UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 30, 2013
CORVEL CORPORATION
(Exact Name of Registrant as Specified in Charter)
| DELAWARE | 000-19291 | 33-0282651 | ||
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 2010 Main Street, Suite 600, Irvine, California |
92614 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
Registrant’s telephone number, including area code (949) 851-1473
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition. |
On July 30, 2013, CorVel Corporation issued a press release announcing its financial results for the three months ended June 30, 2013. A copy of the press release is furnished herewith as Exhibit No. 99.1.
The information contained in this report and in the exhibit attached to this report is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements, Pro Forma Financial Information and Exhibits. |
(d) Exhibits
| Exhibit No. |
Description of Exhibit | |
| 99.1 | Press Release, dated July 30, 2013, announcing CorVel Corporation’s financial results for the three months ended June 30, 2013 (furnished herewith but not filed pursuant to Item 2.02). | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CORVEL CORPORATION, a Delaware corporation (Registrant) | ||||
| Date: July 30, 2013 | By: | /s/ V. Gordon Clemons | ||
| Name: | V. Gordon Clemons | |||
| Title: | Chairman of the Board, Chief Executive Officer and President | |||
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release, dated July 30, 2013, announcing CorVel Corporation’s financial results for the three months ended June 30, 2013 (furnished herewith but not filed pursuant to Item 2.02). | |
Exhibit 99.1
| Date: July 30, 2013 | CorVel Corporation | |
| 2010 Main Street | ||
| Suite 600 | ||
| Irvine, CA 92614 | ||
| FOR IMMEDIATE RELEASE | Contact: Heather H. Burnham | |
| Phone: 949-851-1473 | ||
| http://www.corvel.com | ||
CorVel Announces Revenues and Earnings
IRVINE, California, July 30, 2013 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended June 30, 2013. Revenues for the quarter ended June 30, 2013 were a record $118 million, a 13% increase over the $105 million in revenue in the quarter ended June 30, 2012. Earnings per share for the quarter ended June 30, 2013 were a record $0.40, a 38% increase over earnings per share of $0.29 for the same quarter of the prior year. The earnings per share numbers for the current and prior year have been adjusted to reflect the 2-for-1 stock split in the form of a 100% stock dividend which was paid on June 26.
Revenue growth for the quarter was driven by a 17% increase in the Company’s Patient Management service line and a 9% increase in its Network Solutions service line. The Patient Management service line includes traditional case and claims management services. Claims management growth continued; the Company’s reputation in the marketplace and introduction of new technologies were keys to the expansion of this product line. New account additions, including several marquee accounts, were awarded in the quarter.
The Company continues to invest in software development for its key product lines, including Enterprise Comp, CorVel’s integrated claims management and managed care solution. Investments include a new and expanded data center, improved artificial intelligence technology, strengthened foundational elements and ongoing projects aimed at its next generation claims and medical review software.
CorVel is expanding its line of preferred provider services (PPO), further improving patient access to its national PPO network. Directed care activities in pharmacy and ancillary networks contributed to revenue gains. The Company is also expanding its strategic emphasis and activities in the health markets.
About CorVel
CorVel Corporation is a national provider of innovative workers’ compensation solutions for employers, third party administrators, insurance companies, and government agencies seeking to control costs and promote positive outcomes. We apply technology, intelligence, and a human touch throughout the risk management process so our clients can intervene early and often while being connected to the critical intelligence they need to proactively manage risk. With a robust technology platform at its core, our connected solution is delivered by a national team of associates who are committed to helping clients design and administer programs that meet their organization’s performance goals.
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, statements relating to the Company’s results of operations, including product investment strategies, expansion of preferred provider, bill review and claims management services. 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.
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, 2013. 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 (unaudited)
Quarters ended June 30, 2012 and June 30, 2013
| June 30, 2012 | June 30, 2013 | |||||||
| Quarter Ended |
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| Revenues |
104,606,000 | 118,113,000 | ||||||
| Cost of revenues |
81,425,000 | 91,195,000 | ||||||
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| Gross profit |
23,181,000 | 26,918,000 | ||||||
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| General and administrative |
12,174,000 | 12,842,000 | ||||||
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| Income from operations |
11,007,000 | 14,076,000 | ||||||
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| Income tax expense |
4,411,000 | 5,467,000 | ||||||
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| Net income |
6,596,000 | 8,609,000 | ||||||
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| Earnings Per Share: |
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| Basic |
$ | 0.29 | $ | 0.40 | ||||
| Diluted |
$ | 0.29 | $ | 0.40 | ||||
| Weighted Shares |
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| Basic |
22,626,000 | 21,396,000 | ||||||
| Diluted |
22,852,000 | 21,584,000 | ||||||
CorVel Corporation
Quarterly Results - Condensed Balance Sheet (unaudited)
March 31, 2013 and June 30, 2013
| March 31, 2013 | June 30, 2013 | |||||||
| Cash |
19,822,000 | 25,034,000 | ||||||
| Customer deposits |
10,107,000 | 11,327,000 | ||||||
| Accounts receivable, net |
49,105,000 | 50,758,000 | ||||||
| Prepaid expenses and taxes |
7,418,000 | 4,539,000 | ||||||
| Deferred income taxes |
6,448,000 | 6,610,000 | ||||||
| Property, net |
46,584,000 | 50,509,000 | ||||||
| Goodwill and other assets |
42,898,000 | 42,606,000 | ||||||
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| Total |
182,382,000 | 191,383,000 | ||||||
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| Accounts and taxes payable |
13,587,000 | 19,510,000 | ||||||
| Accrued liabilities |
39,168,000 | 39,336,000 | ||||||
| Deferred tax liability |
18,225,000 | 18,225,000 | ||||||
| Paid in capital |
110,927,000 | 112,536,000 | ||||||
| Treasury stock |
-301,301,000 | -308,609,000 | ||||||
| Retained earnings |
301,776,000 | 310,385,000 | ||||||
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| Total |
182,382,000 | 191,383,000 | ||||||
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