CORVEL CORP Segments Disclosure
Note 12 — Segment Reporting
The Company operates as one operating segment, and the Company’s Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM reviews segment financial information presented on a consolidated basis, including revenue, gross profit and operating expenses, and considers budget-to-actual variances for the purposes of making operating decisions, assessing financial performance and allocating resources.
The Company derives the majority of its revenues from providing patient management and network solutions services to payors of workers’ compensation benefits, automobile insurance claims and group health insurance benefits. Patient management services include claims administration, utilization review, medical case management, and vocational rehabilitation. Network solutions services include fee schedule auditing, hospital bill auditing, coordination of independent medical examinations, diagnostic imaging review services and preferred provider referral services. The percentages of revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2025, 2024 and 2023 are listed below.
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Patient management services |
|
|
64.9 |
% |
|
|
66.6 |
% |
|
|
66.6 |
% |
Network solutions services |
|
|
35.1 |
% |
|
|
33.4 |
% |
|
|
33.4 |
% |
|
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
The Company’s management is structured geographically with regional vice presidents who are responsible for all services provided by the Company in his or her particular region and responsible for the operating results of the Company in multiple states. These regional vice presidents have area and district managers who are also responsible for all services provided by the Company in their given area and district.
Under ASC 280-10, two or more operating segments may be aggregated into a single operating segment for financial reporting purposes if aggregation is consistent with the objective and basic principles, if the segments have similar economic characteristics, and if the segments are similar in each of the following areas: (i) the nature of products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, and (iv) the methods used to distribute their products or provide their services. The Company believes each of the Company’s regions meet these criteria as they provide similar managed care services to similar customers using similar methods of production and distribution. All of the Company’s regions perform both patient management and network solutions services.
Because the Company believes it meets each of the criteria set forth above and each of the Company’s regions has similar economic characteristics, the Company aggregates its results of operations in one reportable operating segment.
The following table presents the financial information for the Company’s one reportable and operating segment for fiscal years ended March 31, 2025, 2024 and 2023:
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenues |
|
$ |
895,589,000 |
|
|
$ |
795,311,000 |
|
|
$ |
718,562,000 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Labor expenses |
|
|
445,701,000 |
|
|
|
406,422,000 |
|
|
|
361,555,000 |
|
Direct product expenses |
|
|
269,471,000 |
|
|
|
258,489,000 |
|
|
|
232,446,000 |
|
Depreciation and amortization expenses |
|
|
29,536,000 |
|
|
|
26,252,000 |
|
|
|
25,121,000 |
|
Income tax provision |
|
|
25,659,000 |
|
|
|
18,849,000 |
|
|
|
18,189,000 |
|
Other items (1) |
|
|
30,057,000 |
|
|
|
9,047,000 |
|
|
|
14,886,000 |
|
Net income |
|
$ |
95,165,000 |
|
|
$ |
76,252,000 |
|
|
$ |
66,365,000 |
|
(1) |
Includes other operating costs (such as marketing and maintenance expenses), net gain (loss) on asset sales and disposals and other costs. |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 23, 2025 | Showing above |
| 2024 | May 24, 2024 | |
| 2023 | May 26, 2023 | |
| 2020 | Jun 10, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.