CorVel(CRVL) - 2024 Q4 - Annual Results

Financial Performance Summary CorVel reported strong financial growth in both the fourth quarter and full fiscal year 2024, driven by increased revenues and diluted EPS Fourth Quarter Fiscal 2024 Performance CorVel reported a 11.7% year-over-year increase in revenue to $207 million and a 7.7% rise in diluted EPS to $1.12 for the fourth quarter ended March 31, 2024. Net income for the quarter grew to $19.5 million from $18.2 million in the prior-year period Q4 Fiscal 2024 vs. Q4 Fiscal 2023 Performance | Metric | Q4 FY 2024 | Q4 FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $207.2M | $185.4M | +11.7% | | Net Income | $19.5M | $18.2M | +7.1% | | Diluted EPS | $1.12 | $1.04 | +7.7% | Full Fiscal Year 2024 Performance For the full fiscal year ended March 31, 2024, revenues grew by 10.7% to $795 million, and diluted EPS increased by 16.7% to $4.40. This growth was significantly driven by an 11% increase in Patient Management services Full Fiscal Year 2024 vs. 2023 Performance | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $795.3M | $718.6M | +10.7% | | Net Income | $76.3M | $66.4M | +14.9% | | Diluted EPS | $4.40 | $3.77 | +16.7% | Business and Operational Highlights The company's growth was driven by strong Patient Management services and market positioning, complemented by strategic investments in Generative AI and high client retention Business Performance and Market Position The company's Patient Management services, which include revenue from Third Party Administration (TPA) customers, were a primary driver of growth, increasing 11% year-over-year. CorVel's market position was reinforced by its third-place ranking in Workers' Compensation revenue among TPAs by Business Insurance - Patient Management services, including TPA customers, saw an 11% revenue increase, significantly contributing to the overall fiscal year revenue growth[3] - The company achieved a third-place ranking in Workers' Compensation revenue on Business Insurance's 2024 TPA Rankings and Directory[3] Recent Developments and Strategic Initiatives Fiscal year 2024 was marked by a strong increase in new bookings and a high net revenue retention rate of 108%. A key strategic initiative was the investment in and implementation of a Generative AI (GAI)-powered SaaS platform aimed at automating tasks and enhancing workflow efficiencies in the managed care market - Fiscal year 2024 experienced a solid increase in new bookings and achieved a net revenue retention rate of 108%[4] - Invested in and implemented Generative AI (GAI) functionality, introducing a GAI-powered SaaS platform to automate tasks and increase workflow efficiencies for partners[5] Detailed Financial Statements CorVel's detailed financial statements show robust growth in revenues and net income, alongside a significant increase in total assets and cash reserves Income Statement The income statement for the fiscal year ended March 31, 2024, shows revenues of $795.3 million and a gross profit of $171.7 million, compared to $718.6 million and $158.3 million in the prior year, respectively. Income from operations grew to $95.1 million from $84.6 million Fiscal Year Ended March 31 - Income Statement Highlights (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $795,311 | $718,562 | | Gross profit | $171,693 | $158,259 | | Income from operations | $95,101 | $84,554 | | Net income | $76,252 | $66,365 | Condensed Balance Sheet As of March 31, 2024, CorVel's total assets increased to $454.7 million from $393.9 million a year prior. This growth was supported by an increase in cash to $105.6 million and a rise in retained earnings to $807.9 million Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Cash | $105,563 | $71,329 | | Accounts receivable, net | $97,108 | $81,034 | | Total Assets | $454,679 | $393,923 | | Accrued liabilities | $167,868 | $152,578 | | Retained earnings | $807,920 | $731,668 | | Total Liabilities & Equity | $454,679 | $393,923 | Company Overview and Forward-Looking Statements CorVel leverages advanced technologies to manage healthcare costs, with forward-looking statements subject to inherent risks and uncertainties, including potential GAI system errors About CorVel CorVel Corporation specializes in managing healthcare costs for workers' compensation, health, auto, and liability services by applying advanced technologies such as artificial intelligence, machine learning, and natural language processing. The company partners with a diverse client base including employers, TPAs, insurance companies, and government agencies - CorVel applies technology including AI, machine learning, and natural language processing to enhance the management of care episodes and related health care costs[6] Safe Harbor Statement This section outlines the forward-looking nature of statements in the press release, which are based on current expectations and subject to risks and uncertainties. It specifically mentions statements related to GAI functionality and operational efficiencies, cautioning that actual results could differ materially and highlighting risks such as potential errors in GAI systems - The press release contains forward-looking statements based on current expectations, which are not guarantees of future results and are subject to risks and uncertainties[7][8] - A specified risk is that the company's Generative AI (GAI) could be prone to errors, which may cause inefficiencies and be costly to mitigate[8]