CorVel Announces Revenues and Earnings

IRVINE, California, May 26, 2011 — CorVel Corporation (NASDAQ: CRVL) today announced the results for the quarter and fiscal year ended March 31, 2011. Revenues for the quarter ended March 31, 2011 were a record $100 million, a 15% increase over the $88 million in revenue in the March 2010 quarter. Revenues for the fiscal year ended March 31, 2011 were $381 million, a 13% increase over the $338 million in revenue in fiscal 2010.

Earnings per share for the quarter ended March 31, 2011 were $0.22. The earnings per share for the March 2011 quarter were adversely impacted by $0.46 per share, after-tax, due to the $9 million settlement of a class action lawsuit in Louisiana which was disclosed in the Form 8-K filed with the Securities and Exchange Commission on April 1, 2011. The Company believes that earnings per share figures which exclude the impact of this litigation provides a more meaningful measure of its operating results for comparison to future periods and past periods. Earnings for the quarter ended March 31, 2010 were $0.54. Earnings per share for the fiscal year 2011 were $2.05. Earnings per share for fiscal 2010 were $2.06.

Gross profit for the quarter ended March 31, 2011 was $25.7 million, an 18% increase over the $21.8 million gross profit in the same quarter of the prior fiscal year. Gross profit for fiscal 2011 was $97 million, a 13% increase over the $86 million in gross profit in fiscal 2010.

The revenue growth for the current quarter was driven by a 14% increase in the Company's Patient Management service line and 16% growth in its Network Solutions product line. The Patient Management service line includes traditional case management services and claims management. Claims management growth included new customers and the improved delivery of CorVel's total suite of services. Network Solutions growth included improved volumes through the Company's medical bill review services and continued growth in ancillary networks, including pharmacy and physical therapy.

Over the past year, the Company continued to invest in information technology, including the development of several mobile apps for smart phones and tablet devices, in order to advance the pace of delivery of new features for clients. Utilizing the advances in mobile computing, the Company's goal is to continue to improve the workers' compensation experience for all constituents through applications designed to reduce inherent time delays in the claims process and improve claims outcomes.

About CorVel
CorVel Corporation is a national provider of industry-leading workers' compensation solutions for employers, third party administrators, insurance companies, and government agencies seeking to control costs and promote positive outcomes. We apply technology, intelligence, and a human touch to the problem of disability management so our clients can intervene early and often and are connected to the critical intelligence they need to proactively manage risk. With a robust technology platform at its core, our connected solution is delivered by a national team of associates who are committed to helping clients design and administer programs that meet their organization's performance goals.

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, September 30, 2010 and December 31, 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.

CORVEL CORPORATION
Quarterly Results - Income Statement
Quarters and Fiscal Years Ended March 31, 2010 and 2011
 
  Quarter Ended Quarter Ended
  March 31, 2010 March 31, 2011
Revenues 87,611,000 100,491,000
Cost of revenues 65,827,000 74,784,000
Gross profit 21,784,000 25,707,000
 
General and administrative 10,688,000 12,085,000
Charge for Louisiana litigation Settlement   9,000,000
Income from operations 11,096,000 4,622,000
 
Income tax expense 4,479,000 1,976,000
Net income 6,617,000 2,646,000
 
Earnings per share  
Basic $0.55 $0.23
Diluted $0.54 $0.22
 
Weighted shares  
Basic 12,078,000 11,639,000
Diluted 12,285,000 11,843,000
 
 
  Fiscal Year Ended Fiscal Year Ended
  March 31, 2010 March 31, 2011
Revenues 337,968,000 380,668,000
Cost of revenues 252,429,000 284,098,000
Gross profit 85,539,000 95,570,000
 
General and administrative 42,056,000 50,167,000
Charge for Louisiana litigation Settlement   9,000,000
Income from operations 43,483,000 37,403,000
 
Income tax expense 17,387,000 12,740,000
Net income 26,096,000 24,663,000
 
Earnings per share  
Basic $2.09 $2.09
Diluted $2.06 $2.05
 
Weighted shares  
Basic 12,499,000 11,801,000
Diluted 12,672,000 12,029,000
 
 
CORVEL CORPORATION
Quarterly Results - Condensed Balance Sheet
March 31, 2010 and March 31, 2011
 
  March 31, 2010 March 31, 2011
Cash 10,242,000 12,269,000
Customer Deposits 1,691,000 5,279,000
Accounts receiveable, net 43,930,000 48,964,000
Prepaid expenses and taxes 6,419,000 6,526,000
Deferred income taxes 4,864,000 9,298,000
Property, net 30,026,000 38,500,000
Goodwill and other assets 43,196,000 43,389,000
   Total 140,368,000 164,225,000
 
Accounts and taxes payable 14,495,000 14,591,000
Accrued liablities 25,455,000 40,247,000
Deferred tax liability 4,690,000 9,748,000
Paid in capital 90,220,000 100,076,000
Treasury stock -218,323,000 -248,931,000
Retained earnings 223,831,000 248,494,000
   Total 140,368,000 164,225,000