CorVel(CRVL) - 2025 Q2 - Quarterly Report

Revenue Growth - The Company's revenues increased to $224.4 million in the quarter ended September 30, 2024, from $195.5 million in the quarter ended September 30, 2023, an increase of $28.9 million, or 14.8%[74] - Patient management services revenues increased to $147.2 million from $129.8 million, an increase of $17.4 million, or 13.4%[82] - Network solutions services revenues increased to $77.2 million from $65.7 million, an increase of $11.5 million, or 17.5%[82] - Revenues for the six months ended September 30, 2024, reached $436.1 million, an increase of $50.3 million or 13.0% compared to $385.8 million for the same period in 2023[90] - Patient management services revenues increased to $286.3 million, up 11.1% from $257.6 million, primarily due to higher revenue from TPA and related services[90] Cost and Expenses - Cost of revenues increased to $173.6 million in the quarter ended September 30, 2024, from $151.3 million in the quarter ended September 30, 2023, an increase of $22.4 million, or 14.8%[75] - General and administrative expense increased to $22.1 million in the quarter ended September 30, 2024, from $19.5 million in the quarter ended September 30, 2023, an increase of $2.5 million, or 13.0%[76] - Cost of revenues rose to $337.2 million for the six months ended September 30, 2024, an increase of $37.6 million or 12.5% from $299.6 million in the prior year[91] - General and administrative expenses increased to $22.1 million for the three months ended September 30, 2024, up from $19.5 million in the same period last year, representing a 13.0% increase[86] - General and administrative expenses represented approximately 10% of revenues for the quarter ended September 30, 2024[86] - The company expects future general and administrative expenses to remain between 9% to 11% of revenues[86] Income and Earnings - Income before income tax provision increased to $28.7 million in the quarter ended September 30, 2024, from $24.7 million in the quarter ended September 30, 2023, an increase of $4.0 million, or 16.0%[77] - Diluted earnings per share increased to $1.35 per share in the quarter ended September 30, 2024, from $1.15 per share in the quarter ended September 30, 2023, an increase of $0.20 per share, or 17.4%[78] - Net income for the six months ended September 30, 2024, was $44.975 million, a 13.3% increase from $39.703 million in the same period last year[89] Tax Information - The effective tax rate was 18.4% for the quarter ended September 30, 2024, compared to 19.5% in the quarter ended September 30, 2023[77] - The effective tax rate for the six months ended September 30, 2024, was 20.7%, slightly down from 20.8% in the same period in 2023[93] Cash Flow and Liquidity - Cash and cash equivalents increased to $138.3 million as of September 30, 2024, up from $105.6 million as of March 31, 2024, reflecting an increase of $32.8 million[94] - Net cash provided by operating activities increased to $62.7 million for the six months ended September 30, 2024, compared to $54.6 million in the same period last year, an increase of $8.1 million[99] Market and Industry Conditions - Total new claims increased by 5% during the three months ended September 30, 2024, compared to the same period in 2023[82] - General industry conditions indicate that the occupational injury count for 2022 was 2.34 million, showing an increase from 2.24 million in 2021, but not returning to pre-pandemic levels[68] Accounting Policies and Standards - The Company has not experienced any material changes in its significant accounting policies since the last Annual Report on Form 10-K for the fiscal year ended March 31, 2024[104] - There have been no material changes in market risk as reported in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024[106] - Recent accounting standards updates have been adopted, as detailed in the accompanying unaudited consolidated financial statements[105]