CorVel Announces Record Earnings per Share
IRVINE, California, February 5, 2008 – CorVel Corporation (NASDAQ: CRVL) reported record earnings per share of $0.43 for the quarter ended December 31, 2007, up 61% from the $0.27 earnings per share reported for the quarter ended December 2006. The December 2007 quarter revenues were $76.7 million, up 15% from $66.6 million in the December quarter of 2006. Revenues and earnings for the December 2007 quarter reflected the Company’s improving results in all product lines, as well as the current Enterprise Comp expansion.
The Enterprise Comp line of full service solutions in workers compensation continued to be well received in the market. This business group has been expanding its management team, integrating systems and continuing the five year effort CorVel has made to develop unique workflow tools for the management of workers compensation claims. Integration of these tools with CorVel’s previously existing managed care software and services contributed to results improvements in the quarter.
December 2007 quarter results benefited from continuing improvements in medical bill review and preferred provider services (PPO) savings achieved for customers. The Company’s specialty medical review businesses are expanding its services to the Accident & Health market. CorCare, CorVel’s national workers compensation PPO, is expanding the access of its services by insurers, TPA’s and other managed care vendors. Expansions to the breadth and depth of the CorCare PPO, further improved patient access.
The pace of business expansion, coupled with investments in the Company’s systems infrastructure, has caused increases in expenses. During the December 2007 quarter the Company’s data center moved most of its operations into a professionally managed, more secure “co-location” facility remote from the prior data center. These efforts continue CorVel’s long-standing strategy of investment in the systems and communications technologies important to the Company’s long term strategies. Although this has raised expenses in current quarters, the transition went smoothly and we believe accomplished the goal of increasing the security of customer service.
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 business. 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. 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
Quarterly Results - Income Statement (unaudited)
Quarter ended December 31, 2006 and 2007
|
| |
| |
Quarter Ended |
Quarter Ended |
| |
December 31, 2006 |
December 31, 2007 |
| Revenues |
66,580,000 |
76,678,000 |
| Cost of revenues |
51,048,000 |
56,279,000 |
| Gross profit |
15,532,000 |
20,399,000 |
| |
| General and administrative |
9,263,000 |
10,584,000 |
| Income from operations |
6,269,000 |
9,815,000 |
|
| Income tax expense |
2,444,000 |
3,829,000 |
| Net income |
3,825,000 |
5,986,000 |
| |
| Earnings per share |
|
| Basic |
$0.27 |
$0.43 |
| Diluted |
$0.27 |
$0.43 |
| |
| Weighted shares |
|
| Basic |
14,026,000 |
13,813,000 |
| Diluted |
14,368,000 |
13,964,000 |
|
| |
9 months ended |
9 months ended |
| |
December 31, 2006 |
December 31, 2007 |
| Revenues |
203,671,000 |
224,526,000 |
| Cost of revenues |
155,416,000 |
167,291,000 |
| Gross profit |
48,255,000 |
57,235,000 |
| |
| General and administrative |
26,472,000 |
29,059,000 |
| Income from operations |
21,783,000 |
28,176,000 |
| |
| Income tax expense |
8,495,000 |
10,996,000 |
| Net income |
13,288,000 |
17,180,000 |
| |
| Earnings per share |
|
| Basic |
$0.94 |
$1.24 |
| Diluted |
$0.93 |
$1.22 |
| |
| Weighted shares |
|
| Basic |
14,091,000 |
13,889,000 |
| Diluted |
14,255,000 |
14,062,000 |
|
CORVEL CORPORATION
Quarterly Results - Condensed Balance Sheet
March 31, 2007 (audited) and December 31, 2007 (unaudited)
|
| |
| |
March 31, 2007 |
December 31, 2007 |
| Cash |
15,020,000 |
11,320,000 |
| Accounts receiveable, net |
41,027,000 |
40,452,000 |
| Prepaid expenses and taxes |
3,090,000 |
3,508,000 |
| Deferred income taxes |
5,150,000 |
5,139,000 |
| Property, net |
24,864,000 |
30,844,000 |
| Goodwill and other assets |
24,617,000 |
39,118,000 |
| Total |
113,768,000 |
130,381,000 |
| |
| Accounts and taxes payable |
13,418,000 |
14,243,000 |
| Accrued liablities |
15,851,000 |
18,447,000 |
| Deferred income tax liability |
5,302,000 |
6,113,000 |
| Paid in capital |
75,557,000 |
78,883,000 |
| Treasury stock |
-154,091,000 |
-162,216,000 |
| Retained earnings |
157,731,000 |
174,911,000 |
| Total |
113,768,000 |
130,381,000 |
|
