CorVel Announces Revenues and Earnings

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Neutral)

Insights

CorVel 's Q1 FY2025 results demonstrate solid financial performance and strategic initiatives. The company reported revenue of $212 million, an 11% increase year-over-year, indicating robust growth. The gross profit surge of 15% to $48.2 million outpaced revenue growth, suggesting improved operational efficiency.

The diluted EPS of $1.25, up 10% from the previous year, shows consistent bottom-line growth. However, the slower EPS growth compared to revenue and gross profit growth might indicate increased operating expenses or a higher effective tax rate, which warrants further investigation.

CorVel's strong balance sheet, with $132 million in cash and no debt, provides financial flexibility for future investments or potential acquisitions. The $9.5 million stock repurchase demonstrates confidence in the company's future and a commitment to returning value to shareholders.

The introduction of an enhanced communications platform and the integration of AI in bill review processes could potentially lead to improved operational efficiency and cost containment. These technological advancements may contribute to maintaining or expanding profit margins in the future, although their full impact remains to be seen in subsequent quarters.

CorVel's strategic focus on technological innovation is evident in their recent developments. The introduction of an enhanced communications platform integrated into their proprietary claims system, CareMC, represents a significant advancement in the industry. This integration likely streamlines workflows, improves data accessibility and enhances overall efficiency in claims processing.

The emphasis on advanced security features within the platform is crucial, especially given the sensitive nature of healthcare data. By prioritizing patient security, CorVel is not only complying with regulatory requirements but also building trust with clients and end-users.

The implementation of artificial intelligence in clinical bill review is a forward-thinking move. AI's ability to identify anomalies and document activities can significantly reduce human error, speed up processing times and improve accuracy in cost containment efforts. This application of AI demonstrates CorVel's commitment to leveraging cutting-edge technology to enhance its service offerings.

The company's vision of using AI in partnership with human expertise is a balanced approach that could set a new standard in the industry. By augmenting human capabilities rather than replacing them, CorVel is positioning itself to deliver improved outcomes, enhanced user experiences and increased job satisfaction for its team members.

07/30/2024 - 06:15 AM

FORT WORTH, Texas, July 30, 2024 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended June 30, 2024. Revenues for the quarter were $212 million, an increase from $190 million in the June quarter of 2023. Earnings per share for the quarter were $1.25, compared to $1.14 in the same quarter of the prior year.听听

First Quarter Fiscal Year 2025 Highlights听

Revenue increased 11% to $212 million, compared to first quarter of fiscal year 2024.
Gross profit increased 15% to $48.2 million, at 22.7% gross margin, compared to first quarter of fiscal year 2024 gross profit of $41.9 million.
Diluted earnings per share increased 10% to $1.25, compared to first quarter of fiscal year 2024 diluted earnings per share of $1.14.
Exited the quarter with $132 million of cash, cash equivalents, and no borrowings.
The Company repurchased $9.5 million of common stock during the quarter.

During the quarter, the Company introduced an enhanced communications platform integrated in CorVel鈥檚 proprietary claims system, Care^MC. This platform benefits claim staff and injured workers and yields a level of efficiency that is unique in the industry. Additionally, the platform utilizes the advanced security features embedded in the system, reducing patient security risk.

Artificial intelligence is also being used in the review of clinical bills to identify anomalies and document activities. This utilization of AI allows the users to focus on reviewing procedures and achieving optimal cost containment. The Company believes the use of AI in partnership with the CorVel team will provide improved outcomes for partners, enhanced experience for workers with injuries, and increased job satisfaction for team members. 听

About CorVel

CorVel Corporation applies technology including artificial intelligence, machine learning and natural language processing to enhance the managing of episodes of care and the related health care costs. We partner with employers, third-party administrators, insurance companies and government agencies in managing workers鈥� compensation and health, auto and liability services. Our diverse suite of solutions combines our integrated technologies with a human touch. CorVel's customized services, delivered locally, are backed by a national team to support clients as well as their customers and patients.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company鈥檚 current expectations, estimates and projections about the Company, management鈥檚 beliefs, and certain assumptions made by the Company, and events beyond the Company鈥檚 control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to our improved productivity resulting from automation and augmentation across enterprise business systems.听 These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company鈥檚 actual results to differ materially and adversely from those expressed in any forward-looking statement, including the risk that the impact of the COVID-19 pandemic on our business, results of operations and financial condition is greater than our initial assessment.听 The risks and uncertainties referred to above include but are not limited to factors described in this press release and the Company鈥檚 filings with the Securities and Exchange Commission, including but not limited to 鈥淩isk Factors鈥� in the Company鈥檚 Annual Report on Form 10-K for the year ended March 31, 2024 and the Company鈥檚 Quarterly Report on Form 10-Q for the quarters ended June 30, 2023, September 30, 2023 and December 31, 2023. The forward-looking statements in this press release speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

