CorVel Corp. (CRVL, Financial) filed Quarterly Report for the period ended 2012-06-30.
Corvel Corporation has a market cap of $528.9 million; its shares were traded at around $47.94 with a P/E ratio of 21.7 and P/S ratio of 1.3. Corvel Corporation had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Corvel Corporation the business predictability rank of 3-star.
Revenues increased from $102.3 million for the three months ended June 30, 2011 to $104.6 million for the three months ended June 30, 2012, an increase of $2.3 million or 2.2%. The Companys patient management revenues increased $4.4 million, or 9.0%, from $48.3 million in the three months ended June 30, 2011 to $52.6 million in the three months ended June 30, 2012. 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 decreased from $54.0 million in the three months ended June 30, 2011 to $52.0 million in the three months ended June 30, 2012, a decrease of $2.0 million, or 3.8%. The decrease in network solutions revenue was primarily due to a decrease in volume of higher priced services offset by an increase in volume of lower priced services.
The Companys cost of revenues increased from $76.8 million in the three months ended June 30, 2011 to $81.4 million in the three months ended June 30, 2012, an increase of $4.7 million, or 6.1%. This increase was partially due to the increase in the volume of services which generated the 2.2% revenue increase for the same periods. Additionally, the Company had an increase in volume of lower margin services offset by a decrease in higher margin services which resulted in a cost increase greater than the revenue increase. These lower margin services are more labor intensive, which results in the cost of services being greater. Direct salaries increased from $19 million for the quarter ended June 30, 2011, to $22 million for the quarter ended June 30, 2012. Direct pharmacy costs increased from $10 million for the quarter ended June 30, 2011 to $12 million for the quarter ended June 30, 2012. The Company also experienced an increase in employee fringe benefit cost, primarily group health costs.
General and administrative expense decreased from $12.3 million in the three months ended June 30, 2011 to $12.2 million in the three months ended June 30, 2012, a decrease of $0.1 million, or 1.0%. This decrease is primarily due to the Companys efforts to manage non-systems related general and administrative costs during a period of slower revenue growth. The decrease in non-systems related general and administrative costs was offset by an increase in the Companys systems costs from $6.8 million in the quarter ended June 30, 2011 to $7.5 million in the quarter ended June 30, 2012 due to an increase in amortization of capitalized software and an increase in ongoing support and maintenance.
The Company has historically funded its operations and capital expenditures primarily from cash flow from operations, and to a lesser extent, stock option exercises. Working capital increased $5.9 million, from $36.5 million as of March 31, 2012 to $42.4 million as of June 30, 2012, primarily due to an increase in cash from $6.6 million as of March 31, 2012 to $14.6 million as of June 30, 2012. This increase in working capital compared to the previous quarter was due to an increase in income before income taxes, a reduction in the days sales outstanding from 43 to 40 days, and a reduction in the amount spent on share repurchases compared to the previous quarter.
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Corvel Corporation has a market cap of $528.9 million; its shares were traded at around $47.94 with a P/E ratio of 21.7 and P/S ratio of 1.3. Corvel Corporation had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Corvel Corporation the business predictability rank of 3-star.
Highlight of Business Operations:
The Company generated revenues of $104.6 million for the quarter ended June 30, 2012, an increase of $2.3 million, or 2.2%, compared to revenues of $102.3 million for the quarter ended June 30, 2011. The increase in revenues was primarily due to a 9% increase in patient management, which includes case management services and all services sold to TPA customers. The increase in patient management services was primarily due to an increase in the level of services provided to existing TPA customers.Revenues increased from $102.3 million for the three months ended June 30, 2011 to $104.6 million for the three months ended June 30, 2012, an increase of $2.3 million or 2.2%. The Companys patient management revenues increased $4.4 million, or 9.0%, from $48.3 million in the three months ended June 30, 2011 to $52.6 million in the three months ended June 30, 2012. 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 decreased from $54.0 million in the three months ended June 30, 2011 to $52.0 million in the three months ended June 30, 2012, a decrease of $2.0 million, or 3.8%. The decrease in network solutions revenue was primarily due to a decrease in volume of higher priced services offset by an increase in volume of lower priced services.
The Companys cost of revenues increased from $76.8 million in the three months ended June 30, 2011 to $81.4 million in the three months ended June 30, 2012, an increase of $4.7 million, or 6.1%. This increase was partially due to the increase in the volume of services which generated the 2.2% revenue increase for the same periods. Additionally, the Company had an increase in volume of lower margin services offset by a decrease in higher margin services which resulted in a cost increase greater than the revenue increase. These lower margin services are more labor intensive, which results in the cost of services being greater. Direct salaries increased from $19 million for the quarter ended June 30, 2011, to $22 million for the quarter ended June 30, 2012. Direct pharmacy costs increased from $10 million for the quarter ended June 30, 2011 to $12 million for the quarter ended June 30, 2012. The Company also experienced an increase in employee fringe benefit cost, primarily group health costs.
General and administrative expense decreased from $12.3 million in the three months ended June 30, 2011 to $12.2 million in the three months ended June 30, 2012, a decrease of $0.1 million, or 1.0%. This decrease is primarily due to the Companys efforts to manage non-systems related general and administrative costs during a period of slower revenue growth. The decrease in non-systems related general and administrative costs was offset by an increase in the Companys systems costs from $6.8 million in the quarter ended June 30, 2011 to $7.5 million in the quarter ended June 30, 2012 due to an increase in amortization of capitalized software and an increase in ongoing support and maintenance.
The Company has historically funded its operations and capital expenditures primarily from cash flow from operations, and to a lesser extent, stock option exercises. Working capital increased $5.9 million, from $36.5 million as of March 31, 2012 to $42.4 million as of June 30, 2012, primarily due to an increase in cash from $6.6 million as of March 31, 2012 to $14.6 million as of June 30, 2012. This increase in working capital compared to the previous quarter was due to an increase in income before income taxes, a reduction in the days sales outstanding from 43 to 40 days, and a reduction in the amount spent on share repurchases compared to the previous quarter.
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