IRVINE, Calif., July 19 /PRNewswire/ -- CorVel Corporation (Nasdaq: CRVL) reported record diluted earnings per share of $0.47 for the quarter ended June 30, up 15% from $0.41 per share earnings for the same quarter of the prior year. Net income for the quarter was also a record $3.6 million compared to $3.2 million for the prior year's June quarter. June quarter revenues were $58.0 million, up 15% from $50.6 million in the June quarter of 2000. Revenues and earnings for the quarter reflected ongoing growth in the Company's preferred provider network (PPO) services and the expansion of its medical bill review programs.
Market conditions in the disability insurance sectors served by CorVel continued to improve. Workers compensation premiums in particular have increased substantially throughout the last year. The increasing cost of healthcare insurance has improved the market for CorVel's healthcare management programs. Offsetting these positive trends were the continued depressed pricing conditions and the nursing shortages in the case management marketplace.
During the quarter the Company continued to experience strong growth in its Provider Programs services. Investments in the expansion of its CorCare Preferred Provider Organization (PPO), and related support systems, over the last few years, continue to be reflected in current results. In addition, the new release of its MedCheck medical bill review software is being well received. MedCheck's ability to automatically process bills coming in over the internet or through other electronic connections, positions it as a leader in the marketplace.
CareMC (http://www.caremc.com), the Company's managed care website connecting providers, payors, employers and managed care professionals, continued to contribute to new sales. CareMC positions CorVel at the forefront of the ongoing development of automated processing of healthcare information. Privacy issues and "Patient Rights" legislative initiatives promise to make healthcare a more complex and technically demanding marketplace. Companies such as CorVel, that are poised to address these issues, are vendors preferred in new "requests for proposal" (RFP's). During the quarter the Company continued its investments in the expansion of the capabilities of CareMC.
The demand for Independent Medical Evaluation (IME) networks has increased in the current year. CorVel's national presence, provider networks and extensive case management capabilities have positioned the Company as a leader in this market. IME demand has accelerated as more payors have chosen to outsource this important claims management service.
The current shortage of nurses, coupled with the residual effects of the difficult markets of 1996 through 2000, contributed to ongoing weakness in case management results. During the quarter CorVel increased prices and began directing sales efforts toward value-oriented segments of the market. The combination of these efforts may impact short-term revenue growth, but provides the foundation to more specifically tailor services to the needs of each market segment. The launch of new CareMC features during the coming year is expected to bolster the performance of this service line.
The introduction of handheld devices for use by CorVel's population of mobile case managers, integrated with the CareMC presentation of website information for claims professionals, is an example of the product developments currently being introduced to case management customers. The CareMC services, and connections from CareMC to other CorVel services, accelerate the delivery and accuracy of clinical information, reducing claims costs. CareMC point-of-care solutions are being expanded to incorporate medical "charge capture" capabilities, creating a complete e-Commerce solution, connecting healthcare practitioners and major payors.
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 1,000 clients through its 3,000 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 ending June 30, 2001 - First quarter of fiscal year ending
March 31, 2002
June 30, June 30,
2000 2001
Revenue $ 50,557,000 $ 58,001,000
Costs and expenses 45,352,000 52,206,000
Income before income taxes 5,205,000 5,795,000
Income tax expense 1,978,000 2,202,000
Net income $ 3,227,000 $ 3,593,000
Earnings per share:
BASIC $ 0.42 $ 0.48
DILUTED $ 0.41 $ 0.47
Weighted average shares:
BASIC 7,691,000 7,453,000
DILUTED 7,871,000 7,651,000
SOURCE CorVel Corporation
Web site: http://www.corvel.com
CONTACT: Richard Schweppe of CorVel Corporation, +1-949-851-1473
