CorVel Announces Revenues and Earnings

IRVINE, Calif., Nov. 03, 2020 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced its results for the quarter ended September 30, 2020. Earnings per share for the quarter ended September 30, 2020 were 65 cents. Revenues for the period were $136 million. Earnings per share for the six months ended September 30, 2020 were $1.11 and revenues for the six months ended September 30, 2020 were $266 million.

While global economic uncertainty remains, CorVel’s business fundamentals are sound and performed well during the quarter. In conjunction with robust year-to-date sales of new business, adjustments made to operational parameters in response to the pandemic contributed to strong cash flows.

The pandemic has accelerated adoption of new technology and driven the Company’s digital strategy forward. CorVel was the first third-party administrator (TPA) to introduce a patient advocacy model coupled with telehealth more than five years ago. Over these last six months, CorVel has seen an exponential increase in telehealth usage, with a corresponding improvement in results achieved.

The broader healthcare market continues to be important to CorVel’s overall results and future plans. While the healthcare market has experienced consolidation and a move towards internalizing payment integrity functions, CERiS has forged several additional long-term partnerships covering one-third of the covered lives in the U.S. These strategic alliances improve healthcare payment operations through innovative technology and generate cost savings by identifying and reducing inappropriate spending.

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 telehealth services and the Company’s continued investment in these and other innovative technologies, and statements relating to the Company’s strategic alliances within the healthcare market. 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, including the risk that the impact of the COVID-19 pandemic on our business, results of operations and financial condition is greater than our initial assessment.

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, 2020 and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. 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, 2020 (unaudited) and September 30, 2019 (unaudited)

Quarter Ended		September 30, 2020				September 30, 2019
Revenues		$	136,028,000			$	146,970,000
Cost of revenues			105,525,000				114,127,000
Gross profit			30,503,000				32,843,000
General and administrative			15,560,000				16,593,000
Income from operations			14,943,000				16,250,000
Income tax provision			3,078,000				3,379,000
Net income		$	11,865,000			$	12,871,000
Earnings Per Share:
Basic		$	0.66			$	0.70
Diluted		$	0.65			$	0.69
Weighted Shares
Basic			17,937,000				18,452,000
Diluted			18,174,000				18,771,000

Six Months Ended		September 30, 2020				September 30, 2019
Revenues		$	265,628,000			$	297,109,000
Cost of revenues			208,616,000				231,132,000
Gross profit			57,012,000				65,977,000
General and administrative			31,145,000				32,345,000
Income from operations			25,867,000				33,632,000
Income tax provision			5,700,000				7,354,000
Net income		$	20,167,000			$	26,278,000
Earnings Per Share:
Basic		$	1.12			$	1.42
Diluted		$	1.11			$	1.40
Weighted Shares
Basic			17,960,000				18,488,000
Diluted			18,144,000				18,779,000

CorVel Corporation
Quarterly Results – Condensed Balance Sheet
September 30, 2020 (unaudited) and March 31, 2020 (audited)

		September 30, 2020				March 31, 2020
Cash		$	106,082,000			$	83,223,000
Customer deposits			52,570,000				48,991,000
Accounts receivable, net			73,095,000				65,767,000
Prepaid taxes and expenses			10,561,000				11,010,000
Property, net			71,980,000				75,900,000
Goodwill and other assets			39,792,000				40,703,000
Right-of-use asset, net			87,500,000				90,666,000
Total		$	441,580,000			$	416,260,000
Accounts and taxes payable		$	13,309,000			$	16,363,000
Accrued liabilities			135,768,000				117,326,000
Deferred tax liability			7,205,000				7,764,000
Long-term operating lease liabilities			82,898,000				85,096,000
Paid-in capital			175,900,000				168,938,000
Treasury stock			(546,204,000	)			(531,764,000	)
Retained earnings			572,704,000				552,537,000
Total		$	441,580,000			$	416,260,000

 

Contact: Melissa Storan

Phone: [phone]

http://www.corvel.com