Exhibit 99.1
NEWS RELEASE
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| Date: June 4, 2009 | | CorVel Corporation |
| | | 2010 Main Street |
| | | Suite 600 |
| | | Irvine, CA 92614 |
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| FOR IMMEDIATE RELEASE | | Contact: Heather Burnham |
| | | Phone: 949-851-1473 |
| | | http://www.corvel.com |
CorVel Announces Revenues and Earnings
IRVINE, California, June 4,2009- CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.33 for the quarter ended March 31, 2009, compared to $0.44 in the same quarter of the prior year. For the fiscal year ended March 31, 2009 earnings were $1.42 per share compared to the prior fiscal year of $1.67 per share.
The Company reported quarterly revenues of $77 million, comparable to the prior year’s March quarterly revenue of $77 million. For the fiscal year ended March 31, 2009, revenues were $310 million, representing a 2.7% increase from the $302 million in revenues achieved in the prior fiscal year.
During the March quarter and throughout fiscal 2009, the Company has continued to expand its workers’ compensation claims management solutions. During the March quarter, CorVel completed the acquisition of a third party administrator (TPA) in New York, the Company’s third acquisition in its TPA expansion effort. Software development efforts have been focused on the incorporation of artificial intelligence capabilities and workflow management tools in to the claims management systems in order to enable CorVel’s unique process.
Also in the March quarter, the company continued its Medicare Agent Services initiative. Recent legislation has expanded the definition of the administrative requirements designed to protect the Medicare system from medical expenses considered the primary obligation of private sector plans, including insured and self-insured workers’ compensation, liability and no fault plans. These new regulations include a provision that requires claims with the potential to be covered under the Centers for Medicare/Medicaid Services (CMS) regulations to be communicated to the Coordination of Benefits Contractor either directly by parties at risk or by their “Agent”. The Act emphasizes positive enforcement of protection and recovery measures for CMS with respect to all classes of casualty claims.
CorVel is currently assisting clients to comply with new CMS reporting legislation. As an assigned Agent, CorVel will provide services for Responsible Reporting Entities (RRE)
such as insurers, third party administrators and employers. As an experienced information processing provider, CorVel will electronically submit files to the CMS in compliance with timelines and reporting requirements. Such activities reflect the growing volume of electronic activity in healthcare records processing and leverage the Company’s longstanding investment in related information processing facilities and software.
About CorVel
CorVel Corporation (http://www.corvel.com/) is a national provider of leading-edge services and solutions in the field of disability management. 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, claims administration, case management, utilization management, 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 results of operations and the benefits of its growth and investment strategies. 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, 2008. 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
Quarters and Fiscal Years Ended March 31, 2008 and 2009
| | | | | | | | | |
| | | Quarter Ended | | Quarter Ended |
| | | March 31, 2008 | | March 31, 2009 |
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| Revenues | | | 77,368,000 | | | | 77,058,000 | |
| Cost of revenues | | | 56,538,000 | | | | 59,770,000 | |
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| Gross profit | | | 20,830,000 | | | | 17,288,000 | |
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| | | | | | | | | |
| General and administrative | | | 10,661,000 | | | | 10,308,000 | |
| | | |
| Income from operations | | | 10,169,000 | | | | 6,980,000 | |
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| | | | | | | | | |
| Income tax expense | | | 3,965,000 | | | | 2,738,000 | |
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| Net income | | | 6,204,000 | | | | 4,242,000 | |
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| | | | | | | | | |
| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 0.45 | | | $ | 0.33 | |
| Diluted | | $ | 0.44 | | | $ | 0.33 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 13,758,000 | | | | 12,935,000 | |
| Diluted | | | 13,958,000 | | | | 13,037,000 | |
| | | | | | | | | |
| | | Fiscal Year Ended | | Fiscal Year Ended |
| | | March 31, 2008 | | March 31, 2009 |
| | | |
| Revenues | | | 301,894,000 | | | | 310,076,000 | |
| Cost of revenues | | | 223,829,000 | | | | 236,334,000 | |
| | | |
| Gross profit | | | 78,065,000 | | | | 73,742,000 | |
| | | |
| | | | | | | | | |
| General and administrative | | | 39,720,000 | | | | 42,133,000 | |
| | | |
| Income from operations | | | 38,345,000 | | | | 31,609,000 | |
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| | | | | | | | | |
| Income tax expense | | | 14,961,000 | | | | 12,332,000 | |
| | | |
| Net income | | | 23,384,000 | | | | 19,277,000 | |
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| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 1.69 | | | $ | 1.43 | |
| Diluted | | $ | 1.67 | | | $ | 1.42 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 13,856,000 | | | | 13,458,000 | |
| Diluted | | | 14,036,000 | | | | 13,620,000 | |
CorVel Corporation
Quarterly Results — Condensed Balance Sheet
March 31, 2008 and March 31, 2009
| | | | | | | | | |
| | | March 31, 2008 | | March 31, 2009 |
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| Cash | | | 17,911,000 | | | | 14,681,000 | |
| Accounts receiveable, net | | | 39,164,000 | | | | 41,249,000 | |
| Prepaid expenses and taxes | | | 5,242,000 | | | | 4,841,000 | |
| Deferred income taxes | | | 4,076,000 | | | | 4,531,000 | |
| Property, net | | | 30,569,000 | | | | 29,790,000 | |
| Goodwill and other assets | | | 43,613,000 | | | | 46,117,000 | |
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| Total | | | 140,575,000 | | | | 141,209,000 | |
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| | | | | | | | | |
| Accounts and taxes payable | | | 20,475,000 | | | | 19,015,000 | |
| Accrued liabilities | | | 16,473,000 | | | | 18,653,000 | |
| Deferred tax liability | | | 7,249,000 | | | | 7,244,000 | |
| Paid in capital | | | 80,222,000 | | | | 84,324,000 | |
| Treasury stock | | | -162,302,000 | | | | -185,762,000 | |
| Retained earnings | | | 178,458,000 | | | | 197,735,000 | |
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| Total | | | 140,575,000 | | | | 141,209,000 | |
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