CorVel(CRVL) - 2021 Q3 - Quarterly Report

Revenue Performance - The Company's revenues decreased to $141.5 million in the quarter ended December 31, 2020, down from $148.1 million in the same quarter of 2019, a decrease of $6.6 million, or 4.4%[92] - Revenues decreased to $141.5 million for the quarter ended December 31, 2020, down from $148.1 million for the same quarter in 2019, a decrease of 4.4%[101] - Revenues for the nine months ended December 31, 2020 decreased to $407.1 million, down from $445.2 million, a decrease of 8.6%[111] - Patient management services revenues decreased to $96.6 million, down 1.8%, while network solutions services revenues decreased to $45.0 million, down 9.7%[101] Cost Management - Cost of revenues decreased to $110.6 million in the quarter ended December 31, 2020, from $118.8 million in the same quarter of 2019, a decrease of $8.2 million, or 6.9%[93] - Cost of revenues decreased to $110.6 million for the quarter ended December 31, 2020, down from $118.8 million, a decrease of 6.9%[103] - Cost of revenues for the nine months ended December 31, 2020 decreased to $319.2 million, down from $350.0 million, a decrease of 8.8%[112] - General and administrative expenses decreased to $16.9 million in the quarter ended December 31, 2020, from $17.0 million in the same quarter of 2019, a decrease of $0.1 million, or 0.4%[94] - General and administrative expenses decreased to $16.9 million for the quarter ended December 31, 2020, down from $17.0 million, a decrease of 0.4%[106] Profitability - Income before income tax provision increased to $14.0 million in the quarter ended December 31, 2020, from $12.3 million in the same quarter of 2019, an increase of $1.7 million, or 13.9%[95] - Income before income tax provision increased to $14.0 million for the quarter ended December 31, 2020, up from $12.3 million, an increase of 13.9%[107] - Net income for the quarter ended December 31, 2020, was $11.4 million, compared to $9.4 million in the same quarter of 2019, an increase of $2.0 million, or 21.7%[100] - Diluted earnings per share increased to $0.63 in the quarter ended December 31, 2020, from $0.50 in the same quarter of 2019, an increase of $0.13 per share, or 26.0%[97] Cash Flow and Liquidity - Net cash provided by operating activities increased to $73.8 million for the nine months ended December 31, 2020, up from $66.3 million, an increase of 11.3%[121] - Cash and cash equivalents increased to $128.8 million as of December 31, 2020, up from $83.2 million as of March 31, 2020, an increase of 54.8%[115] - Net cash flow used in financing activities decreased to $14.9 million for the nine months ended December 31, 2020, from $40.6 million for the same period in 2019, a decrease of $25.7 million[123] - Spending on share repurchases decreased to $22.1 million for the nine months ended December 31, 2020, down from $47.5 million for the same period in 2019[123] Tax and Effective Rate - The effective tax rate for the quarter ended December 31, 2020, was 18.5%, compared to 23.7% in the same quarter of 2019[95] - The effective tax rate decreased to 18.5% for the quarter ended December 31, 2020, compared to 23.7% for the same quarter in 2019[107] Operational Changes - The Company implemented a 10% reduction in headcount during the pandemic, which contributed to a decrease in salaries and overall operational costs[88] Financial Position and Risks - Total contractual obligations as of December 31, 2020, amounted to $92,235,000, with $4,218,000 due within one year[124] - Operating and finance leases total $89,725,000, with $3,603,000 due within one year[124] - The company does not believe that inflation-related pricing pressures are material to its revenues or net income[127] - As of December 31, 2020, the company held no market risk sensitive instruments for trading purposes and had no debt outstanding[133] - The company is involved in litigation arising in the ordinary course of business, but management believes it will not result in material payments[126] - No changes in critical accounting policies have been made since the last Annual Report on Form 10-K[131] - The company does not have off-balance sheet arrangements that would materially impact its financial position[128] - Management is not currently aware of any reasonably likely events that would result in materially different amounts being reported[131]