CorVel Corporation Quarterly Results 鈥� Income Statement Quarters Ended June 30, 2024 (unaudited) and June 30, 2023 (unaudited)								听
Quarter Ended	听	June听30, 2024		听	听	June听30, 2023		听
Revenues	听	$	211,722,000	听	听	$	190,253,000	听
Cost of revenues	听	听	163,567,000	听	听	听	148,375,000	听
Gross profit	听	听	48,155,000	听	听	听	41,878,000	听
General and administrative	听	听	20,120,000	听	听	听	16,450,000	听
Income from operations	听	听	28,035,000	听	听	听	25,428,000	听
Income tax provision	听	听	6,458,000	听	听	听	5,623,000	听
Net income	听	$	21,577,000	听	听	$	19,805,000	听
Earnings Per Share:	听	听		听	听	听		听
Basic	听	$	1.26	听	听	$	1.16	听
Diluted	听	$	1.25	听	听	$	1.14	听
Weighted Shares	听	听		听	听	听		听
Basic	听	听	17,122,000	听	听	听	17,144,000	听
Diluted	听	听	17,313,000	听	听	听	17,385,000	听

CorVel Corporation Quarterly Results 鈥� Condensed Balance Sheet June 30, 2024 (unaudited) and March 31, 2024								听
听	听	June听30, 2024		听	听	March听31, 2024		听
Cash	听	$	131,908,000	听	听	$	105,563,000	听
Customer deposits	听	听	94,022,000	听	听	听	88,142,000	听
Accounts receivable, net	听	听	97,749,000	听	听	听	97,108,000	听
Prepaid taxes and expenses	听	听	9,579,000	听	听	听	11,418,000	听
Property, net	听	听	86,865,000	听	听	听	85,892,000	听
Goodwill and other assets	听	听	42,808,000	听	听	听	42,498,000	听
Right-of-use asset, net	听	听	23,241,000	听	听	听	24,058,000	听
Total	听	$	486,172,000	听	听	$	454,679,000	听
Accounts and taxes payable	听	$	18,681,000	听	听	$	16,631,000	听
Accrued liabilities	听	听	181,904,000	听	听	听	167,868,000	听
Long-term lease liabilities	听	听	21,714,000	听	听	听	22,533,000	听
Paid-in capital	听	听	237,807,000	听	听	听	233,632,000	听
Treasury stock	听	听	(803,431,000	)	听	听	(793,905,000	)
Retained earnings	听	听	829,497,000	听	听	听	807,920,000	听
Total	听	$	486,172,000	听	听	$	454,679,000	听

Contact: Melissa Storan
Phone: 949-851-1473
www.corvel.com

FAQ

What was CorVel's (CRVL) revenue for Q1 FY2025?

CorVel reported revenue of $212 million for Q1 FY2025, an 11% increase from $190 million in the same quarter of the previous year.

How much did CorVel's (CRVL) earnings per share grow in Q1 FY2025?

CorVel's diluted earnings per share increased 10% to $1.25 in Q1 FY2025, compared to $1.14 in the same quarter of the previous year.

What was CorVel's (CRVL) gross profit and margin for Q1 FY2025?

CorVel's gross profit for Q1 FY2025 increased 15% to $48.2 million, with a gross margin of 22.7%.

How much cash did CorVel (CRVL) have at the end of Q1 FY2025?

CorVel exited Q1 FY2025 with $132 million in cash and cash equivalents, with no borrowings.

What new technology did CorVel (CRVL) introduce in Q1 FY2025?

CorVel introduced an enhanced communications platform integrated into its CareMC claims system and implemented artificial intelligence for clinical bill review and anomaly detection.

黑料网