CorVel(CRVL) - 2023 Q2 - Quarterly Report

Revenue and Income - The Company's revenues increased to $177.4 million in the quarter ended September 30, 2022, from $157.7 million in the quarter ended September 30, 2021, an increase of $19.7 million, or 12.5%[85] - Patient management services revenues increased to $119.5 million from $104.7 million, an increase of 14.1%, primarily due to higher revenue from the Company's TPA and related services[93] - Network solutions services revenues increased to $58.0 million from $53.1 million, an increase of 9.2%, driven by enhanced bill review programs services[93] - Income before income tax provision decreased to $18.5 million in the quarter ended September 30, 2022, from $20.0 million in the quarter ended September 30, 2021, a decrease of $1.5 million, or 7.3%[88] - Diluted earnings per share decreased to $0.83 per share in the quarter ended September 30, 2022, from $0.88 per share in the quarter ended September 30, 2021, a decrease of $0.05 per share, or 5.7%[90] - Net income decreased to $31.3 million for the six months ended September 30, 2022, from $32.9 million for the same period in 2021, a decrease of $1.6 million, or 4.8%[102] - Income before income tax provision decreased to $39.7 million for the six months ended September 30, 2022, from $40.6 million for the same period in 2021, a decrease of $0.8 million, or 2.0%[106] - Revenues increased to $353.7 million for the six months ended September 30, 2022, from $310.4 million for the same period in 2021, an increase of $43.4 million, or 14.0%[103] Costs and Expenses - Cost of revenues increased to $141.3 million in the quarter ended September 30, 2022, from $121.1 million in the quarter ended September 30, 2021, an increase of $20.3 million, or 16.7%[96] - The increase in cost of revenues was primarily due to the increase in total revenues of 12.5% and a 19.4% increase in salaries due to a 13% increase in average headcount[96] - General and administrative expense increased to $17.5 million in the quarter ended September 30, 2022, from $16.7 million in the quarter ended September 30, 2021, an increase of $0.9 million, or 5.3%[87] - General and administrative expenses increased to $36.2 million for the six months ended September 30, 2022, from $33.3 million for the same period in 2021, an increase of $2.9 million, or 8.8%[105] - Cost of revenues increased to $277.8 million for the six months ended September 30, 2022, from $236.5 million for the same period in 2021, an increase of $41.3 million, or 17.5%[104] Taxation - The effective tax rate was 21.0% for the quarter ended September 30, 2022, compared to 19.7% in the quarter ended September 30, 2021[88] - The effective tax rate was 21.1% for the six months ended September 30, 2022, compared to 18.9% for the same period in 2021[106] Cash Flow and Financial Position - Cash decreased to $75.6 million as of September 30, 2022, from $97.5 million as of March 31, 2022, a decrease of $21.9 million[107] - Net cash provided by operating activities increased to $39.8 million for the six months ended September 30, 2022, from $35.2 million for the same period in 2021, an increase of $4.6 million[112] - Net cash flow used in financing activities increased to $48.2 million for the six months ended September 30, 2022, from $32.2 million for the same period in 2021, an increase of $16.0 million[114] Claims and Market Risk - Total new claims increased by 7% during the September 30, 2022 quarter compared to the September 30, 2021 quarter[93] - Total new claims increased by 8% during the six months ended September 30, 2022, compared to the same period in 2021[103] - Market risk exposure is primarily due to fluctuations in interest rates[121] - As of September 30, 2022, the fair value of cash and cash equivalents approximated its carrying value due to short-term duration[121] - A hypothetical one-percentage point increase in interest rates would not materially affect the fair values of cash and cash equivalents[121] - The company held no market risk sensitive instruments for trading purposes as of September 30, 2022[121] - No derivative financial instruments or other financial instruments were employed to hedge market risk[121] - The company had no outstanding debt as of September 30, 2022, resulting in no market risk related to debt[121]