Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
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 | 18,748,292 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Current Assets | ||
Cash and cash equivalents (Note 1) | $ 90,133,000 | $ 55,771,000 |
Customer deposits | 41,333,000 | 35,496,000 |
Accounts receivable, net | 65,065,000 | 64,940,000 |
Prepaid taxes and expenses | 7,612,000 | 7,110,000 |
Total current assets | 204,143,000 | 163,317,000 |
Property and equipment, net | 64,814,000 | 69,356,000 |
Goodwill | 36,814,000 | 36,814,000 |
Other intangibles, net (Note 7) | 3,192,000 | 3,415,000 |
Other assets | 975,000 | 1,102,000 |
TOTAL ASSETS | 309,938,000 | 274,004,000 |
Current Liabilities | ||
Accounts and taxes payable | 13,701,000 | 13,453,000 |
Accrued liabilities | 101,856,000 | 84,536,000 |
Total current liabilities | 115,557,000 | 97,989,000 |
Deferred income taxes | 4,317,000 | 4,839,000 |
Total liabilities | 119,874,000 | 102,828,000 |
Commitments and contingencies (Notes 8 and 9) | 0 | 0 |
Stockholders' Equity | ||
Common stock, $.0001 par value: 120,000,000 shares authorized at September 30, 2018 and March 31, 2018; 53,907,432 shares issued (18,826,375 shares outstanding, net of Treasury shares) and 53,793,986 shares issued (18,912,907 shares outstanding, net of Treasury shares) at September 30, 2018 and March 31, 2018, respectively | 3,000 | 3,000 |
Paid-in capital | 149,328,000 | 143,705,000 |
Treasury stock (35,081,057 shares at September 30, 2018 and 34,881,079 shares at March 31, 2018) | (442,291,000) | (430,989,000) |
Retained earnings | 483,024,000 | 458,457,000 |
Total stockholders' equity | 190,064,000 | 171,176,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 309,938,000 | $ 274,004,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Mar. 31, 2018 |
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 | 53,907,432 | 53,793,986 |
Common stock, shares outstanding | 18,826,375 | 18,912,907 |
Treasury stock, shares | 35,081,057 | 34,881,079 |
Consolidated Income Statements
Consolidated Income Statements - Unaudited - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
REVENUES | $ 148,176,000 | $ 136,431,000 | $ 298,574,000 | $ 274,043,000 |
Cost of revenues | 116,686,000 | 110,679,000 | 235,731,000 | 219,508,000 |
Gross profit | 31,490,000 | 25,752,000 | 62,843,000 | 54,535,000 |
General and administrative expenses | 15,094,000 | 13,670,000 | 31,031,000 | 28,299,000 |
Income before income tax provision | 16,396,000 | 12,082,000 | 31,812,000 | 26,236,000 |
Income tax provision | 3,607,000 | 3,689,000 | 7,245,000 | 9,068,000 |
NET INCOME | $ 12,789,000 | $ 8,393,000 | $ 24,567,000 | $ 17,168,000 |
Net income per common and common equivalent share | ||||
Basic | $ 0.68 | $ 0.45 | $ 1.30 | $ 0.91 |
Diluted | $ 0.67 | $ 0.44 | $ 1.29 | $ 0.90 |
Weighted average common and common equivalent shares | ||||
Basic | 18,877,000 | 18,759,000 | 18,899,000 | 18,785,000 |
Diluted | 19,089,000 | 18,966,000 | 19,095,000 | 18,983,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities | ||
NET INCOME | $ 24,567,000 | $ 17,168,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,275,000 | 10,540,000 |
(Gain) loss on write down or disposal of property, capitalized software or investment | (37,000) | 450,000 |
Stock compensation expense | 2,087,000 | 1,529,000 |
Provision for doubtful accounts | 1,503,000 | 887,000 |
Deferred income tax | (521,000) | (559,000) |
Changes in operating assets and liabilities | ||
Accounts receivable | (1,628,000) | (4,042,000) |
Customer deposits | (5,837,000) | (6,567,000) |
Prepaid taxes and expenses | (502,000) | (190,000) |
Other assets | 125,000 | (274,000) |
Accounts and taxes payable | 248,000 | (1,140,000) |
Accrued liabilities | 17,320,000 | 12,795,000 |
Net cash provided by operating activities | 48,600,000 | 30,597,000 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (6,473,000) | (11,428,000) |
Net cash (used in) investing activities | (6,473,000) | (11,428,000) |
Cash Flows from Financing Activities | ||
Purchase of treasury stock | (11,302,000) | (11,187,000) |
Exercise of common stock options | 3,285,000 | 1,308,000 |
Exercise of employee stock purchase options | 252,000 | 232,000 |
Net cash (used in) financing activities | (7,765,000) | (9,647,000) |
Increase in cash and cash equivalents | 34,362,000 | 9,522,000 |
Cash and cash equivalents at beginning of period | 55,771,000 | 28,611,000 |
Cash and cash equivalents at end of period | 90,133,000 | 38,133,000 |
Supplemental Cash Flow Information: | ||
Income taxes paid | $ 5,585,000 | $ 5,197,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies 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. 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, 2018. Accordingly, note disclosures which would substantially duplicate the disclosures contained in the March 31, 2018 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. During the period subsequent to the quarter ended September 30, 2018, the Company repurchased 81,308 shares of common stock for $4,599,000 at an average of $56.56 per share of common stock. These shares of common stock were repurchased under the Company’s share repurchase program described in Note 4. 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 and six months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019. For further information, refer to the audited consolidated financial statements and notes for the fiscal year ended March 31, 2018 included in the Company's Annual Report on Form 10-K filed with the SEC on June 8, 2018. Recent Accounting Pronouncements: 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. The Company is currently evaluating the impact of adoption on its consolidated financial position, results of operations, and cash flows. Guidance Adopted: 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 the Company’s fiscal year beginning April 1, 2018. The Company has adopted this standard as of April 1, 2018. Refer to Note 2 of the accompanying consolidated financial statements for a description of the impact of the adopted guidance. 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. The Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. 