Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CRVL | |
Entity Registrant Name | CORVEL CORP | |
Entity Central Index Key | 874,866 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,755,675 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Current Assets | ||
Cash and cash equivalents (Note A) | $ 35,009,000 | $ 28,611,000 |
Customer deposits | 31,730,000 | 32,471,000 |
Accounts receivable, net | 62,768,000 | 62,841,000 |
Prepaid taxes and expenses | 4,906,000 | 4,944,000 |
Total current assets | 134,413,000 | 128,867,000 |
Property and equipment, net | 63,152,000 | 63,042,000 |
Goodwill | 36,814,000 | 36,814,000 |
Other intangibles, net (Note F) | 3,728,000 | 3,851,000 |
Other assets | 2,352,000 | 2,809,000 |
TOTAL ASSETS | 240,459,000 | 235,383,000 |
Current Liabilities | ||
Accounts and taxes payable | 20,679,000 | 16,583,000 |
Accrued liabilities | 74,761,000 | 73,468,000 |
Total current liabilities | 95,440,000 | 90,051,000 |
Deferred income taxes | 6,358,000 | 6,686,000 |
Total liabilities | 101,798,000 | 96,737,000 |
Commitments and contingencies (Notes G and H) | 0 | 0 |
Stockholders' Equity | ||
Common stock, $.0001 par value: 120,000,000 shares authorized at March 31, 2017 and June 30, 2017; 53,569,067 shares issued (18,937,233 shares outstanding, net of Treasury shares) and 53,619,066 shares issued (18,738,011 shares outstanding, net of Treasury shares) at March 31, 2017 and June 30, 2017, respectively | 3,000 | 3,000 |
Paid-in capital | 138,110,000 | 135,683,000 |
Treasury Stock (34,631,834 shares at March 31, 2017 and 34,881,055 shares at June 30, 2017) | (430,989,000) | (419,802,000) |
Retained earnings | 431,537,000 | 422,762,000 |
Total stockholders' equity | 138,661,000 | 138,646,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 240,459,000 | $ 235,383,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Mar. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 53,619,066 | 53,569,067 |
Common stock, shares outstanding | 18,738,011 | 18,937,233 |
Treasury stock, shares | 34,881,055 | 34,631,834 |
Consolidated Income Statements
Consolidated Income Statements - Unaudited - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||
REVENUES | $ 137,612,000 | $ 128,459,000 |
Cost of revenues | 108,829,000 | 102,877,000 |
Gross profit | 28,783,000 | 25,582,000 |
General and administrative expenses | 14,629,000 | 13,461,000 |
Income before income tax provision | 14,154,000 | 12,121,000 |
Income tax provision | 5,379,000 | 4,630,000 |
NET INCOME | $ 8,775,000 | $ 7,491,000 |
Net income per common and common equivalent share | ||
Basic | $ 0.47 | $ 0.38 |
Diluted | $ 0.46 | $ 0.38 |
Weighted average common and common equivalent shares | ||
Basic | 18,811,000 | 19,572,000 |
Diluted | 19,000,000 | 19,754,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flows from Operating Activities | ||
NET INCOME | $ 8,775,000 | $ 7,491,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,303,000 | 5,051,000 |
Loss on write down or disposal of property, capitalized software or investment | 288,000 | 7,000 |
Stock compensation expense | 922,000 | 516,000 |
Provision for doubtful accounts | 276,000 | 386,000 |
Deferred income tax | (328,000) | (193,000) |
Changes in operating assets and liabilities | ||
Accounts receivable | (203,000) | (1,341,000) |
Customer deposits | 741,000 | 1,139,000 |
Prepaid taxes and expenses | 38,000 | (1,582,000) |
Other assets | 178,000 | 71,000 |
Accounts and taxes payable | 4,096,000 | 2,618,000 |
Accrued liabilities | 1,293,000 | (6,020,000) |
Net cash provided by operating activities | 21,379,000 | 8,143,000 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (5,299,000) | (5,285,000) |
Net cash (used in) investing activities | (5,299,000) | (5,285,000) |
Cash Flows from Financing Activities | ||
Purchase of treasury stock | (11,187,000) | (1,648,000) |
Tax effect of stock option exercises | 768,000 | 743,000 |
Exercise of common stock options | 737,000 | 1,502,000 |
Net cash provided by (used in) financing activities | (9,682,000) | 597,000 |
Increase in cash and cash equivalents | 6,398,000 | 3,455,000 |
Cash and cash equivalents at beginning of period | 28,611,000 | 32,779,000 |
Cash and cash equivalents at end of period | 35,009,000 | 36,234,000 |
Supplemental Cash Flow Information: | ||
Income taxes paid | 152,000 | 1,818,000 |
Purchase of software license under finance agreement | $ 0 | $ 2,166,000 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note A — Basis of Presentation and Summary of Significant Accounting Policies The unaudited consolidated financial statements herein have been prepared by CorVel Corporation (“the Company”) pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The accompanying interim unaudited financial statements have been prepared under the presumption that users of the interim financial information have either read or have access to the audited consolidated financial statements for the latest fiscal year ended March 31, 2017. Accordingly, note disclosures which would substantially duplicate the disclosures contained in the March 31, 2017 audited consolidated financial statements have been omitted from these interim unaudited consolidated financial statements. The Company evaluated all subsequent events and transactions through the date of filing this report. Certain information and note disclosures normally included in financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2018. For further information, refer to the audited consolidated financial statements and notes for the fiscal year ended March 31, 2017 included in the Company's Annual Report on Form 10-K filed with the SEC on June 9, 2017. Basis of Presentation: The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates: The preparation of financial statements in compliance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, allowance for doubtful accounts, accruals for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated claims for claims administration revenue recognition, estimates used in stock option valuations, and accruals for self-insurance reserves. Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, highly-liquid, investment-grade, interest-bearing securities with maturities of 90 days or less when purchased. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through our provider reimbursement services. Fair Value of Financial Instruments: The Company applies Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements with respect to fair value measurements of (i) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s consolidated financial statements on a recurring basis (at least annually) and (ii) all financial assets and liabilities. ASC 820 prioritizes the inputs used in measuring fair value into the following hierarchy: Level 1- Quoted market prices in active markets for identical assets or liabilities; Level 2- Observable inputs other than those included in Level 1 (for example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets); and Level 3- Unobservable inputs reflecting management’s own assumptions about the inputs used in estimating the value of the asset. The carrying amounts of the Company’s financial instruments (i.e. cash equivalents, accounts receivable, accounts payable) are all Level 1, and the Company believes they approximate their fair values at March 31, 2017 and June 30, 2017. The Company has no Level 2 or Level 3 financial instruments. Investment in Private Equity: The Company has made an investment of $2,250,000 into a private equity limited partnership that invests in start-up companies primarily in the data analytics industry. The Company accounts for the investment using the cost method and will periodically review the investment for possible impairment. The Company recorded an impairment to the investment of $284,000 for the year ended March 31, 2017 and an additional $283,000 for the quarter ended June 30, 2017. The investment is recorded in other assets on the accompanying consolidated balance sheets. Goodwill: The Company accounts for its business combinations in accordance with the FASB ASC 805-10 through ASC 805-50, “Business Combinations,” which (i) requires that the purchase method of accounting be applied to all business combinations and (ii) addresses the criteria for initial recognition of intangible assets and goodwill. In accordance with FASB ASC 350-10 through ASC 350-30, goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if circumstances indicate the possibility of impairment. