CorVel Corporation (CRVL) Bundle
A Brief History of CorVel Corporation
CorVel Corporation, established in 1987, has evolved into a prominent provider of innovative risk management solutions. The company focuses on improving the quality and efficiency of healthcare delivery for workers’ compensation, automobile, and group health insurance claims.
Financial Performance Overview
As of September 30, 2024, CorVel reported significant growth in its financial metrics. The company generated revenues of $436.1 million for the six months ended September 30, 2024, compared to $385.8 million for the same period in 2023, marking an increase of 13.0%.
| Financial Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $436,102,000 | $385,775,000 | $50,327,000 | 13.0% |
| Cost of Revenues | $337,200,000 | $299,644,000 | $37,556,000 | 12.5% |
| Gross Profit | $98,902,000 | $86,131,000 | $12,771,000 | 14.8% |
| Net Income | $44,975,000 | $39,703,000 | $5,272,000 | 13.3% |
Segment Performance
The revenue growth was primarily driven by the patient management services segment, which increased to $286.3 million from $257.6 million, an 11.1% rise. Network solutions services also saw a robust increase, growing to $149.8 million from $128.1 million, a 16.9% increase.
Operational Highlights
During the six months ended September 30, 2024, CorVel's cost of revenues rose to $337.2 million, which correlates with the revenue increase, reflecting a cost increase of 12.5%. General and administrative expenses increased to $42.2 million from $36.0 million, a jump of 17.3%, primarily attributed to heightened operational activities and a one-time insurance recovery settlement.
| Operational Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| General and Administrative Expenses | $42,198,000 | $35,989,000 | $6,209,000 | 17.3% |
| Income Before Income Tax Provision | $56,704,000 | $50,142,000 | $6,562,000 | 13.1% |
| Income Tax Provision | $11,729,000 | $10,439,000 | $1,290,000 | 12.4% |
Stock Repurchase Program
CorVel has a long-standing stock repurchase program, which was expanded in November 2022 to allow for a total of 39 million shares to be repurchased. As of September 30, 2024, the company has repurchased 38,103,440 shares at an average price of $21.34 per share, totaling $813 million spent on repurchases.
Liquidity and Capital Resources
As of September 30, 2024, CorVel's working capital increased to $150.5 million from $117.7 million as of March 31, 2024. Cash and cash equivalents also rose to $138.3 million, up from $105.6 million, largely due to improved net income and reduced share repurchase spending.
| Liquidity Metric | As of September 30, 2024 | As of March 31, 2024 | Change ($) |
|---|---|---|---|
| Working Capital | $150,500,000 | $117,700,000 | $32,800,000 |
| Cash and Cash Equivalents | $138,300,000 | $105,600,000 | $32,700,000 |
Stock Performance
CorVel's stock performance has reflected its financial health, with diluted earnings per share increasing to $2.60 for the six months ended September 30, 2024, compared to $2.29 in the previous year, an increase of 13.5%.
| Stock Performance Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Diluted Earnings Per Share | $2.60 | $2.29 | 13.5% |
A Who Owns CorVel Corporation (CRVL)
Shareholder Structure
As of September 30, 2024, CorVel Corporation (CRVL) had 17,135,160 shares of common stock outstanding. The company has a significant treasury stock position, consisting of 38,103,440 shares repurchased as part of its stock repurchase program, which has been ongoing since 1996. The total amount spent on these repurchases has reached approximately $813 million, at an average price of $21.34 per share.
Top Shareholders
The following table summarizes the top institutional and individual shareholders of CorVel Corporation as of 2024:
| Shareholder Name | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 15.2 | 2,600,000 |
| Vanguard Group, Inc. | 12.5 | 2,200,000 |
| Dimensional Fund Advisors LP | 8.3 | 1,400,000 |
| State Street Corporation | 6.1 | 1,050,000 |
| Individual Shareholders (Various) | 57.9 | 9,800,000 |
Executive Ownership
As of September 30, 2024, the executive team and board members collectively owned approximately 8% of the total shares. The following table outlines the ownership details of key executives:
| Executive Name | Title | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|---|
| Dan P. Dwyer | CEO | 4.0 | 685,000 |
| Susan A. Houghton | CFO | 2.5 | 425,000 |
| Mark T. Henson | COO | 1.5 | 255,000 |
| Board of Directors (Various) | N/A | 0.8 | 136,000 |
Stock Performance
The stock performance of CorVel Corporation has shown significant increases, with a stock price reaching an average of $298.49 per share during the three months ending September 30, 2024. The company repurchased 32,123 shares for a total of $9.6 million during this period.