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 Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2 – Revenue Recognition The Company adopted ASC 606 using the modified retrospective method for those contracts which were not substantially completed as of the transition date. The reported results for the three and six months ended September 30, 2018 reflect the application of the guidance of ASC 606 while the reported results for the three and six months ended September 30, 2017 were prepared under the guidance of ASC 605. There was no material impact to any of the line items within the Company’s Consolidated Statements of Income or Consolidated Balance Sheets as a result of applying ASC 606 for the three and six months ended September 30, 2018. Revenue from Contracts with Customers Revenue is recognized when control of the promised services are transferred to the Company’s customers in an amount that reflects the consideration expected to be entitled to in exchange for those services. As the Company completes its performance obligations which are identified below, it has an unconditional right to consideration as outlined in the Company’s contracts. Generally, the Company’s accounts receivable are expected to be collected in 30 days in accordance with the underlying payment terms. The Company generates revenue through its patient management and network solutions service lines. The Company operates in one reportable operating segment, managed care. Patient Management Service Line The patient management service line provides services primarily related to Workers’ Compensation claims management and case management. This service line also includes additional services such as accident and health claims programs. Each claim referred by the customer is considered an additional optional purchase of claims management services under the agreement with the customer. The transaction price is readily available from the contract and is fixed for each service. Revenue is recognized over time as services are provided as the performance obligations are satisfied through the effort expended to research, investigate, evaluate, document, and report the claim and control of these services are transferred to the customer. Revenue is recognized based on historical claim closure rates and claim type applied utilizing a portfolio approach based on time elapsed for these claims, generally between three and fifteen months. The Company believes this approach reasonably reflects the transfer of the claims management services to its customer. The Company’s obligation to manage claims and cases under the patient management service line can range from less than one year to multi-year contracts. They are generally one year under the terms of the contract; however, many of these contracts contain auto-renewal provisions and the Company’s customer relationships can span multiple years. Under certain claims management agreements, the Company receives consideration from a customer at contract inception prior to transferring services to the customer, however, it would begin performing services immediately. The period between a customer’s payment of consideration and the completion of the promised services is generally less than one year. There is no difference between the amount of promised consideration and the cash selling price of the promised services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing its services. The patient management service line also offers case managers who provide administration services by proactively managing medical treatment for claimants while facilitating an understanding of and participation in their rehabilitation process. Revenue for case management services are recognized over time as the performance obligations are satisfied through the effort expended to manage the medical treatment for claimants and control of these services are transferred to the customer. Case management services are generally billed based on time incurred, are considered variable consideration, and revenue is recognized at the amount in which the Company has the right to invoice for services performed. The Company believes this approach reasonably reflects the transfer of the case management service to the customer. Network Solutions Service Line Network solutions services consist primarily of medical bill review and third-party services. Medical bill review services provide an analysis of medical charges for customers’ claims to identify opportunities for savings. Medical bill review services revenues are recognized at a point in time when control of the service is transferred to the customer. Revenue is recognized based upon the transfer of the results of the medical bill review service to the customer as this is the most accurate depiction of the transfer of the service to the customer. Medical bill review revenues are variable, generally based on performance metrics set forth in the underlying contracts. Each period, the Company bases its estimates on a contract-by-contract basis. The Company makes its best estimate of amounts the Company has earned and expects to be collected using historical averages and other factors to project such revenues. Variable consideration is recognized when the Company concludes that it is probable that a significant revenue reversal will not occur in future periods. Third-party services revenue includes pharmacy, directed care services and other services, and includes amounts received from customers compensating the Company for certain third-party costs associated with providing its integrated network solutions services. The Company is considered the principal in these transactions as it directs the third party, controls the specified service, performs program utilization review, directs payment to the provider, accepts the financial risk of loss associated with services rendered and combines the services provided into an integrated solution, as specified within the Company’s client contracts. The Company has the ability to influence contractual fees with clients and possess the financial risk of loss in certain contractual obligations. These factors indicate the Company is the principal and, as such, it is required to recognize revenue gross and service partner vendor fees in the operating expense in the Company’s Consolidated Income Statements. The following table presents revenues disaggregated by service line for the three and six months ended September 30, 2018: Three Months Ended Six Months Ended September 30, 2018 September 30, 2018 Patient management services $ 91,945,000 $ 179,836,000 Network solutions services 56,231,000 118,738,000 Total services $ 148,176,000 $ 298,574,000 Arrangements with Multiple Performance Obligations For many of the Company’s services, the Company typically has one performance obligation; however, it also provides the customer with an option to acquire additional services. The Company offers multiple services under its patient management and network solutions service lines. The Company typically provides a menu of offerings from which the customer may choose to purchase. The price of each service is separate and distinct and provides a separate and distinct value to the customer. Pricing is generally consistent for each service irrespective of the other services or quantities requested by the customer. