CorVel Corp. (CRVL, Financial) filed Quarterly Report for the period ended 2009-12-31.
Corvel Corp. has a market cap of $375.5 million; its shares were traded at around $30.58 with a P/E ratio of 18.5 and P/S ratio of 1.3. 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 3-star.CRVL is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Revenues increased from $233.0 million for the nine months ended December 31, 2008 to $250.4 million for the nine months ended December 31, 2009, an increase of $17.3 million or 7.4%. The Companys patient management revenues increased $11.5 million or 11.5% from $101.1 million in the nine months ended December 2008 to $112.6 million in the nine months ended December 2009. This increase was primarily due to improvements in customer utilization of the Companys TPA services. The Companys network solutions revenues increased from $132.0 million in the nine months ended December 2008 to $137.8 million in the nine months ended December 2009, an increase of $5.8 million or 4.4%. This increase was primarily due to an increase in customer utilization of the Companys CorCareRx and CareIQ services.
The Companys costs of revenues increased from $176.6 million in the nine months ended December 31, 2008 to $186.6 million in the nine months ended December 31, 2009, an increase of $10.0 million or 5.7%. This increase was primarily due to the costs associated with the increase in demand for the Companys TPA services, CareIQ and CorCareRx services, which are high-cost services. CorVel TPA service costs increased $9.7 million from the previous nine month period. CorCareRX cost of goods sold increased $2.3 million from the previous nine month period. Similarly, CareIQ costs increased $3.1 million from the previous nine month period.
General and administrative expense decreased from $31.8 million in the nine months ended December 31, 2008 to $31.4 million in the nine months ended December 31, 2009, a decrease of $0.5 million, or 1.4%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems cost decreased from $19.1 million to $18.0 million due to a reduction in employee headcount and consultants, offset by increases in other general and administrative costs. During the December 2009 quarter, software enhancements increased the Companys gross margin in these services. Additionally, during the December 2009 quarter, the Company began increasing software development expenditures to further our TPA product. The Company expects to grow software development expenditures. Additionally, the Companys legal expenses decreased in the nine months ended December 31, 2009 compared to the nine months ended December 31, 2008, due to a reduction in settlements and outside attorney expenses. This decrease was offset by an increase in sales and marketing primarily due to an increase in customer meetings and product management personnel.
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 decreased $4.2 million, or 15%, from $28.1 million as of March 31, 2009 to $23.9 million as of December 31, 2009, primarily due to a decrease in cash from $14.7 million as of March 31, 2009 to $7.9 million as of December 31, 2009. The decrease in cash was primarily due to the $27 million in share repurchases.
Net cash flow used in financing activities increased from $19.9 million for the nine months ended December 31, 2008 to $24.3 million for the nine months ended December 31, 2009, an increase of $4.5 million. The increase in cash flow used in financing activities was primarily due to an increase in purchases under the Companys share repurchase program, partially offset by an increase in the number of options exercised. During the nine months ended December 31, 2009, the Company spent $27.0 million to repurchase 924,000 shares of its common stock, including 200,000 shares which were repurchased from the Companys Chairman of the Board in September 2009 for an average price of $30.00 per share During the nine months ended December 31, 2008, the Company spent $22.2 million to repurchase 923,000 shares of its common stock. The Company has historically used cash provided by operating activities and from the exercise of stock options to repurchase stock. The Company expects it may use some of the $7.9 million of cash on its balance sheet at December 31, 2009 to repurchase additional shares of stock.
Read the The complete Report
Corvel Corp. has a market cap of $375.5 million; its shares were traded at around $30.58 with a P/E ratio of 18.5 and P/S ratio of 1.3. 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 3-star.CRVL is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
Revenues increased from $77.0 million for the three months ended December 31, 2008 to $86.6 million for the three months ended December 31, 2009, an increase of $9.7 million or 12.6%. The increase was primarily due to an increase in the Companys patient management revenues of $7.8 million or 22.7% from $33.3 million in the December 2008 quarter to $41.1 million in the December 2009 quarter. Improvements in customer utilization of the Companys TPA services were the primary reason for the increase in patient management service revenues. This was complimented by an increase in network solutions revenue of $1.9 million or 4.3%, from $43.7 million in the December 2008 quarter to $45.6 million in the December 2009 quarter. This increase was primarily due to an increase in revenues from CareIQ services.Revenues increased from $233.0 million for the nine months ended December 31, 2008 to $250.4 million for the nine months ended December 31, 2009, an increase of $17.3 million or 7.4%. The Companys patient management revenues increased $11.5 million or 11.5% from $101.1 million in the nine months ended December 2008 to $112.6 million in the nine months ended December 2009. This increase was primarily due to improvements in customer utilization of the Companys TPA services. The Companys network solutions revenues increased from $132.0 million in the nine months ended December 2008 to $137.8 million in the nine months ended December 2009, an increase of $5.8 million or 4.4%. This increase was primarily due to an increase in customer utilization of the Companys CorCareRx and CareIQ services.
The Companys costs of revenues increased from $176.6 million in the nine months ended December 31, 2008 to $186.6 million in the nine months ended December 31, 2009, an increase of $10.0 million or 5.7%. This increase was primarily due to the costs associated with the increase in demand for the Companys TPA services, CareIQ and CorCareRx services, which are high-cost services. CorVel TPA service costs increased $9.7 million from the previous nine month period. CorCareRX cost of goods sold increased $2.3 million from the previous nine month period. Similarly, CareIQ costs increased $3.1 million from the previous nine month period.
General and administrative expense decreased from $31.8 million in the nine months ended December 31, 2008 to $31.4 million in the nine months ended December 31, 2009, a decrease of $0.5 million, or 1.4%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems cost decreased from $19.1 million to $18.0 million due to a reduction in employee headcount and consultants, offset by increases in other general and administrative costs. During the December 2009 quarter, software enhancements increased the Companys gross margin in these services. Additionally, during the December 2009 quarter, the Company began increasing software development expenditures to further our TPA product. The Company expects to grow software development expenditures. Additionally, the Companys legal expenses decreased in the nine months ended December 31, 2009 compared to the nine months ended December 31, 2008, due to a reduction in settlements and outside attorney expenses. This decrease was offset by an increase in sales and marketing primarily due to an increase in customer meetings and product management personnel.
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 decreased $4.2 million, or 15%, from $28.1 million as of March 31, 2009 to $23.9 million as of December 31, 2009, primarily due to a decrease in cash from $14.7 million as of March 31, 2009 to $7.9 million as of December 31, 2009. The decrease in cash was primarily due to the $27 million in share repurchases.
Net cash flow used in financing activities increased from $19.9 million for the nine months ended December 31, 2008 to $24.3 million for the nine months ended December 31, 2009, an increase of $4.5 million. The increase in cash flow used in financing activities was primarily due to an increase in purchases under the Companys share repurchase program, partially offset by an increase in the number of options exercised. During the nine months ended December 31, 2009, the Company spent $27.0 million to repurchase 924,000 shares of its common stock, including 200,000 shares which were repurchased from the Companys Chairman of the Board in September 2009 for an average price of $30.00 per share During the nine months ended December 31, 2008, the Company spent $22.2 million to repurchase 923,000 shares of its common stock. The Company has historically used cash provided by operating activities and from the exercise of stock options to repurchase stock. The Company expects it may use some of the $7.9 million of cash on its balance sheet at December 31, 2009 to repurchase additional shares of stock.
Read the The complete Report
