CorVel second quarter EPS increases 24% to $0.62

CorVel Corporation (Nasdaq: CRVL) reported earnings per share of $0.62 for the quarter ended September 30, 2010, a 24% increase compared to $0.50 in the same quarter of the prior fiscal year.  Earnings per share for the six months ended September 30, 2010 were $1.26, a 27% increase over the $0.99 earnings per share for the six months ended September 30, 2009.  The Company reported quarterly revenues of $93.4 million, a 13% increase compared to $82.4 million in the same quarter of the prior fiscal year.   Revenues for the six months ended September 30, 2010 were $184.9 million, a 13% increase over the $163.7 million for the six months ended September 30, 2009.  

The results for the quarter and year to date are inclusive of two significant non-recurring items.  In the September quarter, the Company recognized a charge of $2.8 million, before income tax, for the cost of a settlement agreement on a previously disclosed class action lawsuit.  This settlement resulted in a decrease in earnings per share of $0.14. Additionally, for the quarter, the Company's effective income tax rate was lower than in the prior fiscal quarter due to resolution of certain previously outstanding tax issues.  This resulted in an increase in earnings per share of $0.14.  

The revenue growth for the current quarter was driven by a 23% increase in the Company's Patient Management service line and 6% growth in its Network Solutions product line.  The Patient Management service line includes traditional case management services and claims management.  Claims management growth included additional new customers and the improved delivery of CorVel's total suite of services through its Enterprise Comp product.  Over the past year, the Company has increased its information technology resourcing in order to advance the pace of delivery of new features for clients.  CorVel seeks to improve claims outcomes through such investments in technology projects which will incorporate artificial intelligence to improve the Company's managed workflow environment.