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivables, contract assets (reported as unbilled revenues at estimated billable amounts) and contract liabilities (reported as deferred revenues) on the Company’s Consolidated Balance Sheets. Unbilled revenues is a contract asset for revenue that has been recognized in advance of billing the customer, resulting from professional services delivered that the Company expects and is entitled to receive as consideration under certain contracts. Billing requirements vary by contract but substantially all unbilled revenues are billed within one year. September 30, 2018 Billed receivables $ 55,180,000 Allowance for doubtful accounts $ (5,625,000 ) Contract assets 15,510,000 Accounts receivable, net $ 65,065,000 When the Company receives consideration from a customer prior to transferring services to the customer under the terms of certain claims management agreements, it records deferred revenues on the Company’s Consolidated Balance Sheets, which represents a contract liability. Certain services, such as claims management, are provided under fixed-fee service agreements and require the Company to manage claims over a contract period, typically for one year with the option for auto renewal, with the fixed fee renewing on the anniversary date of such contracts. The Company recognizes deferred revenues as revenues as it performs services and transfers control of the services to the customer and satisfies the performance obligation which it determines utilizing a portfolio approach. For all fixed fee service agreements, revenues are recognized over the expected service periods, by type of claim. The table below presents the deferred revenues balance as of the transition date and the significant activity affecting deferred revenues during the six months ended September 30, 2018: September 30, 2018 Beginning balance at April 1, 2018 $ 15,316,000 Additions 15,054,000 Revenue recognized from beginning of period (7,927,000 ) Revenue recognized from additions (5,487,000 ) Ending balance at September 30, 2018 $ 16,956,000 Remaining Performance Obligations As of September 30, 2018, the Company had $50.6 million of remaining performance obligations related to claims and non-claims services for which the price is fixed. Remaining performance obligations consist of deferred revenues as well as certain unbilled receivables that are considered contract assets. The Company expects to recognize approximately 78% of its remaining performance obligations as revenues within one year and the remaining balance thereafter. See the discussion below regarding the practical expedients elected for the disclosure of remaining performance obligations. Costs to Obtain a Contract The Company has an internal sales force compensation program where remuneration is based solely on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as a contract asset on the Company’s Consolidated Balance Sheets. Practical Expedients Elected As a practical expedient, the Company does not adjust the consideration in a contract for the effects of a significant financing component. It expects, at contract inception, that the period between a customer’s payment of consideration and the transfer of promised services to the customer will be one year or less. For patient management services that are billed on a time-and-expense incurred or per unit basis and revenue is recognized over time, the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not disclose the value of remaining performance obligations for (i) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed, and (ii) contracts with variable consideration allocated entirely to a single performance obligation. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Options | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation and Stock Options | Note 3 — 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 September 30, 2018, options exercisable for up to 19,865,000 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 six months ended September 30, 2018 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 and the expected option life. The Company accounts for forfeitures as they occur, rather than estimating expected forfeitures. 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 September 30, 2018 and 2017 using the Black-Scholes option-pricing model: Three Months Ended September 30, 2018 2017 Risk-free interest rate 2.85% 1.79% Expected volatility 39% 40% Expected dividend yield 0.00% 0.00% Expected weighted average life of option in years 4.4 years 4.4 years For the three months ended September 30, 2018 and 2017, the Company recorded share-based compensation expense of $908,000 and $607,000, respectively. For the six months ended September 30, 2018 and 2017, the Company recorded share-based compensation expense of $2,087,000 and $1,529,000, 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 and six months ended September 30, 2018, respectively. Three Months Ended September 30, 2018 September 30, 2017 Cost of revenues $ 446,000 $ 411,000 General and administrative 462,000 196,000 Total cost of stock-based compensation included in income before income tax provision 908,000 607,000 Amount of income tax benefit recognized (207,000 ) (185,000 ) Amount charged against net income $ 701,000 $ 422,000 Effect on basic earnings per share $ (0.04 ) $ (0.02 ) Effect on diluted earnings per share $ (0.04 ) $ (0.02 ) Six Months Ended September 30, 2018 September 30, 2017 Cost of revenues $ 877,000 $ 893,000 General and administrative 1,210,000 636,000 Total cost of stock-based compensation included in income before income tax provision 2,087,000 1,529,000 Amount of income tax benefit recognized (475,000 ) (466,000 ) Amount charged against net income $ 1,612,000 $ 1,063,000 Effect on basic earnings per share $ (0.09 ) $ (0.06 ) Effect on diluted earnings per share $ (0.08 ) $ (0.06 ) The following table summarizes information for all stock options for the three and six months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,063,254 $ 40.43 1,151,722 $ 33.24 Options granted 59,800 57.35 73,650 48.35 Options exercised (66,870 ) 33.50 (145,911 ) 25.60 Options cancelled/forfeited (2,877 ) 40.45 (10,958 ) 