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss shall be recognized. Revenue Recognition: The Company recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the services have been provided to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. For the Company’s services, the Company’s professional staff is contractually permitted to bill (i) for fees earned for time worked in fraction of an hour increments or (ii) by units of production. The Company recognizes revenue as fees are earned or as units of production are completed, which is when the revenue is earned and realized. Labor costs are recognized as the costs are incurred. The Company derives its revenue from the sale of network solutions and patient management services. Network solutions and patient management services may be sold individually or combined. When a sale combines multiple elements, the Company accounts for such multiple element arrangements in accordance with the guidance included in ASC 605-25. The multiple element arrangements consist of bundled managed care services, which include various units of accounting such as network solutions and patient management (which includes claims administration). Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis. The selling price for each unit of accounting is determined using the contract price and management estimates. When the Company’s customers purchase several products, the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management claims administration services over the life of the customer contract. The Company estimates, based upon prior experience in managing claims, the deferral amount from when the claim is received to when the customer contract expires. Accounts Receivable: The majority of the Company’s accounts receivable is due from companies in the property and casualty insurance industries, self-insured employers, and government entities. Accounts receivable are generally due within 30 days and are stated as amounts due from customers net of an allowance for doubtful accounts. Those accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company and the condition of the general economy and the industry as a whole. No one customer accounted for 10% or more of accounts receivable at either March 31, 2017 or June 30, 2017. No one customer accounted for 10% or more of revenue during the three months ended June 30, 2016 and 2017. Property and Equipment: Additions to property and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, which range from two to seven years or the life of the lease. The Company accounts for internally-developed software costs in accordance with FASB ASC 350-40, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use,” which allows for the capitalization of software developed for internal use. These costs are included within computer software in property and equipment and are amortized over a period of five years. Long-Lived Assets: The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets and the projected, undiscounted cash flows of the operations in which the long-lived assets are deployed. Income Taxes: The Company provides for income taxes in accordance with provisions specified in ASC 740, “Accounting for Income Taxes”. Accordingly, deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in the future, based on tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences become deductible. In making an assessment regarding the probability of realizing a benefit from these deductible differences, management considers the Company’s current and past performance, the market environment in which the Company operates, tax-planning strategies and the length of carry-forward periods for loss carry-forwards, if any. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that are more likely than not to be realized. Further, the Company provides for income tax issues not yet resolved with federal, state and local tax authorities. Earnings per Share: Earnings per common share-basic is based on the weighted average number of common shares outstanding during the period. Earnings per common share-diluted is based on the weighted average number of common shares and common share equivalents outstanding during the period. In calculating earnings per share, earnings are the same for the basic and diluted calculations. Weighted average shares outstanding decreased in the quarter ended June 30, 2017 compared to the same quarter of the prior year primarily due to repurchases of shares under the Company’s share repurchase program. See also Note D. Recent Accounting Pronouncements: On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers”. This standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year delay of the effective date of this new revenue recognition standard. The guidance will now be effective for our fiscal year beginning April 1, 2018. We are currently evaluating the accounting, transition and disclosure requirements of the standard. Based on the analyses we have completed thus far, which includes analyzing CorVel standard contracts from which the Company derives the majority of its revenues, we anticipate that the ASU will not have a significant impact on our consolidated financial statements. However, the Company is currently reviewing its existing non-standard customer contracts, and as a result, the impact of the ASU adoption on this portion of the Company’s revenues cannot yet be reasonably estimated. In January 2016, the FASB issued ASU 2016-01 regarding Subtopic 825-10, “Financials Instruments — Overall: Recognition and Measurements of Financial Assets and Financial Liabilities”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. It requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. We are currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the impact of adoption on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for using an approach that is similar to the existing guidance for operating leases. The standard is effective April 1, 2019, with early adoption permitted. The standard is to be applied using a modified retrospective transition method. We are currently evaluating the impact of adoption on our consolidated financial position, results of operations, and cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows”, which reduces diversity in the practice of how certain transactions are classified in the statement of cash flows. The new guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance will not have a material impact on our consolidated financial statements. Guidance Adopted in 2017 In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, as well as classification on the statement of cash flows. For public companies, the new guidance became effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016. We have elected to early adopt this standard as of March 31, 2017. