CORVEL ANNOUNCES RECORD QUARTERLY RESULTS
CORVEL ANNOUNCES RECORD QUARTERLY RESULTS IRVINE, Calif., Oct. 20 /PRNewswire/ -- CorVel Corp.
(NASDAQ-NMS: CRVL) reported record revenues of $14.8 million for its second fiscal quarter ended Sept. 30, up 30 percent from $11.4 million in the same quarter of the prior year. Net income for the quarter was a record $611,000, or $.15 per share, an increase of 60 percent from the net income of $383,000, or $.09 per share, in the same quarter of the prior year. The company attributes the growth to strong employer interest in controlling workers' compensation expenses, which has resulted in increased demand for its medical cost containment and managed care services.
Revenues for the six-month period ended Sept. 30 were $28.6 million, up 32 percent from $21.6 million in the prior year. Net income was $1,118,000, up 56 percent from $717,000 for the same period in the prior year. During the quarter, the company changed its name from FORTIS Corp. to CorVel Corp. and recognized a net non-operating gain of $3.0 million from the sale of its rights in the FORTIS name. The company's gain is net of the cost of a new identity program and associated supplies, signage and marketing communications to support the new name. The company has provided for a restructuring charge to allow for a reconfiguration of its managed care services and related computer hardware and software, which has substantially absorbed the benefits of this non-recurring
gain. "By adding rapidly to our line of services, CorVel is positioning itself as a leader in managed care," said Gordon Clemons, president. "We have chosen to upgrade our systems and to substantially accelerate our investment in medical management services and the underlying information processing systems."
During the quarter, the company announced the launch of its Advocacy line of patient management services, extended its preferred provider networks and added in-patient reimbursement review to its line of MedCheck medical review services. "These expansions reflect the increased pace of investment in our line of integrated managed care programs," said Clemons. "Our industry is in its infancy; the pace of service evolution is fueled by both industry growth and the exciting breakthroughs being made in information processing technologies." CorVel Corp. is an independent nationwide provider of medical cost containment and managed care services designed to address the rapidly escalating costs of workers' compensation. The company operates from more than 90 offices providing services in 42 states. CORVEL CORP. Quarterly Income Statement Three and Six Months Ended Sept. 30, 1992 Three months ended Sept. 30, 1992 Sept. 30, 1991 Revenue $14,767,000 $11,377,000 Costs and expenses 13,765,000 10,738,000 Income from operations 1,002,000 639,000 Other: Net gain from sale of name 3,000,000 --- Managed care reconfiguration charge (3,000,000) --- Income before income taxes 1,002,000 639,000 Income tax expense 391,000 256,000 Net income $611,000 $383,000 Earnings per common and common equivalent share $.15 $.09 Weighted average common and common equivalent shares 4,075,000 4,071,000 Six Months Ended Sept. 30, 1992 Sept. 30, 1991 Revenue $28,621,000 $21,632,000 Costs and expenses 26,781,000 20,436,000 Income from operations 1,840,000 1,196,000 Other: Net gain from sale of name 3,000,000 --- Managed care reconfiguration change (3,000,000) --- Income before income taxes 1,840,000 1,196,000 Income tax expense 722,000 479,000 Net income $1,118,000 $717,000 Earnings per common and common equivalent share $.27 $.21 Weighted average common and common equivalent shares 4,093,000 3,383,000 The net gain of $3.0 million was generated from the sale of the company's former name, FORTIS. The managed care charge of $3.0 million was to provide for a reconfiguration of its managed care services and related computer hardware and software. -0- 10/20/92 /CONTACT: Gordon Clemons, president of CorVel, 714-851-1473/ (CRVL) CO: CorVel Corp. ST: California IN: HEA SU: ERN
KJ-EH -- LA033 -- 2386 10/20/92 14:17 EDT
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|Date:||Oct 20, 1992|
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