CorVel Announces June Quarter Results

IRVINE, Calif., Aug. 5 /PRNewswire-FirstCall/ -- CorVel Corporation
(Nasdaq: CRVL) reported earnings per share of $0.40 on revenues of $78.2
million for the quarter ending June 30, 2008. Earnings per share grew 3% over
the June quarter of 2007, while revenues grew 5% when compared to the same
period.
June quarter results benefited from continued growth across product lines.
Network Solutions results reflected continued improvement in customer savings
and unit volume growth. Results for Patient Management services continued to
show improvement reflective of increased operating efficiencies.
The Enterprise Comp(R) line of full service solutions in workers'
compensation continued to be well received in the market. This business group
has been expanding its management team, integrating systems and continuing the
effort CorVel has made to develop unique workflow tools for the management of
workers' compensation claims.
Traditional business growth and the strategic expansion of the Enterprise
Comp line, combined with investments in the Company's systems infrastructure,
have caused expansions in expenses. These efforts continue CorVel's
long-standing strategy of investment in systems and communications
technologies that are important to the Company's long term strategies.
Although this has raised expenses in recent quarters, the Company expects to
realize long term benefits in the form of stability and security of
information systems.
About CorVel
CorVel Corporation (http://www.corvel.com/) is a national provider of
leading-edge services and solutions in the field of disability management.
CorVel specializes in applying information technology and e-commerce
applications to improve healthcare management in the workers' compensation,
group health, and auto and disability management insurance markets. The
Company provides networks of preferred providers, claims administration, case
management, utilization management, and medical bill review to more than 2,000
clients nationwide. Leveraging its commitment to flexibility and personal
service, CorVel delivers custom solutions for employers, insurers, third party
administrators and government entities.
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 financial statements
and business. 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 "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended March 31, 2008. 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 (Unaudited)
First Quarter Ended June 30, 2007 and 2008

Quarter Ended Quarter Ended
June 30, 2007 June 30, 2008
Revenues 74,337,000 78,201,000
Cost of revenues 56,156,000 58,268,000
Gross profit 18,181,000 19,933,000

General and administrative 9,077,000 10,807,000
Income from operations 9,104,000 9,126,000

Income tax expense 3,543,000 3,559,000
Net income 5,561,000 5,567,000

Earnings Per Share:
Basic $0.40 $0.40
Diluted $0.39 $0.40

Weighted Shares
Basic 13,964,000 13,816,000
Diluted 14,159,000 14,045,000

CorVel Corporation
Quarterly Results -- Condensed Balance Sheet (Unaudited)
March 31, 2008 and June 30, 2008

March 31, 2008 June 30, 2008
Cash 17,911,000 21,760,000
Accounts receivable, net 39,164,000 39,732,000
Prepaid expenses and taxes 5,242,000 5,896,000
Deferred income taxes 4,076,000 3,971,000
Property, net 30,569,000 30,368,000
Goodwill and other assets 43,613,000 43,990,000
Total 140,575,000 145,717,000

Accounts and taxes payable 20,475,000 22,266,000
Accrued liabilities 16,473,000 16,030,000
Deferred tax liability 7,249,000 7,026,000
Paid in capital 80,222,000 82,378,000
Treasury stock -162,302,000 -166,008,000
Retained earnings 178,458,000 184,025,000
Total 140,575,000 145,717,000

SOURCE CorVel Corporation

Heather Burnham of CorVel Corporation, +1-949-851-1473