IRVINE, Calif., May 29, 2014 /PRNewswire/ -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter and fiscal year ended March 31, 2014. Revenues for the quarter ended March 31, 2014 were $120 million, a 7% increase over the $112 million in revenue in the quarter ended March 31, 2013. Earnings per share for the quarter ended March 31, 2014 were $0.39, a 13% increase over earnings per share of $0.35 for the same quarter of the prior year.
Revenues for the fiscal year ended March 31, 2014 were a record $479 million, a 12% increase over the $429 million in revenue in the prior year. Earnings per share for the fiscal year ended March 31, 2014 were a record $1.61, a 35% increase over earnings per share of $1.19 for the prior year. The Company's earnings per share grew more than revenue as the gross profit margin improved and the general and administrative costs declined as a percentage of revenue. Diluted weighted shares decreased 5% due to continued share repurchases.
Revenue growth for the quarter was driven by a 9% increase in the Company's Patient Management service line and a 6% increase in its Network Solutions service line. Patient Management services include traditional medical case management and claims administration services. Revenue from claims administration services has grown at a rate in excess of 20% for each of the past seven years.
The Company continues to invest in information technology, including the ongoing development of its claims management platform. CorVel's biggest differentiator is the integration of all of its services, including the Company's managed care services, in a real time environment. Functioning in a real time environment allows the Company to improve claims intake workflows, including mobile computing, and expand analytic tools such as clinical and predictive modeling. During the quarter, the Company was recognized by Business Insurance magazine as a recipient in its 2014 Innovation Awards Program. The Business Insurance Innovation Awards recognize leadership and innovation for risk management programs that focus on new technology, new products and services, and other advancements in the insurance industry. CorVel was selected for their caremc.com claims system's clinical modeling module.
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 results of operations, including product investment strategies, bill review and claims management services. 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.
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, 2013 and the Company's Quarterly Report on Form 10Q for the quarters ended June 30, 2013, September 30, 2013 and December 31, 2013. 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 Fiscal Year Ended March 31, 2013 and March 31, 2014 | ||
Quarter Ended | March 31, 2013 | March 31, 2014 |
Revenues | 111,959,000 | 120,246,000 |
Cost of revenues | 88,050,000 | 93,709,000 |
Gross profit | 23,909,000 | 26,537,000 |
General and administrative | 11,899,000 | 13,704,000 |
Income from operations | 12,010,000 | 12,833,000 |
Income tax expense | 4,430,000 | 4,500,000 |
Net income | 7,580,000 | 8,333,000 |
Earnings Per Share: | ||
Basic | $0.35 | $0.40 |
Diluted | $0.35 | $0.39 |
Weighted Shares | ||
Basic | 21,620,000 | 20,945,000 |
Diluted | 21,804,000 | 21,270,000 |
Fiscal Year | Fiscal Year | |
Fiscal Year Ended | March 31, 2013 | March 31, 2014 |
Revenues | 429,310,000 | 478,816,000 |
Cost of revenues | 337,650,000 | 370,335,000 |
Gross profit | 91,660,000 | 108,481,000 |
General and administrative | 47,765,000 | 51,974,000 |
Income from operations | 43,895,000 | 56,507,000 |
Income tax expense | 17,165,000 | 22,115,000 |
Net income | 26,730,000 | 34,392,000 |
Earnings Per Share: | ||
Basic | $1.20 | $1.63 |
Diluted | $1.19 | $1.61 |
Weighted Shares | ||
Basic | 22,256,000 | 21,104,000 |
Diluted | 22,458,000 | 21,372,000 |
CorVel Corporation | ||
Quarterly Results - Condensed Balance Sheet | ||
March 31, 2013 and March 31, 2014 | ||
March 31, 2013 | March 31, 2014 | |
Cash | 19,822,000 | 34,866,000 |
Customer deposits | 10,107,000 | 16,142,000 |
Accounts receivable, net | 49,105,000 | 57,229,000 |
Prepaid expenses and taxes | 7,418,000 | 5,862,000 |
Deferred income taxes | 6,448,000 | 6,861,000 |
Property, net | 46,584,000 | 51,253,000 |
Goodwill and other assets | 42,898,000 | 42,268,000 |
Total | 182,382,000 | 214,481,000 |
Accounts and taxes payable | 13,587,000 | 18,465,000 |
Accrued liabilities | 39,168,000 | 53,374,000 |
Deferred tax liability | 18,225,000 | 16,119,000 |
Paid in capital | 110,927,000 | 118,834,000 |
Treasury stock | -301,301,000 | -328,479,000 |
Retained earnings | 301,776,000 | 336,168,000 |
Total | 182,382,000 | 214,481,000 |
SOURCE CorVel Corporation
