GlobeNewswire Inc | Aug 4, 2020 06:15AM EDT

August 04, 2020

IRVINE, Calif., Aug. 04, 2020 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended June 30, 2020. Earnings per share for the quarter ended June 30, 2020 were 46 cents. Revenues for the period were $129.6 million. As much of CorVels business is tied to the volume of healthcare spending, the June quarter results reflect the reduction of elective surgeries and general physician care due to the pandemic. While business remains dynamic, transaction volumes increased incrementally each month. The quarter-ending cash balance was $94 million, an increase of $11 million from the end of the prior quarter.

As the Company navigated COVID-19, delivering and expanding virtual care solutions experienced accelerated milestones in the June quarter. The Companys ongoing investments in technology allowed CorVel to quickly respond to the market needs by scaling telehealth physician capabilities as well as expanding tele-rehab, mail-order prescriptions, and home delivery of durable medical equipment.

During the quarter, the Company continued development of its integrated claims management platform, CareMCEdgeSM with the release of the Insights interface. The enhancement provides risk managers complete visibility into the details of their claims. CorVels use of machine learning technology is expanding as investments in emerging technologies increases. The work with artificial intelligence, machine learning, and natural language processing is expected to improve outcomes, quality and consistency.

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 and virtual care services and the Companys continued investment in these and other innovative technologies, and statements relating to the Companys stock repurchase program and the timing of entering into a Rule 10b5-1 stock trading plan. 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; and the amount and timing of any stock repurchases under the Companys stock repurchase program, if any, and the Companys ability to repurchase shares of its common stock and how those repurchased shares may be used.

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 quarters ended June 30, 2019, September 30, 2019, and December 31, 2019. 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 Ended June 30, 2020 (unaudited) and June 30, 2019 (unaudited)

Quarter Ended June30, 2020 June30, 2019Revenues $ 129,600,000 $ 150,139,000Cost of revenues 103,091,000 117,005,000Gross profit 26,509,000 33,134,000General and administrative 15,585,000 15,752,000Income from operations 10,924,000 17,382,000Income tax provision 2,622,000 3,975,000Net income $ 8,302,000 $ 13,407,000Earnings Per Share: Basic $ 0.46 $ 0.72Diluted $ 0.46 $ 0.71Weighted Shares Basic 17,983,000 18,524,000Diluted 18,114,000 18,787,000

CorVel CorporationQuarterly Results Condensed Balance SheetJune 30, 2020 (unaudited) and March 31, 2020 (audited)

June30, 2020 March31, 2020 Cash $ 94,111,000 $ 83,223,000 Customer deposits 52,689,000 48,991,000 Accounts receivable, net 67,469,000 65,767,000 Prepaid taxes and expenses 10,167,000 11,010,000 Property, net 74,360,000 75,900,000 Goodwill and other assets 39,963,000 40,703,000 Right-of-use asset, net 86,250,000 90,666,000 Total $ 425,009,000 $ 416,260,000 Accounts and taxes payable $ 16,618,000 $ 16,363,000 Accrued liabilities 121,917,000 117,326,000 Deferred tax liability 7,515,000 7,764,000 Long-term operating lease liabilities 80,867,000 85,096,000 Paid-in capital 171,415,000 168,938,000 Treasury stock (534,162,000 ) (531,764,000 )Retained earnings 560,839,000 552,537,000 Total $ 425,009,000 $ 416,260,000

Contact: Melissa StoranPhone: 949-851-1473 http://www.corvel.com