, net | $86,865,000 | $85,892,000 |
| Goodwill and other assets | $42,808,000 | $42,498,000 |
| Right-of-use asset, net | $23,241,000 | $24,058,000 |
| Total | $486,172,000 | $454,679,000 |
| Accounts and taxes payable | $18,681,000 | $16,631,000 |
| Accrued liabilities | $181,904,000 | $167,868,000 |
| Long-term lease liabilities | $21,714,000 | $22,533,000 |
| Paid-in capital | $237,807,000 | $233,632,000 |
| Treasury stock | ($803,431,000) | ($793,905,000) |
| Retained earnings | $829,497,000 | $807,920,000 |
| Total | $486,172,000 | $454,679,000 |
Technological Advancements
During the quarter, CorVel Corp (CRVL, Financial) introduced an enhanced communications platform integrated into its proprietary claims system, CareMC. This platform aims to improve efficiency for claim staff and injured workers while utilizing advanced security features to reduce patient security risks. Additionally, the company is leveraging artificial intelligence to review clinical bills, identify anomalies, and document activities, which is expected to enhance cost containment and improve outcomes for partners.
Analysis
CorVel Corp (CRVL
Explore the complete 8-K earnings release (here) from CorVel Corp for further details.
