CorVel Announces June Quarter Results
IRVINE, California, August 5, 2008 – CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.40 on revenues of $78.2 million for the quarter ending June 30, 2008. Earnings per share grew 3% over the June quarter of 2007, while revenues grew 5% when compared to the same period.
June quarter results benefited from continued growth across product lines. Network Solutions results reflected continued improvement in customer savings and unit volume growth. Results for Patient Management services continued to show improvement reflective of increased operating efficiencies.
The Enterprise Comp® line of full service solutions in workers’ compensation continued to be well received in the market. This business group has been expanding its management team, integrating systems and continuing the effort CorVel has made to develop unique workflow tools for the management of workers’ compensation claims.
Traditional business growth and the strategic expansion of the Enterprise Comp line, combined with investments in the Company’s systems infrastructure, have caused expansions in expenses. These efforts continue CorVel’s long-standing strategy of investment in systems and communications technologies that are important to the Company’s long term strategies. Although this has raised expenses in recent quarters, the Company expects to realize long term benefits in the form of stability and security of information systems.
About CorVel
CorVel Corporation (http://www.corvel.com/) 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 healthcare management in the workers' compensation, group health, and auto and disability management insurance markets. The Company provides networks of preferred providers, claims administration, 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 financial statements and business. 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 "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended March 31, 2008. 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 (unaudited)
First Quarter ended June 30, 2007 and 2008
|
| |
| |
Quarter Ended |
Quarter Ended |
| |
June 30, 2007 |
June 30, 2008 |
| Revenues |
74,337,000
|
78,201,000
|
| Cost of revenues |
56,156,000
|
58,268,000
|
| Gross profit |
18,181,000
|
19,933,000
|
| |
| General and administrative |
9,077,000
|
10,807,000
|
| Income from operations |
9,104,000
|
9,126,000
|
|
| Income tax expense |
3,543,000
|
3,559,000
|
| Net income |
5,561,000
|
5,567,000
|
| |
| Earnings per share |
|
| Basic |
$0.40
|
$0.40
|
| Diluted |
$0.39
|
$0.40
|
| |
| Weighted shares |
|
| Basic |
13,964,000
|
13,816,000
|
| Diluted |
14,159,000
|
14,045,000
|
|
Quarterly Results - Condensed Balance Sheet (unaudited)
March 31, 2008 and June 30, 2008
|
| |
| |
March 31, 2008 |
June 30, 2008
|
| Cash |
17,911,000
|
21,760,000
|
| Accounts receiveable, net |
39,164,000
|
39,732,000
|
| Prepaid expenses and taxes |
5,242,000
|
5,896,000
|
| Deferred income taxes |
4,076,000
|
3,971,000
|
| Property, net |
30,569,000
|
30,368,000
|
| Goodwill and other assets |
43,613,000
|
43,990,000
|
| Total |
140,575,000
|
145,717,000
|
| |
| Accounts and taxes payable |
20,475,000
|
22,266,000
|
| Accrued liablities |
16,473,000
|
16,030,000
|
| Deferred income tax liability |
7,249,000
|
7,026,000
|
| Paid in capital |
80,222,000
|
82,378,000
|
| Treasury stock |
-162,302,000
|
-166,008,000
|
| Retained earnings |
178,458,000
|
184,025,000
|
| Total |
140,575,000
|
145,717,000
|
|
