CorVel Announces Revenues and Earnings

IRVINE, California, January 29, 2013 — CorVel Corporation (NASDAQ: CRVL) today announced the results for the quarter and nine months ended December 31, 2012. Revenues for the quarter ended December 31, 2012 were a record $107 million, a 6% increase over revenues for the quarter ended December 31, 2011 of $101 million. Earnings per share for the quarter ended December 31, 2012 were $0.53, an increase of 13% over the $0.47 earnings per share for the quarter ended December 31, 2011.

Revenue growth for the quarter over the prior year was driven by a 13% increase in the Company's Patient Management service line which offset a 1% decrease in its Network Solutions service line. The Patient Management service line includes traditional case management services and claims management services. Claims management growth included new customers as well as revenue from liability claims services.

Revenues for the nine months ended December 31, 2012 were a record $317 million. Earnings per share for the nine months ended December 31, 2012 were $1.69. Earnings per share for the nine months ended December 31, 2011, were $1.84.

CorVel's full service workers' compensation solution, Enterprise Comp, continues to gain momentum with both brokers and employers. The Company continues to expand investments in the further integration of various components of claims administration. Liability management services now complement the Company's offerings in workers' compensation. Healthcare inflation has raised interest in the Company's claims management and cost containment services, including CorVel's Pharmacy Benefit Management (PBM) program.

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 risk management so our clients can intervene early and often and be 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, including claims management services. 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, 2012. 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 December 31, 2011 and December 31, 2012
  Quarter Ended Quarter Ended
  December 31, 2011 December 31, 2012
Revenues 101,381,000 107,287,000
Cost of revenues 80,155,000 85,553,000
Gross profit 21,226,000 21,734,000
General and administrative 12,332,000 11,710,000
Income from operations 8,894,000 10,024,000
Income tax expense 3,494,000 4,100,000
Net income 5,400,000 5,924,000
Earnings per share  
Basic $0.47 $0.53
Diluted $0.47 $0.53
Weighted shares  
Basic 11,421,000 11,117,000
Diluted 11,574,000 11,213,000
  Nine Months Nine Months
  December 31, 2011 December 31, 2012
Revenues 208,241,000 317,351,000
Cost of revenues 235.859,000 249.600,000
Gross profit 72,382,000 67,751,000
General and administrative 37,218,000 35,865,000
Income from operations 35,164,000 31,886,000
Income tax expense 13,685,000 12,736,000
Net income 21,479,000 19,150,000
Earnings per share  
Basic $1.86 $1.70
Diluted $1.84 $1.69
Weighted shares  
Basic 11,521,000 11,233,000
Diluted 11,677,000 11,338,000
Quarterly Results - Condensed Balance Sheet - Unaudited
March 31, 2012 and December 31, 2012
  March 31, 2012 December 31, 2012
Cash 6,597,000 20,769,000
Customer Deposits 5,816,000 8,169,000
Accounts receiveable, net 49,334,000 43,377,000
Prepaid expenses and taxes 12,263,000 7,815,000
Deferred income taxes 7,237,000 7,493,000
Property, net 47,364,000 44,675,000
Goodwill and other assets 43,271,000 42,689,000
   Total 171,882,000 174,987,000
Accounts and taxes payable 12,773,000 13,785,000
Accrued liablities 31,989,000 34,495,000
Deferred tax liability 16,738,000 16,738,000
Paid in capital 105,910,000 110,023,000
Treasury stock -270,574,000 -294,250,000
Retained earnings 275,046,000 294,196,000
   Total 171,882,000 174,987,000