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Options | 3 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation and Stock Options | Note B — Stock-Based Compensation and Stock Options Under the Company’s Restated Omnibus Incentive Plan (formerly the Restated 1988 Executive Stock Option Plan) (“the Plan”) as in effect at June 30, 2017, options exercisable for up to 19,365,000 shares of the Company’s common stock may be granted over the life of the Plan to key employees, non-employee directors, and consultants at exercise prices not less than the fair market value of the stock on the date of grant. Options granted under the Plan are non-statutory stock options and generally vest 25% one year from the date of grant with the remaining 75% vesting ratably each month for the next 36 months. The options granted to employees and the Company’s Board of Directors expire at the end of five years and ten years from date of grant, respectively. All options granted in the three months ended June 30, 2016 and 2017 were granted with an exercise price equal to the fair value of the Company’s common stock on the grant date and are non-statutory stock options. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions included in the table below. The Company uses historical data, among other factors, to estimate the expected volatility, the expected dividend yield, the expected forfeiture rate and the expected option life. Upon adoption of ASU No. 2016-09 as of fiscal 2017, the Company will account for forfeitures as they occur, rather than estimate expected forfeitures. As a result, during the fourth quarter of fiscal 2017, we reclassified the excess tax benefit of $0.5 million from additional paid in capital into the income tax provision line. The risk-free rate is based on the interest rate paid on a U.S. Treasury issue with a term similar to the estimated life of the option. The following assumptions were used to estimate the fair value of options granted during the three months ended June 30, 2016 and 2017 using the Black-Scholes option-pricing model: Three Months Ended June 30, 2016 2017 Risk-free interest rate 1.20% 1.88% Expected volatility 43% 41% Expected dividend yield 0.00% 0.00% Expected weighted average life of option in years 4.1 years 4.5 years For the three months ended June 30, 2016 and 2017, the Company recorded share-based compensation expense of $516,000 and $922,000, respectively. The table below shows the amounts recognized in the unaudited consolidated financial statements for stock compensation expense for time-based options and performance-based options during the three months ended June 30, 2016 and 2017, respectively. Three Months Ended June 30, 2016 June 30, 2017 Cost of revenues $ 337,000 $ 483,000 General and administrative 179,000 439,000 Total cost of stock-based compensation included in income before income tax provision 516,000 922,000 Amount of income tax benefit recognized (197,000 ) (350,000 ) Amount charged against net income $ 319,000 $ 572,000 Effect on basic earnings per share $ (0.02 ) $ (0.03 ) Effect on diluted earnings per share $ (0.02 ) $ (0.03 ) The following table summarizes information for all stock options for the three months ended June 30, 2016 and 2017: Three Months Ended June 30, 2016 Three Months Ended June 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,115,465 $ 30.36 1,143,928 $ 32.02 Options granted 44,900 45.74 77,400 45.93 Options exercised (76,623 ) 22.11 (65,921 ) 26.67 Options cancelled/forfeited (9,221 ) 35.43 (3,685 ) 39.99 Options outstanding, ending 1,074,521 $ 31.56 1,151,722 $ 33.24 The following table summarizes the status of stock options outstanding and exercisable at June 30, 2017: Range of Exercise Price Number of Outstanding Options Weighted Average Remaining Contractual Life Outstanding Options – Weighted Average Exercise Price Exercisable Options – Number of Exercisable Options Exercisable Options – Weighted Average Exercise Price $12.71 to $23.10 292,576 1.94 $ 20.33 292,576 $ 20.33 $23.11 to $34.77 296,844 3.61 $ 31.75 103,778 $ 30.27 $34.78 to $43.14 316,406 3.21 $ 37.26 85,645 $ 38.93 $43.15 to $46.10 245,896 3.79 $ 45.21 76,720 $ 45.37 Total 1,151,722 3.11 $ 33.24 558,719 $ 28.46 The following table summarizes the status of all outstanding options at June 30, 2017, and changes during the three months then ended: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of June 30, 2017 Options outstanding at April 1, 2017 1,143,928 $ 32.02 Granted 77,400 45.93 Exercised (65,921 ) 26.67 Cancelled – forfeited (2,062 ) 38.25 Cancelled – expired (1,623 ) 42.99 Ending outstanding 1,151,722 $ 33.24 3.11 $ 16,370,972 Ending vested and expected to vest 1,151,722 $ 33.24 3.11 $ 16,370,972 Ending exercisable at June 30, 2017 558,719 $ 28.46 2.13 $ 10,608,043 The weighted-average grant-date fair value of options granted during the three months ended June 30, 2016 and 2017, was $15.91 and $16.57, respectively. Included in the above-noted stock option grants and stock compensation expense are performance-based stock options which vest only upon the Company’s achievement of certain earnings per share targets on a calendar year basis, as determined by the Company’s Board of Directors. These options were valued in the same manner as the time-based options. However, the Company only recognizes stock compensation expense to the extent that the targets are determined to be probable of being achieved, which triggers the vesting of the performance options. The Company recognized ($31,000) and $212,000 of stock compensation expense for the three months ended June 30, 2016 and 2017, respectively, for performance-based stock options. |
Treasury Stock
Treasury Stock | 3 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Treasury Stock | Note C — Treasury Stock The Company’s Board of Directors approved the commencement of a share repurchase program in the fall of 1996. In February 2017, the Company’s Board of Directors approved a 1,000,000 share expansion to the Company’s existing stock repurchase program, increasing the total number of shares of the Company’s common stock approved for repurchase over the life of the program to 36,000,000 shares. Since the commencement of the share repurchase program, the Company has spent $431 million on the repurchase of 34,881,055 shares of its common stock, equal to 65% of the outstanding common stock had there been no repurchases. The average price of these repurchases was $12.36 per share. These repurchases were funded primarily by the net earnings of the Company, along with proceeds from the exercise of common stock options. During the three months ended June 30, 2017, the Company repurchased 249,245 shares of its common stock for $11.2 million at an average price of $44.88 per share of stock. The Company had 18,738,011 shares of common stock outstanding as of June 30, 2017, net of the 34,881,055 shares in treasury. |
Weighted Average Shares and Net
