CorVel Announces Record Earnings per Share
IRVINE, California, August 8, 2007 - CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.39 for the quarter ended June 30, 2007, up 20% from earnings per share of $0.33 for the same quarter of the prior year. Net income for the quarter was $5.6 million compared to $4.6 million for the prior year's June quarter. June quarter revenues were $74.3 million, compared to $69.8 million in the June quarter of 2006. Results in the quarter reflect the expansion of CorVel's Enterprise Comp and Network Solutions services, partially offset by reduced results in Case Management services. The expansion of CorVel's line of claims management services is continuing on schedule. The acquisition of Schaffer Companies in May brought the coverage for such services to 34 states. This expansion has thus far been conducted using the cashflow from existing operations. The two acquisitions completed this year have brought new management and systems into the Company, positioning CorVel to further expand the markets addressed by its services. The Company has expanded the pace of its investment in medical review software and service capabilities. The smart routing of work is being steadily expanded to further tailor medical review to the unique needs of each state, care type and patient setting. Expansions have also been achieved in the depth of CorVel's preferred provider networks and also its directed care networks. The Company plans to extend workflow management technologies used in medical review to its patient management services. Subsequent to the end of the quarter CorVel announced plans to provide clearinghouse capabilities for the workers compensation marketplace. Several states have shown an interest in the use of clearinghouses to extend the automation of healthcare claims submissions. The Company has developed a number of the tools required for clearinghouse operations in its medical review expansions, and will now apply these capabilities to facilitate the automation of provider reimbursement processes. 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 press release, 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, 2007. 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
Three Months Ended June 30, 2006 and 2007
(Unaudited) | | | Three months ended June 30, | | 2006 | 2007 | | Revenues | $ 69,762,000 | $ 74,337,000 | | Cost of revenues | 53,435,000 | 56,156,000 | | Gross profit | 16,327,000 | 18,181,000 | | General and administrative expenses | 8,720,000 | 9,077,000 | | Income before income taxes | 7,607,000 | 9,104,000 | | Income tax provision | 2,967,000 | 3,543,000 | | Net Income | $ 4,640,000 | $ 5,561,000 |
Net income per share | | Basic | $ 0.33 | $ 0.40 | | Diluted | $ 0.33 | $ 0.39 |
Weighted average shares outstanding | | Basic | 14,125,000 | 13,964,000 | | Diluted | 14,169,000 | 14,159,000 |
CorVel Balance Sheet
Summary Balance Sheet Information
As of March 31, 2007 and June 30, 2007
(Unaudited) | | | March 31, 2007 | June 30, 2007 | | Assets | | | Cash and cash equivalents | $ 15,020,000 | $ 6,858,000 | | Accounts receivable, net | 41,027,000 | 42,229,000 | | Prepaid taxes and expenses | 3,090,000 | 3,103,000 | | Deferred income taxes | 5,150,000 | 5,150,000 | | Property and equipment, net | 24,864,000 | 26,241,000 | | Goodwill and other assets | 24,617,000 | 37,127,000 | | TOTAL ASSETS | $ 113,768,000 | $ 120,708,000 |
Liabilities and Stockholders' Equity | | Accounts and taxes payable | $ 13,418,000 | $ 15,480,000 | | Accrued liabilities | 15,851,000 | 13,816,000 | | Deferred income taxes | 5,302,000 | 6,104,000 | | Common stock and paid-in-capital | 75,557,000 | 76,107,000 | | Treasury stock | (154,091,000) | (154,091,000) | | Retained earnings | 157,731,000 | 163,292,000 | | TOTAL LIABILITIES AND EQUITY | $ 113,768,000 | $ 120,708,000 |
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