CorVel Corp. (CRVL, Financial) filed Quarterly Report for the period ended 2011-12-31.
Corvel Corp. has a market cap of $579.77 million; its shares were traded at around $50.71 with a P/E ratio of 19.96 and P/S ratio of 1.52. Corvel Corp. had an annual average earning growth of 11.6% over the past 10 years.
The Companys costs of revenue increased from $71.5 million in the quarter ended December 31, 2010 to $80.2 million in the quarter ended December 31, 2011, an increase of $8.7 million, or 12.2%. Cost of revenues increased by a greater percentage than revenues as more of the growth was generated from the lower margin patient services than the higher margin network solutions services. Additionally, within the network solutions services, there was a mix shift from the higher margin network solutions services to the network solutions with a lower margin. Also, the Company had $1.1 million of greater fringe benefit costs in the quarter ended December 31, 2011 compared to the quarter ended December 31, 2010. This increase was primarily due to an increase in the cost of the Companys group medical plan. Direct salaries increased from $19.2 million for the quarter ended December 31, 2010, to $21.5 million for the quarter ended December 31, 2011 due to mix shift in the business from higher margin to lower margin which are more labor intensive. Direct pharmacy costs increased from $8.9 million for the quarter ended December 31, 2010 to $10.4 million for the quarter ended December 31, 2011. This increase in pharmacy costs is due to the increase in revenues noted above.
Revenues increased from $280.2 million for the nine months ended December 31, 2010 to $308.2 million for the nine months ended December 31, 2011, an increase of $28.1 million or 10.0%. The Companys patient management revenues increased $15.0 million or 11.4% from $131.8 million in the nine months ended December 31, 2010 to $146.8 million in the nine months ended December 31, 2011. The increase in patient management services was primarily due to an increase in the level of services provided to existing TPA customers. The Companys network solutions revenues increased from $148.3 million in the nine months ended December 31, 2010 to $161.4 million in the nine months ended December 31, 2011, an increase of $13.0 million or 8.8%. The increase in network solutions revenue was primarily due to an increase in customer utilization of the Companys pharmacy services and directed care services.
The Companys cost of revenues increased from $209.3 million in the nine months ended December 31, 2010 to $235.9 million in the nine months ended December 31, 2011, an increase of $26.5 million or 12.7%. This increase was primarily due to the costs associated with the increase in demand for the Companys TPA services, pharmacy and directed care services. Cost of revenues increased by 12.7%, greater than the 10.0% increase in revenues from the nine months ended December 31, 2010 to the nine months ended December 31, 2011. This increase in cost of revenues is primarily due to a mix shift where more of the growth in revenues came from the lower margin services. Direct salaries increased from $56.7 million for the nine months ended December 31, 2010, to $61.7 million for the nine months ended December 31, 2011 due to mix shift in the business from higher margin to lower margin which are more labor intensive. Direct pharmacy costs increased from $23.2 million for the nine months ended December 31, 2010 to $31.4 million for the nine months ended December 31, 2011. This increase in pharmacy costs is due to the increase in revenues noted above.
General and administrative expense decreased from $38.1 million in the nine months ended December 31, 2010 to $37.2 million in the nine months ended December 31, 2011, a decrease of $0.9 million, or 2.3%. This decrease is primarily due to the Companys attempt to manage the growth in general and administrative costs relative to the growth in revenue. Systems costs increased from $18.8 million in the nine months ended December 31, 2010 to $20.2 million in the nine months ended December 31, 2011. Legal expense decrease from the nine months ended December 31, 2010 to the nine months ended December 31, 2011. General and administrative costs, as a percentage of revenues, decreased from 13.6% for the nine months ended December 31, 2010 to 12.1% for the nine months ended December 31, 2011.
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Corvel Corp. has a market cap of $579.77 million; its shares were traded at around $50.71 with a P/E ratio of 19.96 and P/S ratio of 1.52. Corvel Corp. had an annual average earning growth of 11.6% over the past 10 years.
