CorVel Announces Quarterly and Fiscal Year Revenues and Earnings
IRVINE, California, June 1, 2006 - CorVel Corporation (NASDAQ: CRVL) reported unaudited earnings per share of $0.33 for the quarter ended March 31, 2006, up from $0.24 in the same quarter of the prior year. For the fiscal year ended March 31, 2006 earnings were $1.01 compared to fiscal 2005 earnings of $ 0.97. The Company reported quarterly revenues of $66.6 million, down from prior year quarterly revenues of $72.8. For the fiscal year ended March 31, 2006, revenues were $267 million, representing an 8.4% decrease from the $291 million in revenues achieved in fiscal 2005. Improving margins permitted an increase in earnings despite a decline in revenues influenced by the low national volume of workers' compensation claims. In the quarter the Company continued to experience improving revenues in its preferred provider organizations and specialty review services. Strong savings for customers have been contributing to increasing revenues for these services. CorVel continues to experience improving productivity following the recent years' investments in document management, automated workflow and improvements to the automated routing of work to centers of excellence. The gains continued throughout the quarter, reaching their highest levels in late March. Cash balances increased in the quarter, as a result of reduced stock repurchases and improving management of accounts receivable, fixed asset additions and operating costs. Subsequent to the end of the quarter the Company added key new sales and operations executives as a part of plans to expand its directed care networks and technology services for 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, 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 1,500 clients nationwide. Leveraging its commitment to flexibility and personal service, CorVel delivers custom solutions for employers, insurers, third party administrators and government entities. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 All statements included in this report, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company's current expectations, estimates and projections about the Company, management's beliefs, and certain assumptions made by the Company, and events beyond the Company's control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to the Company's financial statements. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company's actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties referred to above include, but are not limited to, factors described in this report and the Company's filings with the Securities and Exchange Commission, including "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended March 31, 2005. The forward-looking statements in this report speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason. CorVel Corporation
Income Statement - Unaudited
Three months ended March 31, 2005 and 2006 | | 2005 | 2006 | | Revenues | $72,800,000 | $66,554,000 | | Cost of revenues | 61,648,000 | 54,094,000 | | Gross profit | 11,152,000 | 12,460,000 | | General and administrative expenses | 7,170,000 | 7,414,000 | | Income before income taxes | 3,982,000 | 5,046,000 | | Income tax provision | 1,534,000 | 1,943,000 | | Net Income | $2,448,000 | $3,103,000 |
| | Net income per share | | Basic | $0.24 | $0.33 | | Diluted | $0.24 | $0.33 |
| | Weighted average shares outstanding | | Basic | 10,213,000 | 9,406,000 | | Diluted | 10,270,000 | 9,428,000 |
| CorVel Corporation
Income Statement
Twelve months ended March 31, 2005 and 2006
| | 2005 | 2006 | | Revenues | $291,000,000 | $266,637,000 | | Cost of revenues | 246,341,000 | 221,252,000 | | Gross profit | 44,659,000 | 45,385,000 | | General and administrative expenses | 28,144,000 | 29,469,000 | | Income before income taxes | 16,515,000 | 15,916,000 | | Income tax provision | 6,358,000 | 6,127,000 | | Net Income | $10,157,000 | $9,789,000 |
| | Net income per share | | Basic | $0.97 | $1.01 | | Diluted | $0.97 | $1.01 |
| | Weighted average shares outstanding | | Basic | 10,419,000 | 9,689,000 | | Diluted | 10,520,000 | 9,728,000 |
| CorVel Corporation
Balance Sheet
Summary Balance Sheet Information
As of March 31, 2005 and March 31, 2006
| | March 31, 2005 | March 31, 2006 | | Assets | | | Cash and cash equivalents | $8,945,000 | $14,181,000 | | Accounts receivable, net | 45,611,000 | 37,802,000 | | Prepaid taxes and expenses | 3,891,000 | 2,902,000 | | Deferred income taxes | 4,537,000 | 4,303,000 | | Property and equipment, net | 29,649,000 | 27,116,000 | | Goodwill and other assets | 13,045,000 | 12,980,000 | | TOTAL ASSETS | $105,678,000 | $99,284,000 |
| | Liabilities and Stockholders’ Equity | | Accounts and taxes payable | $12,293,000 | $12,989,000 | | Accrued liabilities | 12,059,000 | 11,538,000 | | Deferred income taxes | 7,700,000 | 6,402,000 | | Common stock and paid-in-capital | 57,672,000 | 61,336,000 | | Treasury stock | -113,481,000 | -132,205,000 | | Retained earnings | 129,435,000 | 139,224,000 | | TOTAL LIABILITIES AND EQUITY | $105,678,000 | $99,284,000 |
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