UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to x
Commission file number
(Exact Name of Registrant as Specified in its Charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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☐ |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The number of shares outstanding of the registrant's Common Stock, $0.0001 par value per share, as of November 1, 2022, was
CORVEL CORPORATION
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
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Page |
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Item 1. |
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3 |
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Consolidated Balance Sheets – September 30, 2022 (unaudited) and March 31, 2022 |
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3 |
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Consolidated Income Statements (unaudited) – Three months ended September 30, 2022 and 2021 |
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4 |
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Consolidated Income Statements (unaudited) – Six months ended September 30, 2022 and 2021 |
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5 |
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6 |
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Consolidated Statements of Cash Flows (unaudited) – Six months ended September 30, 2022 and 2021 |
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Notes to Consolidated Financial Statements (unaudited) – September 30, 2022 |
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8 |
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Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
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17 |
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Item 3. |
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24 |
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Item 4. |
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24 |
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Item 1. |
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25 |
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Item 1A. |
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Item 2. |
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32 |
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Item 3. |
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33 |
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Item 4. |
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33 |
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Item 5. |
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33 |
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Item 6. |
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34 |
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35 |
Page 2
PART I – FINANCIAL INFORMATION
ITEM 1 – FINANCIAL STATEMENTS
CORVEL CORPORATION
Consolidated Balance Sheets
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September 30, 2022 |
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March 31, 2022 |
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(Unaudited) |
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Assets |
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Current Assets |
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Cash and cash equivalents |
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$ |
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$ |
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Customer deposits |
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Accounts receivable, net |
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Prepaid taxes and expenses |
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Total current assets |
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Property and equipment, net |
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Goodwill |
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Other intangibles, net |
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Right-of-use asset, net |
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Other assets |
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TOTAL ASSETS |
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$ |
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$ |
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Liabilities and Stockholders' Equity |
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Current Liabilities |
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Accounts and taxes payable |
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$ |
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$ |
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Accrued liabilities |
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Total current liabilities |
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Deferred income taxes, net |
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Long-term lease liabilities |
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Total liabilities |
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Stockholders' Equity |
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Common stock, $ |
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Paid-in capital |
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Treasury stock ( |
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Retained earnings |
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Total stockholders' equity |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
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$ |
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$ |
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See accompanying notes to unaudited consolidated financial statements.
Page 3
CORVEL CORPORATION
Consolidated Income Statements – (Unaudited)
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Three Months Ended September 30, |
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2022 |
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2021 |
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REVENUES |
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$ |
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$ |
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Cost of revenues |
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Gross profit |
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General and administrative expenses |
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Income before income tax provision |
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Income tax provision |
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NET INCOME |
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$ |
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$ |
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Net income per common and common equivalent share |
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Basic |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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Weighted average common and common equivalent shares |
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Basic |
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Diluted |
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See accompanying notes to unaudited consolidated financial statements.
Page 4
CORVEL CORPORATION
Consolidated Income Statements – (Unaudited)
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Six Months Ended September 30, |
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2022 |
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2021 |
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REVENUES |
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$ |
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$ |
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Cost of revenues |
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Gross profit |
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General and administrative expenses |
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Income before income tax provision |
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Income tax provision |
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NET INCOME |
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$ |
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$ |
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Net income per common and common equivalent share |
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Basic |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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Weighted average common and common equivalent shares |
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Basic |
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Diluted |
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See accompanying notes to unaudited consolidated financial statements.
Page 5
CORVEL CORPORATION
Consolidated Statements of Stockholders’ Equity – (Unaudited)
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Three Months Ended September 30, 2022 |
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Common |
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Stock |
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Paid-in- |
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Treasury |
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Treasury |
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Retained |
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Total |
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Balance – June 30, 2022 |
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$ |
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$ |
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( |
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$ |
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$ |
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$ |
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Stock issued under employee stock |
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— |
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— |
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— |
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— |
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Stock issued under stock option plan, |
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— |
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— |
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— |
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— |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Purchase of treasury stock |
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— |
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— |
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— |
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( |
) |
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( |
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— |
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( |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Balance – September 30, 2022 |
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$ |
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$ |
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( |
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$ |
( |
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$ |
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$ |
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Three Months Ended September 30, 2021 |
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Common |
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Stock |
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Paid-in- |
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Treasury |
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Treasury |
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Retained |
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Total |
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Balance – June 30, 2021 |
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$ |
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$ |
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( |
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$ |
( |
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$ |
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$ |
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Stock issued under employee stock |
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— |
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— |
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— |
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— |
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Stock issued under stock option plan, |
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— |
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— |
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— |
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— |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Purchase of treasury stock |
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— |
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— |
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— |
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( |
) |
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( |
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— |
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( |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Balance – September 30, 2021 |
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$ |
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$ |
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( |
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$ |
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$ |
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$ |
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Six Months Ended September 30, 2022 |
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Common |
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Stock |
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Paid-in- |
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Treasury |
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Treasury |
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Retained |
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Total |
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Balance – March 31, 2022 |
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$ |
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$ |
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( |
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$ |
( |
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$ |
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$ |
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Stock issued under employee stock |
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— |
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— |
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— |
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— |
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Stock issued under stock option plan, |
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— |
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— |
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— |
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— |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Purchase of treasury stock |
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— |
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— |
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— |
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( |
) |
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( |
) |
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— |
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( |
) |
Net income |
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— |
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— |
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— |
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— |
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— |
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Balance – September 30, 2022 |
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$ |
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$ |
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( |
) |
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$ |
( |
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$ |
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$ |
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Six Months Ended September 30, 2021 |
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Common |
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Stock |
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Paid-in- |
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Treasury |
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Treasury |
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Retained |
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Total |
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Balance – March 31, 2021 |
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$ |
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$ |
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( |
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$ |
( |
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$ |
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$ |
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Stock issued under employee stock |
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— |
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— |
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— |
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— |
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Stock issued under stock option plan, |
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— |
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— |
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— |
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— |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Purchase of treasury stock |
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— |
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— |
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— |
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( |
) |
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( |
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— |
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( |
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Net income |
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— |
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— |
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— |
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— |
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— |
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Balance – September 30, 2021 |
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$ |
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$ |
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( |
) |
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$ |
( |
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$ |
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$ |
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See accompanying notes to unaudited consolidated financial statements.
Page 6
CORVEL CORPORATION
Consolidated Statements of Cash Flows – (Unaudited)
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Six Months Ended September 30, |
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2022 |
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2021 |
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Cash Flows from Operating Activities |
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NET INCOME |
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$ |
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$ |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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Gain on write down or disposal of property, capitalized software or investment |
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( |
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Stock compensation expense |
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Provision for doubtful accounts |
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Deferred income tax |
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( |
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( |
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Changes in operating assets and liabilities |
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Accounts receivable |
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( |
) |
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( |
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Customer deposits |
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( |
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( |
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Prepaid taxes and expenses |
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( |
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Other assets |
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( |
) |
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( |
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Accounts and taxes payable |
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( |
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Accrued liabilities |
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Operating lease liabilities |
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( |
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Net cash provided by operating activities |
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Cash Flows from Investing Activities |
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Purchase of property and equipment |
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( |
) |
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( |
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Net cash used in investing activities |
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( |
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( |
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Cash Flows from Financing Activities |
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Purchase of treasury stock |
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( |
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( |
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Exercise of common stock options |
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Proceeds from purchases under employee stock purchase plan |
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Net cash used in financing activities |
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( |
) |
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( |
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Decrease in cash and cash equivalents |
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( |