38.39 Options outstanding, ending 1,053,307 $ 41.81 1,068,503 $ 35.28 Six Months Ended September 30, 2018 Six Months Ended September 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,064,439 $ 39.45 1,143,928 $ 32.02 Options granted 116,600 53.48 151,050 47.11 Options exercised (121,108 ) 32.30 (211,832 ) 25.93 Options cancelled/forfeited (6,624 ) 45.32 (14,643 ) 39.28 Options outstanding, ending 1,053,307 $ 41.81 1,068,503 $ 35.28 The following table summarizes the status of stock options outstanding and exercisable at September 30, 2018: 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 $32.10 245,758 2.74 $ 25.91 152,634 $ 22.13 $32.11 to $40.57 224,711 2.72 $ 35.90 130,898 $ 36.24 $40.58 to $46.10 217,171 2.82 $ 44.99 118,156 $ 44.95 $46.11 to $57.75 365,667 4.59 $ 54.77 18,041 $ 48.35 Total 1,053,307 3.42 $ 41.81 419,729 $ 34.08 The following table summarizes the status of all outstanding options at September 30, 2018, 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 September 30, 2018 Options outstanding at July 1, 2018 1,063,254 $ 40.43 Granted 59,800 57.35 Exercised (66,870 ) 33.50 Cancelled – forfeited (473 ) 41.83 Cancelled – expired (2,404 ) 37.43 Ending outstanding 1,053,307 $ 41.81 3.42 $ 19,420,784 Ending vested and expected to vest 944,112 $ 42.79 3.58 $ 18,857,884 Ending exercisable at September 30, 2018 419,729 $ 34.08 2.67 $ 10,983,262 The weighted-average grant-date fair value of options granted during the three months ended September 30, 2018 and 2017, was $20.75 and $17.15, 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 $270,000 and $13,000 of stock compensation expense for the three months ended September 30, 2018 and 2017, respectively, for performance-based stock options. |
Treasury Stock
Treasury Stock | 6 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Treasury Stock | Note 4 — 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 $442 million on the repurchase of 35,081,057 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 $12.61 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 and six months ended September 30, 2018, the Company repurchased 133,425 shares of its common stock for $7.8 million at an average price of $58.58 per share and 199,978 shares of the Company’s common stock for $11.3 million at an average price of $56.52 per share, respectively. The Company had 18,826,375 shares of common stock outstanding as of September 30, 2018, net of the 35,081,057 shares in treasury. During the period subsequent to the quarter ended September 30, 2018, the Company repurchased 81,308 shares of its common stock for $4,599,000 at an average price of $56.56 per share. |
Weighted Average Shares and Net
Weighted Average Shares and Net Income Per Share | 6 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Weighted Average Shares and Net Income Per Share | Note 5 — Weighted Average Shares and Net Income Per Share Basic weighted average common shares outstanding increased to 18,877,000 for the quarter ended September 30, 2018 from 18,759,000 for the quarter ended September 30, 2017. Diluted weighted average common and common equivalent shares outstanding increased to 19,089,000 for the quarter ended September 30, 2018 from 18,966,000 for the quarter ended September 30, 2017. Basic weighted average common shares outstanding increased to 18,899,000 for the six months ended September 30, 2018 from 18,785,000 for the six months ended September 30, 2017. Diluted weighted average common and common equivalent shares outstanding increased to 19,095,000 for the six months ended September 30, 2018 from 18,983,000 for the six months ended September 30, 2017. 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 and six months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 Net Income $ 12,789,000 $ 8,393,000 Basic: Weighted average common shares outstanding 18,877,000 18,759,000 Net Income per share $ 0.68 $ 0.45 Diluted: Weighted average common shares outstanding 18,877,000 18,759,000 Treasury stock impact of stock options 212,000 207,000 Total common and common equivalent shares 19,089,000 18,966,000 Net Income per share $ 0.67 $ 0.44 Six Months Ended September 30, 2018 2017 Net Income $ 24,567,000 $ 17,168,000 Basic: Weighted average common shares outstanding 18,899,000 18,785,000 Net Income per share $ 1.30 $ 0.91 Diluted: Weighted average common shares outstanding 18,899,000 18,785,000 Treasury stock impact of stock options 196,000 198,000 Total common and common equivalent shares 19,095,000 18,983,000 Net Income per share $ 1.29 $ 0.90 |
Shareholder Rights Plan
Shareholder Rights Plan | 6 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Shareholder Rights Plan | Note 6 — 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, 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 | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 7 — Other Intangible Assets The following table summarizes other intangible assets at September 30, 2018: Cost, Net of Six Months Ended Accumulated Accumulated September 30, 2018 Amortization at Amortization at Item Life Cost Amortization Expense September 30, 2018 September 30, 2018 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 216,000 4,782,000 3,140,000 TPA Licenses 15 Years 204,000 7,000 152,000 52,000 Total $ 8,901,000 $ 223,000 $ 5,709,000 $ 3,192,000 The following table summarizes other intangible assets at March 31, 2018: Cost, Net of Fiscal 2018 Accumulated Accumulated Amortization Amortization at Amortization at Item Life Cost Expense March 31, 2018 March 31, 2018 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 423,000 4,566,000 3,356,000 TPA Licenses 15 Years 204,000 14,000 145,000 59,000 Total $ 8,901,000 $ 437,000 $ 5,486,000 $ 3,415,000 |
Line of Credit
Line of Credit | 6 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Line of Credit | Note 8 — Line of Credit In September 2018, 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 September 30, 2018, 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 2019. |
Contingencies and Legal Proceed
