CorVel Corp. (CRVL, Financial) filed Quarterly Report for the period ended 2008-12-31.
CorVel Corporation is an independent nationwide provider of managed care services designed to address the medical issues of healthcare benefits provided under workers' compensation group health and auto insurance policies. The Company's services include but are not limited to automated medical fee auditing national preferred provider network earlyintervention utilization review medical case management vocationalrehabilitation services telephonic case management and independent medicalexaminations. CorVel Corp. has a market cap of $242.83 million; its shares were traded at around $21.2 with a P/E ratio of 10.82 and P/S ratio of 0.8. CorVel Corp. had an annual average earning growth of 9.1% over the past 10 years. GuruFocus rated CorVel Corp. the business predictability rank of 2.5-star.
The Companys general and administrative costs decreased by $0.3 million, from $10.6 million in the December 2007 quarter to $10.3 million in the December 2008 quarter, a decrease of 2.7%. This decrease is primarily due to a decrease in the Companys systems and data interface costs and capabilities that were offset by an increase in the companys legal expenses. Systems cost decreased from $6.5 million to $5.9 million as the Company leveraged system costs and IT infrastructure costs. Legal costs increased by $0.7 million due to development in existing legal proceedings.
Revenues increased from $76.7 million for the three months ended December 31, 2007 to $77.0 million for the three months ended December 31, 2008, an increase of $0.3 million or 0.4%. The increase was primarily due to an increase in the Companys network solutions revenues of $0.4 million or 0.8% from $43.3 million in the December 2007 quarter to $43.7 million in the December 2008 quarter. Bill volume from December 31, 2007 to December 31, 2008 quarter decreased 3% offset by an increase in revenue per bill by 5%. Network Solutions increases in revenue were nominal due to difficult market conditions as well as continued decreases in manufacturing jobs. Patient management was similarly affected.
General and administrative costs decreased from $10.6 million in the quarter ended December 31, 2007 to $10.3 million in the quarter ended December 31, 2008, a decrease of $0.3 million, or 2.7%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems and data interface costs decreased due to managements leveraging prior technology investments. Additionally, management was able to affect a head count reduction as well as reduced consulting costs. This reduction was offset by an increase in the companys legal expenses. Systems cost decreased from $6.5 million to $5.9 million. Legal costs increased by $0.7 million due to development in existing legal proceedings.
Revenues increased from $224.5 million for the nine months ended December 31, 2007 to $233.0 million for the nine months ended December 31, 2008, an increase of $8.5 million or 3.8%. The Companys patient management revenues increased $5.8 million or 6.2% from $95.2 million in the nine months ended December 2007 to $101.0 million in the nine months ended December 2008. This increase was partially due to the acquisition of Schaffer in June 2007 as noted above. The Companys network solutions revenues increased from $129.4 million in the nine months ended December 2007 to $132.0 million in the nine months ended December 2008, an increase of $2.6 million or 2.0%. This increase was primarily due to an increase in revenue per bill over the nine months ended December 31, 2008.
The Companys costs of revenues increased from $167.3 million in the nine months ended December 31, 2007 to $176.6 million in the nine months ended December 31, 2008, an increase of $9.3 million or 5.5%. Direct salaries increased $2.0 million from the previous nine month period. Related payroll, fringe benefits, and mileage reimbursement increased $1.2 million from the previous nine month period. Additionally, PPO related costs increased by $1.7 million from the previous nine month period. Cost of revenues from pharmacy services increased $1.9 million due to an increase in revenues from those services.
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CorVel Corporation is an independent nationwide provider of managed care services designed to address the medical issues of healthcare benefits provided under workers' compensation group health and auto insurance policies. The Company's services include but are not limited to automated medical fee auditing national preferred provider network earlyintervention utilization review medical case management vocationalrehabilitation services telephonic case management and independent medicalexaminations. CorVel Corp. has a market cap of $242.83 million; its shares were traded at around $21.2 with a P/E ratio of 10.82 and P/S ratio of 0.8. CorVel Corp. had an annual average earning growth of 9.1% over the past 10 years. GuruFocus rated CorVel Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
The Companys cost of revenues increased by $3.0 million, from $56.3 million in the December 2007 quarter to $59.3 million in the December 2008 quarter, an increase of 5.4%. This increase was primarily due to mix shift with slight revenue increases in lower margin services, which were in greater demand, along with slight revenue decreases in higher margin services, combined with rising salaries. Direct salaries increased by $0.7 million and related payroll taxes, fringe benefits, and mileage reimbursement increased by $0.4 million. Cost of services related to pharmacy services increased by $1.0 million due to an increase in revenue from these services.The Companys general and administrative costs decreased by $0.3 million, from $10.6 million in the December 2007 quarter to $10.3 million in the December 2008 quarter, a decrease of 2.7%. This decrease is primarily due to a decrease in the Companys systems and data interface costs and capabilities that were offset by an increase in the companys legal expenses. Systems cost decreased from $6.5 million to $5.9 million as the Company leveraged system costs and IT infrastructure costs. Legal costs increased by $0.7 million due to development in existing legal proceedings.
Revenues increased from $76.7 million for the three months ended December 31, 2007 to $77.0 million for the three months ended December 31, 2008, an increase of $0.3 million or 0.4%. The increase was primarily due to an increase in the Companys network solutions revenues of $0.4 million or 0.8% from $43.3 million in the December 2007 quarter to $43.7 million in the December 2008 quarter. Bill volume from December 31, 2007 to December 31, 2008 quarter decreased 3% offset by an increase in revenue per bill by 5%. Network Solutions increases in revenue were nominal due to difficult market conditions as well as continued decreases in manufacturing jobs. Patient management was similarly affected.
General and administrative costs decreased from $10.6 million in the quarter ended December 31, 2007 to $10.3 million in the quarter ended December 31, 2008, a decrease of $0.3 million, or 2.7%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems and data interface costs decreased due to managements leveraging prior technology investments. Additionally, management was able to affect a head count reduction as well as reduced consulting costs. This reduction was offset by an increase in the companys legal expenses. Systems cost decreased from $6.5 million to $5.9 million. Legal costs increased by $0.7 million due to development in existing legal proceedings.
Revenues increased from $224.5 million for the nine months ended December 31, 2007 to $233.0 million for the nine months ended December 31, 2008, an increase of $8.5 million or 3.8%. The Companys patient management revenues increased $5.8 million or 6.2% from $95.2 million in the nine months ended December 2007 to $101.0 million in the nine months ended December 2008. This increase was partially due to the acquisition of Schaffer in June 2007 as noted above. The Companys network solutions revenues increased from $129.4 million in the nine months ended December 2007 to $132.0 million in the nine months ended December 2008, an increase of $2.6 million or 2.0%. This increase was primarily due to an increase in revenue per bill over the nine months ended December 31, 2008.
The Companys costs of revenues increased from $167.3 million in the nine months ended December 31, 2007 to $176.6 million in the nine months ended December 31, 2008, an increase of $9.3 million or 5.5%. Direct salaries increased $2.0 million from the previous nine month period. Related payroll, fringe benefits, and mileage reimbursement increased $1.2 million from the previous nine month period. Additionally, PPO related costs increased by $1.7 million from the previous nine month period. Cost of revenues from pharmacy services increased $1.9 million due to an increase in revenues from those services.
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