Stock Repurchase and Financial Performance - The company spent $37.6 million to repurchase 377,154 shares of its common stock during fiscal 2025, with a total of approximately $832 million spent on repurchases since the program's inception in 1997[20] - The company has repurchased a total of 114,476,691 shares of its common stock since the start of its repurchase program, with 2,523,309 shares remaining authorized for repurchase as of March 31, 2025[20] - The company has authorized a stock repurchase program for up to 117,000,000 shares, with 114,476,691 shares repurchased to date[135] - As of March 31, 2025, the average price paid for repurchased shares was $111.50, with a total of 80,661 shares repurchased in the first quarter of 2025[156] - The company's common stock has shown significant growth, increasing from 100.00 in 2020 to 616.24 in 2025, outperforming both the Nasdaq Composite and the Nasdaq Healthcare Services Index[161] - The company has never paid cash dividends and intends to retain future earnings for business use and stock repurchases[154] Employee and Workplace Dynamics - As of March 31, 2025, CorVel had 5,075 employees, with 91% working from home or in a hybrid arrangement due to the COVID-19 pandemic[71][72] - The company has been recognized as a "Great Place to Work Company" for five consecutive years, reflecting its commitment to employee satisfaction and organizational culture[73] - Over one-third of CorVel's employees identified as racially or ethnically diverse, and over 79% of employees identify as women[76] - The company has assessed its lease obligations and expects a reduction in office space needs due to more employees working from home[149] Technology and Innovation - The company’s proprietary bill review technology includes over 100 million individual rules, significantly improving the efficiency of the claims management process[25] - CorVel's CareMC® platform enhances claims management by providing real-time access to claims information and streamlining healthcare transaction processing through artificial intelligence[58][61] - The company continues to modernize its claims system capabilities, aiming to provide real-time information and rapid feedback through the CareMC® online portal[62] - The introduction of new technologies and software products is essential for competitiveness, but development may take longer and cost more than anticipated[102] Claims and Case Management Services - The company’s virtual care platform allows injured workers to access 24/7 nurse triage and telehealth services, facilitating timely medical intervention[49] - The company’s case management services include telephonic and field case management, focusing on early intervention and rehabilitation to reduce disability duration[45] - CorVel's vocational rehabilitation program assists injured workers with services such as ergonomic assessments and job placement, tailored to individual case needs[51] - Patient management services include claims management, case management, and 24/7 nurse triage, designed to expedite return to work for injured employees[209] Financial Risks and Competition - The healthcare cost containment industry is competitive, with CorVel facing significant competition from larger firms and potential in-house capabilities developed by customers[64] - Increased competition from national managed care providers and insurance companies could adversely affect growth and profitability[89] - A decline in referrals for patient management services has previously led to decreased revenue, influenced by factors such as workplace injury rates and regional competition[90] - Declines in workers' compensation claims could materially harm the company's financial results, as fewer work-related injuries are reported[91] - The company faces inflation risks that could increase operational costs, impacting overall profitability[98] Regulatory and Compliance Issues - The company is subject to increased scrutiny regarding privacy and data security laws, which may lead to higher liabilities and operational challenges[131] - Regulatory changes in healthcare and workers' compensation could increase operational costs and reduce demand for services, impacting overall business performance[127] - There is a risk of litigation related to the company's recommendations on medical treatment plans, which could result in significant liabilities if claims are successful[124] Internal Controls and Governance - The management assessed the effectiveness of internal control over financial reporting and concluded it was effective as of March 31, 2025, providing reasonable assurance regarding the reliability of financial reporting[173] - The independent registered public accounting firm, Haskell & White LLP, audited the consolidated financial statements and issued an attestation report on the effectiveness of internal control over financial reporting as of March 31, 2025[174] - The company has established an insider trading policy applicable to all directors, officers, and employees to ensure compliance with securities laws[181] - The Board of Directors adopted a code of ethics and business conduct applicable to all employees, officers, and directors, promoting ethical behavior within the company[182] Operational Challenges - The company may face significant operational disruptions due to natural disasters, severe weather, or pandemics, which could materially impact its financial position and results[110] - Cybersecurity risks are increasing, with a notable rise in the frequency and sophistication of attacks, potentially leading to reputational harm and financial losses[113] - The company has invested significantly in information technology and data security measures to protect sensitive information, but these expenditures may adversely affect financial condition and operational focus[113] - The company relies on its information systems for efficient data processing, and any interruptions could lead to customer cancellations and competitive disadvantages[118] Market Position and Strategy - The company operates as an independent nationwide provider of medical cost containment and managed care services, focusing on workers' compensation, automobile insurance claims, and group health insurance benefits[207] - The company serves a diverse customer base, including insurers and government agencies, with no single customer accounting for 10% or more of revenue in fiscal years 2025, 2024, or 2023[63] - The company aims for internal growth and strategic acquisitions in the workers' compensation managed care industry, but faces risks related to personnel retention and resource acquisition[85] - Future growth is contingent on the ability to manage and process claims data effectively, with no assurance that current systems will meet future demands[119]

CorVel (CRVL) Q4 2025 Earnings Call May 22, 2025 06:00 AM ET Company Participants Michael Combs - President & CEOBrandon O’Brien - Chief Financial Officer Operator Thank you for standing by. Welcome to the CorVel Corporation Quarterly Earnings Release Webcast. During the course of this webcast, CorVel Corporation may make projections or other forward looking statements regarding future events or the future financial performances of the company. CorVel wishes to caution you that these statements are only pre ...