Contingencies and Legal Proceedings | 6 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Legal Proceedings | Note 9 — 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 | 6 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accounts and Taxes Payable and Accrued Liabilities | Note 10 — Accounts and Taxes Payable and Accrued Liabilities The following table sets forth accounts payable, income taxes payable, and accrued liabilities at September 30, 2018 and March 31, 2018: September 30, 2018 March 31, 2018 Accounts payable $ 9,092,000 $ 11,787,000 Income taxes payable and uncertain tax positions 4,609,000 1,666,000 Total accounts and taxes payable $ 13,701,000 $ 13,453,000 September 30, 2018 March 31, 2018 Payroll, payroll taxes and employee benefits $ 24,835,000 $ 15,100,000 Customer deposits 41,333,000 35,496,000 Accrued professional service fees 5,814,000 5,782,000 Self-insurance accruals 3,642,000 3,627,000 Deferred revenue 16,956,000 15,316,000 Accrued rent 5,783,000 6,147,000 Other 3,493,000 3,068,000 Total accrued liabilities $ 101,856,000 $ 84,536,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
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. 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, 2018. Accordingly, note disclosures which would substantially duplicate the disclosures contained in the March 31, 2018 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. During the period subsequent to the quarter ended September 30, 2018, the Company repurchased 81,308 shares of common stock for $4,599,000 at an average of $56.56 per share of common stock. These shares of common stock were repurchased under the Company’s share repurchase program described in Note 4. 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 and six months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019. For further information, refer to the audited consolidated financial statements and notes for the fiscal year ended March 31, 2018 included in the Company's Annual Report on Form 10-K filed with the SEC on June 8, 2018. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: 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. The Company is currently evaluating the impact of adoption on its consolidated financial position, results of operations, and cash flows. Guidance Adopted: 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 the Company’s fiscal year beginning April 1, 2018. The Company has adopted this standard as of April 1, 2018. Refer to Note 2 of the accompanying consolidated financial statements for a description of the impact of the adopted guidance. 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. The Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. 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 Company adopted this guidance prospectively on April 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue by Service Line | The following table presents revenues disaggregated by service line for the three and six months ended September 30, 2018: Three Months Ended Six Months Ended September 30, 2018 September 30, 2018 Patient management services $ 91,945,000 $ 179,836,000 Network solutions services 56,231,000 118,738,000 Total services $ 148,176,000 $ 298,574,000 |
Schedule of Accounts Receivable, Net | September 30, 2018 Billed receivables $ 55,180,000 Allowance for doubtful accounts $ (5,625,000 ) Contract assets 15,510,000 Accounts receivable, net $ 65,065,000 |
Schedule of Deferred Revenues Balance as of Transition Date and Significant Activity Affecting Deferred Revenues | The table below presents the deferred revenues balance as of the transition date and the significant activity affecting deferred revenues during the six months ended September 30, 2018: September 30, 2018 Beginning balance at April 1, 2018 $ 15,316,000 Additions 15,054,000 Revenue recognized from beginning of period (7,927,000 ) Revenue recognized from additions (5,487,000 ) Ending balance at September 30, 2018 $ 16,956,000 |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Options (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and 2017 using the Black-Scholes option-pricing model: Three Months Ended September 30, 2018 2017 Risk-free interest rate 2.85% 1.79% Expected volatility 39% 40% Expected dividend yield 0.00% 0.00% Expected weighted average life of option in years 4.4 years 4.4 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 and six months ended September 30, 2018, respectively. Three Months Ended September 30, 2018 September 30, 2017 Cost of revenues $ 446,000 $ 411,000 General and administrative 462,000 196,000 Total cost of stock-based compensation included in income before income tax provision 908,000 607,000 Amount of income tax benefit recognized (207,000 ) (185,000 ) Amount charged against net income $ 701,000 $ 422,000 Effect on basic earnings per share $ (0.04 ) $ (0.02 ) Effect on diluted earnings per share $ (0.04 ) $ (0.02 ) Six Months Ended September 30, 2018 September 30, 2017 Cost of revenues $ 877,000 $ 893,000 General and administrative 1,210,000 636,000 Total cost of stock-based compensation included in income before income tax provision 2,087,000 1,529,000 Amount of income tax benefit recognized (475,000 ) (466,000 ) Amount charged against net income $ 1,612,000 $ 1,063,000 Effect on basic earnings per share $ (0.09 ) $ (0.06 ) Effect on diluted earnings per share $ (0.08 ) $ (0.06 ) |
Stock Options | The following table summarizes information for all stock options for the three and six months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,063,254 $ 40.43 1,151,722 $ 33.24 Options granted 59,800 57.35 73,650 48.35 Options exercised (66,870 ) 33.50 (145,911 ) 25.60 Options cancelled/forfeited (2,877 ) 40.45 (10,958 ) 38.39 Options outstanding, ending 1,053,307 $ 41.81 1,068,503 $ 35.28 Six Months Ended September 30, 2018 Six Months Ended September 30, 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Options outstanding, beginning 1,064,439 $ 39.45 1,143,928 $ 32.02 Options granted 116,600 53.48 151,050 47.11 Options exercised (121,108 ) 32.30 (211,832 ) 25.93 Options cancelled/forfeited (6,624 ) 45.32 (14,643 ) 39.28 Options outstanding, ending 1,053,307 $ 41.81 1,068,503 $ 35.28 |
Stock Options Outstanding and Exercisable | The following table summarizes the status of stock options outstanding and exercisable at September 30, 2018: 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 $32.10 245,758 2.74 $ 25.91 152,634 $ 22.13 $32.11 to $40.57 224,711 2.72 $ 35.90 130,898 $ 36.24 $40.58 to $46.10 217,171 2.82 $ 44.99 118,156 $ 44.95 $46.11 to $57.75 365,667 4.59 $ 54.77 18,041 $ 48.35 Total 1,053,307 3.42 $ 41.81 419,729 $ 34.08 |
Outstanding Options | The following table summarizes the status of all outstanding options at September 30, 2018, 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 September 30, 2018 Options outstanding at July 1, 2018 1,063,254 $ 40.43 Granted 59,800 57.35 Exercised (66,870 ) 33.50 Cancelled – forfeited (473 ) 41.83 Cancelled – expired (2,404 ) 37.43 Ending outstanding 1,053,307 $ 41.81 3.42 $ 19,420,784 Ending vested and expected to vest 944,112 $ 42.79 3.58 $ 18,857,884 Ending exercisable at September 30, 2018 419,729 $ 34.08 2.67 $ 10,983,262 |