Weighted Average Shares and Net Income Per Share | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares and Net Income Per Share | Note D — Weighted Average Shares and Net Income Per Share Basic weighted average common shares outstanding decreased from 19,572,000 for the quarter ended June 30, 2016 to 18,811,000 for the quarter ended June 30, 2017. Diluted weighted average common and common equivalent shares outstanding decreased from 19,754,000 for the quarter ended June 30, 2016 to 19,000,000 for the quarter ended June 30, 2017. The net decrease in both of these weighted average share calculations is due to the repurchase of common stock as noted above, offset by an increase in shares outstanding due to the exercise of stock options under the Plan. Net income per common and common equivalent share was computed by dividing net income by the weighted average number of common and common share equivalents outstanding during the quarter. The following table sets forth the calculations of the basic and diluted weighted average shares for the three months ended June 30, 2016 and 2017: Three Months Ended June 30, 2016 2017 Net Income $ 7,491,000 $ 8,775,000 Basic: Weighted average common shares outstanding 19,572,000 18,811,000 Net Income per share $ 0.38 $ 0.47 Diluted: Weighted average common shares outstanding 19,572,000 18,811,000 Treasury stock impact of stock options 182,000 189,000 Total common and common equivalent shares 19,754,000 19,000,000 Net Income per share $ 0.38 $ 0.46 |
Shareholder Rights Plan
Shareholder Rights Plan | 3 Months Ended |
Jun. 30, 2017 | |
Text Block [Abstract] | |
Shareholder Rights Plan | Note E — Shareholder Rights Plan During fiscal year 1997, the Company’s Board of Directors approved the adoption of a shareholder rights plan (the “Shareholder Rights Plan”). The Shareholder Rights Plan provides for a dividend distribution to the Company’s shareholders of one preferred stock purchase right for each outstanding share of the Company’s common stock held by such shareholder (as used in this Note E, the “right” or the “rights”), only in the event of certain takeover-related events. In November 2008, the Company’s Board of Directors approved an amendment to the Shareholder Rights Plan to extend the expiration date of the rights to February 10, 2022. The rights are designed to assure that all shareholders receive fair and equal treatment in the event of a proposed takeover of the Company, and to encourage a potential acquirer to negotiate with the Company’s Board of Directors prior to attempting a takeover. The rights are not exercisable until the occurrence of certain takeover-related events, at which time they can be exercised at an exercise price of $118 per share of common stock which carries the right, subject to subsequent adjustments. The rights trade with the Company’s common stock. Generally, the Shareholder Rights Plan provides that if a person or group acquires 15% or more of the Company’s common stock without the approval of the Company’s Board of Directors, subject to certain exceptions, the holders of the rights, other than the acquiring person or group, would, under certain circumstances, have the right to purchase additional shares of the Company’s common stock having a market value equal to two times the then-current exercise price of the right. In addition, if the Company is thereafter merged into another entity, or if 50% or more of the Company’s consolidated assets or earning power are sold, then the right will entitle its holder to buy common shares of the acquiring entity having a market value equal to two times the then-current exercise price of the right. The Company’s Board of Directors may exchange or redeem the rights under certain conditions. |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note F — Other Intangible Assets The following table summarizes other intangible assets at March 31, 2017: Cost, Net of Fiscal 2017 Accumulated Accumulated Amortization Amortization at Amortization at Item Life Cost Expense March 31, 2017 March 31, 2017 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 423,000 4,144,000 3,778,000 TPA Licenses 15 Years 204,000 14,000 131,000 73,000 Total $ 8,901,000 $ 437,000 $ 5,050,000 $ 3,851,000 The following table summarizes other intangible assets at June 30, 2017: Cost, Net of Three Months Ended Accumulated Accumulated June 30, 2017 Amortization at Amortization at Item Life Cost Amortization Expense June 30, 2017 June 30, 2017 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 118,000 4,262,000 3,660,000 TPA Licenses 15 Years 204,000 4,000 136,000 68,000 Total $ 8,901,000 $ 122,000 $ 5,173,000 $ 3,728,000 |
Line of Credit
Line of Credit | 3 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Line of Credit | Note G — Line of Credit In September 2016, the Company renewed its line of credit agreement with a financial institution, which provides a revolving credit facility with borrowing capacity of up to $10 million. Borrowings under the credit agreement, as amended, bear interest, at the Company’s option, at a fixed LIBOR-based rate plus 1.00% or at a fluctuating rate determined by the financial institution to be 1.00% above the daily one-month LIBOR rate. The loan covenants require the Company to (i) maintain a current assets to liabilities ratio of at least 1.25:1, (ii) maintain a current debt to tangible net worth ratio of not greater than 1.25:1 and (iii) have positive net income. The Company is in compliance with all these covenants. There were no outstanding revolving loans as of June 30, 2017, but letters of credit in the aggregate amount of $4.5 million have been issued separately from the line of credit, and therefore do not reduce the amount of borrowings available under the revolving credit facility. The renewed credit agreement expires in September 2017. The Company expects to renew the line of credit for another year. |
Contingencies and Legal Proceed
Contingencies and Legal Proceedings | 3 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Legal Proceedings | Note H — Contingencies and Legal Proceedings The Company is involved in litigation arising in the ordinary course of business. Management believes that resolution of these matters will not result in any payment that, individually or in the aggregate, would be material to the consolidated financial position or results of operations of the Company. |
Accounts and Taxes Payable and
Accounts and Taxes Payable and Accrued Liabilities | 3 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accounts and Taxes Payable and Accrued Liabilities | Note I — Accounts and Taxes Payable and Accrued Liabilities The following table sets forth accounts payable, income taxes payable, and accrued liabilities at March 31, 2017 and June 30, 2017: March 31, 2017 June 30, 2017 Accounts payable $ 13,869,000 $ 12,588,000 Income taxes payable and uncertain tax positions 2,714,000 8,091,000 Total accounts and taxes payable $ 16,583,000 $ 20,679,000 March 31, 2017 June 30, 2017 Payroll, payroll taxes and employee benefits $ 14,465,000 $ 15,999,000 Customer deposits 32,471,000 31,730,000 Accrued professional service fees 4,551,000 4,408,000 Self-insurance accruals 2,835,000 2,896,000 Deferred revenue 10,096,000 10,904,000 Accrued rent 5,774,000 5,607,000 Other 3,276,000 3,217,000 Total accrued liabilities $ 73,468,000 $ 74,761,000 |
Basis of Presentation and Sum15