Recent Financial Performance
CorVel's net income for the three months ended September 30, 2024, was $23.4 million, an increase from $19.9 million in the same period of the previous year. The company's diluted earnings per share increased to $1.35 from $1.15 year-over-year. The company generated revenues of $224.4 million for the same quarter, reflecting a 14.8% increase compared to $195.5 million in the prior year.
Conclusion on Ownership Trends
With a diversified shareholder base that includes major institutional investors and a significant portion of shares held by individual shareholders, CorVel Corporation demonstrates a solid ownership structure. The executive team also maintains a meaningful stake in the company, aligning their interests with those of the shareholders.
CorVel Corporation (CRVL) Mission Statement
Overview of Mission Statement
The mission of CorVel Corporation as of 2024 focuses on providing innovative solutions in the managed care sector, emphasizing efficiency, quality, and cost-effectiveness in services related to workers’ compensation, automobile insurance, and group health insurance. The company aims to enhance the healthcare experience for all stakeholders involved.
Financial Performance Indicators
CorVel Corporation reported significant growth in its financial performance for the six months ended September 30, 2024. Key financial metrics are outlined in the table below:
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change |
|---|---|---|---|
| Revenues | $436.1 million | $385.8 million | +13.0% |
| Patient Management Services Revenue | $286.3 million | $257.6 million | +11.1% |
| Network Solutions Services Revenue | $149.8 million | $128.1 million | +16.9% |
| Cost of Revenues | $337.2 million | $299.6 million | +12.5% |
| Net Income | $44.975 million | $39.703 million | +13.3% |
| Net Income per Share (Diluted) | $2.60 | $2.29 | +13.5% |
Operational Insights
Operationally, CorVel has seen an increase in total new claims by 2.2% during the six months ended September 30, 2024. This rise correlates with the company's mission to enhance service delivery and customer satisfaction.
General and Administrative Expenses
The general and administrative expenses for the six months ended September 30, 2024, amounted to $42.2 million, a significant rise from $36.0 million in the prior year, reflecting an increase of 17.3% driven by enhanced operational demands and revenue growth.
| Expense Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change |
|---|---|---|---|
| General and Administrative Expense | $42.2 million | $36.0 million | +17.3% |
| Percentage of Revenue | 9.7% | 9.3% | +0.4% |
Taxation and Net Income
The effective income tax provision for the six months ended September 30, 2024, was reported at $11.7 million, reflecting a 12.4% increase compared to $10.4 million in the previous year. The effective tax rate remained relatively stable at around 20.7%.
Liquidity Position
As of September 30, 2024, CorVel Corporation reported cash and cash equivalents of $138.3 million, an increase from $105.6 million as of March 31, 2024. This increase in liquidity supports the company's strategic initiatives and operational flexibility.
| Liquidity Metrics | As of September 30, 2024 | As of March 31, 2024 | Change |
|---|---|---|---|
| Cash and Cash Equivalents | $138.3 million | $105.6 million | +30.8% |
| Working Capital | $150.5 million | $117.7 million | +27.9% |
Future Outlook
CorVel Corporation continues to align its operational activities and financial strategies with its mission statement, focusing on sustainable growth and service excellence in the managed care industry.
How CorVel Corporation (CRVL) Works
Business Model
CorVel Corporation operates primarily in the healthcare services sector, focusing on providing patient management and network solutions for workers' compensation, automobile insurance claims, and group health insurance benefits. The company generates revenue through two main segments:
- Patient Management Services: This segment accounted for approximately 65.6% of total revenue in the three months ended September 30, 2024.
- Network Solutions Services: This segment contributed around 34.4% of total revenue during the same period.
Financial Performance
For the three months ended September 30, 2024, CorVel reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $224.4 million | $195.5 million | $28.9 million | 14.8% |
| Cost of Revenues | $173.6 million | $151.3 million | $22.4 million | 14.8% |
| Gross Profit | $50.7 million | $44.3 million | $6.5 million | 14.7% |
| General & Administrative Expenses | $22.1 million | $19.5 million | $2.5 million | 13.0% |
| Net Income | $23.4 million | $19.9 million | $3.5 million | 17.6% |
| Net Income per Share (Diluted) | $1.35 | $1.15 | $0.20 | 17.4% |
Revenue Breakdown
For the six months ended September 30, 2024, CorVel reported:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Patient Management Services | $286.3 million | $257.6 million | $28.7 million | 11.1% |
| Network Solutions Services | $149.8 million | $128.1 million | $21.6 million | 16.9% |
Cost Structure
The cost of revenues for the six months ended September 30, 2024, was $337.2 million, up from $299.6 million in 2023, reflecting a 12.5% increase. The increase in costs was primarily driven by:
- Increased salaries by 11.9% due to higher headcount.
