Exhibit 99.1
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NEWS RELEASE | | |
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| Date: June 7, 2007 | | 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
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CorVel Announces Record Earnings
IRVINE, California, June 7, 2007 — CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.37 for the quarter ended March 31, 2007, up from $0.22 in the same quarter of the prior year. For the fiscal year ended March 31, 2007 earnings were $1.30 per share compared to fiscal 2006 earnings of $0.67 per share.
The Company reported quarterly revenues of $71 million, up from prior year quarterly revenues of $66 million. For the fiscal year ended March 31, 2007, revenues were $275 million, representing a 3% increase from the $267 million in revenues achieved in fiscal 2006. Strong savings results for customers produced improved operating performance in the Company’s Network Solutions services.
Throughout the year the Company experienced improved revenues in its preferred provider organizations and specialty medical review services. Strong savings for customers have been contributing to increasing revenues for these services. CorVel’s implementation of document management, automated workflow and protocol-based routing of work to centers of excellence has created a technology platform that is producing superior results for customers. The Company is extending this new approach to managing healthcare to its line of patient management services.
The Company’s Enterprise Comp line of claims management services has been expanded through two acquisitions in the last four months. CorVel’s 125 field offices, long-standing investments in information processing and existing relationships with employers and third party administrators across the country form the basis for the ongoing implementation of this product line expansion.
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 1,500 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. 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, 2006. 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
Income Statement
Three Months Ended March 31, 2006 and 2007
(Unaudited)
| | | | | | | | | |
| | | Three months ended March 31, | |
| | | 2006 | | | 2007 | |
| Revenues | | $ | 66,421,000 | | | $ | 70,910,000 | |
| Cost of revenues | | | 53,902,000 | | | | 53,330,000 | |
| | | | | | | |
| Gross profit | | | 12,519,000 | | | | 17,580,000 | |
| General and administrative expenses | | | 7,535,000 | | | | 8,911,000 | |
| | | | | | | |
| Income before income taxes | | | 4,984,000 | | | | 8,669,000 | |
| Income tax provision | | | 1,917,000 | | | | 3,381,000 | |
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| Net Income | | $ | 3,067,000 | | | $ | 5,288,000 | |
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| Net income per share | | | | | | | | |
| Basic | | $ | 0.22 | | | $ | 0.38 | |
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| Diluted | | $ | 0.22 | | | $ | 0.37 | |
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| | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | |
| Basic | | | 14,111,000 | | | | 14,007,000 | |
| Diluted | | | 14,142,000 | | | | 14,305,000 | |
CorVel Corporation
Income Statement
Fiscal Year Ended March 31, 2006 and 2007
(Unaudited)
| | | | | | | | | |
| | | Fiscal Year Ended March 31, | |
| | | 2006 | | | 2007 | |
| Revenues | | $ | 266,504,000 | | | $ | 274,581,000 | |
| Cost of revenues | | | 221,060,000 | | | | 208,746,000 | |
| | | | | | | |
| Gross profit | | | 45,444,000 | | | | 65,835,000 | |
| General and administrative expenses | | | 29,590,000 | | | | 35,383,000 | |
| | | | | | | |
| Income before income taxes | | | 15,854,000 | | | | 30,452,000 | |
| Income tax provision | | | 6,101,000 | | | | 11,876,000 | |
| | | | | | | |
| Net Income | | $ | 9,753,000 | | | $ | 18,576,000 | |
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| Net income per share | | | | | | | | |
| Basic | | $ | 0.67 | | | $ | 1.32 | |
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| Diluted | | $ | 0.67 | | | $ | 1.30 | |
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| | | | | | | | | |
| Weighted average shares outstanding | | | | | | | | |
| Basic | | | 14,534,000 | | | | 14,070,000 | |
| Diluted | | | 14,592,000 | | | | 14,268,000 | |
(All share and per share amounts have been retroactively adjusted to reflect the three-for-two stock split which occurred during the December 2006 quarter)
CorVel Balance Sheet
Summary Balance Sheet Information
As of March 31, 2006 and March 31, 2007
(Unaudited)
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| | | March 31, 2006 | | | March 31, 2007 | |
Assets | | | | | | | | |
| Cash and cash equivalents | | $ | 14,206,000 | | | $ | 15,020,000 | |
| Accounts receivable, net | | | 39,521,000 | | | | 41,027,000 | |
| Prepaid taxes and expenses | | | 2,221,000 | | | | 3,090,000 | |
| Deferred income taxes | | | 4,521,000 | | | | 5,150,000 | |
| Property and equipment, net | | | 26,459,000 | | | | 24,864,000 | |
| Goodwill and other assets | | | 13,170,000 | | | | 24,617,000 | |
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TOTAL ASSETS | | $ | 100,098,000 | | | $ | 113,768,000 | |
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Liabilities and Stockholders’ Equity | | | | | | | | |
| Accounts payable | | $ | 13,712,000 | | | $ | 13,418,000 | |
| Accrued liabilities | | | 12,160,000 | | | | 15,851,000 | |
| Deferred income taxes | | | 6,190,000 | | | | 5,302,000 | |
| Common stock and paid-in-capital | | | 61,086,000 | | | | 75,557,000 | |
| Treasury stock | | | (132,205,000 | ) | | | (154,091,000 | ) |
| Retained earnings | | | 139,155,000 | | | | 157,731,000 | |
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TOTAL LIABILITIES AND EQUITY | | $ | 100,098,000 | | | $ | 113,768,000 | |
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