Irvine, CA – CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended June 30, 2019. Earnings per share for the quarter ended June 30, 2019 were $0.71, an increase of 15% from earnings per share of $0.62 in the same quarter of the prior year. Revenues for the quarter ended June 30, 2019 were $150.1 million, a decrease of 0.2% from revenues of $150.4 million in the same quarter of the prior year.
The Company continues the development of its prospective claims management platform, CareMC EdgeSM, with new functionality deployed each quarter. The goal of the platform is to increase communication and collaboration among all stakeholders of a claim. During the quarter, enhancements were completed to facilitate robust routing and communication between Adjusters and the Pharmacy Benefit Management team, which allows for enhanced pharmacy eligibility and prescription prior authorizations to improve clinical outcomes. Integration of our bill review platform and CareMC EdgeSM, also progressed with a new comprehensive dashboard delivered to enhance inventory management and quality control.
Product development for the quarter also included improvements to the Company’s integrated claim intake model. During the quarter, telehealth integration was completed to simplify the interfaces utilized by our intake team when commencing initial care. Our investments in integration provides injured workers with a higher quality of care at the onset of the claim, while simultaneously reducing the total cost of the program for employers.
After the end of the quarter, the Company discovered a security incident which impacted online systems and forced the Company to take those affected systems offline for a period of time. The Company discovered the threat in the early stages of the security incident which allowed for immediate initiation of their incident response plan and aided in the containment and eradication of the threat.
Systems were largely offline for the week of July 22nd and at the time of this release the Company’s systems are incrementally coming back online. The Company rapidly addressed all associated issues, and ensured the trust and confidence of their customers was maintained through consistent communications about remediation efforts.
While we anticipate that any such costs and delays would likely be incurred during our September quarter and would primarily impact the short and intermediate term, there can be no assurance of the ultimate impact of this attack on our business, results of the operations or financial condition. However, we do not believe, at this time, that this incident will have a long-term material adverse impact on our business, results of operations or financial condition. “Our mettle has been tested, and I am happy to report that the CorVel team has risen to the occasion,” said Michael Combs, CorVel’s President and Chief Executive Officer.
The complete results release is available here: CorVel Q2 2019 Revenues and Earnings