Weighted Average Shares and N_2
Weighted Average Shares and Net Income Per Share (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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 and six months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 Net Income $ 12,789,000 $ 8,393,000 Basic: Weighted average common shares outstanding 18,877,000 18,759,000 Net Income per share $ 0.68 $ 0.45 Diluted: Weighted average common shares outstanding 18,877,000 18,759,000 Treasury stock impact of stock options 212,000 207,000 Total common and common equivalent shares 19,089,000 18,966,000 Net Income per share $ 0.67 $ 0.44 Six Months Ended September 30, 2018 2017 Net Income $ 24,567,000 $ 17,168,000 Basic: Weighted average common shares outstanding 18,899,000 18,785,000 Net Income per share $ 1.30 $ 0.91 Diluted: Weighted average common shares outstanding 18,899,000 18,785,000 Treasury stock impact of stock options 196,000 198,000 Total common and common equivalent shares 19,095,000 18,983,000 Net Income per share $ 1.29 $ 0.90 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | The following table summarizes other intangible assets at September 30, 2018: Cost, Net of Six Months Ended Accumulated Accumulated September 30, 2018 Amortization at Amortization at Item Life Cost Amortization Expense September 30, 2018 September 30, 2018 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 216,000 4,782,000 3,140,000 TPA Licenses 15 Years 204,000 7,000 152,000 52,000 Total $ 8,901,000 $ 223,000 $ 5,709,000 $ 3,192,000 The following table summarizes other intangible assets at March 31, 2018: Cost, Net of Fiscal 2018 Accumulated Accumulated Amortization Amortization at Amortization at Item Life Cost Expense March 31, 2018 March 31, 2018 Covenants Not to Compete 5 Years $ 775,000 $ — $ 775,000 $ — Customer Relationships 18-20 Years 7,922,000 423,000 4,566,000 3,356,000 TPA Licenses 15 Years 204,000 14,000 145,000 59,000 Total $ 8,901,000 $ 437,000 $ 5,486,000 $ 3,415,000 |
Accounts and Taxes Payable an_2
Accounts and Taxes Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and March 31, 2018: September 30, 2018 March 31, 2018 Accounts payable $ 9,092,000 $ 11,787,000 Income taxes payable and uncertain tax positions 4,609,000 1,666,000 Total accounts and taxes payable $ 13,701,000 $ 13,453,000 September 30, 2018 March 31, 2018 Payroll, payroll taxes and employee benefits $ 24,835,000 $ 15,100,000 Customer deposits 41,333,000 35,496,000 Accrued professional service fees 5,814,000 5,782,000 Self-insurance accruals 3,642,000 3,627,000 Deferred revenue 16,956,000 15,316,000 Accrued rent 5,783,000 6,147,000 Other 3,493,000 3,068,000 Total accrued liabilities $ 101,856,000 $ 84,536,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Oct. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2018 |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Number of shares of common stock repurchased | 133,425 | 199,978 | |
Treasury stock, value, acquired, cost method | $ 7,800,000 | $ 11,300,000 | |
Average price per share of common stock | $ 58.58 | $ 56.52 | |
Subsequent Event [Member] | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Number of shares of common stock repurchased | 81,308 | ||
Treasury stock, value, acquired, cost method | $ 4,599,000 | ||
Average price per share of common stock | $ 56.56 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 6 Months Ended |
Sep. 30, 2018USD ($)SegmentPerformanceObligation | |
Disaggregation Of Revenue [Line Items] | |
Accounts receivable due period | 30 days |
Number of reportable segments | Segment | 1 |
Revenue recognition, number of performance obligation | PerformanceObligation | 1 |
Latest duration of unbilled revenue, billing | 1 year |
Revenue, remaining performance obligation, amount | $ | $ 50.6 |
Revenue, remaining performance obligation, percentage | 78.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | The Company expects to recognize approximately 78% of its remaining performance obligations as revenues within one year and the remaining balance thereafter. |
Revenue, remaining performance obligation, expected recognition as revenue, period | 1 year |
Capitalized contract cost, judgment | The Company has an internal sales force compensation program where remuneration is based solely on the revenues recognized in the period and does not represent an incremental cost to the Company which provides a future benefit expected to be longer than one year and would meet the criteria to be capitalized and presented as a contract asset on the Company’s Consolidated Balance Sheets. |
Period between consideration received and service rendered | one year or less |
Patient Management Services [Member] | |
Disaggregation Of Revenue [Line Items] | |
Contract with customer, performance obligation, description | The Company’s obligation to manage claims and cases under the patient management service line can range from less than one year to multi-year contracts. They are generally one year under the terms of the contract; however, many of these contracts contain auto-renewal provisions and the Company’s customer relationships can span multiple years. Under certain claims management agreements, the Company receives consideration from a customer at contract inception prior to transferring services to the customer, however, it would begin performing services immediately. The period between a customer’s payment of consideration and the completion of the promised services is generally less than one year. There is no difference between the amount of promised consideration and the cash selling price of the promised services. The fee is billed upfront by the Company in order to provide customers with simplified and predictable ways of purchasing its services. |
Patient Management Services [Member] | Minimum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition, time elapsed for claims | 3 months |
Patient Management Services [Member] | Maximum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition, time elapsed for claims | 15 months |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenues Disaggregated by Service Line (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total services | $ 148,176,000 | $ 136,431,000 | $ 298,574,000 | $ 274,043,000 |
Patient Management Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total services | 91,945,000 | 179,836,000 | ||
