CorVel Announces Revenues and Earnings
Rhea-AI Summary
CorVel (NASDAQ: CRVL) reported strong financial results for Q3 FY2025. Revenue increased 13% to $228 million compared to $202 million in Q3 FY2024. Earnings per share rose 39% to $0.46 from $0.33 year-over-year.
For the nine months ended December 31, 2024, revenues reached $664 million, up from $588 million in the same period of 2023. Gross profit increased 25% to $52.9 million, achieving a 23.2% gross margin. The company maintained a strong financial position with $163 million in cash and no borrowings, while repurchasing $9.6 million of common stock during the quarter.
The company implemented generative-AI functionality to enhance document processing and claim milestone identification, with plans for further improvements to their integrated communication platform. CorVel also noted increasing demand for medical cost savings solutions through their CERIS platform.
Positive
- Revenue growth of 13% YoY to $228 million in Q3
- EPS increased 39% YoY to $0.46
- Gross profit up 25% to $52.9 million with 23.2% margin
- Strong cash position of $163 million with zero debt
- Active share repurchase program with $9.6 million buyback in Q3
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, CRVL gained 7.47%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
FORT WORTH, Texas, Feb. 04, 2025 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended December 31, 2024. Revenues for the quarter were
Third Quarter Fiscal Year 2025 Highlights
- Revenue increased
13% to$228 million , compared to the third quarter of fiscal year 2024. - Gross profit increased
25% to$52.9 million , at23.2% gross margin, compared to the third quarter of fiscal year 2024 gross profit of$42.2 million . - Diluted earnings per share increased
39% to$0.46 , compared to the third quarter of fiscal year 2024 diluted earnings per share of$0.33 . - Exited the quarter with
$163 million cash, cash equivalents, and no borrowings. - The Company repurchased
$9.6 million of common stock during the quarter.
A key to CorVel’s success and differentiation in technological innovation is the development team’s structure, the depth and tenure of the employees, and the lack of impedance in translating business needs into the development and implementation of functioning systems. Due to the depth and strength of the IT team, system updates, and new features are released weekly, which enables rapid progress on enhancements and advancements in automation and innovation. In the December quarter, generative-AI-based functionality was released to streamline document processing and identify claim milestones, and improvements are planned to enhance the integrated communication platform. These enhancements can optimize outcomes, improve the experience of injured workers, and make day-to-day tasks easier, which allows CorVel professionals to focus on higher-level activities.
During the quarter in the healthcare market, the persistent upward trend of medical costs is causing Administrative Services Only, ASO, customers to seek additional medical savings and greater cost efficiency in claims. CERIS is ideally equipped to solve the growing demand by offering multiple audits and lowering claim thresholds. With substantial expertise in prepay, CERIS is able to accommodate ASOs and Payers with the tools needed to reduce medical spend without additional administrative overhead.
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 quarters ended June 30, 2024 and September 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 Nine Months Ended December 31, 2024 (unaudited) and December 31, 2023 (unaudited)
| Quarter Ended | December 31, 2024 | December 31, 2023 | ||||||
| Revenues | $ | 227,973,000 | $ | 202,303,000 | ||||
| Cost of revenues | 175,115,000 | 160,143,000 | ||||||
| Gross profit | 52,858,000 | 42,160,000 | ||||||
| General and administrative | 22,058,000 | 19,798,000 | ||||||
| Income from operations | 30,800,000 | 22,362,000 | ||||||
| Income tax provision | 7,029,000 | 5,267,000 | ||||||
| Net income | $ | 23,771,000 | $ | 17,095,000 | ||||
| Earnings Per Share: | ||||||||
| Basic | $ | 0.46 | $ | 0.33 | ||||
| Diluted | $ | 0.46 | $ | 0.33 | ||||
| Weighted Shares | ||||||||
| Basic | 51,388,000 | 51,318,000 | ||||||
| Diluted | 52,038,000 | 51,978,000 | ||||||
| Nine Months Ended | December 31, 2024 | December 31, 2023 | ||||||
| Revenues | $ | 664,075,000 | $ | 588,078,000 | ||||
| Cost of revenues | 512,528,000 | 459,788,000 | ||||||
| Gross profit | 151,547,000 | 128,290,000 | ||||||
| General and administrative | 64,043,000 | 55,786,000 | ||||||
| Income from operations | 87,504,000 | 72,504,000 | ||||||
| Income tax provision | 18,758,000 | 15,706,000 | ||||||
| Net income | $ | 68,746,000 | $ | 56,798,000 | ||||
| Earnings Per Share: | ||||||||
| Basic | $ | 1.34 | $ | 1.11 | ||||
| Diluted | $ | 1.32 | $ | 1.09 | ||||
| Weighted Shares | ||||||||
| Basic | 51,384,000 | 51,372,000 | ||||||
| Diluted | 51,999,000 | 52,056,000 | ||||||
CorVel Corporation
Quarterly Results – Condensed Balance Sheet
December 31, 2024 (unaudited) and March 31, 2024
| December 31, 2024 | March 31, 2024 | |||||||
| Cash | $ | 162,944,000 | $ | 105,563,000 | ||||
| Customer deposits | 99,496,000 | 88,142,000 | ||||||
| Accounts receivable, net | 106,178,000 | 97,108,000 | ||||||
| Prepaid taxes and expenses | 14,543,000 | 11,418,000 | ||||||
| Property, net | 91,256,000 | 85,892,000 | ||||||
| Goodwill and other assets | 42,420,000 | 42,498,000 | ||||||
| Right-of-use asset, net | 21,940,000 | 24,058,000 | ||||||
| Total | $ | 538,777,000 | $ | 454,679,000 | ||||
| Accounts and taxes payable | $ | 16,630,000 | $ | 16,631,000 | ||||
| Accrued liabilities | 200,108,000 | 167,868,000 | ||||||
| Long-term lease liabilities | 21,189,000 | 22,533,000 | ||||||
| Paid-in capital | 246,698,000 | 233,632,000 | ||||||
| Treasury stock | (822,514,000 | ) | (793,905,000 | ) | ||||
| Retained earnings | 876,666,000 | 807,920,000 | ||||||
| Total | $ | 538,777,000 | $ | 454,679,000 | ||||
| Contact: Melissa Storan |
| Phone: 949-851-1473 |
| www.corvel.com |
FAQ
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