CorVel Corp. (CRVL, Financial) filed Quarterly Report for the period ended 2009-09-30.
CorVel Corporation is an independent nationwide provider of managed care services designed to address the medical issues of healthcare benefits provided under workers' compensationgroup health and auto insurance policies. The Company's services includebut are not limited toautomated medical fee auditingnational preferred provider networkearlyinterventionutilization reviewmedical case managementvocationalrehabilitation servicestelephonic case management and independent medicalexaminations. Corvel Corp. has a market cap of $387.01 million; its shares were traded at around $30.85 with a P/E ratio of 18.58 and P/S ratio of 1.25. 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 costs of revenues increased from $59.0 million in the quarter ended September 30, 2008 to $61.6 million in the quarter ended September 30, 2009, an increase of $2.6 million or 4.4%. This increase was primarily due to the costs associated with the increase in demand for the Companys CareIQ and CorCareRx services, which are high-cost services. CorCareRX cost of goods sold increased $1.4 million, while CareIQ costs increased $1.0 million with $0.2 million of expenses for other costs.
General and administrative expense decreased from $10.7 million in the quarter ended September 30, 2008 to $10.2 million in the quarter ended September 30, 2009, a decrease of $0.5 million, or 4.8%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems cost decreased from $6.4 million to $5.9 million due to a reduction of employees and consultants.
Revenues increased from $156.1 million for the six months ended September 30, 2008 to $163.7 million for the six months ended September 30, 2009, an increase of $7.6 million or 4.9%. The Companys patient management revenues increased $3.7 million or 5.4% from $67.8 million in the six months ended September 2008 to $71.5 million in the six months ended September 2009. This increase was primarily due to improvements in customer utilization of the Companys Enterprise Comp services. The Companys network solutions revenues increased from $88.3 million in the six months ended September 2008 to $92.2 million in the six months ended September 2009, an increase of $3.9 million or 4.4%. This increase was primarily due to an increase in customer utilization of the Companys CorCareRx services.
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 $1.9 million, or 7%, from $28.1 million as of March 31, 2009 to $26.2 million as of September 30, 2009, primarily due to a decrease in cash from $14.7 million as of March 31, 2009 to $12.0 million as of September 30, 2009. The decrease in cash was primarily due to the $17 million in share repurchases.
Net cash flow used in financing activities increased from $2.9 million for the six months ended September 30, 2008 to $15.6 million for the six months ended September 30, 2009, an increase of $12.6 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 six months ended September 30, 2009, the Company spent $17.4 million to repurchase 611,000 shares of its common stock. During the six months ended September 30, 2008, the Company spent $5.2 million to repurchase 155,000 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 $12.0 million of cash on its balance sheet at September 30, 2009 to repurchase additional shares of stock.
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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' compensationgroup health and auto insurance policies. The Company's services includebut are not limited toautomated medical fee auditingnational preferred provider networkearlyinterventionutilization reviewmedical case managementvocationalrehabilitation servicestelephonic case management and independent medicalexaminations. Corvel Corp. has a market cap of $387.01 million; its shares were traded at around $30.85 with a P/E ratio of 18.58 and P/S ratio of 1.25. 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:
Revenues increased from $77.9 million for the three months ended September 30, 2008 to $82.4 million for the three months ended September 30, 2009, an increase of $4.5 million or 5.9%. The increase was primarily due to an increase in the Companys patient management revenues of $2.9 million or 8.4% from $34.4 million in the September 2008 quarter to $37.2 million in the September 2009 quarter. Improvements in customer utilization of the Companys Enterprise Comp services were the primary reason for the increase in patient management service revenues. Similarly, network solutions revenue increased $1.7 million or 3.9%, from $43.5 million in the September 2008 quarter to $45.2 million in the September 2009 quarter. This increase was due to an improvement in the Companys customer utilization of CorCareRx services.The Companys costs of revenues increased from $59.0 million in the quarter ended September 30, 2008 to $61.6 million in the quarter ended September 30, 2009, an increase of $2.6 million or 4.4%. This increase was primarily due to the costs associated with the increase in demand for the Companys CareIQ and CorCareRx services, which are high-cost services. CorCareRX cost of goods sold increased $1.4 million, while CareIQ costs increased $1.0 million with $0.2 million of expenses for other costs.
General and administrative expense decreased from $10.7 million in the quarter ended September 30, 2008 to $10.2 million in the quarter ended September 30, 2009, a decrease of $0.5 million, or 4.8%. This decrease is primarily due to a decrease in the Companys systems and data interface costs. Systems cost decreased from $6.4 million to $5.9 million due to a reduction of employees and consultants.
Revenues increased from $156.1 million for the six months ended September 30, 2008 to $163.7 million for the six months ended September 30, 2009, an increase of $7.6 million or 4.9%. The Companys patient management revenues increased $3.7 million or 5.4% from $67.8 million in the six months ended September 2008 to $71.5 million in the six months ended September 2009. This increase was primarily due to improvements in customer utilization of the Companys Enterprise Comp services. The Companys network solutions revenues increased from $88.3 million in the six months ended September 2008 to $92.2 million in the six months ended September 2009, an increase of $3.9 million or 4.4%. This increase was primarily due to an increase in customer utilization of the Companys CorCareRx services.
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 $1.9 million, or 7%, from $28.1 million as of March 31, 2009 to $26.2 million as of September 30, 2009, primarily due to a decrease in cash from $14.7 million as of March 31, 2009 to $12.0 million as of September 30, 2009. The decrease in cash was primarily due to the $17 million in share repurchases.
Net cash flow used in financing activities increased from $2.9 million for the six months ended September 30, 2008 to $15.6 million for the six months ended September 30, 2009, an increase of $12.6 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 six months ended September 30, 2009, the Company spent $17.4 million to repurchase 611,000 shares of its common stock. During the six months ended September 30, 2008, the Company spent $5.2 million to repurchase 155,000 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 $12.0 million of cash on its balance sheet at September 30, 2009 to repurchase additional shares of stock.
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