IRVINE, Calif., Oct. 22 /PRNewswire-FirstCall/ -- CorVel Corporation (Nasdaq: CRVL) Irvine, California, reported record earnings per share of $.37 for the quarter ended September 30, 2002, up 16% from per share earnings of $.32 for the same quarter of the prior year. September quarter revenues were $69.4 million, up 19% from $58.4 million in the September quarter of 2001.
For the first six months of the Company's current fiscal year, earnings per share were $.73, up 16% from the same period the prior year. Revenues for the period were $135.7 million versus $116.4 million for the first six months of fiscal 2002, up 17%. Revenues and earnings for the quarter reflected increased demand for services designed to address the inflation rate in healthcare costs. Subsequent to the end of the quarter, the Company was recognized for the ninth consecutive year in Forbes Magazine's list of "America's Best 200 Small Companies."
Revenues and earnings for the quarter were favorably impacted by improving conditions in case management services and ongoing growth in the Company's preferred provider network (PPO) services. The May acquisition of a diagnostic imaging PPO, also increased year-over-year revenue comparisons. Employers, increasingly aware of the importance of productivity, are adding outsourced medical management programs to their insurance services. In addition, automobile insurance carriers have expanded their use of outsourced medical review services. Such programs provide better review of medical care and its impact upon related liability settlements, while simultaneously improving processing efficiencies.
During the quarter the Company's MedCheck medical review and CorCare PPO revenues were up 31.5% 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 this result. In an effort to expand its market share, CorVel has been investing in several new initiatives. The Company has added to its proprietary MedCheck software by investing in unique web-based interfaces and in the automated processing of provider reimbursements. Scanning and optical character recognition capabilities, coupled with expanded document management services, have also been popular expansions to the Company's services.
CorVel's healthcare management website, CareMC ( http://www.caremc.com ), continued to see expanded usage. A high level "CareMC Dashboard" interface, of particular interest to management at employers, insurers and TPA's, has made CareMC's web-based access to information easier to use. The CareMC Dashboard presents graphic reporting, decision triggers, and exception reporting. CareMC's unique capabilities differentiate CorVel from other vendors that typically have less invested in such technologies.
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 STATEMENT
Three months ended September 30, 2002
Second Quarter - Fiscal Year Ending March 31, 2003
September 30, September 30,
Three months ended September 30, 2002 2001 2002
Revenue $58,411,000 $69,353,000
Costs and expenses 52,540,000 62,755,000
Income before income taxes 5,871,000 6,598,000
Income tax expense 2,231,000 2,507,000
Net income $3,640,000 $4,091,000
Earnings per share:
BASIC $0.33 $0.38
DILUTED $0.32 $0.37
Weighted average shares:
BASIC 11,070,000 10,751,000
DILUTED 11,360,000 11,056,000
September 30, September 30,
Six months ended September 30, 2002 2001 2002
Revenue $116,412,000 $135,654,000
Costs and expenses 104,746,000 122,557,000
Income before income taxes 11,666,000 13,097,000
Income tax expense 4,433,000 4,977,000
Net income $7,233,000 $8,120,000
Earnings per share:
BASIC $0.65 $0.75
DILUTED $0.63 $0.73
Weighted average shares:
BASIC 11,123,000 10,789,000
DILUTED 11,418,000 11,124,000
SOURCE CorVel Corporation
Web site: 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
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