Market Overview

CorVel Announces Revenues and Earnings

Share:

IRVINE, Calif., Oct. 31, 2017 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ:CRVL) announced the results for the quarter ended September 30, 2017.  Revenues for the quarter ended September 30, 2017 were $136 million, an increase of 6% from revenues of $128 million in the same quarter of the prior year.  Earnings per share for the quarter ended September 30, 2017 were $0.44, an increase of 26% from earnings per share of $0.35 in the same quarter of the prior year.

Revenues for the six months ended September 30, 2017 were $274 million, up 7% from $257 million in the same period of the prior year.  Earnings per share for the six months ended September 30, 2017 were $0.90 and were $0.73 for the same period of the prior year.

Revenue growth for the quarter was driven by an increase in the Company's claims management services.  The market continues to be receptive to CorVel's immediate intervention model which includes 24/7 nurse triage and telehealth services offering injured workers immediate access to quality care.

The Company's managed care solutions, which includes Network Solutions for the wholesale payor market, also had increased revenues driven by the Company's value-added performance for clients, which includes a new interface, the CareMC EdgeSM.  Payors face increasing pressure to help contain inflating medical costs which has increased interest in the Company's medical review and provider management services.

The Company is continuing its strategy of long term investments in systems infrastructure and information technology with the ongoing development of its claims management platform, caremc.com, which now includes enterprise wide features such as web services and single sign on authentication. CareMC represents the next generation of on-demand information processing solutions for risk management. The Company is committed to helping claims professionals work together more easily and productively with employers to help injured employees return to the workplace sooner.

About CorVel  

CorVel Corporation is a national provider of innovative workers' compensation, liability, auto, and health solutions for employers, insurance companies, third party administrators 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 investment strategies, bill review 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, 2017 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017. 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
Quarters and Six Months Ended September 30, 2016 (unaudited) and September 30, 2017 (unaudited)

Quarter Ended   September 30,
2016
    September 30,
2017
 
Revenues     128,219,000       136,431,000  
Cost of revenues     102,307,000       110,679,000  
Gross profit     25,912,000       25,752,000  
General and administrative     14,644,000       13,670,000  
Income from operations     11,268,000       12,082,000  
Income tax provision     4,316,000       3,689,000  
Net income     6,952,000       8,393,000  
Earnings Per Share:                
Basic   $ 0.36     $ 0.45  
Diluted   $ 0.35     $ 0.44  
Weighted Shares                
Basic     19,581,000       18,759,000  
Diluted     19,733,000       18,966,000  


Six Months Ended   September 30,
2016
    September 30,
2017
 
Revenues     256,678,000       274,043,000  
Cost of revenues     205,184,000       219,508,000  
Gross profit     51,494,000       54,535,000  
General and administrative     28,105,000       28,299,000  
Income from operations     23,389,000       26,236,000  
Income tax provision     8,946,000       9,068,000  
Net income     14,443,000       17,168,000  
Earnings Per Share:                
Basic   $ 0.74     $ 0.91  
Diluted   $ 0.73     $ 0.90  
Weighted Shares                
Basic     19,577,000       18,785,000  
Diluted     19,743,000       18,983,000  

CorVel Corporation
Quarterly Results – Condensed Balance Sheet
March 31, 2017 (audited) and September 30, 2017 (unaudited)

    March 31, 2017     September 30,
2017
 
Cash     28,611,000       38,133,000  
Customer deposits     32,471,000       39,038,000  
Accounts receivable, net     62,841,000       65,996,000  
Prepaid taxes and expenses     4,944,000       5,134,000  
Property, net     63,042,000       64,149,000  
Goodwill and other assets     43,474,000       43,079,000  
Total     235,383,000       255,529,000  
Accounts and taxes payable     16,583,000       15,443,000  
Accrued liabilities     73,468,000       86,263,000  
Deferred tax liability     6,686,000       6,127,000  
Paid-in capital     135,686,000       138,755,000  
Treasury stock     (419,802,000 )     (430,989,000 )
Retained earnings     422,762,000       439,930,000  
Total     235,383,000       255,529,000  


CorVel Corporation
2010 Main Street
Suite 600
Irvine, CA 92614

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

View Comments and Join the Discussion!