8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): November 8, 2006

CorVel Corporation

(Exact Name of Registrant as Specified in Its Charter)

Delaware	000-19291	33-0282651
(State or Other Jurisdiction	(Commission File Number)	(IRS Employer
of Incorporation)		Identification No.)
2010 Main Street, Suite 600, Irvine, California		92614
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (949) 851-1473

Not Applicable
(Former Name or Former Address, if Changed since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition.
	Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.
SIGNATURE
Index to Exhibits
Exhibit 99.1

Item 2.02 Results of Operations and Financial Condition.

      On November 8, 2006, CorVel Corporation issued a press release announcing its financial results for the three and six months ended September 30, 2006. A copy of the press release is furnished herewith as Exhibit No. 99.1.

      The information contained in this report and in the exhibit attached to this report is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.

      (c) Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release, dated November 8, 2006 announcing CorVel Corporation’s financial results for the three and six months ended September 30, 2006 (furnished herewith but not filed pursuant to Item 12).

2

SIGNATURE

      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CORVEL CORPORATION,
	a Delaware corporation
	(Registrant)
Date: November 8, 2006	By:	/s/ V. Gordon Clemons
		Name:	V. Gordon Clemons
		Title:	Chairman of the Board,
			Chief Executive Officer

3

Index to Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release, dated November 8, 2006 announcing CorVel Corporation’s preliminary financial results for the three and six months ended September 30, 2006 (furnished herewith but not filed pursuant to Item 12).

EX-99.1

Exhibit 99.1

NEWS RELEASE

Date: November 8, 2006	CorVel Corporation
	2010 Main Street
	Suite 600
	Irvine, CA 92614
FOR IMMEDIATE RELEASE	Contact: Heather Burnham
	Phone: 949-851-1473
	http://www.corvel.com

CorVel Announces Revenues and Earnings

IRVINE, California, November 8, 2006 — CorVel Corporation (NASDAQ: CRVL) reported earnings per share of $0.51 for the quarter ended September 30, 2006, up 131% from per share earnings of $0.22 for the same quarter of the prior year. September quarter revenues were $67 million, comparable to revenues in the September quarter of 2005. Results in the quarter reflect ongoing strengthening of CorVel’s Network Solutions as well as productivity gains in Patient Management services. Cost reductions also contributed to margins improvements versus the same quarter of the prior year.

September quarter results benefited from ongoing investments in Network Solutions. Savings outcomes for customers have been improving throughout the last couple of years. Individual states have been actively modifying workers’ compensation medical review regulations. The Company believes its MedCheck software and systems have the flexibility to meet such changing market needs. CorVel plans further expansions of the development efforts supporting these and other evolving medical review trends. Improved outcomes have also been important in new sales of medical review services.

During the quarter the Company implemented a new version of MedCheck software to facilitate the scheduling of patient visits to directed care network provider facilities and integrate and expand utilization management. Sales of specialty review and reimbursement services improved in the quarter. Extending the scope of traditional medical review is a part of the Company’s plan to leverage its technology advantages in the workers’ compensation market.

Since the beginning of the September quarter, to date the Company has repurchased 200,000 shares of the one million shares its Board previously approved. Cash balances remained over $20 million dollars at the end of the September quarter. Since the inception of its share buyback program the Company has repurchased 7.3 million common shares and currently has 9.4 million shares outstanding net of all prior repurchases. Cash flow in the quarter reflected a combination of improving earnings and improved efficiency in its capital investments.

About CorVel

CorVel Corporation (http://www.corvel.com) is a national provider of leading-edge services and solutions in the field of healthcare management. CorVel specializes in applying information technology and e-commerce applications to improve healthcare management in the workers’ compensation, group health, auto and disability management insurance markets. The Company provides networks of preferred providers, case management, utilization management, independent medical evaluations and medical bill review to 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 report, 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. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “likely,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. Such forward-looking statements include, but are not limited to, statements relating to the Company’s products, services, and systems development expansion. 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 report 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, 2006. The forward-looking statements in this report 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
Income Statement — Unaudited
Three months ended September 30, 2005 and 2006

	Three months ended September 30,
	2005		2006
Revenues	$	66,343,000	$	67,329,000
Cost of revenues		55,470,000		50,933,000
Gross profit		10,873,000		16,396,000
General and administrative expenses		7,280,000		8,489,000
Income before income taxes		3,593,000		7,907,000
Income tax provision		1,382,000		3,084,000
Net Income	$	2,211,000	$	4,823,000
Net income per share
Basic	$	.22	$	.51
Diluted	$	.22	$	.51
Weighted average shares outstanding
Basic		9,858,000		9,415,000
Diluted		9,911,000		9,486,000

CorVel Corporation
Income Statement — Unaudited
Six months ended September 30, 2005 and 2006

	Six months ended September 30,
	2005		2006
Revenues	$	137,010,000	$	137,091,000
Cost of revenues		114,133,000		104,368,000
Gross profit		22,877,000		32,723,000
General and administrative expenses		14,714,000		17,209,000
Income before income taxes		8,163,000		15,514,000
Income tax provision		3,142,000		6,051,000
Net Income	$	5,021,000	$	9,463,000
Net income per share
Basic	$	.51	$	1.00
Diluted	$	.50	$	1.00
Weighted average shares outstanding
Basic		9,909,000		9,416,000
Diluted		9,965,000		9,466,000

CorVel Balance Sheet
Summary Balance Sheet Information
As of March 31, 2006 (audited) and September 30, 2006 (unaudited)

	March 31, 2006			Sept. 30, 2006
Assets
Cash and cash equivalents	$	14,206,000		$	21,988,000
Accounts receivable, net		39,521,000			40,027,000
Prepaid taxes and expenses		2,221,000			2,316,000
Deferred income taxes		4,521,000			5,041,000
Property and equipment, net		26,459,000			24,250,000
Goodwill and other assets		13,170,000			13,148,000
TOTAL ASSETS	$	100,098,000		$	106,770,000
Liabilities and Stockholders’ Equity
Accounts payable	$	13,712,000		$	14,581,000
Accrued liabilities		12,160,000			11,985,000
Deferred income taxes		6,190,000			5,551,000
Common stock and paid-in-capital		61,086,000			63,651,000
Treasury stock		(132,205,000	)		(137,616,000	)
Retained earnings		139,155,000			148,618,000
TOTAL LIABILITIES AND EQUITY	$	100,098,000		$	106,770,000