CorVel(US:CRVL)2024-01-31 16:00Revenue Growth - The Company's revenues increased to $202.3 million for the quarter ended December 31, 2023, up from $179.4 million in the same quarter of 2022, representing a growth of $22.9 million or 12.8%[75] - Patient management services revenues rose to $131.8 million, an increase of 10.8% from $118.9 million, primarily driven by higher revenue from TPA and related services[83] - Network solutions services revenues increased to $70.5 million, up 16.7% from $60.5 million, mainly due to growth with existing customers[83] - Revenues for the nine months ended December 31, 2023, reached $588.1 million, an increase of $55.0 million or 10.3% compared to $533.1 million for the same period in 2022[93] - Patient management services revenues increased to $389.4 million, up 10.2% from $353.2 million, primarily due to higher revenue from TPA and related services[93] Expenses - Cost of revenues increased to $160.1 million, up from $139.0 million, reflecting a rise of $21.1 million or 15.2%, primarily due to increased revenues and a 10% rise in salaries[86] - General and administrative expenses increased to $19.8 million, up from $18.1 million, a rise of $1.7 million or 9.2%[77] - Cost of revenues rose to $459.8 million for the nine months ended December 31, 2023, an increase of $43.0 million or 10.3% from $416.8 million in the prior year[94] - General and administrative expenses increased to $19.8 million for the three months ended December 31, 2023, up from $18.1 million in the same period in 2022, representing a 9.2% increase[88] Profitability - Net income for the quarter was $17.1 million, compared to $16.8 million in the same quarter of 2022, an increase of $246,000 or 1.5%[82] - Net income for the nine months ended December 31, 2023, was $56.8 million, an increase of $8.6 million or 17.8% from $48.2 million in the same period in 2022[92] - Income before income tax provision increased to $72.5 million, up 17.0% from $62.0 million in the prior year[96] Earnings Per Share - Diluted earnings per share increased to $0.99, up from $0.96, representing a growth of $0.03 or 3.1%[80] Taxation - The effective tax rate decreased to 23.6% for the quarter ended December 31, 2023, compared to 24.2% in the same quarter of 2022[78] - The effective tax rate decreased to 21.7% for the nine months ended December 31, 2023, compared to 22.1% in the same period in 2022[96] Cash and Market Risk - Cash increased to $107.0 million as of December 31, 2023, up from $71.3 million as of March 31, 2023, an increase of $35.7 million[97] - Net cash provided by operating activities increased to $84.0 million for the nine months ended December 31, 2023, up from $69.5 million in the same period in 2022, an increase of $14.5 million[102] - The company expects its cash and cash equivalents will be sufficient to meet its cash requirements for the next 12 months, including obligations and stock repurchase programs[101] - As of December 31, 2023, the fair value of the company's portfolio of cash and cash equivalents approximated its carrying value due to short-term duration[112] - The company estimated market risk as a potential decrease in fair value from a hypothetical one-percentage point increase in interest rates, with resulting fair values not materially different from carrying values[112] - The company held no market risk sensitive instruments for trading purposes as of December 31, 2023[113] - The company did not employ any derivative financial instruments or other financial instruments to hedge market risk[113] - The company had no debt outstanding as of December 31, 2023, resulting in no market risk related to debt[113] Claims - The Company experienced a 1.6% increase in total new claims for the quarter ended December 31, 2023, compared to the same period in 2022[83] - The percentage of total revenue from patient management services was 65.1% for the quarter ended December 31, 2023, compared to 66.3% in the previous year[81]