CorVel Announces Revenues and Earnings

• Press Release
• Source: CorVel Corporation
• On 6:15 am EST, Tuesday November 3, 2009

IRVINE, Calif., Nov. 3 /PRNewswire-FirstCall/ -- CorVel Corporation (Nasdaq: CRVL - News) reported earnings per share of $0.50 for the quarter ended September 30, 2009, a 39% increase compared to $0.36 in the same quarter of the prior year. The Company reported quarterly revenues of $82 million, a 6% increase compared to $78 million in the same quarter of the prior year. Earnings per share for the six months ended September 30, 2009 were $0.99, a 32% increase compared to $0.75 for the same period of the prior fiscal year. The Company reported revenues of $164 million for the six months ended September 30, 2009, a 5% increase compared to $156 million for the same period of the prior fiscal year.

The Company's results are reflective of improved growth in the Enterprise Comp product line, CorVel's integrated claims management solution for workers' compensation claims. The Company continues to invest in software development across product lines with focus on the advancement of artificial intelligence capabilities and workflow management tools into the management of workers' compensation claims and all associated medical and indemnity costs. The second quarter's results also benefited from growth within the Network Solutions which are reflective of improved savings for clients.

During the second quarter, the Company's Board of Directors authorized the expansion of the share repurchase program by one million shares. During the September quarter the Company repurchased 581,000 shares for $17 million. At September 30, 2009 the Company had 12,405,000 shares outstanding.

About CorVel

CorVel Corporation (http://www.corvel.com/) is a national provider of leading-edge services and solutions in the field of disability management. 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, claims administration, case management, utilization management, 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 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 and its investment strategies and its focus on the advancement of incorporating artificial intelligence capabilities. 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, 2009. 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)
    Quarter and Six Months Ended September 30, 2008 and 2009

                                     Quarter Ended          Quarter Ended
                                   September 30, 2008     September 30, 2009
                                   ------------------     ------------------
    Revenues                              $77,855,000        $82,416,000
    Cost of revenues                       58,996,000         61,609,000
                                           ----------         ----------
    Gross profit                           18,859,000         20,807,000
                                           ----------         ----------

    General and administrative             10,722,000         10,206,000
                                           ----------         ----------
    Income from operations                  8,137,000         10,601,000
                                            ---------         ----------

    Income tax expense                      3,173,000          4,201,000
                                            ---------          ---------
    Net income                             $4,964,000         $6,400,000
                                           ==========         ==========

    Earnings Per Share:
    Basic                                       $0.36              $0.50
    Diluted                                     $0.36              $0.50

    Weighted Shares
    Basic                                  13,764,000         12,758,000
    Diluted                                13,960,000         12,920,000



                                     Six Months Ended      Six Months Ended
                                   September 30, 2008    September 30, 2009
                                   ------------------    ------------------
    Revenues                             $156,056,000       $163,728,000
    Cost of revenues                      117,264,000        121,779,000
                                          -----------        -----------
    Gross profit                           38,792,000         41,949,000
                                           ----------         ----------

    General and administrative             21,529,000         20,656,000
                                           ----------         ----------
    Income from operations                 17,263,000         21,293,000
                                           ----------         ----------

    Income tax expense                      6,732,000          8,489,000
                                            ---------          ---------
    Net income                            $10,531,000        $12,804,000
                                          ===========        ===========

    Earnings Per Share:
    Basic                                       $0.76              $1.00
    Diluted                                     $0.75              $0.99

    Weighted Shares
    Basic                                  13,790,000         12,842,000
    Diluted                                14,003,000         12,988,000




    CorVel Corporation
    Quarterly Results - Condensed Balance Sheet (Unaudited)
    March 31, 2009 and September 30, 2009


                                       March 31, 2009   September 30, 2009
                                       --------------    ------------------
    Cash                                  $14,681,000        $11,983,000
    Accounts receivable, net               41,249,000         42,104,000
    Prepaid expenses and taxes              4,841,000          3,215,000
    Deferred income taxes                   4,531,000          4,763,000
    Property, net                          29,790,000         29,601,000
    Goodwill and other assets              46,117,000         46,291,000
                                           ----------         ----------
      Total                              $141,209,000       $137,957,000
                                         ============       ============

    Accounts and taxes payable            $18,553,000        $15,540,000
    Accrued liabilities                    18,653,000         20,293,000
    Deferred tax liability                  7,706,000          7,673,000
    Paid in capital                        84,324,000         87,120,000
    Treasury stock                       -185,762,000       -203,208,000
    Retained earnings                     197,735,000        210,539,000
                                          -----------        -----------
      Total                              $141,209,000       $137,957,000
                                         ============       ============

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