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of financial statements in compliance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates include the values assigned to intangible assets, capitalized software development, allowance for doubtful accounts, accruals for income taxes, share-based payments related to performance-based awards, loss contingencies, estimated claims for claims administration revenue recognition, estimates used in stock option valuations, and accruals for self-insurance reserves. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consist of short-term, highly-liquid, investment-grade, interest-bearing securities with maturities of 90 days or less when purchased. Customer deposits represent cash that is expected to be returned or applied towards payment within one year through our provider reimbursement services. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The Company applies Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements with respect to fair value measurements of (i) nonfinancial assets and liabilities that are recognized or disclosed at fair value in the Company’s consolidated financial statements on a recurring basis (at least annually) and (ii) all financial assets and liabilities. ASC 820 prioritizes the inputs used in measuring fair value into the following hierarchy: Level 1- Quoted market prices in active markets for identical assets or liabilities; Level 2- Observable inputs other than those included in Level 1 (for example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets); and Level 3- Unobservable inputs reflecting management’s own assumptions about the inputs used in estimating the value of the asset. The carrying amounts of the Company’s financial instruments (i.e. cash equivalents, accounts receivable, accounts payable) are all Level 1, and the Company believes they approximate their fair values at March 31, 2017 and June 30, 2017. The Company has no Level 2 or Level 3 financial instruments. |
Investment in Private Equity | Investment in Private Equity: The Company has made an investment of $ 2,250,000 into a private equity limited partnership that invests in start-up companies primarily in the data analytics industry. The Company accounts for the investment using the cost method and will periodically review the investment for possible impairment. The Company recorded an impairment to the investment of $284,000 for the year ended March 31, 2017 and an additional $283,000 for the quarter ended June 30, 2017. The investment is recorded in other assets on the accompanying consolidated balance sheets. |
Goodwill | Goodwill: The Company accounts for its business combinations in accordance with the FASB ASC 805-10 through ASC 805-50, “Business Combinations,” which (i) requires that the purchase method of accounting be applied to all business combinations and (ii) addresses the criteria for initial recognition of intangible assets and goodwill. In accordance with FASB ASC 350-10 through ASC 350-30, goodwill and other intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if circumstances indicate the possibility of impairment. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss shall be recognized. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue when (i) there is persuasive evidence of an arrangement, (ii) the services have been provided to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. For the Company’s services, the Company’s professional staff is contractually permitted to bill (i) for fees earned for time worked in fraction of an hour increments or (ii) by units of production. The Company recognizes revenue as fees are earned or as units of production are completed, which is when the revenue is earned and realized. Labor costs are recognized as the costs are incurred. The Company derives its revenue from the sale of network solutions and patient management services. Network solutions and patient management services may be sold individually or combined. When a sale combines multiple elements, the Company accounts for such multiple element arrangements in accordance with the guidance included in ASC 605-25. The multiple element arrangements consist of bundled managed care services, which include various units of accounting such as network solutions and patient management (which includes claims administration). Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis. The selling price for each unit of accounting is determined using the contract price and management estimates. When the Company’s customers purchase several products, the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management claims administration services over the life of the customer contract. The Company estimates, based upon prior experience in managing claims, the deferral amount from when the claim is received to when the customer contract expires. |
Accounts Receivable | Accounts Receivable: The majority of the Company’s accounts receivable is due from companies in the property and casualty insurance industries, self-insured employers, and government entities. Accounts receivable are generally due within 30 days and are stated as amounts due from customers net of an allowance for doubtful accounts. Those accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company and the condition of the general economy and the industry as a whole. No one customer accounted for 10% or more of accounts receivable at either March 31, 2017 or June 30, 2017. No one customer accounted for 10% or more of revenue during the three months ended June 30, 2016 and 2017. |
Property and Equipment | Property and Equipment: Additions to property and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, which range from two to seven years or the life of the lease. The Company accounts for internally-developed software costs in accordance with FASB ASC 350-40, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use,” which allows for the capitalization of software developed for internal use. These costs are included within computer software in property and equipment and are amortized over a period of five years. |
Long-Lived Assets | Long-Lived Assets: The carrying amount of all long-lived assets is evaluated periodically to determine if adjustment to the depreciation and amortization period or to the unamortized balance is warranted. Such evaluation is based principally on the expected utilization of the long-lived assets and the projected, undiscounted cash flows of the operations in which the long-lived assets are deployed. |
Income Taxes | Income Taxes: The Company provides for income taxes in accordance with provisions specified in ASC 740, “Accounting for Income Taxes”. Accordingly, deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities. These differences will result in taxable or deductible amounts in the future, based on tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which temporary differences become deductible. In making an assessment regarding the probability of realizing a benefit from these deductible differences, management considers the Company’s current and past performance, the market environment in which the Company operates, tax-planning strategies and the length of carry-forward periods for loss carry-forwards, if any. Valuation allowances are established when necessary to reduce deferred tax assets to amounts that are more likely than not to be realized. Further, the Company provides for income tax issues not yet resolved with federal, state and local tax authorities. |
