CorVel Announces Revenues and Earnings
IRVINE, California, October 30, 2007 - CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.40 for the quarter ended September 30, 2007, up 18% from per share earnings of $0.34 for the same quarter of the prior year. September quarter revenues were $73.5 million, up 9% from $67.3 million in the September quarter of 2006. Results in the quarter reflect the ongoing strengthening of CorVel's Network Solutions services, as well as expansions of its new line of Enterprise Comp services. September quarter results benefited from continuing improvements in savings achieved for customers. The performance of the Company's specialty medical review businesses has improved, contributing to a positive mix change in services delivered versus the same quarter the prior year. Over the last three years the introduction of "Smart Routing" technologies has steadily increased both service and financial performance for the Company. In addition, CorVel announced expansions in its line of preferred provider services (PPO), further improving patient access to its national, proprietary PPO network. During the quarter the Company announced extensions to its CareMC software to provide clearinghouse services for providers. Clearinghouse features are being added to workers' compensation regulations in a number of states, reflecting the national interest in electronic medical records processing. CorVel has been a leader in medical records systems and services for over 15 years and will now extend its services to assist healthcare practitioners comply with the new electronic processing regulations. The Enterprise Comp line of full service solutions in workers compensation continued its expansion in the quarter. This service, together with improvements in case management services, contributed to the year-over-year improvement in Patient Management results. 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 2,000 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 and results, expansions in the Company's business lines and the extension of the Company's services relating to compliance with the new electronic processing regulations. 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 press release 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 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007. The forward-looking statements in this press release 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
Consolidated Income Statement (unaudited)
Three months ended September 30, 2006 and 2007 | | September 30, 2006 | September 30, 2007 | | Revenues | 67,329,000 | 73,510,000 | | Cost of revenues | 50,933,000 | 54,856,000 | | Gross profit | 16,396,000 | 18,654,000 |
| | | General and administrative | 8,489,000 | 9,398,000 | | Income from operations | 7,907,000 | 9,256,000 |
| | | Income tax expense | 3,084,000 | 3,624,000 | | Net income | 4,823,000 | 5,632,000 |
| | Earnings per share | | | Basic | $0.34 | $0.41 | | Diluted | $0.34 | $0.40 |
| | Weighted shares | | | Basic | 14,123,000 | 13,889,000 | | Diluted | 14,229,000 | 14,062,000 |
| CORVEL CORPORATION
Consolidated Income Statement (unaudited)
Six months ended September 30, 2006 and 2007
| | September 30, 2006 | September 30, 2007 | | Revenues | 137,091,000 | 147,847,000 | | Cost of revenues | 104,368,000 | 111,012,000 | | Gross profit | 32,723,000 | 36,835,000 |
| | General and administrative | 17,209,000 | 18,475,000 | | Income from operations | 15,514,000 | 18,360,000 |
| | Income tax expense | 6,051,000 | 7,167,000 | | Net income | 9,463,000 | 11,193,000 |
| | Earnings per share | | | Basic | $0.67 | $0.80 | | Diluted | $0.67 | $0.79 | | | Weighted shares | | | Basic | 14,124,000 | 13,927,000 | | Diluted | 14,199,000 | 14,111,000 |
| CORVEL CORPORATION
Condensed Consolidated Balance Sheet (unaudited)
As of March 31, 2007 and September 30, 2007
| | March 31, 2007 | September 30, 2007 | | Cash | 15,020,000 | 9,347,000 | | Accounts receiveable, net | 41,027,000 | 39,048,000 | | Prepaid expenses and taxes | 3,090,000 | 3,492,000 | | Deferred income taxes | 5,150,000 | 5,139,000 | | Property, net | 24,864,000 | 28,586,000 | | Goodwill and other assets | 24,617,000 | 39,299,000 | | Total assets | 113,768,000 | 124,911,000 |
| | Accounts and taxes payable | 13,418,000 | 13,132,000 | | Accrued liablities | 15,851,000 | 17,418,000 | | Deferred income tax liability | 5,302,000 | 6,092,000 | | Paid in capital | 75,557,000 | 77,557,000 | | Retained earnings | 157,731,000 | 168,924,000 | | Treasury stock | -154,091,000 | -158,212,000 | | Total liabilities and equity | 113,768,000 | 124,911,000 |
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