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): January 30, 2018
CORVEL CORPORATION
(Exact name of Registrant as Specified in Its Charter)
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DELAWARE |
000-19291 |
33-0282651 |
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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2010 Main Street, Suite 600, |
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92614 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (949) 851-1473
Not Applicable
(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 (see General Instructions A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 30, 2018, CorVel Corporation issued a press release announcing its financial results for the three and nine months ended December 31, 2017. 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
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Exhibit Number |
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Description |
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99.1 |
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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 thereunto duly authorized.
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CORVEL CORPORATION, a Delaware corporation (Registrant) |
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Date: January 30, 2018 |
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By: |
/s/ Kenneth S. Cragun |
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Kenneth S. Cragun |
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Chief Financial Officer |
Exhibit 99.1
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Date: January 30, 2018 |
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CorVel Corporation |
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2010 Main Street |
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Suite 600 |
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Irvine, CA 92614 |
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FOR IMMEDIATE RELEASE |
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Contact: Stefani P. Wendel |
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Phone: 949-851-1473 |
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http://www.corvel.com |
CorVel Announces Revenues and Earnings
IRVINE, California, January 30, 2018 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended December 31, 2017. Revenues for the quarter ended December 31, 2017 were $141 million, an increase of 10% from revenues of $128 million in the same quarter of the prior year. Earnings per share for the quarter ended December 31, 2017 were $0.50, an increase of 39% from earnings per share of $0.36 in the same quarter of the prior year.
Revenues for the nine months ended December 31, 2017 were $415 million, up 8% from $385 million in the same period of the prior year. Earnings per share for the nine months ended December 31, 2017 were $1.41 and were $1.09 for the same period of the prior year.
Revenue growth for the quarter was driven by an increase in the Company’s claims management services. The successful implementation and evolution of the Company’s adjuster interface, CareMC EdgeSM, has gained interest in the marketplace. The Company’s Network Solutions sold in the wholesale market increased revenues as well. The solutions, particularly in the CERiS segment, continue to expand services into the clinical and coding areas of line item hospital bill payment integrity.
The Company is launching a Managed Accounts Payable Automation service under its Symbeo business franchise. The Treasury and fulfillment service under Symbeo eliminates the manual functions associated with preparing invoices for payment. The Company remains committed to the strategy of using technology to differentiate the solutions delivered to customers, integrating previously siloed information to improve financial and healthcare outcomes.
About CorVel
CorVel Corporation is a national provider of innovative workers’ compensation, liability, auto, and health solutions for employers, insurance companies, third party administrators 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, 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, 2017 and the Company’s Quarterly Report on Form 10-Q for the quarters ended June 30, 2017 and September 30, 2017. 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, 2016 (unaudited) and December 31, 2017 (unaudited)
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Quarter Ended |
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December 31, 2016 |
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December 31, 2017 |
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Revenues |
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128,403,000 |
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140,734,000 |
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Cost of revenues |
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102,826,000 |
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115,165,000 |
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Gross profit |
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25,577,000 |
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25,569,000 |
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General and administrative |
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14,134,000 |
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15,496,000 |
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Income from operations |
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11,443,000 |
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10,073,000 |
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Income tax provision |
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4,394,000 |
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504,000 |
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Net income |
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7,049,000 |
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9,569,000 |
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Earnings Per Share: |
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Basic |
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$ |
0.36 |
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$ |
0.51 |
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Diluted |
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$ |
0.36 |
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$ |
0.50 |
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Weighted Shares |
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Basic |
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19,426,000 |
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18,849,000 |
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Diluted |
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19,549,000 |
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19,121,000 |
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Nine Months Ended |
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December 31, 2016 |
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December 31, 2017 |
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Revenues |
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385,081,000 |
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414,777,000 |
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Cost of revenues |
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308,010,000 |
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334,675,000 |
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Gross profit |
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77,071,000 |
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80,102,000 |
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General and administrative |
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42,239,000 |
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43,794,000 |
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Income from operations |
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34,832,000 |
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36,308,000 |
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Income tax provision |
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13,340,000 |
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9,571,000 |
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Net income |
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21,492,000 |
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26,737,000 |
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Earnings Per Share: |
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Basic |
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$ |
1.10 |
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$ |
1.42 |
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Diluted |
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$ |
1.09 |
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$ |
1.41 |
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Weighted Shares |
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Basic |
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19,526,000 |
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18,806,000 |
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Diluted |
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19,679,000 |
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19,029,000 |
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CorVel Corporation
Quarterly Results – Condensed Balance Sheet
March 31, 2017 (audited) and December 31, 2017 (unaudited)
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March 31, 2017 |
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December 31, 2017 |
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Cash |
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28,611,000 |
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53,593,000 |
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Customer deposits |
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32,471,000 |
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41,900,000 |
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Accounts receivable, net |
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62,841,000 |
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63,487,000 |
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Prepaid taxes and expenses |
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4,944,000 |
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7,610,000 |
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Property, net |
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63,042,000 |
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63,657,000 |
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Goodwill and other assets |
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43,474,000 |
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41,748,000 |
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Total |
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235,383,000 |
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271,995,000 |
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Accounts and taxes payable |
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16,583,000 |
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16,907,000 |
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Accrued liabilities |
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73,468,000 |
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92,968,000 |
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Deferred tax liability |
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6,686,000 |
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1,940,000 |
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Paid-in capital |
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135,686,000 |
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141,669,000 |
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Treasury stock |
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(419,802,000 |
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(430,988,000 |
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Retained earnings |
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422,762,000 |
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449,499,000 |
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Total |
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235,383,000 |
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271,995,000 |
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