Exhibit 99.1
NEWS RELEASE
| | | |
| Date: June 10, 2008 | | 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 Record Earnings
IRVINE, California, June 10, 2008 — CorVel Corporation (NASDAQ: CRVL) reported record earnings per share of $0.44 for the quarter ended March 31, 2008, up from $0.37 in the same quarter of the prior year. For the fiscal year ended March 31, 2008 earnings were $1.67 per share compared to fiscal 2007 earnings of $1.30 per share. Results in the quarter reflected continued strong medical review results.
The Company reported quarterly revenues of $77 million, up from prior year quarterly revenues of $71 million. For the fiscal year ended March 31, 2008, revenues were $302 million, representing a 10% increase from the $275 million in revenues achieved in fiscal 2007. The Company’s introduction of full service workers compensation solutions contributed significantly to the improvement in annual sales and profit results.
CorVel’s launch of full service claims solutions, branded Enterprise Comp®, has reached a phase where national services are available throughout the Company’s nationwide branch office network. In addition, the Company has added claims management for auto and general liability claims. Recent efforts have been focused upon continued claims management additions to the Company’s CareMC web portal. Enterprise Comp’s ability to integrate managed care and claims management services is expected to deliver unique savings results for employers.
Investments in the Company’s systems and software infrastructure have been increased to support the national expansion of Enterprise Comp. During the coming year the Company expects to continue expanding the use of the artificial intelligence tools which have contributed successfully to the Company’s medical review services.
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 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
Quarters and Fiscal Years Ended March 31, 2007 and 2008
| | | | | | | | | |
| | | Quarter Ended | | Quarter Ended |
| | | March 31, 2007 | | March 31, 2008 |
| | | |
| Revenues | | | 70,910,000 | | | | 77,368,000 | |
| Cost of revenues | | | 53,330,000 | | | | 56,538,000 | |
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| Gross profit | | | 17,580,000 | | | | 20,830,000 | |
| | | |
| | | | | | | | | |
| General and administrative | | | 8,911,000 | | | | 10,661,000 | |
| | | |
| Income from operations | | | 8,669,000 | | | | 10,169,000 | |
| | | |
| | | | | | | | | |
| Income tax expense | | | 3,381,000 | | | | 3,965,000 | |
| | | |
| Net income | | | 5,288,000 | | | | 6,204,000 | |
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| | | | | | | | | |
| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 0.38 | | | $ | 0.45 | |
| Diluted | | $ | 0.37 | | | $ | 0.44 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 14,009,000 | | | | 13,758,000 | |
| Diluted | | | 14,305,000 | | | | 13,958,000 | |
| | | | | | | | | |
| | | Fiscal Year Ended | | Fiscal Year Ended |
| | | March 31, 2007 | | March 31, 2008 |
| | | |
| Revenues | | | 274,581,000 | | | | 301,894,000 | |
| Cost of revenues | | | 208,746,000 | | | | 223,829,000 | |
| | | |
| Gross profit | | | 65,835,000 | | | | 78,065,000 | |
| | | |
| | | | | | | | | |
| General and administrative | | | 35,383,000 | | | | 39,720,000 | |
| | | |
| Income from operations | | | 30,452,000 | | | | 38,345,000 | |
| | | |
| | | | | | | | | |
| Income tax expense | | | 11,876,000 | | | | 14,961,000 | |
| | | |
| Net income | | | 18,576,000 | | | | 23,384,000 | |
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| | | | | | | | | |
| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 1.32 | | | $ | 1.69 | |
| Diluted | | $ | 1.30 | | | $ | 1.67 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 14,070,000 | | | | 13,856,000 | |
| Diluted | | | 14,268,000 | | | | 14,036,000 | |
CorVel Corporation
Quarterly Results — Condensed Balance Sheet
March 31, 2007 and March 31, 2008
| | | | | | | | | |
| | | March 31, 2007 | | March 31, 2008 |
| | | |
| Cash | | | 15,020,000 | | | | 17,911,000 | |
| Accounts receivable, net | | | 41,027,000 | | | | 39,164,000 | |
| Prepaid expenses and taxes | | | 3,090,000 | | | | 5,242,000 | |
| Deferred income taxes | | | 5,150,000 | | | | 6,753,000 | |
| Property, net | | | 24,864,000 | | | | 30,569,000 | |
| Goodwill and other assets | | | 24,617,000 | | | | 39,708,000 | |
| | | |
| Total | | | 113,768,000 | | | | 139,347,000 | |
| | | |
| | | | | | | | | |
| Accounts and taxes payable | | | 13,418,000 | | | | 20,476,000 | |
| Accrued liabilities | | | 15,851,000 | | | | 16,473,000 | |
| Deferred tax liability | | | 5,302,000 | | | | 6,020,000 | |
| Paid in capital | | | 75,557,000 | | | | 80,222,000 | |
| Treasury stock | | | -154,091,000 | | | | -162,302,000 | |
| Retained earnings | | | 157,731,000 | | | | 178,458,000 | |
| | | |
| Total | | | 113,768,000 | | | | 139,347,000 | |
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