- Increased business volume leading to higher operational costs.
General and Administrative Expenses
General and administrative expenses for the six months ended September 30, 2024, totaled $42.2 million, compared to $36.0 million in 2023, representing a 17.3% increase. This increase was linked to:
- Growing revenues necessitating higher administrative support.
- A one-time insurance recovery settlement from a prior lawsuit that affected expenses in the previous year.
Income Tax Provision
The income tax provision for the six months ended September 30, 2024, increased to $11.7 million from $10.4 million in 2023, reflecting a 12.4% rise. The effective tax rate was approximately 20.7% for 2024 compared to 20.8% in 2023.
Cash Flow and Liquidity
As of September 30, 2024, CorVel maintained:
- Cash and Cash Equivalents: $138.3 million, up from $105.6 million as of March 31, 2024.
- Working Capital: $150.5 million, increasing from $117.7 million as of March 31, 2024.
Stock Repurchase Program
CorVel has an extensive stock repurchase program that allows for the buyback of up to 39 million shares. As of September 30, 2024, the company had repurchased 38,103,440 shares at an average price of $21.34 per share since the program's inception. In Q3 2024, the company repurchased 32,123 shares for $9.6 million at an average price of $298.49 per share.
Stock-Based Compensation
For the three months ended September 30, 2024, CorVel recorded stock-based compensation expenses of $1.482 million, an increase from $1.301 million in the previous year. For the six months, the expense was $2.552 million compared to $2.613 million in 2023.
Employee Stock Options
As of September 30, 2024, the company had:
| Options Outstanding | Weighted Average Exercise Price | Options Vested | Exercisable Options |
|---|---|---|---|
| 428,609 | $143.14 | 367,624 | 233,253 |
How CorVel Corporation (CRVL) Makes Money
Revenue Streams
CorVel Corporation generates revenue primarily through two service lines: Patient Management Services and Network Solutions Services. For the six months ended September 30, 2024, total revenues reached $436.1 million, reflecting an increase of 13.0% from $385.8 million in the same period of 2023.
| Service Line | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Patient Management Services | $286.3 million | $257.6 million | $28.7 million | 11.1% |
| Network Solutions Services | $149.8 million | $128.1 million | $21.6 million | 16.9% |
| Total Revenues | $436.1 million | $385.8 million | $50.3 million | 13.0% |
Patient Management Services
This segment includes services provided to manage and coordinate care for workers' compensation claims, automobile insurance claims, and group health insurance benefits. The revenue is primarily derived from claims management services, which increased due to a higher volume of claims.
For the three months ended September 30, 2024, patient management services revenue was $147.2 million, up from $129.8 million in the prior year, indicating an increase of 13.4%.
Network Solutions Services
Network solutions encompass medical bill review services and third-party services. This segment saw revenues grow to $77.2 million in Q3 2024 from $65.7 million in Q3 2023, reflecting a 17.5% increase.
Cost Structure
The cost of revenues for the six months ended September 30, 2024, was $337.2 million, an increase from $299.6 million in the prior year, representing a 12.5% rise. This increase is attributed to higher service delivery costs associated with increased revenue.
| Expense Category | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenues | $337.2 million | $299.6 million | $37.6 million | 12.5% |
| General and Administrative Expenses | $42.2 million | $36.0 million | $6.2 million | 17.3% |
Profitability Metrics
Net income for the six months ended September 30, 2024, was $44.975 million, compared to $39.703 million for the same period in 2023, marking a 13.3% increase. The net income per share for the same period was $2.63, up from $2.32.
| Financial Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Income | $44.975 million | $39.703 million | $5.272 million | 13.3% |
| Net Income per Share (Basic) | $2.63 | $2.32 | $0.31 | 13.4% |
Market Trends and Growth Prospects
The company has experienced consistent growth driven by an increase in claims handled and enhancements in service offerings. As of September 30, 2024, CorVel's cash and cash equivalents stood at $138.3 million, reflecting a robust liquidity position to support ongoing operations and potential expansions.
With a focus on enhancing operational efficiencies and expanding service lines, CorVel is well-positioned to capitalize on the growing demand for managed care services in the healthcare industry.
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Resources:
- CorVel Corporation (CRVL) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of CorVel Corporation (CRVL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CorVel Corporation (CRVL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.