CorVel (CRVL) Q4 2025 Earnings Call May 22, 2025 06:00 AM ET Speaker0 Thank you for standing by. Welcome to the CorVel Corporation Quarterly Earnings Release Webcast. During the course of this webcast, CorVel Corporation may make projections or other forward looking statements regarding future events or the future financial performances of the company. CorVel wishes to caution you that these statements are only predictions and that actual events or results may differ materially. CorVel refers you to the doc ...

Financial Performance - Revenues for Q4 FY 2025 were $232 million, a 12% increase from $207 million in Q4 FY 2024[6] - Earnings per share for Q4 FY 2025 were $0.51, up 38% from $0.37 in the same quarter of the prior year[6] - Fiscal year revenues reached $896 million, a 12.7% increase from $795 million in FY 2024[1] - Net income for FY 2025 was $95.2 million, compared to $76.3 million in FY 2024[8] Profitability and Margins - Gross profit for Q4 FY 2025 increased 34% to $58 million, with a gross margin of 25%[6] Cash and Assets - The company exited the quarter with $171 million in cash and cash equivalents, with no borrowings[6] - Total assets as of March 31, 2025, were $546 million, up from $455 million in the previous year[9] Strategic Initiatives - CorVel's AI integration is enhancing communication platforms and medical billing practices, improving efficiency and reducing costs[3] - The health market saw the successful launch of CERIS's first customer and a second partnership agreement, aligning with the company's long-term strategy[4] Shareholder Actions - The company repurchased $9 million of common stock during the quarter[6]

Core Points - CorVel Corporation has been recognized as a Great Place To Work for the fifth consecutive year, highlighting its commitment to employee experience and workplace culture [1][2][3] - The Great Place To Work Certification is based on real-time employee feedback, emphasizing the importance of a high-trust workplace [3][4] - CorVel utilizes advanced technologies such as artificial intelligence and machine learning to enhance healthcare management and reduce costs [6] Company Overview - CorVel Corporation partners with various entities, including employers and insurance companies, to manage workers' compensation and healthcare services [6] - The company offers a diverse suite of solutions that integrate technology with personalized service, supported by a national team [6] Industry Recognition - Great Place To Work Certification is a globally recognized benchmark for outstanding employee experience, with over 10,000 companies applying annually [4][5] - The organization has 30 years of research and data focused on improving workplace culture and employee satisfaction [5]

Core Insights - CorVel Corporation has promoted Sarah Scott to Executive Vice President of Product, where she will lead the product vision and strategy from ideation to launch and optimization [1][2][3] - Sarah Scott has 25 years of experience with CorVel, previously serving as Vice President of Network Solutions, where she oversaw key areas such as pharmacy management and network management, contributing to improved clinical outcomes and cost reductions [2][3] - The company's President and CEO, Michael Combs, expressed confidence in Sarah's ability to drive transformative growth and innovation within the organization [3] Company Overview - CorVel Corporation specializes in risk management solutions, utilizing technology such as artificial intelligence and machine learning to manage healthcare costs and episodes of care [4] - The company partners with various entities, including employers and insurance companies, to manage services related to workers' compensation, health, auto, and liability [4] - CorVel's approach combines integrated technologies with personalized services, supported by a national team to assist partners and their clients [4]

