Exhibit 99.1
NEWS RELEASE
| | |
| Date: January 31, 2012 | | 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, January 31, 2012 — CorVel Corporation (NASDAQ: CRVL) today announced the results for the quarter ended December 31, 2011. Revenues for the quarter ended December 31, 2011 were $101 million, a 6% increase over the $95 million in revenue in the December 2010 quarter. Net income for the quarter was $5.4 million. Earnings per share for the quarter ended December 31, 2011 was $0.47. Earnings per share for the quarter ended December 31, 2010 was $0.56.
Revenues for the nine months ended December 31, 2011 were a record $308 million, a 10% increase over the $280 million in revenue in the nine months ended December 31, 2010. Net income for the nine month period was $21.5 million. Earnings per share for the nine months ended December 31, 2011 was a record $1.84. Earnings per share for the nine months ended December 31, 2010 was $1.82.
Revenue growth in the quarter was largely driven by sustained growth in the Company’s claims management services. The gross margin for the quarter was adversely impacted by a shift in the revenues from higher margin services to lower margin services. The Company continued its strategic investment in mobile computing with significant advances during the quarter, including the release of its Claim Intake App available for both the Apple and Android markets. CorVel’s mobile applications are designed to reduce time delays in the claims process in order to reduce the cost of risk for clients.
Expanded Share Buyback Program
The Company’s Board of Directors authorized an increase in the number of shares to be repurchased by one million shares, from 15 million shares to 16 million shares. The Company began repurchasing its shares in 1996. Since the inception date, the Company has repurchased 14.8 million shares for $265 million, for an average price of $17.87 per share. These repurchases have been funded primarily from the operating income generated by the Company. Net of shares repurchased, the Company had 11.4 million shares remaining outstanding at December 31, 2011.
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, including claims management services. 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 quarters ended June 30, 2011 and September 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 Nine Months Ended December 31, 2010 and December 31, 2011
| | | | | | | | |
| | | Quarter Ended
December 31, 2010 | | | Quarter Ended
December 31, 2011 | |
Revenues | | | 95,282,000 | | | | 101,381,000 | |
Cost of revenues | | | 71,461,000 | | | | 80,155,000 | |
| | | | | | | | |
Gross profit | | | 23,821,000 | | | | 21,226,000 | |
| | | | | | | | |
General and administrative | | | 12,425,000 | | | | 12,332,000 | |
| | | | | | | | |
Income from operations | | | 11,396,000 | | | | 8,894,000 | |
| | | | | | | | |
Income tax expense | | | 4,672,000 | | | | 3,494,000 | |
| | | | | | | | |
Net income | | | 6,724,000 | | | | 5,400,000 | |
| | | | | | | | |
Earnings Per Share: | | | | | | | | |
Basic | | $ | 0.57 | | | $ | 0.47 | |
Diluted | | $ | 0.56 | | | $ | 0.47 | |
Weighted Shares | | | | | | | | |
Basic | | | 11,749,000 | | | | 11,421,000 | |
Diluted | | | 11,984,000 | | | | 11,574,000 | |
| | |
| | | Nine months
December 31, 2010 | | | Nine months
December 31, 2011 | |
Revenues | | | 280,177,000 | | | | 308,241,000 | |
Cost of revenues | | | 209,314,000 | | | | 235,859,000 | |
| | | | | | | | |
Gross profit | | | 70,863,000 | | | | 72,382,000 | |
| | | | | | | | |
General and administrative | | | 38,082,000 | | | | 37,218,000 | |
| | | | | | | | |
Income from operations | | | 32,781,000 | | | | 35,164,000 | |
| | | | | | | | |
Income tax expense | | | 10,764,000 | | | | 13,685,000 | |
| | | | | | | | |
Net income | | | 22,017,000 | | | | 21,479,000 | |
| | | | | | | | |
Earnings Per Share: | | | | | | | | |
Basic | | $ | 1.86 | | | $ | 1.86 | |
Diluted | | $ | 1.82 | | | $ | 1.84 | |
Weighted Shares | | | | | | | | |
Basic | | | 11,855,000 | | | | 11,521,000 | |
Diluted | | | 12,091,000 | | | | 11,677,000 | |
CorVel Corporation
Quarterly Results - Condensed Balance Sheet - Unaudited
March 31, 2011 and December 31, 2011
| | | | | | | | |
| | | March 31, 2011 | | | December 31, 2011 | |
Cash | | | 12,269,000 | | | | 10,065,000 | |
Customer deposit | | | 5,279,000 | | | | 4,671,000 | |
Accounts receivable, net | | | 48,964,000 | | | | 46,119,000 | |
Prepaid expenses and taxes | | | 6,417,000 | | | | 6,802,000 | |
Deferred income taxes | | | 9,298,000 | | | | 9,971,000 | |
Property, net | | | 38,500,000 | | | | 44,888,000 | |
Goodwill and other assets | | | 43,498,000 | | | | 43,371,000 | |
| | | | | | | | |
Total | | | 164,225,000 | | | | 165,887,000 | |
| | | | | | | | |
Accounts and taxes payable | | | 14,590,000 | | | | 14,260,000 | |
Accrued liabilities | | | 40,248,000 | | | | 32,360,000 | |
Deferred tax liability | | | 9,748,000 | | | | 9,748,000 | |
Paid in capital | | | 100,076,000 | | | | 104,741,000 | |
Treasury stock | | | -248,931,000 | | | | -265,195,000 | |
Retained earnings | | | 248,494,000 | | | | 269,973,000 | |
| | | | | | | | |
Total | | | 164,225,000 | | | | 165,887,000 | |
| | | | | | | | |