Highlight of Business Operations:
Revenues increased from $95.3 million for the three months ended December 31, 2010 to $101.4 million for the three months ended December 31, 2011, an increase of $6.1 million, or 6.4%. The increase was primarily due to an increase in the Companys patient management revenues by $4.7 million, or 10.5%, from $44.4 million in the December 2010 quarter to $49.1 million in the December 2011 quarter. This increase was primarily due to an increase in the number of customers and customer utilization of the Companys TPA services. Additionally, this growth was complemented by an increase in network solutions revenue by $1.4 million, or 2.8%, from $50.9 million in the December 2010 quarter to $52.3 million in the December 2011 quarter. This increase was primarily due to an increase in revenues from the Companys pharmacy and directed care services.The Companys costs of revenue increased from $71.5 million in the quarter ended December 31, 2010 to $80.2 million in the quarter ended December 31, 2011, an increase of $8.7 million, or 12.2%. Cost of revenues increased by a greater percentage than revenues as more of the growth was generated from the lower margin patient services than the higher margin network solutions services. Additionally, within the network solutions services, there was a mix shift from the higher margin network solutions services to the network solutions with a lower margin. Also, the Company had $1.1 million of greater fringe benefit costs in the quarter ended December 31, 2011 compared to the quarter ended December 31, 2010. This increase was primarily due to an increase in the cost of the Companys group medical plan. Direct salaries increased from $19.2 million for the quarter ended December 31, 2010, to $21.5 million for the quarter ended December 31, 2011 due to mix shift in the business from higher margin to lower margin which are more labor intensive. Direct pharmacy costs increased from $8.9 million for the quarter ended December 31, 2010 to $10.4 million for the quarter ended December 31, 2011. This increase in pharmacy costs is due to the increase in revenues noted above.
Revenues increased from $280.2 million for the nine months ended December 31, 2010 to $308.2 million for the nine months ended December 31, 2011, an increase of $28.1 million or 10.0%. The Companys patient management revenues increased $15.0 million or 11.4% from $131.8 million in the nine months ended December 31, 2010 to $146.8 million in the nine months ended December 31, 2011. The increase in patient management services was primarily due to an increase in the level of services provided to existing TPA customers. The Companys network solutions revenues increased from $148.3 million in the nine months ended December 31, 2010 to $161.4 million in the nine months ended December 31, 2011, an increase of $13.0 million or 8.8%. The increase in network solutions revenue was primarily due to an increase in customer utilization of the Companys pharmacy services and directed care services.
The Companys cost of revenues increased from $209.3 million in the nine months ended December 31, 2010 to $235.9 million in the nine months ended December 31, 2011, an increase of $26.5 million or 12.7%. This increase was primarily due to the costs associated with the increase in demand for the Companys TPA services, pharmacy and directed care services. Cost of revenues increased by 12.7%, greater than the 10.0% increase in revenues from the nine months ended December 31, 2010 to the nine months ended December 31, 2011. This increase in cost of revenues is primarily due to a mix shift where more of the growth in revenues came from the lower margin services. Direct salaries increased from $56.7 million for the nine months ended December 31, 2010, to $61.7 million for the nine months ended December 31, 2011 due to mix shift in the business from higher margin to lower margin which are more labor intensive. Direct pharmacy costs increased from $23.2 million for the nine months ended December 31, 2010 to $31.4 million for the nine months ended December 31, 2011. This increase in pharmacy costs is due to the increase in revenues noted above.
General and administrative expense decreased from $38.1 million in the nine months ended December 31, 2010 to $37.2 million in the nine months ended December 31, 2011, a decrease of $0.9 million, or 2.3%. This decrease is primarily due to the Companys attempt to manage the growth in general and administrative costs relative to the growth in revenue. Systems costs increased from $18.8 million in the nine months ended December 31, 2010 to $20.2 million in the nine months ended December 31, 2011. Legal expense decrease from the nine months ended December 31, 2010 to the nine months ended December 31, 2011. General and administrative costs, as a percentage of revenues, decreased from 13.6% for the nine months ended December 31, 2010 to 12.1% for the nine months ended December 31, 2011.
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