IRVINE, Calif., May 14 /PRNewswire/ -- CorVel Corporation (Nasdaq: CRVL) reported record earnings per share of $0.44 for the quarter ended March 31, 2001, up 13% from per share earnings of $0.39 for the same quarter of the prior year. March quarter revenues were $55.1 million, up 13% from $48.9 million in the March quarter of 2000.
CorVel reported net income of $1.70 per share for fiscal 2001, up 16% from earnings of $1.47 per share in the prior year. For the fiscal year ended March 31, 2001 revenues were $209.6 million, representing a 12% increase over the $186.8 million of revenues achieved in fiscal 2000. Revenues and earnings for the quarter reflected the increasing acceptance of the Company's e-Commerce solutions for employers and payors, as well as ongoing growth in preferred provider network (PPO) services. Substantial price increases implemented by workers' compensation insurers over recent months have also begun to improve market conditions for CorVel's services. Fiscal 2001 marked CorVel's eleventh consecutive year of record revenues and earnings.
Market conditions in the disability insurance sectors served by CorVel continued to improve substantially. Claims frequency and severity had lead to serious reserve erosion for most insurers. This forced a "hardening" of the market for disability insurance, which has resulted in significant price increases for workers' compensation insurers. Beginning in 2000 and accelerating this year, premium rates have been increased. As a consequence, larger employers typically respond to these cost increases by implementing managed care programs such as those provided by CorVel.
During the March quarter CorVel continued the development and implementation of CareMC (http://www.caremc.com), a business-to-business managed care website. CareMC connects providers, payors, employers and managed care professionals in real time. CareMC includes two well established Application Service Provider (ASP) capabilities, medical bill review and PPO administration services through MedCheck reimbursement systems, and case management using Advocacy software. Customer interest in CareMC continues to be very strong. Initial implementations began in calendar 2000 and are accelerating at this time. During the quarter the Company added new capabilities and initiated processing with both new employers and major insurers.
CareMC's ASP applications leverage CorVel's longstanding investment in medical reimbursement adjudication and case management software. In addition to these proprietary CorVel applications, CareMC user interfaces have been enhanced through the addition of handheld devices for medical professionals. Documentation of medical services and patient status can now be entered to such devices and uploaded to CareMC's website. This accelerates the delivery and accuracy of clinical information, reducing claims costs. CareMC point-of-care solutions also incorporate medical "charge capture" capabilities, creating a complete e-Commerce solution, connecting healthcare practitioners and major payors. CareMC provides services to other managed care vendors, in addition to CorVel, and can be private labeled.
During the quarter the Company continued development of MedCheck, its medical reimbursement and PPO administration software, with the initiation of the processing of electronically submitted medical bills. CareMC gives providers a portal into which bills can be submitted directly, reviewed online and automatically reimbursed. The CareMC managed care website significantly improves the efficiency of medical reimbursement for providers and payors. The automation CareMC brings to workflow and decision support, creates efficiencies critical to the increasingly competitive insurer marketplace. During the quarter MedCheck and the Company's CorCare PPO continued to experience improving results. Provider Program revenues for the quarter, increased 17% over the levels of the same quarter of calendar 2000. Additionally, CareMC added new PPO management features to continue the Company's strategy of extending online service features for CorCare PPO customers.
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, 2000, and the Company's most recent form 10-Q.
CORVEL CORPORATION
QUARTERLY INCOME STATEMENT
Three and twelve months ending March 31, 2000 and 2001
March 31, March 31,
Three months ended March 31, 2000 2001
Revenue $48,926,000 $55,098,000
Costs and expenses 43,913,000 49,622,000
Income before income taxes 5,013,000 5,476,000
Income tax expense 1,906,000 2,081,000
Net income $3,107,000 $3,395,000
Earnings per share:
BASIC $0.40 $0.45
DILUTED $0.39 $0.44
Weighted average shares:
BASIC 7,813,000 7,511,000
DILUTED 7,972,000 7,714,000
March 31, March 31,
Twelve months ended March 31 2000 2001
Revenue $186,765,000 $209,554,000
Costs and expenses 167,462,000 188,399,000
Income before income taxes 19,303,000 21,155,000
Income tax expense 7,336,000 7,933,000
Net income $11,967,000 $13,222,000
Earnings per share:
BASIC $1.49 $1.74
DILUTED $1.47 $1.70
Weighted average shares:
BASIC 8,021,000 7,599,000
DILUTED 8,151,000 7,781,000
SOURCE CorVel Corporation
Web site: http://www.corvel.com
Company News On-Call: http://www.prnewswire.com/comp/158669.html
or fax, 800-758-5804, ext. 158669
CONTACT: Richard Schweppe of CorVel Corporation, 949-851-1473