Earnings per Share | Earnings per Share: Earnings per common share-basic is based on the weighted average number of common shares outstanding during the period. Earnings per common share-diluted is based on the weighted average number of common shares and common share equivalents outstanding during the period. In calculating earnings per share, earnings are the same for the basic and diluted calculations. Weighted average shares outstanding decreased in the quarter ended June 30, 2017 compared to the same quarter of the prior year primarily due to repurchases of shares under the Company’s share repurchase program. See also Note D. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: On May 28, 2014, the FASB issued ASU 2014-09 regarding ASC Topic 606, “Revenue from Contracts with Customers”. This standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year delay of the effective date of this new revenue recognition standard. The guidance will now be effective for our fiscal year beginning April 1, 2018. We are currently evaluating the accounting, transition and disclosure requirements of the standard. Based on the analyses we have completed thus far, which includes analyzing CorVel standard contracts from which the Company derives the majority of its revenues, we anticipate that the ASU will not have a significant impact on our consolidated financial statements. However, the Company is currently reviewing its existing non-standard customer contracts, and as a result, the impact of the ASU adoption on this portion of the Company’s revenues cannot yet be reasonably estimated. In January 2016, the FASB issued ASU 2016-01 regarding Subtopic 825-10, “Financials Instruments — Overall: Recognition and Measurements of Financial Assets and Financial Liabilities”. The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. It requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. We are currently evaluating the accounting, transition, and disclosure requirements of the standard and cannot currently estimate the impact of adoption on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for using an approach that is similar to the existing guidance for operating leases. The standard is effective April 1, 2019, with early adoption permitted. The standard is to be applied using a modified retrospective transition method. We are currently evaluating the impact of adoption on our consolidated financial position, results of operations, and cash flows. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows”, which reduces diversity in the practice of how certain transactions are classified in the statement of cash flows. The new guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of this guidance will not have a material impact on our consolidated financial statements. Guidance Adopted in 2017 In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, as well as classification on the statement of cash flows. For public companies, the new guidance became effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016. We have elected to early adopt this standard as of March 31, 2017. |
Stock-Based Compensation and 16
Stock-Based Compensation and Stock Options (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Value of Options Granted | The following assumptions were used to estimate the fair value of options granted during the three months ended June 30, 2016 and 2017 using the Black-Scholes option-pricing model: Three Months Ended June 30, 2016 2017 Risk-free interest rate 1.20% 1.88% Expected volatility 43% 41% Expected dividend yield 0.00% 0.00% Expected weighted average life of option in years 4.1 years 4.5 years |
Stock Compensation Expense for Time Based Options and Performance Based Options | The table below shows the amounts recognized in the unaudited consolidated financial statements for stock compensation expense for time-based options and performance-based options during the three months ended June 30, 2016 and 2017, respectively. Three Months Ended June 30, 2016 June 30, 2017 Cost of revenues $ 337,000 $ 483,000 General and administrative 179,000 439,000 Total cost of stock-based compensation included in income before income tax provision 516,000 922,000 Amount of income tax benefit recognized (197,000 ) (350,000 ) Amount charged against net income $ 319,000 $ 572,000 Effect on basic earnings per share $ (0.02 ) $ (0.03 ) Effect on diluted earnings per share $ (0.02 ) $ (0.03 ) |
Stock Options | The following table summarizes information for all stock options for the three months ended June 30, 2016 and 2017: Three Months Ended June 30, 2016 Three Months Ended June 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,115,465 $ 30.36 1,143,928 $ 32.02 Options granted 44,900 45.74 77,400 45.93 Options exercised (76,623 ) 22.11 (65,921 ) 26.67 Options cancelled/forfeited (9,221 ) 35.43 (3,685 ) 39.99 Options outstanding, ending 1,074,521 $ 31.56 1,151,722 $ 33.24 |
Stock Options Outstanding and Exercisable | The following table summarizes the status of stock options outstanding and exercisable at June 30, 2017: Range of Exercise Price Number of Outstanding Options Weighted Average Remaining Contractual Life Outstanding Options – Weighted Average Exercise Price Exercisable Options – Number of Exercisable Options Exercisable Options – Weighted Average Exercise Price $12.71 to $23.10 292,576 1.94 $ 20.33 292,576 $ 20.33 $23.11 to $34.77 296,844 3.61 $ 31.75 103,778 $ 30.27 $34.78 to $43.14 316,406 3.21 $ 37.26 85,645 $ 38.93 $43.15 to $46.10 245,896 3.79 $ 45.21 76,720 $ 45.37 Total 1,151,722 3.11 $ 33.24 558,719 $ 28.46 |
Outstanding Options | The following table summarizes the status of all outstanding options at June 30, 2017, and changes during the three months then ended: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of June 30, 2017 Options outstanding at April 1, 2017 1,143,928 $ 32.02 Granted 77,400 45.93 Exercised (65,921 ) 26.67 Cancelled – forfeited (2,062 ) 38.25 Cancelled – expired (1,623 ) 42.99 Ending outstanding 1,151,722 $ 33.24 3.11 $ 16,370,972 Ending vested and expected to vest 1,151,722 $ 33.24 3.11 $ 16,370,972 Ending exercisable at June 30, 2017 558,719 $ 28.46 2.13 $ 10,608,043 |
Weighted Average Shares and N17
Weighted Average Shares and Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted Weighted Average Shares | The following table sets forth the calculations of the basic and diluted weighted average shares for the three months ended June 30, 2016 and 2017: Three Months Ended June 30, 2016 2017 Net Income $ 7,491,000 $ 8,775,000 Basic: Weighted average common shares outstanding 19,572,000 18,811,000 Net Income per share $ 0.38 $ 0.47 Diluted: Weighted average common shares outstanding 19,572,000 18,811,000 Treasury stock impact of stock options 182,000 189,000 Total common and common equivalent shares 19,754,000 19,000,000 Net Income per share $ 0.38 $ 0.46 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | The following table summarizes other intangible assets at March 31, 2017: Cost, Net of Fiscal 2017 Accumulated Accumulated Amortization Amortization at Amortization at Item Life Cost Expense March 31, 2017 March 31, 2017 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 423,000 4,144,000 3,778,000 TPA Licenses 15 Years 204,000 14,000 131,000 73,000 Total $ 8,901,000 $ 437,000 $ 5,050,000 $ 3,851,000 The following table summarizes other intangible assets at June 30, 2017: Cost, Net of Three Months Ended Accumulated Accumulated June 30, 2017 Amortization at Amortization at Item Life Cost Amortization Expense June 30, 2017 June 30, 2017 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 118,000 4,262,000 3,660,000 TPA Licenses 15 Years 204,000 4,000 136,000 68,000 Total $ 8,901,000 $ 122,000 $ 5,173,000 $ 3,728,000 |
Accounts and Taxes Payable an19
