EX-99.1 2 d665224dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

Date: January 28, 2014   CorVel Corporation
  2010 Main Street
  Suite 600
  Irvine, CA 92614
FOR IMMEDIATE RELEASE   Contact: Heather H. Burnham
  Phone: 949-851-1473
  http://www.corvel.com

CorVel Announces Revenues and Earnings

IRVINE, California, January 28, 2014 — CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended December 31, 2013. Revenues for the quarter ended December 31, 2013 were a record $121 million, a 13% increase over the $107 million in revenue in the quarter ended December 31, 2012. Earnings per share for the quarter ended December 31, 2013 were $0.41, a 56% increase over earnings per share of $0.26 for the same quarter of the prior year.

Revenues for the nine months ended December 31, 2013 were a record $359 million, a 13% increase over the $317 million in revenue in the nine months ended December 31, 2012. Earnings per share for the nine months ended December 31, 2013 were a record $1.22, a 44% increase over earnings per share of $0.84 for the same period of the prior year.

Revenue growth for the quarter was driven by a 12% increase in the Company’s Patient Management service line and a 13% increase in its Network Solutions service line. Patient Management services include traditional medical case management and claims administration services. Revenue from claims administration services continues to grow at a rate in excess of 20%.

The December quarter included expenses to expand CorVel’s hospital line item bill review service it recently introduced to the health market. The Company has a proprietary database of in-patient pricing information which provides unique reviews for hospital reimbursement. CorVel is expanding the infrastructure to support this business including office space, recruiting and labor.

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 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, 2013 and the Company’s Quarterly Report on Form 10Q for the quarters ended June 30, 2013 and September 30, 2013. 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)

Quarters ended December 31, 2012 and December 31, 2013

 

Quarter Ended December 31    December 31, 2012      December 31, 2013  

Revenues

     107,287,000         121,098,000   

Cost of revenues

     85,553,000         93,392,000   
  

 

 

    

 

 

 

Gross profit

     21,734,000         27,706,000   
  

 

 

    

 

 

 

General and administrative

     11,710,000         13,204,000   
  

 

 

    

 

 

 

Income from operations

     10,024,000         14,502,000   
  

 

 

    

 

 

 

Income tax expense

     4,100,000         5,727,000   
  

 

 

    

 

 

 

Net income

     5,924,000         8,775,000   
  

 

 

    

 

 

 

Earnings Per Share:

     

Basic

   $ 0.27       $ 0.42   

Diluted

   $ 0.26       $ 0.41   

Weighted Shares

     

Basic

     22,234,000         20,936,000   

Diluted

     22,426,000         21,256,000   
Nine months ended December 31    December 31, 2012      December 31, 2013  

Revenues

     317,351,000         358,570,000   

Cost of revenues

     249,600,000         276,626,000   
  

 

 

    

 

 

 

Gross profit

     67,751,000         81,944,000   
  

 

 

    

 

 

 

General and administrative

     35,866,000         38,270,000   
  

 

 

    

 

 

 

Income from operations

     31,885,000         43,674,000   
  

 

 

    

 

 

 

Income tax expense

     12,735,000         17,615,000   
  

 

 

    

 

 

 

Net income

     19,150,000         26,059,000   
  

 

 

    

 

 

 

Earnings Per Share:

     

Basic

   $ 0.85       $ 1.23   

Diluted

   $ 0.84       $ 1.22   

Weighted Shares

     

Basic

     22,466,000         21,157,000   

Diluted

     22,676,000         21,406,000   

CorVel Corporation

Quarterly Results - Condensed Balance Sheet (unaudited)

March 31, 2013 and December 31, 2013

 

     March 31, 2013      December 31, 2013  

Cash

     19,822,000         32,746,000   

Customer deposits

     10,107,000         10,710,000   

Accounts receivable, net

     49,105,000         55,391,000   

Prepaid expenses and taxes

     7,418,000         5,146,000   

Deferred income taxes

     6,448,000         7,091,000   

Property, net

     46,584,000         49,671,000   

Goodwill and other assets

     42,898,000         42,136,000   
  

 

 

    

 

 

 

Total

     182,382,000         202,891,000   
  

 

 

    

 

 

 

Accounts and taxes payable

     13,587,000         18,650,000   

Accrued liabilities

     39,168,000         47,019,000   

Deferred tax liability

     18,225,000         18,225,000   

Paid in capital

     110,927,000         116,438,000   

Treasury stock

     -301,301,000         -325,276,000   

Retained earnings

     301,776,000         327,835,000   
  

 

 

    

 

 

 

Total

     182,382,000         202,891,000