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Exhibit 99.1
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Date: November 3, 2020 |
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CorVel Corporation |
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1920 Main Street |
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Suite 900 |
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Irvine, CA 92614 |
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FOR IMMEDIATE RELEASE |
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Contact: Melissa Storan |
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Phone: 949-851-1473 |
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http://www.corvel.com |
CorVel Announces Revenues and Earnings
IRVINE, California, November 3, 2020— 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.
Quarterly Results – Income Statement
Quarters and Six Months Ended September 30, 2020 (unaudited) and September 30, 2019 (unaudited)
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Quarter Ended |
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September 30, 2020 |
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September 30, 2019 |
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Revenues |
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$ |
136,028,000 |
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$ |
146,970,000 |
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Cost of revenues |
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105,525,000 |
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114,127,000 |
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Gross profit |
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30,503,000 |
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32,843,000 |
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General and administrative |
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15,560,000 |
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16,593,000 |
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Income from operations |
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14,943,000 |
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16,250,000 |
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Income tax provision |
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3,078,000 |
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3,379,000 |
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Net income |
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$ |
11,865,000 |
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$ |
12,871,000 |
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Earnings Per Share: |
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Basic |
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$ |
0.66 |
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$ |
0.70 |
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Diluted |
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$ |
0.65 |
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$ |
0.69 |
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Weighted Shares |
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Basic |
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17,937,000 |
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18,452,000 |
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Diluted |
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18,174,000 |
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18,771,000 |
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Six Months Ended |
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September 30, 2020 |
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September 30, 2019 |
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Revenues |
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$ |
265,628,000 |
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$ |
297,109,000 |
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Cost of revenues |
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208,616,000 |
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231,132,000 |
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Gross profit |
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57,012,000 |
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65,977,000 |
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General and administrative |
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31,145,000 |
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32,345,000 |
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Income from operations |
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25,867,000 |
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33,632,000 |
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Income tax provision |
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5,700,000 |
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7,354,000 |
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Net income |
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$ |
20,167,000 |
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$ |
26,278,000 |
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Earnings Per Share: |
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Basic |
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$ |
1.12 |
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$ |
1.42 |
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Diluted |
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$ |
1.11 |
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$ |
1.40 |
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Weighted Shares |
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Basic |
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17,960,000 |
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18,488,000 |
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Diluted |
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18,144,000 |
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18,779,000 |
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Quarterly Results – Condensed Balance Sheet
September 30, 2020 (unaudited) and March 31, 2020 (audited)
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September 30, 2020 |
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March 31, 2020 |
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Cash |
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$ |
106,082,000 |
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$ |
83,223,000 |
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Customer deposits |
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52,570,000 |
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48,991,000 |
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Accounts receivable, net |
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73,095,000 |
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65,767,000 |
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Prepaid taxes and expenses |
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10,561,000 |
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11,010,000 |
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Property, net |
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71,980,000 |
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75,900,000 |
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Goodwill and other assets |
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39,792,000 |
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40,703,000 |
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Right-of-use asset, net |
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87,500,000 |
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90,666,000 |
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Total |
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$ |
441,580,000 |
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$ |
416,260,000 |
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Accounts and taxes payable |
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$ |
13,309,000 |
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$ |
16,363,000 |
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Accrued liabilities |
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135,768,000 |
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117,326,000 |
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Deferred tax liability |
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7,205,000 |
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7,764,000 |
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Long-term operating lease liabilities |
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82,898,000 |
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85,096,000 |
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Paid-in capital |
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175,900,000 |
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168,938,000 |
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Treasury stock |
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(546,204,000 |
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(531,764,000 |
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Retained earnings |
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572,704,000 |
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552,537,000 |
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Total |
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$ |
441,580,000 |
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$ |
416,260,000 |
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