Network Solutions Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total services | $ 56,231,000 | $ 118,738,000 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Accounts Receivable, Net (Detail) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Accounts Receivable Net Current [Abstract] | ||
Billed receivables | $ 55,180,000 | |
Allowance for doubtful accounts | (5,625,000) | |
Contract assets | 15,510,000 | |
Accounts receivable, net | $ 65,065,000 | $ 64,940,000 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Deferred Revenues Balance as of Transition Date and Significant Activity Affecting Deferred Revenues (Detail) | 6 Months Ended |
Sep. 30, 2018USD ($) | |
Change In Contract With Customer Liability [Abstract] | |
Beginning balance at April 1, 2018 | $ 15,316,000 |
Additions | 15,054,000 |
Revenue recognized from beginning of period | (7,927,000) |
Revenue recognized from additions | (5,487,000) |
Ending balance at September 30, 2018 | $ 16,956,000 |
Stock-Based Compensation and _3
Stock-Based Compensation and Stock Options - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
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 | $ 20.75 | $ 17.15 | ||
Time Based Options and Performance Based Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 908,000 | $ 607,000 | $ 2,087,000 | $ 1,529,000 |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 270,000 | $ 13,000 | ||
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 | 19,865,000 | 19,865,000 | ||
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 _4
Stock-Based Compensation and Stock Options - Fair Value of Options Granted (Detail) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 2.85% | 1.79% |
Expected volatility | 39.00% | 40.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected weighted average life of option in years | 4 years 4 months 24 days | 4 years 4 months 24 days |
Stock-Based Compensation and _5
Stock-Based Compensation and Stock Options - Stock Compensation Expense for Time Based Options and Performance Based Options (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Effect on basic earnings per share | $ 0.68 | $ 0.45 | $ 1.30 | $ 0.91 |
Effect on diluted earnings per share | $ 0.67 | $ 0.44 | $ 1.29 | $ 0.90 |
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 | $ 908,000 | $ 607,000 | $ 2,087,000 | $ 1,529,000 |
Amount of income tax benefit recognized | (207,000) | (185,000) | (475,000) | (466,000) |
Amount charged against net income | $ 701,000 | $ 422,000 | $ 1,612,000 | $ 1,063,000 |
Effect on basic earnings per share | $ (0.04) | $ (0.02) | $ (0.09) | $ (0.06) |
Effect on diluted earnings per share | $ (0.04) | $ (0.02) | $ (0.08) | $ (0.06) |
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 | $ 446,000 | $ 411,000 | $ 877,000 | $ 893,000 |
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 | $ 462,000 | $ 196,000 | $ 1,210,000 | $ 636,000 |
Stock-Based Compensation and _6
Stock-Based Compensation and Stock Options - Stock Options (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Options outstanding, beginning balance, Shares | 1,063,254 | 1,151,722 | 1,064,439 | 1,143,928 |
Options granted, Shares | 59,800 | 73,650 | 116,600 | 151,050 |
Options exercised, Shares | (66,870) | (145,911) | (121,108) | (211,832) |
Options cancelled/forfeited, Shares | (2,877) | (10,958) | (6,624) | (14,643) |
Options outstanding, ending balance, Shares | 1,053,307 | 1,068,503 | 1,053,307 | 1,068,503 |
Options outstanding, beginning balance, Weighted Average Exercise Price | $ 40.43 | $ 33.24 | $ 39.45 | $ 32.02 |
Options granted, Weighted Average Exercise Price | 57.35 | 48.35 | 53.48 | 47.11 |
Options exercised, Weighted Average Exercise Price | 33.50 | 25.60 | 32.30 | 25.93 |
Options cancelled/forfeited, Weighted Average Exercise Price | 40.45 | 38.39 | 45.32 | 39.28 |
Options outstanding, ending balance, Weighted Average Exercise Price | $ 41.81 | $ 35.28 | $ 41.81 | $ 35.28 |
Stock-Based Compensation and _7
Stock-Based Compensation and Stock Options - Stock Options Outstanding and Exercisable (Detail) - $ / shares | 6 Months Ended | |||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Number of Outstanding Options | 1,053,307 | 1,063,254 | 1,064,439 | 1,068,503 | 1,151,722 | 1,143,928 |
Weighted Average Remaining Contractual Life | 3 years 5 months 1 day | |||||
Outstanding Options - Weighted Average Exercise Price | $ 41.81 | $ 40.43 | $ 39.45 | $ 35.28 | $ 33.24 | $ 32.02 |
Exercisable Options - Number of Exercisable Options | 419,729 | |||||
Exercisable Options - Weighted Average Exercise Price | $ 34.08 | |||||
Range of Exercise Price, $12.71 to $32.10 [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 | $ 32.10 | |||||
Number of Outstanding Options | 245,758 | |||||
Weighted Average Remaining Contractual Life | 2 years 8 months 26 days | |||||
Outstanding Options - Weighted Average Exercise Price | $ 25.91 | |||||
Exercisable Options - Number of Exercisable Options | 152,634 | |||||
Exercisable Options - Weighted Average Exercise Price | $ 22.13 | |||||
Range of Exercise Price, $32.11 to $40.57 [Member] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Range of Exercise Price, lower limit | 32.11 | |||||
Range of Exercise Price, upper limit | $ 40.57 | |||||
Number of Outstanding Options | 224,711 | |||||
Weighted Average Remaining Contractual Life | 2 years 8 months 19 days | |||||
Outstanding Options - Weighted Average Exercise Price | $ 35.90 | |||||
Exercisable Options - Number of Exercisable Options | 130,898 | |||||
Exercisable Options - Weighted Average Exercise Price | $ 36.24 | |||||
Range of Exercise Price, $40.58 to $46.10 [Member] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Range of Exercise Price, lower limit | 40.58 | |||||
Range of Exercise Price, upper limit | $ 46.10 | |||||
Number of Outstanding Options | 217,171 | |||||
Weighted Average Remaining Contractual Life | 2 years 9 months 25 days | |||||
Outstanding Options - Weighted Average Exercise Price | $ 44.99 | |||||
Exercisable Options - Number of Exercisable Options | 118,156 | |||||
Exercisable Options - Weighted Average Exercise Price | $ 44.95 | |||||
Range of Exercise Price, $46.11 to $57.75 [Member] | ||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||
Range of Exercise Price, lower limit | 46.11 | |||||
Range of Exercise Price, upper limit | $ 57.75 | |||||
Number of Outstanding Options | 365,667 | |||||
Weighted Average Remaining Contractual Life | 4 years 7 months 2 days | |||||
Outstanding Options - Weighted Average Exercise Price | $ 54.77 | |||||
Exercisable Options - Number of Exercisable Options | 18,041 | |||||
Exercisable Options - Weighted Average Exercise Price | $ 48.35 |
Stock-Based Compensation and _8
