CorVel Announces December Quarter Revenues and Earnings
IRVINE, Calif., Jan. 25 /PRNewswire-FirstCall/ -- CorVel Corporation (Nasdaq: CRVL) reported earnings per share of $0.12 for the quarter ended December 31, 2004. Net income for the quarter was $1.3 million compared to $4.1 million for the prior year's December quarter. December quarter revenues were $69.8 million, down from $75.6 million in the December quarter of 2003. Revenues and earnings for the quarter reflected the soft labor market in the U.S., which in turn has caused workers' compensation claims to decline from the levels of a year ago. Earnings per share for the nine months ended December 31, 2004 were $0.73 compared to $1.19 for the same period in the prior year. Net income for the nine months ended December 31, 2004 were $7.7 million down from $12.9 million for the same period in the prior year. Revenues were $218 million compared to $229 million. Many of the Company's customers have experienced declining claims volumes following the soft labor markets of 2002 and 2003. Lower rates of inflation in workers compensation healthcare costs have also impacted claims activity. During the quarter CorVel's MedCheck medical review system was expanded to include the use of artificial intelligence modules capable of rerouting workflow to optimize results. Medical review is routed by type of care to units specializing in each category of review. These extensions augment a next generation of MedCheck, originally launched in mid-2004. During the December quarter these software enhancements were instrumental in procuring a number of new accounts. CorVel's healthcare management website, CareMC (http://www.caremc.com), is integrated with MedCheck medical bill review software. The combination of CareMC and MedCheck position the Company to expand its participation in the Application Service Provider (ASP) market. Many of the largest workers compensation payors either lease software or use ASP services for medical bill review. As the only software vendor that owns a proprietary Preferred Provider Organization (PPO), CorVel is uniquely positioned to deliver ASP solutions. About CorVel
CorVel Corporation (http://www.corvel.com/) is a national provider of leading-edge services and solutions in the field of healthcare management. 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 2,000 clients through its 3,100 associates and 150 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, 2004, and the Company's most recent form 10-Q. CorVel Corporation
Income Statement - Unaudited
Three months ended December 31, 2003 and 2004
| | 2003 | 2004 | | Revenues | $75,631,000 | $69,788,000 | | Cost of revenues | 62,993,000 | 60,884,000 |
| | Gross profit | 12,638,000 | 8,904,000 | | General and administrative expenses | 6,517,000 | 6,855,000 | | Income before income taxes | 6,121,000 | 2,049,000 | | Income tax provision | 02,039,000 | 788,000 | | Net Income | $4,082,000 | $1,261,000 |
| | Net income per share | | Basic | $0.39 | $0.12 | | Diluted | $0.38 | $0.12 |
| | Weighted average shares outstanding | | Basic | 10,559,000 | 10,395,000 | | Diluted | 10,794,000 | 10,510,000 |
| CorVel Corporation
Income Statement - Unaudited
Nine months ended December 31, 2003 and 2004
| | 2003 | 2004 | | Revenues | $228,521,000 | $218,200,000 | | Cost of revenues | 188,845,000 | 184,693,000 | | Gross profit | 39,676,000 | 33,507,000 | | General and administrative expenses | 19,336,000 | 20,974,000 | | | Income before income taxes | 20,340,000 | 12,533,000 | | Income tax provision | 7,443,000 | 4,824,000 | | Net Income | $12,897,000 | $7,709,000 |
| | Net income per share | | Basic | $1.22 | $0.74 | | Diluted | $1.19 | $0.73 | | Weighted average shares outstanding | | Basic | 10,592,000 | 10,488,000 | | Diluted | 10,855,000 | 10,604,000 |
CorVel Corporation
Balance Sheet
Summary Balance Sheet Information
As of March 31, 2004 (audited) and December 31, 2004 (unaudited)
| | March 31, 2004 | Dec. 31, 2004 | | Assets | | Cash and cash equivalents | $8,641,000 | $10,461,000 |
| | Accounts receivable, net | 45,538,000 | 42,573,000 |
| | Prepaid taxes and expenses | 5,363,000 | 3,693,000 |
| | Deferred income taxes | 4,316,000 | 3,237,000 |
| | Property and equipment, net | 29,387,000 | 30,098,000 |
| | Goodwill and other assets | 13,066,000 | 13,124,000 |
| | TOTAL ASSETS | $106,311,000 | $103,186,000 |
| | Liabilities and Stockholders' Equity | | Accounts payable | $10,765,000 | $10,330,000 | | Accrued liabilities | 11,847,000 | 10,383,000 | | Deferred income taxes | 6,077,000 | 5,602,000 | | Common stock and paid-in-capital | 54,010,000 | 56,194,000 |
| | Treasury stock | -96,281,000 | -106,925,000 | | Retained earnings | 119,893,000 | 127,602,000 | | TOTAL LIABILITIES AND EQUITY | $106,311,000 | $103,186,000 | SOURCE CorVel Corporation Web site: http://www.corvel.com Company News On-Call: http://www.prnewswire.com/comp/289350.html
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http://www.prnewswire.com/comp/158669.html CONTACT: Richard Schweppe of CorVel Corporation, +1-949-851-1473
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