IRVINE, Calif., Oct. 18 /PRNewswire/ -- CorVel Corporation (Nasdaq: CRVL) reported record earnings per share of $.32 for the quarter ended September 30, 2001, up 15% from per share earnings of $.28 for the same quarter of the prior year. September quarter revenues were $58.4 million, up 13% from $51.7 million in the September quarter of 2000.
For the first six months of the Company's current fiscal year, earnings per share were $.63, up 15% from the same period the prior year. Revenues for the period were $116.4 million versus $102.2 million for the first six months of fiscal 2000, up 14%. Revenues and earnings for the quarter reflected increased demand for the Company's services, which are designed to address the inflation rate in healthcare costs. Subsequent to the end of the quarter, the Company was recognized for the eighth consecutive year in Forbes Magazine's list of "America's Best 200 Small Companies". On September 4, CorVel split its stock 3 for 2, structured as a stock dividend.
In this tragic time for the victims of the terrorist attacks, and for their families, Americans united around our flag and Country. We salute our armed services, firemen and police for services beyond the call of duty. The people of CorVel pooled their efforts with those of the Company to make a contribution at the end of the quarter to the American Red Cross Disaster Relief Fund. In addition, our associates have worked hard to maintain uninterrupted service, during the day of the attacks and throughout the ensuing days and weeks. As a result, CorVel was able to complete its 45th consecutive quarter of record earnings per share, and to continue its ongoing investment in the Company and its services. We are proud of our organization and of its commitment to delivering in trying times.
Market conditions in the disability insurance sectors served by CorVel continued to improve. Workers' compensation insurance premiums have increased substantially throughout the last year, and have been additionally impacted by the insurance losses incurred in the events of September 11. The rising cost of insurance increases employer interest in CorVel's healthcare management programs. Offsetting these positive trends were the impact upon productivity caused by the terrorist attacks, and the continued depressed pricing conditions and nursing shortages in the case management marketplace.
During the quarter the Company continued development of MedCheck, its medical bill review and PPO (preferred provider organization) administration software. Development efforts were focused on several initiatives related to increasing the automation in the receipt of provider billings, their review and subsequent reimbursement. CorVel's new line of MedCheck/ecs services (MedCheck/eCommerce Solutions) offers significant improvements in efficiency for both employers and for the insurers and TPA's (third party administrators). Provider program revenues for the quarter increased 30% over the levels of the same quarter of 2000. Profits were up 18%, but were impacted meaningfully by the national events.
CorVel continues to invest in the development of its CorCare line of PPO services. The PPO industry is continuing to experience some consolidation, and at this time CorCare is one of only a few PPO's that can provide national coverage. The inflation rate in healthcare improves the results a PPO can deliver for customers. CorVel's ability to integrate its patient management, CorCare PPO and proprietary software, positions the Company with a more complete service than that of its competitors. This improves savings for employers while providing a seamless service to patients.
During the quarter CorVel was able to strengthen margins in its patient management services. Improvements in productivity, as well as in pricing, combined to increase field profits. Revenues were impacted by reduced work hours caused by the national events and the bankruptcy of Reliance Insurance. The current shortage of nurses continues to push costs for case management services. The Company is re-positioning these services to market sectors in which quality is more important than price. The launch of new web-based features, handheld devices and artificial intelligence during the coming year is expected to continue strengthening this service line.
During the September quarter CorVel continued the development and implementation of CareMC (http://www.caremc.com), a business-to-business managed care website. CareMC was awarded "Best of Web" recognition by Business Insurance, a leading insurance industry trade magazine. This award acknowledged CareMC's unique ability to assist major insurers purchasing managed care services from multiple vendors, and to allow all related parties to be connected in real time to one another. The services of this award winning site combine to accelerate claims resolution. CareMC includes two popular Application Service Provider (ASP) capabilities: medical bill review and PPO administration services through MedCheck software and databases, and case management using Advocacy software. The site's ability to reduce paperwork is now particularly important, as businesses face additional reasons to reduce mail traffic. Electronic interfaces also reduce errors as well as the need to store and handle paperwork.
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 1,000 clients through its 3,100 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 months ended September 30, 2001
Second Quarter - Fiscal Year Ending March 31, 2002
September 30, September 30,
Three months ended September 30, 2001 2000 2001
Revenue $51,658,000 $58,411,000
Costs and expenses 46,380,000 52,540,000
Income before income taxes 5,278,000 5,871,000
Income tax expense 2,006,000 2,231,000
Net income $3,272,000 $3,640,000
Earnings per share:
BASIC $0.29 $0.33
DILUTED $0.28 $0.32
Weighted average shares:
BASIC 11,418,000 11,070,000
DILUTED 11,694,000 11,360,000
September 30, September 30,
Six months ended September 30, 2001 2000 2001
Revenue $102,215,000 $116,412,000
Costs and expenses 91,732,000 104,746,000
Income before income taxes 10,483,000 11,666,000
Income tax expense 3,984,000 4,433,000
Net income $6,499,000 $7,233,000
Earnings per share:
BASIC $0.57 $0.65
DILUTED $0.55 $0.63
Weighted average shares:
BASIC 11,448,000 11,123,000
DILUTED 11,751,000 11,418,000
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
