IRVINE, Calif., Jan. 23 /PRNewswire-FirstCall/ -- CorVel Corporation (Nasdaq: CRVL) Irvine, California, reported record earnings per share of $.38 for the quarter ended December 31, 2002, up 15% from per share earnings of $.33 for the same quarter of the prior year. December quarter revenues were $73.1 million, up 25% from $58.7 million in the December quarter of 2001.
For the first nine months of the Company's current fiscal year, earnings per share were $1.11, up 15% from the same period the prior year. Revenues for the period were $209 million versus $175 million for the first nine months of fiscal 2002, up 19%. Revenues and earnings for the quarter reflected increased demand for services and new services launched during the current year.
Revenues and earnings for the quarter were supported by favorable conditions in the insurance markets served by the Company. The May 2002 acquisition of a diagnostic imaging PPO, also increased year-over-year revenue comparisons. Employers, concerned about the high cost of workers compensation, are adding outsourced medical management programs to their insurance services. New customer relationships also contributed to year-over-year growth.
During the quarter the Company's MedCheck medical review and CorCare PPO revenues were up 45% from the same quarter of the prior year. New accounts, a favorable market environment and the acquisition of the AnciCare diagnostic imaging PPO, all contributed to the growth. The Company's expanded line of PPO products has opened new markets. Although launching such new services has created lower margins, the added programs provide new service to providers and payors. Many customers are interested in participating with the Company in the development of next generation services.
CorVel's healthcare management website, CareMC ( http://www.caremc.com ), has been expanded to include patient scheduling tools. Deepening the Company's relationship with the healthcare community reflects CorVel's goal of improving the efficiency, timeliness and security of the interface between providers and payors. During the quarter the Company continued its recent plan to accelerate the pace of investment in the technologies that support the provider community. Such investments have impacted current profitability, but are important to the Company's continuing effort to expand its position in emerging markets. CareMC's unique capabilities differentiate CorVel's services in competitive bidding situations and enable participation in new service concepts.
About CorVel
CorVel Corporation ( http://www.corvel.com/ ) is a national provider of leading-edge services and solutions in the field of managed healthcare. CorVel specializes in applying information technology and e-commerce applications to improve healthcare management in the workers' compensation, group health, auto and disability management insurance markets. The Company provides networks of preferred providers, case management, utilization management, independent medical evaluations and medical bill review to more than 1,500 clients through its 3,200 associates and 185 offices in 49 states. Leveraging its commitment to flexibility and personal service, CorVel delivers custom solutions for employers, insurers, third party administrators and government entities.
This press release contains forward-looking statements that are subject to risks and uncertainties, including the risk that the historical financial performance of the Company may not be indicative of future financial performance and the risk that the recent performance of the Company's Common Stock may not be indicative of its future performance, as well as other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended March 31, 2002, and the Company's most recent form 10-Q.
CORVEL CORPORATION
Quarterly Unaudited Income Statements
Three and nine months ending December 31, 2001 and 2002
December 31, December 31,
Three months ended December 31, 2001 2002
Revenue $58,724,000 $73,135,000
Costs and expenses 52,668,000 66,373,000
Income before income taxes 6,056,000 6,762,000
Income tax expense 2,301,000 2,569,000
Net income $3,755,000 $4,193,000
Earnings per share:
BASIC $0.34 $0.39
DILUTED $0.33 $0.38
Weighted average shares:
BASIC 11,027,000 10,717,000
DILUTED 11,377,000 11,032,000
December 31, December 31,
Nine months ended December 31, 2001 2002
Revenue $175,136,000 $208,789,000
Costs and expenses 157,414,000 188,930,000
Income before income taxes 17,722,000 19,859,000
Income tax expense 6,734,000 7,546,000
Net income $10,988,000 $12,313,000
Earnings per share:
BASIC $0.99 $1.14
DILUTED $0.96 $1.11
Weighted average shares:
BASIC 11,090,000 10,765,000
DILUTED 11,404,000 11,094,000
SOURCE CorVel Corporation
Web site: http://www.caremc.com http://www.corvel.com
Company News On-Call: http://www.prnewswire.com/comp/158669.html
CONTACT: Richard Schweppe of CorVel Corporation, +1-949-851-1473
