Exhibit 99.1
NEWS RELEASE
| | | |
| Date: November 3, 2009 | | CorVel Corporation |
| | | 2010 Main Street |
| | | Suite 600 |
| | | Irvine, CA 92614 |
| | | |
| FOR IMMEDIATE RELEASE | | Contact: Heather Burnham |
| | | Phone: 949-851-1473 |
| | | http://www.corvel.com |
CorVel Announces Revenues and Earnings
IRVINE, California, November 3, 2009 — CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.50 for the quarter ended September 30, 2009, a 39% increase compared to $0.36 in the same quarter of the prior year. The Company reported quarterly revenues of $82 million, a 6% increase compared to $78 million in the same quarter of the prior year. Earnings per share for the six months ended September 30, 2009 were $0.99, a 32% increase compared to $0.75 for the same period of the prior fiscal year. The Company reported revenues of $164 million for the six months ended September 30, 2009, a 5% increase compared to $156 million for the same period of the prior fiscal year.
The Company’s results are reflective of improved growth in the Enterprise Comp product line, CorVel’s integrated claims management solution for workers’ compensation claims. The Company continues to invest in software development across product lines with focus on the advancement of artificial intelligence capabilities and workflow management tools into the management of workers’ compensation claims and all associated medical and indemnity costs. The second quarter’s results also benefited from growth within the Network Solutions which are reflective of improved savings for clients.
During the second quarter, the Company’s Board of Directors authorized the expansion of the share repurchase program by one million shares. During the September quarter the Company repurchased 581,000 shares for $17 million. At September 30, 2009 the Company had 12,405,000 shares outstanding.
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 its investment strategies and its focus on the advancement of incorporating artificial intelligence capabilities. 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 but not limited to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2009. 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 and Six Months Ended September 30, 2008 and 2009
| | | | | | | | | |
| | | Quarter Ended | | Quarter Ended |
| | | September 30, 2008 | | September 30, 2009 |
| | | |
| Revenues | | $ | 77,855,000 | | | $ | 82,416,000 | |
| Cost of revenues | | | 58,996,000 | | | | 61,609,000 | |
| | | |
| Gross profit | | | 18,859,000 | | | | 20,807,000 | |
| | | |
| | | | | | | | | |
| General and administrative | | | 10,722,000 | | | | 10,206,000 | |
| | | |
| Income from operations | | | 8,137,000 | | | | 10,601,000 | |
| | | |
| | | | | | | | | |
| Income tax expense | | | 3,173,000 | | | | 4,201,000 | |
| | | |
| Net income | | $ | 4,964,000 | | | $ | 6,400,000 | |
| | | |
| | | | | | | | | |
| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 0.36 | | | $ | 0.50 | |
Diluted | | $ | 0.36 | | | $ | 0.50 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 13,764,000 | | | | 12,758,000 | |
| Diluted | | | 13,960,000 | | | | 12,920,000 | |
| | | | | | | | | |
| | | Six Months Ended | | Six Months Ended |
| | | September 30, 2008 | | September 30, 2009 |
| | | |
| Revenues | | $ | 156,056,000 | | | $ | 163,728,000 | |
| Cost of revenues | | | 117,264,000 | | | | 121,779,000 | |
| | | |
| Gross profit | | | 38,792,000 | | | | 41,949,000 | |
| | | |
| | | | | | | | | |
| General and administrative | | | 21,529,000 | | | | 20,656,000 | |
| | | |
| Income from operations | | | 17,263,000 | | | | 21,293,000 | |
| | | |
| | | | | | | | | |
| Income tax expense | | | 6,732,000 | | | | 8,489,000 | |
| | | |
| Net income | | $ | 10,531,000 | | | $ | 12,804,000 | |
| | | |
| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 0.76 | | | $ | 1.00 | |
Diluted | | $ | 0.75 | | | $ | 0.99 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 13,790,000 | | | | 12,842,000 | |
| Diluted | | | 14,003,000 | | | | 12,988,000 | |
CorVel Corporation
Quarterly Results — Condensed Balance Sheet (Unaudited)
March 31, 2009 and September 30, 2009
| | | | | | | | | |
| | | March 31, 2009 | | September 30, 2009 |
| | | |
| Cash | | $ | 14,681,000 | | | $ | 11,983,000 | |
| Accounts receivable, net | | | 41,249,000 | | | | 42,104,000 | |
| Prepaid expenses and taxes | | | 4,841,000 | | | | 3,215,000 | |
| Deferred income taxes | | | 4,531,000 | | | | 4,763,000 | |
| Property, net | | | 29,790,000 | | | | 29,601,000 | |
| Goodwill and other assets | | | 46,117,000 | | | | 46,291,000 | |
| | | |
| Total | | $ | 141,209,000 | | | $ | 137,957,000 | |
| | | |
| | | | | | | | | |
| Accounts and taxes payable | | $ | 18,553,000 | | | $ | 15,540,000 | |
| Accrued liabilities | | | 18,653,000 | | | | 20,293,000 | |
| Deferred tax liability | | | 7,706,000 | | | | 7,673,000 | |
| Paid in capital | | | 84,324,000 | | | | 87,120,000 | |
| Treasury stock | | | -185,762,000 | | | | -203,208,000 | |
| Retained earnings | | | 197,735,000 | | | | 210,539,000 | |
| | | |
| Total | | $ | 141,209,000 | | | $ | 137,957,000 | |
| | | |