Accounts and Taxes Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accounts Payable, Income Taxes Payable and Accrued Liabilities | The following table sets forth accounts payable, income taxes payable, and accrued liabilities at March 31, 2017 and June 30, 2017: March 31, 2017 June 30, 2017 Accounts payable $ 13,869,000 $ 12,588,000 Income taxes payable and uncertain tax positions 2,714,000 8,091,000 Total accounts and taxes payable $ 16,583,000 $ 20,679,000 March 31, 2017 June 30, 2017 Payroll, payroll taxes and employee benefits $ 14,465,000 $ 15,999,000 Customer deposits 32,471,000 31,730,000 Accrued professional service fees 4,551,000 4,408,000 Self-insurance accruals 2,835,000 2,896,000 Deferred revenue 10,096,000 10,904,000 Accrued rent 5,774,000 5,607,000 Other 3,276,000 3,217,000 Total accrued liabilities $ 73,468,000 $ 74,761,000 |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)Customer | Jun. 30, 2016Customer | Mar. 31, 2017USD ($)Customer | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Maturities of short term investment interest-bearing securities | 90 days | ||
Accounts receivable due period | 30 days | ||
Minimum [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 2 years | ||
Maximum [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property and equipment | 7 years | ||
Computer Software Property and Equipment [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Amortization period of computer software | 5 years | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Maximum customer risk percentage | 10.00% | 10.00% | |
Number of customer | Customer | 0 | 0 | |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Maximum customer risk percentage | 10.00% | 10.00% | |
Number of customer | Customer | 0 | 0 | |
Private Equity Funds [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Investment | $ 2,250,000 | ||
Impairment recorded on investment | 283,000 | $ 284,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Transfer of assets | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Transfer of assets | $ 0 | $ 0 |
Stock-Based Compensation and 21
Stock-Based Compensation and Stock Options - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-statutory stock options expiration period | 5 years | ||
Weighted-average grant-date fair value of options granted | $ 16.57 | $ 15.91 | |
Time Based Options and Performance Based Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 922,000 | $ 516,000 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 212,000 | $ (31,000) | |
ASU No. 2016-09 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess tax benefit | $ 500,000 | ||
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-statutory stock options expiration period | 10 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock grants | 19,365,000 | ||
Non-statutory stock options vesting period | 36 months | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-statutory stock options vesting period | 1 year | ||
Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Percentage | 25.00% | ||
Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Percentage | 75.00% |
Stock-Based Compensation and 22
Stock-Based Compensation and Stock Options - Fair Value of Options Granted (Detail) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 1.88% | 1.20% |
Expected volatility | 41.00% | 43.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected weighted average life of option in years | 4 years 6 months | 4 years 1 month 6 days |
Stock-Based Compensation and 23
Stock-Based Compensation and Stock Options - Stock Compensation Expense for Time Based Options and Performance Based Options (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Effect on basic earnings per share | $ 0.47 | $ 0.38 |
Effect on diluted earnings per share | $ 0.46 | $ 0.38 |
Time Based Options and Performance Based Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total cost of stock-based compensation included in income before income tax provision | $ 922,000 | $ 516,000 |
Amount of income tax benefit recognized | (350,000) | (197,000) |
Amount charged against net income | $ 572,000 | $ 319,000 |
Effect on basic earnings per share | $ (0.03) | $ (0.02) |
Effect on diluted earnings per share | $ (0.03) | $ (0.02) |
Time Based Options and Performance Based Options [Member] | Cost of Revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total cost of stock-based compensation included in income before income tax provision | $ 483,000 | $ 337,000 |
Time Based Options and Performance Based Options [Member] | General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total cost of stock-based compensation included in income before income tax provision | $ 439,000 | $ 179,000 |
Stock-Based Compensation and 24
Stock-Based Compensation and Stock Options - Stock Options (Detail) - $ / shares | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options outstanding, beginning balance | 1,143,928 | 1,115,465 |
Options granted, Shares | 77,400 | 44,900 |
Options exercised, Shares | (65,921) | (76,623) |
Options cancelled/forfeited, Shares | (3,685) | (9,221) |
Options outstanding, ending balance | 1,151,722 | 1,074,521 |
Options outstanding, beginning balance, Weighted Average Exercise Price | $ 32.02 | $ 30.36 |
Options granted, Weighted Average Exercise Price | 45.93 | 45.74 |
Options exercised, Weighted Average Exercise Price | 26.67 | 22.11 |
Options cancelled/forfeited, Weighted Average Exercise Price | 39.99 | 35.43 |
Options outstanding, ending balance, Weighted Average Exercise Price | $ 33.24 | $ 31.56 |
Stock Based Compensation and St
Stock Based Compensation and Stock Options - Stock Options Outstanding and Exercisable (Detail) - $ / shares | 3 Months Ended | |||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number of Outstanding Options | 1,151,722 | 1,143,928 | 1,074,521 | 1,115,465 |
Weighted Average Remaining Contractual Life | 3 years 1 month 9 days | |||
Outstanding Options - Weighted Average Exercise Price | $ 33.24 | $ 32.02 | $ 31.56 | $ 30.36 |
Exercisable Options - Number of Exercisable Options | 558,719 | |||
Exercisable Options - Weighted Average Exercise Price | $ 28.46 | |||
Range of Exercise Price, $12.71 to $23.10 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 12.71 | |||
Range of Exercise Price, upper limit | $ 23.10 | |||
Number of Outstanding Options | 292,576 | |||
Weighted Average Remaining Contractual Life | 1 year 11 months 8 days | |||
Outstanding Options - Weighted Average Exercise Price | $ 20.33 | |||
Exercisable Options - Number of Exercisable Options | 292,576 | |||
Exercisable Options - Weighted Average Exercise Price | $ 20.33 | |||
Range of Exercise Price, $23.11 to $34.77 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 23.11 | |||
Range of Exercise Price, upper limit | $ 34.77 | |||
Number of Outstanding Options | 296,844 | |||
Weighted Average Remaining Contractual Life | 3 years 7 months 10 days | |||
Outstanding Options - Weighted Average Exercise Price | $ 31.75 | |||
Exercisable Options - Number of Exercisable Options | 103,778 | |||
Exercisable Options - Weighted Average Exercise Price | $ 30.27 | |||
Range of Exercise Price, $34.78 to $43.14 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 34.78 | |||
Range of Exercise Price, upper limit | $ 43.14 | |||
Number of Outstanding Options | 316,406 | |||
Weighted Average Remaining Contractual Life | 3 years 2 months 16 days | |||
Outstanding Options - Weighted Average Exercise Price | $ 37.26 | |||
Exercisable Options - Number of Exercisable Options | 85,645 | |||
Exercisable Options - Weighted Average Exercise Price | $ 38.93 | |||
Range of Exercise Price, $43.15 to $46.10 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Price, lower limit | 43.15 | |||
Range of Exercise Price, upper limit | $ 46.10 | |||
Number of Outstanding Options | 245,896 | |||
Weighted Average Remaining Contractual Life | 3 years 9 months 14 days | |||
Outstanding Options - Weighted Average Exercise Price | $ 45.21 | |||
