GlobeNewswire Inc | Nov 3, 2020 06:15AM EST

November 03, 2020

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, CorVels 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 Companys 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 CorVels 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 organizations 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 Companys current expectations, estimates and projections about the Company, managements beliefs, and certain assumptions made by the Company, and events beyond the Companys control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to the Companys telehealth services and the Companys continued investment in these and other innovative technologies, and statements relating to the Companys 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 Companys 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 Companys filings with the Securities and Exchange Commission, including but not limited to Risk Factors in the Companys Annual Report on Form 10-K for the year ended March 31, 2020 and the Companys 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 CorporationQuarterly Results Income StatementQuarters and Six Months Ended September 30, 2020 (unaudited) and September 30, 2019 (unaudited)

Quarter Ended September30, 2020 September30, 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 September30, 2020 September30, 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 CorporationQuarterly Results Condensed Balance SheetSeptember 30, 2020 (unaudited) and March 31, 2020 (audited)

September30, March31, 2020 2020Cash $ 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 82,898,000 85,096,000 liabilitiesPaid-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 StoranPhone: 949-851-1473 http://www.corvel.com