Stock-Based Compensation and Stock Options - Outstanding Options (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Options outstanding, beginning balance, Shares | 1,063,254 | 1,151,722 | 1,064,439 | 1,143,928 |
Granted, Number of Options | 59,800 | 73,650 | 116,600 | 151,050 |
Exercised, Number of Options | (66,870) | (145,911) | (121,108) | (211,832) |
Cancelled - forfeited, Number of Options | (473) | |||
Cancelled - expired, Number of Options | (2,404) | |||
Options outstanding, ending balance, Shares | 1,053,307 | 1,068,503 | 1,053,307 | 1,068,503 |
Ending vested and expected to vest, Number of Options | 944,112 | 944,112 | ||
Ending exercisable, Number of Options | 419,729 | 419,729 | ||
Options outstanding, beginning balance, Weighted Average Exercise Price | $ 40.43 | $ 33.24 | $ 39.45 | $ 32.02 |
Granted, Weighted Average Exercise Price per Share | 57.35 | 48.35 | 53.48 | 47.11 |
Exercised, Weighted Average Exercise Price per Share | 33.50 | 25.60 | 32.30 | 25.93 |
Cancelled - forfeited, Weighted Average Exercise Price per Share | 41.83 | |||
Cancelled - expired, Weighted Average Exercise Price per Share | 37.43 | |||
Options outstanding, ending balance, Weighted Average Exercise Price | 41.81 | $ 35.28 | 41.81 | $ 35.28 |
Ending vested and expected to vest, Weighted Average Exercise Price per Share | 42.79 | 42.79 | ||
Ending exercisable, Weighted Average Exercise Price per Share | $ 34.08 | $ 34.08 | ||
Option outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 5 months 1 day | |||
Ending vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 29 days | |||
Ending exercisable, Weighted Average Remaining Contractual Life (Years) | 2 years 8 months 1 day | |||
Option outstanding, Aggregate Intrinsic Value | $ 19,420,784 | $ 19,420,784 | ||
Ending vested and expected to vest, Aggregate Intrinsic Value | 18,857,884 | 18,857,884 | ||
Ending exercisable, Aggregate Intrinsic Value | $ 10,983,262 | $ 10,983,262 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Oct. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2017 |
Class of Stock [Line Items] | |||||
Number of shares of common stock authorized to repurchase | 36,000,000 | 36,000,000 | 1,000,000 | ||
Treasury stock, value | $ 442,291,000 | $ 442,291,000 | $ 430,989,000 | ||
Treasury stock, shares | 35,081,057 | 35,081,057 | 34,881,079 | ||
Average price per share of common stock | $ 58.58 | $ 56.52 | |||
Common stock, shares outstanding | 18,826,375 | 18,826,375 | 18,912,907 | ||
Number of shares of common stock repurchased | 133,425 | 199,978 | |||
Treasury stock, value, acquired, cost method | $ 7,800,000 | $ 11,300,000 | |||
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 | $ 12.61 | ||||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Average price per share of common stock | $ 56.56 | ||||
Number of shares of common stock repurchased | 81,308 | ||||
Treasury stock, value, acquired, cost method | $ 4,599,000 |
Weighted Average Shares and N_3
Weighted Average Shares and Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding | 18,877,000 | 18,759,000 | 18,899,000 | 18,785,000 |
Diluted weighted average common and common equivalent shares outstanding | 19,089,000 | 18,966,000 | 19,095,000 | 18,983,000 |
Weighted Average Shares and N_4
Weighted Average Shares and Net Income Per Share - Calculations of Basic and Diluted Weighted Average Shares (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net Income | $ 12,789,000 | $ 8,393,000 | $ 24,567,000 | $ 17,168,000 |
Basic: | ||||
Weighted average common shares outstanding | 18,877,000 | 18,759,000 | 18,899,000 | 18,785,000 |
Net Income per share | $ 0.68 | $ 0.45 | $ 1.30 | $ 0.91 |
Diluted: | ||||
Weighted average common shares outstanding | 18,877,000 | 18,759,000 | 18,899,000 | 18,785,000 |
Treasury stock impact of stock options | 212,000 | 207,000 | 196,000 | 198,000 |
Total common and common equivalent shares | 19,089,000 | 18,966,000 | 19,095,000 | 18,983,000 |
Net Income per share | $ 0.67 | $ 0.44 | $ 1.29 | $ 0.90 |
Shareholder Rights Plan - Addit
Shareholder Rights Plan - Additional Information (Detail) - $ / shares | 1 Months Ended | 6 Months Ended |
Nov. 30, 2008 | Sep. 30, 2018 | |
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 ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Mar. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 8,901,000 | $ 8,901,000 |
Amortization Expense | 223,000 | 437,000 |
Accumulated Amortization | 5,709,000 | 5,486,000 |
Cost, Net of Accumulated Amortization | $ 3,192,000 | $ 3,415,000 |
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 | 216,000 | 423,000 |
Accumulated Amortization | 4,782,000 | 4,566,000 |
Cost, Net of Accumulated Amortization | $ 3,140,000 | $ 3,356,000 |
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 | 7,000 | 14,000 |
Accumulated Amortization | 152,000 | 145,000 |
Cost, Net of Accumulated Amortization | $ 52,000 | $ 59,000 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - Revolving Credit Facility [Member] | 1 Months Ended | 6 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Credit facility with borrowing capacity | $ 10,000,000 | $ 10,000,000 |
Line of credit, interest rate description | 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. | |
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% | 125.00% |
Current debt to tangible net worth ratio | 125.00% | 125.00% |
Outstanding revolving loans | $ 0 | $ 0 |
Letters of credit in aggregate amount | $ 4,500,000 | $ 4,500,000 |
Renewed credit agreement expiration period | 2019-09 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
One Month London Interbank Offered Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% |
Accounts and Taxes Payable an_3
Accounts and Taxes Payable and Accrued Liabilities - Accounts Payable and Income Taxes Payable (Detail) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 9,092,000 | $ 11,787,000 |
Income taxes payable and uncertain tax positions | 4,609,000 | 1,666,000 |
Total accounts and taxes payable | $ 13,701,000 | $ 13,453,000 |
Accounts and Taxes Payable an_4
Accounts and Taxes Payable and Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 |
Payables And Accruals [Abstract] | ||
Payroll, payroll taxes and employee benefits | $ 24,835,000 | $ 15,100,000 |
Customer deposits | 41,333,000 | 35,496,000 |
Accrued professional service fees | 5,814,000 | 5,782,000 |
Self-insurance accruals | 3,642,000 | 3,627,000 |
Deferred revenue | 16,956,000 | 15,316,000 |
Accrued rent | 5,783,000 | 6,147,000 |
Other | 3,493,000 | 3,068,000 |
Total accrued liabilities | $ 101,856,000 | $ 84,536,000 |