IRVINE, Calif., July 22 /PRNewswire-FirstCall/ -- CorVel Corporation reported earnings per share of $0.32 for the quarter ended June 30, 2004, compared to earnings per share of $0.40 for the same quarter of the prior year. Net income for the quarter was $3.4 million compared to $4.4 million for the prior year's June quarter. June quarter revenues were $76.3 million, up 1% from $75.9 million in the June quarter of 2003. Revenues and earnings for the quarter reflected ongoing soft conditions in the national workers' compensation claims market.
During the quarter, workforce expenses were reduced, resulting in improved profits and cash flow. Advances in the Company's MedCheck medical review software, and the development of document scanning and workflow management processes, have created productivity gains. Employment has been reduced by ten percent from the same quarter a year ago. These reductions are part of ongoing workforce adjustments enabled by these technology advances, and required by evolutionary changes in the workers' compensation marketplace.
The Company has continued the launch of its Enterprise Comp line of claims management tools. Enterprise Comp includes applications of CorVel's artificial intelligence tools, which automate the processing of incoming casualty claims. This new service applies early intervention techniques to accelerate employees' return to work. Enterprise Comp also reduces the labor in claims management and better focuses remaining claims administration resources.
CorVel's line of medical review and network management services had revenues up 6% from the same quarter of the prior year. The Company is now expanding the scope of these services to include a larger range of medical cost containment services, opening new markets for these services. Savings results have improved, reflecting the success of the Company's expanding use of artificial intelligence technology. In addition, implementation has begun of the newest version of the Company's medical review software. Branded MedCheck QL, this product includes much improved processing speeds, as well as fully integrated document management capabilities.
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 through its 3,150 associates and 160 offices in 49 states. Leveraging its commitment to flexibility and personal service, CorVel delivers custom solutions for employers, insurers, third party administrators and government entities.
This press release contains forward-looking statements that are subject to risks and uncertainties, including the risk that the historical financial performance of the Company may not be indicative of future financial performance and the risk that the recent performance of the Company's Common Stock may not be indicative of its future performance, as well as other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended March 31, 2004, and the Company's most recent form 10-Q.
CorVel Corporation Income Statement - Unaudited Three months ended June 30, 2003 and 2004 Three months ended June 30, 2003 2004 Revenues $75,912,000 $76,256,000 Cost of revenues 62,304,000 63,347,000 Gross profit 13,608,000 12,909,000 General and administrative expenses 6,580,000 7,363,000 Income before income taxes 7,028,000 5,546,000 Income tax provision 2,671,000 2,135,000 Net Income $4,357,000 $3,411,000 Net income per share Basic $.41 $.32 Diluted $.40 $.32 Weighted average shares outstanding Basic 10,625,000 10,582,000 Diluted 10,894,000 10,704,000 CorVel Balance Sheet Summary Balance Sheet Information As of March 31, 2004 (audited) and June 30, 2004 (unaudited) March 31, 2004 June 30, 2004 Assets Cash and cash equivalents $8,641,000 $12,337,000 Accounts receivable, net 45,538,000 44,467,000 Prepaid taxes and expenses 5,363,000 2,833,000 Deferred income taxes 4,316,000 3,742,000 Property and equipment, net 29,387,000 30,020,000 Goodwill and other assets 13,066,000 13,068,000 TOTAL ASSETS $106,311,000 $106,467,000 Liabilities and Stockholders' Equity Accounts payable $10,765,000 $10,406,000 Accrued liabilities 11,847,000 10,434,000 Deferred income taxes 6,077,000 6,193,000 Common stock and paid-in-capital 54,010,000 54,366,000 Treasury stock (96,281,000) (98,236,000) Retained earnings 119,893,000 123,304,000 TOTAL LIABILITIES AND EQUITY $106,311,000 $106,467,000
CorVel CorporationCONTACT: Richard Schweppe of CorVel Corporation, +1-949-851-1473
Web site: http://www.corvel.com/
