Attached files
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| 8-K - 8-K - CORVEL CORP | crvl-8k_20200804.htm |
Exhibit 99.1
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Date: August 4, 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, August 4, 2020— 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 CorVel’s 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 Company’s 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, CareMC EdgeSM with the release of the Insights interface. The enhancement provides risk managers complete visibility into the details of their claims. CorVel’s 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 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 and virtual care services and the Company’s continued investment in these and other innovative technologies, and statements relating to the Company’s 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 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; and the amount and timing of any stock repurchases under the Company’s stock repurchase program, if any, and the Company’s 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 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 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.
Quarterly Results – Income Statement
Quarters Ended June 30, 2020 (unaudited) and June 30, 2019 (unaudited)
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Quarter Ended |
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June 30, 2020 |
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June 30, 2019 |
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Revenues |
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$ |
129,600,000 |
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$ |
150,139,000 |
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Cost of revenues |
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103,091,000 |
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117,005,000 |
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Gross profit |
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26,509,000 |
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33,134,000 |
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General and administrative |
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15,585,000 |
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15,752,000 |
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Income from operations |
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10,924,000 |
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17,382,000 |
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Income tax provision |
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2,622,000 |
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3,975,000 |
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Net income |
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$ |
8,302,000 |
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$ |
13,407,000 |
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Earnings Per Share: |
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Basic |
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$ |
0.46 |
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$ |
0.72 |
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Diluted |
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$ |
0.46 |
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$ |
0.71 |
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Weighted Shares |
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Basic |
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17,983,000 |
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18,524,000 |
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Diluted |
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18,114,000 |
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18,787,000 |
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Quarterly Results – Condensed Balance Sheet
June 30, 2020 (unaudited) and March 31, 2020 (audited)
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June 30, 2020 |
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March 31, 2020 |
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Cash |
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$ |
94,111,000 |
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$ |
83,223,000 |
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Customer deposits |
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52,689,000 |
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48,991,000 |
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Accounts receivable, net |
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67,469,000 |
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65,767,000 |
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Prepaid taxes and expenses |
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10,167,000 |
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11,010,000 |
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Property, net |
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74,360,000 |
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75,900,000 |
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Goodwill and other assets |
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39,963,000 |
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40,703,000 |
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Right-of-use asset, net |
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86,250,000 |
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90,666,000 |
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Total |
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$ |
425,009,000 |
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$ |
416,260,000 |
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Accounts and taxes payable |
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$ |
16,618,000 |
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$ |
16,363,000 |
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Accrued liabilities |
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121,917,000 |
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117,326,000 |
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Deferred tax liability |
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7,515,000 |
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7,764,000 |
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Long-term operating lease liabilities |
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80,867,000 |
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85,096,000 |
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Paid-in capital |
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171,415,000 |
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168,938,000 |
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Treasury stock |
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(534,162,000 |
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(531,764,000 |
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Retained earnings |
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560,839,000 |
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552,537,000 |
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Total |
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$ |
425,009,000 |
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$ |
416,260,000 |
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