CorVel Announces Revenues and Earnings

IRVINE, Calif., Nov. 01, 2016 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ:CRVL) announced the results for the quarter and six months ended September 30, 2016. Revenues for the quarter ended September 30, 2016 were $128.2 million, up 3% from $124.5 million in the same quarter of the prior year. Earnings per share for the quarter ended September 30, 2016 were $0.35 and were $0.41 for the same quarter of the prior year.

Revenues for the six months ended September 30, 2016 were $256.7 million, up 2% from $251.4 million in the same period of the prior year. Earnings per share for the six months ended September 30, 2016 were $0.73 and were $0.75 for the same period of the prior year.

Revenue growth for the quarter was driven by a 13% increase in the Company’s claims management services. However staffing and adjusting to the new laws for time management resulted in recruiting expenses and legal fees. The Company is also experiencing extended sales cycles due to the economic uncertainty in the healthcare marketplace caused by the election and the evolving conditions under the Affordable Care Act.

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 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. 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 Six Months Ended September 30, 2015 and September 30, 2016
Quarter Ended September 30, 2015 September 30, 2016
Revenues 124,460,000 128,219,000
Cost of revenues 97,776,000 102,307,000
Gross profit 26,684,000 25,912,000
General and administrative 13,209,000 14,644,000
Income from operations 13,475,000 11,268,000
Income tax expense 5,208,000 4,316,000
Net income 8,267,000 6,952,000
Earnings Per Share:
Basic$0.42 $0.36
Diluted$0.41 $0.35
Weighted Shares
Basic 19,902,000 19,581,000
Diluted 20,063,000 19,733,000
Six months ended September 30, 2015 September 30, 2016
Revenues 251,399,000 256,678,000
Cost of revenues 198,532,000 205,184,000
Gross profit 52,867,000 51,494,000
General and administrative 28,171,000 28,105,000
Income from operations 24,696,000 23,389,000
Income tax expense 9,529,000 8,946,000
Net income 15,167,000 14,443,000
Earnings Per Share:
Basic$0.76 $0.74
Diluted$0.75 $0.73
Weighted Shares
Basic 20,026,000 19,577,000
Diluted 20,199,000 19,743,000
CorVel Corporation
Quarterly Results - Condensed Balance Sheet
March 31, 2016 (audited) and September 30, 2016 (unaudited)
March 31, 2016 September 30, 2016
Cash 32,779,000 40,862,000
Customer deposits 25,649,000 31,189,000
Accounts receivable, net 59,747,000 60,445,000
Prepaid expenses and taxes 4,933,000 6,201,000
Property, net 53,268,000 57,386,000
Goodwill and other assets 43,893,000 44,155,000
Total 220,269,000 240,238,000
Accounts and taxes payable 13,233,000 16,172,000
Accrued liabilities 67,182,000 70,439,000
Deferred tax liability 7,906,000 7,479,000
Paid in capital 130,468,000 134,424,000
Treasury stock -391,803,000 -396,002,000
Retained earnings 393,283,000 407,726,000
Total 220,269,000 240,238,000

Contact: Heather H. Burnham Phone: 949-851-1473

Source:CorVel Corporation