IRVINE, Calif., July 18 /PRNewswire-FirstCall/ -- CorVel Corporation (Nasdaq: CRVL) reported record earnings per share of $0.36 for the quarter ended June 30, 2002, up 15% from per share earnings of $0.31 for the same quarter of the prior year. Net income for the quarter was also a record $4.0 million compared to $3.6 million for the prior year's June quarter. June quarter revenues were $66 million, up 14% from $58 million in the June quarter of 2001. Revenues and earnings for the quarter reflected ongoing growth in the Company's preferred provider network (PPO) and medical bill review services, as well as the acquisition of a diagnostic imaging network.
Healthcare inflation, coupled with a tight insurance market, has created a market environment in which employers are seeking improved management of their benefit programs. These conditions have increased customer interest in CorVel's services. Employers, increasingly aware of the importance of productivity, are adding outsourced medical management programs to their insurance services. In addition, price pressures in the automobile insurance market have lead to expanded 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 (preferred provider organization) revenues were up 23% from the same quarter of the prior year. New accounts, a favorable market environment and the acquisition of AnciCare, all contributed to this result. The Company has been implementing a number of new features in its proprietary MedCheck software. MedCheck includes unique web-based interfaces and automated processing using artificial intelligence tools, to enhance the processing of healthcare provider reimbursements. CorCare was expanded with the acquisition of AnciCare, a network of diagnostic imaging centers. Investments in medical review software and improved second generation PPO's, are important components of CorVel's initiatives to gain market share. Scanning and optical character recognition capabilities, coupled with expanded document management services, have also been popular with new customers.
CorVel's healthcare management website, CareMC ( http://www.caremc.com ), was expanded during the quarter by the addition of a high level reporting interface, a "Dashboard," of particular interest to management at employers, insurers and TPA's. The Dashboard presents graphic reporting and decision triggers, and exception reporting. By improving the accuracy and timeliness of information, CareMC accelerates the resolution of disability claims. CareMC's unique capabilities differentiate CorVel's services, and have been important components of most new customer relationships.
Expense investments in marketing increased indirect expenses in the quarter. As employers have become more involved choosing managed care programs, product and company branding programs have become more important. CorVel has capitalized upon its market-leading, proprietary software and PPO networks, by increasing communications targeted to key market segments. These efforts have included advertising and expanded tradeshow representation.
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 ending June 30, 2002 -- Unaudited
First quarter fiscal year ending March 31, 2003
June 30, June 30,
2001 2002
Revenue $58,001,000 $66,301,000
Costs and expenses 52,206,000 59,802,000
Income before income taxes 5,795,000 6,499,000
Income tax expense 2,202,000 2,470,000
Net income $3,593,000 $4,029,000
Earnings per share:
BASIC $0.32 $0.37
DILUTED $0.31 $0.36
Weighted average shares:
BASIC 11,180,000 10,828,000
SOURCE CorVel Corporation
Web site: http://www.corvel.com
Company News On-Call: http://www.prnewswire.com/comp/289350.html
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CONTACT: Richard Schweppe of CorVel Corporation, +1-949-851-1473