Exercisable Options - Number of Exercisable Options | 76,720 | |||
Exercisable Options - Weighted Average Exercise Price | $ 45.37 |
Stock Based Compensation and 26
Stock Based Compensation and Stock Options - Outstanding Options (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options outstanding, beginning balance | 1,143,928 | 1,115,465 |
Granted, Number of Options | 77,400 | 44,900 |
Exercised, Number of Options | (65,921) | (76,623) |
Cancelled - forfeited, Number of Options | (2,062) | |
Cancelled - expired, Number of Options | (1,623) | |
Options outstanding, ending balance | 1,151,722 | 1,074,521 |
Options vested and expected to vest, Number of Options | 1,151,722 | |
Ending exercisable, Number of Options | 558,719 | |
Options outstanding, beginning balance, Weighted Average Exercise Price | $ 32.02 | $ 30.36 |
Granted, Weighted Average Exercise Price per Share | 45.93 | 45.74 |
Exercised, Weighted Average Exercise Price per Share | 26.67 | 22.11 |
Cancelled - forfeited, Weighted Average Exercise Price per Share | 38.25 | |
Cancelled - expired, Weighted Average Exercise Price per Share | 42.99 | |
Options outstanding, ending balance, Weighted Average Exercise Price | 33.24 | $ 31.56 |
Options vested and expected to vest, Weighted Average Exercise Price per Share | 33.24 | |
Ending exercisable, Weighted Average Exercise Price per Share | $ 28.46 | |
Option outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 9 days | |
Options vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 9 days | |
Ending exercisable, Weighted Average Remaining Contractual Life (Years) | 2 years 1 month 16 days | |
Option outstanding, Aggregate Intrinsic Value | $ 16,370,972 | |
Options vested and expected to vest, Aggregate Intrinsic Value | 16,370,972 | |
Ending exercisable, Aggregate Intrinsic Value | $ 10,608,043 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | |
Class of Stock [Line Items] | |||
Number of shares of common stock authorized to repurchase | 36,000,000 | 1,000,000 | |
Treasury stock, value | $ 430,989,000 | $ 419,802,000 | |
Treasury stock, shares | 34,881,055 | 34,631,834 | |
Average price per share of common stock | $ 44.88 | ||
Common stock, shares outstanding | 18,738,011 | 18,937,233 | |
Number of shares of common stock repurchased | 249,245 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 11,200,000 | ||
Nineteen Ninety Six Share Repurchase Program [Member] | |||
Class of Stock [Line Items] | |||
Common stock equals to percentage of outstanding common stock | 65.00% | ||
Average price per share of common stock | $ 12.36 |
Weighted Average Shares and N28
Weighted Average Shares and Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 18,811,000 | 19,572,000 |
Diluted weighted average common and common equivalent shares outstanding | 19,000,000 | 19,754,000 |
Weighted Average Shares and N29
Weighted Average Shares and Net Income Per Share - Calculations of Basic and Diluted Weighted Average Shares (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Net Income | $ 8,775,000 | $ 7,491,000 |
Basic: | ||
Weighted average common shares outstanding | 18,811,000 | 19,572,000 |
Net Income per share | $ 0.47 | $ 0.38 |
Diluted: | ||
Weighted average common shares outstanding | 18,811,000 | 19,572,000 |
Treasury stock impact of stock options | 189,000 | 182,000 |
Total common and common equivalent shares | 19,000,000 | 19,754,000 |
Net Income per share | $ 0.46 | $ 0.38 |
Shareholder Rights Plan - Addit
Shareholder Rights Plan - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2017$ / shares | |
Equity [Abstract] | |
Dividend distribution ratio of preferred share purchase right for outstanding share of common stock | 100.00% |
Shareholder rights expiration date | Feb. 10, 2022 |
Shareholder rights exercise price per share of common stock | $ 118 |
Shareholder Rights Plan, description of acquired entity | Shareholder Rights Plan provides that if a person or group acquires 15% or more of the Company’s common stock |
Shareholder Rights Plan, percentage of acquired entity | 15.00% |
Shareholder Rights Plan, description of merged entity | Company is thereafter merged into another entity, or if 50% or more of the Company’s consolidated assets or earning power are sold, then the right will entitle its holder to buy common shares of the acquiring entity having a market value equal to two times the then-current exercise price of the right. |
Shareholder Rights Plan, percentage of merged entity | 50.00% |
Other Intangible Assets - Other
Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 8,901,000 | $ 8,901,000 |
Amortization Expense | 122,000 | 437,000 |
Accumulated Amortization | 5,173,000 | 5,050,000 |
Cost, Net of Accumulated Amortization | $ 3,728,000 | $ 3,851,000 |
Covenants Not to Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Life | 5 years | 5 years |
Cost | $ 775,000 | $ 775,000 |
Amortization Expense | 0 | 0 |
Accumulated Amortization | 775,000 | 775,000 |
Cost, Net of Accumulated Amortization | 0 | 0 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,922,000 | 7,922,000 |
Amortization Expense | 118,000 | 423,000 |
Accumulated Amortization | 4,262,000 | 4,144,000 |
Cost, Net of Accumulated Amortization | $ 3,660,000 | $ 3,778,000 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Life | 18 years | 18 years |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Life | 20 years | 20 years |
TPA Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Life | 15 years | 15 years |
Cost | $ 204,000 | $ 204,000 |
Amortization Expense | 4,000 | 14,000 |
Accumulated Amortization | 136,000 | 131,000 |
Cost, Net of Accumulated Amortization | $ 68,000 | $ 73,000 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended |
Sep. 30, 2016 | Jun. 30, 2017 | |
Line of Credit Facility [Line Items] | ||
Loan covenants requirements | The loan covenants require the Company to (i) maintain a current assets to liabilities ratio of at least 1.25:1, (ii) maintain a current debt to tangible net worth ratio of not greater than 1.25:1 and (iii) have positive net income. | |
Current assets to liabilities ratio | 125.00% | |
Current debt to tangible net worth ratio | 125.00% | |
Letters of credit in aggregate amount | $ 4,500,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility with borrowing capacity | $ 10,000,000 | |
Interest rate above one month LIBOR rate | 1.00% | |
Fluctuating rate determined by financial institution | fluctuating rate determined by the financial institution to be 1.00% above the daily one-month LIBOR rate. | |
Outstanding revolving loans | $ 0 | |
Renewed credit agreement expiration period | 2017-09 | |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% |
Accounts and Taxes Payable an33
Accounts and Taxes Payable and Accrued Liabilities - Accounts Payable and Income Taxes Payable (Detail) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 12,588,000 | $ 13,869,000 |
Income taxes payable and uncertain tax positions | 8,091,000 | 2,714,000 |
Total accounts and taxes payable | $ 20,679,000 | $ 16,583,000 |
Accounts and Taxes Payable an34
Accounts and Taxes Payable and Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Payables And Accruals [Abstract] | ||
Payroll, payroll taxes and employee benefits | $ 15,999,000 | $ 14,465,000 |
Customer deposits | 31,730,000 | 32,471,000 |
Accrued professional service fees | 4,408,000 | 4,551,000 |
Self-insurance accruals | 2,896,000 | 2,835,000 |
Deferred revenue | 10,904,000 | 10,096,000 |
Accrued rent | 5,607,000 | 5,774,000 |
Other | 3,217,000 | 3,276,000 |
Total accrued liabilities | $ 74,761,000 | $ 73,468,000 |