Exhibit 99.1
NEWS RELEASE
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| Date: February 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, February 3, 2009 — CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.34 for the quarter ended December 31, 2008, compared to $0.43 in the same quarter of the prior year. For the nine months ended December 31, 2008 earnings were $1.09 per share compared to the same period in the prior year of $1.22 per share.
The Company reported quarterly revenues of $77.0 million, up from prior year’s quarterly revenue of $76.7 million. For the nine months ended December 31, 2008, revenues were $233 million, representing a 3.4% increase from the $225 million in revenues achieved in the same period of the prior year.
During the quarter the Company announced plans to provide agent services under the new Medicare legislation requiring expanded reporting for insurers, third party administrators and employers. The Company currently provides Medicare Set-Aside (MSA) services for workers’ compensation and general liability customers throughout the country, and is expanding that service offering to include communications soon to be mandated under the legislation covering Centers for Medicare/Medicaid Services (CMS) requirements.
CorVel currently conducts electronic interfaces with various government entities as well as between itself and other private sector payors. In addition, the Company offers clearinghouse services providing electronic communications with healthcare providers and plans to expand these activities to include communications with CMS. 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.
The Company continued to expand its Enterprise Comp® claims management initiative as well as its line of directed care network services. New software releases will add workflow capabilities that will enable both efficiency and scalability in both product lines.
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 results, and the extension of the Company’s services relating to compliance with new Medicare legislation and 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, 2008 and the Company’s Quarterly Report on Form 10-Q for the quarters ended June 30, 2008 and September 30, 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 (Unaudited)
Quarter and Nine Months Ended December 31, 2007 and 2008
| | | | | | | | | |
| | | Quarter Ended | | Quarter Ended |
| Quarter ended December 31 | | December 31, 2007 | | December 31, 2008 |
| | | |
| Revenues | | | 76,679,000 | | | | 76,962,000 | |
| Cost of revenues | | | 56,279,000 | | | | 59,300,000 | |
| | | |
| Gross profit | | | 20,400,000 | | | | 17,662,000 | |
| | | |
| | | | | | | | | |
| General and administrative | | | 10,584,000 | | | | 10,296,000 | |
| | | |
| Income from operations | | | 9,816,000 | | | | 7,366,000 | |
| | | |
| | | | | | | | | |
| Income tax expense | | | 3,829,000 | | | | 2,862,000 | |
| | | |
| Net income | | | 5,987,000 | | | | 4,504,000 | |
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| |
| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 0.43 | | | $ | 0.34 | |
| Diluted | | $ | 0.43 | | | $ | 0.34 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 13,813,000 | | | | 13,316,000 | |
| Diluted | | | 13,964,000 | | | | 13,439,000 | |
| | | | | | | | | |
| | | Nine months | | Nine months |
| Nine months ended December 31 | | December 31, 2007 | | December 31, 2008 |
| | | |
| Revenues | | | 224,526,000 | | | | 233,018,000 | |
| Cost of revenues | | | 167,291,000 | | | | 176,564,000 | |
| | | |
| Gross profit | | | 57,235,000 | | | | 56,454,000 | |
| | | |
| | | | | | | | | |
| General and administrative | | | 29,059,000 | | | | 31,825,000 | |
| | | |
| Income from operations | | | 28,176,000 | | | | 24,629,000 | |
| | | |
| | | | | | | | | |
| Income tax expense | | | 10,996,000 | | | | 9,594,000 | |
| | | |
| Net income | | | 17,180,000 | | | | 15,035,000 | |
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| | | | | | | | | |
| Earnings Per Share: | | | | | | | | |
| Basic | | $ | 1.24 | | | $ | 1.10 | |
| Diluted | | $ | 1.22 | | | $ | 1.09 | |
| | | | | | | | | |
| Weighted Shares | | | | | | | | |
| Basic | | | 13,889,000 | | | | 13,632,000 | |
| Diluted | | | 14,062,000 | | | | 13,815,000 | |
CorVel Corporation
Quarterly Results — Condensed Balance Sheet (Unaudited)
March 31, 2008 and December 31, 2008
| | | | | | | | | |
| | | March 31, 2008 | | December 31, 2008 |
| | | |
| Cash | | | 17,911,000 | | | | 12,136,000 | |
| Accounts receivable, net | | | 39,164,000 | | | | 37,824,000 | |
| Prepaid expenses and taxes | | | 5,242,000 | | | | 6,148,000 | |
| Deferred income taxes | | | 4,076,000 | | | | 4,130,000 | |
| Property, net | | | 30,569,000 | | | | 29,835,000 | |
| Goodwill and other assets | | | 43,613,000 | | | | 45,611,000 | |
| | | |
| Total | | | 140,575,000 | | | | 135,684,000 | |
| | | |
| | | | | | | | | |
| Accounts and taxes payable | | | 20,475,000 | | | | 17,664,000 | |
| Accrued liabilities | | | 16,473,000 | | | | 18,322,000 | |
| Deferred tax liability | | | 7,249,000 | | | | 7,245,000 | |
| Paid in capital | | | 80,222,000 | | | | 83,457,000 | |
| Treasury stock | | | -162,302,000 | | | | -184,497,000 | |
| Retained earnings | | | 178,458,000 | | | | 193,493,000 | |
| | | |
| Total | | | 140,575,000 | | | | 135,684,000 | |
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