IRVINE, California /PRNewswire/ — CorVel Corporation (NASDAQ: CRVL) today announced the results for the quarter ended December 31, 2011. Revenues for the quarter ended December 31, 2011 were $101 million, a 6% increase over the $95 million in revenue in the December 2010 quarter. Net income for the quarter was $5.4 million. Earnings per share for the quarter ended December 31, 2011 were $0.47. Earnings per share for the quarter ended December 31, 2010 was $0.56.
Revenues for the nine months ended December 31, 2011 were a record $308 million, a 10% increase over the $280 million in revenue in the nine months ended December 31, 2010. Net income for the nine month period was $21.5 million. Earnings per share for the nine months ended December 31, 2011 was a record $1.84. Earnings per share for the nine months ended December 31, 2010 was $1.82.
Revenue growth in the quarter was largely driven by sustained growth in the Company’s claims management services. The gross margin for the quarter was adversely impacted by a shift in the revenues from higher margin services to lower margin services. The Company continued its strategic investment in mobile computing with significant advances during the quarter, including the release of its Claim Intake App available for both the Apple and Android markets. CorVel’s mobile applications are designed to reduce time delays in the claims process in order to reduce the cost of risk for clients.
Expanded Share Buyback Program
The Company’s Board of Directors authorized an increase in the number of shares to be repurchased by one million shares, from 15 million shares to 16 million shares. The Company began repurchasing its shares in 1996. Since the inception date, the Company has repurchased 14.8 million shares for $265 million, for an average price of $17.87 per share. These repurchases have been funded primarily from the operating income generated by the Company. Net of shares repurchased, the Company had 11.4 million shares remaining outstanding at December 31, 2011.
The complete earnings release is available here: CorVel Revenues and Earnings