IRVINE, Calif., Nov. 7 /PRNewswire-FirstCall/ -- CorVel Corporation reported earnings per share of $0.22 for the quarter ended September 30, 2005, down 23% from per share earnings of $0.29 for the same quarter of the prior year. September quarter revenues were $66 million, down 8% from $72 million in the September quarter of 2004. Revenues and earnings for the quarter reflected the Company’s ongoing product development commitment, despite the continuing soft workers’ compensation claims market, regulatory compliance expenses and recent hurricane disruptions.
Despite the severity of regional storm damage, CorVel’s operations staff and flexible information systems architecture, combined to maintain full service continuity. The Company’s local branch staff worked tirelessly to assist the communities most affected by the storms. These new automated workflow management tools have also increased savings for customers throughout the Country. The Company is offering expanded document and workflow management services for medical review, and complete mailroom automation applications.
Medical Provider Networks, combined with Utilization Management, have produced record savings under new regulations in the State of California. Legislation supporting managed care controls is progressing in several states. Such legislation typically includes prompt pay protections for medical providers. The Company has implemented web-based medical review tracking tools to help its customers meet such new regulations and to avoid related late-payment fines.
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 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 report, 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 report 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, 2005. The forward-looking statements in this report 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 -- Unaudited Three months ended September 30, 2004 and 2005 Three months ended September 30, 2004 2005 Revenues $72,156,000 $66,343,000 Cost of revenues 60,462,000 55,470,000 Gross profit 11,694,000 10,873,000 General and administrative 6,756,000 7,280,000 expenses 4,938,000 3,593,000 Income before income taxes 1,901,000 1,382,000 Income tax provision $3,037,000 $2,211,000 Net Income Net income per share Basic $.29 $.22 Diluted $.29 $.22 Weighted average shares outstanding Basic 10,487,000 9,858,000 Diluted 10,597,000 9,911,000 CorVel Corporation Income Statement -- Unaudited Six months ended September 30, 2004 and 2005 Six months ended September 30, 2004 2005 Revenues $148,412,000 $137,010,000 Cost of revenues 123,809,000 114,133,000 Gross profit 24,603,000 22,877,000 General and administrative 14,119,000 14,714,000 expenses 10,484,000 8,163,000 Income before income taxes 4,036,000 3,142,000 Income tax provision $6,448,000 $5,021,000 Net Income Net income per share Basic $.61 $.51 Diluted $.61 $.50 Weighted average shares outstanding Basic 10,535,000 9,909,000 Diluted 10,651,000 9,965,000 CorVel Balance Sheet Summary Balance Sheet Information As of March 31, 2005 (audited) and September 30, 2005 (unaudited) March 31, 2005 Sept. 30, 2005 Assets Cash and cash equivalents $8,945,000 $7,088,000 Accounts receivable, net 45,611,000 42,942,000 Prepaid taxes and expenses 3,891,000 3,379,000 Deferred income taxes 4,152,000 4,478,000 Property and equipment, net 29,649,000 28,865,000 Goodwill and other assets 13,045,000 12,974,000 TOTAL ASSETS $105,293,000 $99,726,000 Liabilities and Stockholders’ Equity Accounts payable $12,293,000 $13,641,000 Accrued liabilities 11,059,000 9,611,000 Deferred income taxes 7,700,000 6,946,000 Common stock and paid-in-capital 57,672,000 60,686,000 Treasury stock (113,481,000) (126,229,000) Retained earnings 130,050,000 135,071,000 TOTAL LIABILITIES AND EQUITY $105,293,000 $99,726,000
CorVel Corporation
CONTACT: Richard Schweppe of CorVel Corporation, +1-949-851-1473
Web site: http://www.corvel.com/
