CorVel Announces Revenues and Earnings

IRVINE, California, February 1, 2011 — CorVel Corporation (NASDAQ: CRVL) today announced earnings per share of $0.56 for the quarter ended December 31, 2010, a 4% increase compared to $0.54 in the same quarter of the prior fiscal year. Earnings per share for the nine months ended December 31, 2010 were $1.82, a 20% increase over the $1.52 earnings per share for the nine months ended December 31, 2009. The Company reported quarterly revenues of $95.3 million, a 10% increase compared to $86.6 million in the same quarter of the prior fiscal year. Revenues for the nine months ended December 31, 2010 were $280.2 million, a 12% increase over the $250.4 million for the nine months ended December 31, 2009.

The revenue growth for the current quarter was lead by a 12% growth in its Network Solutions product line and an 8% increase in the Company’s Patient Management service line. Networks Solutions growth was driven by increased transaction volume in the Company’s medical bill review product, as well as increasing growth in the Pharmacy Management and Directed Care product lines. The Patient Management service line includes traditional case management services and claims management. Claims Management benefited from the implementation of new clients and the Company’s continual investment in workflow processing to increase efficiencies while helping clients to control medical and indemnity costs.

About CorVel
CorVel Corporation is a national provider of leading-edge services and solutions in the field of disability management. CorVel specializes in applying information technology and e-commerce applications to improve outcomes in the workers’ compensation, group health, auto and disability management insurance markets. The Company provides claims management solutions in addition to networks of preferred providers, case management, utilization management and medical bill review to more than 2,000 clients nationwide. Leveraging its commitment to flexibility and personal service, CorVel delivers custom solutions for employers, insurers, third party administrators and government entities.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company, management’s beliefs, and certain assumptions made by the Company, and events beyond the Company’s control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to the Company’s results of operations, product investment strategies and expansion of pharmacy solutions and directed care product lines. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company’s actual results to differ materially and adversely from those expressed in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to, factors described in this press release and the Company’s filings with the Securities and Exchange Commission, including but not limited to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2010 and the Company’s Quarterly Report on Form 10Q for the quarters ended June 30, 2010 and September 30, 2010. The forward-looking statements in this press release speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Quarterly Results - Income Statement (Unaudited)
Three and Nine Months Ended December 31, 2009 and 2010
  Three Months Ended Three Months Ended
  December 31, 2009 December 31, 2010
Revenues $86,629,000 $95,282,000
Cost of revenues 64,823,000 71,461,000
Gross profit 21,806,000 23,821,000
General and administrative 10,713,000 12,425,000
Income from operations 11,093,000 11,396,000
Income tax expense 4,418,000 4,672,000
Net income $6,675,000 $6,724,000
Earnings per share  
Basic $0.55 $0.57
Diluted $0.54 $0.56
Weighted shares  
Basic 12,237,000 11,749,000
Diluted 12,426,000 11,984,000
  Nine Nonths Ended Nine Nonths Ended
  December 31, 2009 December 31, 2010
Revenues $250,357,000 $280,177,000
Cost of revenues 186,602,000 209,314,000
Gross profit 63,755,000 70,863,000
General and administrative 31,369,000 38,082,000
Income from operations 32,386,000 32,781,000
Income tax expense 12,907,000 10,764,000
Net income $19,479,000 $22,017,000
Earnings per share  
Basic $1.54 $1.86
Diluted $1.52 $1.82
Weighted shares  
Basic 12,640,000 11,855,000
Diluted 12,801,000 12,091,000
Quarterly Results - Condensed Balance Sheet (Unaudited)
March 31, 2010 and December 31, 2010
  March 31, 2010 December 31, 2010
Cash $10,242,000 $15,769,000
Customer Deposits 1,691,000 3,219,000
Accounts receiveable, net 43,930,000 43,471,000
Prepaid expenses and taxes 6,419,000 4,109,000
Deferred income taxes 4,864,000 5,927,000
Property, net 30,026,000 36,720,000
Goodwill and other assets 43,196,000 43,738,000
   Total $140,368,000 $152,953,000
Accounts and taxes payable $14,495,000 $15,632,000
Accrued liablities 25,455,000 30,724,000
Deferred tax liability 4,690,000 4,767,000
Paid in capital 90,220,000 97,085,000
Treasury stock -218,323,000 -241,103,000
Retained earnings 223,831,000 245,848,000
   Total $140,368,000 $152,953,000