CorVel Announces Revenues and Earnings
Rhea-AI Summary
CorVel (NASDAQ: CRVL) reported strong financial results for Q2 FY2025. Revenue increased 15% to $224 million compared to Q2 FY2024. Earnings per share grew 17% to $1.35. The company's six-month revenue reached $436 million, up from $386 million in the previous year. Gross profit rose 15% to $50.7 million with a 22.6% margin. The company maintained a strong financial position with $138 million in cash and no debt, while repurchasing $9.6 million in common stock. The results were driven by Network Solutions programs and Patient Management Segment performance, achieving 110% Net Revenue Retention.
Positive
- Revenue growth of 15% to $224 million
- EPS increase of 17% to $1.35
- Gross profit up 15% to $50.7 million
- Strong cash position of $138 million with zero debt
- 110% Net Revenue Retention rate
- $9.6 million in share repurchases completed
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, CRVL gained 5.20%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
FORT WORTH, Texas, Nov. 05, 2024 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended September 30, 2024. Revenues for the quarter were
Second Quarter Fiscal Year 2025 Highlights
- Revenue increased
15% to$224 million , compared to the second quarter of fiscal year 2024. - Gross profit increased
15% to$50.7 million , at22.6% gross margin, compared to the second quarter of fiscal year 2024 gross profit of$44.3 million . - Diluted earnings per share increased
17% to$1.35 , compared to the second quarter of fiscal year 2024 diluted earnings per share of$1.15 . - Exited the quarter with
$138 million in cash, cash equivalents, and no borrowings. - The Company repurchased
$9.6 million of common stock during the quarter.
CorVel’s conservative fiscal principles have created a strong balance sheet with positive cash flow, providing financial flexibility and allowing the Company to prioritize investments in systems, technological innovation, and growth initiatives while returning value to shareholders. The quarterly results benefited from revenue generated by several large Network Solutions programs launched in previous quarters and the continued strong new sales and operational performance of the Patient Management Segment. In addition to successfully winning and implementing new customers, the Net Revenue Retention for the quarter was
During the quarter, the Company hosted its annual Partnership meeting and attended the National Comp conference. Both events allowed meaningful interactions with strategic clients, prospects, and brokers to review program enhancements and ongoing initiatives and outline the Company's vision for products and services over the next few years. Those conversations validated the current market position and affirmed engagement, results achieved, and technological innovation as the primary drivers for increased market share.
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’s current expectations, estimates and projections about the Company, management’s beliefs, and certain assumptions made by the Company, and events beyond the Company’s control, all of which are subject to change. Such forward-looking statements include, but are not limited to, improved productivity resulting from automation and augmentation across enterprise business systems. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company’s actual results to differ materially and adversely from those expressed in any forward-looking statement results of operations and financial condition is greater than our initial assessment. The risks and uncertainties referred to above include but are not limited to factors described in this press release and the Company’s filings with the Securities and Exchange Commission, including but not limited to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2024, and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. 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 – Income Statement
Quarters and Six Months Ended September 30, 2024 (unaudited) and September 30, 2023 (unaudited)
| Quarter Ended | September 30, 2024 | September 30, 2023 | ||||||
| Revenues | $ | 224,380,000 | $ | 195,522,000 | ||||
| Cost of revenues | 173,632,000 | 151,270,000 | ||||||
| Gross profit | 50,748,000 | 44,252,000 | ||||||
| General and administrative | 22,078,000 | 19,538,000 | ||||||
| Income from operations | 28,670,000 | 24,714,000 | ||||||
| Income tax provision | 5,272,000 | 4,816,000 | ||||||
| Net income | $ | 23,398,000 | $ | 19,898,000 | ||||
| Earnings Per Share: | ||||||||
| Basic | $ | 1.37 | $ | 1.16 | ||||
| Diluted | $ | 1.35 | $ | 1.15 | ||||
| Weighted Shares | ||||||||
| Basic | 17,133,000 | 17,123,000 | ||||||
| Diluted | 17,341,000 | 17,346,000 | ||||||
| Six Months Ended | September 30, 2024 | September 30, 2023 | ||||||
| Revenues | $ | 436,102,000 | $ | 385,775,000 | ||||
| Cost of revenues | 337,200,000 | 299,644,000 | ||||||
| Gross profit | 98,902,000 | 86,131,000 | ||||||
| General and administrative | 42,198,000 | 35,989,000 | ||||||
| Income from operations | 56,704,000 | 50,142,000 | ||||||
| Income tax provision | 11,729,000 | 10,439,000 | ||||||
| Net income | $ | 44,975,000 | $ | 39,703,000 | ||||
| Earnings Per Share: | ||||||||
| Basic | $ | 2.63 | $ | 2.32 | ||||
| Diluted | $ | 2.60 | $ | 2.29 | ||||
| Weighted Shares | ||||||||
| Basic | 17,127,000 | 17,133,000 | ||||||
| Diluted | 17,327,000 | 17,365,000 | ||||||
CorVel Corporation
Quarterly Results – Condensed Balance Sheet
September 30, 2024 (unaudited) and March 31, 2024
| September 30, 2024 | March 31, 2024 | |||||||
| Cash | $ | 138,349,000 | $ | 105,563,000 | ||||
| Customer deposits | 109,110,000 | 88,142,000 | ||||||
| Accounts receivable, net | 102,393,000 | 97,108,000 | ||||||
| Prepaid taxes and expenses | 13,481,000 | 11,418,000 | ||||||
| Property, net | 89,115,000 | 85,892,000 | ||||||
| Goodwill and other assets | 42,287,000 | 42,498,000 | ||||||
| Right-of-use asset, net | 23,818,000 | 24,058,000 | ||||||
| Total | $ | 518,553,000 | $ | 454,679,000 | ||||
| Accounts and taxes payable | $ | 14,174,000 | $ | 16,631,000 | ||||
| Accrued liabilities | 198,685,000 | 167,868,000 | ||||||
| Long-term lease liabilities | 22,922,000 | 22,533,000 | ||||||
| Paid-in capital | 242,897,000 | 233,632,000 | ||||||
| Treasury stock | (813,020,000 | ) | (793,905,000 | ) | ||||
| Retained earnings | 852,895,000 | 807,920,000 | ||||||
| Total | $ | 518,553,000 | $ | 454,679,000 | ||||
Contact: Melissa Storan
Phone: 949-851-1473
www.corvel.com
FAQ
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