Revenue Growth - The Company's revenues increased to $228.0 million in the quarter ended December 31, 2024, from $202.3 million in the quarter ended December 31, 2023, an increase of $25.7 million, or 12.7%[73] - Patient management services revenues increased to $145.9 million from $131.8 million, an increase of $14.1 million, or 10.7%[83] - Network solutions services revenues increased to $82.1 million from $70.5 million, an increase of $11.6 million, or 16.4%[83] - Revenue for the nine months ended December 31, 2024, increased to $664.1 million, up from $588.1 million in the same period in 2023, representing a growth of $76.0 million, or 12.9%[92] Cost and Expenses - Cost of revenues increased to $175.1 million in the quarter ended December 31, 2024, from $160.1 million in the quarter ended December 31, 2023, an increase of $15.0 million, or 9.3%[74] - General and administrative expense increased to $22.1 million in the quarter ended December 31, 2024, from $19.8 million in the quarter ended December 31, 2023, an increase of $2.3 million, or 11.4%[75] - General and administrative expenses increased to $22.1 million for the three months ended December 31, 2024, from $19.8 million in the same period in 2023, an increase of $2.3 million, or 11.4%[87] - Cost of revenues increased to $512.5 million for the nine months ended December 31, 2024, from $459.8 million in the same period in 2023, an increase of $52.7 million, or 11.5%[93] - General and administrative expenses for the nine months ended December 31, 2024, were $64.0 million, up from $55.8 million in the same period in 2023, an increase of $8.3 million, or 14.8%[95] Income and Earnings - Income before income tax provision increased to $30.8 million in the quarter ended December 31, 2024, from $22.4 million in the quarter ended December 31, 2023, an increase of $8.4 million, or 37.7%[76] - Net income increased to $23.8 million in the quarter ended December 31, 2024, from $17.1 million in the quarter ended December 31, 2023, an increase of $6.7 million, or 39.1%[82] - Net income for the nine months ended December 31, 2024, was $68.7 million, compared to $56.8 million in the same period in 2023, an increase of $11.9 million, or 21.0%[91] - Diluted earnings per share increased to $0.46 per share in the quarter ended December 31, 2024, from $0.33 per share in the quarter ended December 31, 2023, an increase of $0.13 per share, or 39.4%[78] Tax Information - The effective tax rate was 22.8% for the quarter ended December 31, 2024, compared to 23.6% in the quarter ended December 31, 2023[76] - Income tax provision increased to $7.0 million for the three months ended December 31, 2024, from $5.3 million in the same period in 2023, an increase of $1.8 million, or 33.5%[88] - The effective tax rate was 22.8% for the three months ended December 31, 2024, compared to 23.6% in the same period in the prior year[88] Cash Flow - Cash and cash equivalents increased to $162.9 million as of December 31, 2024, from $105.6 million as of March 31, 2024, an increase of $57.4 million[97] - Net cash provided by operating activities increased to $104.4 million for the nine months ended December 31, 2024, from $84.0 million in the same period in 2023, an increase of $20.4 million[104] Claims and Market Risk - Total new claims increased by 10% during the three months ended December 31, 2024, compared to the three months ended December 31, 2023[83] - There have been no material changes in market risk from those addressed in the Annual Report during the three months ended December 31, 2024[111] - The Company expects future quarters of general and administrative expenses to remain at approximately 9% to 11% of revenues[87]

Financial Performance - Revenues for the quarter ended December 31, 2024, were $228 million, a 13% increase from $202 million in the same quarter of 2023[1] - Earnings per share for the quarter were $0.46, up 39% from $0.33 in the same quarter of the prior year[1] - Gross profit for the quarter increased 25% to $52.9 million, with a gross margin of 23.2% compared to $42.2 million in the same quarter of fiscal year 2024[6] - For the nine months ended December 31, 2024, revenues were $664 million, a 13% increase from $588 million during the same period in 2023[1] - Net income for the quarter was $23.8 million, compared to $17.1 million in the same quarter of the prior year[8] Cash and Assets - The company exited the quarter with $163 million in cash and cash equivalents, with no borrowings[6] - Total assets as of December 31, 2024, were $538.8 million, up from $454.7 million as of March 31, 2024[9] Strategic Initiatives - Generative-AI-based functionality was released to enhance document processing and communication platforms, improving operational efficiency[3] - CorVel's CERIS system is positioned to help ASO customers achieve greater cost efficiency in claims amidst rising medical costs[4] Stock Activity - The company repurchased $9.6 million of common stock during the quarter[6]

Group 1: SES AI Corp - SES AI reported a third-quarter GAAP loss of 9 cents per share and highlighted milestones in building a revenue pipeline from UAM and drones, including collaboration with SoftBank [3] - The company passed global EV industry safety tests for its 100Ah Li-Metal cells, marking significant progress towards production [3] - SES AI's stock gained approximately 82% over the past five days, with a 52-week high of $1.92 and an RSI value of 79, indicating potential overbought conditions [3] Group 2: CorVel Corp - CorVel announced a three-for-one forward stock split, resulting in a stock surge of around 38% over the past six months, with a 52-week high of $125.52 [7] - The company's shares closed at $115.82 on Tuesday, with an RSI value of 84, suggesting it may also be in overbought territory [7]

Core Points - CorVel Corporation announced a three-for-one forward stock split effective December 24, 2024 [1] - The number of authorized shares of common stock will be proportionately increased to accommodate the stock split [1] - Each share of common stock outstanding as of December 23, 2024, will be split into three shares [2] - Additional shares are expected to be distributed on December 24, 2024 [2] - Trading on a post-stock split adjusted basis is expected to begin on December 26, 2024 [5] - The company filed an amendment to its Fourth Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware to effect the stock split [4]