IRVINE, Calif., May 8 /PRNewswire-FirstCall/ -- CorVel Corporation (Nasdaq: CRVL) reported record earnings per share of $0.34 for the quarter ended March 31, 2002, up 16% from per share earnings of $0.29 for the same quarter of the prior year. The Company reported net income of $1.30 per share for fiscal 2002, up 15% from earnings of $1.13 per share in the prior year. For the fiscal year ended March 31, 2002 revenues were $236 million, representing a 13% increase over the $210 million of revenues achieved in fiscal 2001.
Revenues and earnings for the quarter reflected continued growth in preferred provider networks (PPOs), coupled with slow growth in case management services. Fiscal 2002 marked CorVel's twelfth consecutive year of record revenues and earnings. During the quarter Investor's Business Daily ranked the Company 6th out of the top 7,500 public companies in the United States, for earnings growth and stability.
Market conditions in the disability insurance sectors served by CorVel were already improving during 2001, when the events of last fall forced a further "hardening" for most insurance pricing. Premium rates have increased substantially over the last six months, and some coverages have become difficult to obtain. Employers are responding to these market conditions by searching for improved management of disability programs. These conditions have increased customer interest in CorVel's services.
Several years ago the Company began to develop technologies favored by the rapidly increasing use of the Internet. CorVel's healthcare management website, CareMC ( http://www.caremc.com ), is in its third year in operation and provides a timely answer to employer interests in improving labor productivity. CareMC securely connects providers, payors, employers and managed care professionals in real time. The website includes decision support tools that review claims and prompt claims professionals regarding appropriate courses of action. By improving the accuracy and timeliness of information, CareMC accelerates the resolution of disability claims, improving productivity. Supported by CorVel's unique proprietary position in PPOs, case management and medical review systems, as well as the Company's national network of service offices, CareMC is able to provide practical, commercial solutions.
During the quarter the Company continued the implementation of the expert systems version of its MedCheck medical reimbursement and PPO administration software. The use of such decision-support tools in the insurance industry is rapidly expanding. MedCheck brings powerful implementations of this technology to employers, insurers and third party administrators. Current versions of the product also include scanning and optical character recognition capabilities, to address customer interests in managing paperless workflow. CorVel's ability to include such tools within CareMC, and to couple them with its Advocacy case management software, creates expanding synergies as these investments continue.
During the industry's national RIMS (Risk and Insurance Management Society) conference and exhibition, in addition to demonstrating its newest version of MedCheck, CorVel introduced the CareMC Dashboard. The CareMC Dashboard includes summary-level reporting and decision-support tools, to create an exciting new executive portal. Customer reaction to this new dashboard for CareMC was excellent, leading to record levels of employer interest in the Company's product lines. Further investments in the dashboard will be directed at capitalizing upon CorVel's eCommerce and real time reporting capabilities, to provide uniquely valuable tools for decision makers.
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, accident and 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, 2001, and the Company's most recent form 10-Q.
CORVEL CORPORATION
QUARTERLY UNAUDITED INCOME STATEMENT
Three and twelve months ending March 31, 2001 and 2002
March 31, March 31,
Three months ended March 31, 2001 2002
Revenue $55,098,000 $60,776,000
Costs and expenses 49,622,000 54,594,000
Income before income taxes 5,476,000 6,182,000
Income tax expense 2,081,000 2,349,000
Net income $3,395,000 $3,833,000
Earnings per share:
BASIC $0.30 $0.35
DILUTED $0.29 $0.34
Weighted average shares:
BASIC 11,267,000 10,916,000
DILUTED 11,571,000 11,274,000
March 31, March 31,
Twelve months ended March 31 2001 2002
Revenue $209,554,000 $235,912,000
Costs and expenses 188,399,000 212,008,000
Income before income taxes 21,155,000 23,904,000
Income tax expense 7,933,000 9,083,000
Net income $13,222,000 $14,821,000
Earnings per share:
BASIC $1.16 $1.34
DILUTED $1.13 $1.30
Weighted average shares:
BASIC 11,399,000 11,043,000
DILUTED 11,672,000 11,367,000
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
