2011 Year in Review

This past year has been one of methodical progress for CorVel. In Fiscal 2011 we built momentum in our financial results and made significant progress in our continued strategic transition from a traditional managed care company to a full service workers' compensation solution. Throughout Fiscal 2011, CorVel's growth rate gained momentum enabling us to achieve a 13% increase over last year, increasing our revenues to $381M for Fiscal 2011. That level of sustained growth allowed us to report record revenues in all four quarters of the fiscal year, but also our first $100M revenue quarter in March 2011. EPS for the year was $2.05, negatively impacted by $.46 from the settlement of a class action lawsuit in Louisiana. Excluding the one-time charge, we would have had record EPS performance to go with our record revenue performance, yet putting the Louisiana issue behind us was an important step.

This past year has been critical for CorVel strategically as we continue to develop our Enterprise Comp services focused on the employer market. While our strategic transition presents a welcome set of challenges, in retrospect we only wish we would have begun earlier. CorVel's commitment to an improved claims management process remains undeterred. In fact, our resolve has more conviction than ever before. CorVel's ability to provide the entire suite of services for employers to more effectively manage their workers' compensation program in an integrated, cohesive delivery system has put us in a unique position. More than ten years ago, we began work on our CareMC website with the aspirations that it would ultimately become the single portal that any employer would need to access in order to manage all of their workers' compensation needs. Today, those aspirations are becoming a reality. Through foresight and continued investment, CorVel is using its long-term technology investment to enable the delivery of more timely information as well as workflow enhancements, all with the intent of improving outcomes of workers' compensation claims.

This past year has been one of acceleration in the technology world, and advancements seem to be progressing at a pace that few, if any, have ever witnessed. The proliferation of smart phones and tablet computers allows each of us to be Connected at any time, from anywhere. This capability provides each of us with immediate access and begins to present business opportunities that were previously predicated on a less connected environment. CorVel is working to leverage the new wave of technology in order to connect all of the parties involved in the workers' compensation process in ways that were unimaginable in the past.

In closing, we would like to thank our customers, our associates and all of our stakeholders. It is with great respect that we endeavor to responsibly manage and positively impact the customer relationships and fiscal responsibilities with which we are entrusted. Fiscal 2011 was a strong year for the CorVel, and we are as equally optimistic about Fiscal 2012. We look forward to the challenges and opportunities of the coming year and the continued execution of our strategy.