Exhibit 99.1
NEWS RELEASE
| | |
Date: November 1, 2011 | | CorVel Corporation |
| | 2010 Main Street |
| | Suite 600 |
| | Irvine, CA 92614 |
| |
FOR IMMEDIATE RELEASE | | Contact: Heather H. Burnham |
| | Phone: 949-851-1473 |
| | http://www.corvel.com |
CorVel Announces Revenues and Earnings
IRVINE, California, November 1, 2011 — CorVel Corporation (NASDAQ: CRVL) today announced the results for the quarter ended September 30, 2011. Revenues for the quarter ended September 30, 2011 were a record $105 million, a 12% increase over the $93 million in revenue in the September 2010 quarter. Net income for the quarter was $7.9 million. Earnings per share for the quarter ended September 30, 2011 were $0.68, a 10% increase over the $.62 in the September 2010 quarter.
Revenues for the six months ended September 30, 2011 were a record $207 million, a 12% increase over the $185 million in revenue in the six months ended September 30, 2010. Net income for the six month period was a record $16.1 million. Earnings per share for the six months ended September 30, 2011 were a record $1.37, a 9% increase over the $1.26 earnings per share for the six months ended September 30, 2010.
The revenue growth for the current quarter was paced by a balanced 12% increase in the Company’s Network Solutions service line and 12% growth in its Patient Management service line. Network Solutions growth included the continued expansion of CorVel’s pharmacy benefit management (PBM) service offering. The Patient Management service line includes the Company’s fully integrated claims solution, Enterprise Comp, as well as traditional case management services. Claims management growth included strong sales momentum and the delivery of value added services designed to reduce costs.
“The quarter’s results reflect sustained growth in our Enterprise Comp product, as well as our continued success in firmly establishing the CorVel brand in the TPA industry”, said Dan Starck, CorVel President and CEO, “The overlay of our unique approach to workers’ compensation claims management on our national footprint has made CorVel a viable option for local, regional and national employers.”
About CorVel
CorVel Corporation is a national provider of industry-leading workers’ compensation solutions for employers, third party administrators, insurance companies, and government agencies seeking to control costs and promote positive outcomes. We apply technology, intelligence, and a human touch to the problem of disability management so our clients can intervene early and often and are connected to the critical intelligence they need to proactively manage risk. With a robust technology platform at its core, our connected solution is delivered by a national team of associates who are committed to helping clients design and administer programs that meet their organization’s performance goals.
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 expansion of case management, claims administration, and bill review product lines. 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, 2011 and the Company’s Quarterly Report on Form 10Q for quarter ended June 30, 2011. 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
Three and Six Months Ended September 30, 2010 and September 30, 2011
| | | | | | | | |
| | | Quarter Ended
September 30, 2010 | | | Quarter Ended
September 30, 2011 | |
Revenues | | | 93,392,000 | | | | 104,552,000 | |
Cost of revenues | | | 70,153,000 | | | | 78,940,000 | |
| | | | | | | | |
Gross profit | | | 23,239,000 | | | | 25,612,000 | |
| | | | | | | | |
General and administrative | | | 14,171,000 | | | | 12,592,000 | |
| | | | | | | | |
Income from operations | | | 9,068,000 | | | | 13,020,000 | |
| | | | | | | | |
Income tax expense | | | 1,535,000 | | | | 5,139,000 | |
| | | | | | | | |
Net income | | | 7,533,000 | | | | 7,881,000 | |
| | | | | | | | |
Earnings Per Share: | | | | | | | | |
Basic | | $ | 0.64 | | | $ | 0.68 | |
Diluted | | $ | 0.62 | | | $ | 0.68 | |
Weighted Shares | | | | | | | | |
Basic | | | 11,861,000 | | | | 11,526,000 | |
Diluted | | | 12,104,000 | | | | 11,672,000 | |
| | |
| | | Six months
September 30, 2010 | | | Six months
September 30, 2011 | |
Revenues | | | 184,895,000 | | | | 206,860,000 | |
Cost of revenues | | | 137,853,000 | | | | 155,704,000 | |
| | | | | | | | |
Gross profit | | | 47,042,000 | | | | 51,156,000 | |
| | | | | | | | |
General and administrative | | | 25,657,000 | | | | 24,886,000 | |
| | | | | | | | |
Income from operations | | | 21,385,000 | | | | 26,270,000 | |
| | | | | | | | |
Income tax expense | | | 6,092,000 | | | | 10,191,000 | |
| | | | | | | | |
Net income | | | 15,293,000 | | | | 16,079,000 | |
| | | | | | | | |
Earnings Per Share: | | | | | | | | |
Basic | | $ | 1.28 | | | $ | 1.39 | |
Diluted | | $ | 1.26 | | | $ | 1.37 | |
Weighted Shares | | | | | | | | |
Basic | | | 11,909,000 | | | | 11,572,000 | |
Diluted | | | 12,145,000 | | | | 11,729,000 | |
CorVel Corporation
Quarterly Results - Condensed Balance Sheet - Unaudited
March 31, 2011 and September 30, 2011
| | | | | | | | |
| | | March 31, 2011 | | | September 30, 2011 | |
Cash | | | 12,269,000 | | | | 8,134,000 | |
Customer deposit | | | 5,279,000 | | | | 4,846,000 | |
Accounts receivable, net | | | 48,964,000 | | | | 50,826,000 | |
Prepaid expenses and taxes | | | 6,417,000 | | | | 6,608,000 | |
Deferred income taxes | | | 9,298,000 | | | | 9,759,000 | |
Property, net | | | 38,500,000 | | | | 43,351,000 | |
Goodwill and other assets | | | 43,498,000 | | | | 43,202,000 | |
| | | | | | | | |
Total | | | 164,225,000 | | | | 166,726,000 | |
| | | | | | | | |
Accounts and taxes payable | | | 14,590,000 | | | | 17,956,000 | |
Accrued liabilities | | | 40,248,000 | | | | 30,325,000 | |
Deferred tax liability | | | 9,748,000 | | | | 9,748,000 | |
Paid in capital | | | 100,076,000 | | | | 103,060,000 | |
Treasury stock | | | -248,931,000 | | | | -258,936,000 | |
Retained earnings | | | 248,494,000 | | | | 264,573,000 | |
| | | | | | | | |
Total | | | 164,225,000 | | | | 166,726,000 | |
| | | | | | | | |
