CorVel Announces Revenues and Earnings

IRVINE, California, November 1, 2011 — CorVel Corporation (NASDAQ: CRVL) today announced the results for the quarter ended September 30, 2011. Revenues for the quarter ended September 30, 2011 were a record $105 million, a 12% increase over the $93 million in revenue in the September 2010 quarter. Net income for the quarter was $7.9 million. Earnings per share for the quarter ended September 30, 2011 were $0.68, a 10% increase over the $.62 in the September 2010 quarter.

Revenues for the six months ended September 30, 2011 were a record $207 million, a 12% increase over the $185 million in revenue in the six months ended September 30, 2010. Net income for the six month period was a record $16.1 million. Earnings per share for the six months ended September 30, 2011 were a record $1.37, a 9% increase over the $1.26 earnings per share for the six months ended September 30, 2010.

The revenue growth for the current quarter was paced by a balanced 12% increase in the Company’s Network Solutions service line and 12% growth in its Patient Management service line. Network Solutions growth included the continued expansion of CorVel’s pharmacy benefit management (PBM) service offering. The Patient Management service line includes the Company’s fully integrated claims solution, Enterprise Comp, as well as traditional case management services. Claims management growth included strong sales momentum and the delivery of value added services designed to reduce costs.

"The quarter’s results reflect sustained growth in our Enterprise Comp product, as well as our continued success in firmly establishing the CorVel brand in the TPA industry", said Dan Starck, CorVel President and CEO, "The overlay of our unique approach to workers’ compensation claims management on our national footprint has made CorVel a viable option for local, regional and national employers."

About CorVel

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, and expansion of case management, claims administration, and bill review 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, 2011 and the Company’s Quarterly Report on Form 10Q for quarter ended June 30, 2011. 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
Quarters Ended September 30, 2010 and 2011
  Quarter Ended Quarter Ended
  September 30, 2010 September 30, 2011
Revenues 93,392,000 104,552,000
Cost of revenues 70,153,000 78,940,000
Gross profit 23,239,000 25,612,000
General and administrative 14,171,000 12,592,000
Income from operations 9,068,000 13,020,000
Income tax expense 1,535,000 5,139,000
Net income 7,533,000 7,881,000
Earnings per share  
Basic $0.64 $0.68
Diluted $0.62 $0.68
Weighted shares  
Basic 11,861,000 11,526,000
Diluted 12,104,000 11,672,000
Quarterly Results - Condensed Balance Sheet - Unaudited
March 31, 2011 and September 30, 2011
  March 31, 2011 September 30, 2011
Cash 12,269,000 8,134,000
Customer Deposits 5,279,000 4,846,000
Accounts receiveable, net 48,964,000 50,826,000
Prepaid expenses and taxes 6,417,000 6,608,000
Deferred income taxes 9,298,000 9,759,000
Property, net 38,500,000 43,351,000
Goodwill and other assets 43,498,000 43,202,000
   Total 164,225,000 166,726,000
Accounts and taxes payable 14,590,000 17,956,000
Accrued liablities 40,248,000 30,325,000
Deferred tax liability 9,748,000 9,748,000
Paid in capital 100,076,000 103,606,000
Treasury stock -248,931,000 -258,936,000
Retained earnings 248,494,000 264,573,000
   Total 164,225,000 166,726,000