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CorVel Announces Revenues and Earnings

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IRVINE, Calif., Jan. 31, 2017 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter and nine months ended December 31, 2016. Revenues for the quarter ended December 31, 2016 were $128.4 million, up 3.6% from $123.9 million in the same quarter of the prior year. Earnings per share for the quarter ended December 31, 2016 were $0.36, up 7% from $0.34 for the same quarter of the prior year.

Revenues for the nine months ended December 31, 2016 were $385.1 million, up 2.6% from $375.3 million in the same period of the prior year. Earnings per share for the nine months ended December 31, 2016 were $1.09.

Results for the quarter were driven by improvements across most lines of business.  The Company has streamlined product lines through the consolidation of operational functions to maximize effectiveness for enhanced service delivery. However staffing and adjusting to the new laws for time management continued to result in recruiting expenses and legal fees.

The Company is continuing its strategy of long term investments in systems infrastructure and information technology. Payors in the workers' compensation market continue to show growing interest in CorVel's pioneering Enterprise Comp service offering. Beginning with the launch of Telehealth nearly two years ago as part of its Immediate Intervention model for injured workers, the Company continues to improve the delivery of care. Pursuing innovations in technology the Company strives to enhance patient access and advocacy, avoiding the congestion and conflict inherent within traditional legacy systems.

About CorVel

CorVel Corporation is a national provider of innovative workers' compensation, auto, liability and health 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 throughout the risk management process so our clients can intervene early and often while being 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 product and systems investment strategies, healthcare delivery and 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, 2016 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 and September 30, 2016. 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  
Quarter and Nine Months Ended December 31, 2015 and December 31, 2016  
   
 
Quarter Ended December 31, 2015 December 31, 2016  
Revenues    123,891,000   128,403,000  
Cost of revenues   98,659,000   102,826,000  
Gross profit   25,232,000   25,577,000  
       
General and administrative   14,501,000   14,134,000  
Income from operations   10,731,000   11,443,000  
       
Income tax expense   4,040,000   4,394,000  
Net income   6,691,000   7,049,000  
       
Earnings Per Share:      
Basic $ 0.34 $ 0.36  
Diluted $ 0.34 $ 0.36  
       
Weighted Shares  
Basic   19,673,000   19,426,000  
Diluted   19,852,000   19,549,000  
 
       
Six months ended December 31, 2015 December 31, 2016    
Revenues    375,290,000   385,081,000  
Cost of revenues   297,191,000   308,010,000  
Gross profit   78,099,000   77,071,000  
       
General and administrative   42,672,000   42,239,000  
Income from operations   35,427,000   34,832,000  
       
Income tax expense   13,568,000   13,340,000  
Net income   21,859,000   21,492,000  
       
Earnings Per Share:      
Basic $ 1.10 $ 1.10  
Diluted $ 1.09 $ 1.09  
       
Weighted Shares  
Basic   19,908,000   19,526,000  
Diluted   20,083,000   19,679,000  
       
       
 
CorVel Corporation  
Quarterly Results - Condensed Balance Sheet  
March 31, 2016 (audited) and December 31, 2016 (unaudited)  
       
       
   March 31, 2016 December 31, 2016  
Cash   32,779,000   38,809,000  
Customer deposits   25,649,000   30,629,000  
Accounts receivable, net   59,747,000   59,181,000  
Prepaid expenses and taxes   4,933,000   6,933,000  
Property, net   53,268,000   58,199,000  
Goodwill and other assets   43,893,000   43,974,000  
  Total   220,269,000   237,725,000  
       
Accounts and taxes payable   13,233,000   16,003,000  
Accrued liabilities   67,182,000   71,475,000  
Deferred tax liability   7,906,000   7,246,000  
Paid in capital   130,468,000   135,154,000  
Treasury stock   -391,803,000   -406,928,000  
Retained earnings    393,283,000   414,775,000    
 Total   220,269,000   237,725,000  
       

Contact: Heather H. Burnham
Phone: 949-851-1473
http://www.corvel.com
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