CorVel Corp. (CRVL, Financial) filed Quarterly Report for the period ended 2009-06-30.
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 $354.4 million; its shares were traded at around $27.41 with a P/E ratio of 19.1 and P/S ratio of 1.1. 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 expenses decreased by $0.3 million, from $10.8 million in the June 2008 quarter to $10.5 million in the June 2009 quarter, a decrease of 3.3%. This decrease is primarily due to a decrease in the Companys systems and data interface costs that were offset by an increase in the Companys marketing, product management and administrative costs. Systems cost decreased from $6.7 million to $5.9 million as the Company reduced system costs and IT infrastructure costs through a reduction in headcount and consulting costs. Marketing, product management and administrative costs increased by $0.7 million due to staffing requirements.
Revenues increased from $78.2 million for the three months ended June 30, 2008 to $81.3 million for the three months ended June 30, 2009, an increase of $3.1 million or 4.0%. The Companys patient management revenues increased $0.9 million or 2.7% from $33.3 million in the June 2008 quarter to $34.2 million in the June 2009 quarter. This increase was primarily due to growth in the Companys claims administration business, offset by slowing in the Companys case management services. The Companys network solutions revenues increased from $44.8 million in the June 2008 quarter to $47.1 million in the June 2009 quarter, an increase of $2.3 million or 5.1%. This increase was primarily due an increase in the Companys bill volume on large dollar out of network bills, which generate higher savings and therefore higher revenues for the Company.
The Companys costs of revenues increased from $58.3 million in the quarter ended June 30, 2008 to $60.2 million in the quarter ended June 30, 2009, an increase of $1.9 million or 3.3%. This increase was primarily due to labor intensive products increased revenue and the cost associated with those revenues. Cost of services related to directed care services increased by $1.0 million, while pharmacy services increased by $0.4 million, due to an increase in revenue from these services and $0.5 million from several other items.
General and administrative expense decreased from $10.8 million in the quarter ended June 30, 2008 to $10.5 million in the quarter ended June 30, 2009, a decrease of $0.3 million, or 3.3%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems cost decreased from $6.7 million to $5.9 million primarily through a reduction in headcount and the reduction in the use of consultants.
The Company has historically funded its operations and capital expenditures primarily from cash flow from operations, and to a lesser extent, stock option exercises. Net working capital increased $7.9 million, or 28%, from $28.1 million as of March 31, 2009 to $36.0 million as of June 30, 2009, primarily due to an increase in cash from $15 million as of March 31, 2009 to $20 million as of June 30, 2009.
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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 $354.4 million; its shares were traded at around $27.41 with a P/E ratio of 19.1 and P/S ratio of 1.1. 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 $1.9 million, from $58.3 million in the June 2008 quarter to $60.2 million in the June 2009 quarter, an increase of 3.3%. This increase was primarily due to labor-intensive products increased revenue and the cost associated with those revenues. Cost of services related to directed care services increased by $1.0 million, while pharmacy services increased by $0.4 million, due to an increase in revenue from these services and $0.5 million from several other items.The Companys general and administrative expenses decreased by $0.3 million, from $10.8 million in the June 2008 quarter to $10.5 million in the June 2009 quarter, a decrease of 3.3%. This decrease is primarily due to a decrease in the Companys systems and data interface costs that were offset by an increase in the Companys marketing, product management and administrative costs. Systems cost decreased from $6.7 million to $5.9 million as the Company reduced system costs and IT infrastructure costs through a reduction in headcount and consulting costs. Marketing, product management and administrative costs increased by $0.7 million due to staffing requirements.
Revenues increased from $78.2 million for the three months ended June 30, 2008 to $81.3 million for the three months ended June 30, 2009, an increase of $3.1 million or 4.0%. The Companys patient management revenues increased $0.9 million or 2.7% from $33.3 million in the June 2008 quarter to $34.2 million in the June 2009 quarter. This increase was primarily due to growth in the Companys claims administration business, offset by slowing in the Companys case management services. The Companys network solutions revenues increased from $44.8 million in the June 2008 quarter to $47.1 million in the June 2009 quarter, an increase of $2.3 million or 5.1%. This increase was primarily due an increase in the Companys bill volume on large dollar out of network bills, which generate higher savings and therefore higher revenues for the Company.
The Companys costs of revenues increased from $58.3 million in the quarter ended June 30, 2008 to $60.2 million in the quarter ended June 30, 2009, an increase of $1.9 million or 3.3%. This increase was primarily due to labor intensive products increased revenue and the cost associated with those revenues. Cost of services related to directed care services increased by $1.0 million, while pharmacy services increased by $0.4 million, due to an increase in revenue from these services and $0.5 million from several other items.
General and administrative expense decreased from $10.8 million in the quarter ended June 30, 2008 to $10.5 million in the quarter ended June 30, 2009, a decrease of $0.3 million, or 3.3%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems cost decreased from $6.7 million to $5.9 million primarily through a reduction in headcount and the reduction in the use of consultants.
The Company has historically funded its operations and capital expenditures primarily from cash flow from operations, and to a lesser extent, stock option exercises. Net working capital increased $7.9 million, or 28%, from $28.1 million as of March 31, 2009 to $36.0 million as of June 30, 2009, primarily due to an increase in cash from $15 million as of March 31, 2009 to $20 million as of June 30, 2009.
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