CorVel Announces Revenues and Earnings

IRVINE, California, May 29, 2014 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter and fiscal year ended March 31, 2014. Revenues for the quarter ended March 31, 2014 were $120 million, a 7% increase over the $112 million in revenue in the quarter ended March 31, 2013. Earnings per share for the quarter ended March 31, 2014 were $0.39, a 13% increase over earnings per share of $0.35 for the same quarter of the prior year.

Revenues for the fiscal year ended March 31, 2014 were a record $479 million, a 12% increase over the $429 million in revenue in the prior year. Earnings per share for the fiscal year ended March 31, 2014 were a record $1.61, a 35% increase over earnings per share of $1.19 for the prior year. The Company's earnings per share grew more than revenue as the gross profit margin improved and the general and administrative costs declined as a percentage of revenue. Diluted weighted shares decreased 5% due to continued share repurchases.

Revenue growth for the quarter was driven by a 9% increase in the Company's Patient Management service line and a 6% increase in its Network Solutions service line. Patient Management services include traditional medical case management and claims administration services. Revenue from claims administration services has grown at a rate in excess of 20% for each of the past seven years.

The Company continues to invest in information technology, including the ongoing development of its claims management platform. CorVel's biggest differentiator is the integration of all of its services, including the Company's managed care services, in a real time environment. Functioning in a real time environment allows the Company to improve claims intake workflows, including mobile computing, and expand analytic tools such as clinical and predictive modeling. During the quarter, the Company was recognized by Business Insurance magazine as a recipient in its 2014 Innovation Awards Program. The Business Insurance Innovation Awards recognize leadership and innovation for risk management programs that focus on new technology, new products and services, and other advancements in the insurance industry. CorVel was selected for their caremc.com claims system's clinical modeling module.

CORVEL CORPORATION
Quarterly Results - Income Statement
Quarters and Fiscal Year Ended March 31, 2013 and March 31, 2014
 
Quarter Ended March 31, 2013 March 31, 2014
Revenues 111,959,000 120,246,000
Cost of revenues 88,050,000 93,709,000
Gross profit 23,909,000 26,537,000
 
General and administrative 11,899,000 13,704,000
Income from operations 12,010,000 12,833,000
 
Income tax expense 4,430,000 4,500,000
Net income 7,580,000 8,333,000
 
Earnings per share  
Basic $0.35 $0.40
Diluted $0.35 $0.39
 
Weighted shares  
Basic 21,620,000 20,945,000
Diluted 21,804,000 21,270,000
 
  Fiscal Year Fiscal Year
Fiscal Year Ended March 31, 2013 March 31, 2014
Revenues 429,310,000 478,816,000
Cost of revenues 337.650,000 370.335,000
Gross profit 91,660,000 108,481,000
 
General and administrative 47,765,000 51,974,000
Income from operations 43,895,000 56,507,000
 
Income tax expense 17,165,000 22,115,000
Net income 26,730,000 34,392,000
 
Earnings per share  
Basic $1.20 $1.63
Diluted $1.19 $1.61
 
Weighted shares  
Basic 22,256,000 21,104,000
Diluted 22,458,000 21,372,000
 
CORVEL CORPORATION
Quarterly Results - Condensed Balance Sheet
March 31, 2013 and March 31, 2014
 
  March 31, 2013 March 31, 2014
Cash 19,882,000 34,866,000
Customer Deposits 10,107,000 16,142,000
Accounts receiveable, net 49,105,000 57,229,000
Prepaid expenses and taxes 7,418,000 5,862,000
Deferred income taxes 6,448,000 6,861,000
Property, net 46,584,000 51,253,000
Goodwill and other assets 42,898,000 42,268,000
Total 182,382,000 214,481,000
 
Accounts and taxes payable 13,587,000 18,465,000
Accrued liablities 39,168,000 53,374,000
Deferred tax liability 18,225,000 16,119,000
Paid in capital 110,927,000 118,834,000
Treasury stock -301,301,000 -328,479,000
Retained earnings 301,776,000 336,168,000
Total 182,382,000 214,481,000